Speaker pelosi remains optimistic about a preelection aid package. I dont know talks are continuing today not sure how Mitch Mcconnell feels about all that yeah, we got meadows on the tape too making some comments about that well get to that in a bit, guys lets start with snap. Hard to start anywhere else as they crush the estimates, revenue up 50. Rbc this morning says the growth looks less like a v and more look a check mark. And i saw you gave evan spiegel shoutouts on twitter last night. I had to. Doesnt have a lot of followers. Didnt bounce it back to me. Unlike there is some people who get right involved like one of my guests today. One thing i found that was spectacular was when i first started the street, we had a guy from advertising, he said, look, the holy grail is to get someone to start using colgate when theyre 16 snap augmented reality is all about reaching that age before they decide, you any, look, it is going to be old spice or going to be whatever, i dont know, church and dwight or clorox, whatever they have and what matters is that you can reach these people, you cant reach them to conventional tv anymore. David, they dont watch the shows because they have commercials, okay . They dont watch the shows because they think the shows arent any good. They like this and you know it. Your kids are addicted to snap. They use it to communicate. We use it as we old people use text were pretty proud of the fact we use text. I cant even communicate with my kids because theyre not texting, theyre on snap, which im not on but, jim, it is beyond just the daily average users, which was daily active users, which increased 18 over 249 million it is the revenue number and the revenue number up 52 to 679 million raises a question as to whether or not they also are starting to get some ad budgets diverted from tv thats exactly my point i think they are and i think that this is the day of traditional advertising, because the numbers were seeing from snap, carl, from pinterest, i think advertisers, for a long time, were about having martini lunches. You cant go out anymore nobody goes out. What happens is theyre not putting on tv, theyre snap theyre using snap, augmented reality, looking at pinterest, thats how you you want to figure out how to take a trip, go on pinterest, the ads are integrated, theyre personalized i worked in radio. When radio was big before the screen got small but this is it how about that Ella Fitzgerald last night holy cow, carl i do think if you dont follow carl, carl is the best to follow. Totally, without a doubt. Makes me want to buy twitter. You look at these numbers, you realize maybe tv is doing what it did to the movies, movies, let alone radio and now i think snap is doing to tv. It is really extraordinary lets talk some price targets, jim well get to the pins upgrade later today. Two of them. Yesterday, ever corps to 35 snap and it is basically there. We got a few more today, morgan stanley, 36. Rbc, 45. How are we going to know when it starts to get rich again i think that this is a real moving target. Look at facebook, where that is. Once you get rolling, once you start i heard someone say, listen, it is mostly international. I dont really care. Facebook is mostly international. Thats when it took off. So i look at these numbers and i think, all right, you got a juggernaut, in this market, it lasts for more than a quarter. And i think this is real by the way, spiegel on the Conference Call, he sounded every bit like someone who is if you list to be the early Conference Calls, they were, like, our gang comedy. Not now. David, spiegel speaks the speak. Hes focused. He talks the talk. He talks the talk they are theyre closing that gap with twitter which is also something i heard this morning that is important and they, you know, they did to their credit, im told, in talking to investors, quite some time ago, they were talking about getting back to 50 Revenue Growth they were laughed at to a certain extent when they did that and now they delivered it. I laughed at them the same way that John Travolta laughed at carrie in one of the greatest movies ever. Like, you know, theyre all going to laugh at you, i was part of the chorus, i dumped the blood on Evan Spiegels head what matters is not only did he beat the numbers, no longer are we worried about the fees. Remember the fees he had to pay for his data center, everyone thought that was going to be the strangle and wouldnt make it and had that cfo, used to call you and, like, hey, listen, were great, really not great. Well, now it is just one professionally run company, maybe the most professional of all the internet Conference Calls other than facebook. Really . Yes have risen that quickly carl, this was a magnificent Conference Call. Magnificent. Just to give viewers a sense of what it was like, here is evan last night. As we look at, you know, competition more broadly, Entertainment Services compete with the content section of our business the core engagement on snapchat is communication and that has been impacted by covid in the areas that are more open, like europe and what not, we see less of an impact we think some of that is due to the fact that people are making fewer when theyre stuck in their houses thats why were paying attention to but overall our audience in the u. S. And in north america is growing. Jim, i know you were defending i know you were defending