For that, we turn to ylan mui. The Federal Reserve will do repo operations through 2020 the fed saying it will purchase t bills into the Second Quarter of next year we know fed officials discussed the need for a plan to address volatility in the overnight funding markets. Chairman powell said a plan would be coming soon now we have it the fed overnight repo operations will be conducted through2020. T bills will be purchased through the Second Quarter next year the fed also pointing out that this is not the same as qe and that these actions will not effects the stance of Monetary Policy back to you. Thank you very much well look for Market Reaction on those immediate headlines as we said earlier, dow up 408. Going to steve liesman, talk about what this may mean steve, you raise the question earlier in the week about what additional purchases would mean. Yeah. So the fed has this issue of continued illiquidity in the market this extends it out, they could extend it again. Theres two things going on. Theyre going to purchase treasury bills, a permanent addition to the Balance Sheet, then conduct repos, temporary operations we talked about earlier this week, they have to turn temporary stuff into permanent stuff. Theyre going to grow the Balance Sheet again. As i said, they said they were going to do it through november 4th. Expecting an announcement of sort of extension on this. What happened is they held a meeting by video conference, fomc did last week, theyre announcing it this week. Unclear why theyre doing it at this time in this manner theyre trying to tell us as they have for awhile that this is not quantitative easing the amounts, carl, are less than before and theyre not designed at lowering long term rates these are purchases on the short end of the curve, carl steve, this idea of temporary to permanent, the extension into 2020 for operations, is that a realistic time line or does it extend out from there . It is unclear how theyre going to handle this there are two things the operations themselves are temporary, but temporary operations they make are also temporary in the sense that theyre doing these overnight. They go purchase them overnight. But they expire. What the fed needs to do to do what powell told us needed to be done, which is to get the Balance Sheet back to the sort of Early September time period is to make purchases for its Balance Sheet to bring it up permanently, not overnight repo operations where they expire and go off Balance Sheets the next day. They need to make it permanent, which means they need to make purchases. And this seems to me among the first times that theyre sort of announcing theres beginning of a permanent operation. What i did not have time to do, i know that all the real fed wonks, people looking at the inner plumbing want to know how much is all this going to be, is it going to keep going the way it was, is there some acceleration, whats the timing of this. And the market is going to care. Guys on fixed income will care about the deep pacing and amounts. Seeing some characterizations that theyre pulling no punches, is that how you see it theyre being pretty forceful im not sure the market expected this today tuesday, i forget, we got the comments from jay powell, said this had already been decided, and the question i had, when did you decide this. Now we know today they decided last friday, had what appears to be some special meeting. Not clear why it is sort of being handled on an emergency sort of level. I dont know if this is exactly like they did business during the crisis, but they did have a special meeting, making a special announcement today i assume they felt like it could not be handled in the regular meeting coming in two weeks. Im a little surprised how they did this, but yes, theyre moving relatively forcefully session highs here, 429 on the dow. Back to 2986 steve, thanks. Talk to you in a bit steve liesman. Stocks surging to close the week on renewed trade hopes obviously all attention is in d. C. Thats where Kayla Tausche is stationed. Good morning reporter good morning, carl. We saw the treasury secretary exiting the office of the trade representative about two hours after arriving this morning. Secretary mnuchin is leading negotiations on the currency pledge portion of the agreement. Those talks have been under way for several months we asked if there had been an agreement reached. We did not get response from the secretary. The optimism in large part is not only from some sentiment out of the room through various sources of ours and media outlets, but the twitter feed from the president , has been touting warmer relations between the two countries, saying all sides want to see something significant happen some of that warmth exhibited earlier today from the chinese delegation to ambassador lighthizer, whose 72nd birthday is today some is because two sides are in agreement on a handful of call them action items, were not sure what format they will take later today. Currency pledge as i mentioned, potential agricultural purchases, waivers for Business Done with huawei by u. S. Suppliers, and also some market openings on a handful of industries, a few of which we saw china