tv Squawk Box CNBC November 9, 2015 6:00am-9:01am EST
"squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." good morning. welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin. becky's going to be back tomorrow. our guest host this hour is robert chaffee. he's the editor of fast company magazine. among the buzz stories this morning, there's a new report out that bonuses, it is not good news for the industry. overall compensation expected to drop for the first year since 2011. we'll have a lot of details on that. first, take a look at the markets this morning. look up to where we are. we'll see where we are in the u.s. equity futures. you're looking for down arrows. the dow looking like it will open down 50 points, nasdaq off 10 points and the s&p 500 off 7
points. >> here are the big stories we're watching today. weyerhaeuser is buying plumb creek timber for $8.4 billion in the total price tag. the combined company will keep the weyerhaeuser name and manage 13 million acres of timberland. you can see plumb creek timber up 17% in the pre-market. the dubai air show is now open for business. the last show two years ago saw record breaking orders. that's not the case this time. no major purchases yet announced. some say this is raising the red flag about the longer term health of the business. and in other global news, lufthansa canceling more than 900 flights today due to a cabin crew strike. a union calling for a walkout in frankfurt, munich, dusseldorf. 900 flights canceled. >> we talked about it on friday, i don't remember a lot about it. i remember i had to say
dusseldorf. i remember seeing that in the teleprompter and nailed it. nailed it. so there's a five star hotel there. >> there might be but i wasn't there on vacation. >> you were -- you were not there on vacation. >> i was not there on vacation. this is years ago. manasman, a german telephone company acquired by vodafone. >> you had to go there for what? >> to report on it. >> shoe leather action. >> thank you. >> is that a print term? >> shoe leather reporting. used to get outside the studio. >> so you must have been sort of a mid-level person? >> i was not a mid-level person. >> dusseldorf is where the low level reporting is? >> to cover that deal. >> it was a big deal. the biggest deal in history. to this day, actually, $183 billion. >> tho kidding? >> yeah. >> did it work out? >> they probably overpaid. >> yeah. >> you know, it was --
>> aol is a big deal. they're actually worth $5 when it was all -- >> yes. >> anyway. in corporate news, eriksson and cisco systems announcing a business and technology partnership today. the two say it's expected to generate revenue of $1 billion for each company by 2018. general electric is selling ge's capital commercial lending and leasing portfolios in australia and new zealand to a bain capital. berkshire hathaway is driven by a large gain on berkshire's stake in kraft heinz. operating profit did decline from insurance underwriting. a couple of the high profile recent stock picks of some blue chip companies isn't really working that well so far. >> at the moment. >> when you have kraft heinz in your portfolio for one quarter's marks, the rise in those shares
is pretty stunning. >> you have a lot of rationalization with that brazil oncompa ian company. it cuts stocks? >> what's the line about the fingernai fingernails? costs are like fingernails, you have to keep cutting them. >> i don't like that. >> unless you're howard hughs. if you do cut them, you store them with the urine and feces back in the -- yeah. he's coughing. >> nice, warm wakeup for you at 6:00. >> you've got to go pretty far out there to start doing that, right? i mean, if you are working for him you'd say, sir, are you -- you know, you'd have to question. there's a lot of companies still named hughes, too, which is weird, isn't it? >> yes. you know who owns the howard hughes company -- >> not owned entirely. >> how is phil doing? >> not so hot. we'll talk about him, too. auto news, volkswagen
planning to announce a new u.s. sales initiative. the company is trying to battle back from the emissions cheating scandal. wall street journal reporting vw is going to issue two debit cards to two owners of diesel cards. the other card will be linked to purchases at a vw dealership. the question is how much will be on the cards and whatever that number will be will placate an angry or unhappy vw owner. >> it's one thing to give a little bit of a refund to the owners of these cars who will see less of a subsidy because their cars are not as emission friendly as we once thought. it's another thing to help the dealers out. there's a lot of inventory that the dealers can't move. you have to wonder what sort of programs will have to be rolled out to help get those off the lots. >> if you owned one of these cars and you were unhappy, what would you have to get to decide you would ever be willing to be a vw buyer again? >> the ability to buy more stuff from vw, right?
>> it's a start maybe. >> if they give you a new car, just straight up and said, we'll give you a whole new car, would that make you a vw believer again? >> probably not. i would say, can i trust this vehicle? they have this issue of trust that they have to get over. it's a challenge. >> let's tell you one other piece of auto news. shares of renault dropping. the french government doesn't want a merger between the french car maker and the japanese maker nissan. the price of gas rose to $2.25. it breaks a 19 week long decline in prices. we keep going here. canadian pacific freight train carrying oil through wisconsin derailed. 13 cars knocked off the tracks spilling oil. the leak has been plugged. 35 homes evacuated as a precaution.
no one was injured. this was the second time this happened -- a derailment happened in two days in wisconsin. a bsnf freight train derailed saturday spilling ethanol. in tech news today, snap chat's daily video views reportedly tripling since may to 6 billion per day. this according to a report in the financial times. last week on facebook's earnings call it said it had done daily video view since april. now 8 billion views a day. so snap chat seems to be closing that gap with facebook. and photo sharing site pinterest reportedly plans to unveil a new technology today. "the wall street journal" says the change will let users highlight an object and then search for similar objects without having to type in text. pinterest says this is a move towards a type of visual search engine although it sounds like something you'll have to see in practice rather than in theory. and on wall street we're getting closer to bonus season. an annual report today released
by compensation consulting firm johnson associates fiensds financial bonuses dropping 5 to 10%. this marks the first time since 2011 that comes for the industry as a whole decline. joe, you would argue that comp is going up where you see record mna, record bond issuance. of course, some of the performance of the bank's clients, notably the asset managers hasn't done so well. >> good news. income inequality. bring down the high earners. try to get them down and bring the lower up a little bit to be a little bit more fair. fairer society. does mean not great things for new york city, sorkin. >> yeah. >> when people make more do they pay more taxes? >> they do. >> for the cmi world that is a bad thing i guess, right. >> not a good thing. >> did you have to think about that? >> absolutely not. >> the high ceo pays that. >> i never said high ceos pay
the tax base, by the way. >> income inequality, we should try to bring everybody up. >> everybody up. >> be crowded at the 1%. not everybody can be at the 1%. >> not everybody can. there will always be a distribution. >> raise. >> mobility. there's a mobility story. it's an opportunity story. >> isn't that the american dream? the bottom goes up, the whole idea. >> there's another sect that believes in the top goes down. >> oh, there definitely is. >> there is. >> they might not admit it. >> i'm not suggesting that at this table. >> yeah, okay. let's check on the markets this morning. i was ecstatic the fat cats with all of the cdos, derivatives, not backing the credit default swaps. >> although 5 to 10% drop is -- >> not enough, i agree. >> not 20%. >> right. if it were 100 or 80% so you guys are moving money around instead of actually producing anything. there are the futures down about 44 points.
i think the market might rally on this today. and let's -- we already checked these though, didn't we? andrew, you gave me these. >> they haven't switched much. >> shanghai was up sharply again. so that puts it well into bull market territory right now. up another 57 points to 3647. we're still -- this is the first day, andrew, after the big news on friday which put the euro at 108, it put the ten year at like 234. it's got i saw some rates elsewhere, 2%. >> janet yellen is going to be yelling. up, up, up. >> and oil back down 44. the saudis are going to keep pumping. look at that, 107 now on the euro. this is the first day after we saw that. in the market after all is said and done, you saw it was up, it was down, it was up, it was down. when it first sold off it was just classic because those were
the guys that they don't care about, you know, job growth. all they care about is the punch bowl staying filled up. it ended up a little but not as much. >> do you remember how many reports we saw at the beginning of the year saying that the euro would be at parity by the end of the year and then it rose again. >> yeah. once they start i think the euro starts going back up. if they do raise -- when are they supposed to raise now? >> december. >> december. >> i think 19th, 20th. latish december. >> a lot of people -- let's talk now since we're on this subject. joining us is the chief market strategist at voyea investment management and from philadelphia, jack mcintyre at brandywine, a global investment management. doug, i'll start with you. is most of this -- will most of these markets once it finally happens, it's already in a lot of the markets, i mean the dollar probably has seen its best levels, do rates stay right
around 230 or do they go up? >> you have to look at what's going on with the consumer. everything is good for the consumer during the virtuous cycle, jobs, low inflation, low oil prices, but if you look at fundamenta fundamentals, not so good. corporate earnings looks negative, flattish. revenues growth, flattish. global growth, low. big elephant in the room as everyone's been saying is central bank is a big party. ecb, bank of china, even though the fed is trying to normalize and raising rates, look at their policy. still very accommodative. going from ulta accommodative to very accommodative. you're seeing yields go up. we don't see yields really skyrocketing in any shape or form so i think they're going to be in pain. >> jack, we will be going one way and everybody else will be going another way. will that make a difference? will that cause some flux in markets and which one? >> well, to a certain degree
that's already been priced in because we've been in this sort of transition mode where the fed isn't trying to sort of tighten policy. we know the ecb and boj are very much committed to doing more stimulus. i think the big question isn't whether they go at the december meeting. it seems like based on friday's employment report, that's sort of baked in. what's the narrative going forward? what's the pace of tightening look like in 2016? and there i think because of the lack of inflation pressure they're going to err on the side of going very slow. >> let's just say for argument's sake that the market doesn't do well between now and when they're supposed to raise. let's say it goes into correction mode. no reason to think that, but is the market still something that the fed would use to delay the stock market, to delay that move in december? or are they going to go no matter what? >> i think it would have to be a very ugly environment for the equity market to derail the fed.
