plus, apple warning that covid rules in china are hurting iphone production. now more worries it could take more than a month to get the high end models it is monday, november 7th that's right tomorrow "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. as joe mentioned, u.s. equities are higher the dow futures up 165 points. s&p futures up 20. nasdaq up by 56. of course, this comes after a pretty tough week. despite friday's gains where all

three were up 1.25%. that did not do enough to erase the losses for the week, the nasdaq was down 5.5%. you saw losses across the board. s&p down 3.3%. dow off 1.4% that snapped four straight weeks of gains for all of the major averages jobs report was something. if you look at the treasury market, the 10-year treasury has come down. it is above 4.1% the to2-year treasury at 4.684. news overnight china's value of goods sold to the u.s. and eu fell by 3% that missed expectations for the increase of 4.3% first year over year drop since may of 2020. the biggest category declines is the export of household appliances toys falling 18% shoes falling nearly 11% the country's car exports did

surge by 60% in october. china imports falling by 7%. that missed expectation of growth of 1.1% you can take what you will from that. apple saying it is reduced iphone 14 production because of covid restrictions at the assembly plant in china. this is iphone 14 pro and max models it will ship fewer units and you will experience longer wait times. it continues to see strong demand on models in the note yesterday, the analyst saying it receives 30 days to receive the iphone pro foxconn is saying it is working to get production back on track offering a one-time bonus and 20% pay hike to returning

workers. i don't know how much of that news relates back to the report two weeks ago from the analyst who said production would be slowed on this very phone. whether that was suggesting the production was slowed because of covid or production slowed because not enough people are buying them. >> right it sounds more of a problem with production the demand was the thinking we thought a couple of weeks ago. if this takes a month to get it is already november 7th if you want your phone for christmas, put the order in now. >> we almost conflated a 20% drop inflation to iphone that did not happen. you need to be aware my lead story is facebook/meta has 87,000 employees. >> huge. >> think of which college team which has a stadium like that.

ohio state the ohio state university. think of that full what are those people doing? >> building a metaverse. >> i don't think it is 18 years. has it ever had a down year in employment they added -- facebook parent meta could begin layoffs as soon as wednesday expected to affect meany thousands of employees officials told to cancel non-essential travel the company declined to comment on the earnings call by mark zuckerberg most teams will stay flat or sink over the next year. facebook added 27,000 employees in 2020 and 2021 i guess you call it responding to increasing demand in the

pandemic and additional 15,000 in the first nine months of the year adding all everof those employe the stock is down 70%. >> microsoft is similar as well as alphabet. those are bigger businesses, but market cap wise a year ago, not bigger businesses. when you start to look through the revenue and everything else, you might have thought they were all comparable companies i'm not suggests they have the right number of employees, but all of these companies are bloated. they have a lot of people. >> that was part of the advantage. not having the cost structure. doing it without the cost structure of other companies >> yeah. if you compared it to similar market caps, now meta is down 7 70%. you wouldn't want --

>> we discovered with twitter. we find out if they did it right. twitter appears to have too many employees. hard to tell it looks like there may have been jack dorsey apologizing for overhiring at one point. it appears they have over-hired. it is possible they over-hired at alphabet and all these places the question is if they have done this across the economy we talk about the technology companies as if they are a special class. i think there is a possibility when it comes to the larger economy we talk about employment it is a recognition that you may be able to get away with less people and what happens? we will see. >> they could say things were going gang busters and we thought we needed them and we never knew this day would come they over-hired. the day is always coming.

>> they hired 40,000 people since the pandemic 2020 and 2021. meta hired 40,000 people since the pandemic started ramping up in a big way. based on the market caps that expanded if you grew based on the market cap thinking it would go -- >> you know how hard it is to diet isn't it a much better idea to always be thinking about things? instead of the crazy up and down if you just splurge and gorge and diet you are an example of that you've never been fat. >> the physical dieting i understand the other side of it is all of the companies are crazy growth companies. stripe is reducing work force by 15%. they over-hired. when you are in a growth mode, the venture capitalists are saying grow, grow, grow. that's the most important thing

you can possibly do. what do you do you hire people. you grow that's how this works. >> thinking of the fat bastard >> mike myers. >> i'll have a positive ebita. i'll be the conservative company and grow slower and stronger that's not the mentality for better or worse. in meantime, elon musk threatened permanent bans for people who impersonate other accounts that comes after celebrity users changed accounts to musk kathy griffin was suspended on sunday she changed her profile picture and name tweeting after discussion with the females in my life, i decided voting blue for their choice is only right

valerie bertinelli urged her followers to change their votes. i saw lots of things changing their picture to look like his. >> i saw one i thought was him joined for the self promotion. staying for the anti-semitism. >> it had a blue check mark. >> it said elon musk on it i thought -- originally when i saw this, i thought he was telling a joke or in his own p way. this is the problem. >> this is a clever example showing the problems of buying a check mark for $8. hope they will layer it with a verification process >> you saw him on friday i thought the point was he would verify people to acknowledge who everybody was. >> drown out the bots. >> also, you know, you would not

be anonymous the idea of not being anonymous. you can be anonymous, but somebody else. >> hopefully they police this. if you can impersonate somebody for $8 the point is bots are created for a penny and influence ortiz or do what they want hopefully it is not a case for $8 i'll pretend i'm anybody and get away with it until they catch you. >> i have a couple of tweets i'll blame on an impersonator. you don't. >> it was me >> no. you are mr. perfect on your twitter. never get mad. never take shots. >> i have self control on most days >> there are times and i have seen somewhere if i were you, i would be flaming mad

>> you would >> you want my list of names >> no. i hope we can all have a little bit self control twitter creates an environment where people don't have self control. >> it does i know i don't >> you don't have self control in the real world. >> i do. look at me in the meantime, put off the new verification until after election day it was supposed to start today we will see. we have stocks to watch. berkshire operating at 20% from a year ago berkshire with a net loss of 2$2.69 billion in the quarter this was a 2018 accounting change they have a large portfolio. all of those things need to be marked to show gains and losses. it has been a roller coaster ride in the markets.

the company saw gains in the insurance and investment income and utilities business insurance underwriting with a loss of $962 million railroad earnings dipped cash pile grew up from $3.6 billion from the prior quarter it revealed it just spent over $1 billion in share buybacks during the quarter that brings the nine month total to $5 billion in share buybacks. >> it's coming up, andrew. >> what is coming up >> this squawk planner among other things barry diller. barry diller let's talk about the planner earnings, inflation and election details. that's next. later, don't miss the interview with iac chairman barry diller he will be here at the table you are watching "squawk box"

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the powerball jackpot has grown to $1.9 billion. >> i want to say we bought we lost. >> very close. >> our sense of disappointment was real that's the hardest part. >> this close. robert frank joins us now with today's edition of frankly speaking just label that. look at that money the winner

will get to keep most of it, right? no >> nope. not most of it a fraction of it the winner will take openly less than a third of that amount, joe. not just because of taxes, but also because of the federal reserve. the official jackpot $1.9 billion is the total earnings of the lump sum if it were unvested in an annuity in 29 years. that is driven by interest rates. now rates are higher, the jackpot is hundreds of millions of dollars higher than a year ago off the same lump sum. the lump sum, of course, matters. that's what everyone takes the lump sum for this jackpot is $929 million there have been bigger lump sums in the past, but these higher rates right now, make this an all-time record. if there is a single winner, it would take the irs $223 million

of withholding and $121 million at tax time. some states also tax winnings. if you live in new york or new jersey, your total take home would be $485 million. in new york city, joe, $450 million. less than $1.9 billion still enough to buy a few issues >> i'd have to think about that. i would not make a lot of purchases. you are right. i don't know if i buy the net jet. i might buy a citation 10. they go 50,000 feet. 600 miles an hour. that's not in the cards the way things are going right now for

me i will cop to this i have never bought a lottery ticket ever >> me, either. >> i have never. >> we bought five. cost me $10. $2 a pop >> that is less than you spend >> i'm talking about him i'm surprised. >> the amount of conversation and dreaming that you can get for $10. >> what would you do, andrew you are so frugal. what would you do? >> we had lots of conversations about that over the weekend. as my wife would say, the sense of disappointment when you don't win is real. it is ridiculous you know you will not win. you sit there and looking at the numbers and screen did we have it >> the disappointment. i'm here today >> you admit you will not win. >> you know you're not going to win.

>> why do you -- >> 1 in 299 million chance in winning. >> when you round it down, no one wins >> you got to spend the weekend dreaming. >> it was fun you bet $5 on draft kings? >> on some i bet as much as $25 >> your chances are better of winning that >> did you check anything? >> we didn't get $1 or anything else we have done the scratch-off ones >> i had a three-way parlay. tampa bay. in the last minute, brady won. scored a touchdown with a minute to go. >> you can entertain yourself for $10 on the weekend. >> that was a push you know who it was against? the rams who i hate from last

year because of the bengals i would have won more. it softened the blow watch them gag. it was the worst thing i've seen to not win that game i'm laughing ha-ha. thanks to robert frank. coming up, get ready for a busy week on inflation nar ill talk to montana seto jon tester about the economy and the mid-term elections "squawk box" is coming right back this thing, it's making me get an ice bath again.

