Im wilfred frost, sara is off today. Lets get to the Global Market picture. This comes off another record close for the dow yesterday that was up 0. 7 . The s p and the nasdaq were up just slightly. Banks did well as yields rose. That record close and big jump for the dow flattered by one or two individual stock movers. The likes of caterpillar and 3m up significantly and the price weighting nature of the dow meant it had more of a significant gain than the dow or nasdaq gains for all three indexes. Slight gains this morning for the dow, the s p and nasdaq just lower. Tenyear treasury note, we hit a high of 2. 424 yesterday were at 2. 44. Fractionally love that level that will help the likes of the financials again today on the wall street agenda, a pair of economic reports and plenty of earnings september durable goods earnings are out at 8 30 a. M. , followed by september new home sales at 10 00 a. M. Boeing, cocacola, glaxosmithkline, Northrop Grumman will report before the open as well more earnings coming out as the rest of the week progresses. Lets look at markets around the world. Asian equities, sadly japan ending that 16day winning streak extraordinarily long run it had. Down a half percent today. Gains for shanghai and hong kong india having a good session today. European boards, they were slightly higher yesterday but not doing much today sort of switching the other way. A bit of a decline for the ftse 100. Germany and france either side of the flat line broader markets for you, the dollar board is showing slight gains for the dollar against the yen. But the pound is a little bit higher, which is one reason we saw the ftse 100 lore. The euro not doing much. Aussie dollar today slipping significantly as cpi numbers came out softer than expected. Lets move on. Have a look at oil prices, which were up 1. 1 yesterday today down the best part of a half percent 52. 3 the price of wti. Gold prices down yesterday and down a little bit today. Some of the worlds most powerful investors are gathering in saudi arabia for the future Investment Initiative event. Joining us now from riyadh is dan juergen cofounder of Cambridge EnergyResearch Associates thanks for joining me. Good morning. Thank you. I wanted to touch on one of the headlines that came out of the interview Andrew Ross Sorkin did with the ceo of saudi aramco, he said the depth of the u. S. Shale reserves stateside wont last and that the u. S. Will wake up to that and saudi arabia and the likes of other big opec producers with big crude reserves will be around for much longer. Is that something you agree with i think weve seen the u. S. Shale is a much bigger resource than people anticipated. I think its recognized by saudi arabia and other producers that u. S. Shale is an important dynamic part of the market theres some discussion about how large the whole Permian Basin is in terms of other fields its a different cycle it takes continual investment and a lot of wells, unlike saudi arabia but i think the president of saudi aramco, amin nassers point is that saudi arabia has longterm reserves and will be the lowcost producer for a long time when we think about the aramco ipo, there was a lot of talk about whether that was still on track what oil price do you think is crucial for them to make sure this goes through over the next year or so if Oil Prices Dip below a certain level, do you think they would pull it . I think that, you know, you heard i was on a panel with the Saudi Oil Minister of moscow, he said it will head amin nasser said it is going ahead. The crown prince said it is going ahead. We should assume its going ahead. Clearly they would like do it when oil prices are more positive than negative there is a kind of view now you heard it in the last couple days from the russian minister that oil prices around 60 is kind of a satisfactory price i dont think its contingent on a specific price, but closing it for the second half of 2018, theres an assumption that the oil market will have continued to rebalance and there will be a firmer floor under oil prices. That your view of the oil price over the next year or so well, i think so. I think that weve seen obviously theres geopolitical tension again. The standoff between the Central Government and iraq and the kurds is something that is giving the markets jitters the fundamentals, when we look at our numbers for World Economic growth next year, 3. 2 . We look at oil demand of 1. 8 , you see a synchronized global Economic Growth which really we have not had for years thats a foundation under oil and indeed under other commodities. Lets talk about those other commodities. Weve seen the Industrial Metals pausing after a summer run and take off again is that a positive sign for Global Demand more broadly i think that what were seeing in the commodities we do a weekly materials index. It was up over almost 2 just last week. I think this is all a sign if you look at commodities demand, look at copper, you see signs of strength in the global economy. Thats signal that goes across generally commodities. We heard the head of the imf here in riyadh yesterday also with some strong Economic Growth numbers. So i think people are generally, unless something happens, seeing that were in a better place in terms of global Economic Growth. The fact its not concentrated in one part of the world but europe is part of it and the emerging markets are part of it india is looking at 7. 