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tv   Worldwide Exchange  CNBC  October 30, 2015 5:00am-6:01am EDT

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>> good friday to you. welcome to worldwide exchange. >> here are your headlines from around the world. >> let's check in on the markets because halloween fails to spook stock with the u.s. markets set to boost the best month in four years and erase all of their losses. >> a big beat for bnp. they top third quarter exp expectatio expectations. >> starbucks wakes up and smells the coffee as shares sink in after hours on light fourth
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quarter guidance. >> and default averted. the senate passes the budget bill to boost spending levels for the next two years. >> we had a major indices falling for a second straight session taking a look at the implied open. the fair value is telling us we'll be higher by 7 points. the dow jones industrials looking at gains of 57. the nasdaq seeing an advance of 17 points and that's above fair value right now. let's show you the month that it's been in october as we head into halloween tonight. actually tomorrow depending on when you party. but you'll be partying both days. >> just friday night for me. doing it a day early. >> okay. >> so the month of october has been very good for stocks. we're on track for the best month we've seen since 2011.
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we're looking at gains of 8% for the month. now as for the dow jones industrials if you can flip the board i want to show you the advance as well. also very good month in october. we're looking at five straight weeks of gains mind you and this is a pretty good long winning streak for wall street markets. also the nasdaq which has seen the most stellar amount of gains in october. the nasdaq is up some 9%. close to 10%. >> and this comes off the back of a very very poor third quarter so a large amount of this months performance is about aspect. let's look to europe to see if the same is true. it's largely true for continental europe and the ftse 100 but not to quite such a pronounced fashion as you can see up 5.5%. still a good performance. if we turn to germany it's
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better than the u.s. indices, up 12.2% because it had a strong rally for the first half of the month but it was boosted nicely toward the end of the month by that dovish tone over a week ago. that's the leg up you can see there toward the end of the month. turning in 12.2% for germany but this comes off a particularly poor third quarter and in september the dax was weighed by the autos in the face of the volkswagen scandal. now let's also look at oil because of all the risk assets it's the weakest performer for a month as a whole ending in positive territory. but oil, unlike global indices for equities didn't manage to hold on to those gains and as we know oil has slipped during the second half of the month so finishing brent about 48.5 basically speaking flat for the
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month. >> we got headlines coming through involving valiant. the stock was punished because of the relationship with the specialty pharmaceutical company called philidor. a lot of pharmacies have been ending their relationship with them as well. valeant decided to terminate the relationship with philidor. they said it will be taking place. they will shutdown operations as soon as possible which is consistent with the applicati s applications. we had a lot of controversy. this was involved in a citron research report and valeant is going along with the rest of the big pharmaceuticals and ending their relationship. they also took up an option to buy a stake in this specialty
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pharmaceutical. okay. let's turn now to our guest as we are coming off and heading into the best month installed 2011. and it's good to see you today. >> thank you very much. >> as i mention, wall street is on track for their 5th positive weak. best month since 2011. same thing also, pretty strong month in european markets. what does it say to you about the stake of global markets? >> what it says to us is that as always you have a shock in the markets and a sell off this time around. the sell off is larger and particularly they're extremely exposed and overexposed. i would say we're basically back on track for global growth. so as a strategist, one would hope for a stable year. as an investor it's not been very pleasant but europe we like up 12 or 13% and we think that
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if u.s. can keep stable european equities and european high yield is interesting from here. there's probably another leg left in this business cycle and market cycle. >> how much does that view that overweight view on europe rest on the very short-term news that we got out of the ecb? that there's potential for more easing. without the extra easing would you be less positive on europe? >> if we didn't expect any extra easing we would be positive. now maybe we get a little bit less in december but in general we think the central banks are poised to do more. now the fed has even taken the danger out of hiking. so we think we're quite okay. but -- >> well, you say that but then, you know, the market was disappointed that the boj didn't move today. >> that was in the negative surprise. so we had -- luckily ecb is bigger and more important. we have a smaller in japanese
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equities as well. it was a little bit of a disappointment in our house. importantly the progress in japan is there. >> ecb to this point too as well. maybe they won't be expanding their stimulus program. >> well, i think draghi is in the first quarter. >> and just very quickly, so you're risk on at the moment and a favor toward europe. high yield you mentioned. do you prefer high yield bonds to equities? >> no, we have both high yield bonds and equities. we prefer europe over u.s. but we think if you really follow our call, european equities and high yield. if you think the equities are too spicy high yield is less risky. >> thank you for joining us today. a pleasure to have you with us. head of global asset allocation at ubs. >> let's talk about the surprise and the bank of japan slashing their inflation forecast for the next two years pushing back the date of when it's going to hit it's 2% inflation target and maybe back out to 2016. maybe even 2017.