announce a timetable for earlier this morning theres a question as to whatever is announced, waters will be muddied by the president s comments about desire for china to investigate his political rival, former Vice President joe biden. He rerchlsed chinas ability to investigate whatever they want yesterday. Theres suggestion by outside advisers that he has been discussing that with china and well see if we can get more eveon what transpired later today. Thank you tech one of the big winners as apple hits a new alltime record high. Josh lipton is in San Francisco with more. Josh reporter morgan, tech has been the place to be for investors this year. That sector surged more than 30 now. The best performing sector by a long shot. Look at the chips, specifically the smh. Etf that tracks the chips in the green, surged 40 this year. Approaching the alltime high of 123. 56 semis move on trade headlines. It is a vital linchpin in supply chains qualcomm, micron, broadcom, Texas Instruments getting 40 to 60 of revenue in china. Optimism is rising a u. S. china deal is coming they reportedly plan to allow some supplies to huawei. Back in may, the administration restricted sales to the chinese tech giant, citing concerns about national security. Thats important they estimate huawei spent more than 10 billion alone on u. S. Semiconductor components another tech company sensitive to trade headlines, apple with an alltime high, up nearly 50 this year. China accounts for an estimated 12 of revenues for the iphone maker, critical part of the massive supply chain where millions of chinese work to assemble the companys products. Back to you. So much news on the Company Thanks so much dan isaac upgraded happy friday to upgrade alltime highs, give us the thesis. This is really obviously it can be bullish. This is raising price target near to 260, 265 for starters. It is all about iphone 11. We think china is tracking 20 ahead of expectations. Thats something thats putting fuel in the tank and look at Services Services could add 15 a share to the stock thats why this party is just Getting Started with apple i see new alltime highs as we roll through earnings. Chris, where do you stand on apple, given all of the trade talk headlines were getting, does that change anything . They have been bullish on apple since we initiated mid march. I think it hinged on services and it is bullish on that. What we have seen at the margin of the last couple months is sentiment positive on the iphone i think thats kind of being added to the stock one of the things when it comes to iphones, a more tangible handle on whats going on. I think the bottom line is we are bullish on the name, theres still a lot of runway, seeing extra juice in the last month because of iphone momentum and then last few days because of trade war momentum back to the phone itself contributing is it going to be services, accessories and things like that i think now, the rock of gibraltar continues to be the iphone ultimately theyre going to need to put a fence around the install base in china. It will continue to be the core dna of cupertino in terms of where growth comes from, thats services. Thats where we think on the streaming side they have opportunity to get 100 million subs in the next three to four million years. Thats the fuel in the tank in the one, two punch what happens if we get some limited within the china trade talks and potential for some sort of deal or at least pause in tariffs now, if huawei has a piece of that, the idea that u. S. Suppliers can sell some components once again to that chinese company, what does that do to the calculus for the semi stocks i mean, for semi stocks, it will be positive given the fact that huawei is a big part of supply chain for semis. At the end of the day, huawei has been a big competitor for iphones in china, continues to be i think what will be interesting is next year apple is supposed to come out with a new product, low cross low price version of the iphone at the margin, that could be more competent in price sensitive geographies, india and china where they have a big market share bottom line, the semi ecosystem, the new iphones are very competitive with the huaweis in price sensitive geography. Theres still debate whether 5g is going to be enough of a selling point to the consumer in terms of how it changes the phones performance. Where are you on that, and if you believe like some it wont change performance, is the cycle were in enough of a bridge . Thats a great question i continue to think that the phone right now in terms of 5g, it is going to ultimately be the applications and technology which dont come until 2021. When we look at 5g, we view it as a super cycle going to 2020 for apple, but right now, the name of the game is a third of the install basis in te is in t process of upgrading thats surprising the bears. If you look at this cycle with 5g combined, thats a super cycle. Thats why i view this as a stock that will get rerated and with services. And right now, theyre the poster child for the u. S. china trade war. 20, 25 overhang on apple. You remove that, the stock will go much higher here. Were starting to see a little of that today as apple is up almost 2 thanks, guys well watch it closely when we come back, expect more volatility in internet stocks thats the latest out of barkleys dow up 415 were 15 points away from 3k dont go anywhere. It begins with a distinctive approach to managing money. That for over 85 years has focused on keeping confidence up when markets are down. An approach where Portfolio Managers work well independently. And even better together. Who dont just invest, but are personally invested. Can i find a proven approach designed to deliver results . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Welcome back to squawk alley. Sticking with todays rally, the dow up more than 400 points, hovering near session highs. Up 437 points. The s p is up 49 joining us, luke ventures founder, managing partner gene munster and mike santoli good morning to you both mike, session highs here, make sense . It does as a tension release. Market has been capped, perhaps entering some escalation or now deescalation makes sense where we have been we finished september around 3,000, went down a few percent, giving back, retaking the same few percent. It makes sense given how subdued Investor Sentiment is. You have a lot else going on treasury yields take flight. Uninverted the curve a lot of things we harped on are sienls signs of risk of outlook are less and removed i think thats why you have a relief trade today. Gene, across the tech universe, so many names are rallying in the midst of broader trade optimism what names do you like and would you be playing some of these potential trade headlines now with stocks or would you steer clear . I think the trade is going to work itself out. I would largely steer clear. To answer the question where i would be investing, ultimately i think at the top of the list is apple. I realize the previous segment addressed that, but some of the commentary around why the story can be much greater i have a different view i would assess most of the street, including last segment as more or less the same view around apple, that this is a product cycle story. Obviously the iphone is important, but i believe theres 50 up side to apple stock in the next couple years, more or less 350, based on what is a shift to investors, viewing this as more of a Consumer Staples company. This is the only company to bring together hardware, software, services if you give it cocacola, Procter Gamble multiple, thats where you get to that i think it has measurable up side, as a former south side analyst, i was getting nervous putting a price target too far ahead. Analysts are inching ahead of this the reality is they need to take a fresh look i think that will yield higher price targets. The other controversial story is tesla. Elon musk is a flawed personality by all measures, but what theyre doing in terms of tapping into the electrification curve is going to ultimately yield increased value of tesla in the next year interesting a name that has the highest percentage of sale ratings, not sure yes lost the benefit of the doubt on the sale side there wasnt a lot to hang on once it lost a lot of the momentum that it was really going to be ramping volumes more than expected. It is idiosyncratic. It doesnt reflect anything but teslas fortune and sentiment around it. Even apple to be honest with you, im on board with the idea it is about people were quite cautious as it reapproached highs. Now you have people sort of incrementally ramping that up. But i dont think it tells you tremendous amount about the overall market i mean, day is not over the market wants to hear that tariffs tuesday dont go up. Thats basically to me the toggle removal of tariff threat, is there no longer an overhang, something to worry about, even if it is deferred. Think about what happened first half of september. The market went up after the fearful august and it wasnt because trade was fixed, because we had a date on the calendar, looked like possibility for more positive than negative i still dont think trade is the ultimate swing factor for where the market ends up, but interim restraint, especially on sentiment and risk taking. Gene, the other story, earnings season kicking off. The first one is netflix what are you expecting not good. I think they guided for a rebound in subs after a difficult june quarter not sure how september plays out. Based on some loose commentary, the stock has reacted in part to this they have a more apprehensive view than december the two big competitors wont be in the market when they do an earnings call, apple coming in the next few weeks here. I suspect guidance will be a little choppy. Keep in mind this model is effectively upside down. I agree, this is a great service. Netflix will be around a long time, but they have 12 billion in debt, funding content cost with debt. Theyre essentially trading dollars for dimes when it comes to content spend versus subscriber revenue for that model to work, you have to raise pricing theyve done it eight times in four years probability of price increase was reduced dramatically in the last few months with the new competition. So i suspect that this will be a tough road i dont see it being a great stock. Goldman