5 Economic Growth next year. Its a good picture now. Whats your feeling on the ground there at this conference in terms of the fresh perspective, the saudi 2013 approach thats being taken by the kingdom. I ask because, of course, over the last year the other big fresh perspective they took was starting to deal more openly with russia, a traditional opec outsider is that something you think can last i think when i was in moscow a week ago is when the saudi king was there it was a message that i think the Saudi Petroleum minister said we have our national interests. And part of that is just that they both have an interest in this opec, nonopec deal in terms of rebalancing the market. It is a change you can feel the change. The fact this event is taking place in saudi arabia with the openness and ease, you wouldnt have seen that a couple years ago. I think its complicated to reform an economy. It doesnt happen overnight. I think when you have an economy where you have 70 of your population thats 30 years and younger and you realize the model of mainly based on an oil economy that you need to diversify and that the world is changing the world is Going Digital trying to implement that whats strike being it is the speed and scale and people are asking about execution but you see people here with dialogue that you wouldnt have seen a couple years ago. Its a sign of not only generational change but change in attitudes and openness. You know, this is like overnight what theyve done here with slightly different temperatures thank you very much for joining us news out of washington, the Senate Voting to repeal a rule allowing class action suit against banks. Vice president mike pence casting the final vote to break a 50 50 tie. The Banking Industry worked hard to roll back the regulation. Its a a somethisignificant movd with this, this could have an affect on legal settlements that are still on the docket. The Senate Approved a 36 36 billion disaster package, it th this includes a bailout of the troubled National Insurance flood plan more money will be needed as the u. S. Recovers from hurricanes, harvey, irma and maria. Twitter says it will label who is behind political ads. Twitter is launching a website for people to see the identities of buyers, targeted demographics and total ad spend. New reports say Hillary Clintons campaign and the Democratic National committee helped Fund Opposition research that resulted in the controversial dossier containing allegations about then president ial candidate donald trump. The dossier alleged that trump colluded with russia and other allegations which trump has denied. Republicans are racing to finish a tax bill. House democrats are expected to weigh in with their oeb pwn proa as well. Tracie potts has the details good morning we dont have new details because they have not shown the actual legislation yet what we do know is theres dissension in the ranks with republicans who are trying to rally together to get tax reform done. But a couple have come out very vocally against the president. Not just his policies like tax reform and healthcare but against his character. It resulted in a passionate 20minute speech on the senate floor by senator jeff flake announcing hes leaving because he thinks the party, the Republican Party no longer represents the principles that it did and is supporting a president that he has described as dangerous to democracy, having a reckless disregard for truth and decency, outrageous, undignified. He unloaded on President Trump in this speech interestingly afterwards, Mitch Mcconnell, the top republican, didnt denounce what he said but actually applauded him as being a man of morals. He will still be here for another year and a half. We also heard similar criticism from bob corker of tennessee what this means is that theyre there are at least two republicans. They have a razor thin majority of two who are not in lockstep with this president and others like john mccain, Susan Collins who are often skeptical and not voting in lock step with the party as they try to get together on things like tax reform its the big priority, but theres dissension in the ranks. Is there sign that we might see more senators do Something Like this . Two in recent weeks. Yes what are the implications of who might stand in the republican seats for the their senate seats next year first of all, will we see more maybe, maybe not jeff flake and bob corker are not returning to congress. So theyre not running for reelection. They announced that. Theyre open to say whatever they want to say or what they need to say without it worrying reelection bids in terms of where they go from here, the real question about this, we heard this from paul ryan, the House Speaker who said ignore what youre seeing on twitter, were trying to help the American People, but helping the American People means pulling this party together. Right now with the criticism of the president and some of his policies, theyre not unified on some of these issues thank noos for that update fm washington. Chipotle sales dropping 10 on an earnings miss. An analyst joins uwiiss th h take on the food chain after this on Worldwide Exchange. Ambitions live everywhere. Synchrony financial helps make them happen with data, insights, financing and technologies. Synchrony financial. What are you working forward to . I love you, droolius caesar, but sometimes you stink. Febreze car vent clip cleans away odors for up to 30 days. Because the things you love can stink. Throughout history, the one meal when we come together, break bread, share our day and connect as a family. [ bloop, clicking ] and connect, as a family. Just, uh one second voice guy. [ bloop ] huh . Hey . I paused it. Bam, family time. So how is everyone . Find your awesome with xfinity xfi and change the way you wifi. Good morning welcome back to Worldwide Exchange. Lets get you up to speed on market action. A mixed picture for the futures. The dow fractionally higher. The nasdaq and s p lower coming off the back of another record close for the dow. The s p and nasdaq were fractionally popular the dows gains flat the ted bt flattered by caterpillar and 3m. Wti at 52. 