Transcripts For CNBC Worldwide Exchange 20240713

And its the final frontier meets wall street as sir Richard Bransons Virgin Galactic makes its Public Market debut today on this monday, october 28th as Worldwide Exchange begins right now. Space cowboy well, good orning, good afternoon or good evening and welcome from wherefover in the world or galaxy you may be watching im Brian Sullivan your chart of the morning has got to be shares of tiffanys, theyre surging nearly 20 right now. French retailer lvmh confirming it is in preliminary talks with the company about buying it. Lvmh would become the undisputed global king of luxury if the deal happens its still an if but the market buying into it as soon as that headline broke, boom, 19 pop in shares of tif well get more on the story coming up. But first, overall, theres certainly a lot of green on the screen this morning to start your week. We have dow futures up, not a lot but up about 50 points right now. Nasdaq, technology is what you might want to watch because actually kind of quietly, dont tell anybody, the nasdaq coming off its best Weekly Performance in a couple of months. And on friday, the s p 500 came within 1 point of its alltime high certainly could get there today. Bonds, stocks have gone up, bonds have come down a little bit but not a lot. Tenyear note ticking up a bit to 1. 83. Still well lower than what it began the year watching bonds and stocks today. We have been talking a lot on this show, you have to watch japan because the nikkei 225 hits yet another gain and a new 52week high today well show you a chart later on in the show the Chinese Markets are also higher despite the 21st straight weekend of protests in hong kong the markets there dont care obviously the Chinese Government perhaps supporting their equity markets and shanghai and hong kong, both rising. 8 of 1 and notice the trend in europe, we have slight gains across the board as well. It flipped i stand corrected. How about this, the German Market is showing a gain this morning. The rest theyre down very, very fractionally. All right, that right there my friends is the setup things could certainly change on an earnings dime because this week is a big week for many reasons. First, you might have heard about these earnings well, this is the busiest week for them more than 140 s p 500 companies will release their numbers 6 dow names also on tap this week but its not just earnings the economy and central bankers also front and center. Wednesday is your fed meeting. The fed could cut Interest Rates again as well as continue to expand their Balance Sheet now on friday, you have the monthly jobs number. Though keep this in mind, im not trying to take anything away from it, but the gmstrike figures are likely to alter those numbers. A lot of people out of the work force from the uaw for the month, that could tweak the numbers just a bit either way, earnings, the fed, jobs number and some key inflation and manufacturing data toward the end of the week, thats your setup. All right. Then theres trade news. The u. S. And china appear, appear to be moving closer to a phase one deal chinas price premier spoke with u. S. Trade rep Robert Lighthizer and Steven Mnuchin on friday reports from chinesestate run media and the american side both suggesting some progress deputylevel talks are set to continue all right, with all of that in mind, joining us now with your setup and maybe how well end the year, ubs Wealth Management jeff yu thank you for joining us from london. Good morning. I should have probably thrown in the continued brexit negotiations into that mix i mean, but literally run out of time if we did that. To your markets and ubs, what is more important for Global Equities is it the trade deal or how brexit ultimately plays out . Absolutely the trade deal so, that impacts globally. A lot of the, quote unquote, good news or the stable news we can get from brexit, thats already in the price were bit of a Holding Pattern right now and markets are just focussed on when we can get an election thats our base case, election and then we can figure out what happens to brexit after that but in terms of global performance, what were telling our clients, absolutely focussed on trade. Okay. What happens if the trade deal goes south, both sides walk away without a deal i think that would be the biggest risk to Market Performance at this point and our location is not calling for both sides walking away. Its just were a bit more muted on the potential for something very comprehensive this is a phase 1 deal, even if its signed, all tariffs are removed, doesnt mean we can go to a phase 2 deal very, very quickly. Its just no escalation and you know that should be enough to keep things ticking along, but we have been here before theres a chance of things falling apart and just want to be a bit more on the defensive side especially heading into year end. Do you believe then, geoff, the u. S. Markets in particular have already priced in a successful resolution to trade . I think not only that, its just a nonnegative resolution to trade in the shorter term and also heading into next year on a forwardlooking basis, we just caution whether theres any more good news to price in for earnings were looking at 5 earnings on