had a great chart, looking at their user base and pricing in the past few years, even as they had some streaming competition like they had the sandbox completely to themselves. Thats true i think the question, sub growth is still extremely important the other way that you can get to the model working, of course, price increases would be great if you double the sub base, you start to have network effects. You can scale it a little, presumably but the market is no longer confident theyre on a path to subs the doubts come in how fast they get huge as to whether or not people like the service and keep subscribing. Well leave it there. Thanks for joining us on a day when so many stocks are rallying private markets continue to be a big story 75 billion startup that investors are watching out of china. Julia bo Julia Boorstin has more. Reporter china based pytedance has investors, including sequoia, softbank. They have apps other than tick tock which they launched after buying and branding musically. They own a selfie app, and indian social media platform called helo. They uchg 1. 5 million users u. S. Based tick tock sells branded hash tags for chipotle or guess, and is experimenting with in app ads. Despite half a billion down loads of tick tock, the Company Faces significant risks. Content creators can create sponsorships or be ticked by fans but they dont share ad revenue the same way youtube does, which raises risks that creators could leave the platform for youtube, one reason that twitters vine shut down twoandahalf years ago. Plus the issue of tick tock chinese ownership, the fact it censors ideas critical of the government, prompted marco rubio to call for government review of their ownership of tick tock they have been fined nearly 6 million to settle allegations it illegally collected personal information from children, it is an area the company promised to ramp up protections in order to avoid more regulatory scrutiny back to you. Julia, thank you for bringing the latest tech is a big part of todays gains. Trade hopes whip chips into shape. Nasdaq up 1. 9 now here are names leading the nasdaq higher. Ctrip and jd. Com were back in a moment introducing even more value from fidelity. Fidelity now has zero commissions for online u. S. Equity trades and etfs. And fidelity also offers zero account fees for brokerage accounts, plus zero minimums to open an account. And only fidelity offers four zero Expense Ratio index funds directly to investors. With all of those zeros, there are zero reasons to invest anywhere else. Fidelity. So maybe ill win saved by zero what is the internet worth to you thats the question the fed is asking ylan mui has more from washington hi again hi, carl. A question i never thought a fed chairman would ask how much would it take for you to give up facebook for a month . The chairman has been digging into recent research from mit. The median answer in the u. S. Is 48. To compare, they surveyed students in europe how much they value popular apps in todays dollars, giving up whats app would take 592 it is such a part of daily lives. Instagram would take just seven and a half dollars, a month of snapchat is worth over 2. You mention the reason the numbers are so interesting to the fed is because all of the official Government Data that we track closely, they do a bad job of capturing Digital Economy gdp is not what we would expect during expansion. How do you value the luxury of never asking for directions or the peace and tranquility from speedy resolution of contentious arguments over trivia of the moment clearly, theres work being done inside and outside the central bank to answer the questions. Back to you. Two words i wouldnt have expected in the same sentence. Really interesting thank you. European markets are closing. Seema mody has a breakdown of todays action overseas. Morgan, working off trade optimism in d. C. And also possible brexit deal all of those factored into european stocks. Big moves there with the german dax up 3 . Donald tusk says the irish leader and uk Prime Minister saw for the first time a pathway to a deal one of the points of contention has been the irish border. Morgan stanley says the chance of a brexit deal is at 55 , up from 35 jpmorgan says we now expect a deal were seeing big moves in the uk, not just in the uk pound but major banks that are based in london, royal bank of scotland, hsbc, barclays, outsized moves in the uk stock market, particularly in the Financial Sector yields are rising across europe. Thats lending support to some major european banks as well the sector on track for the best day since april of 2017. One outlier is hugo boss, falling to the lowest level in nine years on a profit warning, pointing to weakness in the u. S. , and unlike lvmh which had strong results despite unrest in hong kong, they say profits were heard from the protest, less demand from tourists, and persistent macro uncertainty, closing down around 7 what was otherwise a strong day for european stocks. Strong all around so much news thank you so much. Speaking of news, lets get an update with sue herera at hq. Good morning, carl. Good morning, everyone heres whats happening at this hour a