20. Chipotle reported Third Quarter profits and samestore sales last night well below forecast the chain was hurt by food borne illness outbreak at a store in virginia the store also cited high prices for avocados joining us is Steven Anderson from maxim group good morning to you. Good morning. Thanks for joining us whats the big miss here that everyone is focusing on . An eps miss, but within that other more concerning items that led the share prices down sharply. There are two items that we saw lean to the eps miss first was samestore sales, up 1 we think if you look at the quarter, its really a tale of two parts of the quarter for a sixweek period the comps were running negatively. Once the caqueso was introduced that moved it to the other side of the ledger. The other is food costs. You cited beef and avocado costs which peaked earlier in the quarter. Theyve since been coming down we think well be looking at the Fourth Quarter and into 2018, we think theres the potential to be added to the margins. The queso launch you think is a success then a mild success. Based on the research weve done, 15 of customers are ordering queso thats consistent with what the company announced. Samestore sales growth youre saying improved during the course of the quarter. Some writeups say it started stronger than it ended it started at 4. 5 , and for a six or sevenweek period it was running down low Single Digits it ended up about 4 to start the Fourth Quarter, comps are running in the low Single Digits. We think queso is part of that but not the entire story your last note you talked about being optimistic because of techdriven sales what do you mean by that what weve seen by tech is over the next several quarters, weve seen this play out with panera, which since has been taken private. We do think that more tech driven sales, thats sales driven by app purchases, catering, put all that together, thats going to at least in our view contribute a couple hundred basis points to comp growth. I think thats certainly following the panera playbook. We call it chipotle it2. 0. Thats partly why they paired back guidance for 201 8 as they rethink the model and we think well see that back towards high single digit unit growth in 2019 and later. Your price target for us, were down 10 this morning. What are you looking for at this point, we certainly are i think theres upside to the current price target i think 10 down this morning, i think thats certainly because people are concerned about the pairing back in growth and the disappointing comp and eps we think all these factors are temporary. Longer term outlook for the brand i think remains strong steven, thank you very much Steven Anderson of the maxim group. Still to come on Worldwide Exchange, chinese president xi unveiling new top leadership positions. A live report from beijing coming up. As we head to break, heres the National Weather forecast from nbcs bill karins good morning to you on this wednesday. Heavy rain moving through eastern new england. Thats our worst weather by far for traveling. Watch out for airport delays out of providence, hartford and boston overnight rains in hartford. We had flash flooding overnight. Thats getting better. Now the heaviest rains pushing into portland, ports mouth, boston and cape cod will be soaking wet all day long this will last this is a slow mover this is today and tomorrow thats one to three inches of rain new york city, youre in the clear. Airport delays from yesterday are a thing of the past. Maybe a stray shower or two in south florida rest of the country looking nice from denver through texas. No problems. Finally still very hot in california another hot World Series Game tonight. 99 degrees at ythsour Business Travel forecast more Worldwide Exchange when we come backmae get back into the marketsealio i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Ca yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone can i kick it . To all the people who can quest like a tribe does. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. You wont see these folks they have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Welcome back to Worldwide Exchange. Im wilfred frost. Some stocks to watch, at ts Third Quarter profit fell 9 missing forecasts. The wireless carrier lost more video subscribers to traditional and online tv competitors. Fewer customers also failed to upgrade their phones Juniper NetworksThird Quarter results were in line with the profit warning the company gave two weeks ago they also project Fourth Quarter numbers that fall short of analyst estimates. Down 6 . Capital ones Third Quarter profit beat forecasts. The credit card issuer was helped by raising Interest Rates as consumers took on more debt thats up 2 shares of Advanced Micro Devices is slumping. The Company Forecasting its first revenue drop in seven quart quarters. Toyota confirming its scaling back on its plants in mexico it says the market needs and politics drove the move for that decision. Lumber liquidate sers sors s settling all its class action lawsuits its agreeing to pay 30 million a 60 minutes report alleged the flooring contained levels of formaldehyde still to come, the top stories and a round up of the Global Market picture. Plus as republicans race to finish their tax bill, House Democrats are coming out with their own plan were live in washington wn hewe return s to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. 