>> it was like 4% and they, you know, had feet of clay. >> yeah. i think, you know, so when they didn't move in september it focused the markets on kind of the growth scare. we've got some okay growth. china is certainly doing better. i think, you know, the september environment was the markets were looking for this global recession. i think things have actually improved since then so i would be very surprised if they keep the fed from being able to tighten in december. >> a long, long time. long time between now and then. >> getting zero interest rate policy. they got 0.25. does anyone think that's going to derail the economy? >> that's been the same story for the last two or three years. >> now they're ready to go. now everything looks good and we've had the runoff. the global scare is over. we have risks coming back into the market. mna activity. i think it would be unwarranted for them not to go. so it looks like they're going
to go. is it going to derail markets? i don't think so. i think you have to look at what i'd like to see is the strength of the consumer start to flow into corporate earnings. i want to see visibility on earnings. >> people have wanted them to say that they have been causing uncertainty and once they do finally make that first move, will that be a -- will that be taken bullishly? >> i think it will be taken bullishly, yes. it says finally we're off conventional monetary policy. i think the emerging markets will have a relief saying it's been done. >> they should go. >> they can wimp out on the next move if they want. this is not going to -- this is not going from unconventional to conventional. it's a quarter point. they can do this one and then if something else happens, they get nervous, they can not raise -- they can -- >> central banks always can do something. now what we're looking for is what is the ecb going to do? bank of china is the wild card.
overnight exports were down. they're still struggling a little bit. bank of china will act. >> no central bank since the financial crisis has been able to raise without having a problem, without having to go back and reverse it. we waited -- >> joe, that's why -- >> yeah, go ahead. >> i was going to say, joe, that's why the fed is going to err on the side of going slowly. you're right. we saw a lot of central banks tightening in the 2011 time period to only have to start cutting. if the fed was to go down that path i think, you know, you'd raise a little bit of the credibility issue. that would not be good for the financial markets. >> what's the date today? is it -- >> looking -- >> november 9th. >> neither one of you guys know. >> november 9th. so it's about six weeks -- five weeks. is it five weeks or whatever? >> yeah. >> you have a lot of fed speak between now and then.
>> i hope with any of these guys anything could happen anywhere in the world and they might -- i don't think they have a lot of conviction. >> the next item is european central bank could loosen. we'll see what they do. seems like they're committed to loosen. >> right. >> there's a lot of dissent. >> so many things could hit the fan. did you see that airliner? so many things could hit the fan between now and then that it could put a damper on or at least they could perceive it puts a damper on economic growth. >> that's idiosyncratic and not pervasive and systemic to the whole financial system. >> that's one of the things they were deciding on is not pervasive and systemic. it's the old blind and airplane. i picked a lousy day to stop sniffing glue. every day is a bad day to raise rates. never a good time. these people don't need much. >> today is a good day to raise rates. >> they should do an emergency
meeting. they should. schedule meetings, like murphy's law comes in. >> unfortunately, they don't have a meet today. >> they should have an emergency meeting and surprise everybody. they can't do that. if everybody is not prepared. >> thank you. what was that guy's name? i forget his name. that was leslie nielsen. johnny kept running in. doug and jack, thank you. you'll be with us for the rest of -- only fast companies. >> only fast companies, that's right. >> yeah. >> that scares you, mhuh? >> you can introduce me. >> thanks for having me. >> you're going to be with us until the end of the hour. >> works for fast company. they stay up all night. >> you never know what's going to happen. >> you never sleep. >> we don't wait six weeks. >> money never sleeps, pal. when we come back, a potentially troubling indicator in the bond markets. we'll talk mna.
welcome back to "squawk box." the latest james bond movie "spectre" winning box office. that it's at 73 million. "spectre's" costs were the -- the peanuts movie, the halloween one, the thank giving one, the christmas one, they seem out -- you know, new technology we can use for peanuts to make them more relevant. some new gags and stuff like that. hopefully they'll be -- this is his son that did this. son and grandson. >> it's nice that the franchise and the legacy can live on. >> it is. >> similar to the bond franchise. it's fascinating. it needs to make $650 million,
"spectre" to break even. >> it can do that easily. >> the question is, does he come back? i think he'll do one more. >> oh. >> yeah, he's coming back for one more. >> the times had a quote in the big piece about he would rather take a piece of glass and slice his wrist. >> i know. >> this is all in negotiation. >> we're not talking about what he is, we're talking about how much -- >> does he get 20 or more? >> i don't know. >> 30? >> 20, 30? i don't know. >> i think he wants to get more. >> for the next one. >> and he would. and he would. but there's always something else that could come along. there's been a lot of bond. totally different types. >> who's your dark horse for the next bond? >> i like -- can rupert friend talk with an accent? can he do the english accent? he's great. >> he can do just about anything. >> yeah. yeah. does he get your motor running a little bit?
>> he's extremely good looking. >> isn't he? >> yeah. >> i didn't see it last night. no spoilers, guys. >> i do think that berlin looked a lot like munich. a lot like germany. >> then they're doing a good job. >> meanwhile, potential red flag for the markets this morning. a piece in the wall street journal suggesting wall street banks are having a hard time selling billions of dollars of takeover loans. this could slow the pace of m&a which is now at record levels. andrew, the piece points out that the loans that are the hardest to get off the books are the low credit rating. >> lousy deals. >> health care or biotech oriented, i think in the wake of this whole valeant deal, two mentioned were health care deals and as a result people are more anxious about both the accounting issues but also what's going to happen to drug prices. >> if there's any truth to the
millers of the world that this has caused money to not -- because it was free to go to places that it shouldn't have gone. >> misplaced. >> some places you would expect to sour. there's no come uppance. >> it has to happen. >> when money is cheap and free, not going to put it into things that you have less discipline about. >> we'll be seeing sour a lot on some of these deals. maybe. >> record $115 billion of corporate issuance this year largely to fund m&a but also garden variety refinancing because people are rushing to do this stuff before it gets more expensive, too. >> yeah. you have opportunity. you have opportunity to start companies, ability to put things together, take them apart. when money is cheap, there's a lot of activity that can happen. there's a lot of activity. nobody hits the ball every time they get up at bat, right? that's what happens. >> meanwhile, would he have a couple of signs of life in the ipo market.
match.com has set a price range. the sec filing sets it at 12 to $14 a share for 33.3 million shares. that will raise $466 million. if it prices near the top of that range. it plans to trade on the nasdaq under the ticker mtch. bob, we have match, we have square. there are some pretty conservative expectations for these companies insofar as valuation goes because they have to bring the investors to the table to actually buy them. >> with square you have a company that's classic silicon valley, unicorn, right, that got a little bit ahead of itself. again, when money is free, when money is cheap, when people are looking for things, that kind of stuff is going to happen. people ask, is there a sfwhubub? there's always a bubble somewhere. not everyone is going to make money on everything. with match it's slightly different. you guys use tinder all the
time? >> all the time. >> you're asking three married people. >> i can't ask -- >> you can ask it on the air. >> on the air, off the air. same answer. same answer. >> with match they have like a little subdivision that's like super match. like the tinder subdivision of match or is it all -- >> tinder is like a feeder, right? younger, pulling people in. >> you're not supposed to -- you're not even supposed to date more than once on tinder, are you? >> not supposed to? >> you can. you can do whatever you want. >> it has a much racier reputation. >> i think only because you make decisions more quickly on tinder. it's just a first impression, you swipe or you keep. you swipe one way or the other. this is obviously coming from someone who's never used it. >> what's the other sfwhun. >> for married people. >> ashleigh -- >> that came pretty quickly. >> that's the one. >> you were just reeling it out.
>> i thought ashley madison was for full figure gals. i did. i thought it was where you can buy the big -- no? what's that called? >> i don't -- >> lane bryant. >> lane bryant. >> what do you mean, you knew. she didn't know lane bryant but she knew ashley madison. when we come back, we have a lot more to talk about. changing the face of men's health. watch out unicorns. why they think 2016 is going to be the year of they call them the cockroach. as we head towards break, take a look at last week's s&p 500 winners and losers. when you're not confident your company's data is secure, the possibility of a breach can quickly
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>> you claim to be sporting a moustache. >> i'm attempting to sport a mu moustache. when did it start growing? >> november 2nd or 3rd. it's my annual tradition of getting emasculated on cnbc. >> you come to talk about movember and to talk about the razor business, right? >> yes. >> can we talk about the business for a second? >> yes. >> this has grown like crazy. this is like a crazy situation. >> yeah. >> but to me what's so interesting is not only has your business grown, it feels like the whole category of men's razor blades has shifted with gillette trying to get in on these monthly clubs and the $1 -- >> dollar shave club. >> the dollar shave club guys. it's totally blowing up. >> yeah. so maybe to start we can just tell everybody what harry's is. >> we could do that. >> we're a shaving razor brand. we built the business because there were expensive razors that
were good quality and there were cheap razors that we didn't want to shave with. we wanted a high quality product at a great price. so we make all of our products. we bought a razor blade factory in germany. we grind, steel, make our own blades. we sell them to customers directly harry's.com for half the price of what leading brands do. in leading -- >> leading brands like gillette? you can name your competitors? >> yeah, like those guys. >> yeah. so we try to give guys an amazing quality product at a great deal. harry's. >> what is happening with gillette trying to do what you're doing a little bit? you don't think they're trying to do what you're doing? >> i think everyone in the market realizes they need to do what customers want them to do. lots of people want to be able to access products online via subscription. it's a really easy process, and i think they are following us in that trend. >> what do you use for your face? it's very smooth. >> sometimes, you know, i can use an electric razor. every once in a while i'll use a
regular one. >> that's what i do. >> how do you feel about the electrics? would you ever go into the electric business? >> no, it's a different segment. if you want a good shave, wet shave is the best way to shave. >> you don't want to do that every day. >> the majority of guys shave with a traditional razor and blade. >> would you ever go after women? >> yeah. so we have happy female customers today. the -- for us the brand is really focused on men for now but at some point in time down the road we will speak about a more familiar brand for women. >> that's me asking. >> we have to get you a razor. >> is harry's about pricing and sort of convenience or is there some lifestyle element to it? if it's just buying online like anybody can buy online? >> to start, it's about quality. we want to deliver people an amazing product. we spent a ton of time thinking about how we can make razors, shaving products that perform better for guys. so that's where it starts. and then from there what we
realize is what guys want is they want a great deal and they want the product in a really convenient way. that can be online or direct online to buy once, it can be through a subscription. we want to make the entire experience of getting products better for guys and do it in a way that's friendly and easy for them as opposed to lots of other -- >> when we teed this segment up we talked about unikorms and what you guys call a cockroach theory. explain what the cockroach theory is. >> cockroach, i think paul graham posted about it. the idea was basically that, you know, cockroaches are really durable. the idea of being able to survive through cycles of easier ability to raise capital and lessee less easy ability to raise capital. >> you think -- what's your valuation at this point? are you a unicorn? >> not yet. >> not a unicorn? >> i think the way we think about it -- >> everysomeoone is a unicorn.