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now earlier on the bank of japan kept it's purchase program consistent at around 80 trillion yen a year we had a call that maybe they were going to expand this program. they're saying the qe transmission mechanism is working as we expected. even though they pushed back to 2%. but they're looking at the household income and spending. industrial production. it means we're not going to see them at least. so that's the silver lining. and if we rewind a month and we're looking ahead to this meeting this week the one i would have thought was more likely to be most dovish was the boj but mario draghi is the one that stepped up to the plate and
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committed to his quantitative easing program much more stro strongly. >> we have an expansion from the boj. the first half of 2017 cycle. >> indeed. we didn't get that clear tone today. still to come here on worldwide exchange, what gives you the creeps? evil clowns, ghosts? or the economy? just hours until the spookiest night of the year. how the holiday has become about much more than just kids and candy. >> eerie, cooky, super spooky. halloween has been a big day on the calendar for kids but in recent years the young at heart have been getting in on the act making the lead up to october 31st part of the growing scare
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conomy. halloween horror night where people pay $15 to get scared out of their witts. >> every year we get bigger and bigger. >> the holiday itself keeps getting bigger and bigger. now worth billions worldwide. in the u.s. alone total halloween spending is expected to reach nearly $7 billion this year according to the national retail federation. much of that cash covers costumes. people in singapore also have no problem about splashing out to dress up. >> i don't mind any cost. probably 100 or 2. >> not too much. maybe $100. >> $200 i guess. >> but costumes are only part of the fun which is why more and more people have been flocking to halloween horror night. >> the local and the regional guests love to come and pay and get scared and spend the night and do everything that you would think you wouldn't want to do
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but they love getting scared. we're three times bigger than the first year and we want to keep giving them more and more new things to scare them and excite them and keep them coming back for more. >> with three scare zones, four haunted houses and nearly 400 scare actors, there's something for everyone. >> i get really scared quite easily so i always love being scared and here is the best place to be scared. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you. want bladder leak underwear that try always discreet underwear and move, groove, wiggle, giggle, swerve, curve.
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welcome back. let's remind you of the headlines. u.s. future point to higher open on track for their best month since october 2011. the u.s. senate passes a two year budget ban and debt limit extension averting a government default and grande profits, starbucks shares lower on disappointing profit guidance for the holidays. >> we're going to dive a little deeper into starbucks results and they have reported earnings of 43 cents a piece which was in line with estimates but guidance was light and shares dropped in after hours. revenue rose to 4.9 billion which was up from $4.1 billion in the comparable period about a year ago. be sure to catch cnbc's
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interview with with the coffee chain. linkedin delivering another outstanding performance in the third quarter lifting it's stock by almost 12% in extended trade. the professional networking site with adjusted earnings of 78 cents a share versus estimates of 46 cents a share. that's called crushing it. later tonight, julia will have an interview with the ceo. >> bnp is posting higher after a 14.5% jump in net income on the third quarter on strength in it's corporate and institutional banking unit. shares are up 3.1%. nancy has more for us from paris. nancy. >> hi, wilfred. that's right. for net income and revenue for the entire group they did beat on forecasts coming roughly in line on revenue if you look at the analyst forecasts but investors like what they see
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here. it's two straight second quarters that the bank has managed to come above forecast. the other good bit of news is them saying they also increase both their capital and leverage ratios. the core tier 1 ratio is going up to 10.7 basis points but that does lag in comparison to european rivals. we have been seeing them scrambling to try to boost the capital ratios trying to get ahead of future regulations but for the moment they simply want to remain agile. if we look at the revenue break down it does fair across the board but it did fair differently if you look at the domestic market. there's still bait of weakness there. particularly in france. revenues off about 3%. that's due to the on going low interest rate environment we have been seeing. but when you look at the corporate institutional banking site there was resilience despite the low interest rates. fixed income trading came in flat with a good performance