netflix before the top of the hour, but can you help viewers understand the difference in dynamics versus what is driving snap versus what is driving netflix in. Only thing he did wrong, ill get in touch with him, he used two, you knows, you never say, you know, i thought we learned that in fifth grade. He used, you know, it took away from the artistry of the Conference Call. What happened with snap is augmented reality. It is very much in touch with the customers. The the android redo, was incredibly important netflix if you want to contrast netflix, what they did in the previous Conference Call, what they do is basically say, here is our internal forecast, everybody is freaking out. But if you listen to netflix Conference Call, you recognize that they have gotten this this national to International Model where there are they mention mexican novella you must watch. I wrote down everything they have, carl and people watching 72 million, 80 million what plays in korea, plays in the united states, theyre talking about having a slate of movies next year that makes you feel like, what is everyone else moaning about. I think netflix, which i call one of my magnificent seven, when it goes down, you buy it, i love the call. Now, some may think that theyre complacent david, they werent complacent theyre original theyre artists. And they know how to produce a slate that makes it so that subs will go up. Yeah, although there seems to be concern, not in the u. S. , jim, but in their areas with they have been relight on for growth you mentioned international earlier and certainly for netflix thats been very important to their growth. And in latin america, and india they had a lot of churn. Thats an important area for them and so the growth could be a bit harder particularly in some regions outside of the u. S. That had been hit hard by the pandemic where unemployment is higher and people are turning off the service. He he isaid listen, he said, youre not going to see numbers like this. These numbers, hes saying these numbers are ridiculous it is completely pull through. In selling lysol or mr. Clean, he recognized his products, once youve seen them, maybe you dont need to see them again, i keep buying mr. Clean and lysol. By the way, look at those four things there. Those four bullets dont exactly speak to your positive forecast. By the way, you very well may end up being right, you typically are. But q3 subscriber distance short of expectations, they disappointed on their growth forecast biggest earnings miss they ever had and three straight quarters. Missing estimates we know, that is sort of yeah, go ahead. What . Go ahead. You dont think any of that points to if this company isnt able to it is an Incredible Company it has been, as we said earlier, has become what you refer to now as tv. They indicate it on their own, where shows that are produced by others that are on other networks dont actually come to life until they hit netflix. They used to have far more content, but, carl, just people have to listen to this call the notion of the call is, okay, we made this internal forecast we knew we pulled through a lot. We didnt make the internal forecast of the let me tell you what were going to do next year i listened to the slate of movies, and when i see the awards and what they do, i just think that their programming is going to be brilliant. Hillbilly ig, i read the book, ill watch that. It is ron howard, for heavens sake david looks at it and realizes, thats jims right, i got to watch that the first time, the first time that davids looked at me in 22 years like, one of those like a scoobydoo he did a scoobydoo on me. Well, jim, your point is good in that hastings has long talked about various forms of competition that are nontraditional, sleep being one of them. Last night he did specifically reference hbo and tiktok listen to that we compete so broadly, we compete for time against, you know, tiktok and youtube as well as hbo as well as fortnite really the limit for us is what is the quality of our service, how often, how many nights do you say, i want to go to netflix and watch the next show . Well this morning, jim, more suggestions about pricing power, phasing out free trials, dont try setting up new Gmail Account to get a few months free, those things in north america look maybe like theyre coming off. Yeah, listen, dont try to pry my netflix from my cold dead hands. Netflix is rather remarkable he welcomes these guys, he welcomes them. Can you imagine if youre watching major league baseball, the world series, i dont know if youre aware, and you say, you know what, i really welcome football against us. You would be fired like, well, did you know, thursday night game that were playing against the giants and the eagles wow, i welcome it. You would be fired youre not supposed to do that but Reed Hastings is so confident, he welcomes the competition. Thats my kind of guy. Thats my belichick. Hes my belichick with a human face hes your belichick, huh . With a human face though. Right, right. All right. Well get to Free Cash Flow a bit later. Did generate more than might have been anticipated but not spending as much given the production shutdowns. Admit you gave me a scoobydoo. I did thank you youre welcome. Done. Guys, well take a break. Hans vestberg will join us to talk about verizons quarter, nice beat on wireless subs, raising their guidance to gm and texan and the pins upgrade and thsle ack downgrade when squawk on the street comes back you can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Hans vestberg will be joining us later in the hour the stock doesnt appear to be poised to do too much. Wont be down, maybe up a bit. 136,000 retail post paid net ads as well. 1. 