Post nine at the New York Stock ExchangeCarl Quintanilla is off, jon fortt is on assignment but were going to begin with wework losses balloons to 1. 25 billion in the last quarter. Roger mcnamee joins us, along with Business Inside henry blodget. Good morning roger, i will start with you losses at wework, the turmoil continues. The thing that scarce me about we work, it could be a trigger of other issues in the market it is huge the scale of investing in unicorns that were i think at best unproven, maybe at worst not real businesses is such that as the stuff implodes, it could take softbank with it. Softbank is big enough to trigger all kinds of issues for the market. Youre scaring people saying it could take softbank with it significant losses, no doubt thats a few steps down the road the saudis are 45 billion in, theyre getting 7 deferred return, and then other investors, it is not clearly softbank at risk in the way you if they blow through enough money, it signals a fundamental change in how we perceive new things going on in the economy the vision fund was a fundamental change in how we go about investing in things. Turns out to be nonsense which is the way it looks to me at the moment, it has significant implications thats not taking softbank down wework controls a lot of real estate if theyre forced to suddenly get out of it, leases are underwater, huge amount of space, if youre looking for Systemic Risk to scare people, you can bring that into the argument. If you dont want to look at it, dont look at softbank, dont look at wework. Or you could say that the Public Markets have kind of created a fire break, it could have perhaps effect a broader part of the market, but it didnt. Mike, a super important point. Public market showed fantastic discipline on these things here and i think the challenge is that wework is not the end of the cue of people looking for liquidity. It is possible the Public Market will go no mas, leave them all waiting at the door. There are companies that are profitable. Without a doubt softbank made Good Investments along the way. What im interested in is their willingness to fund competitors, companies they already invested in, doordash, uber eats, huge investor in uber, yet throwing money at doordash which is killing uber on the uber eats part they used to be focused on avoid conflict of interest it is optionality the cost of launching businesses is low once they get traction, you throw money at it. The notion is you throw money at anything that Gains Traction the belief they have, i give them credit for making this part of the general philosophy of investing, once you hit a certain scale, even if the model doesnt work, you can shrink to something that does. I think the challenge with some of these is that models may not work at any scale. Wework is going through that process now, looking to siphon off,nesses, get out of markets that dont look like it can be profitable. You dont think that can happen for wework it may. I dont know what i do know is a lot of people can do what wework is doing, many far better capitalized in better positions. If youre a new York Real Estate person, you have a lot of empty space you can turn into shared working spaces to compete with guys at the margin without taking are you implying theyre going back to the core business, cool offices, were a consumer, happy, also happy because it is not all that expensive, the space, which may be part of the issue. But it is great to work with them, if they focus on just that business, yes. Do you find theyre more productive and efficient because of the space feel so cool when you walk in. How is the coffee it was good i think, yeah roger, going back to the point mike just made, if you look at a sell off we have seen in publicly traded companies that came to market this year, many of them growing revenue very strongly, not profitable for the next couple of years, it seems like those losses accelerated on the heels of everything we saw happen with wework as it was trying to go public, too. I wonder how much you think thats cast a shadow on investors, whether it sort of marks a turning point. What i am worried about is a lot of companies depend on business of each other for success, that wework is really at least in early days heavily dependent on startups as a concept. Other startups are supporting other startups if you get a problem in one place, the opportunity for Ripple Effect is significant if all these guys dont get public, thats going to have some implications for somebody im not sure where it shows up first, but at the end of the day, i am with henry on this thing. There are some really great ideas funded that were encouraged to grow wildly too rapidly, take way too much capital. While they still have capital, they should retrench, make it work on captain they have. It is not like theres going to be a competitor. Theres zero chance of something coming in after these guys, dont have to worry about the competitive threat like you did two or three years ago where it appeared sky is the limit. You talked about shared office space, we touched on deliveries is there a greater valuation reckoning coming for new emerging companies, areas . I think so. I think youve seen it with many, not just wework which again, salute to the