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compared to the u.s. rivals we have been seeing but they're in the process of a broad restructuring for the corporate units. i had a chance to speak to the bank's ceo and asked what the restructuring would look like and whether or not reducing costs would have job cuts there. >> it's harsh and we adapted it in 2012. that earned us the right to be the market share. we are at 9.6% and it's basically across divisions. so as you can see, quarter after quarter it's coming in with good results. we want to accelerate this and earlier this year we announced that we did some changes regrouping all the global markets. bringing them within the cib and our people are working from the bottom up. so it's a little bit worried. very happy. but i think that's going to be probably early next year that we
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will be able to do so. >> do you think yob cuts will be part of that. >> we put things together. we're looking at how we can accelerate it. be very happy to team up next year. >> there you have it. the cfo saying more details will come on that restructuring for the cib unit by early next year. job cuts not off the table though we didn't get confirmation at this stage. but the overall takeaway here is recovery in europe is helping to lift every division. we'll have to see whether or not this story holds true for the other bank set to report at the end of next week. >> for more on the story head to our website for analysis of the earnings and outlook from here. that's on cnbc.com. we're going to take a quick break. we're back in two minutes. i say we go all in on the internet of things. what we're recommending as your consultants... the new consultants are here. it's not just big data, its bigger data.
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latest from d.c. good morning to you, tracy. >> hi, good morning. it happened just a few hours ago actually. early this morning lawmakers working overtime. even coming off the campaign trail. ted cruz and marco rubio were both here. cruz spoke for awhile. he spoke against it for a long time. he called it a disaster. we caught up with him as he was leaving the capital earlier this morning saying that this gives almost unlimited spending authority when we need to be scaling down spending. but it's a done deal here on capitol hill. it is headed to the president's desk. he will certainly sign it. this takes it off the table until after the election but it does not end the budget controversy because this is sort of the frame work, the big idea of how washington is going to spend money. specifically what gets spent from what department, those are the appropriation bills. 12 of them and they use the cash before the end of the year. so that has still got to happen and with new republican
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leadership here and with the significant number of republicans for or against this, we can still see some opposition. >> speaking of new republican leadership also in the house as well we have a new house speaker with paul ryan accepting the gavel. >> paul ryan said he would support the budget deal. he is calling for republicans to wipe the slate clean and move on in a bipartisan way. he is conservative but also trying to be a consensus builder. this budget deal is something john boehner didn't want to just drop in his lap so they wanted to get it done at the last minute before ryan took over. >> tracy, thank you for that. joining us there from washington. >> yeah. i was getting too excited, wasn't i? it's a friday. tom brady, by the way, passed for 356 yards last night. four touchdowns as the new england patriots rolled over
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miami 36-7. the patriots defense harassed the dolphins quarterback all night long. sacking him five times intercepted two passes and forcing a safety. patriots moved to 7-0 on the season. undefeated. the 5th defending champion to reach that mark after they won the big super bowl. >> but the main sport this weekend susan, it's not american football. it's not soccer. it's rugby. it's the rugby world cup final and the london eye is lit up in the colors of australia and new zealand ahead of the world cup final taking place tomorrow at twickenham stadium. it's the first final in history after only southern hemisphere teams made it through to the semis last weekend. australia going into the final as an the underdogs but so far they have not won a match in the competition. they also have efficient defense and ability to turnover the ball at the break down.
