Ameritrade becky quick will join us in a few moments. A lot of conversations about what we think the brokerage business is now with zero commissions, how it leads to Advisory Services and implications around Financial Services. It is best performing stock in the s p, e trade the word speaks to the fact theres expectation of more consolidation. What it means for tech startups, names like robin hood and names out there, brought in disruption, now being given a run for their money. I dont know why e trade is the word in terms of more consolidation. You would think thats a big plump turkey ready to be stuffed. I think the market expected that name to be first to be taken out. Often times when these things happen, the next one ends up getting bit up thinking back 20 years to when e trade was robinhood. They were the new kid on the block, shaking up the way the others were operating. Now were in interesting space where little companies are having an impact, but the older companies, your fidelity, van guard, that are private, and Td Ameritrade and Charles Schwab potentially getting into interesting space. Lets head back uptown. Meantime, caulk about that story more this hour but david faber is at Liberty Media investor day, sitting down with sirius xm Ceo Jim Meyer thats right, morgan. We get these chances usually once a year. Nice to do it. Nice to see you. Good to be here. A good year for your company. Start with pandora, we talked about prospects of the deal, you hadnt yet brought it all together thats not the case any longer what synergies can you tell viewers about that youve seen in terms of two platforms, sirius and pandora start with first im probably more excited about strategic rationale for pandora than i was, i was excited a year ago, now i feel that it is absolutely the right thing for our company. We owned it about nine months. Integration has gone well. We have done what i call easy but hard things, combine corporate functions and frankly exceeded what we thought were the cost synergies we could get. We have been careful about leaving Product Development and marketing alone. Were beginning to integrate those into one team. So we have one team focusing on sirius xm app and pandora app. If you look at sirius two years ago, we probably had 250 people maybe working on Digital Transition take that now combined with pandora, were at a thousand when those road maps converge, we will have the opportunity to use thousand for more powerful things im pleased about that cost is not easy but easier to identify in terms of revenue synergy, harder to come by are there any real benefits in terms of either platform benefitting from having the other that will generate higher Revenue Growth and other i definitely believe there will be. Were continuing to test a lot of things. We began recently moving and testing sirius content as part of pandora offering, creating windows perhaps when available at payroll and when it is available free and were learning a lot i do believe it will yield big results. Were big in digital advertising. Were the leader in Digital Audio advertising with well over a billion dollars. I tell you why thats important, david, one thing im sure of, i have two grandchildren im positive theyre going to consume audio. One of the great things about what we do, we know people love our product. What im not positive is what the revenue models will be five years or ten years from now. In my opinion you have to get really good at subscription, we are. You have to get really good at digital advertising. We now are and you have to get really good at cross promotion between the two. Thats the part where were going to have to work hard on in the next 18 months. Podcasting is something we seem to be talking more about than a year or two years ago sirius, you have the shows, the personalities already, in terms of howard stern and so many others does podcasting become a more important part of the Value Proposition of pandora as well yes, without question there are debates what the slope of the lines will be it is going to grow exponentially. Why people have always loved talk content. It is good for you, by the way theyve always loved talk content. Younger people consume it differently than people from my generation by the way, i continue to lead in talk. There will always be shows, episodes, and always be ways to cut it in snippets for different Attention Spans and different intentions so were in the middle of that whole thing getting mixed together and where are we going to end up. One of podcasts im really excited about, we announced in the last Earnings Call an association with marvel. These guys, everything they touch is magic, theyre creative geniuses were really excited about the effort theyre putting forward i think what youre going to see is kind of what i just described, youre going to see an effort with marvel on a channel, an effort with marvel thats episodic and another one thats podcast oriented, then well put it out there and well see which way, you know, consumers go the beauty is today, by the way, with the combination, we now have 100 million listeners we have 38 million self paying customers between both platforms, another 65 million that are in the free service in pandora or in a trial somewhere with sirius xm gives us tremendous leverage to take things, test them across and find out which way people enjoy them more. I think well find they enjoy them multiple ways. We can expect a proliferation of podcasting listening opportunities. Yes we have a little work to