5 was the overall earnings per share number adjusted after special nongap excluding special item gets you in line at 125 versus 125 a year go there is concern and question about a price war. And something were going to want to talk to vestberg about as well. Some good money to be made, turning in your old iphone to get a new one. That subsidizes things and we got three big competitors now. It is not like tmobile taking customers from sprint anymore. No. Theyre not. I think they have a pretty darn good network yesterday we spoke substantially about antitrust and about the notion that somehow apple and google have a tieing opportunity that they have been abusing. David, if you had a price war, at t is the loser. It would be a it would be a price war where you identify whether sure giving it away below cost in order to terminate at ts ability to compete. Is there a possibility, david, that they could get to the point where at t cant spend enough to maintain its network because you see that there is a 7. 7 yield for at t and i find that anything north of six is unsustainable. You do . Yes. I dont know the answer to that we know at t has a sizable debt load they have no trouble handling that debt load at present in terms of maintaining it, maintaining the dividend, given where they are in terms of how much cash they generate, they are also in the process of raising some offloading some debt it would be seen as a positive maybe there is other asset sales that might be coming as well for at t, unclear. Stankey has not given any real articulation of any plan on that front. But well see. What would happen if someone charged them, verizon, with predatory pricing and tmobile predatory pricing, which would sell below their cost, which then knocks out at t you really think thats a possibility . Youre bringing up the idea that they would engage in some sort of price war to they could signal each other. Im not saying look, it is a violation of sherman antitrust im not saying theyll do it but, you know what, a price war, it is not like, look, if vestberg picked up the phone and called tmobile, no. But if vestberg cuts rates big, and then they are all fighting with each other and, again, we do have three now well capitalized competitors. Right i dont think it is going to happen carl, i look for situations where i can get more than 5 yield. Thats about all that you can afford 6 , ive been going over ibm, i think they can pay the div deid because i look at the cash y ie dividend i dont know 7. 7 is not reassuring. It is a red flag, carl i dont want people in this in this thinking i think i can pick up more never reach for ink at home. Buy verizon, 4 , very good, like a bond with a kicker i dont want people in something that may not that is risky. To your point, exxonmobil with it is coming up 10. 3 yield, dont reach for that. No. Dont. Thank you for that youre welcome. The prosecution rests okay. Yeah, jim you mentioned chevron several times through the lens of the yield in the last couple of weeks. There, worth is mike has come on our air, and said over and over again, not to worry his balance heat is quite good, though he did not wreck his balance sheet, hes made a series of good moves i have more faith in his 7 than i have in anybody elses 7 . Something in your eye, david can i get it for you im okay. Thank you. A little itchy. I got you have a virtual pharmacy over there. Not virtual actual what do you need za za send me a holograph of it. I have everything other than a test for got that at 2 00 today. Thats right. Covid test day hooray still to come, guys, were going to talk to larry kudlow about the status of stimulus talks, about liability protection, whether mcconnell did warn the white house and a lot more thats cinupomg think well make it in time . You may not expect the unexpected, but you can certainly take it all. The lexus es. Wow, this rain is bananas. Now available with awd. Lease the 2021 es 250 awd for 359 a month for 36 months. Experience amazing. At your lexus dealer. We stand again, you know, socially distanced, times two. I dont think youre i think your droplets end right about here. Sorry were all getting tested today every wednesday here. Great, after, after youve given it to me i wouldnt want to do that. Mad dash, we got about six minutes before we get started with opening bell. Texas instruments. Well, it was a wow. What made it a wow was really incredible everyone knew the personal electronics was good, you got that from best buy, its good, intel later this week, we know pcs are good it was automotive. Thats what drove it, the rebound of automotive, this is important, because autonation reported good. I have lithium motors, huge, theyre reporting great numbers. Right. And youre going to start to get phil lebeau with an amazing piece about a hummer hummer, 110,000 autos are back remember in february, we put the death of the auto, talking about uber, well, now it is the death of one of those well, uber had a nice comment yesterday, but everybody wants a car again because were all driving alone and we want to get