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lyft we will hear from dupont on wednesday and roblox on thursday and tapestry and astrazeneca and ralph lauren as well quiet day until thursday when we get the government read on inflation and consumer price index. the bond market is closed in observance of veterans day tune in to our coverage of "business on the ballot" tomorrow night at 7:00 p.m it is "squawk at night." >> what happened to your money your vote? >> i don't know. >> did we retire that? bullets over broadway? >> "business on the ballot." >> blue sky? >> joining us to talk about

business on the ballot and the jobs number on friday. greg branch. managing parter of veritas good morning to you. what happened on friday? what will happen this week at this point >> it's interesting. t i was thinking about this over the weekend. the fed is waiting for three things to happen before waving the flag that is we will see employment or unemployment reach some level that is intolerable. obviously that did not happen with the jobs number we will see a major contraction in the economy which obviously that didn't happen last quarter with 2.6% expansion or the inflation numbers come down. those are the triggers we are waiting to see the fed rethink the path pricingly, all saying the same thing for the last few months after july

the fed had a come to jesus thought about messaging and the forecast and what they will do thin the interesting thing from the economy, the consumer is thinking differently than the businesses and banks they are coming in and the expectations we brpreach dramatically we didn't have the average number of beats. the consumer spending when we heard ceos talk about spending especially restaurants and airlines and booking.com and open table, the consumer is still spending and banks are provisioning and companies are talking about layoffs and talking about acceleration and talking about the bunker the consumer is thinking in a different way. i say this because the spending we are doing is leverage

look at the credit cards we have had record openings. approaching $900 billion setting a record from 2014 it will be interesting to see when the consumer gets the message that businesses and the banks are sending. >> i have to say i'm not sure i understand which way you are suggesting this economy is really going you think it is about to turn down is that underneath wha argu arguing? >> i think it will be less robust and current estimates reflect. if you ask me yes, i side with jamie dimon. we will go in recession. i have been on record with that, andrew, for eight months now we are headed for recession. the banks are provisioning because we are heading for recession. companies are talking about laying off workers because we're heading for recession.

that's my view. >> down side risk at this point from the equity market >> i believe so. right now, if you asked me, i would say flat for next year which is s&p of 3600 there are many risks that could make that lower. we don't know how deep the recession will be in europe and other countries. we don't know what energy prices will look like for the season and embargo begins on russia we don't know in we will have a sovereign debt crisis with countries in europe somewhere an bought 150% debt-to-gdp. there are risks to make this low er if you had to put a gun to my head, i would say it is a flat year next year consensus is 6 p%. it will not be of 6% earnings growth. >> greg, we appreciate it. i hope you are wrong you may be right nice to see you. thanks. >> you, too, andrew.

thank you. when we come back, a potential healthcare deal in the works with some familiar names we have details right after this break. right now as we head to break, let's look at the biggest pre-market winners and losers in the s&p 500. meta platforms announcing layoffs this week. it is the top performer in the s&p 500. up 3.5%. we'll be right back. >> announcer: executive edge is sponsored by at&t business sponsored by at&t business at&t 5g is fast, reliabl but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. secure

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good morning welcome back to "squawk box." we are live from the nasdaq market site in times square. dow futures up 200 s&p up 24. nasdaq indicated up 65 a unit of walgreens is nearing a deal with summit health. according to the report that says the transaction would be worth $9 billion including debt. it cobbuld be announced today summit health is backed by the

private equity firm. joe? employees at the home depot store in philadelphia overwhelmingly rejecting the plan to become the retailers first to unionunionize the nlrb reported 51 workers voted in favor of the plan with 165 voting against it. the company and union organizers both have five days now to file objections. we have more fallout from the kyrie irving situation after he posted the link on social media. nike has now canceled the upcoming release of the kyrie shoe nike condemned any anti-semitism. irving had been suspended by the brooklyn nets for five games a lot of people calling on nike to do that

of course, the big question now is twofold the business question if you are the nets, do you bring him back? can he rehabilitate himself? >> they gave him a lot of chances. >> they did. secondly, nike if he comes back, will some other team with the nba and does nike take him back >> his deal was over with nike he was making $11 million on that it was a long-term deal he signed a long time ago with nike, it is a different situation than what you saw with ye kanye west this was a deal that was ending. my guess is they will not do it. kyrie irving did not play last year because of the refusal to get vaccinated >> the other question. if you are joe who owns the nets can you get out of the contract? do you have to pay him can you -- is there a morals clause or other kind of language

which allows you to say not only are you suspended, but you're out and we're not paying you can kyrie sue him? >> is interesting position all of the things is interesting. it is an ugly light. >> the whole durant mesas as well they are 4-6 that's not the issue, obviously. a lot swirling around with sports with all of these things. i have my own feelings for nike. i'm not a big nike fan in general. i don't have to go into it any further than that. all right. when we come back, we will talk about the biggest issues for the mid-term elections including energy prices. that's next. later, don't miss the

interview with iac chairman barry diller we have a lot to talk about with him. reminder for you you can tch ltewaorisn to us you can tchand lincolnn to us financial solutions will help you get there. as you plan, protect and retire. ♪

tomorrow is election day and there is a lot at stake for investors and voters alike joining us to talk about the midterms and how it impacts energy policy is heidi heitkamp. she is now founding board member of one country project and cnbc contributor. and carlos cambello. he is principal at public affairs firm and political analyst for cnbc heidi, you are a democrat, but somebody who comes to energy probably aligns more with republicans from time to time. you have seen the policies that

have happened here what will change if the republicans take over the house as is anticipated? it could also happen in the senate >> i love to tell you that the policies will change and that will get certainty and energy policy one thing we know will change is the dialogue there will be a louder voice for, i think, more certainty in policy if we continue to play the blame game on policy instead of addressing climate, but also addressing our energy needs and needs for low-cost energy and how we get there as i tell my friends on the left, given the reality poll, what is realistic in climate and how we achieve the goals together wouldn't that be a wonderful world if we live there you will hear rhetoric on both sides. i'm interested, i think, on what's going to happen in the lame duck in terms of permitting

reform i think that's a critical piece of legislation that needs to pass i hope they can get it together to do it. >> carlos, if the republicans take both chambers, will it be difficult with energy policy >> years of climate policy history in the u.s. congress it is remarkably bipartisan before the inflation reduction act. all of the climate wins had been done in a bipartisan manner. murkowski and manchin in 2020. the infrastructure bill did include significant climate provision. that got mcconnell's vote. republicans and democrats recently worked together to an men amend the protocol they worked together to phase

down hydro fleurocarbon. we might have more cooperations to reduce energy prices and secure energy security in the country and reduce pollution i'm more hopeful than most. >> what happened you think it is divided government that makes people work together and when you have everything going your way, you don't take time to talk to the other side or do things that are bipartisan >> that is exactly right look what happened last time republicans had unified control of the government? they worked on their own to reform the tax code of the united states. democrats with the united government the last couple years pursued the most ambitious liberal agenda in a generation by a democratic congress when the congress is divided, people keep their feet on the ground and focus on what's possible when it comes to energy and climate policy, that is a very good thing we want these policies to be dur durable. the policies passed with

bipartisan support have sdtandin power. those passed by one party, they get done away or the other party does away when they come into power sdp power. >> heidi, this idea of bipartisanship seems like a wonderful thing. things are so tribalistic. would they put something together knowing he would not sign on it and campaign on it? it is hard to think this is total gridlock >> when you look at bipartisanship can happen, it happens in the first two years of the president's term. the next two years, we will be miopically focused on the next president of the united states carlos is a great friend of mine and his argument of what we will see is rhetoric on permitting reform amending the national

environmental policy act there will be a ton of pro fossil rhetoric meant with anti-an anti-fossil rhetoric on the other side especially natural gas has to be part of the future i think it will require leadership who will step up on the republican side and lead that bipartisan effort? you know, everything that i see and the rhetoric i see tells us we're once again going to forego policy for politics. that's bad for the american consumer and bad for american business and bad business. >> carlos, i would say who is the democrat who steps up? i guess joe manchin would come to the table and try to work on things and promote energy independence and use the fossil fuels. the other thing is when you deal with inflation and high energy prices and questions of national

security, doesn't that all put a bigger focus on american independence and pressure to bring both sides together to get something done >> that's right. i think there is an opportunity to make some real progress here. you will see the same democrats, joe manchin and krysten sinema and others work with the ma jofr jority we need to focus on the solutions and not on the rhetoric as heidi said by the way, the rhetoric has come from both sides the administration's attacks on the u.s. oil and gas industry are misguided and major distraction. i'm hopeful that divided government, ironically, will focus more on how to solve this instead of the finger pointing >> i'll ask each of you quickly. what is the solution so we as voters can identify it carlos >> we need to invest more in negative emissions technology

and research and development and more innovation. we also need to figure out nuclear. nuclear can really unlock the clean energy future and help us reduce those emissions that will require research and development because traditional nuclear takes too long to build and requires too much investment up front new nuclear or modular nuclear could make a difference. >> heidi >> i think we need investment infrastructure we have energy, but we don't have infrastructure that works for america or globally. our climate problem is a global problem. we are burning more coal today than five years ago. that's the wrong direction it is the direction we're taking because we cannot move natural gas out of the country and we haven't built infrastructure for low emission and photofossil development. >> heidi and carlos, thank you both we will continue to look for solutions as we get through the

next couple months a programming note joe and andrew and i will host a two-hour special "business on the ballot" from 7:00 to 9:00 p.m. and coming up, ryanair the cfo will join us to talk about the airline. get the best of "squawk box" in the daily podcast follow squawk pod on your favorite podcast app listen anytime we're coming right back.

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countries and neil is going -- we'll see just how good he is at his job. let's start. name all 240 could you do that? >> dublin -- >> never mind. >> you might, actually, et cetera, et cetera i think we'll end with record bookings for the last month. >> absolutely. >> more than ever before. >> we've had our best bookings this summer. we were carrying about 16 million passengers a month we were doing half a million passengers a day, 3,000 flights a day. and we had 95 million passengers in the first half and increased our guidance on a full-year basis. that's 14% of where we were pre-covid.

we're growing really strongly. >> for some reason we're assuming there's going to be at least a -- maybe not a recession, or maybe a recession on the continent at some point given energy prices. you're not seeing that at all? >> if anything, the midterm breaks, the half term school breaks were better than we've seen he had 94% load factors. christmas is booking really well we increased our traffic targets for the year i think it's probably like most low cost producers, we have the lowest cost than anyone else what happens in a financial crisis, they trade down. they fly they still go away, but they fly with the lowest cost provider. very high employment in europe at the moment. wages are rising people have savings for being lockeddown for two years we're continuing to see huge demand for tickets.