Public Market my goodness. Just blocking it flat out. I cant remember seeing that before it is great. I cant remember spending more time on a private company in all my years, talking about a private company than wework. This is why we had the conversation early there are systemic things that wework touches that we have to be careful about knock on effects of them retrenching. Still, 2 of the Real Estate Market or 3 roger, you want to stair people. You have softbank collapsing, new York Real Estate market collapsing. November, it is freezing outside, david what can i tell you, i am from california. Just upsetting you. We have some heat in here we want your take on another big topic of the morning, Elizabeth Warren buying some ads on this network to blast billionaires in a Fiery Campaign ad. I dont know if were going to show it. Roger, ill start with you here. Seems like every time someone likely cooperman makes a comment, it is more for Elizabeth Warren to respond to. As an investor i think what you have to look at is political movements tend to be contagious around the world, and were now seeing a couple million in the streets of hong kong getting increasingly violent there are real issues around the world, this Economic Cycle worked well for those at the top, not well for the average person you see the average person is starting to push back on that. I think we can attribute election of President Trump partially to average people not liking the deal theyre getting. I think what warren is tapping into is politically smart. There are only a few hundred billionaires, and theres 330 Million People in america. So if you isolate them, thats a politically super smart move i would also think inevitably the case that billionaires have with tax rates being below a middle class person in percentage terms, thats kind of lowhanging fruit for a politician i think warren is really smart to go this way, and i think candidly if i were one of the billionaires, i would say a lot less because i dont think opening their mouths is helping at all something has to change thats what she tied into, what President Trump tied into. Is a wealth tax the thing that changes it or is it misleading and misdirection . Good question talk about it, it is hard to implement. My stock goes up, i am worth a billion five this year, if the market tanks, do i get money back i paid last year, it is hard the Capital Gains part. But the key problem is not that billionaires exist. Thats not the problem the problem is we still have huge incredibly Rich Companies that pay fulltime employees poverty wages that just cannot hold and if we start to raise those wages to a living wage, that starts to fix problems in the economy, reduces the theofury t most feel. Throw in a billionaires tax, isnt as big a deal as they make it out to be. Clearly we have major structural issues. I am going to counter, roger, say you can look at decline in unionization, look at Monetary Policy this inflated assets which are held more broadly by people that are wealthier to begin with you can point to these things that dont have to do necessarily with taxation. I think thats right. Thats part of why warren has a plan in each one of those things as well. I think what we have is weve gone 40 years with a strategy that was unbelievably successful in the 80s, weve run it longer the 80s, profitability was low. Exactly. Henry, how do you push the pendulum get at the Equity Compensation structure of companies why are companies culturally at the top so fixated on preserving profit margins, delivering shareholder returns. I think as roger said, it has been 40 years of shareholder capitalism people fully believed it and we needed it back then now you have people like mark benioff saying no, it is more than profit. It is a global marketplace can you compete if you arent earning as much as you can you absolutely can. Look at the jobs where the pay problem is, in retail stores, restaurants, you cant export those jobs, theyre not going away walmart cant afford to pay people 15 an hour they dont want to, but they can afford to. The big tell is when we had the giant Corporate Tax cut, all the money went into stock buy backs, not into investing in the economy. When he started my career, there was a guy peter destructiver, the management guru of the industrial age, talked about five steakeholders, it was employees, communities where they live, customers, suppliers. Round table stake that will be it that will fix everything it will actually because your wages are my revenue people get paid more, they spend more, economy grows faster. It is sitting there aspirationally, saying were going for a more fair, balanced deal. Promote best practices with ceos what do you do as a policy measure . If Companies Wont voluntarily pay their fulltime employees more than poverty wages, talk about a 15 minimum wage not that big a deal. Companies can afford to do it. Not small companies, thats what i hear all the time, mom and pop cant afford that, youre putting people out of city every city people had it raised, every time it is better for everybody. Every pro market thing, i think doing it will be better for the market in the long run. We could have another debate on automation coming to fast food roger, henry, thank you for a lively