60 of women are wearing the wrong size pad and can experience leaks discover always my fit. Find the number thats right for your flow and panty size on the top of any always pack. The better the fit, the better it protects. Always. The busiest week for earnings is in full swing. The full agenda coming up. Washington watch House Republicans want to unveil their tax bill a week from today. A live report straight ahead. And the first family of reality tv just made history the details of a major deal coming up. Its wednesday, october 25, 2017, Worldwide Exchange continues now on cnbc. Very good morning. Warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Sara is off today. Lets get to the Global Market picture. Yesterday nice gains across the board. Slight gains for the s p and the nasdaq, whilst the dow had another record close, up 0. 7 , particularly because of the moves of one or two stocks in particular, 3m and caterpillar also banks did well as yields rose this morning the peicture not quite as rosie slight gains for the dow s p down 3 points. The nasdaq down some 13 points or so. Tenyear note, banks did well as yields rose. Theyre rising again today we hit a high of 4. 424 yesterday. That move in yields continues this morning lets look at asian equities. The nikkei failed to continue its extraordinary winning streak it had 16 record closes in a row as of yesterday. But today its first 16 positive days in a row not all record closes until the last couple. The nikkei down today about half of a percent elsewhere in asia, decent gains. European trade yesterday was slightly positive but nothing resounding today slightly negative, but nothing worrying the ftse 100 down because of the stronger pound the senate narrowly voting to kill a rule killing class action suits against banks mike pence cast the final vote the Banking Industry lobbied hard to roll back this particular rule. It would ban most types of arbitrary clauses found on the fine print of agreements that we sign when we open checking accounts or credit cards republicans are racing to finish their tax plan. Ylan mui joins us from washington with the details of that story there is Major Political upheaval inside the Republican Party right now. Arizona republican senator jeff flake has announced he will not run for reelection. He called President Trumps outbursts dangerous to democracy and he protested what he called the appalling nature of politics today. If we simply think this is politics as usual, heaven help us without fear of the consequences, without consideration of the rules of what is politically safe or palatable, we must stop pretending that the degradation of our politics and the conduct of some in our executive branch are normal flake has been a vocal critic of President Trump hes also a crucial vote for republicans as they try to make headway on tax reform. The concern is if he doesnt have to face reelection, flake could follow in the footsteps of the republican senator from tennessee, bob corker, who is also retiring next year. He has gone rogue and engaged in a public twitter feud with President Trump and he is now a wildcard on tax reform now, right now republicans are pushing hard to deliver that bill to the white house by the end of the year. The weighs and Means Committee will unveil its bill on november 1st with the hope of getting this passed in the house before thanksgiving the Senate Finance committee will unveil its own plan in the coming weeks im hearing they also want to mark it up next month as well. So republicans are making Real Progress on tax reform here, but they have got to stay away from selfinflicted wounds. Ylan, fascinating stuff in terms of the developments with corker and yesterday in terms of flakes comments wash scomments what they mean in the shortterm for tax reform but what about the longer term what about the likely candidates for their seats next year . On the surface this feels awkward for the president at best could it mean that they are replaced by candidates that are more favorable towards the president . We dont know what we do know is that steve bannon, who previously was chief strategist to President Trump, has been waging war against republican establishment he supported some nontraditional populist candidates to replace sitting u. S. Senators and congress m congressmen. That could throw a wrench into the tax reform process as we get past 2018. Republicans say they want this done before you get to the midterm elections, they want to go home to constituents and have something to run on. If they dont get this done by 2018, it may not matter who takes their place because this is an effort that would have died on the vine already what about the possibility of more senators coming out with this type of outburst . Is there indication that others are