places. The heck with mass transit, we regard that as not being socially distant i thought this was amazing we have to start emphasizing the car companies. I have fisker on this morning. They have a deal with magna. I thought automotive was the star of the show. A read through to nxpi . Absolutely. Thank you for that nxpi should be up 10 right now. Wow. They have even more auto. And good read through through the illinois tool works, okay. These are the ones everyone should be doing that homework and i just gave it to you. All right we got a lot more coming up, including Hans Vestberg, the ceo of verizon will be our guest shortly. And opening bell 4 1 2 minutes from now ay wh osawon the street. Jim was mentioning autos the gm news about the electric hummer a moment ago. Jim, autonation will open above 68 thats going to take out the 2015 high. This is a good example of what i was talking about earlier, keeping with netflix. But certainly with a lot of stocks like Texas Instruments. Everyone knew Texas Instruments was going to be good how could it still go up after they reported a great number the answer is when you read the Conference Call, it is about how this permanent change in peoples behavior and buying autonation is a permanent change procter, permanent change. People want a car, people want a truck, people do not want to be in a car pool and they dont want to be in mass transit and got to get around and autonation is the place to buy a car. Same with lithium motors lithia is where my daughter lived in oregon, it sounds look a car dealer, it is nationwide autos, well get through them, were starting to realize were almost through looks lo s lia cloud stock. You finish with the used auto business an d go to new, i think this is in bull market mode, like housing was watch autos, every single one. I like the parts magna, another great name. Ppg, another great name. Ppg, yeah and texan as you mentioned a moment ago opening bell here as we await more headlines regarding stimulus, which well talk about in a minute. You were watching the gm interview with phil lebeau and the promise that nicola deal being finalized and the tightening of the race as phil put it regarding Battery Technology what implications does that have for tesla . Is competition at scale finally here i think that i know that the gm people are very nice, okay so they should hold their ears youre not going to catch youre not going to catch elon hes just not going to letit happen he is one step ahead of the posse at all times and what did we say this morning on brian sullivans show, tesla, Something Like their ev is big, bigger than all the other evs combined i think there is room. I dont think it is a situation where Reed Hastings says i welcome competition. I think look, i think that elon wants to destroy competition. Im not that worried but, remember, younger people want ev and want ev stocks henrich fisker on because the world came into my twitter feed and said how can you not love henrich fisker hes a designer of pollution free cars. And because bill mcdermott, from service now, joined the board, magna made a deal with them, i felt like im cornered here in being skeptical. Ev is so do you know how much ev is loved . Yes, im aware it is in favor. Yes. Could you be more enthusiastic whats wrong . Why it is loved, okay. It is loved. The planet over. What percentage of vehicles on the road are ev . Like 1 . Yeah, about 1 . That means there is room. There is a lot of room. A lot a lot of upside. A lot of people come on the show at night, on mad money and say tamm is great it is total adjustable market. Dont act like youre in second year Business School which nobody goes to anymore there. I said it. Jim, you know what is get something play this morning is this news out of pay pal, that theyre going to allow merchants to work in some crypto stock was up 3 premarket, but what do you think that means well, crypto, there is kind of an underworld of crypto again. The crypto people think it is not an underworld. They think it ises ve very easy buy, you can call anybody, not true, not true this is a brilliant move by dan shulman. Remember dan, square does it too. One reason why square went up so much dan schhulman is about the democracy of money it is going to be part of our daily, it is hot for the year, look, this is bank with dan and get some crypto. I think you should get some crypto for your kids buy crypto for both your kids. Theyre going to enable their customers to buy, hold and sell crypt yocurrency from the pay pl account. Theyll make it available as a Funding Source at its meer chrc worldwide. What about the russians, what about regulation that certainly is the likes of some of the when the mets won the world series, were you able to find a downside, you felt bad for somebody 1986, so it has been a long time. Do you have a downside of anything i can find a yodownside of a lot of things. Thats what im here im your Debbie Downer i do think how about jpmorgan and pay pal. What about it in my ear, my producer says they are taking a shot at square and pay pal, with this new thing called quick accept. This is one example, this is like their how many times are they going to try to get try to beat pay pal it is embarrassing they had myriad times. People dont use they dont go to chase for that kind of thing. Bitcoin cash, light coin, directly within the pay pal. You talked a great deal