do to catch up on some of the technology side. I think youll see us very focused on that in the next three to six months. What does that mean, what are you lagging in in terms of technology, what do you need to do you need to be very good, one thing i learned in the last nine months, ad tech is crucial, and you need to be good at it. Being able to insert ads in different ways were great at it in music. We have a transition that pandora never did for spoken word, we have to get that bridged the next couple months. Something we always have to talk about is automotive in general, what you see in terms of trends both new, used, you know, anything alarming to you great country i know whats going on in washington this week, hard to believe, but it is the american customer in our opinion is feeling good the car business is great. Sure, it is going to moderate between 17000016. 3 do i like 17 better than low 16, even at low 16, still fabulous the business now, i can tell you is good. What were seeing for what we saw in october and then my contacts in the car industry are bullish, the used market is really good now. And so i just dont see, maybe i wont ee, but im not worried what that business looks like. When you look at the car business itself, the retail and wholesale inventories are in fabulous shape which is always a good sign of health to me, so i dont see the storm clouds right now. Finally, we end every interview with the same question keeping stern happy . Keeping him happy, we just love him opened a brand new studio in hollywood three weeks ago. I think even howard impressed himself what a big star he is. The quality of shows, lineup of stars to support it was outstanding. We love howard we want howard with us as long as he wants to be. Lucrative partnership for you both. Thank you very much. Youre welcome. Jim, thank you always appreciate you taking time jim meyer, ceo of sirius. Nbc news has a story out that the president hosted a secret previously undisclosed dinner with Mark Zuckerberg and peter teal, a facebook board member took place during the recent visit to washington in october when he testified in front of Congress Regarding libra the agenda, why the meeting was not made public remains unclear. White house declined to comment. Facebook made a statement to cnbc saying as is normal for ceo of a major u. S. Company, mark accepted invitation to have dinner with the president and first lady at the white house. Thats on the heels of a meeting with tim cook in texas, and zuckerbergs appearance in the oval back in september the only odd thing about this is often when the president has a dinner of note like this, it will be made public. So not clear why that wasnt done, especially given the fact that we saw trump with zuckerberg in the oval not too long ago i think its sort of given the timing of when we got news yesterday versus the president in austin, texas with tim cook of apple looking at manufacturing for the mac pro, it just sort of draws a stark contrast between the relationship at least publicly based on what we know between both of these ceos and president trump, it is just interesting that would be kept secret or at least not be Public Knowledge when simultaneously you have this very Public Relationship with another big name from Silicon Valley also want to point out again for the record, the president tweeting about 16 hours ago today i opened a major apple manufacturing plant in texas, et cetera et cetera it wasnt opening. It had been open theyre making a computer there, a new version of the computer. The jobs that are there have been there they would have gone to china if apple were subject to the same tariffs that other companies are. Theres a bit of optics. The president tweeted about three hours ago that was more accurate about the new version of mac probuilt there. The messaging there, it is election season already. And these companies have to operate in a political context as we are seeing more and more well get more from david at Liberty Media investor day, including exclusive with charter chairman and ceo tom rutledge at 1 00 p. M. Eastern. Dont go anywhere. Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. Lets get back to a big story, news that schwab is in talks to buy ameritrade. Becky quick broke the story earlier this morning, joins us now with more. Hey, becky. Great to see you guys this is such an interesting story. Theres been so much turmoil in this industry leading up to this you saw the big kickoff of zero commissions, that was kicked off earlier this year. Charles sh wachwab was the firsf big brokers, interactive ones did it a few days before turned up the pressure, Charles Schwab did it, and everybody followed suit. What happens if you go to zero commissions, how do you make money. Deal like this is a big step toward that. This is something where you see the assets getting combined, you would see lots of slashing when it comes to spending at all of the different places thats why a deal like this makes sense. Thats why you see the stock up today. Charles schwab up now, Td Ameritrade up almost 20 you did see Td Ameritrade higher a year ago, that was before zero commissions came along the idea here, this is the number one, number two of the publicly traded online brokerages getting together, but theres so much competition coming these days from all directions, van guard, fidelity, lots of other players out there. We talked about the idea of whether or not you would see Justice Department stepping in on this. A lot of people we have spoken with say they dont think so, it has gotten to be a difficult business these days. Obviously zero commissions is great news for any of the consumers playing in this space, anybody making trades on these things, but it leaves a question how they make money, how they maintain profits Something Like this would mean their Asset Management would be close to 5 trillion, and thats a big deal. 7. 