thinking along similar lines . There is strength in numbers. You know, the concern here is that this type of speaking out against the president and being willing to challenge President Trump, that that could Gain Momentum in capitol hill and that more could come out and follow suit. However, yesterday republicans had lunch with President Trump it was sort of framed as a unity lunch. They applauded President Trump at the end of that lunch Mitch Mcconnell was clear in saying that he thinks bob corker will eventually support tax reform at the end of the day its unclear whether or not jeff flake will do the same as a conservative republican, this is something that is near and dear to his heart. You would assume that on policy issues he would continue to vote with the Republican Party. On the politics he certainly has split. A slight unity vote late last night, in at least 50 Senate Republicans added by mike pences vote as well came together to vote down the new rule from the cfpb it shows that the senate can get things done. One of the frustrations for republicans is that bills are moving in the house and stalling and dying in the senate. So that was an example of the senate coming together and actually passing a bill, but you have to remember it was by the narrowest of margins they had to turn to the Vice President in order to break that tie. So the senate can get things done, but its a very tough and narrow road. Thank you very much chinese president xi jinping unveiling the countrys new leaders today. Eunice yoon joins us with the key facts. Good morning good morning this is a sevenman team with president xi at top. The current premiere, li keqiang will retain a spot in the elite club the key takeaway from the other five, these are xis allies and people who worked closely with him in come some capacity. That means xi will further cement his grip on not only the communist party but various aspects of the government. The second key takeaway, he didnt name a successor. Typically what weve seen with the president here, after his first fiveyear term a president anoints someone to take over president xi broke with tradition, didnt do that. Thats been raising speculation that he can interested in pursuing either a third term or retaining some sortof influenc and some capacity to pull off his longterm vision of a reemerging china. Wilfred . The other interesting thing i saw was that premiere li remains. He was thought to be weakened over the last couple of years. Given that president xi removed all the other members and replaced them with his allies, why wasnt premiere li one of those he removed. The other five were all set to retire those posts. So premiere li does still maintain his position. Also whats interesting, as you had said, premiere li has been in charge of the economic portfolio and in some cases people have said hes been at odds with president xi but also another member, his name is wang yang, a vice premiere, hes seen as an economic reformer. So theres some people here, observers who are hoping economic reform and the way Foreign Investors want to see it could still be on the cards. Difficult to say right now president xi has consolidated power and has the ability to push through reforms. And, in fact, in 2013 there was a document which promised that the markets would play a decisive role in the economy however based on what we heard last week in his speech, there are a lot of skeptics out there now because he said he wanted the party and the state to have a lot of control in the economy. Now, what other investors investors are focused on some other aspects of his speech where he said he wanted to build a great socialist power. So by that manying he wants to prioritize narrowing the income gap, making sure he improves and cleans up the environment. He said he wanted Chinese People to have a Beautiful Life and also another priority is that he reiterated again that he wanted people here to have Affordable Housing or housing that is not that is supposed to be lived in and not speculated on. So thats been raising a lot of questions as to what that means for the property sector, whether or not that means more opportunities for developers or could mean a bit of a headache for the investors in the property sector here eunice, thank you very much on todays wall street agenda, a pair of economic reports and plenty of earnings september durable goods earnings are out at 8 30 a. M. , followed by september new home sales at 10 00 a. M. Boeing, cocacola, glaxosmithkline, Northrop Grumman will report before the open as well part of a very busy ongoing week for earnings here. Lets discuss markets further with j. J. Kinnehan good morning to you. Good morning. Lets kick off before we come to earnings, with tax reform given that update from ylan moments ago from washington. Simple question, percentage chances in your eyes of tax reform being passed and percentage of it being priced into markets already i would think that, you know from what i know and obviously its very difficult to get your arms around everything going on there, i think people inside the beltway would say the same thing, there seems to be a desire to get something done i think theres a high probability that something will be done. The second point is how it will affect markets we keep saying whats the one thing that can, if you l upsu y upset the apple cart tax reform could do that, not that its a bad thing, but many people have an unrealistic view