>> yeah. i think great consumer brands take decades to build. we understand that. what we want to do is build a brand that's enduring and lasts for a long time. we're only two years old. we're a baby. we're trying to set the foundation to be around for a long time. >> you have a lot of capital. you produce something that's in a consumer's hands. it's not like you're in your house somewhere building an app. how do you access capital and how do you view the market right now? >> so we've invested tens of millions of dollars in germany to make -- to expand production capacity because our business is growing so fast and to make our products even better, and we have gotten a lot of capital, gone to markets to enable ourselves to do that which we think is going to be important as we continue to build this business. >> so the actual shaver itself, is the base of the shaver important? because these other people that you won't mention the names, they have things like with
little balls and they have things with batteries in them to do something. it's planned on so he lease sense. th -- obsolescence. they started with two blades, four blades. >> there is a seven blade razor. >> why not do eight? >> ours is five. >> you're up to five now? >> we started with five. >> you started with five? >> we've always had a five blade razor. it is actually five. the key to your question is that the blaze is really the key technology piece. that's what our factory has been grinding steel for 95 years. >> other than being really sharp, what does it differentiate between a good blade and a bad blade? >> it's called a gothic arch. strong at the tip and strong at the base so it doesn't wear out after the one shave. the grinding process to get steel to act in that way on razor blades is complicated. >> say someone happens to borrow a blade and use it on something
other than a face, is there any way that blade is not ruined after one swipe of a leg. >> are you talking about your wife borrowing your razor? >> i have a friend that might do that and then put it back where i would have no idea where someone may have borrowed it. >> two things there. one is the same technology that enables a blade to be durable on the face also enables it to be durable in other places. you should rest assured there. >> although i have been guilty of that and it's actually too sharp to use on your legs. >> at my house? >> well, the other thing that we see is we see all these guys ordering and then reordering really quickly. reordering razors. so we'll call them and say, hey, like you just ordered. why did you order another one so fast? did you lose it, what happened? >> they said, no, no, i had my razor. my wife started using it. i'm going to order the second one for myself and give her my harry's. i'll have this one stashed away. >> what did mr. kayla say? did he bust you on it? >> no, he didn't. no, he didn't because i was very
good about rinsing it out and cleaning it and putting it back. >> you can see. >> no, you can't. it was actually -- it was too sharp. i had a band aid on my leg. he was like, what happened to you. >> i will go, look at this. do you know anything about this? you. you can tell. it's like, wow, this is brand new. i've only used it once. you look and there's all -- it's bad, right? >> well, you can get a secondhandle for whoever your friend is that's borrowing your razors. >> i have a friend whose wife did that. >> thank you guys. >> happy movember. >> happy movember. >> happy movember back to you. >> i can't get it. >> i can't get it either. >> you guys will get some calls. >> there's a new trend going on. >> do you know people are doing a beard transplant? did you read about this in "the new york times"? it's very strange. >> i did see this. >> they're taking the hair from the back of their head and planting it on the face. beards in brooklyn are the hot thing to do.
that's not good for your business. >> yeah, exactly. >> okay. thanks, guys. >> thanks. coming up, the ceo of proof point. the cyber security company soaring nearly 50% just in the last year alone. g says directv is so advanced that you could put tvs anywhere without looking at cable wires and boxes in every room. how are they always one step ahead of us? well, because their technology is far superior. or because they have someone on the inside. is that right, gil? sir, i would never... he's with them! he's wearing a wire. take off his shirt! take off his shirt! oh! ah! alright, i'm putting you in charge of the holiday party. (vo) get rid of cable and upgrade to directv. call 1-800-directv.
the fortune 100 or -- >> roughly 25% of the fortune 1,000, yeah. >> how many other cyber security firms are out there? you need more than one. >> you need more than one. you have multiple solutions to help solve the problems. >> in looking at -- in preparing for what to talk to you about, why are people ramping up their hacking of social accounts now? >> because it's vulnerable. >> what good is it to hack it and do something to it? >> oh, you can steal people's data. >> from a social account? >> one of the common things, for example, now is bad actors will set up fish sites, look exactly like a bank. they'll set those up in relationship to the bank support sites. if you're a banking customer, you want to get support for your account, hackers will basically the moment that organization goes offline, they'll basically take the tweet, respond to the customer, steal their banking information. happens all the time. >> that is sort of hard to
understand. so as far as e-mails go, you detect how many bad e-mails per day? >> oh, it's billions. >> millions? >> up to the billions. the reality is people recognize, bad actors recognize the easiest way to get into an organization is through the most vulnerable, through its people. people click on the link, they download an attachment and that opens up and exposes the whole network. >> i hear banking ceos say that they get upwards of 100,000 attempted attacks every single day but is there a point where the system gets fortified enough that they don't need anymore of your services? one of the reasons fireeye had such a bad quarter is there were no big hacks. that's a good thing for the consumer but it's a bad thing for the underlying company. >> i think at the end of the day the value that we're delivering is helping people prevent these through e-mail, through social,
through mobile. although the technology continues to get better, the trade craft is advancing at a really rapid rate. it allows companies like us to continue to allow solutions. >> often we hear about these hacks, major hacks where, you know, hundreds of thousands upon millions of people, their data is taken. then you don't hear necessarily about something bad happening to them. i always wondered whether ultimately there's some group out there that is literally collecting, sifting through all of this information and that in years from now, two or three years from now they're going to have all of this and then they're going to -- it's almost going to detonate at one time. >> i don't know that it detonates at one time but there is science that says that bad actors want to hold onto the data at one time. you might not see identity theft or those kinds of activities for a while. so if someone's information gets stolen, they need to be diligent
about that process for a long time. oftentimes they collect it. hackers will collect it and then disseminate and use it over a period of time. >> now we're learning, too, that some of the greatest risks might be underground or under sea in the ficyber networks. are you worried about that? >> our customers worry about the thing that is most vulnerable, their people. it's harder to protect behavior of individuals. >> is this like the explosion of mobile, carrying our phones around. >> no, we see the place it's most malicious today on mobile is everyone downloads great apps, right? in reality they don't know anything about the app, right. you have some cool app, there's a cool card reader app, take a picture of a card, it will load it into the cards. the card reader app, takes all of the details, it sends it off to servers all over the world. that's creating a big vulnerability that people aren't aware of.
>> talking about being unaware, i know we have to go, how often do you see companies get hacked but never really tell the customer? we don't actually find out about it publicly? there are certain types of customers. if google ever admitted that there was a major attack on g mail, for example, that would pose a huge, huge problem. if apple ever really said that icloud was massively hacked -- >> we have hacks attempted all the time. >> so to your point. a couple of things. one is in the u.s. across all the states there's breach notification laws. you have to operate within the law. those laws ensure that if there's specific data stolen, companies have to disclose. >> right. >> what's interesting today is in europe the breach notification laws exist. there's a broader eu directive that will ultimately influence us in a couple of years or a year and a half. in the u.s. you do have breach notification laws. you can't ignore any hack that happens. >> long, long time ago but i'll
talk to you off camera. i have a question for you. >> thank you. >> thank you. great to be here. >> appreciate it. bomb safety and unveils, habits of the most productive people, including how much they actually need to sleep. >> more to sleep. stay tuned. you're watching "squawk box" first in business worldwide.
welcome back. our guest host or co-host, our guest host, co-host whatever, fast company -- >> he's not a co-host. >> anyone can be a co-host. magazine's latest cover story looks at secrets of most productive people including hutch sleep they get. >> studies show the optimal amount of sleep 7 and three quarters of sleep. more or less you have more sick days. that doesn't mean every person is the same way. oprah winfrey sleeps five and a half hours a night. she guess up between 6:17 and 6:23 without an alarm clock. >> she's going to bed at 2:00 a.m. >> that's her normal hour. >> what's the other things most
productive people do besides having a team of assistants. >> you're talking about you need seven hours. a dj who will be on your show later this week. he will go three weeks without getting a night's sleep when he's on the road. he's napping all the time. you have to create a system four self. what makes you productive. you have to find high value activities that you're good at and then delegate to other people the high value activities that you're not good at. >> that's where assistants come in to play. >> collaborating. do you have a team of assistants? >> i don't. >> he has a team of virtual assistants. >> fancy hands. i use a service called fancy hands. >> this works for you? >> i was fascinated almost every single person frouns on multitasking pup have to
prioritize. that's nearly impossible. >> listen, it's microtasking, right? we don't really do -- we have one brain, different things are going on. figures out how to shift from one thing to another. some people are better at it. you have to recognize what you're good at and not good at. even oprah says sometimes in her chicago office she used to literally go into the closet and close the door to get some peace. right. wean her assistants. we all have to know what our capacity is and work to the function of that capacity. >> sleep is still to this day poorly understood but obviously really important for maintenance and neurotransmitter renewal and rem. why do you think you have these bizarre dreams that resolve conflict. lot is going on. i don't know, three or four hours tough to believe. for me it has to be between seven and eight. >> how many hours a week you
should work? once you get over 50 hours, 49 hours it starts to flatten out. >> all right. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
>> you're doing a great job. i think this show got better by 2 billion percent. >> i knew this was going to happen. who is that? >> trump's a racist. >> highlights straight ahead as the second hour of "squawk box" begins right now. ♪ >> announcer: live from the beating heart of business new york city this is "squawk box". welcome back. the "squawk box" here, first in business world wild. i'm with joe kernen along with andrew ross sorkin. we're watching crude prices. according to a report now above but there's no plans to throw down the crude production, to try to boost oil prices. that's been their m.o. for the last year or so.