discussion. Thank you very much great to be here when we return, shares of Canopy Growth getting crushed after posting larger than expected loss. The ceo joins us exclusively on the results next stay with us built for all people. [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Shares of Canopy Growth hitting a 52 week low this morning. Wider losses, lower than expected Revenue Growth in the last quarter, conspiring to send the stock down, roughly 17 . Canopy growth ceo joins us now a cnbc exclusive interview happy to have him. Good morning, sir. Good morning. Lets talk about the Cannabis Market in canada for obvious reasons. I think you said on the call the canadian recreational market, first nationally federally legal large scale Market Opportunity is just not quite from my words here what you expected it to be. Why not . Yeah, you know, theres a number of things coming into play first and most importantly, there simply arent enough stores provinces representing 60 of the population have only 10 of the stores if theres nowhere to sell consumer products, it is difficult to have the type of revenues everybody expected. But the positive news is thats an easy problem to fix the government has acknowledged they need more stores. We now have enough supply to allow them to do that. Hopefully well see that fix and the second big thing, cannabis 2. 0 products, theyre still not to market. Next month well see those products arrive in stores the first time i think that will be another big opportunity to take a bite out of the illicit market, improve revenues for the entire sector mark, just how much challenge is the illicit market . How much prices have to come down to compete in a meaningful way . I think theres a number of factors that go into taking on the illicit market at the end of the day, size and prize is there theres a 6 billion Canadian Market when you convert the illicit market price is a small part. But i think it is just that, a small part today, the number one issue is if you live in ontario, theres one store for every 600,000 people you need to have a lot more stores so people have access without access to a store, it doesnt matter what the price is. What is cannabis 2. 0, tell the viewers, and why should they care yeah. So one year in, the canadian government is allowing next generation of products so for us, thats products like cannabis beverages, cannabis chocolates, gummies, and if you look at cannabis beverages, theres a lot of reason for excitement you can take a product, cannabis product, put it in a form that consumers know, put it properly dosed for a reliable experience, like beverage, alcohol, and deliver a great tasting product with a great brand with no calories, no hangovers theres a lot to be excited about with the next generation. You talked about provincial buyers and recreational channel right sizing inventory levels after significant accumulation how much inventory is out there, how long is it going to take to burn off i think were seeing the end of that short term phenomenon which was we had a supply shortage, provinces accumulated what they could. Now were seeing enough supply in the market, theyre right sizing inventory consumers are still buying at the till, strong retail sales where there are stores, but it is not translating to provinces from producers like us in the same amount because theyre working down inventory i think it is a short term thing, and long term, all of the fundamentals are there well see more normalized wholesale sales in the provinces going forward. Mark, given all of the different factors that were talking about now, what does it mean for path to profitability for canopy yeah, you know, we remain committed to long term, we talked about being ebitda positive in canada in 2021, long term profitable in the next three to five years. But what it does mean is the short term seeing a lot of head winds you look at our quarter, we needed to take certain provisions to right size and address inventory levels on oils, but overall, gross revenues were up 6 to 118 million, the medical sales in canada up 8 , International Sales up 72 cannabis shipments up 12 . Retail, same store sales up 17 . Overall, 24. Theres a lot of positive things out there, even in a quarter thats coming at a rough time for the cannabis sector. Lastly, i want your thoughts on the lessons to be learned from legalization, recreational legalization in canada, whats worked, what hasnt as we in the u. S. Continue to see this growing move towards it at least on a state level yeah, theres a ton to be proud of, despite hiccups and everything im talking about, we launched a federally legal system for Recreational CannabisCompanies Like ours stepped up, dpo government stepped up. Theres a lot to be proud of there were supply challenges at the start that led provinces to put constraints on retail environment, and now we just need to see those constraints come off there is supply, we need to see the stores open. Well see a lot of success in the next year. And mark, how long, youre interim ceo. Are you going to find a permanent replacement soon yeah, you know, we have been in the middle of a search for the last several months. Were down to a few extraordinary candidates and we still remain hopeful to announce something