of what it can do. I also think a certain percents taj of people are focused on that, theyre forgetting what drives markets at the end of the day earnings drives markets earnings are doing well, but many people are so focused on the tax point of it, it may be difficult to meet expectations lets talk about earnings then whats your take so far in terms of the earnings score card is it doing enough to support the record highs i think it is i think much to everyones surprise, perhaps, it is very interesting to me that we keep hitting new highs. So many people keep waiting for the next shoe to drop. You look at a day like yesterday, you see cat, 3m, mcdonalds t the thing thats interesting to me is greater sales not just in the u. S. But overseas. The real picture painted by so many of these companies, were seeing growth across the globe thats very, very positive overall. After the financials, some people were disappointed but remember, most of the financials disappointment came on the trading end and it was a difficult quarter for trading, as youre reporting on every single day. Overall, if you look at whats going on, these companies are reporting great sales. Caterpillar, a mature company, reporting such a huge outlook growth you just dont see that. Thats more like a Growth Tech Company thats doing things like that overall theres a lot to be excited about. Those industrials, lets touch on that, which significantly supported the dow yesterday, with the likes of cat. Does that encourage you for the broader economy in terms of the exposures those companies have absolutely it does. You know, the industrials are the backbone, if you will. When people start to spend money there what i want to see on top of that, as we hit some Technology Earnings here over the next week or so, are we going to see growth there, too if technology matches industrials, i think were in a great spot overall because people think of industrials as infrastructure i think sometimes they think we come to a place now where technology is infrastructure also if were spending money on both as well as many other products that the Technology Companies have to offer again, well look at what the worldwide sales are. My thought is that we will probably continue to see this trend that it is not just the u. S. , its asia and europe also growing at the same time jj, thank you very much for joining me jjkinahan. Time for our top trending stories. Kid rock is setting the record straight the singer saying hes not running for u. S. Senate. Mocking the people who said who had taken that idea seriously. He told howard stern hes releasing a new album and coming out on tour. It comes after he promoted the site kid rock 2018 in which he sold campaign merchandise. Might be a shame that more positions are available. The kardashians are inking the biggest deal in reality tv history. The family resigning its e show keeping up with the kardashians for another five seasons with a whopping 1 150 million price tag the kardashians will continue filming until 2019 e like cnbc is owned by nbc universal, which is owned by comcast. I have never watched that show maybe i should switching to sports. The Los Angeles Dodgers opened the world series last night with a 31 victory over the astros. Clayton kershaw had 11 strikeouts and allowed three hits game two of the world series is tonight. Still to come on Worldwide Exchange, General Electrics struggles could be putting its dow status in germedjeopardy first a check on european markets which are seeing declines for the ftse 100, slight gains eewrelshe in europee. Co the same way you shop for flights online. I didnt realize at lendingtree you can save money on almost any sort of loan. I consolidated my Credit Card Debt with a personal loan. I found a new credit card with 0 interest for 15 months. You just shop, compare, and save. And its all free. Go to lendingtree right now and start saving. Welcome back to Worldwide Exchange. Shares of monte dei paschi resumed trading today after a tenmonth hiatus following a bailout of the Italian Government shares in the oldest bank in the world last traded in december when bmps had to turn to roechl f rome for help after finding buyers for a rights issue it needed to stay afloat. The stockwe down 65 . Goldman sachs is ramming up its investment to offset recent trading declines Goldman SachsInvestment Bank is going after smaller highgrowth targets. The goal is to go after startups like uber. This is one of several initiatives goldman is launching following a slump in trading that part of the bank is the investing and lending part of the business, it has had Significant Growth in the past not rated as highly that part of the business as others, its more a reevaluation of assets, so that part of the business has a lower multiple on it and is why some question some parts of that 5 billion part of Growth Initiatives as not being as some other areas that are declined. Shares of General Electric fell 2 yesterday continuing a slump since the Company Reported an earnings miss last week. Several analysts downgraded the stock amid concerns that liquidity issues will force ge to cut its dividend. Shares have fallen this year the stock is now about 1 12th of the price of the highest dow component, boeing. The dow prefers a ratio of 10 1. Ge is an original dow member but kicked out of the index twice in the past, 1898 and in 1901 im not old enough to remember those times nor is my next guest, which is joe kernen he joins me from new york with a look at whats coming up on squawk good morning hey, wilf. A lot of Companies Still in the dow that are less than ge, right . Exactly its still the biggest broad Industrial Company whats utxs market cap. Dont know. I think its under 100, isnt it whats 3ms . I dont know. I will tell you i was waiting for my machine to boot up. 3m is 140 maybe utx no, 95. 