saudi arabia will hold production steady to protect market share ahead of the next opec meeting on december 4th. let's talk about the other top stories. this just in from dupont the company named edward green chairman and ceo. he's been serving in those jobs on an interim basis on the firing of the previous ceo. also we should tell you, the parent group set a range for its ipo. it's for 33 million shares at $12 to $14 per share. the dating service plans to trade on the nasdaq under the ticker mtch. and weyerhaeuser will manage more than 13 acres of timberland. >> major averages coming off six
straight weeks of gains. first and only time that's happened all year despite friday's tepid market response to better than expected employment report. u.s. equity futures at this hour are slightly into negative territory following the action we saw at the end of last week. dominic chu joins us now with what we should be watching for. >> good morning. as we talk about what's happening with the markets the bias as been more bullish over the course of the past couple of weeks. let's take a look what's happening with markets. s&p 500, you can see up 9%. just since the quarter began. so october 1st, september 30th, we're up about 9%. very strong start to what could be a good fourth quarter for the stock market. year-to-date basis we're about flat, up 2% overall. a lot of volatility we've seen has been recovered but we're just again 2% to the upside overall for 2015. as you take a look at some of the themes, the highlights you mentioned six straight weeks in
terms of gains, first time it happened so far this year. financials and technology are helping to lead the way just so far in this early part of move to and that's par because we know financials,ing the and financials are the two most heavily weighted sectors in the s&p 500. you look at the big highlights of the quarter so far. small caps have been outperforming last week. another sign positive perhaps those small cap stocks outperform when there's optimism about the overall market and if they do perhaps it's a leading indicator for the market and best monthly gains in october for four years. best performing sector so far i want to high like this one because it's important to the overall economy. the consumer discretion is important it's not one of the biggest but consumer spendi ini drives two-thirds of our economy. >> we have retail sales coming
out this week and some are saying the warm weather could be a damper on that. we'll see how it goes. we appreciate you giving us the performance of the markets this morning. thanks. for more on the markets this morning we want to bring in peter krause chairman and ceo of ab. we want to talk about the markets and the etf market. you said some provocative things. before we do the etf thing where are the markets right now given what we saw in terms of the jobs picture on friday and whether good news is good news, bad news is bad news. how does it play itself out? >> i think the market is fairly priced but as you saw, the economic numbers continue to get stronger. they do that in fits and starts. a little bit up. a little bit back. but the progression has been positive and the bond market has responded to that and you'll see some increased volatility as we get closer to the fed decision. ultimately it's pretty hard for
stocks to go down here. earnings are growing. inflation is slow. employment is growing. fed will make some decision in the next few months. i think stocks will probably be positive going forward. >> when you say earnings are growing, real earnings depending on how you look at it for some of the big multinationals are not growing. >> that's true. that's had an impact on stocks. that's mostly a translation issue i.e. the dollar is gaining strengthen. i want reduces the cost of imports. those companies manufacture goods in the united states at cheaper cost. the dollar strengthen is not a bad thing. >> let's turn to this etf debate. you had a fwloomy message. you said you guys woke up back in august, you woke up one morning in august and the dow was down 1,090 points and on that day an etf traded at a 30%
discount. that should never happen. you'll never get that money back. these fund may have low fees and they are not safe and your clients need to understand that. i had spoken with a ceo of blackrock larry fink last week and he responded to those comments. >> should learn more about etfs. we look at this as a good wake up call. we're looking at this as serious. and we can't accept that type of market action. but i would not be as hysterical. >> larry fink has a big position in the world of etfs. you don't. he says you need to learn more about this business. and he had an impassioned defense. you think what about that defense? >> look, i think etfs are an effective tool in many respects. we use them in the firm as poif portfolio managers. and lots of investors have been interested in them.
at the end of the day etfs need a warning label. there are issues with etfs and the average investor didn't expect that experience in august and it occurred. that's fact. we don't have to debate it. it happened. in addition highly popular high yield etfs since their inception not actually outperformed their indices. there's large cigarettements of the etf population that behave in ways that were not intended. there's nothing wrong with etfs. people need to understand them. the industry has a responsibility to make that clear. >> larry fink shifted some of the blame and said it was a market structure issue and that the problem was the stocks underlying the etf were suspended for trading but the etfs themselves weren't. if you suspended the etfs too is that enough? >> i don't know. if you told every etf owner we have the right to suspend your etf and you will not be able to trade it during that suspension
period and that could happen at any point in time and we're making that decision that would change the sense of liquidity around those etfs. >> do you make a distinction between high yield etfs which is something karl icahn has raised a red flag about and broader etf market including equities. what you were referring to was the equity situation. >> both. it affected both. period of time for which the equity etf was disconnected from its cash underliars was not that long but i think it's hard for anybody to guarantee investors it can never happen again or if it happened i want wouldn't be 90 minutes it could be nine hours, it could be nine days. we just don't know. >> to some degree you're suggesting it needs have a warning label. but why wouldn't you just say these things are bad things more broadly? if that's the case. >> i don't think they are bad. i never said they are bad. i said that they have risks and we have to understand risks.
investors have the right and should have the right to invest in anything they want as long as they understand how they behave. >> the question then should there be a greater yield given the risk. >> they shouldn't be so popular. perhaps people who own them believe they don't have these risks. if they did understand them they wouldn't buy them. >> give us the worse case scenario. is it what happened in august or much worse case scenario or is it a semiic riystem risk to the? >> ultimately if people feel markets are not fair and markets don't price liquidity effectively then they will back away from markets and lose confidence in markets. that's a bad thing. we don't want securities trading in the marketplace that people expect to trade in a certain way and then they are surprised by that. >> it's appropriate to use an etf as opposed to buying a
particular equity or mutual fund or index that they would be tracking? >> everybody has to decide how much liquidity they need. if you're not owning an etf for liquidity reasons you need have instant liquidity etfs can have a reasonably effective role. but if part of the reason you're owning an etf is liquidity you have to understand it may not thereabout when you want it and that's the risk. that's the issue. >> okay. we'll leave it there. >> can't believe you haven't started doing this. you're quite a dandy, peter. you have the purple tie. it all fits. >> if you had a different tie you would have a different watch. >> why wouldn't you? >> why you haven't graduated to this style. >> you match your tie and shirt, didn't. >> you not really.
it was dark. >> he matched his tie and shirt. >> so that's -- how many of these do you have? >> i have a few. >> do you know anyone that matches their watch to their tie? >> i wish i could. >> you can. >> you can. watches are not too expensive. >> i know one person that does that. >> i tried the apple watch. >> i don't know lloyd does that. >> he's got a black one and a clear one. they match with everything. >> that's amazing. you have ten of them. >> more than ten. yeah. >> really cool. something i'm going to do. thank you for being here. >> nice to see the rest of you. coming up -- wild swings in the stock market. a closer look at the biggest movers and what's driving the dramatic percentage pops and drops. and grover norquist is grading
we have some red arrows. dow will open off by 40 points. nasdaq looking to open off nine points. bonus season on wall street right around the concern. annual report today released by johnson associates find industry bonuses to drop by 5% to 10%. >> whipsaw action in the stock market despite the dow and s&p trading flat for the year investors seeing their wealth double in blew chip names like amazon and netflix. ing >> wait watchers seeing a gain thanks to the involvement of oprah. on the flip side earnings headlines driving shares of apparel iconix.
what's driving these wild swings and should we brace for more volatility? dominic chu is back at the desk alodesk. you have these names like netflix, amazon, facebook, google really driving the gains of the nasdaq which super8% so far this year. so why not just put your money there and leave it. >> because they've already worked so well. the argument is as you wake up and see these handful of stocks that have already priced in world domination in many cases by these companies is that actually the best place for your incremental dollar. what i find interesting up 12% and a straight line since september you've had those huge stocks leading and at the same time you had the bombed out things like energy and materials just reverting back to the mean and lifting a little bit. you had this general support. most of the winners and i think this is about a maturable market
and maturable profit cycle. guys missed earningser and maybe they are out of options. >> what about financials? is it finally maybe the tide turning in december? >> so interesting with financials because when we talk about financials the banks have been such a huge focus in this upswing. a lot of it driven because of these ideas that rates can go higher. what does that mean for banks overall. the big guys like bank of america and jpmorgan and the regions financials, the pncs of the world that make their living on interest rates. they brother at cheap rates and tloind at higher ones. financials, it's important to segment out banks and insurance companies and real estate investment trusts, they are all different. reits will get their own sector. >> so hard to choose value in this market because so much of
the gains have been driven by consumer discretionary which we mentioned could be on tender hooks because of warmer weather. energy, people are still too nervous to play there. how due find value? >> look in places where people are nervous. that pretty much is what a company's value is when people have some good reason not to go in. i think it's important also to note and consumer discretionary it's been a handful of stocks driving things. average retail certificate actually having a bad year. so it's really been amazon, netflix. amazon is not a tech stock. >> it has a book store. >> back into physical. it's a matter of figures out if this is the new forward going way the market will be. is it going to be this revival of the nifty 50 handful of growth stocks or this period where broad earnings growth can recover. >> how funny there are people out there calling amazon and
netflix blue chip stocks. it's interesting. right? you talk about netflix, these were momentum stocks. those things they trade in a trend that's definitive over a decent sthort medium term period. >> they are among the most widely held stocks. >> tremendous at this point. with amazon you can say the economic footprint of the company is tremendous. netflix is much more of kind of a specialty consumer discretionary media company. >> facebook a blue chip now? >> without a doubt. $300 billion. doesn't mean it's a buy and stick it in your portfolio. it means it's that big in the economic community. >> six or seven companies in the entire s&p 500 have a market gap of $300 billion or more. >> blue chips are the ones that are the dogs of the dow. blue chips are like they are stable. >> they pay dividends.
>> mcdonald's super. >> they don't go up like netflix. >> they don't double in price. they are very much story stocks and ones that have a lot of momentum to them. when the story changes that momentum can go just as sharply to the down side which is that whole swing factor. >> i know we had this conversation at the beginning of november. there's this idea when you have an october as strong as we saw the gains for november, the gains for december are muted at best. does last week set us up for that trend going into the holiday? >> it suggests the market was tired. also the past two years the bulls have overplayed their hand in the fourth quarter. they chased it almost right into december. what did you have in january? a pull back. people want to avoid that pattern of gunning it. we're at 2100 in the s&p. this was the level that held the market back for six months before we crashed. >> you would probably -- one of you might know -- this year has been unbelievably nonvolatile
until recently. not a lot of wild swings in the market. it's been zero interest rates have caused almost zero volatility until august came along. >> it's a transition year. confusion year because we're waiting for some kind of clarity. and the index has held up but below it people call it a rolling bear market. >> joe's point commission brokers and traders out there who make money on transactions. they are saying a lot of them tell me we're not seeing the kinds of volumes that we want to see. >> there seems to be a lack of conviction. >> there's a lack of conviction. i would say this. there's a lack of conviction because there's no reason to change your strategy yet. the fed hasn't done anything even though we anticipate they will. there's no reason for a portfolio manager on wall street to fundamentally change their view or trade in and out of certain stocks or asset classes because there has been no definitive reason to do so. when there is you might see those transaction type guys do
presidential candidate donald trump hosting "saturday night live" this weekend. it was the highest rated episode of the show since 2012 but it didn't come without controversy. latino activist group deport racism.com offered $5,000 to anyone who could interrupt trump during the show. the show handled the controversy with this bit albeit a planned one. >> we're going to have a lot of fun tonight. >> you're a racist. >> who the hell -- i knew this was going to happen. who is that? >> trump's a racist. [ laughter ] [ applause ] >> it's larry david. what are you doing, larry? >> i heard if i yield that they would give me $5,000.