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new zealand have been the favorites throughout the competition. the match also marks the final international game for the captain that will retire with a world record number of caps at 149. so congratulations to him. now speaking first on cnbc the prime minister of new zealand told us why his team had the advantage. >> i think they'll play pretty good rugby, actually. i think they'll throw it around. if the all blacks turn up to play like they did against france then they are phenomenal and they really, really want to beat australia and want to win back to back world cups. >> and if you would like more predictions from the prime minister, check out this clip on twitter. he has an exact score prediction you can guess which way he thinks the game is going to go. but you heard first from the pm of new zealand. are you going to watch the final
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tomorrow? >> i will try. for north america it's a hard sport to grasp. >> it's complicated. >> it's so similar to north american football. >> similar shaped ball. >> tackle, running. >> very physical but otherwise pretty different. key difference, can't throw it forward. >> good point. no offense, defense separation. >> it's been a great competition and almost great that england went out so early because if we just crashed out in the semi then i would be gutted it's taking place. all eyes on aussie versus new zealand. >> and record break. whoever wins will be winning the third world cup and it's only been around since the 1980s. >> and probably only became a fully professional sport in the early 90s as well. it's a young sport in that sense. but great sport. there we go. that's enough of the football. quick look now back at markets
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before we go to break. let's have a look at european trade. just above flat in continental europe. just below flat for the ftse 100. of course it's at the end of a very positive month for equities globally including here in europe. >> all right. let's also take a look at the chinese currency as well. they have recorded the biggest rally since march. you want to stay tuned to find out what's powering the currency higher and we'll leave you with a look at how the futures are trading ahead of the open on wall street.
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>> here are your headlines from around the world. >> halloween fails to spook stock with u.s. markets set to post the best month in four years and erase all the third quarter losses. >> and default averted. the senate passes the budget bill to boost spending levels for the next two years. >> how about a latte. starbucks wakes up and smells the coffee as shares sink on light fourth quarter guidance. >> and valeant cuts all ties
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with philidor as it's lost confidence in it's pharmacy services partner. >> thank goodness it's friday. halloween this weekend. >> absolutelyis. exciting. i'm dressing tonight a day early. >> take lots of pictures. >> i will and they'll hit social media if it's good and if not we'll forget about it. >> latex involved? >> no latex. face and body paint. >> we'll watch for that. >> you, yourself? any halloween dressing up? >> i thought about it but i didn't get my act together in time. all the good costumes are already taken. >> there we go. disappointing. i'll make up for the two of us. >> all right. let's check in on the markets and how they're fairing ahead of the u.s. open one day away from halloween. u.s. futures telling us we're
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higher today above fair value. so the implied open is up five points. dow jones industrials higher by 39 and the nasdaq seeing gains of 12 points or so. we're looking at a fifth positive week for wall street and on track for the best month for all three benchmarks since 2011. so october has been great for those going long on equities. let's check in on the s&p 500. we're up 8%. close to 9% gains for the month. dow jones strils looking at double digits in october and -- well, close to double digits, 9% and the nasdaq, we saw 11% gains in 2011. right now we're on track and we're pushing ever closer to double digit gains for the month of october. >> susan, thanks for that. now baby stocks have been given a boost by the fact that china is abandoning the one child
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policy. >> china decided to end the decades old policy of restricting most families here to one child. instead all couple across the country will be able to have two children. the government made the decision at a major conference here when leaders got together to plan out the economic and social agenda for the next five years. the leaders wanted to address china's demographic issues. they have a rapidly aging population and shrinking work force. two problems that could weigh into the future. the change follows reform two years ago when authorities here decided to allow some couples to have more children but many demographic experts say this latest policy change is coming too little too late and that china because it's getting wealthier, more people are nationally choosing to have fewer children because of the financial costs of raising a child. the one child policy is also considered a human rights issue and many human rights activists
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welcome this move and it's a step in the right direction to end the many abuses that have been associated with the one child policy such as forced abortion and stolen children. >> and this will also change the gender dynamics in china as well because of the one child policy. a lot of parents want boys instead of girls and a lot more girls found themselves homeless and at orphanages and hopefully this changes this it's thinking in china. >> two points i'd make on this. i was surprised by the size of some of the stock price move because this move was a surprise on the day of the announcement has been priced in for some time. it was relaxed in 2013. the other point as well is that demographics have been pretty appalling in china and you think why is it taking so long to remove the policy. >> i agree with you. the work force is shrinking each and every year and some people say it's too little, too late.