5 higher for schwab is kind of unusual when theres the idea somebody is buying somebody else for billions and billions for the stock to be up does that speak to how steep people expect cost cuts would be at both places that so much would flow to the bottom line . Probably. Obviously the shareholders on both ends of this like the deal. It would be good news. Again, you would see consolidation in a lot of arenas jim cramer spoke with us, one of the points was that, you would see a marketing spend cut. These are businesses where they have the platform, the portfolio thats set up. A lot of it can get ramped up. It would be easier to put together than some of the traditional banks, traditional investment banks becky, the word of the day seems to be scale. I know you touched on it the fact were seeing e trade trade down 9 , Interactive Brokers down slightly as well. Theres expectation to see more consolidation, right i think consolidation had been a big idea. E trade is the third biggest, market cap of 10 billion, and the thought was maybe Td Ameritrade which has been taking other brokerages could have been a buyer for e trade. If theyre not there to buy it, that raises the question of what comes next. Becky, thank you. I know youll continue to follow this story for more, lets bring in Business InsiderHenry Blodget as our own kate rooney henry, does this take you back like it does me . Whats your take on significance of this, the individual investor level, not sure people feel it that much unless you trade a lot. Thats right. Easy for folks that trade a lot, benefit from this, this has been a commodity a long time, now the price has gone down from price in the 1990s, now they have to make the money elsewhere it is about scale. Look across the businesses, there are so many things they dont need to do twice those things will be consolidated or dropped and ultimately be more profitable. Kate, part of the reason were seeing this is because of disruption from Silicon Valley and names like robin hood that pioneered the idea of zero commission if you well what is this doing to the startup landscape and is there argument to be had all of the millennials and gen zers find it more attractive to go to schwab . They set the stage with zero commissions, but you have square and sofi in that space could feel pain. Wealth front and betterment on the Wealth Management side theres pressure now that there are zero fees, thats not enough to get them in the door andkee them theyre launching more banking products a ton of them launching Cash Management or deposit account. They need to up their offerings in the banks spaying, which as you know isnt easy, takes some time analysts said for a long time theres potential when these guys hit a certain level of assets in the accounts, theres not a lot stopping them moving to Charles Schwab, now that they have scale, can spend more on technology they call it the henry, high earner, not rich yet when those people get to a certain amount, if Charles Schwab has that, theres not much to slow them down analysts are surprised there isnt more m and a in private markets. Could you see it on robo guys inside or some of these startups. You used to be henry, sold, cashed out now you have to change your name sorry, go ahead. Morgan. I was going to touch on the same thing, get your reaction to the henry, the idea big brokerages potentially becoming bigger. One thing happening in the Financial Services industry is generational shift, robin hood, betterment and others have gotten that early millennial audience the best is well let them get rich then theyll move the money to us my guess is youre going to see a lot of folks stay where they are. If robin hood develops other capabilities, money maybe be stickier than folks think. I think well see a lot more consolidation here firms benefit from being enormous all right kate rooney, thanks for being with us. Henry, before you go, we want to get your thoughts on facebook. Dowjones reporting the company is considering changes to its political ad policy. Not perhaps a huge surprise, given twitter, jack dorsey moved quickly, google out on not saying theyre not doing political ads, narrowing ways they can be targeted by location, couple other categories, not down to exactly how people are voting. Yes and i would be willing to bet a little money this was a prime topic at the dinner between the president of the United States and Mark Zuckerberg because changes reportedly would have a big impact on the Trump Campaign strategy on facebook and it was used effectively in the last election a lot of concern around that it is interesting to see facebook doing something again, they made the point, you can lie on the platform, thats fine there was huge blow back for that now theyre approaching from another side, if we control targeting a little bit, it is something. A wild hour of social media headlines. This from dowjones on facebook. Wire saying twitter will enable users to hide replies. Some incremental movement in the way people use platforms as there will continue to be. Stepping back from all of this this is a multi year trend i think the social