>> that's the front page of the journal, andrew. shoppers trade down. they're not buying lululemon they're buying unique glow do you have any unique glow? >> i have some >> have you traded down? >> ithey're not buying nice bras they're going to target. so you're seeing -- you're the target of -- >> we're the reality, we're the ikea of the aviation world >> it's expensive to buy jet fuel, is it not. >> yeah, jet fuel is our single largest cost we're over 80% hedged at about $67 a barrel for this financial year that gives a massive financial blanket. >> so you do vani-- do you needr plane and is is that a problem >> boeing is having some

problems but we have 78 of the game changers we hope to have 124 of those by next summer. we were due to get 21 between september and december of this year i think they'll turn up 10 or 12 of them. but they have assured us that they'll catch up that in the spring we were hoping to have 51 additional aircraft by the end of april i think it will be by the end of june by this stage but we'll be able to grow to 185 million customers next year. but they have their customers. >> seattle is where they're -- they didn't move back to seattle, did they? >> the production line is there. >> the production line >> neil, you guys have played pretty rough with boeing a lot of the airline ceos come on and say, yeah, they're working with us. you guys play hardball and says management needs to be changed does that help in your negotiations with them >> we're very much what you see

is what you get. if we're not happy, we tell you we're not happy and we haven't been happy with the deliveries over the past year. >> are you happy now >> it makes sense to work with them we're giving them spare sppartso get our aircraft manufactured to us they have problems on the line we can see what's coming out of the factory, but they're working through it the key for us is to make sure we'll do whatever we have to do to get the aircraft delivered to us for next summer we want to grow to 225 million over the next four to five years. >> i was going to ask you about business travel. you have not captured business travel, exwe're starting to see layoffs and everything else. are you seeing that? >> yeah. we're seeing lots of corporates coming to us saying, we're getting back out, trying to get

our teams to meet each other, we would like to book with you guys and doing so and, again, we've been able to restore traffic where capacity has been out italy has pulled a huge amount out of the market. we're in the main airports from a business passenger perspective, we make lot more sense from our timings, locations and from our pricing. >> on the corporate customer -- >> the corporate customer will book closer in so, you know, it's a bit more expensive. they tend to buy things for fast track, they want to sit in a particular seat on the aircraft. we can yield manage that but the bread and butter is visiting friends and relations, huge christmas demand this year. >> what about labor? everybody is okay? >> we were quite unique. we took a decision at the start of covid not to let our people go we did negotiate pay reductions,

but we kept everybody current, and that meant when things ramped up this summer, we were fully crewed 73 extra aircraft in the fleet in fact, we're now recruiting for next summer for the 51 extra airport. we have 1,000 pilot cadets going through our training schools we'll be able to promote cadets and we'll be self-sufficient. >> you don't -- there's no airport in -- on that little island. >> i could maybe make an exception for you. >> i do not want to go there it's really too sad. but beautiful. >> it's gorgeous ireland is gorgeous. with the strong dollar, i'm sure we'll see lots of americans flying ryan air next summer. >> maybe i will go there's no golf course. >> i don't think so. we'll find you other golf courses. >> thanks. good to have you on. coming up, big hour, two hours ahead.

meta platforms planning widespread layoffs this week that stock is the biggest premarket gainer in the s&p 500.

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good morning a new week, a new round of tests

for investors. at the top of the list, the midterm elections. inflation data and corporate earnings first, microsoft, intel, snap and twitter now meta the facebook parent is the latest tech giant to be talking about big layoffs. plus, why covid lockdowns in china could impact whether you will be able to get a new iphone in time for the holidays the second hour of "squawk box" begins right now ♪ good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen and becky quick. take a look at u.s. equity futures at this hour the monday after that jobs report on friday, right now things look like they would open higher 170 points higher on the dow the nasdaq looking to open higher 47 points the s&p 500 up 20 points

let's show you treasuries and where they stand right now the ten-year note sitting just at about 4.138 the two-year at 4.684. take a look at oil right now wti crude, cost you 92.28. meanwhile, crypto moved a bit higher i think we're looking at bitcoin right now. we were over 21,000, we're down now about 20,734 meantime, palantir results just hitting the tape revenue topping consensus, up 22% year over year adjusted earnings coming in at 1 cent per share and the company is reaffirming its revenue guidance for the year the ceo writing the sustained increase in interest and orders for our software products comes not in spite but because of the current moment of austerity and tightening credit conditions there's an interesting line in the letter as well, a longtime

critic of silicon valley, the metaverse and other idiosyncratic per suits of the technocratic elite may be luxury goods but foundational data integration and analytical software is not. he's made those digs before to suggest that he believes that palantir is a more necessary version of what technology should be doing -- >> like essential instead of -- what did he say? >> elitist -- >> the pursuit of people -- >> luxury. >> let's get to dom chu, luxury, for viewers, with this morning's premarket viewers. >> i'm not sure if it's a luxury for viewers or not you mentioned palantir just crossing right now we've got shares of biontech down roughly 2% right now.

premarket, roughly around 30,000 shares of trading volume this is the germany-based biotech company most known for its covid-19 vaccines. it has better than expected profits and revenues it raised the bottom end of its previous full-year guidance. it was helped along by higher prices and then more demand for recent vaccines given the targeting of newer virus variants shares have moved lower by 3.5% and down a third of its value over the course of the past year you mentioned meta platforms in the context of palantir. we have those shares right now just about 3% higher premarket, roughly half a million shares of trading volume this is the parent company of facebook and instagram it could announce possible large-scale job cuts as soon as this week. that's according to a report of "the wall street journal," those job cuts come as meta grapples with losses from those metaverse ambitions as well as a bigger

pullback in advertising spending those cost-cutting moves driving the shares higher by 3%. we're going to end with shares of costco. the big box wholesaler not getting help from analysts at wells fargo who cut it to an equal weight rating from an overweight they cut the target price to 490. it was $600. they cited possible slowing of sales growth at existing store closes coinciding with the weakening consumer strength profile. those shares down one and a third percent. >> let's get to the broader markets right now, the strong jobs report on friday may not have been all that it was cracked up to be steve liesman joins us right now with some new analysis that suggests the fed may have gotten more of what it was after in the october jobs report. steve, good morning. >> good morning, becky some of it comes from your reporting. under the hood of the stronger

than expected jobs report, several analysts saw a bit of weakness, that suggests this may have been the last of the outsized payroll numbers that we get. here are some of the things that were pointed out slowest payroll gains since december 2020. there were signs that the key b backfilling may be coming to an end. the component of job growth driven by the rehiring of people let go during the pandemic is likely now fading. leisure and hospitality has been among the leading sector for job growth gained only 30,000 jobs the ceo of hyatt said labor was stabilizing in his industry. >> wage inflation is -- >> it's coming down. and positions are starting to get filled more quickly. two months of data is not -- does not a trend make. we have to be cautious about

that we could well be headed towards something that looks like stability in the labor market instead of this catch-up game that we were playing before. >> to be sure, the sector is still a million short of where it was and it's unclear if they're going to need to bring all of those jobs back but most forecasters see the job market slowing sharply bank of the west says we expect job growth to evaporate completely by next year. unemployed workers, we had 300,000 in the last report, they've been put back to work. further job cooling and moderating inflation will get a report on thursday that may let the fed stop a bit shorter of where markets have priced in. becky? >> i'm impressed by the fact that you're always watching and listening to everything, all of these ceos who come on are

talking ab-- i know you were trying to get answers out of steve zell, but you were interested in what he was telling us about just in terms of how much he had to pay to get cash around some of these -- >> yeah, yeah. >> there were a minus "a" rated company but they were still having to pay up pretty handedly in order to secure some capital and that -- that was something that you were looking for specific terms on. >> yeah, i thought that was fascinating. look, becky, despite some of the criticism i get, my head is not entirely in the clouds what i'm looking for in all cases is whether the theory, which is the ideas that are put forward and followed by the federal reserve, are showing up in the real economy. when a guy like sam zell, the first thing you heard was that it took him some time to negotiate the deal it means he shopped around, it wasn't clear to me -- i could

give sam a call and ask him this, whether or not he found knew financiers on this one that's part of the drag on the economy. and the interview that you did on friday, i'm listening to those guys they're the high end and you always, always want to be careful not to do too much with an anecdote like that they're able to pay more, both said they have programs to bring in people. you heard the guy from ryan air said he didn't let his people go getting that leisure and hospitality business back where it needs to be and the kind of interviews that you do with these ceos, that's key to seeing whether or not the macro concepts are taking place in the real economy and very, very slowly it's happening. the happening -- i keep seeing numbers like 100,000 a month on job growth that's how we would get there. >> thanks, steve new evidence of consumers trading down for the holidays. we'll bring you the details

next and then in the next hour, you don't want to miss our news maker of the morning, barry diller will join us live right on "squawk box." stay tuned don't go anywhere. >> announcer: "squawk box" is sponsored by bitwise the world's leader in crypto index funds.