[ laughter ] >> as a businessman i can fully respect that. >> little bit more of larry david and darryl hammond. what did you think? >> those two guys were funny. they got the greatest donald looks too. both of them. a little bit different. >> you could choose only one which one would you have to lay him? >> i have to look at it again. >> i like both. i like hammond. that could be a history thing. hammond can do so many of these things. >> did you see donald trump as drake? >> i liked that. >> i was googling her to figure it out. still don't -- >> you didn't download it on your apple music. >> chandler? know that song? >> i didn't understand the -- i
couldn't, couldn't see. >> you need to get out a little more, i think. i think. >> how is that. to see people -- >> yeah. >> i'll put my music expertise. do you listen -- >> sometimes. >> i don't know what is that. it is pop. >> pop, i would say. >> she's australian. >> she can't see. >> i've seen pictures with her full face i can see it. she always had that look? >> pretty close to it. >> all right. >> yeah. >> you can download on your new apple music. he's just got apple music. he's excited to download all the songs. >> coming up, grading the presidential candidates tax
plans. take a look at u.s. equity futures. dow looks like it will open up about 45 points down. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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capital affiliate. like tube fly on that wall. of the ge deal? wouldn't you. honestly. >> i would like to be in the oval office. >> right. >> the wheels are turning. >> wouldn't you block to be a fly on the wall? >> yes, i would. >> there will be four new balloons at the macy's thanksgiving parade this year. new balloons were inflated and shown crowd for first time as part of a test flight yesterday. the new characters are red from angry birds. sinclair oil mascot dino. scrap from the ice age franchise and ronald mcdonald. parade coverage begins at 9:00 a.m. on november 26th. i can't believe it's time for the macy's day parade. >> i can't believe ronald mcdonald was not a part of it before. >> previously but may have left
for a while. i'm not sure. i could have sworn i saw him. maybe not the big balloon. >> check this out. 15 vehicles were swallowed by a slank hole. it happened in an ihop parking lot in mississippi. no injuries were reported. crews are investigating what caused the sinkhole. they believe it's related to more than ten inches of rainfall in the area over the last two weeks. that's a stunning image of those cars. >> sink holes are scary. >> oh, man. >> you don't recover people who fall in. >> looks relatively shallow from others we've seen in people's backyards and florida. >> some people would characterize our debt as a huge sinkhole. >> that's a great segue. >> presidential candidates are calling for ambitious plans to the debt.
grover norquist joins us now founder and president for americans for tax reforms. we've seen each, not each but many of the guys that will be on the stage tomorrow night either the undercard or the other one, we've seen tax plans. is there one that's your favorite that holds most closely to your principles? >> not really. the interesting news that most people have missed is how similar they are. they all take the corporate income tax down dramatically because we're at 35%, european average is 25, china is at 25, and they bring it down. trump takes it down 15, others take it down to zero. but they all realize they got to take that down. personal rates come down. they all move towards a single rate tax. they all want to make savings tax-free like expandible iras. the alternative minimum tax goes
away. full business expensing and no death tax. so while there are differences between them, the key issue is all the republicans are exactly on the same page which is not where we were in 1980 when george herbert walker bush referred to lower marginal tax rates as voodoo economics. you have a unified republican vision and the democrats have been fairly clear about the direction of their tax policy but not been specific about which tax, how they are going raise taxes. they are going to be tax increases. it's up. that's the direction. the collective progressive left hates everyone one of these plans. today it's the rubio is the poster child on "huffington post" entitled with the calm and the nonhyperbollic language of the "huffington post". the tax cut that would destroy the budget. more than three times larger
than bush's 34% would go to the top 1%. i've seen that. they go from one tax plan to the next for which one will be the most, the cruellest and the one that gets the biggest tax cuts to rich people. >> what our friends on the left do is they go from monday until wednesday explaining that our present tax system is not progressive at all. then on thursday and friday they explain that if you cut across the board the rich people would get all the money because they are paying all the taxes now. and you really can't connect those two. we have a very progressive tax structure. much more progressive than some of the european structures because they have the vax. to cut everybody's taxes the same percentage ends up more for somebody else. the most important thing on tax policy is to reduce those taxes
the damage economic growth. if we had grown from the bottom of the recession that ended six months into obama's presidency, and grown at the same rates we did from reagan's bottom of the recession that he had, there would be 12 million more americans at work today had we taken reagan's route of lower tax, stable money, less regulation. there's 12 million americans, 12 million families damaged by not learning the lessons from the 1980s which the rest of the world learned which is why they have corporate income taxes below ours. >> i think both sides say liars figure and figures lie. that's the beauty of economics. you can give the nobel prize to sti stiglitch and then friedman then krugman.
i won't say opposites. two sides say zombie economic policies of trickle down. didn't work and voodoo economics would be a nice term for what they call the notion that tax cuts can generate some kind of dynamic revenue at that point. they just say that's been proven absolutely wrong. just like it's been proven absolutely wrong higher minimum wages ever hurt employment. they say these things are settled and they say opposite things. >> the advantage now for those of us want to see less taxes and less regulation somewhere between 50 and 57 states depending on who you believe and among those states there is, there are 24 where the republicans have the governorship in beaumont houses and they are doing itting things only limited government. and there are seven states, california and six others that are run by democrats. and they can do anything they want in vermont.
so let's look at that and why do the seven blue states not take the minimum wage up to $50,000 a year if it has no effect? why not increase the income tax in those states? point of fact people are leaving those states that have high income taxes and moving to the nine states that have no income taxes. >> so trump has not signed on, right? but he says that he would not allow an increase in the net amount. so, do you take that as -- would you say that he is part of the pledge or not? >> he has not yet taken the pledge. it's my understanding that he will. >> then jeb, during the debate did he say -- he wanted to give someone a warm kiss. is it a wet kiss or a warm kiss, do you know? what's your term. >> i'm not sure. jeb bush in the middle of the
debate in '12 when we were trying to stop a tax increase by obama he announced uninvited i don't know what he was doing as former governor, oh, i would raise taxes as part of a budget deal. the republicans in the house and senate were united that was never going to happen and then this budinsky comes in and kicks him in the shin. we got the sequester and spending limit which was very important. since then when bush said he would raise taxes as part of a budget deal like his dad did and gave us a recession and eight years of the clintons thank you very much, he's now said he would not do that. but he's not been willing to put it in writing. studies show that politicians very easily will tell you they won't raise your taxes and what they verbally say has no impact at all on what they actually do. but if they sign it and make it in writing the pledge to the american people, the chances of them raising taxes are very,
very small. we haven't had a -- >> it was a question about if you can get ten revenue cut and one tax increase would you do it? that's sort of -- that's the question that, that gets phrased on the left to show the unreasonableness of people that sign your pledge. they try to make you look silly. >> except as they know there's no democratic offer for ten to one. no democratic offer for three to one or two to one. what obama wanted in 2011 was more tax increases and more spending. no spending cuts at all. just higher taxes to pay for additional spending. so they offer, how about ten to one. that's their request to see if you'll walk down the alley with them. if you walk down the darkened alley with them you don't come out with anything. this is just a question. are you stupid enough to engaging a negotiation that you know you'll be lied to and taken
advantage of. they cheated reagan in '83. another three to one promise. they cheated bush sr. two to one promise. the offer of why don't we have some tax increases and some spending cuts is really an offer let's focus on tax increases and spending cuts evaporate during those notice,s. only when you say tax increases are off the table completely do we make progress as we did in 2011 and won a ten year cap on spending. >> have you read the conservative part yet? >> arthur brooks is brilliant and his work should be read by all conservatives. >> they use you as the poster child for the kind of conservative that he says we need or the conservatives need to have a way of -- when you associate compassion with conservative it's not like people don't go wow i never thought of that.