platforms and platforms like youtube gradually raise the bar for level of discourse and content theyre distributing original idea was we have no responsibility, do whatever you want then the platform realized actually there are some things we dont want on there, i think that bar will continue to get raised im not sure where this is going to take us though. Maybe google has done some work, run numbers, figured out what they get when they eliminate ways of targeting political ads. I wonder, at some point do we need to see models for what happens when you start limiting the reach of political ads, whether it is good, whether there are unintended consequences im not saying regulation necessarily but transparency the problem is it is extraordinarily complicated. All these decisions are second guessed. Two sophisticated teams say youre penalizing our team, helps the other team, huge political Conversation Companies are in a tough position no question. But we saw with facebook when you come out, say it is totally fine to lie and use our platform to spread misinformation, people are going to say wait a minute, that doesnt feel right. There has to be somber solution. Lying and politics . Would that ever happen never it is different now were at a different level here. Good to have you with us. Great to be here. Were saying goodbye to jon earlier, he is sitting down to sit down with michael dell at the Economic Club of new york top of the hour, a good conversation on squawk a couple days now, you have more time now. If it is not a good conversation, i will take the blame. Were going to talk about the future of the next decade. He has been running della long time 35 years i wonder how he feels about tim cook getting all up in his house, austin, there with the president. Thats michael dell country. A lot of people want to be in austin now people used to talk to me how they wanted to be the next Silicon Valley now cities are talking about how they want to be the next austin. He certainly had a front row seat to that trends around ai and globalization, around data, data privacy, Data Protection were going to have the camera there, well bring you all of the best looking forward to it, jon. Were going to miss you here though meantime, were going to check where we stand across the major averages theyre all lower now. Dow down 57 points s p down twotenths a percent. So is the nasdaq back in a moment ay, 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. If youre on medicare, remember, the annual Enrollment Period is here. The time to choose your medicare coverage. Begins october 15th and ends december 7th. So call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits. Including an aarp Medicare Advantage plan from unitedhealthcare. It can combine medicare parts a and b, which is your hospital and doctor coverage. With part d Prescription Drug coverage, and more, all in one simple plan. For a low monthly premium or in some areas, no plan premium at all. Take advantage of primary care doctor visits. Preventive dental care and an eye exam. All for a 0 copay. Plus, earn rewards for completing other Preventive Care activities, like flu shots and annual physicals. You could also get over 150 in free health and wellness products. So nows the time to look at unitedhealthcares variety of plans, and let us help find the one that works best for you. Also ask about our ppo plans that let you see any doctor who accepts medicare, without a referral. And take advantage of innetwork costs, at home or traveling, when you see doctors in the Unitedhealthcare Medicare national network. With many of our Medicare Advantage plans, youll have 0 copays on the most common prescriptions. In fact, last year our Medicare Advantage plan members saved an average of over 6,500. And with renew active, enjoy a free gym membership and up to 115 in rewards for staying active. You can count on our guidance and support to help you get the most out of your plan. We can also help you schedule appointments or find a specialist. Annual enrollment ends december 7th. Start taking advantage of all the benefits. Of the only Medicare Advantage plans with the aarp name. We make it easy to enroll, too. So call unitedhealthcare or go online today. [sfx mnemonic] the headlines keep coming at house intelligence back to ylan mui in washington. Carl, the hearing is now in recess two witnesses that were testifying today are fiona hill, former National Security council official and david holmes, state Department Aid much of the questioning from democrats this morning has been focused on the role of russia, how it could potentially benefit from the debunked theory ukraine was the one meddling in the 2016 elections. Why would it be to Vladimir Putins advantage to promote this theory of ukraine interference first of all, to deflect from allegations of russian interference second of all, drive a wedge between the United States and ukraine which russia wants to essentially get back into its sphere of influence. Thirdly, to besmerj ukraine and Political Leadership to degrade, erode support from ukraine from other key partners in europe and elsewhere. Democrats sought to establish there was an understanding that any request to investigate burisma was actually a request to investigate the bidens. It was very apparent to me thats what Rudy Giuliani intended, yes, that burisma was linked to the bidens, and he said this publicly repeatedly. Mr. Holmes, you also understood burisma was code for bidens yes republicans tried to dismantle that when they come