growth and for next year nothing spectacular, probably going to outperform a lot of other markets especially europe, thats why were overweight u. S. Relative to europe at this point we own some protection rather than own outright growth. Youre more optimistic about the United States stock market than the european stock markets. How much of that, if at all, geoff, has to do with federal cutting rates . Everything is relative and clearly the Federal Reserve will have much more fire power compared to what europe can achieve. Europe we have this issue of the handover people are still trying to assess what the lagarde ecb president going to be about monetary or fiscal, she was a former finance minister afterall if we want to focus on Monetary Policy and its positive contribution to equity markets, clearly the u. S. Is much more credibility, has a lot more room to go. Geoff yu, ubs from london a great pleasure and have a great day and great week and see you soon. Thank you. Now to your top corporate story and what was an announcement really nothing short of stunning. Microsoft beating out amazon in the competition for a multibillion dollar cloud competing contract from the pentagon Contessa Brewer here this morning and joins us more with more on this good morning. Hi there, brian the pentagon awarded a lucrative contract known as jedi to microsoft. Amazon had long been considered the favorite for the deal which could be worth 10 billion bucks over ten years more than 5,000 Government Agencies use amazon web services, which is certified as the highest security clearance level, but the victory highlights the rise of microsofts azure cloud as a major challenger to aws. Azure scored another multibillion dollar government contract in august and also a huge win for microsoft ceo who used to run the Cloud Business in a statement friday, microsoft, says, were proud were an integral partner in d. O. D. s Overall Mission Cloud Strategy amazon saying, quote, were surprised about this conclusion. Aws is the clear leader in Cloud Computing and a detailed assessment purely on the comparative offerings clearly lead to a different conclusion the bidding process had been contentious. In july President Trump said he was looking at the contract after companies had protested. The president did not mention amazon Ceo Jeff Bezos by name but repeat lid criticized amazon over taxes and other issues and, of course, doesnt like the washington post, which belongs in that portfolio. Microsoft shares up more than 3 in the early trading this morning. Brian . That is a big contract and a big move for microsoft, which is a trillion company by the way. Thank you very much. We are just Getting Started on this very busy monday morning. When we come back, wall street again on record. Watch stocks look to hit alltime highs today were one point away on friday will we get it today plus, more than 50,000 acres burned more than 80,000 structures threatened california continuing to feel the brunt of the kincaid fire. Live to the region next. Later, the worlds most wanted man is killed. Youre live in dubai when we come back. Ud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back and good morning. 5 12 here. 4 12 a. M. In chicago you can see some taxis already out. Well get back to chicago in a few minutes. We have jeff killburn coming up. I dont know if jeff is listening already, he doesnt have to worry, hes not a notre dame grad. Im not going to bring up the michigan game. I just did here is how your money and investments are setting up their monday morning we came within one point, one point of hitting all new time high on s p 500 on friday. Futures are up we just need one point will we get it well find out today well watch that markets. In corporate news, it could be, could be, a very big day for mergers and acquisitions activity french luxury retailer lvmh confirmed it is preliminary takeover talks with tiffany. Brands includes louis vuitton, has offered 120 a share in cash for tiffany. That would value the company at 14. 5 billion. Investors, they love it. Tiffany stock right now is up 19 this morning, still not at that 120 the market leaving arbitrage room there but tiffany is soaring up 18. 5 bucks today. Louis vuitton, spending a lot of money, their shares are mildly higher,. 3 of 1 meantime, warehouse giant has agreed to buy Liberty Property trust for 12. 5 billion. The deal would expand prologis they launched a probe into united health. The wall street journal says the investigation focuses on an algorithm used by the company that allegededly prioritized care for healthier white patients over sicker black patients the New York Times reports meantime that boeing helped to craft a law last year that undercuts the governments role in approving designs of new airplanes. Reports says the company and its allies shaped the language of the legislation to their liking. Overcoming criticism from regulators, including the faa. Still on deck, the polls, theyre open we want to hear from you do you think the s p 500 will end the year higher, lower or around where we are right now . Head over to my twitte sullycnbc the results jeff killburn and much more on the markets coming up in a few minutes. One of the products i helped develop was a softer, more secure diaper closure. As a mom, i knew it had to work. There were babies involved. And they werent saying much. I envisioned what its like for babies to have diapers around them. Thats what we do at 3m, we listen to people, even those who dont have a voice. At the end of the day, we are people helping people. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. And less food goes to waste. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Welcome back 5 17 here 2 17 in the morning and we have a developing story out of california where governor Gavin Newsome declaring a state of emergency. The kincaid fire continues to rage nearly 3 Million People are now without power in the region. Joined with more from napa, california jennifer reporter yeah, brian, about 200,000 people have been chased out of their homes, theyre in evacuation centers, sleeping in cars most of those evacuees in Northern California and many sleeping in shelters like the one behind me. Reporter Northern California, fire is racing across the landscape i can report to you that this is still a very active fire. Reporter the kincaid fire north of San Francisco is beasting on hurricaneforce winds, more than 3,000 firefighters are working to put lines around the inferno thats already scorched tens of thousands of acres currently the fire edge is somewhere just south of the community of windsor near shilo where our resources are actively engaged in both perimeter control and tent set structure defense. Reporter nearly 2. 5 million are without power. The governor declared a statewide emergency. We have been battling fires all up and down the state now for close to a week. Reporter mandatory evacuations have forced thousands of californians to get out of harms way. I care about my life, his life, the persons life who live around us. Reporter some people who have been ordered to leave dont have a destination. We knew we needed to evacuate we had no idea where to go. Reporter the kincaid fire is one of several burning across the west and forecasters warn conditions remain ripe for more. We are expecting about 24 hours period of lighter winds. Thats the good news the problem is its going to kick back up again tuesday in a big way. So the hope is that fire crews can get gain a little ground on especially this kincaid fire in the north and hang on to that ground when the wind kicks back at them. Im jennifer be jorkland live in napa back to you. Jennifer, we proesht it tough times out there. Straight ahead, the worlds most wanted man is dead. Isis leader albaghdadi taken over by the u. S. Troops killed in the weekend more details later ahead. Later on, dressing up to go viral in how instagram is making halloween retailers very happy do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Wyou can see relationships. Gy, connections. Patterns. You can see what others cant. Welcome back new details continue to emerge following this weekends raid by u. S. Forces on isis leader abu backer albaghdadi President Trump announcing yesterday that albaghdadi was killed in an operation in syria. He killed himself and three of his children with a suicide bomb vest we have team coverage. Hadley gamble in dubai tracie potts in washington hadley, let us begin with you as more details continue to come out on this stunning raid. Absolutely, brian this is a story, of course, that ive been covering quite closely over the last several years. The president essentially saying that isis leader Abu Bakr Albaghdadi died, quote, like a dog, whimpering, crying and screaming according to President Trump from his press conference yesterday. Now, just to give you a quick few details on what we know at least so far about this raid, essentially, u. S. Special forces moved in to Northern Syria around 5 00 p. M. On saturday and they tracked abu backer albaghdadi into a tunnel where he detonated a suicide vest that killed hm along with three of his children the president in his press Conference Also noting that other countries were instrumental in making this raid possible, russia, syria, turkey as well as the kurds were thanked in that press conference and later members of the russian government coming out and saying we werent aware that something was happening in Northern Syria that was involving the United States so a lot of questions about this concerning the International Community and how much support there was for this raid, but at the same time, folks here in this region talking about what this actually means for the Islamic State itself now again and again, we heard the president say that the Islamic State is no longer a viable terrorist entity that the caliphate has been defeated, but we know very well from our reporting and nbcs reporting among others that there still remains cells of the Islamic State and the big question Going Forward is how effective theyre going to continue to be as a result of the loss of their leader brian . Well, i wonder, hadley, listen, the president took a lot of heat the last couple weeks over this seemingly flipflopped policy in turkey with syria and one wonders how much of that move and sort of that change that was widely criticized had to do with u. S. Intelligence about this raid upcoming absolutely. I think its going to be really interesting to see the fallout