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welcome back to "squawk box" this morning take a look at futures right now.

you're looking at the dow up 212 points the nasdaq also up by 64 points. the s&p 500 up about 25 points making headlines right now, a couple things, 72% of consumers plan to trade down to less expensive alternatives when holiday shopping this year that's a new survey from morning consult. inflation has been eating into disposable income. the national retail federation expects an increase in spending between 6 and 8% in the next two months compared to a 13.5% jump last year. when we come back, gene munster will join us to talk about meta job cuts and apple production issues. you're watching "squawk box" and this is cnbc >> announcer: this cnbc program >> announcer: this cnbc program is sponsored

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welcome back to "squawk box," everybody. we've been talking about two big tech stories this morning. first up, apple is warning customers that they may have to wait longer to get the iphone 14 pro because of covid

restrictions in china. apple say that is the facility which is operated by foxcon is running at significantly reduced capacity they expect lower shipments of the models than previously thought. "the wall street journal" reports that meta platforms is planning to announce significant layoffs this week that could involve thousands of workers joining us right now is gene munster, founder and managing partner. let's start with the meta story. when we looked earlier at the best performers in the s&p 500, the top performer was meta this is coming on ghoulish news that they're looking to chop employment to the tunes of potentially thousands. if you look into it, they were adding a lot of bodies since the pandemic started what happened? is this necessary? >> totally necessary and i think the action in the premarket speaks to the pain

point, the pressure point of investors around the meta story. recall when they reported their september results, the media reaction of the stock. it was up 8% on the dau and the revenue numbers and then it absolutely imploded when zuckerberg doubled down and said he would be increasing spending on the metaverse and i think that speaks to this issue around head count in this case, he's probably going to cut -- they haven't given the specific numbers, but it's probably 10%. which would be the largest head count of my of the big tech companies. far less than what twitter did this is a step in the right direction. in some ways, i'm a little bit surprised to see the stock reaction given zuk ckerberg tale about this he said that head count would remain flat a year from now. so what's essentially going on, becky, they are reducing head count by 10% and they will be adding head count within the metaverse. when you put all this together,

it's some welcome relief for meta investors loop being one of those investors. but it doesn't solve this show me part of the story it's good that they're showing some fiscal responsibility, but still the future of meta is going to be largely dependent upon the metaverse, whether that moves -- what direction that moves in. >> let me dig through that. he said that the metaverse employment will be increasing. is it a net cut of 10% and it's going to stand flat with 87,000 employees? >> the cut by 10% and then they'll start to hire back in reality labs when you put this together, they had this massive hiring binge in 2020, 2021 but they'll be flat at the end of 2023. for investors like ourselves, we want to see that head count number reducing in 2024 and just to put one further point on that, becky, is that we've

talked about this $10 billion in spending that is in large part, they're sticking to that 10 billion for reality labs. >> right, that number probably should be 5 million. >> let me just ask this. is the market potentially getting this wrong now did they get this wrong when zuckerberg talked on the conference call. if the journal is reporting basically the same stuff, just a different level of details and people are focusing on the layoffs instead of the additions that are going back, did it not make sense how the stock reacted when he spoke, or does it not make sense when the stock is up on the news. >> i think it probably should have been reacted better a couple weeks ago when he talked about some of the flattening i think that just -- the sheer volume of his words around the metaverse and continuing to spend on that drown out what was a logical approach to the overall head count and so this is -- this was essentially to be expected and, again, they're going to be basically flat a year from now

in terms of head count. >> i was shocked at the numbers. 42,000 of the employees have been added since the pandemic began. you doubled your workforce over that period of time. i guess maybe people should -- >> doubled the workforce revenue grew nicely too. it was growing 40% for a few quarters there yes, they clearly overbuilt here and even with these 10% reductions, it still doesn't get to where they need to be i would have felt -- i think the stock would be up more if they would give more specifics and more like a 20% head count reduction. he definitely wants more out of their employees too. i think that's another angle to this is that not only are they having head count reductions, but he's made comments recently about wanting 200% more out of existing people. in june he had comments saying that meta is not a place for everybody to work. if they don't want to put in the time and so i think you've really seen this company grow up when it comes to some of their fiscal

responsibilities >> let's talk a little bit about apple. it now sounds like they're admitting they're not going to be able to get the phones as quickly as possible for the 14 model at least just a couple weeks ago, we were talking about whether they would be slowing production because there wasn't enough demand what's the real story here is there too much demand not enough demand? too much production? not enough. >> they got the demand that's the good news it is surprising that they put out a press release related to this because there's been other covid shutdowns in the past which says that this particular shutdown is relate today the iphone phone models is more acute. they're having a tough time building them in a normal state. when you had a pandemic demand, it's increasing that but investors should take note this is going to have a negative impact on the december quarter it will probably have a positive impact on the march quarter.

the quick numbers are that if you assume that they're down production for a few weeks, that probably takes about t2 to 3% ou of the number. it takes about 3, 4 billion out of that. and most of that probably pushes into the march quarter they get it back there's a much bigger story going on beyond shutdowns at foxcon related to iphone production it did not come up from the analysts on the last apple earnings call. that's related to how apple is thinking about production in china and diversifying away from that and this is something that they produce on an annual basis they came out with their 2021 supplier list. we went through that and just give you the quick numbers here. about 60% of apple's revenue came from products produced in china in 2020. that dipped to 55% in 2021 and it's going to probably dip

below 50% of the 150 new additions for suppliers, 80% of those were from outside of china in 2021. apple gets it. they need to diversify outside of china it's really hard and when you have that, you have situations going on like we have today. >> let's also talk about elon musk and tesla in fact, here's what billionaire investor ron baron told us on "squawk box" on friday listen in. >> i think 2025, it's now 228, it's going to be 500 in eight or ten years, we ought to be somewhere around 4 1/2 trillion dollars now it's a $700 billion market cap. elon says he thinks it's going to be bigger than apple and saw d saudi aramco together? >> do you believe that

>> i see this as a 2 1/2 trillion dollar company long term, five years out i think that this -- the 4 1/2 trillion dollar is quite aggressive and i think it just -- there probably needs to be a little bit more rationalization. i think he has some very big expectations, both ron and elon, related to optimists, for example, reworking the global economy. the simple answer is, i think there's measurable upside to shares of tesla in the next few years. but that 4 1/2 trillion. there's another piece around this -- his concept he's been talking about this 4 1/2 trillion evaluation. what surprised me is during his interview with ron baron on friday, tesla shares started to decline as elon was talking about the opportunity longer term after hours trading, as elon was talking about that 4 1/2 trillion, i think investors are growing tired of some of elon's big expectations about valuation.

and it's -- it's not a show me story by any means but i'm on board i think this goes higher but it's worth noting, i think some of elon's ability to win investors over in the near term is waning. doesn't change anything longer term >> i was struck by elon's comment that he thought that ultimately, quote, running twitter would be a lot easier than running tesla or spacex in terms of just his -- the amount of time he was going to have to devote to it i actually think that twitter is a verycomplicated business given just the amount of attention that's on it all the time what did you think of that and do you think thathas any impac on being able to manage those other businesses >> i think it's going to be more work than he realizes. mark zuckerberg has given an example or the visual that running a social media company is like getting punched in the gut every time you wake up

there's so many dynamics around geopolitics and activist groups and content moderation that plays into that. it ultimately is the most complex part it's dealing with humans where his real strengths are with physics and science around spacex and tesla that's where his first principles really shine. i think it's going to be more involved i suspect he'll spend 6 to 9 months and when even though it's more involved, he'll probably not worry about it as much and maybe the business doesn't do as well as far as does it have a negative impact on tesla in the near term? the answer is yes. he is an inspiration he's difficult to work with. on the margin, his time spent with tesla is a positive and -- and it doesn't change longer term but i think it's a negative near term for tesla. >> gene, one other related question, william cohahn has

been writing some stuff about the debt payments that come on twitter and the idea that come april '23, there's a big one, at least i think $500 million, maybe more elon obviously owns 75% of the business, 25% owned by other investors. do you think that he's going to have to continue to sell tesla shares to fund twitter >> i don't think so. i think that ultimately the math and -- there has been some -- obviously erosion with some of the advertising in twitter at this point, with the advertisers that have left, it's a measurable amount. i don't think he needs to sell shares if, for example, the -- his content moderation policies, they haven't changed when they do formally change, if there's a more exodus of advertisers, that changes the dynamic i think at this point -- >> if they're losing $4 million a day, which is what he says

they're losing, this is a money-losing business, not a money-making business. if you were making a money-making business, you would use that cash to pay down the debt if you're not making money, where does the money come from >> well, it's based on a belief that -- i think that they can start to reverse that. if this current trajectory continues, if they -- if they don't win back some of the advertisers, if -- verified -- if twitter verified if the content platform they want to get going where content creators make money on twitter and they share in some of that, if none of that gets going, yes, he's going to have to sell shares my perspective is based on a belief that there's a lot of hand wringing going on with advertisers, consumers really haven't embraced some of these verified by twitter subscriptions yet and some of that will stabilize -- >> by april, in time for the april payment?

>> it needs to stabilize within the next month to make the -- they need to start to show improvement. it's a second derivative thing they have a month here to kind of kitchen sink things and get people reset and what their products are and get people understanding what their content moderation is. if that yields the current environment, he's going to have to sell tesla shares in april. >> which is why you can expect that $8 fee to roll out this week. >> thank you. >> thank you still to come, kevin o'leary, john hope bryant joining us to talk about small businesses, inflation and the economy ahead of the midterm elections. later we're going to hear aom iac chairman barry diller inn exclusive interview. stay tuned