it should be ingrained in the notion of conservative since it, you know, it is the system that raises the most people out of poverty usually. >> letting people run their own lives, their economic lives, their personal lives, their faith lives is treating them with respect. anything else shows contempt for people. >> right. but unfortunately the left has been winning that argument because they can use the hard hearted, oh, you're a darwinian, you want to leave people out on the streets. got to be a different way because it's not working the other way. anyway, i paid andrew to read one of arthur's books. i made the mistake of offering him a dollar a page. then appendix was like 40 pages long. >> i took payment for the entire thing. i read every page. >> did you tread appendix. >> every single page. i should have taken a dollar a word. >> it was torture for him to
read it. >> i love arthur. >> the message is being lost. thank you, grover. >> take care, guys. >> coming up the hearth trend picking up steam, doctors on demand. the ceo from maven health joins us next. that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks,
welcome back to box this morning. it's the rise of the digital doctor according to market research telehealth revenues are expected to increase 45% hitting $585 million by year end. catherine rider is the founder and ceo of maven first digital clinic for women. good morning. how about understand what's going on here. i have yet to use the equivalent of face time or skype to see my doctor but that's what's going on. >> exactly. at maven we have a network of women and family health providers. people are using us all the time. >> how many doctors do you have on your network >> about 450. >> if i wanted to make -- i wouldn't because i'm a male. >> we have a few guys. >> if i wanted to make an
appointment how i do do it. how quickly can i see them. >> you download the app. then you would, you know, search what provider you wanted. first tell us why you're seeing a doctor whether it's for nutrition or general health. then we would show you the next available provider. oftentimes they are available within ten minutes and you just book. >> how much does an appointment cost? similar cost to seeing in person. >> one of the things that we're doing we connect with you a nurse practitioner. that is $18 for ten minutes. you can get a prescription. it's cheaper than a co-pay. >> now you get a prescription without physically seeing you. >> yes. >> what about things like taking your temperature or blood pressure all things that often happen physically? >> either usually you would go in, statistic the industry uses 70% of doctor's appointments can be avoided if you get the right information or get a prescription. >> insurance covers this or no
>> no right at the moment it's out of pocket. >> do you imagine insurance will begin covering this? >> one day. we also sell to employers. so in that sense, you know, your employer would cover. >> so in new york city i would argue i don't know if they are the best doctors but what people who are perceived to be the best doctors in new york don't take insurance. i imagine they would not ever want to be on a service like this because they are able to turn over their services every 15 minutes for like $500 or $600. new york has its own weird market. but can you actually attract the best practitioners whether they are nurse practitioners or doctors to a service like this. >> yes. we have some really great doctor. we have a fertility doctor from cornell. by focusing on women's health and children's health we're mission driven. for that reason people are interested in doing it. i think most of our prices are
pegged to what people make. ob/gyns might take a slight pay cut but it's convenient. >> the focus on swem a differentating product than sherpa. >> most people don't know this women make 80% of health care decisions in the united states. we just thought to develop a product for them to personalize it and call it out. we have things like women's health physical therapist or mental health providers that specialize in postpartum depression. things that the system doesn't cover even in the off line context. for that reason we want to build trust with our customers and so by calling out women, i think -- >> andrew can't get on this. >> would you ever create a male version? >> maybe a cousin brand one day. >> clearly part of it is a branding issue. >> yeah. trust. i think we also found a lot of
female health care consumers prefer health care providers. 98% of our health care providers are women. >> just real quick for our audience is it all across the country? >> actually, we do prescriptions in five states and then rest, wellness is across the country. >> thanks for coming in this morning. maven. go check it out on itunes. >> this moaning's big movers. list of stocks to watch is next. at the top of the hour "squawk" market message. siegel joins us on the six week winning streak for u.s. stocks. i wanna see, i wanna see. longing. serendipity. what are the... chances. and good tidings to all. hang onto your antlers. it's the event you don't want to miss. it's the season of audi sales event. get up to a $2,500 bonus for highly qualified lessees on select audi models.
let's take a look at some stocks to watch this morning. priceline earned 25 to 35 a share for its latest quarter come fired estimates of 24 to 33. revenue was above with record hotel room bookings. the stock is under pressure on the outlook for the current quarter which was cautious and priceline ceo darren huston will be on "squawk on the street" later. hertz global missing estimates with profits of 49 cents per share. revenue was below estimates. rental giant said it did make progress in cutting costs and completing the integration of dollar thrifty. dish network came in three cents above estimates, 42 cents a share is what it earned for
third quarter. satellite tv saw average revenue peruser rise though turn rate increased. coming up new jersey governor chris christie demoted to the undercard in tomorrow's gop debate. there's a video of the candidate talking about addiction started to pick up a lot online. chris christie will join us at 8:30 a.m. eastern time. we'll be right back in a moment.
the bull run stocks on a six week winning streak but new data out of china could spark fears once again. >> the race for the white house. republican presidential hopeful chris christie is here. new jersey governor said he's ready to defwat big issues that matter the most to your money. >> and disappointed with your portfolio returns? device kos be to blame. why your smartphone could be making you a dumber investor. final hour of "squawk box" begins right now. >> announcer: live from the most powerful city in the world, new york. this is "squawk box". welcome back to "squawk box" here on cnbc first in business
worldwide. i'm joe kernen along with andrew ross sorkin and kayla tausche sitting in for becky today. >> we've been on a year's long path of you pronouncing that correctly. >> it only took two or three years. >> only. >> good german name. we're less than 90 minutes away from the opening bell on wall street, the futures right now are right where they were all morning down 40 points on the dow, down six and change on the s&p down 16 on the nasdaq. mixed session in asia overnight but stocks in china and japan hit their highest level in two months. other regional boards dropped in part new to data showing china's imports and exports both shrunk hat move. matters are indicating to be -- actually they are trading down fractionally across the board in germany, france. we still have greece because we
just never know. >> get a little bit of grain on the board. >> they kicked the can drund. why take it off. >> we haven't taken it off. a week or two ago michele was here. i don't think you were here. we commented that -- >> put it back for me. >> okay. why not leave it there. it's not fixed. >> she actually said, by the way, in a couple of months they would have to be replaced. meantime we'll leave it there. worth watching. we'll tell you about some other stories worth watching this morning. weyerhauser is buying up plum creek timber. it's a $8.4 billion transaction. they will keep the weyerhauser name and manage 13 million of timberland. and dupont names edward breen as chairman/ceo. he's the man with the scalpel.
he likes to do breakups. unclear how long dupont will remain. match.com offers its plans for an ipo. setting the range for 33.3 million shares at $12 to $14 a share. there are a few stocks on the move this morning. shares of yahoo! keep an eye on these. yahoo! has hired consulting firm mckenzie to consider a reorganization of the company. tweet says ceo has demand ad pledge by executives to remain with the company. of course an executive diaspara has been plaguing the company. yahoo! stocks looks to be up by one half of 1%. berkshire hathaway came in above estimates. i want saw lower profits in its core business but results were
boosted by gains related to the merger between heinz and kraft foods where buffett had a large ste stake. oil and gas company apache rejected a takeover deal from a third-party. it is said to be working with goldman sachs on a defense plan but we've been talking about how the low price in oil would be spurring a lot of m and a. we haven't seen a level of activity people expected. perhaps there's some companies being opportunistic. >> or wait for the real distress to happen. >> let's talk about other tech news. snap chat daily views tripled to 6 billion. last week facebook said it had doubled daily views since april to 8 billion. i still can't get my snap chat to work. i can't get to it work. maybe i'm behind the times. i don't understand how to use
it. photo sharing site pinterest will allow viewers to be more visual. >> who writes the algorithms for that. let's get more on the market action in the week ahead. on wall street after friday's robust jobs report larry fwlazer portfolio manager at mayflower advisory and jeremy siegel finance ad voicer at wharton business school and our market master, we should have ignored august, sep and october once again, jeremy. >> yep. you know what? i was on your state of ohio said there was going to be a correction early in august and 10% to 15% we had it. we bounced back even faster than i thought we would. i like what happened. i think the move on the labor
market report, i think -- listen we want to clear the air. we want to get that first hike in and show the world that it's not going to end because we have a quarter point on fed funds. i think the closer we get to that day the clearer it will be for the market going forward in 2016. >> it could be that we're different than everyone else because you hear everyone else tried to raise too early and it didn't stick. we've waited so long. maybe we really have waited -- do you think so, larry? >> if we waited too long we would see the long rate rising more. saying hey guys you'll have more inflation in the future. it's been very well-behaved. it is time to raise. the unemployment rate hit 5, unemployment dropped below 10. wages are at a six year high. >> joe, it's interesting the street was off guard and out to
lunch with respect to friday's jobs report. this rate hike was the most anticipated decision coming up in a generation. but it is as overdue as we go bananas. the fed should clearly have raised rates a long time ago and because of that the conventional wisdom may be wrong but may be dangerous. if you think the fed will raise rates there's certain sectors you want to buy and certain sectors you want to avoid. in this case that logic may not hold true. not only because the fed is late to the game but the smart money has made their decisions. look at the move 2019 year treasury. that move has happened. look at the selloff in utilities. that move has happened. selloff in gold and commodities. those moves have been priced in. the danger here is you get this 1,000 point rally but no improvement in fundamentals, earnings, outlook for these companies and the head wind for these companies has been that
strong dollar and that strong dollar is likely to be exacerbated by this fed decision. i think we want to be really thoughtful how we approach 2016 here. that doesn't mean there aren't opportunities but i think you don't want to run with the herd in the conventional wisdom our you'll get trampled and stampede by that herd. >> up just said everything was ahead of the move itself. i thought you were going to argue that the dollar was already peaking then. you said everything else is already factored in. the dollar will keep getting stronger. that's illegal l-- illogical. >> 2016, for get the dollar look at that shanghai express. look at those emerging markets. >> if it's not in the market the dollar goes up. you can't pick which are in the market. >> good point. it is in the market. it is in the market. you want is still a head wind for corporate earnings because companies are a bunch of whiners
and are complaining that's the problem. i want is in the market. it is in the market and the dollar will revert and the dollar will get back to where it belongs. those emerging market currencies will have their day. not at year end. there's above average of technical factors. 2016 that's a very different story. position for 2016. lots of opportunities to buy what gets hit at year end because of what's in the market. because of those technical factors. >> so jeremy will 2016 be the year that we start this bull gets long in the tooth? >> well, you know, it is true that -- earnings have been disappointing this year, the dollar and energy have not probably 13 dollars off the s&p. we need earnings increase for next year and the market is expecting it and i think once we get this, you know, increase out of the way, you know, 20 k on
the dow i think is a real possibility for 2016. i think that, you know, again i think that the dollar is as high as it will go. may go a little bit higher. we have stability in those commodity and oil prices. we're not going to have a repeat of another $13. in fact i think we'll have a good $8 to $10 increase and propel the market when you don't have a fear the fed will move maybe two or three times 2016 that's not going disturb stocks. >> larry, you said don't look for much for the rest of the year. are you bearish for 2016 or do you like the prospect? >> i like the prospects of 2016. i think the prospects will be different than what we have right now. you don't want to follow that knee jerk reaction to what the fed is doing. anything is possible. the fed wants to appear independent. they may act in an unconventional way.
you don't get the wheels falling off the wagon. so i'll go with that history. i want to be appreciative of the fact that you're more likely to see global stimulus and even with respect to china which was the big wild card, china looks like it's transitioning from a manufacturing to service based economy. maybe we see the fruits of that labor bear out in 2016. take advantage of the weakness in a handful of sectors. take advantage of political silly season. but continue to follow the consensus. >> thank you larry. and jeremy. big win last night. congratulations. >> yeah. >> happy for you. >> feel better. in o.t.. >> see you later. >> did you google anything today? >> did i google anything today? >> yeah. >> specifically? >> hedy lamar's 101st birthday. >> did you know about her? >> no. >> great actress. famous. also an inventor that helped the
allies get around certain radio issues in the '40s and invented. >> like a hacker. >> things we use in wi-fi and all this stuff a lot of it traces back to some of these inventions this actress made. frequency hopping. and spread spectrum. >> hedy lamar. >> you know what her name was. headwig. >> on broadway, right? >> all right. >> why are you laughing. >> coming up when we return now. we'll talk eating organic because it's gone mainstream. now that these foods are available from your local grocer to walmart some traditional names in that space getting hit hart. ceo of sprouts farmers market joins us next. check out the price of oil. stay tuned you're watching "squawk box" on cnbc first in business worldwide.