from this in the coming days certainly the governments that we speak to on a regular basis, those in saudi arabia, the uae and the broader region really are taking this pretty well considering they were the ones most affected by the rise of the Islamic State and the failure of governments in iraq, for example, to be able to contain this threat. But the question Going Forward, as i say, is really not just what President Trump may feel about the success of this raid and what that means for the Islamic State but actually on the ground folks whether or not hes actually going to be able to move the dial forward in terms of u. S. Foreign policy in this region and particularly with whether or not this is going to impact the leadership of those cells of the Islamic State terrorist that still exist. Hadley gamble in dubai. Great stuff with rick perry over the weekend. Thanks lets go to tracie potts in washington tracie, despite the good news about the success of the raid, lawmakers are not entirely happy. Theyre demanding more information from the Trump Administration because they say they were simply left in the dark about the raid. Right especially democrats Democratic Leaders typically when Something Like this happens what they call the socalled gang of eight, these are Top Democrats and republicans on both sides in key committees would be briefed in advance. That didnt happen the president hand picked a couple of republicans that he wanted to brief and that was it. Nancy pelosi said russia knew what was going on here before she did and that top democrat say is a problem it shows a breakdown here in washington President Trump, you see him here during that announcement, says the issue was he didnt want any leaks there were american lives at stake. And his explanation of that is that telling democrats in advance he believes may have led to leaks that could have threatened those lives before the operation concluded. As you said, as hadley explained, theres also deep concerns about Foreign Policy in that region, about the pullout from syria, about whether or not the u. S. Has a strategy at all well continue to hear more about that today. Yes, we will. Certainly, tracie potts in d. C. A big story. Thank you very much. All right, still to come, microsoft man dogged jim mattis, the pentagon and what President Trump said about amazon that gives that jedi contract kind of a page 6 feel. Ere back after this. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Record watch will today be the day broader markets hit a new high futures are high right now hes all thumbs, i guess why the president is sending a not so subtle message to tim cook about the iphone. Virgin galactic out of this world debut on this monday, october 28th as wex rolls on welcome back and good morning. Thanks for being with us here on this monday im Brian Sullivan appreciate you joining us exactly 5 30 on the nose right now. Well, could today be the day the broader stock market hits a new record well, looks like it right now. Long way to go, but remember we just got within one little point of that record on the s p 500 on friday and futures,theyre up right now not a lot, dow is up 50 points but we are in the green nonetheless. You also want to watch Big Technology because kind of quietly the nasdaq had its best week last week in about twomonth time big tech doing well. In asia, seeing more green on the screen as well. Despite the 21st straight weekend of protests in hong kong, their market continues to run and the nikkei 225 higher as well and look the nikkei 225 over the last five years. We have been talking tact japanese market saying keep an eye on it. Keep an eye on it, its grinding higher with todays move, the nikkei 225 hitting a new oneyear high. Were just off that fiveyear high which we hit in mid 2018. So the nikkei 225, the biggest, ewj, thats the biggest etf the japanese market. If you dont want to go to japan and buy domestic equities but looking at the japanese market, the ewj is the most widely traded heaviest market cap and biggest volume etf that mirrors the japanese equity market in europe, not as much the green carry over some of the optimism not really there. Seeing four of the five markets they are mildly lower. Speaking of europe, we have some breaking news crossing right now. The eu granted the uk a brexit extension now until january 31st however, this will be flexible that means the uk could leave before january 31st if a brexit deal is ratified, but this news literally just crossing. Were seeing the pound move a little bit that deadline was supposed to be thursday halloween, october 31st, then they talked about extending it maybe doing it softly but the eu didnt want to tell the uk what to do. The eu now giving the uk threemonth extension. Breaking news, brexit deadline from the eu now officially passed into next year, 2020, january 31st, unless the uk can get its deal together literally its act together and get a brexit deal soon this news just crossing as we speak. Our futures not moving pound sterling moving a little bit. More on this developing story as it rolls on. Outside of stocks, check out the action in bitcoin over the weekend. Yes, Bitcoin Bitcoin below 10,000 right now, but over the weekend, it moved back above 10,000. That move later on friday one of the biggest moves since april. Well, why did that happen . Some analysts are pointing to chinese president xi jinping saying that china should, quote, seize the opportunity to adopt block chain, a positive comment on block chain, the Underlying Technology for much of the bitcoin world powering bitcoin higher later on friday come off the xi jinping peak, still bitcoin up 14. 