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on their own terms. start your journey with a free trial today. welcome back to "squawk box. small business owners preparing for what a -- a shift in power could mean for main street joining us now, john hope bryant, and kevin o'leary. john, it's good to see you in the -- andy writes a piece in "the wall street journal," the cure -- and i assume he's talking about what's on everyone's mind, it is the economy, once again, the cure is cut taxes and spending, economic growth will come from efficient supply chains and u.s. productivity is there any world that you can imagine, john, where you would give a thumbs up to that cure,

cutting taxes and spending >> i can agree with that after we get through this transition period of the worst pandemic in 125 years which is how we got in this mess in the first place and we have a business plan. what we really need is a business plan. a business plan that should include being the most efficient that you can be. we must keep in mind, joe, is that we're not at war with each other or the tax rate, we're, unfortunately, at war -- or somebody is at with us is china and russia and they're governments are subsidizing everything i'm not suggesting we do that. i'm suggesting we need a business plan. and what you're seeing in the anxiety of people is they think that while we should have a divided government, we have a divided people we have -- we're really shooting at each other when we really should be figuring out when we're better together. if it's appropriate at the right time, then, yes, cut taxes where

you can create efficiency and growth and where the pain is the highest and the gain is the lowest which is the middle class and the poor frankly, as far as a -- on income tax so i think i already answered your question. i'll stop. >> actually, it's the -- today's supply side journal is i think what it's called today, kevin. another opinion piece, the answer to defeating putin is a supply side defense. policy shifts after the midterms would allow us changes made to the supply side for energy, it would free the world from putin's ability to hold us all hostage and to blackmail the eu. another supply side answer you probably are a little bit more i guess positive about the those remedies than john, kevin? >> i'm very positive i actually think putin is going to get involved in a hunting

accident soon. this war isn't working out for him. the outcome is not good. that's going to resolve itself i hope in the next 24 months he's inflicted horrific hardship on people. tomorrow is a wonderful day. we're going to get a major shift in terms of policy and when i say that, this happens all the time this movie we've seen before the incumbent, regardless of what party they'rein, always loses seats in house what i'm excited about is what's occurring in the senate right now. i think the senate is going to flip too and that will lead to what we need in this country, total gridlock no more bills. no more spending no more taxes. no more anything for the next two years to give us a chance to breathe, to let this economy come out from under all of these horrific policy mistakes and all this inflation we inflicted on ourselves by printing $6.7 trillion.

there will be no more printing anything and this is a chance for small business to take back the economy and make things blossom again. i'm bullish about what's going to happen tomorrow i think this is a wonderful outcome and it's what we exactly have to have too much government, too much spending enough already i think everybody is frustrated on both sides of the aisles and shutting down washington is exactly what's going to happen at midnight tomorrow fantastic. >> what about it, john how about just a -- like kevin says, maybe take a couple of years off from using the "t" word for trying to fix everything as the federal government likes to do, we're going to fix everything by taking trillions to do so. how about taking a break >> let's take a break from 1943 to 1945? how about we tell germany, which we did take a break from when they start talking about jews in 1925 to 1940 and let news cases

run wild with fanciful ideas that became mainstream policies. let's take a break fromthe 1960s when the laws started to edge out blacks and shutout blacks that didn't shut out the rest of the world thinking america was a place of freedom and democracy for all people this is a ridiculous conversation you don't have to lead and spend money at the same time but my friend kevin benefitted from everything that happened from 2000 and 2022, from congress, including ppp, and the rest of this stuff with the fed window and folks watching this, there's too much medicine, joe, yes, i've said it before we probably have $2 trillion too much medicine for the patient. but as i keep saying, there was no pandemic manual that anybody pulled off the shelf oh, 125-year pandemic that shuts down the entire economy and let's go find that

we just were doing the best we could and what we're not doing right now is rock, paper scissors we're dealing with an overheated economy. i'm confident -- and my clients at operation hope which are the most vulnerable are confident even though they agree with kevin that there needs to be some efficiencies in government. they don't want crazy people in office like this guy running for the senate -- for the senate here in georgia who can't say whether he's an fbi agent or not. can't figure out how many employees he has in his business what they want is the nuttiness to stop. we got to get back to sanity it has nothing to do with writing a check. should we have moderation? yes, the bible says, you know, that even alcohol in moderation lowers your blood pressure have we had too many drinks? probably but we're still here joe the rest of the world is sucking wind. >> kevin, do you even want to attempt to take a shot at that >> let me give you a very simple

index that i think john will appreciate, maybe everybody will you know, i have one of my companies called turbo trust, very simple, it makes trusses for chickens and turkeys we sell a lot of trusers right now both for chickens and turkeys. this is the index. these products are bought directly from the manufacturer we know in every state with a truser is sold instead of selling turkey trussers right now, we're selling chicken trussers three to one that means families can't afford turkeys. and if you're an independent voter, you know how crazy mad that's going to make you why, in states like new york and pennsylvania and florida and texas and california, and i know

the price of turkey, it's 2 1/2 times more expensive than it was 18 months ago. who do i blame for that? who do i blame for that? who takes the hit for that i'll tell you, we'll see it in the polls tomorrow you can't take the turkey away from the american voter. watch this happen. >> i hear truss. i'm uncomfortable even hearing the word truss and i looked it up i don't like the way they look i hope i never haveone but thank you for -- we covered everything under the sun there between john hope bryant and kevin -- were you expecting any of that? that was awesome thank you, both. we'll do that again soon tune into our special coverage we'll see if what kevin was talking about actually comes true what's that? and then there's liz truss business othbaotn e ll tomorrow night. there was liz truss.

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"squawk box" will be right back.

welcome back, everybody. economists say the outlook for the u.s. labor market remains strong, but more workers may be looking for new jobs with coming layoffs and new pay transparent laws may have some lawyers bracing for tough conversation to attract and retain top talent sharon epperson is here. she's got more on this front good morning. >> good morning, becky a new paid disclosure law went into effect in new york city on

november 1st requiring employers to list salary ranges for posted job ads, promotions or transfers. now, eight states have passed salary range transparency laws since 2018, including laws that will take effect in california and washington state on january 1st. experts say these new laws may help small businesses compete with larger firms more easily for top talent >> having transparency into what the compensation market looks like externally is a costly endeavor that has favored large companies for a long time. now it's nice. now every company can see that information. it's open. it's out there >> this also opens the door for new job applicants and current employees to ask hiring managers about benefits, perks and other types of compensations i talked to negotiation expert alexander carter and she urges

job candidates to use this to ask questions. >> what will be required of me in the role, ask how, how are you valuing within that band and my favorite question of all, sharon, is tell me tell me more about the position. tell me how you came up with the pay structure, tell me the kinds of qualification that is would land people toward the top of that salary band >> experts say it's important for business leaders to understand that employees value fairness for many workers, pay alone is not -- no longer seen as the ultimate prize. >> sharon, thank you so much. when we comeac jemy bk,er siegel what he says will really matter

to your money. that's next.

the first time your sales reached 100k was also the first time you hit this note...

( screams in joy) save 20% with the lowest transaction fees and keep more of what you make. with a partner that always puts you first. godaddy. tools and support for every small business first. ♪ welcome back to "squawk box. joining us right now is jeremy siegel, professor emeritus of finance at the wharton school of business you've been marginally bullish, and it seems by most accounts the economy is not, and so the question is what investors should be doing about it, professor? >> well, andrew, i was in london last week. i was listening to the powell news conference, and an a.p. reporter asked the question that i've been talking about all of the time

he asked powell, he said there's two housing indexes and we are going to get the cpi in a couple of days. he said there's the forward-looking one that uses current data on what's going on in housing, and then the one that the bos calculates which is some crazy average of past data, and he said, which one do you like, and i was shocked because jerome powell said, yeah, we're using the one that says past data and these two indexes -- remember, housing is 40% of the core inflation which is what powell talks about all the time. if you use the current one, you actually get negative prices and rentals. if you look at the backward-looking one, you get

positive ones that make all the difference and so -- i was saying, they're looking at the wrong indicators >> professor, the market will move higher because the fed is going to let up earlier? >> i think they'll eventually get it, but i was sort shocked because when you look at the forward-looking indicators of inflation they are down. when he said i'm more hawkish than i was in september, well, since september we haven't had anything to show the prices are going up except the backward-looking indicators. it is a realization of what is going on in the market and the market is sort of saying, yeah, p powell's talking hawkish he's going to pivot and realize the cpi isn't going up the cpi will show another

increase and the kay shiller and the rental prices from zillow and all of the apartments and others are going down. this is a really big issue in terms of how you interpret inflation for forward-looking policy i think the market says he's got to flip some time. he will see the light, it's just taking him a little longer >> part of this is a timing game, professor. so when do you see the light, and if he doesn't see this light, and i don't know if the light is right or not, but if your light is right, if he doesn't see that, right now the market doesn't predict him to be seeing that light necessarily until some time in '23 >> the question is i don't think they need another increase and there's talk about bullard wanted 75 more there's a lot in the market about whether there should be 50 more i don't think we need any of

these increase -- >> professor we pressed pause on the professor. i don't know if the professor is going to be coming back or not can you hear us, professor >> no. >> i think that we've lost the professor. >> we will talk to jeremy again, soon >> we lost the professor coming up, don't miss our exclusive interview with isc chairman barry diller from everything in the economy to streaming and more i didn't even know gilligan's island

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good morning futures pointing to a higher open as we get set off to kick off a new week on wall street despite gains on friday. averages added lackluster performances last week and elon musk wants a twitter undo. there's now a report that the social media company made a mistake and wants to re-hire some workers we'll talk about all of that and media both social, traditional, everything else. the midterms, the economy, so much more with our special guest isc chairman barry diller. the final hour of "squawk box"

begins right now ♪ ♪ ♪ ♪ good morning and welcome to "squawk box. we are on cnbc live from the nasdaq marketsite in times square i'm along with becky quick and andrew ross sorkin i want to say it a lot tomorrow and business is on the ballot, but that's coming -- whoa. yeah do it. give it to me. business on the ballot tomorrow night, 7:00 to 9:00 who's anchoring wednesday morning? have they told us our replacements. >> we're there the whole time. >> so we'll be out until 10:00 and then we're going to come home and -- what take some no doze and come in here and you know what we're glad to do it. >> we are. >> u.s. equity futures at this hour are indicated higher and after a pretty good session on friday which did not make up for

what happened last week especially the nasdaq was the worst week since january the composite lost 5.6%. treasury yields this morning have moderated at least somewhat with the ten-year on the inexorable climb to -- i'm not even going to venture a guess. >> don't say that. you didn't have to say anything, you used all of the fingers that you had on one hand which is scary. if it goes to five -- there's a two-year the two-year is almost there already and 4.7% and oil prices above 90 and down today, down about 1% nat gas up 11% another one to continue to watch. >> apple shares lower in the pre-market after the tech giant said covid-19 restrictions are hitting iphone production at its biggest iphone factory in china. apple says it expects lower iphone pro and max shipments