spilling oil and the leak has been plugged. 35 homes were evacuated as a precaution. no one was reported injured and this was the wisconsin rail second derailment in two days. bnsf freight train derailed on saturday spilling ethanol. >> organic food sales in the u.s. are now on the rise. usda says consumers spent $5.5 billion on organic products. pioneers in the trend taking a hit as mainstream retailers like walmart and kroger pushed deep near to this space. strikeouts farmers market looking to stand out in the crowd, targeting the average shopper for fresh food options. stock is down 30%. let's bring in the ceo of sprouts farmers market. good morning to you. >> good morning, guys. >> you obviously have grown tremendously, the stock, those has been down this year because of the competition that we just spoke about.
can you still be -- can you still specialize in this space? is there a specialty rather to be had given that walmart is now here? >> sure. you know two of the biggest thing that we hear from consumers is that eating healthy is too expensive and i don't know where to start. we take that away with our prices as well as when you walk into our stores you don't have to worry about feeding your family healthy because over 90% of our stores are natural and organic. this is a huge issue we don't here. unless you're on a warren buffett happy diet this is the place to come. >> but in terms of pricing you're ability to compete against a walmart that now effectively playing in what's exactly your space. >> yeah. what we see is consumers have a lot of questions. besiesds carrying the product we have knowledgeable service in our stores. when people come in they have small questions and more complicated questions and we focus a lot on training our team
members and that's makes a difference. we're hearing more and more companies who are carrying the product, the items are going back off the shelf into the warehouses. so it does require a lot of specialization. we don't see that trend. our stores are up 40% in the last five years. >> you were the cfo of this company for several years but you just inhearted the ceo role in august of this year. you said you would invest in technology and wages. when you see such a fractured landscape where growth seems to be falling for some of these niche players what do you do to reinvest the business to buttress your same store sales. >> here's the simple context. there's 40,000 conventional retailers in america and about 3,000 specialty retailers. i've traveled a lot in the last two months in 20 states and what i see is the following. those that have scale and are focused on the consumer or those
who are different shade are winning. we could probably together walk into a store and within three to five seconds i could tell you whether it's a positive or negative comping store. the shares coming from those who aren't focused on the customer and looking in different shading and carrying new products. >> what do you do when you walk into a store and you say this is a negative comp store. how quickly can you turn it around? >> i'm talking about other retailers. strikeouts is fortunate. we've come off two years of 10% comp. this year we had 6% comping stores. i'm talking about conventionals who can't keep up. their stores are tired. carrying the same products they were carrying 250i7bin the '80s '90s. >> what do you make, those whole
foods reported worse than expected decline same store sales. what does that say about your space or does it? >> sure. i think what it says is that, you know, there's democratization of healthy living. years ago healthy living wasn't infomercial. today it's becoming more mainstream. where we place our stores, the way we toys our customers. simplicity how we bring fruits. well trained team members. those are the things that drive differentiation in the space today. you can't carry the product and expect it to move. >> thank you. appreciate it. great to see you this morning. >> thank you, guys. >> coming up a big weekend at the box office. james bond and snoopy at the top. then later on presidential hopeful chris christie is here. he's making a big push in new hampshire. all that when "squawk box" returns.
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♪ is there anybody in there welcome back to "squawk box" right here on cnbc. you can see what goes on during commercial breaks. we should tell you what's going on in the movie business. the latest james bond movie "specter" took $83 million. "specter" cost $250 million alone to produce. when you throw in the marketing dollars, you got to make over -- >> $650 million just to call yourself even. the peanuts movie took second place. fox's animated film cost around $100 mill. john lennon's long lost guitar sold at auction. went missing after a beatles performance in london. didn't resurface until decades longer. san diego resident purchased the gibson guitar for $175 at a
local music shop without realizing its history. the winning bid $2.1 million. and shopping center visitors in sugarland, texas spot ad 12-foot alligator in the parking lot and of course they notified police. officers called in gator hunter who is a dental assistant who is licensed by state to hand tell large reptiles. they tied up the alligator and used a fork lift to load him in a truck for delivery to a nearby sanc turn ary. the alligator weighed in at 800 pounds. >> it escaped from something? >> unbelievable image. >> where did it come from? >> do you know it's 50? >> maybe because of all the rain. >> how do they know? >> coming up, when we return, you're not going believe this. new jersey governor chris christie will be right here picking up traction online with a speech about drug addiction
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♪ ♪ take it off ♪ take it in ♪ take all the thoughts we've been ♪ ♪ hesitate ♪ appreciate you can never recreate a song ♪ ♪ make it welcome back to "squawk box" on cnbc. let's look at stocks to watch. valeant pharmaceutical will hold another conference call tomorrow. it plans to give an update to transition from specialty pharmacy filador. filador is shutting down. the stock is down 33% in the last year although getting a little bit of a bump this morning on that news. drugmaker perrigo has issued a
letter to reject a bid from mylan. perrigo is just up slightly in pre-market trading. and dean foods beating estimates. the milk processor were helped by higher prices and gave an upbeat full year forecast and that will help the stock up 10% this morning. u.s. equity futures have been in negative territory albeit slightly so for the majority of the morning. dow down 37 points. s&p down by six, nasdaq down by 12. >> gop candidates crisscrossing new hampshire in an effort gain support ahead of the primary including our next step spent a great deal of time in the granite state. new jersey governor chris christie, with every debate comes with all the nuances, all the swirling around.
do we call at any time undercard. >> call it whatever you want. i have to tell the truth. obviously we would rather not have it happen but it's up to me now. it's up to me to go out and perform and talk about issues people care about. the next day i'll be back in iowa and working in places where it matters the most. it's in iowa and new hampshire. >> eight or nine debates. correct me if i'm wrong in the old days wasn't it pressing the flesh and kissing the babies and having breakfast at the diners. isn't that the way campaigns used to be. >> still the way it's done. still the way it's done. debates are a moment in time. if you look at people who have done well in the debates, it's like a sugar high. you get a bump and a couple of weeks later most of the bump goes away. what's sustained is the foundation you're laying in the two early states. nobody in that office building in manhattan is going to winnow
the field. >> do you think that the gop -- i watched it. they overplayed that hand the whining. they want wrestling ball and glenn beck. they want an anderson cooper debate where he asks hillary clinton how you do it so well. >> it's not my nature. i gave my observations afterwards and made them very specific. listen i thought john harwood was unfair. my point is that i made it specific. my point is stop. because if you can't handle that on that stage -- >> you gave obama the opportunity to say as if -- >> he copied me. >> right. but then to say how are they going handle putin and how are they going isis maybe he can lead republicans directions how to handle putin because he's been so effective. >> incredibly effective. so ironic seeing the president
being the arm chair quarterback. the arm chair quarterback while he is the quarterback. that's the problem. he's an arm chair quarterback while he's actually got the ball in his hand. >> you did say over the weekend that getting demosted from the main debate was a raw deal. your backers have given you more money. how much were you table raise? >> we'll disclose that at the right time. we were pleasantly surprised by the fact that people thought it was a raw deal decided to express their, express their displeasure by it by going online and donating more money. >> speak to this, though. the poll numbers aren't great. that's why you're on the card where you are. what is it that you have to do that you don't think you have done thus far to connect to those people? >> nothing. this is a national poll which doesn't matter. it doesn't matter. we don't have a national primary, andrew. we start in iowa and new hampshire. and in new hampshire i'm now 8% and quadrupled my standing.
in iowa i'm at 3% tripled our standing. if we had a national primary i would be concerned. we don't. so from my perspective there's nothing different i have to do. i have to get network. you work hard. >> one of the things you have done in the past couple of days is create a viral sensation, if ewell online with a individual offyou speaking about this issue of trying to move people who have drug abuse problems rather than putting them in jail and into rehab. how much do you have to do that over and over and over again at this point? >> i don't know. >> how natural -- >> we didn't do it. that was me speaking at the beginning of october in a town meeting where the "huffington post" there was. they videoed that and put it up last friday. in a week it got over 7 million views. it's not something we created. it's my words and my performance. i think that's what people want.
they want somebody who will directly speak to tissues they care about. there's not a family out there watching today that has not had their family or a close friend touched by drug addiction. and they understand it's a huge issue and we have to approach it differently. as a former prosecutor i'm saying we have to do it differently. >> are you surprised it's resonated the way it has in 72 hours. >> you wouldn't be honest if you say you weren't surprised. that's almost as much as my one bad dancing with jimmy fallon. >> the keystone pipeline the white house rejecting years long debate. people in the oil market say if we get a republican in the white house maybe they could appeal that decision, they could bring it back on the table. do you agree. do you think the performance of the labor market and supply gut in oil made it easier to make that decision. >> the president salad cal liberal environmentalist. he's never going to approve this
ever. he delayed it long enough because he knows it's politically popular to build the pipeline. he got himself past his re-election. got pasted the mid-term elections and then decided to do this. no one of thought he would approve this pipeline. if i'm president of the united states we would talk to canada and build the pipeline. >> governor, i asked grover norquist have you read the book by arthur brooks. >> arthur has been very generous make being sure we have one. >> because i saw today a majority of americans don't like capitalism. that's the latest. i'm not surprised given the coverage by mainstream media of hard hearted capitalists and their efforts to leave everyone behind and enrich the 1%. all the tax plans of the republicans need to be explained in a way that shows, i think, that we've tried redistribution for seven years. and we see 75% of the country thinks we're going in the wrong direction. the poor are worse off.