7 in a week that move largely the reason. Lets talk more about the macro markets. Investors bracing for the busiest week of earnings this quarter. Apple, facebook, alphabet, exxon, i could go on but i wont. Those are the names, six dow components also reporting their numbers this week, oh by the way, on wednesday you have a fed decision and a possible rate cut. You have the october jobs number on friday. And the latest read on ism manufacturing. Last night i put my son to bed he said when is that isn manufacturing number coming out. Dont worry, son its on friday right after youre jacked up from all the halloween candy. Speaking of jacked up, jeff hasnt slept since the michigan game, founder of kkn investor. Jeff, listen, youre playing my hokies this weekend. Youre probably going to win, so youre going to have your chance to gloat, but i dont know what happened this weekend. Saturday, not good not good. Well, so in the same way we were having a shortage of touchdowns for minority football team, we are seeing a shortage of sellers in the market ill move over football before you hit the chicago bear rough weekend here in chicago. Lets look at the market this week, really inching to see these new alltime highs its interesting couple shorts executes we talk about shorts in the market all time, will we see some stops once this new all time hit absolutely. I think you see markets moving not so much who is buying but where are the sellers. Its where is anybody as a matter of fact, jeff. Great point. We have an sbinterview in a w minutes to talk about the lack of volume in this market i dont mean overall Trading Volume the size of the trades that are being executed continue to get smaller and smaller. Is that helping us get toward record highs you have fewer things happening volatility should go up. Well, youre absolutely right. A week ago monday was one of the lowest volume days the s p 500 that is one component. But the undercurrent this week continues to be the fed. I know we have a lot of data i know were looking at the jobs data, but the fed continued to cut rates. Thats so interesting to see at this moment in time theyre cutting rates as were 1 , less than 1 . Were one point away from alltime highs thats the driving undercurrent this week. I think that moves us higher as we have seen in the last couple rate cuts or last couple meetings we have seen the messaging of the fed that get convoluted and see a pullback here. I am optimistic, instructive on the market i am concerned about the messaging and what that messaging potentially does to the u. S. Dollar. Everyone is looking at the u. S. Dollar and it continues to drive the boat. To your point, which is as usual, jeff, an excellent one, lack of sellers. We always talk about will people buy the market well, theres two sides to every trade. You can have not that many buyers, but if you have fewer sellers the buying pressure is going to be there. Do you expect then that we are going to hit new highs, i dont know, today, tomorrow, sometime this week . Its going to happen yes, yes and more yes so why well see that is when ever you see shorts in the market or positions, i know you had a guest thats underweight in technology, all these people are underweight are getting caught short we call them stops on the floor in chicago, see these stops being executed that makes the market move higher if its tiffany this morning or stom of the big gap its forcing buyers coming to the market that will really perpetuate and see the s p 500 testing this 3,100 level. Im not saying they stay there long but its happening this week. We like to hear from the people the smartest audience in all of television over the weekend. I posed the following question, a very simple one to my twitter followers which is this, do you believe the s p 500 will end the year higher, lower or about the same it is right now 54 said it will end the year highly almost exactly lower about the same, 23 and 24 each. So at least our little poll followers, jeff, theyre optimistic on the market but does it make you at all any nervous that we are seeing sort of the general public say, yeah, guess what, im optimistic, or is that the right answer well, i think thats the right answer if it was 84 versus 54 , thats where i would be have spidy senses going up. Were talking about the fed. Whats the overarching theme of 2019, the u. S. Trade deal. We get some type of trade deal, phase 1, phase 2, lot of different nuances, anything to sink our teeth into, thats the onetwo punch. Who is selling into that who will sell into a u. S. china trade deal if you will at the end of the year . No one thats where i think we potentially have a santa claus rally of all santa claus rallies if we get that deal phase one with a little meat to sink our teeth into. Speaking of phase one, stick around, jeff this was just phase one of our time together this