than previously anticipated with the significantly reduced capacity the site employs 200,000 people and has seen workers to try and -- curb the spread of covid in china we've been talking about that story and saw that a couple of weaks with eunice yun by 1.6%. "the wall street journal" reporting that the facebook parent is preparing to announce large-scale layoffs as soon as wednesday. it could impact thousands of employees. sources told the journal officials have told workers to cancel non-essential travel. meta added thousands of workers during the pandemic and at last count had roughly 87,000 employees and been adding righ up to almost the present, but that will reverse quickly it looks like. >> meantime, the latest on the big changes at twitter and the company reaching out to dozens

of workers they laid off last week and asked them to return to their jobs some of those being asked to come back were laid off by mistake while management realized others may be integral to bringing in a new feature or multiple features to life. twitter cut 50% of its staff under its new owner, elon musk. twitter will wait to introduce changes and the twitter blue subscription elections and apple's app store over the weekend and musk tweeting that going forward, accounts and attempt to impersonate another user that aren't labeled as pair parodies will be permanently suspended. >> sarah silverman pretending to be musk under the blue check

system under the new blue check system because this was under the old blue check systems. >> there were some that were pretty funny have you seen that commercial she's on i just don't want to go back to selling pictures of my feet online >> i've tried that >> you have. >> can you make a living >> what happened >> i was just saying hello to somebody we have somebody in the house, barry diller has just arrived and i was giving a little wave. >> i saw that. i saw that >> he missed that, talking about someone selling bucketures of th their feet and let's bring in mike santoli mike, good morning. >> joe, hello. s&p 500 showing a little bit of resilience it's tough to sort out exactly what's going on. obviously got a good and steady,

but mixed jobs report on friday. the s&p 500, here's the index fund has essentially held on to most of the ramp off that october 13th, cpi-related low. there's enough rotation going on and you have this liquidation in the faang-type stocks and some strength in industrials, financials and health care that's offsetting and it's liberated itself off the zone and so far holding in the dollar is down and the yields are mentioned and everybody knows they're pretty positive historically once we get through midterm elections and take a look at a longer term view of the software sector versus energy virtual assets and versus real assets and this goes back to the end of 2018 and in 2019 it was a tech centric valley we had going into 2020 before covid hit and now you've seen energy has overtaken software

there was a massive outperformance there and it started to seem like a pretty aggressive give-up trade in smaller software stocks, but there's just so many of them and now in refrenchment mode and they're stretch in the short term and it's coming back from a deep deficit here and it's a similar theme here and this commodity index, along with the bank sector were really tracking each other very well over this period until you got right here and that's when inflation went from being a sign of underlying demand, strength and reflation to something that might actually jep jeopardize the economy and yields higher in a, but you're off the highs in commodities and they're consolidating there and off the road in financials and i'm not saying they'll reconverge and this is an interesting dynamic and the

character of a rally can change in perception, joe >> all right mike, i think it still matters we're watching ten-year, two-year dynamic and i think that explains to some extent what happens to the nasdaq and in addition the other concerns about layoffs, although sometimes they go up perversely after announcing job cuts, but we'll see you. >> yeah. >> an exclusive wide-ranging tterview, we have barry diller inhe house and they'll be inhe house and they'll be sitting at the table i know, i got 'em some of those plant based burgers. nice! yeah. voya provides guidance for the right investments and helps me be prepared for unexpected events. they make me feel like i've got it all under control. you're because i do. ok, that was awesome. voya. be confident to and through retirement.

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welcome to "squawk box." i want to get to our special guest who is at the desk barry diller, chairman of expedia. we'll talk markets, the fed, the election, a little elon musk i don't know you said wide ranging. nice to see you. >> thank you i like this view, these cameras. first experience when i was at abc, and it was really dodge and whatever that i was not going to get fired because the second week there was a strike, and i got this assignment to run one of the cameras of course, which i don't know how to run, and leonard goldenson who was the chairman

of abc was making a speech that they were broadcasting internally, and they told me, i thought orally i'm not that great either, to dolly back. i heard in and i ran over the chairman of abc. i literally -- >> with the camera. >> little leonard. >> we have mostly robotic cameras. >> that was almost the end of my days before they began >> well, hopefully they'll continue here this morning tell us on ey-- we've all been debating about what's been happening in the economy and you see it through expedia they just had earnings >> yeah. yeah stocks have come down a lot. you're an investor, what do you think is happening >> well, i mean, business is actually pretty good there is a slowdown in advertising. it's always first out and then first in, which is to be expected, but for instance in

travel, expedia had its best quarter in history $3 billion of cash flow, and mgm, it's best also aquarter not in history, close to it and probably in history, and so travel, which is -- i mean, you do have this, think, spurt out of lockdown and that's still very vibrant you can't -- you can't get into las vegas. well, you can get in some places, not ours you can get interest las vegas -- >> you're probably happy about that >> it's really -- it -- it -- you can't re-create the place, and it is absolutely this place for all sorts of conventions are starting to come back and now just as probably travel and price per room is beyond the

pale i doubt it can continue and it's been rising and rising and rising for the last year or so, but now along comes asia which is just starting to thaw, so you have -- think of this, you have far greater the population than in the u.s. and in europe, and they've had two years of very harsh conditions, and they've got -- if people in the united states have a lot of pent-up money, they've got a lot more. they're starting to travel and they will burst forth in the next year. so i think that for travel -- >> right i think there's -- there's nothing to do -- >> that's the good news on the travel side, but what about the rest of the world? >> i don't know. my stuff is advertising which is suffering, and not disastrously, but somewhere between 5% and 10%. it's not hideous, and the rest

of companies, as i see them -- they're -- they're not doing badly. i mean, let me say this, not bad enough to have 35 to 50% of their value -- that's what i was going to ask these stocks are off 50% >> what if jay powell was paying attention to travel he'd be going to 10%, probably, but if he's paying attention to advertising he might start stopping now >> look, the truth is nobody -- when you live in something you don't really feel it unless it kills you, but the pandemic, we really are living through still and we have yet to the pay the bill, the bill is coming through in '23. >> you mean the money we spend >> yes ther there's no other way out than that which will, thof course, hv

its effect and at least in a world where there's no facts, no truth, whatever. there is a truth that bills come through and that pandemic bill -- you can't postpone it. >> do you pay for it for a recession? >> listen, you flooded it falsely. in other words, you poured stuff in in order to aleve people's troubles >> what sort of an inflation -- >> i haven't a work. in order for it to work and in order for inflation to come down then there's got to be a squeeze in that lemon and it's probably -- nothing is ever equally spread everywhere and it's probably fairly equal and it's fairly, i don't think it's death painful, but it has to happen. >> the hangover is equal to how drunk you were >> yeah, and without a little -- whatever you do to offset a

hangover >> in terms of damage, though, particularly in the media space. >> deep damage, how damaging is it, too and we've seen the stock prices come down for the streamers. >> yeah. >> you've seen warner brothers discovery. you're seeing facebook what kind of damage are we talking about here and do you look at these things -- >> you mean like default damage? or like default damage or takeover damage? >> oh, i think because prices are down, i think you're going to see further consolidation activity, but warner brothers was set up for that to happen. that's what they did they didn't exactly say okay, you actually now, discovery own this thing they say you can rent this for a relatively short period of time until somebody comes along and

takes you out. >> why do you say that >> why do i say what >> you say it's temporary -- >> david is an executive and all that stuff, and i think he's doing things that should be done, but the thing is it's like at&t literally got rid of this in return for this huge amount of debt and it's smacked on to warner's shoulder. like everything, that debt got to be dealt with it's a very hard thing to do -- >> yeah, you can maybe cover it, but for how long and to what end? if that's all you're doing, covering your cost and whatever -- everyone forgets, these entertainment businesses do require actual hits, and you cannot organize a hit parade, and it usually doesn't come when you absolutely need it >> meaning that -- if they're

going to get into a point when someone else takes over, who will be a potential takeover >> pick your whatever -- i don't know >> i mean, look, on an equity basis, it's been dastardly hit, and so the equity value -- it's -- the company will be -- look they can hold on i'm not saying they won't. i'm not saying they won't come through. maybe they shall however, that debt is truly an incredible anchor over their heads. >> what do you think about the parent company of this network, comcast? a lot of people speculated that comcast should merge with nbcu if you were comcast, what would you do would you own warner brothers? >> that's actually another question >> yeah. yeah yeah, sure

you have a company whose leaders always want more and they've been able to build this huge company from virtually very, very little. i'm sure they're willing and i'm not saying they're willing to buy this particular asset or whatever, but i've thought and i've thought for years that comcast is in the best position of all of them because it is truly hedged. >> what about netflix? >> netflix won get over it. >> netflix won, get over it. >> of course netflix will never be displaced as the leader in streaming >> will other players be able to make money in streaming? >> no. i don't think so -- >> from 800 to 200 that doesn't feel like a win. >> what you're doing -- again, you're doing it on -- >> i know. >> on the momentary equity, but the truth is if you say who leads streaming? it is netflix. >> right >> and it will continue to lead streaming, and eventually they'll pare their costs down. they shot their costs up in

order to build their business and so they put a lot of money in the program >> is it still a golden age for writers, producer and directors? >> say it's platinum, but it ain't bad because there is still too much pressure on a relatively small talent pool and they are still spending money. all of them are drunkenly spending money in order to establish market, in order to do this, but at some point you've got to reconcile the money they've given up in linear television which was huge to transfer over to a new scheme of direct to consumer which when you can balance it out, less -- the result is going to be less programming. the result is it will go from gold to pewter at some point. >> but where was the market right? in the valuations where it was being valued 800 bucks >> lots of those valuations. >> but is it crazy down here,

too? >> yeah. long term probably so. a lot of people speculated that they also combined and possibly with microsoft now that microsoft is doing the back understand of their advertising. >> i hope not because i don't believe in that consolidation. i actually think they know -- by the way, we'll see what happens with the ads supported i'm not a fan of the idea because i think there's such a pure pay play and to muck their imagery up with advertising i think will confuse a lot of their subscribers and i'm not so sure they're transferring dollars to pennies. >> talking about advertising you've been a critic at certain points and a fan from the equity perspective at some point from facebook or meta what do you think now?