adding more people to government assistance programs and saying wow don't i feel virtuous, i added tens of millions of people to the food stamps. i've covered all these additional people. less people being covered is what we're trying to do isn't it? to get jobs and earn success and dignity of work. how are republicans going explain without looking like hard hearted, the guy -- what's the guy's name in "it's a wonderful life," mr. potter. >> listen you have to people able to speak from the heart. you have to have some personal experience. the fact is that, you know, i've seen over the course of my life, i grew up in a middle class family where, you know, my parents at times really struggled. i took a lot of student debt on because my parents didn't have known pay for my college education. for folks who have had that experience you don't need a
tutorial or a book to tell you about how hard it is out there right now for america's middle class. you're right. seven years of obama and clinton economic policies has not made it better. >> the hard numbers here because we did have the jobs report on friday. there's more jobs created in the private market, private market jobs under president obama for better or worse, than under bush by like 12.5 million people. i don't understand the debate we're having because the numbers don't bear out what you're talking about. >> you don't want to talk about the terrible income inequality. things are now good? >> no. inequality is a real issue. i'm not saying it's not. it's very difficult to sit here and have this conversation and say everything -- >> it's just the 1% that has done well? >> the investor class has done better under this president. >> are people left behind doing well or not?
is the american dream still alive? >> arguably under obama more -- >> okay. >> private-sector jobs -- >> okay. >> have been under president bush before. >> aren't there still fewer jobs than at the height, the net net. you pick -- >> we did cross that threshold. >> when he the great recession. everybody is out of work. there's going be a lot of job creation. >> numbers are out. >> here's the thing -- >> it's not a political issue. >> yes, you are. >> you can pick whatever you want. gdp growth last quarter was 1.5%. you want to take a run around 6th avenue and celebrate 1.5% gdp growth. if you are a family that didn't have your wages go up in 15 years. income inequality has gotten worse under him than president bush. worse. the fact is that for middle
class families out there, jobs created are part time jobs. why? because obamacare, you know, people say, you say the president created more jobs. you know who knows that? middle class america has three or four of them to keep a roof over their head. you think 2%, 2.5% growth is economic success, economic titan then i don't buy that. >> governor, i was talking about something else. governor, how were you going to propose lowering taxes on anyone. if you've got the people that are paying taxes any type of tax cut if you want to do subchapter s anything do you obviously the people that are paying the taxes are going to get the lion's share of tax cuts and you'll be on the cover of "huffington post" for giving tax cuts to the people who don't need it. people listen to this and don't buy this argument. >> the way you do it, what folks feel in this country is that the tax system is rigged for the rich. that's what they feel.
you know why they feel that? they are right. what you do is you get rid of the loopholes and deductions except two. mortgage detucktion and charitable deduction. if do you that and lower rates 28, 12 and 8 which is what i propose everybody pays less in taxes. you won't need an accountant to do your taxes. and the other thing the rich aren't getting any special benefit. you'll feel as if the system was fair. >> maybe it was gridlocked congress. that did all the job creation. >> i'll make a different argument. i would give more credit to ben bernanke for -- >> why don't you say -- >> for better or worse we have these debates where we decide if you become president, governor, you'll get credit or blame if the economy doesn't work the way it's supposed to. >> we're not debating income inequality. >> that's the responsibility of
being president. you get credit for things that maybe you don't deserve credit for and you get blamed for things you shouldn't be blamed for. that's leadership. i watch around the world today. when you see what's going on in syria, in the rest of the middle east. we have a president who believes that global leadership should be about climate change. it's a joke. we have a quarter of million people being slauktered in syria, millions running for their lives and all this guy wants to talk about is climate change. guess what those syrians are not worried about climate change. >> when do we get to the point in the election cycle and candidates get credit. >> when people start to vote. in november of 2007 rudy giuliani and hillary clinton were ahead in the polls. in 2011 it was herman cain. i don't think any of those three
turned out to be nominees of their parties. what will happen as the weather gets colder and people in iowa and new hampshire decide, okay, now it's time to laser in even if cuss who should be the president of the united states you'll see that process happen and see demands on folks. you're seeing with it dr. carson now. people are now starting to scrutinize that story and starting to scrutinize what he's saying. by the way, i'm fine with that. we have to be responsible for our personal stories. if we put our personal story out there we have to be responsible for backing it up. it's nobody else's burden of prove. if i say something happened in my life i better be table prove it. >> are the american people alive and well. is the american dream alive and well? >> i said there are two american dreams. one american dream -- >> for rich people. mark zuckerberg that start in a garage and that dream is very much. >> things are good? >> the other american dream is a challenged dream. i don't know if it's a
historical aberration. >> the economy is good. >> no. >> income inequality. >> there's all sorts of issues. the one point i was trying to make in the context of what you were talking about in job creation is actually on pure numbers basis -- >> you can use the stock market. that's done well under obama too. >> i know the governor doesn't believe it -- >> you definitely don't believe it. >> let me say i believe you. i believe you were trying to make a contrary argument not a political argument. you got to admit many of those jobs was part time jobs. i've spoken to employers out on new hampshire and iowa. they say when we get close to the obamacare number we stop hiring. we make them contractors. >> we never had the kind of recovery from the depth much recess we should have had. >> the facts show it's the worst
recovery since world war ii. now i think we got to do better and if we don't do better imagine when the fed starts to raise the rates. imagine what it's going to do to the payment on the national debt that this president has run up more debt than all of his predecessor combined. that's stunning. it's stunning to have someone who has run up more debt in his seven years than all of his predecessors combined from george washington to george w. bush. >> in spite of this horrible congress he's added more jobs than bush clain. >> i agree with you. it is a horrible congress. >> thank you, sir. >> thanks andrew. >> coming up, a new study warns trading on the go may make you a bad investor. find out why and how you can be cured up next. with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve.
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. the days of having a call your broker just to make trade have long been over bath flood of new apps are making it morven to manage your money. as simple as tapping a few buttons. new report is warning you to keep investing apps off your smartphone and smart watch. the reason it might be making you a not so smart investor. let's bring in the man behind the research, behavioral economist and professor at ucla. it's great to have you. you wrote a spro voluntary okaytive piece where you say you should only check your portfolio every few years. we knew that advice existed before. why do you think the digital age has made that more difficult?
>> sure. we've always been obsessed with short term losses. but now where we have a phone beep every day or smart watches beep every few minutes, we're going to be even more obsessed with short term losses. we might panic when the markets crash next time. it's monday morning, i don't know what will happen this week but who knows. what could happen is more people will actually end up buying high and selling low because they are going to be overly obsessed with short term losses which they get to observe a lot more on their smartphones, smart watches. >> is there data that investors are actually acting on these knee jerk reactions? >> we do have research in the laboratory setting, mostly before kind of the internet age. that the more information you give people the less money they tend to make, actually.
i'm concerned that by the time we learn how actually smartphones affect our investments, and market bubbles and crashes it might be a bit too late. >> in these digital companies they have humans in house that make recommendations that tell you what the best practices for the product and i'm wondering even if there's an income differential between maybe a traditional brokerage house and these investing apps you talk of, if it's up to the apps itself and products to tell investors when is a good time to trade and when is a bad time to trade. >> i definitely don't think the apps should say that. i think most people should actually stick to the long term plan. i'm concerned that the buzzing phone especially with social networks like facebook, linkedin would make people follow it more often than not. with respect to financial
advisors and brokers we have to remember two things. when markets collapse some of the damage we might get paralyzed as well. in addition, a typical adviser might have hundreds of clients. it'sclients. it's very difficult to call all of them to tell them to keep the long-term plan. while older funs are buzzing, smart watches are beeping on their wrists. >> your advice is to hide stock market apps on smartphones and avoid that buzzing sound on your smart watch or other device. is there an app? is there a program of these that you think is best in class that allows investors to shoulder less risk than they maybe would otherwise? >> two things. one, ironically you can't actually delete the native stock app from your iphone. i suggest putting it in another folder so you don't have to see. but there are some financial
institutions out there that try to help people by highlighting what is your projected income, let's say, in retirement, but letting you focus on the long ones, your goals, as opposed to how much the market has gone up and down today. having said that, it's still the case for example that most 401(k) statements focus on short-term gains and losses. >> right. not on your long-term prospect of comfortable retirement. >> buy and hold is the best investing strategy if you're in the stock market. appreciate you waking up early. >> thank you. sclomo benartzi. when we return, jim cramer will talk to us when we return from break. look at some of the guests who will be joining us on "squawk" later this week from the fast company innovation fest,.
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lives after that jobs number, jim. that definitely had to silence some of the people that think we're going into some type of slow patch here. if the rest of the world comes around a bit, we ought to be in a position to have some better economic growth. >> yeah, i totally agree. i think that -- look, i know there are industries that will be hurt. autos will be hurt, housing will be hurt. the fed will raise. maybe the fed raises in december or another time quickly. i think that the cycle will be a strong cycle. i do believe that there is labor inflation throughout the system and they want to stop that. i know if they feel like the rest of the world slows down dramatically, they won't go for three or four next year. december is a done deal. and i knows there a lot of time between now and then. that number is way too strong. this is their window. they won't miss this window. >> let's say oil and dollar stay where they are. will we be able to grow earnings in the first quarter of 2016.
>> i think the dollar skyrockets. i think it goes through 100 for the euro. it's not the issue about growing earnings. i don't think they care at all. the only companies that will do well in this environment are financials. particularly the banks. banks will do exceedingly well. almost everybody else important. i would say healthcare would do well. but we're in an election year and democrats won't stop attacking it. and republicans won't say we favor drug companies and healthcare spending. so there's a narrow area that will work if that number was bad for most stocks what can i say? most stocks and managers are positioned in healthcare, in the industrials. those two areas do the worst. underweighted in the banks, those positions do the best. >> all right. you think -- if tony romo had been in the last four, five games, do you think they would have won most of those? >> i do i think they would have won every one. they're done. nobody has ever come back from 2-6. no one. not in the history of the nfl.
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posting better than expected results. a cautious forecast has the stock under pressure. and priceline's ceo darren houston will join "squawk on the street" at 10:00 eastern. andrew, huge thank you. >> you're welcome. >> kayla, thank you. >> thank you. >> "squawk on the street" begins right now. ♪ >> good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. six weeks of gains for the market, first time that's happened all year. q4 shaping up to be the strongest quarter in at least a couple years. pre-markets soft ahead of a light week. china up overnight despite disappointing trade data. we will watch