morning dont you go anywhere. I want to go off and do Something Else and bring you right back in. As we have been talking about this morning, microsoft, landing a massive 10 billion pentagon contract, bidding out the rumored favorite, amazon for the deal Morgan Brennan joining us from the nasdaq with more on a massive Cloud Computing deal morgan, good morning. Good morning, brian i dont know where to start with this this has been an absolute dog fight, two years in the making laden with controversy, what is the joint enterprise defense infrastructure or jedi contract. This is the pentagon winner take all cloud contract to unite the entire u. S. Military within a single with a ceiling value of 10 billion. Microsoft won it it was microsoft, amazon and earlier in the competition also ibm, oracle and google vying for this microsoft saying we look forward to expanding our Long Partnership and support our men and women in uniform, at home, abroad and at the latest unique and differentiated azure cloud capabilities amazon saying, were surprised about this conclusion. Aws is the clear leader in Cloud Computing and detailed assessment purely on the comparable offerings clearly led to a different conclusion. You mentioned amazon was the frontrunner here or expected frontrunner it can protest the outcome, experts say it has grounds to given the unusual and unprecedented comments by elected officials like President Trump, but amazon hasnt said whether it would do so or not. The d. O. D. Saying the, quote, process cleared review by the g. A. O. And court of federal claims at the outset the competition included four different offers all officers were evaluated consistently with the solicitations stated evaluation criteria now the d. O. D. Also saying that additional cloud contracting opportunities are anticipated really stressing that from a financial standpoint, though, this is a bigger win for microsoft than loss for amazon you can really see that playing out in the shares right now with microsoft up premarket 3 amazon is only down fractionally. Amazon reported 9 billion in revenue for aws last quarter alone. But for microsoft, its big bragging rights and according to analyst assign that azure is really catching up in this market, brian. Theres a lot of different angles here to talk about and i think we will throughout the day. I want to talk about this angle because of course this got a lot of attention as well tell us more, morgan, about reports the president apparently called jim mattis to, quote, im sorry for the language screw amazon out of the contract yeah. There are excerpts according to the excerpts as well, general mattis pushed back on that and say, no, thats not whats going to happen this is not how were going to do this contract here is the thing, controversy in d. O. D. Contracting bid protests, lawsuits, et cetera, all of this is not new to the pentagon thats why there are very specific and very detailed rules and methodologies and regulations about how these types of competitions play out now youve seen some of that already play out here. You know, there was a protest and lawsuit from oracle, for example. The Defense Department Inspector General also done a major deep dive investigation were still waiting for the public results of that so well see there does seem to be grounds for amazon to protest this but again, very long, drawn out regulatory process to see these types of contracts given well see. Were not done talking about this. Well see all day right here on this fine network morgan, look forward to it thank you very much. Back to jeff listen, microsoft is 19 of the tech, 11 of the widely traded qqq, it is more than 10 of nine Major Technology market etfs, the stock is up 3 right now how important is this deal and how important is microsoft to the overall market given that weight that its in . Well, optically this is a big deal for microsoft but microsoft has been crushing it up over 40 year to date this is a big component. This is why you have exposure to tech continues to show relative strength in technology dont fade away. You embrace this, sully. Jeff we embrace you all the time, my friend. Thank you for getting up early 4 43 see you soon take care. Coming up the United Auto Workers union turning its attention to ford and chrysler after striking a labor deal with gm. Plus, one Group Opening up its wallets big time for the big business of halloween and the role instagram and social media is playing on all that spending. Youll love this one its coming up youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Welcome back 5 45 find out what else youll be talking about today besides microsoft and the markets and the jedi contract. Joining us Contessa Brewer for our top trending stories always good to see you. Thanks, brian looks like President Trump recently upgraded his iphone and offered a bit of criticism to tim cook he took to twitter and sub tweeted cook writing to, tim, the button on the iphone was far better than the swipe. Reports suggest the president first switched from android to iphone in march 2017 good news for the president , though, apple is rumored to be bringing back the home button on the iphone se2 that makes it easier for people who couldnt get used to that. Halloween spending