i just think it's -- you know, first of all, i think the whole meta thing is kind of -- i wouldn't call it pointless, but meta, wearing this thing, however they make this thing comfortable on your head other than if you're a game addict and you're narrow, but i do not believe you're going to go into another world to live your life, but i also think it's quite amazing that one person can decide and it's a one-person decision, to spend $30 billion to develop a market that does not exist. >> do you like that stock, though >> you used to think it was a great mousetrap, the rest of the businesses. >> would i like to have instagram and what's app for sure, and facebook absolutely those are -- by the way, those are relatively simple businesses

which have a great share and if you just bop behind them you'll do great who needs meta >> what about twitter? would you like twitter >> as a toy? >> is that what you think it is? is that the way you think elon musk is treating it? what are you suggest something. >> well, yeah -- i don't think he would say -- he is very rational he is also very quixotic, but his quixoticness is based on very, very, i think, deep rationality, and he believes that -- the price because the price is crazy as he has said, but the thing is if you overpay for something and the bill doesn't come due because it can't come due for him because he's got much more money, he's thinking in pure buying terms, he bought it big, and i think

twitter will be a much smaller business than it was, but i think he will figure out how to make it more appealing and he'll figure out a subscription and he'll figure out how to make it the ten-cent or webo in china. this is not a big deal it's only a big deal to media people because they use twitter so much. >> it comes due in april. >> he's got it >> the question is does he pay for that do the other investors, does larry ellison or marc andreessen continue to pay for this themselves how does that work especially if you're a fiduciary. >> at some point -- >> for the investors. >> at some point friendship ends. >> and therefore what happens? >> he pays it. >> he pays the bill? >> yeah. do you think he'll let it go bankrupt or let it be taken over by banks >> who cares in other words, it's like you

have this extraordinarily wealthy person and he bought a toy, and he bought a toy how long he will use it, like toys, we don't really know, but he's not going to walk away, i don't think. by the way, twitter will be better it will be smaller. >> you mentioned china we have a lot of debates here about tiktok >> yeah. yeah gone. >> i think so. >> and by the u.s., you mean >> i think it will be banned in the u.s. >> that would be bullish for meta and for twitter and for anybody else who is not -- >> look, i have great respect for mark as many, many things, and yes, if he just paid attention to his basic businesses, i think all is well and may be better because of tiktok those businesses are great they're great. i mean, built from nothing,

they're just fantastic businesses. >> meta. >> they just stopped on meta. >> look, if you change the name of your company to something that doesn't yet exist, bury what does kwieldly exist successfully, something is quite odd in that. >> is it still sports and news or just sports. >> which >> just -- where's the future? is it still news for content you can't constantly create a yellowstone. >> everything -- >> jeffrey dahmer, that's what we've got? >> one thing fox did when they split is up and kept basically the live business. >> yeah. >> meaning sports, news and kind of local programming with their enormous number of television stations, that's smart you're never going to kill live. >> that's what i mean. >> it's not possible >> i was thinking about network tv and i see what they're pushing and i don't know

i would have to go through 400 channels before i would arrive on east new york or whatever -- it just looks like, but then again, streamers want nfl -- everybody wants nfl. nfl goes up, what about news but then news i wonder sometimes, too >> i don't wonder about news linear tv -- >> don't wonder about news it's good. >> yeah. what's going to happen i mean -- >> a little less would be nice. >> do you think linear tv will die then you would say the news. >> no. i'm really talking about broadcast and cable entertainment television. >> that's what i meant. >> so if that was the right move for fox, why is there now supposedly this deal to put together the news -- >> i think it's the issues. >> it's certainly not economic it makes no sense. >> when you think about all of the work that goes into splitting these companies and then all of the work that goes

to put them back together again. it's kind of a dope game and maybe they'll do it. there's no rationale for doing it if you were a shareholder, you would vote against it the, it sounds like. my vote doesn't count. i'm not qualified to vote because the murdoch family controls the company there's no voting. >> believe, in this case, i thought there was a majority and minority in this particular instance >> nevertheless, they own 39% of the company in voting terms. they dictate the company so you think ultimately. >> i mean, yes, the minority has to do it and they're presented in an equation which they will vote for because they always do. >> you want to talk about the business of politics tomorrow are midterms. what do you think the impact will be? >> you know, we're all pent up, but for the election tomorrow as

if that day at the end of it you will report on and it ends, this is a pregame that is all this election is, and so my hope, my hope is that there's not a blowout on the other side that we end up strangled because that's the best place we can be that's how a democrat hopes for no more spending you don't want to blame democrats for spending too much in the last couple of years, but you're not willing to say gosh, i wish the republicans would come in here and stop. >> let me ask you a question do you think the -- the name of which i will not speak is still in power. >> is he orange? >> yeah. do you think that he would not have spent the amounts of money that we're spending. >> in a dint way there would have been deficit spending whether it's on tax cuts or -- i still think supply

side deficits are better than just -- i don't know what the hell we tried to do for the last two years. some of it was good, but in the last year we spent things that were necessarily not wise to spend on right now >> we splurged in every which way. >> but you don't think republicans would come in and spend less if they took over the house and senate, do you think you want gridlock? you want neither side. >> this is supposedly an election now about the economy and -- >> business is on the ballot, barry, as you will see tomorrow night. >> and about crime, right? that's what this is about. i don't think it's about it at all. i think it's about character because i really think that nothing -- let us say that you totally turn it over, and both the house and senate are republican do you really think anything is really going to change on the economy or on crime?

i would say really unlikely. there will be no effect and the only effect there will be if that happens and you have 170 or whatever deniers of the previous election i think that's about character, and that, i think, is what is going to be revealed tomorrow. >> what about the shift -- >> is character in the eye of the beholder. >> of course >> wait, let me ask this do you believe that the election was fair >> i believe that biden won, but i certainly think there are plenty of things that we need to keep an eye on >> oh, sure. yes. go have people stand out there and do all of the things -- >> you want free and fair elections. >> you don't believe -- sorry. you don't believe that the election was a fraud

you have people whose platform is that it was a fraud. >> astacy abrams. >> please. please >> i don't know which denier you're talking about >> i don't care about fair. >> how many times the 2016 cal called illegitimate. >> in your view -- >> no, not in my view. >> i understand the economy's not going democrats' way crime is not going -- integration and all those thing, but talk about -- okay but to talk to focus deniers is not going to help tomorrow. >> it's not that you focus on deniers. >> you have that and abortion. >> it is what it says about character. >> barry, what does -- what if for five years the office of the vice president was for sale with foreign interest is that character for you?

i'm talking about hunter and barris ma and i'm talking about china. >> you say character. >> no. you're taking it into a different arena. >> one person's character flaw -- >> which you can however, if you just think about what happened out of this election and that people and that people -- people deny the narrow fact that this election was fraudulent and should be reconsidered. >> barry, if it was that important to the american people you should win in a landslide, the democrats and it's not going to >> of course not >> it's not priority number one for most of the people in this country. we're going run out of time, and one relates to politics. what do you make of the fact that the relationship between the democrats and republicans have shifted, not entirely, but in a big way. >> remarkably.

>> what does it mean longer term >> i think what it means is in a way, it's, you know, those three little shells and they move around it's a shell game for purely pragmatic reasons. the republicans went this way to capture this while the democrats were left with no other way to go so you basically switched sensibilities. it doesn't -- as for true meaning, i don't think it has much true meaning underneath it. >> finally, before we go, and this is the first chance we've had to talk about this there were a whole bunch of headlines, three or four months ago, probably longer about the sec investigation that they were doing on the microsoft, activision case. >> what is the state of that and what do you know and what happened >> the state of it is is that it is being investigated as you can

imagine it's investigated. here, david geffen and i bought stock on a friday and on monday the merger with the activision and microsoft was announced. >> right that is a big coincidence. so the first question is, and the only question is did you know anything? no, we didn't know anything. for sure, me in my advanced age is not going to commit such a stupid fraud i don't think having never committed a fraud i'm not about to start now so it's very hard, however, for regulators to -- they don't seek -- they generally see no possibly ever of a coincidence a coincidence cannot happen. this is coincidental i say unluckily.

i wish we could have undone it, this huge gain for us, it's relative and all, but the gain in it isn't going to change our lives any. i wish this fortuitous moment of buying a stock based simply upon the idea that it was undervalued and something was going to happen was lenkinked to our knowledge that something wassing about to happen, it's a one-note pony, but they have on go through the process. >> just so we're 100% clear, was there a conversation that you had with bobby. >> there are five coincidences literally, if you stack them up. it does, by the way, happen. otherwise there wouldn't be 2 trillion conspiracies, and

coincidences does happen, this is one of those. >> we are thrilled to have you and woe hope to have you back and make it more than a coincidence next time. >> thank you >> that's one of the key takeaways from the final nbc news midterm poll. we'll talk about expectations at the ballot box tomorrow with montana senator jon tester and join us tomorrow night, election night. we have a special tomorrow business on the ballot and we'll hit all of the topics at plain e dterms and how the results can impact your money. barry, if you want to come tomorrow night we'll have a seat at the table for you