back from recess, guys earlier this morning, ranking republican devin nunes said democrats are the ones pedaling conspiracy theories against the president. Thank you for bringing us the latest. Time for a news update sue herera has that at hq. I do indeed good morning, morgan, good morning, everyone. Heres whats happening. Massachusetts lawmakers passing a groundbreaking ban on sale of flavored tobacco products, including vaping products and Menthol Cigarettes the big would levy an excise tax on vaping products, requires health insurers, including the state Medicaid Program to cover Tobacco Cessation counseling. Secret service is investigating a suspicious vehicle that tried to enter the white house complex. The black suv attempted to follow through a checkpoint this morning. It was stopped with the driver taken into custody. Players tribune will be part of mint media portfolio. It was founded by former shortstop derek jeter. He will join mint media board of directors. And parisians enjoy a taes of the newest french red wine whose unveiling is anticipated by wine lovers around the world. First uncorked every year on the third thursday in november it goes well with turkey, just in time with thanksgiving. Thats the news update this hour send it back downtown to you guys carl thanks very much. European markets are about to close dom chu has the action overseas. They may or may not be drinking that, but those markets in europe are closing on the weaker side generally speaking it is more mixed seeing that red tick into the situation with majors, concerns are in play about faith of u. S. china trade talks and laggards in trading are economically sensitive sectors, look at industrials, materials, mining related companies, tech stocks as well stocks individually on the move, fiat chrysler, after headlines that General Motors is filing a lawsuit the company had unfair treatment from auto unions in exchange for corruption and bribes you can see those shares moving. Watching shares of lvmh. Reuters reported it raised the bid to acquire tiffany, and has 16 billion in terms of deal size, and will get a look at the tiffany books. Those shares moving to the down side and royal mail, said plans for International Expansion are a little behind schedule thats overshadowing more positive comments related to profits posted overall, interesting trade we will finish marginally to the down side in european trade. Back to you. Thanks very much. A big day continues for Liberty Media. David faber is there talking to just about everybody highlights from a sit down with john malone in a minute. [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 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. David faber sitting down with david malone at investor day. He joins us with highlights from the conversation this is where it gets interesting, right, david . Yeah. We jump all over the place as you well know, carl. Big picture down to the nittygritty liberty has its hand in so many things as does malone. Charter, the Big Cable Company they own at liberty, 27 we talked about their business the stock performed well in the last year. Theres also the question of consolidation, whether or not it would consider acquiring an altice, or even though theres huge discrepancy in size, maybe the other way around i asked malone. I dont have enough fingers to count the number of times i talked to patrick about this sure, theres a lot of synergy and altice getting together with charter or comcast frankly you know, i think patrick is wanting to have a level of control. And he is willing to pay premium to get control he is too small a footprint. Cant buy charter. Thats the point. I know he mieght like to, has to be the other way. He is an ambitious, smart guy. You think the sothebys deal, personal purchase, what, youre smiling. I think he stole it you do . I think he did. I mean, in the sense that he ends up with it, it cost him very little. The way he structured it. Why do you say that it has been explained to me how, why it was worth. What did he pay, four bills three and a half, yeah. My understanding is theres a lot of real estate, a lot of receivables, there was a lot of overhead and when he is done with it, he will own it for free hes a very smart guy. Interesting there on sothebys, unexpected place the conversation went. Speaking of rich guys a lot of people are smart, masa is one we talk about given that softbank is under pressure, i talked to mr. Malone about masa. I like masa, putting the numbers about. He has a Balance Sheet nobody can understand so, you know, hes had some home runs, no question. He has. Difficult, more difficult times for softbank yeah. He took some big rides some of them are not performing for him, you know, at the moment but those are cycles. You think so . I dont know. I mean, i look at each one of these deep loss businesses, it is the old hot dog story if i lose ten cents on every hot dog i sell, i make it up in scale, but it doesnt work youve got to have an argument that scale will improve marginal economics, and i never quite understood uber, never understood why dara took the job. You didnt . I didnt. It was a hell of a challenge he is a very good guy. So it will be really interesting to see how that goes. It is fascinating with uber in particular that softbank in terms of my coverage, funding the biggest investor, yet funding some of their competitors forcing them to lose money, whether it is doordash in terms of competing masa maybe thinks theyll all combine at some point to get