expected to be near record highs if a new survey 50 of millennials admit to buying accessories to include them in a post men, more than women are far more likely to say their Halloween Spending is driven by social media shoppers expected to bend 86 on their costumes this year thats a lot of money. One North Carolina man says hes feeling very lucky. After hitting it big as he prepared to wrap up his last round of chemo for colin cancer. He won 200,000. He says he was in shock. He didnt believe he won until the clerks confirmed it. He says he plans to use the money in part to pay off the medical bills. So. Shame he had to use the money for the medical bills. Great that he did it how would he have paid them without it its great on the last round of chemo and hit the jackpot. By the way, whats your take on the home button im going to sound like an old man, i get it. I would agree with the president. I want to go back and don grade back to an 8 not because im old and cant figure it out. Its just that when youre doing multiple things, sometimes you lose what youre doing. I dont have a problem with the home button. I have a problem with swiping to get the apps to shut down like to pull it or swiping lets say im typing out an email to my favorite colleague, Contessa Brewer and look up a sports score. Then i want to go back to that, its hard to get back to it or its gone and i have to retype the message which means i dont type it. I was going to say, contessa, great to see you on the show monday then i dont send it. Also you have to have that for your pictures to post on social media all the spooky accessories. Should we do something here one, two, three its not quite brad peat and Jennifer Aniston well take it. Contessa, thank you. Im going as Contessa Brewer for halloween. How amazon is making it easier to pay bills on time just using your voice wall street heading to the heavens. Shares of Virgin Galactic prepare to make their market debut. Well leave you with that and a little david bowie as we head to break. Stick around announcer todays big number, 24. 6 billion. Thats how much money has been invested into private Space Companies since 2009 accoing aept scerdto rorbypa angels for 20 years. R no two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Learned ao play second language applied to college applied for a loan started a business started a blog shared a picture shared a moment turn your wish list into a checklist. Learn more. Do more. Share more. At home, with internet essentials. Time now for your executive recap, all the headlines you need in about 60 seconds europes biggest lender says pretax profits fell 18 from last year. Hsbc said those Third Quarter results came in despite strength in asia. Specifically noting what they called resilient performance in hong kong. Amazon looking to make it a little easier to pay your ewe dillty bills the Company Announcing it is partnering with a Fintech Company to let you pay using alexa. The new feature will also let users get notifications when their bills are due to and to ask questions about the amount due and how it compares to your previous bills and the uaw turning its attention with Fiat Chrysler and ford following last weeks labor deal with gm the union expected to use the gm deal as a template for those talks and will likely reach similar terms regarding wages and benefits for its workers in those negotiations this morning investors will get their first chance to buy is the next stages of mankinds endeavors into outer space shares of sir Richard Bransons Virgin Galactic will officially list on the nyc today the first and only Space Tourism company to do so Morgan Brennan doing double duty this morning lets bring morgan, youll have the longest day ever. Yeah. It was a working weekend, too, but its all very exciting, isnt it it is. So Virgin Galactic will begin directly trading later this morning at the New York Stock Exchange as you mentioned. The market cap ticker simable spce first and only publicly traded Space Tourism company but also first among the class of socalled new Space Companies to test public investor appetite, what is virgin with galactic, sir richard branson, comprised of the flights and future Service Forecast to begin next year, hasnt started yet but also the Spaceship Company the subsidiary that manufactures the carrier aircraft and the space planes that are launched from them, so the hardware, ticket price 250,000, more than 600 people have signed up so far, 80 million collected deposits over 120 million. Designing the custom space suits flights will take place in new mexico the company is in the process of moving into this is not a traditional ipo combined with social capital this is a special Purpose Acquisition Company listed on the nysc but this will be watched very closely not only by the space industry but by wall street and also by Silicon Valley given the fact that you do have some tech heavy weights involved in this its a cool story and we love having you on, morgan, my question is this, how do you value the company . Theres no other company like that how are analysts going to figure out what its worth . That is the key question everybody will be looking to start out when this does start trading later this morning on the Stock Exchange