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we're looking at the biggest population experiment the world has ever seen and now they're feeling the pain of it. >> that's not even to mention the social issue of this policy in the first place which seems extraordinary to me. it's great that it has been removed and we'll have to see what happens to china's demographics moving forward. the central bank announced measures designed to strengthen the country's financial system. the reforms will make it easier for foreign companies to invest in the country's financial sector. the rnb reported the biggest rally since march on the back of the announcement. moving by first, dollar/yen but also had a big move today. let's bring in thomas white, president and ceo of thomas white international. great to have you with us. let's kick off with china. lots of challenges facing the economy. the biggest one is shift from investment lead to consumer lead. how far down that path are they and how big of a change does that make to the dynamics in
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china. >> this quarter, china, raised for the first time over 51% consumer and service oriented. that's a major change from the very low 34% earlier. but china, this move with currency and children is nothing more than their move toward being a developed country and very few people understand that their policy makers are doing a fantastically successful job in orchestrating that change. it's misunderstood the stock market they had largely owned by the government had some problems but we have in the west used quantitative easing which is nothing more than the same thing. they're directly supporting the stock market. we're lowering the bonds which increases the stock market. same thing. these are the best policy makers in the world. >> what about the changes then to the one child policy. that is to try to ramp up the work force once again and an aging population. you have wages going up because
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there isn't enough people to fill the jobs and competitiveness going down for china. this is a self-preservation move isn't it? >> i just came back from a month working in our indian office. these indian professionals we higher very bright. get married have one child. chinese are going to have a very difficult time having working populations having more than one child. women want one child today. it's too expensive otherwise. it's what happened in the west. it's going to happen in china. but that's okay. china has still -- china labor costs is $3.60 a day. india is 90 cents. china has to redo their thinking to turn -- >> are you saying that even if they loosen this one child policy not many people are going to have more than one child. >> that's right. >> is that what you're thinking? >> it can be more than having more than one child. no different than the educated
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population in india and europe, the united states, japan, same thing. >> what's your call on china? even if you're right that the policy makers are the best in the world. even if you're right about that particular point t demographics are poor and worsening and you don't think this one child policy will change things. debt to gdp is close to 300% and rising so even if the policy makers are great they haven't got much flexibility. >> for 25 years china exported things to the west and collected money. westboroed it from china. $3 trillion. they have far more flexibility than western banks have. they are transitioning successfully. the thought that they are struggling with getting their stock market going. they have a population of a small number of investors that are largely young speculators.
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but what's going to change china is morgan stanley capital national is dealing with the second largest economy in the world. it has not yet put them in with all the money in the world as they go in there for the next couple of years it could change. they will be the largest stock market. >> thomas, quickly, i only have 20 seconds but we have been hearing 6.5% gdp from chinese authorities, does that matter? >> no, what you're seeing in the weakness in china is the old world. that has to be reduced. they're largely state run enterprises that are not very efficient. reducing them. the rest of china grew over 10 and 11%. that's where the growth is coming from and that's what i mean by forced transition. policy makers who can do that successfully get to their goals
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are policy makers doing well. >> thank you so much. you have a great weekend. >> thank you. >> drug maker valeant is ending it's relationship with philidor saying it lost confidence in it's ability to operate in an acceptable manner. this comes after they were dropped by the three largest pharmacy benefit managers in the u.s., cvs, express scripts and united health group. the drug maker was using philidor to prop up shares. they'll hold a conference call later today. 9:00 a.m. eastern time. >> and val aerks nt admitting maybe their relationship hurt their integrity. that's something they want to rescue at this point. we'll go to break here. connecting with investors. we're going to screen linkedin bumper earnings and what's behind the results.