scale. Meanwhile, youre capturing volume and ultimately you put them together, youve got the problem is, your asset is your drivers. And if the drivers work for 2 or 3 different digital players, it is not really your asset. You dont like the uber Business Model im gathering well, i think if it was tweaked in some ways it could be very good, but they really need to capture those drivers, even if it costs them something, right, so theyre not moving around, so scale really means something. You know, if ive got 70 of all cars in a metro area, customers want to use me, ill provide better service, and drivers will like that because ultimately theyre going to make more money, but right now in a world where you have three or four competitors in a metro and drivers working for all of them, i dont see where scale changes the economics. That kind of thing but i dont know the business that well. But you were surprised he took the job i was surprised he took the job. He did such a great job at expedia. Expedia has been under pressure for reasons we discussed. Any conversation these days, perhaps wander into politics, malone, largest land owner in the United States. One of its wealthiest residents. He did talk about his concerns in terms of the attacks on wealth or potential attacks weve heard from any number of guests that come on in recent days, months, to talk about rise of Elizabeth Warren or Bernie Sanders and socialism. Interestingly though malone would support a democrat take a listen. Vote for bloomberg, im a libertarian. I dont know that he has much of a chance, but i think a good solid, you know, look, i think a lot of things trump has tried to do, identifying problems, trying to solve them, has been great. I just dont think he is the right guy to do it he just doesnt build a team i think thats the number one problem. Half the people that hes hired and thrown under the bus are now trying to kill him i mean, what kind of thing is that its chaos so weve got a great country, i think we have a great system of laws, the constitution should be protected at all costs, and i think well probably figure it out. But right now, its scary. Right now its scary because the political dwigivisions in the country are so extreme, you dont see intelligent people trying to Work Together to solve problems interesting thoughts there from malone. Send it back to you. David, great stuff. Definitely covering a lot of ground given the fact that you cover this event, this conference every year, you sit down with many of these people every year, is there a certain theme thats emerged this year or something that surprised you in some of the conversations you have been having more broadly . You know, i mean, a lot of it is the same conversations we have so often, rise of streaming, significant changes in the landscape they play, certainly liberty does for them, morgan, it is funny, music is an important part of their world. I spoke to jim meyer, between sirius, pandora, 5 ownership. I heart radio. And live nation, theyre connected to one of your great loves, music and david, your conversation about masa on a day where we get confirmation of layoffs at wework, 2400 around the globe. Should find out more tomorrow as he meets with employees. Would you call it criticism of masas model certainly this part of the cycle we think he is in. Yeah i think it bears close watching and examination in softbank, what will happen i talked about it with you many times. Certainly the wework investment, had masa on a couple weeks ago, say it was fault in his judgment to some extent i think malone is sort of saying something critical when he talks about not having any understanding, what did he say, about the Balance Sheet no one can understand he is not necessarily alone in that, carl wework as expected, well see who takes over the leadership there. Weve got to keep a close eye on sprint the trial starts fairly soon thats a very important deal that needs to get done for softbank in terms of selling a stake. Trading into what will be the larger t mobile, sprint combination. No shortage of news as we head to final weeks of the year. Interesting to hear comments from mr. Malone, given his career and history in deal making, how critical about deals we covered and that you talked about in the interview david, great stuff, thank you. Sure thing. Again, be sure to tune in later today for the exchange david sits down for another exclusive with chart chairman and ceo tom rutledge at 1 00 p. M. Eastern this afternoon. A lot more squawk alley igs ahe is ahead stay with us 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Step up, please. Empty your pockets. Looks like youre all set for that business trip. Youve got your smartphone, laptop, your other smartphone. Woman is this all the devices you have . Your tablet. Seriously . Smartwatch, your backup tablet, and. Woman anything else in your bag . Whatever that is. beeping this isnt working. Introducing Samsung Mobile workspace solutions. With the galaxy note10 with dex software, you can run your entire business on the one device that does it all. Samsung business solutions. On the one device that does it all. people talking for every dollar you spend at a small business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Welcome back take a look at shares of macys, miss on sales, cut of full year outlook is the story there shares are down about 1. 5 , post earnings still down 9 . 