federal Appeals Court ruling president trumps financial records must be turned over to the house of representatives it said lawmakers should get the documents they subpoenaed from the firm that provided Accounting Services to trump former u. S. Ambassador to the ukraine, Marie Yovanovitch arriving for a deposition in the impeachment inquiry. This despite president trumps position his administration will not cooperate with the probe yovanovitch was recalled from her post in may. Two missiles struck and iranian tanker off the coast of saudi arabia the ship is reportedly carrying some 1 Million Barrels of crude oil. The driver in the crash that injured kevin hart was driving recklessly thats what investigators are saying about the crash which happened last month near malibu. Jared black lost control of the car when he sped onto mulholland highway. Youre up to date. Thats the news update this hour back downtown to you morgan sue herera, thank you. A check of where we stand in todays rally. Keep climbing to fresh session highs. Dow up 487 points. S p up 53. 2992 is the level there. On pace for gains for the week, and also with todays rally, we erased losses of october dont go anywhere. Back in two. The biggest challenge of. Owning and running a Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow we are a few points away from 500 points on the dow lifted by hopes for progress on u. S. china trade talks and other pieces of good news. Does the rally have more room to run . Diane swang is here and david zerbos i was making a list of things, how much faith are you putting in a day like today . I dont put too much faith in any one day. I look at the trade situation, im glad we wont see a scheduled hike in tariffs, but this doesnt resolve anything, it doesnt lift the veil of uncertainty. The hard mile to cross, intellectual property mile, not the 20 theyre offering, thats not going to happen anytime soon i am concerned about that weighing on the economy. The dow is just about at 500 point gains today. The markets seem optimistic. We have been in a tight range the last year, if not year and a half is this enough from a market standpoint of a catalyst to move to the up side i think the big story today is, i agree with diane, the trade story is very much influx. The fed announced theyre going to buy basically somewhere around 400 to 450 billion of treasury securities and do another 150 billion in repo operations on a regular basis. And thats in the next six months thats a sizable amount. We are bordering on what we did in qe 2. It is adding immediate liquidity. People are probably reacting to that in a way thats not theyre not overreacting yet, but reacting to it correctly that thats a sizable easing in financial conditions thats been announced by the fed, and it is a little stealth it didnt come out in a statement or in a big hoopla of a typical fomc meeting theyre trying to make it technical, but it isnt that technical. It is technically similar if not identical to much of what we saw during the qe period thats a huge catalyst for the market is it enough to overcome some other issues that we have out there related to trade, slow down globally, all oe stuff in Hong Kong China and relationt 3,000, around there, which is where we were the beginning of the summer diane, we have been having the debate for days now. Is this qe or not, the fed is adamant saying it is not. It is not it is interesting. The fed did this before we got to qe. They were buying and increasing the size of Balance Sheet, keeping it constant as a share of the economy it was by default, they thought they misread things when they got the big Balance Sheet how far they could go back down and learned the hard way i wish they werent in the news the week they had the last meeting and powell actually did a great job at the press conference i wish it wasnt the repo market they want to be nonexistent. This is how they can be nonexistent. It means they have to organically, technically grow the Balance Sheet to accommodate the needs there, given where we are. Were never going back to the world we were at this is the new normal, it will be constantly setting a new normal they knew between 1. 5 and a trillion in reserves they were taken by shock by that are we trading in that kind of uncertainty for Political Risk in the new year and we keep hearing with increasing frequency concerns about margin, wage pressure, downgraded delta today for that reason. What do you think . Look, i mean wage data that came out, average Hourly Earnings broke down below 3 cpi missed to the down side, ppi missed to the down side. The other piece of information thats important for the market to digest came in fed minutes about how theyre thinking of changing framework and makeup strategies that was an important piece of information. In q1, we may get a framework change my base case is that they sort of announce it, but delay it i think a real framework change would cause significant easing in financial conditions. You need to get more rate cuts or more qe in the system if you want to make up for all of the inflation misses of the past three to five years, or certainly whatever number they decide i think they dont