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>> let's get out to cnbc hq where landon will break it down for us. >> impressive, indeed. linkedin reporting 78 cents per share on $780 million in
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revenue. shares up 37% from the previous year and analysts expected earnings of 46 cents a share on 756 murder in the second degree in revenue t. company says investments in it's mobile app and overseas markets are starting to pay off and raised it's forecast for the year. if upbeat results and outlook up more than 12% in after hours trading recovering it's losses over the past six months. the professional online network has spent heavily to boost it's appeal to corporate customers capitalizing on advertising growth and overhauling it's mobile presence. the service ended in september with 396 million account holders. a gain of 16 million since june. it topped 400 million this month. on a conference call linkedin recently overhauled it's inbox with a more casual communications interface which lifted messaging rates by a double digit percentage. more on that later today when
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she sits down with him exclusively. make sure to tune in for that. back to you. >> thank you for that. happy halloween to you. any dressing upcoming this weekend? >> same to you. i'm one of those last minute costume makers. so i'll have to go to the store and get whatever is left which is always a good last minute decision. >> well, i'm sure you can pull it off last minute. if i don't plan well in advance it usually looks pretty token. >> i've seen your outfit though. >> that was -- yeah, that one we did share it for some reason a few weeks ago but that wasn't really scary enough for halloween. have a wonderful weekend. thank you for that. starbucks shares dropped after hours as analysts view profit guidance as light. more on the story. >> starbucks reporting non-gap earnings of 43 cents a share on revenue, $4.91 billion.
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those results were in line with expectations. the global same store sales growth of 8% was better than anticipated and helped by sales in the americas and in the europe-africa segment. however same store sales growth in china and asia pacific came in at 6%. that was less than the 9 plus% expected. still on the call they plan to have 3500 stores in china by 2019 and traffic growth there continues to outpace traffic growth in the overall asia segment. speaking to concerns over store saturation in the u.s., the ceo and chairman insisting nothing could be further from the truth. the newest class of stores is performing at the highest level in company history. turn to the new mobile ordering app that rolled out here in the u.s. mobile payments now account for 21% of all u.s. transactions. >> although we only completed the roll out across our system, 5700 u.s. companies owned
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portfolio in september, we're already operating at a run rate of over 5 million transactions per month and that figure, believe it or not is growing by the hour. >> the company hike it's dividend 25% to 20 cents per share. in terms of outlooks starbucks saying comparable store sales should grow some what above mid-single digits and should report earnings of 44 to 45 cents a share. that's below estimates of 47 cents. and that outlook is the reason that shares at starbucks were trading lower in after hours initially following results. back to you. >> our colleagues state side will be speaking to the ceo of starbucks. don't miss that interview. that's 9:45 eastern time. >> let's bring it back here to europe and shares are trading higher after the company gave a positive view of revenues for this year due to higher than expected sales of its premium beers. the world's largest brewer added
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it expects above market average in china despite fears of on going economic slow down. the company gave no further comment on its proposed acquisition of sab miller but ab inbev is expected to launch a formal bid on november 4th and that deal is over $106 billion. >> right. an exciting one to see when it does close in full. now when two become one. googles's duo of operating systems will be in a single system and the combined system could be revealed as early as next year. that's according to the wall street journal. it's a sign of the growing dominance of mobile computing specifically android which is the world's most wildly used operating system. >> here's a look at u.s. futures since we're coming off a down session. the implied open is telling us we're above fair value pricing in a higher stock. s&p looking at a gain of 4 points. an upstart of 41 points and the nasdaq looks like we're in for
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maybe 11 or so. >> and it's a lackluster end for a blowout month for european equities. just above flat for continental europe and just below flat for the ftse 100 but today and this week have been less impressive than the rest of the month as a whole. >> well, thank goodness it's friday. here are the headlines today. u.s. futures pointing to a higher start with the big three equity indices on track for the best month since october 2011. the u.s. senate passed a two year budget plan. a debt limit extension averting a government default and profits for starbucks but shares are down in after hours on disappointing profit guidance for the holidays. want bladder leak underwear that moves like you do?