5for the week more squawk alley after the break. To geico. And this is how it made me feel. It was like that feeling when you go to taco night at your favorite restaurant. And theyre the besttasting tacos in the entire world. And just when you think it couldnt get any better, they bring you out another taco. Cuz they made an extra one. Extra taco geico. Fifteen minutes could save you fifteen percent or more on car insurance. What a day for data. Lei, home sales. The Santelli Exchange with rick in chicago rick good morning. You know what, yes, we had a lot of data. Weve had important data this week and some very firm data points this week think about some of the housing numbers earlier in the week but certainly seems the market is not paying a whole lot of attention to fundamentals. As a matter of fact, i think we can sum up whats going on soft rates, really lofty stocks and at least for now low vol so to the white board theres tenyear note yields this is generally what happened. Kind of went down then flat. The important part what happens starting august 1st. We clearly lost yield ground and the big halloween surprise, one day after the fed lowered for the third time a quarter point on the 30th. 169. Yesterday we came close to it but bounced a bit but no doubt it certainly seems as though theres downside pressure. Now, lets look at whats going on with regard to the vix. You look at the vix. We are really, really at low levels and if you look at the treasury vix, the ty vix, we are also at very low levels. Normally low levels of volatility and lofty stocks makes everybody kind of giddy with happiness but theres some very odd things going on okay, heres the dollar index. Monday, tuesday, wednesday and today, heres closing levels and thats why we have the ish last i looked it was a bit under 98 even. Close, 97, 93, 97. 79 squished look at the dollar yen, 108, the pound versus the dollar, ranges from 129. 24 to 129. 03. Look how tight these are and add in some other variables. You have a fed thats on pause and if you looked at fed fund futures on halloween youll see they also basically flatten lined sideways and that is causing the yield curve to flatten for obvious reasons. Short rates will hold steady without the notion of a fed and long end is just melting so where does that leave us . Heres the payoff. Risk parity. What is risk parity . Usually when the vix is high, ty vix is high, because the new models show that when volatility is low, large portfolios especially of equities get bigger and bigger and bigger and when volatility falls, yes, you guessed it you deconstruct those bigger and make them smaller. We havent quite seen this part yet, but all the variables are there. Time to pay attention. Carl, back to you. All right, rick, thanks well see you in a little while. We are range bound today dow is down 77 right again near 3100. Squawk alley is back in three minutes. 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. [spokesman] if youve tried colleg group cheering shed, 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 or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. Welcome back to squawk alley attention turns to elon musks tesla, spacex in the news as well. The starship mk1 prototype partially exploding during a test yesterday at the companys launch site. Can you see that right there on your screen erupting with plumes of gas and smoke sending some shrapnel soaring into the air. Quote, the purpose of todays test was to pressurize systems to the max so the outcome was not completely unexpected. No injuries, nor can this a serious setback. This prototype is meant to test the design of starship, the massive spacecraft that spacex is developing to transport cargo and people to deep space destinations like the moon and mars this vehicle actually was the same one that elon musk showed off in september claiming it could do flights to low altitudes within the next couple of months and that some version of starship could reach orbit. Erpt orbit within six months musk tweeting it may no longer fly in prototype and conduct tests with a newer up to date model the Company Plans to build. This had some value as a manufacturer pathfinder but flight design is quite different. Space is hard and that failure is part of development and design process at times. It is people say its not rocket science. This is actually rocket science. He has a showdown with blue origin and with gm i dont know if you saw mary baronmarys comments the pickup on sale in 2021 and thats when well get his own. That tesla version tonight so certainly one to watch. The other headline we got lost on the speaker of the house, nancy pelosi, saying that the house might not vote on a retooled nafta by year end of course, the trade headlines have been so confusing over the past 24 hours, whether or not well get a phase one sign this year as well so the markets having to take all of that into account. Meantime, you have impeachment hearings continuing in d. C well monitor that and the dow is down 87 points. S p is lower as well. Our thanks to david faber for a great day. To the judge and the half. Carl, thanks so much. Im scott wapner the brokerage bombshell. Schwab in taubs to buy Td Ameritrade that could alter the investing landscape. How does it impact your money . Its 12 noon this is the halftime report. Announcer a major shakeout in the battle for your money what it means for trading. Financial advisers and investors. A miss by macys sales fall short and a slashed outlook. The stock taking a hit where it goes from here as we head into the crucial Holiday Shopping season. And another legendary hedge fund