in the next couple of weeks. All right we appreciate you taking time with us today, despite not the best day for the stock mark zekulin, thank you. Charles schwab says new account openings surged from the prior month after cutting stock trading commissions to zero. You can see shares up 14 . Other major firms followed when it happened. Investors are putting more stock in the increase in accounts rather than the zero fees. In the last month, schwab, Td Ameritrade are higher 10 or more back after a quick break it was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Walmart hitting an alltime high after an earnings report. Courtney reagan has more on the results. Hi, mike, a mixed quarter investor focused on the strong u. S. Segment and guidance. The cfo told me it was a good quarter with solid momentum. They beat earnings estimates by 7 cents. There was a billion dollar negative currency drag there the retailer upping into guidance for the year on the back of this stronger quarter. It is not changing expectations for the final holiday quarter, however. Comparable sales up 3. 2 , slightly above expectations. The 21st straight quarter of growth for that metric traffic higher for the 20th straight quarter net online u. S. Sales grew 41 strongest quarter so far this year Online Grocery is a key driver in the preordered conference call, when it comes to ecommerce, the cfo said the retailer needs to do more, move faster, especially with the assortment including marketplace. He said our strength is driven by food which is good but we need more progress on walmart. Com with general merchandise. Were mixing the business to beret chief margin rates but theres more work to do. We need to translate competitive food and consumable volume into a stronger business thats profitable over time, so thats what were working on. In september, mcmillenni in said they wont sell ammunition and handgun sales in alaska, would mark complete exit of handguns for walmart. The cfo told me that walmart hasnt seen a discernable Ripple Effect impact to other categories as a result of working on exiting those categories back to you. Thank you, courtney. Other big movers, one of them cisco, shares down over 7 . The companys earnings were a beat in terms of what analysts were expecting for revenues and profits. This would be the worst day in the market since august. Why, guidance weaker, slow down in global tech spending being blamed Ceo Chuck Robbins joined us this morning on squawk on the street. Take a listen. Those of us that rely on Business Investment and Capital Investments have been expressing concerns over things we see in the marketplace. We mentioned it on the last call this is not something thats just newly emerged what we talked about at the end of last quarter of q4 when we said we began to see weakness manifested throughout the quarter. You heard chairman powel talking about his concern over Business Investment and i think thats the issue were facing. The consumer in the u. S. Says you see from walmart and others remained very strong and it is a bit of dichotomy in the market now. He did go on to say if a china trade deal was signed near term, it could be a real positive for Decision Makers holding back perhaps in some ways in terms of spending. Yeah. We have certainly been tracking the slowdown in business spending, including the tech side awhile now. It is a theme that emerged from a number of names, even in earnings season above and beyond cisco. The thing that robbins said that got my attention the most, youre seeing a pause, but when you talk about technology, it is so fundamental to strategies for so Many Companies today that they only think it is a pause, that it is a matter how long can a company pause. You cant not spend money if you want to be competitive it is a staple in terms of business spending. If you look at what semiconductors are doing, such a dichotomy between that and americaing equipment the market saying forget china, we dont care. Theyre hitting new highs because of investment cycle. Shares of cisco down 7 today. Dragging on the dow which is down 13 points european markets just closing, meantime. Seema mody has the breakdown of todays action overseas at hq. Lower across the board with trade talks between the u. S. And china remaining in focus, but we should put into perspective this will be the third down day in the last ten for the broader european markets, and a big reason why earnings continue to come in above expectations look at bureau berry, 4 jump in sales despite disruptions in hong kong. They maintained guidance for the year, adding to Investor Confidence in the designer turnaround plan. Earnings growth in general for europe set to top 5 the Third Straight quarter, better than expected those robust earnings door tail with Economic Data germany narrowly avoided technical recession. Jpmorgan says lower rates provide boost to consumer spending, but it does raise questions over whether the economy isnt bad enough to warrant fiscal stimulus which the ecb has been pushing the German Government to unveil. Slowing growth concerns were priced into european stocks which on average are trading at discount to the u. S. , 16 times e versus s p 500, trading 20 times earnings brazil at 15, china at 14 times. In general, u. S. Stocks