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welcome back to worldwide exchange. for now each week we'll battle it out over which chart we feel is the most relevant to investors to sum up the action and let us know which one you think has won between susan and i selected charts by worldwide cnbc.com. >> this is going to be fun. i'm going to kick things off. this week i'm saying it's the euro-dollar chart. ten days ago the euro was touching 114. now we're below 110. two events that really surprised the market and brought back the classic monetary policy differential argument that's dominated for the last year or so. late last week a dovish mario draghi. middle of the week a hawkish fed. a rate hike, one side of the atlantic. more easing the other side bringing the euro to 110. there we go. just in time. they didn't think i'd finish in
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time but i did. >> that was already a battle won. >> let's bring the clock back to 30. susan, what have you got from us. >> this is like taking candy from a baby. let's talk about three names. amazon, alphabet and microsoft. we're talking about nasdaq. nasdaq deposit has all three of these major companies and they, well they out performed so far in this earnings season. we're looking at gain of close to 10% on the month. best month for the nasdaq since 2011. we're also by the way just a mere few points away from the record highs back during the bubble days of 2000s. i even gave you an extra few seconds. >> extra spare second. you got it out in time. there we go. first one, euro dollar versus nasdaq and to decide who the winner s let's bring in christopher after bell curve capital. he joins us from the cme in chicago. which sums up the week best for you. >> susan, i really, really like
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you and but i have to go with the jurors row here. it's the big story. >> come on. >> we're totaling up the scores as well. the first week with a victory for frost. christopher, of course a agree with you. the fed surprised us all with that hawkishness, no. >> yeah. i'll give you a little bit more there as far as why the euro is such a big issue right now. we broke through that 110 handle earlier this morning. that sort of momentum created volatility overnight that we haven't seen. when it broke below 112, a lot of us traders believed we could see ka pitch you lags trade down to 106, 107. the nasdaq had a good run. 10%. i don't believe it's sustainable. we'll have a pull back in november but as far as the euro is concerned that's the big news on the floor. >> all right. i will concede. and be a good sport woman in this case.
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but christopher, since we are looking at the best month for equities on wall street since 2011 what happens if the fed tightens in december. >> i believe you're going to see exactly what happened when we saw that the fed, any hint can come out when they took that rhetoric, that line about the influence of foreign policy and numbers coming into account for their fed hike raise. i think you're going to see an immediate jump up. if there is no hike in december, but as far as if they do put that in there, we are going to see a capitulation to the down side. it's going below the fed index. now that's back toward 50. a lot of traders believe we'll see a cooling down period in the equity rally. >> as you said, maybe a cooling down period. we had a really great month.
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are there any sectors left behind? any sectors you want to be long on in the short-term? >> as far as sectors that are long-term, me thinking that there is going to be a cool down and some what of a pull back, we're leveling out our positions. energy has room to run with oil trading back at the 46 handle. it's stuck between 45 and 50. we do trade on average. our average trade is around 21 minutes here. so it's a short-term but that being said, i believe that the energy sector is going to maintain some of the momentum and we saw that yesterday. >> christopher, thanks for joining us. that's all we have time for today on the show. we've got the rugby world cup final coming this weekend. enjoy that. enyou halloween. thanks for watching. i'm wilfred frost. >> i'm susan lee. have a great weekend.
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but will the good times keep rolling? valiant pharmaceuticals drops again after one of its controversial partners gets dropped by cbs and there's more breaking news this morning on that story. and linkedin is getting hooked up with investors today. we have comments from the company's ceo. it is friday, october 30th, 2015. and squawk box begins right now. ♪
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>> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew rosss sorkin. halloween is anything but scary for the markets. the dow is up 9% for the month. the s&p 500 climbing nearly 9% and the nasdaq is up 10%. if you check out the futures you'll see there's positive arrows. the s&p is up by about 3 points. dow futures up by 25 points above fair value. we'll be talking about the fourth quarter come back. the fed and much more with our special guest. that's coming up at 8:00 a.m. eastern time. we will be talking a lot with him about what he see with t

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