ubs put out an estimate this part of Space Tourism could be 3 billion business or 3 billion market i should say by 2030 but the numbers are much greater when you start to get into quote unquote point to point travel using markets, hypersonic flights around the globe is something galactic talked about doing, but its going to be key to see how the Public Markets react to this its capital intensive, its high risk, service hasnt started. Its a much bigger, longerterm play and bet i think on the future of travel both around the globe and into space. Morgan brennan, we appreciate it great to have you on Worldwide Exchange not once but twice well see you all day. Thank you very much. Will the u. S. Markets hit a new record today we came within one point last week lack of volume and investor interest sent us packing even as we have gotten so close. Lets bring in northman trader founder and lead Market Strategist s venn, theres been no volume in the market. Is that a good or bad thing for the equity markets right now hi, brian well, typically what you see is volume declining during rallies. And obviously when you have selloffs thats when volume kicks into the downside. What were seeing right now is really unusual i mean, for october, usually you have more volatility but last week, we actually had the lowest volume as far as i can tell ever not only in october but generally. I mean, usually you get that type of volume during holiday week, half day and that sort of thing, but not at all. Totally lack of interest so, what that tells me is that, you know, even though we may rally on the fed here, theres no real support being built in this market. Thats a concern specially as we keepgapping up, right . We like in the previous times see a lot of unfilled gaps and they tend to want to fill at some point so if you see volume coming, any type of program, then of course you can get downside for now, as long as thats not the case, we can drift higher. Whats interesting here is that basically the last few months we havent done anything other than reach these highs as soon as the fed meeting comes, right the fed cuts rates and then we get a volatility spike after this vix compression we see again now. The only question is this going to be different where we can actually sustain highs so far highs above 3,000 have been selling opportunities and we have to see if they can actually sustain above these levels here. I feel like we have to go back in history. Sven, eight years ago, my former colleague and i coined a term addicted to the market and fed rate cuts around it. It looks like from that chart we move up, rate cut then the markets get a little complacent and talk about a rate cut and the markets go up. How much of this is, i guess, i got to bring it back that fed opium if you will that theyre going to rescue us or save us . Well, the markets have been trained to follow the fed. Thats literally what all 2019 has been all about its been multiple expansion and whats really interesting here this particular point in time, i really want to make sure people are aware of this, the fed has been thrown liquidity around like candy at a kids halloween party. Ever since september 17th, when something happened, overnight the funds overnight jumped suddenly over 5 the fed did not anticipate that and they had to intervene with repurchase operations. Okay at that point, it was initially indicated to be temporary. And it was set at 75 billion a day, right they had that facility and that kept going they had to extend it. In early october, all of a sudden, they announced a 60 billion a month Treasury Bill buyback program, not qe insisting but a massive amount of money it equals the size of the u. S. Military budget, absolutely unfathomable and last week all of a sudden they increased the overnight repo facility on thursday they intervened 130 billion and we see markets making all time highs. Very odd. I want to get you back on talk about the lack of volume and wider spreads. Were out of time on this show well bring you back on very soon its an important topic. Thank you very much, buddy. Thats it for Worldwide Exchange. Squawk box picks up the coverage right now good morning eu approving a threemonth extension. Well show you the movement in the pound over the last hour while tiffany shares are soaring on news of a takeover bid. We have the details straight ahead. Microsoft shares up today after the company beat out amazon for a key cloud contract for the pentagon monday, october 28th, 2019, squawk box begins right now. Announcer live from new york where business never sleeps, this is squawk box. Good morning, everybody. 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 and andrew ross sorkin. Take a look at the u. S. Equity futures at this hour youll see that things are pretty firmly in the green at this hour. Dow futures indicated up by 62 points the nasdaq indicated up by 21 and s p 500 indicated up by 4 points to give the s p another chance to try to take out record highs. We did see the s p 500 trading above its july 26th record high during the trading day on friday but it fell short at the close well see where things are headed today also, the dow after fridays gains trading in positive territory for october. Right along with the s p 500 and