trading at premium to other markets around the world, including europe mike, back to you. Absolutely. The value case is the main one time for a cnbc news update. Rahel solomon has that heres whats happening this hour we start with breaking news. At least three people injured after a shooting at a high school in santa clarita. Details about victims conditions are not immediately known. We know that police and firefighters are responding to Saugus High School as we learn more, well bring it to you roger stone walking into federal court in washington, a day after closing arguments ended. The criminal case against him is set to go to the jury. He is accused of lying to congress and pressuring another person to lie as well. And welcoming leaders to the brics summit in bra sil the five countries represent 42 of the world population. And look at this new photo showing three generations of british royalty released by the duke and duchess of sussex to mark the 71st birthday of prince charles, standing besides prince harry, holding his son archie dressed in baptism robes beautiful picture. Thats the news update for this hour back to squawk alley. Morgan, send it to you. Good picture. Thank you. Still to come. Dow closing at a recordhigh, thanks to disney it is now double the market value of netflix well debate whos leading the streaming wars next. Stay wh itus you like camping with us . I sure do my friends are getting healthier thanks to the breakthrough treatments discovered at st. Jude. And we freely share our research to help save kids with cancer everywhere. Smore . Smore . I havent had one yet give thanks for the healthy kids in your life, donate now at stjude. Org or shop wherever you see the st. Jude logo. You ate them all i did not. Who, me . The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. A nontraditional name making the bull case for netflix, despite crowding in the streaming space. Portfolio manager joins us now to talk about that tony, good morning good morning. Thanks for having me so is netflix more recently become a value name for you guys or even back above 400 a share, did you see value in it, on what basis do you determine theres value on a stock that trades 50 times next years expected earnings. We first purchased netflix about twoandahalf years ago in the oakmark fund, around 150 a share. At the time we viewed netflix as making real significant investments in the income statement by underpricing their product to Grow Market Share of streaming. And we think that was an investment worth making. Fast forward to today, 160 million subscribers, 20 billion revenues, we think a Job Well Done the strategy certainly has success to date, although hardly seems now theyre underpricing product relative to the competition, does it the question with all of the new entrants in the area, what is the value of netflixs head start as the incumbent thats a great question easy when you look at the news flow to think of streaming as zero sum gain. We dont see it that way we look at it like the 1980s, you look at the Cable Networks emerging there was all of the share to be had from classic network television, and there was proliferation of cable channels. They all basically won when Disney Channel launched, Discovery Channel didnt lose, espn didnt lose when hbo launched, we view launching of different streaming venues similar to that, it is just that opportunity is to take business from classic Cable Networks and linear tv in general. But they all won because getting carriage was key, even if nobody was watching you in this case it is an active relationship between the producer of the content and those who are watching and theyre paying for it, either they want it or they dont thats correct. And thats why it is so important that netflix made this Successful Transition to own content. They have a terrific track record of developing their own content and theres what continues to drive consumers to the platform and please their customers. How closely are you watching subscription numbers, is that a key metric as an investor in netflix, should it be a key metric for folks that are shareholders in names like disney i ask that because the key question is going to be how do you monetize subscriptions,how much time are people actually spending, how does it compare to other competitors. Is that the metric you continue to watch or is it Something Else we watch a variety of metrics, subscriber growth is one of the more important metrics to watch another is margin. You look at the margins of the business while theyre not where we think they should be, theyre growing nicely, leveraging the content spend. I want to come back to the point of competition which you seem to say you think it will end up being similar to what the ecosystem was like the last 20, 25 years for the cable distributors, but i dont get that because here you make or break based on content it is not just you saying comcast, pick us up. 90 million homes, time warner and the other distributors, it is different why are you not worried about them losing subscribers as people make choices at home in terms of what they want, what theyre going to pay for. Great question. It is not that different if youre a shareholder in viacom, youre worried how good content is on