95 billion General Electric even at current levels at 189 is more than 3m and theres others, im sure, and united technology. Speaking of former dow components, we have International Paper and the ceo on what is interesting is Corporate Tax rates matter to International Paper. This ceo coming on today makes the case for concrete examples of how lower tax rate would help International Paper. Just be much more competitive and sell more stuff to the rest of the World Without being hampered and constrained by a higher tax rate than his competitors. We also have david novak on. He used to run one of my favorite companies, taco bell. He is retired now. He was cofounder and ceo of yum brands he knows about rewarding people. Thats what his book is about. Thats how you get employees to perform, reward. Tell them how great they are i hope cnbc watches. I know mr. Novak a great regular guest. Just watch that, if you say positive things instead of well done good job thank you i got matt quail here. We have rob portman on hes a senator, a mild mannered nice fellow. We will ask him about his relationship with the president. You know, we heard a lot of proselytizing, a lot of sanctamony from guys who were not going to get elected he is under 20 . So thats not a tough decision not to run yesterday but he got a few licks in on the way out. The fusion gps stock, you didnt see it was the Clinton Campaign and the dnc that paid for the dossier . Really i did i didnt know what fusion gps was. I did see that story, which is another interesting one. We look forward to all of this coming up. I bet you on squawk squasquawk box. Still to come, more market discussion with another peexrt guest. Thanks for loading, sweetie. Oh, burnton gravy . Gotta rinse that. Nope. No way. Nada. Really . Dish issues . Throw it all in. Cascade platinum powers through even burnton gravy. Nice. Cascade. Hi, im the internet you knoarmless bowling. Lt . Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Welcome back to Worldwide Exchange. Joining me now is james liu. Thanks for joining us. Dow continues to hit record closes is it being overly flattered by the price weighted index and the moves of one or two stocks that hide other declines taking place . The challenge for investors is there is no cheap asset class around the world the reason the dow, s p 500 and nasdaq continue to make highs is because earnings are strong. The question now is what will happen Going Forward well probably see a 9 Earnings Growth rate for this year, 2017. The problem that the market expects, a 12 growth rate this year, 10 year after that, thats unsustainable you combine that with the fact that the s p 500 is 18 times forward earnings, thats the biggest uptrend weve seen since 19 1997 the market does not look cheap now. So things may not be cheap, on top of that Central Banks are moving towards tightening, the price of money apart from japan does that mean the extraordinary run that the nikkei has, it has attractions that other markets dont have . We think International Markets are more attractive than the u. S. For those investors who only focused on the u. S. , they have done well. Europe, almost 20 gains in dollar terms, emerging markets, 30 gains. We think investors who only focused on one market should be broadening their exposure. We have gdp later in the week what do you expect. We see that coming down to 2 , 2. 5 for the fullyear around 2 . The administration wants to get us above 3 . They talked about the last Quarters Number at above 3 were not looking for a quarterly number here. We need a fullyear growth rate of 3 to justify the enthusiasm out there. We think thats unlikely you have Global Growth the weaker dollar might propel gdp and earnings forward a bit but were late in the cycle. We think Earnings Growth rates will come down and market also look more expensive based on that. Great stuff great to see you thats ifot r Worldwide Exchange. Squawk box is next who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Good morning chipotle shares plummeting after the companys earnings missed the mark we have a rundown of the biggest movers and the godfather of mexican food, david novak, former ceo of yum brands, which owns taco bell hell have a few things to tell chipotle about how to do it right. And meet nichinas new leadership president xi jinping just revealed his new Standing Committee and commented his role as the most powerful leader since chairman mao. And some of the most powerful financial leaders are in saudi arabia and they will join andrew live in rejad. It its wednesday, october 25, 2017, and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box here on cnbc we are live from the Nasdaq Market site in times square. Im becky quick along with joe kernen andrew is reporting live from the future Investment Initiative in saudi arabia. There he is. Good morning good morning, becky weve been having a heck of a time here. We have a lot more to bring you over the next couple hours well get to andrew in a moment back here in new york, our guest host is guy adami, cnbc fast money