necessarily want to do that in election year, there will be a lot of politics, political jockeying around that. But the fed will do it maybe it is a 2021 event, it is a positive story line from financial conditions and for the market in the long run. You can forgive viewers being confused then. Core is running an 11 year high. You ask people, when you talk to main street, they say what do you mean inflation is too low. They dont get it. The fed hasnt come to consensus. This is a real issue the idea of what is symmetry and inflation target you can talk about it in financial markets, but the reality nobody gets it on main street it is one of the reasons jay powell is hiring a speech writer. Saw that job opening. Job opening to be more plain spoken to speak to main street and also make sure messaging, all of the work the fed did internally, if we do catchup strategies where we overheat, run a High Pressure economy, they dont work unless you communicate to the public. Thats one thing the fed does poorly. Diane, you have rate cut odds dropping amid this market rally and optimism that well get some sort of truths if not deal on trade now. Does the fed cut later this month . I wish i knew that exactly. I dont think they do now. But it is contingent on everything we get between now and then, retail sales, gdp is less than 1. 5 in the third quarter. I think they hold their fire until december, i think we have a weak fourth quarter, they need to give an extra boost we still have to get new nafta passed all of those things play in. I think we get a pass on october. But thinking about it, meeting is october 30th. October 31st is brexit or not. Right now it looks no. Given all the Different Things we talked about the last couple minutes, where are stocks headed through the end of the year i dont think we have a huge break out to the up side i do, however, i would be more optimistic on a rate cut in the october meeting. I think the inflation data this month has been pretty terrible especially with the Unemployment Rate dropping to 3. 5 . Fed models look like they have no clue in forecasting inflation in terms of phillips curve and all the stuff they use there doesnt have inflation hitting 2 until 2022. Whats the point in keeping rates down they did an aggressive move in bringing this kind of stealth qe into the system. I think the proclivities there are more likely to move them toward doing something than not. If we get a run up in stocks or trade deal, that will make it a harder decision. But the idea we get a real trade sort of solution which is what diane said in the beginning of this, i dont think we get any Real Movement on a trade deal. We might get nice headlines, i dont think we get that before the fed meeting. Trump doesnt want it, might dissuade them from cutting thats not the way to do it, but thats another issue good to have you both always a pleasure. The biggest winner so far in todays rally, thats next first, Rick Santelli, what are you watching today im watching the yield curve. Earlier today we were up solidly across the week. Right now, were up 21 basis arints, 23 basis points on ten ye notes huge well talk about huge after the break. Us fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Heres whats coming up top of the hour. Live in washington for the latest on trade talks. Markets are clearly banking on a truce of some kind well debate what it means for your money and we ask number one apple analyst how high shares can fly on the day the stock hits an alltime high. Call of the day is one of cramers cloud kings find out what the Investment Committee thinks about workday find out at noon on the half were ten away see you then scott, thanks. Few moments ago, saw the chinese delegation leave the ustr office in washington, d. C. After arriving around 9 00 a. M. Eastern time this was shot a few minutes ago. Well continue to monitor this we expect an appearance in the oval with the president and vice premier. Last i saw was maybe 2 45 eastern time before market close. See if that stays on schedule. And whether or not what we hear from the meeting can keep the rally alive today. Absolutely. Keep our eye glued to that lets get to the cme and Rick Santelli rick not only has it been a wild week for Interest Rates, actually a couple of weeks, were seeing them actually start to really cook in grease proof, look at a chart of tens minus twos a great chart. This one month chart really exaggerates and shows how much more horsepower the long end is getting. As a matter of fact, earlier today it was a tight match between improvement on the short and long end of the week now starting to outdistance itself now, up 22, 23 basis points on tens, up 15 basis points, sorry, up 17 basis points on twos heres the thing theres way more going on in Interest Rates, not only in the u. S. But globally than trade and brexit trade and brexit play a big part in this to be sure but stocks do as well. It really is the response of the stock market in many ways to news regarding specifically trade, i think thats coat tailed back into the hook up between Interest Rates and stock prices and i talked many times, theres always a fear of rising rates. If you pair it