nickelodeon and mtv, whether or not they continue to attract an audience. If you cease to do that, the value goes down. No different for netflix. Your thoughts more broadly on the market, the dow and s p closing at a record high just barely yesterday, do you see value elsewhere right now, and if so, where for a bottoms up benchmark investor like goldmark, this is a target rich environment, despite market near highs. When you look at whats happened the last few years, the value, there have been have and have not nots, and have nots were cheaper and it is increasingly bifurcated thats a Good Environment for Value Investors to find things, were finding pockets of value despite the market being near alltime highs the top down perspective is interesting, too cliff put out a piece last week showing value is a factor, more attractive today than 97 of the time in 40 years thats right. Cheap stocks are even cheaper than they typically have been, i guess the value sectors have gotten a little traction perhaps in response to that. Thanks for your time this morning. Well leave it there thank you and coming up in a few minutes, leon cooperman, his response to Elizabeth Warrens ad on the halftime report. Were ckn montba ia me [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu is i am scott wapner. Top of the hour. Cooperman responds to Elizabeth Warrens wealth tax ad in which he is called out again and three big dow winners, hitting new highs. Can they climb higher. And john and pete with unusual activity about 15 away. Sounds good, scott. Looking forward to it. Up next, despite new sales records, jack ma says singles day performance was below his wel exctio ltell you why dow down 75 now. The moth withou, struggles in the spiders web. With every attempt to free itself, it only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. Welcome back to squawk alley. Ibm bought the Weather Company in 2016, today, the tech giant is announcing a major announcement that takes super Computing Power to disrupt, weather. Steve liesman visited the newest super computer in North Carolina to find out how it is happening. Reporter in developed countries, smart phones warn of looming storms, bitter cold, seering heat, but billions of people around the globe lack basic weather forecasts, making the world a much more chaotic, dangerous place. In a historic marriage of big data and super computing, ibm is launching f launching graf it will provide accurate weather forecasts not for a few places around the world but for the entire world you hear the sound of the super computer that runs the new Global Weather model, named after an ancient god that ruled the daytime sky, consists of nine cabinets that has 84 nodes in it. 12 trillion pieces of weather data every day for 26 million locations. The super computer is so fast, this massive model provides new forecasts every hour, instead of every six hours. Were getting down to the Cellular Level of the thunderstorms now where we werent able to do that before with that information, we can now provide better support to critical Decision Makers. Reporter it is big potential business Big Companies need accurate weather data any business that doesnt have a weather strategy is miss out on returns all is tied to your environment and the weather, to be able to predict in advance for retailers, energy companies, travel and transition businesses is all we do reporter Better International weather forecasts can mean more comfortable flights comfortable flights for passengers who are routed around turbulence and even shorter flights ful we can do a more fuelefficient flight, we can certainly save money on fuel theres just a vast of ways of operating on time and efficient manner improves the American Bottom line. So no matter how good the tech and new weather model has to move itself over time americas got to wait several months before relying ton and using it with other weather data ibm has plans to continuously upgrade the model. Rodriguezing realtime weather data from smartphones and planes i think of Companies Like meteorologists on staff. Weather is so crucial to those business models. Are they working with some of these companies, with outreach or demand . Well, theyre going to work with all of them all potential customers. Heres the deal, morgan, we have really good weather data for the united states, for japan, your euro for the advanced companies but those companies that you mentioned they all do business overseas they dont have good data for flying over the amazon or the midatlantic so this model will deal with all of that, and another cool thing, morgue, one difference between this super computer and the others is instead of cpus it has a got of gpus, you know what those are, dont you . Why dont you break it down graphic videos, morgan. Is there the sense of increasing frequency of extreme weather events and all the rest of it means a work in progress than it otherwise might be thats a really good question, mike because at weather changes the weather models change. And its a race for the weather models to keep up with the changes of the weather it takes time. It takes lots of data input. Theyre processing enormous amounts of data, feeding that into the model then they have to see how the model works. Youre right, mike its unclear the main thing now, they seem to have the Computing Power to doe to have the Computing Power that they need to run these kind of models in a useful way. Used to be, every six hours, mike now, they can run it every hour. Used to be a nine kilometer or six to tenmile range. Now, they have it down to every two miles so well just have to see how it works. All right its a cool story. Steve. Thanks for bringing it to us steve liesman. Taking a look at markets dow is down yiefl points, s p is down 9 about 0. 