"squawk box" coming right back

>> a finish line is in sight midterms are term and it is taking an upside share of voters' minds and ylan mui joins us with more business is on the ballot. i don't know if i mentioned it earlier. >> that's right, joe voters are growing more pessimistic about the economy and that could have major implications for tomorrow's election and it puts republicans and democrats neck and neck. 48% of likely voters e 47% prefer republicans and a statistical tie and the environment appears to favor the gop, a whopping 81% of voters say they're dissatisfied with the state of the economy and that's a record for president biden's time in office and the highest rate since the aftermath

of the great recession this level of unhappiness was back in 2010 there was a red wave and republicans won control of the house and gained 43 seats and president obama called it a shellacking and blamed it on a week economy republicans still gained another 13 seats in the house and democrats lost the seat in the senate it was a changed election anyway with democrats picking up 40 seats in the house, wresting control back from republicans. becky, pollsters project that this year will be both a referendum on the economy and a changed election and that means the democrats are facing a lot of downside risk despite the close races in many swing states back over to you. >> ylan, thank you very much >> joining us to talk about what businesses should expect in the next congress especially if it's

politically at odds with the white house is montana democratic senator jon tester. jon, if that's the case, if both houses go to the republicans, what will the relationship look like >> well, it's going to be interesting. i think that hopefully we'll continue to do some things that will help move businesses forward because it's important like bringing jobs back into this country like we did with the chips act like investing in infrastructure because we made a serious investment with the infrastructure bill, but i think there's still more to be done, but you know, in the end, you know, this economy is clipping right along. that's where we're seeing the fed doing what it's doing to help reduce inflation, but there are certainly some other things we can do. job training is a big one and potentially working out to make child care more affordable, and those kind of things hopefully we'll be dealing with, but it is

hard to say. we may end up in a situation where people are being impeached and things like that hopefully that's not the case. there's a lot of work to be done and you guys know as well as i do, china is sitting there licking their lips and saying they'd like to be the military leader in this report and there's not a moment in time where you would like to take the photo off the gas feed and we hope it will continue to move forward in a responsible way and not so hot that it creates the inflation we're seeing now >> senator, that's kind of a big question you mentioned that the economy is strong and as a result the fed is happy to be doing what it's doing, raising rates and there will be more economic pain to come. the government is looking at that saying the way to do this is to spend more money to ease the pain and those are inflationary measures and that will take the fed's job even

harder and what do you think about that >> i think in the end, the stuff needs to be paid for i don't think you need to be paying for programs based on national debt, and i think if programs are paid for much like the inflation reduction act is paid for i think that is a good format to use moving forward and does it need to be more targeted in the last few years absolutely we need to be aware not to do it too much, but the truth is there are needs out there that i think most businesses will tell you are a problem. one of them is a well-trained workforce. there's nobody that isn't looking into my office that will run a welder or get more nurses in the hospitals or docks on the ground in places like rural america. there are things we need to do to get people trained up because that will help business, but it

needs to be very, very targeted. >> do you think the money that's been spent to this point was excessive? >> look, i think it could have been pared back, but you never want to let perfection be the enemy of the good. we have $10,000 checks to be a bipartisan effort and the former president wanted that done and i would not have advocated that to happen because i don't necessarily think that that needed to happen, but look, i ended up voting for the bill and the bill passed, but like i said before, very few bills with the exception of the ones that are carry are perfect, but you try to massage them to make them as good as possible >> what would you like to see in terms of america's policy on energy production? >> all of the above. truly, all of the above, if you take a look at the inflation reduction act to push what we can do in renewables and push

conventional resources, i think that's a smart thing to do i think over the long term there is no doubt that we need to get to fuels that don't create as much carbon for the atmosphere i'm in agriculture last year and been on the farm for my family for 110 years and it was because of extreme weather events and drought, and i think that if we're going to stop putting the billions and billions of dollars out the door for disasters every year, it's only prudent of us to figure out a way that we can transition out of carbon-based fuels as soon as possible, but in the meantime, let's get as much out of the pipeline, which is what the inflation reduction act tried to do. >> senator, you know that coal usage is up and china and india how they're progressing and in terms of -- just in terms of statistically, the droughts and the floods that you're seeing.

you're absolutely convinced that the amount of carbon that we put in the atmosphere and carbon dioxide over the last hundred years. you're seeing the stark difference in the frequency and severity of these events and you can show me things that will prove that that is already happening. >> i don't know about statistics and from the real life i can tell you it happened we have a rain ten days ago and it was the first time that we got good rain in nearly 18 months i can tell you -- >> i understand. i don't think you base global energy policy on a specific part of montana not having rain for 18 months. >> look, everything west of the mississippi has been a drought >> i understand that >> i'm talking about a 4 billion year-old planet that has had droughts, floods and tornados and hurricanes and it's always

been a factor. if you have -- if you can statistically can show me in the last hundred years and i don't know how we're going to single-handedly do it when the rest of the world is continuing to do what they're going to do and hopefully we're not the ones that will single-handedly -- >> and we're doing better -- >> i'm not going to shut it because i don't think we're to that point and i'm still working with transition and with every challenge there's an opportunity and this is an incredible opportunity to unleash the minds in this country for things like carbon sequestration and new energy technologies, and i think we should do that and we can lead the world in that, continue to lead the world in that and continue to create jobs and the economy in the process and make energy more affordable >> senator tester, thank you for your time this morning >> you betcha. thank you. good to be on. >> when we come back, we'll get

jim cramer's take on the week in the markets and the election the markets and the election we've been talking about thi ♪ ♪ morn morn stay one loyalty program that lets you guest how you guest. how will your business adapt to change? you could hire an office one full of peyton mannings.s what's up, peyton? good morning, peyton. "squawk box" will be right back! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world.

welcome back to "squawk box. get down to the new york stock exchange where a good friend jim cramer joins us now. jim, a whole bunch of earnings coming in this week. curious what you want to do ahead of what may be also a bunch of numbers coming in plus, of course, tomorrow night. >> well, i think that the possibility say tomorrow will

get the 5:30 exit poll let's say the predictions. and i think the predictions might show the gop takes the house. obviously takes the senate and so therefore i don't want to sell stocks here i kind of want to wait until wednesday. i know that -- seems like mike wilson agrees with me. and in general, look, i think that the action friday showed you, steve leashman reported on this, don't sweat the program. we have autos going down, we have housing going down. we have some industrials going up, but we have technology in free fall. i think technology in free fall does matter because it's a big part of the stock market so don't sell until we see the whites of their eyes on the election come in wednesday and then let go of some technology. >> what did you make of mr. diller's comments. obviously he's seeing strength in the travel side of his business, something we talk about a lot, but also seeing weakness on the advertising front. but as he said, potentially that's usually the first mover and sometimes -- now i'm channelling jeremy segel, he

would suggest to you, you know, this comes and then gets better pretty quickly >> well, that's what paramount said last week, so i have to agree with him i think that paramount was the one that said, this is the play right now because it can't be this bad say a year from now although they did have a lot of advertisement for political. i'm never going to disagree with barry diller i do worry about the blizzard deal goes through. not pause of the new york post article. this administration wants to show its stuff this administration loses both the house and the senate, i think that every one of these agencies is going to go nuts to try to block everything. so i would be careful there. >> jim cramer looking forward to seeing you a lot more in just a little bit, sir on "squawk on the street." the street." we're right back in just a

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a little more than half an hour until the opening bell. monday morning joining us now stephanie link, chief investment strategist at high tower and cnbc contributor. >> good morning. >> good morning. the cross current, steph, i'm thinking about layoffs and wondering whether the fed eventually looks at some of this that's happening then i think about barry diller talking about how strong travel is so if you're the fed, it just depends what you're looking at as to how strong the economy is right now. >> yeah. and you know what, last week we got some pretty good job numbers across the board with adp

better nonfarm payrolls was mix bud for the most part the revisions were a positive of course, initial claims a leading kand tor, the four-week moving average is down 27% so, joe, the job market remains firm and that gives the fed the cover to do what they're doing, to get inflation under control and you know, if barry diller is right and the services side of the economy continues to be strong, well, that's 70% of u.s. consumption. that's going to -- that's where we have been actually seeing higher prices as well. so, look i think there's a lot of negative sentiment out there. seasonally we're in a very strong period for the markets. especially after midterms. i mean, look, the s&p is still down 20% nasdaq is down 33. i think the real story is the underlying rotation, joe we've seen a massive rotation to value from growth. the russell 1,000 value is down 10% on the year. the russell 1,000 growth is down 30%. and the growth is being led by the technology stocks just completely rolling over.

that was last week in spades >> do you -- when you talk about a strong economy, good job growth, in the back of your mind, is it like that's trouble? is it good or is it not good we're all faced with the sort of perverse reality of trying to slow the economy down by raising interest rates, which means what we're trying to do is have a poor jobs report essentially >> yeah. i'm of the belief that good news is good news but i understand what the market is saying. here is the problem, we haven't even felt the fed hikes yet. there's a lag. even the fed said this last week in their notes that there is a cumulative effect of higher rates and what's that's going to do to the economy. that's why 2023 opens the door for the recession and that's why everyone is talking about it it is a mild one, deep one, is it even one? who knows. i think we're pricing in a lot of negative news the one thing the fed looks

at -- they look at everything. the unit labor cost, prices paid the core pce and that's still too high at 4.9% they have to get that down we have to -- and we have to take the medicine unfortunately as barry diller said and just look and watch what's happening underneath the surface because there are parts of the market that are doing better than the headline suggest. >> this is on the ballot, what do you think is going to happen? do you care? do you like gridlock any viewpoint at all -- it is an important day tomorrow, stephanie, whether it's important for the stock market, i don't know if people have differing opinions on that >> it's very important for sure. and i think the consensus is it's probably going to be a mixed congress and as an investor, not as a person, but as an investor, i kind of like gridlock so we don't have to worry about big headlines or a lot of spending or a lot of other things in an

extreme fashion. >> all right steph, thank you appreciate -- >> good to see you. >> always do final check on the markets we are indicated up less than -- just over 100 points triple digits. the nasdaq up 31 s&p up -- we're watching the yield complex, too that might be even more important. make sure you join us tomorrow election day, one more time, business is on the ballot. "squawk on the street" is next ♪ good monday morning. welcome to "squawk on the street" i'm carl quintanilla midterms of course, cpi thursday, disney earnings and watch megacap today. road map begins with the tech turmoil. apple warning covid restrictions in china are hurting iphone production.