with more confidence, solid economics, even if theyre not as solid as they have been, as long as theyre not deteriorating more, and of course positives on trade pushing stocks, lets look at proof of this. Look at s p on top of tens, one month chart. You can see the way the correlations see the way the correlations are getting iffy. Now, look at the oneweek chart. They are definitely hooked elbow to elbow. That is a good thing. Now, the other issue thats big, of course, is brexit. Brexit is having an effect especially on the fixed income side. But all of these effects are adding into what i think is the biggest issue, and that is the constant drum beat by the street, by investors, by many that negative rate is just a negative profile. You can try to research it all you want. Its not a good dynamic for finance around the globe. Central banks are paying attention. The fed has had a couple of chapters of trying to address overstimulation. Now maybe the burden gets more complicated especially if europe and maybe japan are rethinking strategies. I like this chart a lot. This is tens and bunds one month. Thats something to totally Pay Attention to especially during the handoff. Back to you. So much to get to today. Good stuff. Rick santelli. This years delivering alpha conference reunited activist shareholders after the years long proxy battle. We ended up getting to a place that the end of the proxy contest where it was clear that investors supported our strategy, supported our board and supported nelson. So we did what we thought made sense. The fact is its over. Thats the most important thing. The fact is that we are working so well together. Youve got a company today that is really doing well. Hear more from the biggest names in business at deliveringalpha. Com. Markets in rally mode today on the elevated hopes of some sort of trade deal with china. The dow and s p are up 1. 5 today. Have also erased the losses of r. Tobe we have more squawk alley in less than three. Hi, my name is sam davis and im going to tell you about exciting plans available to anyone with medicare. Many plans provide broad coverage and still may save you money on monthly premiums and Prescription Drugs. With original medicare, youre covered for hospital stays and Doctor Office visits, but you have to meet a deductible for each and then youre still responsible for 20 of the cost. Next, lets look at a Medicare Supplement plan. 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And your doctor and hospital may already be a part of humanas large network. If you want the facts, call right now for the free decision guide from humana. There is no obligation, so call the number on your screen right now to see if your doctor is in our network; to find out if you can save on your prescriptions and to get our free decision guide. Licensed humana sales agents are standing by, so call now. Welcome back to squawk alley. Dow is up 420 points right now off the highs of the session so far, but still a gain of 1. 5 . Its a similar story for the s p. The nasdaq up 1. 7 . Its really materials, industrials, financials and the tech stocks that are leading the gains, as we get these trade headline, hopeful trade lines, i should say and as we await the vice premiere showing up at the white house. Keep our eyes on the white house and wait for what we think will be his arrival in the coming hours or minutes. Meanwhile, levels here, 26,916 is where the dow began the month literally within two or three points of that right now. So october is literally at break even for the dow. Aside from that, though, positive across the board. Dows session high was up 499. You couldnt ask for a better recipe of bullish headlines, whether it was china trade, progress on brexit, the fed adding liquidity. It was very strong not just on expectations. Volatility, vix at 16. This is what the bulls have been fighting for for a long time. Problem is, it just gets you back to where we have been beneath for the month so far. Just a really great way to put that in context right there. Gold and silver are selling off here. Crude is higher after we saw the attack on an iranian tanker. Also, other commodities are moving higher. Copper and agricultural names are having a strong day. Pentagon this morning saying it will send a large number of Additional Forces and equipment to saudi arabia. That includes air defenses and fighter aircraft. I have seen figures in somewhere in the neighborhood of 1,000 plus personnel. So we will continue to watch whats essentially been a small wramp up. It also speaks to how much weve seen in terms of headlines and activities in that region on the geopolitical side of things, as well. Busy week and a big oval office meeting. So much more to come. Were looking forward to all of that. Stocks surging on hopes of a trade truce. Is a major break through within reach . It is 12 00 noon. This is halftime report. Round 13 of trade talks. Will it be a lucky one for investors . Apple hitting new alltime highs. The stock now up almost 50 this year. The number one apple analyst on the street tells us where the stock goes from here. Earnings season kicks off next week. Why it may not be as bad as many