3 for both of the nations averages. Taking a pause from at wwhe saw yesterday. Squawk alley returns in less than three minutes stay with us only about 80 of your part b medicare costs, which means you may have to pay for the rest. Thats where Medicare Supplement insurance comes in to help pay for some of what medicare doesnt. Learn how an aarp Medicare Supplement insurance plan, insured by United HealthcareInsurance Company might be the right choice for you. A free decision guide is a great place to start. Call today to request yours. So what makes an aarp Medicare Supplement plan unique . Well, these are the only Medicare Supplement plans endorsed by aarp and thats because they meet aarps high standards of quality and service. Youre also getting the great features that any Medicare Supplement plan provides. 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Call today for a free guide. Welcome back lets get over to cme and Rick Santelli for the Santelli Exchange hi, rick good morning, and thank you you know, ive had some interesting guests the last couple of days if youre an aficionado of rates theres Nothing Better than jim grant. And of course, with jay powell speaking everything and everything that is our fed and global Central Banks it was very fascinating to speak to the potential nominee for fed governship dr. Judy shelton. One thing i garner is there is this new affection for lower rates by those that are running Central Banks. But in the end, economies and even investors simply arent as enew mexicoered with lower rates as they used to be if you go back to the 80s and lows, and you mon volatility with the victor stocks as i traded general vault initials in options it was more sensitive with rise in yields. Not so much the case not that they dont move higher when rates move higher but boy, do they rock up when rates move lower especially when they move lower quickly. Here we see rates at 181 were down 13 basis points from our recent high close. You look to europe theyve come down. Europe is really an important factor in how many investors are trying to calibrate how their portfolios should be blended how much more upsides in stocks. And what we find is that occurred in europe about six weeks ago, it really changed the environment for a while. European equities really heated up there was more talk out of germany and potential fiscal innovations. There was even talk about in japan, although that seems more accompanied by recent week data. But the point here is, i think that the world, investors in particular want higher rate and they want it to be paired with higher stocks. Stocks yesterday, two out of three in our major indices had record territory but look at the momentum, look at the movement, look at the net change we have in essence, when we get up to these historic levels we take them out but we dont go through them like a hot knife through butter when you look at the chart of the s p and the tennote yields, for that matter, dax performance on boon yields, stock really have the ability to reverse and pull up Interest Rates so if youre thinking that you want to see new highs in your stock indices and your investments you should be hoping for higher rates but how they get there and the speed at which they move, thats the key. Morgan, back to you. Such a good point former Goldman SachsCeo Lloyd Blankfein tweeting about Elizabeth Warrens ad. Surprised to be featured in senator warrens campaign ad given the many severe critics she has out there. Not my candidate but we align on many issues, villefication of people as a member 6 her group, may be good for her campaign maybe tribalism is in her dna. Weve been talking about it, maybe that is a broad risk of rhetoric here, it does implicate warfare, or the sense of it. Its not surprising to see the folks that are featured starting to respond sfwlt way y sfwlt. The way you know this is a resident issue with the base shes going f ing for is that s keeps going with it. Blankfein, i guess its not fair to say why i find myself in this category but used to run Goldman Sachs. And coming up in the next half hour with scott wapner to respond to this. Its a Television Interview you do not want to miss. Meanwhile, taking a look at the averages, taking a breather. Dow down 68 point, s p down 7. Walmart despite better than expected earnings is going to turn negative as well. Thats it for squawk alley. Well send it over to wapner and half. Lee cooperman coming up in a few minutes. Im scott wapner, apple, walmart, disney making headlines today. Do three of this years best trades still have room to run. It is 12 noon. This is the halftime report. Darlings of the dow. A beat and a rise for walmart. Big price hikes for disney but a rare sale goal for apple a growing wave of