about Digital Currency not Digital Currency, Digital Payment systems. Look at the market cap on this thing. Look what it has done since it was split off from they have been using courtesy of lisa ellis, the best analyst on this, she said your friends moffett and nathan son, Small Business to medium size they keep losing business to square, it clover, to pay pal, and do you remember once they they had chase pay and chase net. Chase is chase is, like, no, when it comes to this stuff. Small, medium size business, chase is not done it theyre just too big to handle Small Business squares not square pursued my restaurant endlessly. Endlessly. Finally couldnt take it anymore. Well, listen, to your to the point we have been making, pay pal is a larger market cap, far larger than bank of america. There are Different Things. They are Different Things and one is growing very quickly. And now it is going to allow its merchants to accept bitcoin. Im doing a panel tonight for robin hood, i cleared it, it is all fine, it is not it is the robin hood that doesnt lose money, it is the charity and were talking about the notion of what the young people want and what the new investors want and theyre not looking at market cap theyre not traditionally we look at market cap and say it is ridiculous they dont do that i do want to add, guys sorry, carl, to put a quick i did raise this question. Pay pal has been granted what they call a first of its kind conditional bit license by the new York State Department of Financial Services which is a significant regulator. Yeah, that means the end of Money Laundering in russia, just kidding, youre right. Carl, you know these new they dont lock at it aok at it and almost as big as jpmorgan, it is almost as big as u. S. Steel. I retweeted a chart this morning of the on various platforms, which participants have the largest share of sub 5 stocks and robin hood is far and away has the biggest share, users of robin hood, more than ameritra ameritrade, more than schwab theyre not looking at overall aggregate market cap. No, it is an abstraction for them and we may hate that, the people on the panel did a little pre. People dont like that it is not rigorous but or it is 1999. They always use this example theyre not phony companies these companies. This is not 1999 it is not. You can say fisker is the spacs, good execution this mornimorn morning with the woman that runs nasdaq, but they like spacs too. Spacs have been getting a bit battered lately. Enormous amount of supply, look at some of the names, some of the big ones, that have been done down like that multiplan that i followed closely has been hit hard not stopping anybody from continuing to create new spacs, still every okay, virtually every day. Still waiting on a lot of pricing though. I have two friends that are going to have spacs three friends. And they are going to announce them and one bought one, it is kind of interesting, i dont want to carl, when friends call you an say, listen, ive been approached to do a spac, it is incredible how many people are approached i was approach to do two spacs and i reminded them i have a job. It didnt even matter to them. If we got you, our spac would sell i work for gsmcnbc if you dont have a spac, youre a loser. Youre nobody. Yeah. Peter navarros spac, how is that doing kodak i havent looked at im not kidding one person who told me they had a spac, they had the greatest idea and they were she was probably 40 million. Theyre giving away money. People say, thats the fault of the fed. No, it is the sec. If they want to make it it is a way for hedge funds to park money. Instead of putting it it in cash, put it in a spac it is ten bucks. And you can vote against the deal or not, gives you an option, and thats been happening as well. It is like everybody is able to print money it is really fabulous thing. We can all print money better than getting no return whatsoever when youre in cash and no downside conceivably, not until they announce their deal and then people dont like it and pull out. Are the mints mad is the denver mint mad San Francisco mint philadelphia mint . Are they mad they print it. Got it. Carl you can tell, the letter on the coin guys, tenyear, 81 basis points. Lets get to Rick Santelli absolutely, carl. Were seeing all along maturities, the entire curve, but 10s and 30s start to zoom, zoom, zoom a bit look at 24hour chart of 10year, updating 3 1 2 at one point. Look at 4day chart, you should see we built upon the previous days high yields every session todays no exception and as we continue to do that, and look at the yield curve spreads steepening, i said for five weeks, the knobs, the steepening of that spread on the long end is always symbolic of all rates generally going up you add in this kabuki dance of trying to doll out more money with regard to congress and i think that the table is set. More fiscal stimulus will be higher rates pure and simple. But if you look at the long end indeference to the last time we were up here, it is june you see whether it is 10s or 30s and of course many are thinking that we can get through 90 basis points and test a whole 1 in tenyear note yields which sounds high considering the all time low yield, not that long ago, was a half of 1 or 50 basis points just to put that in context. Here is something very fascinating, though. If you look at that is going on with regard to 10s minus bunds, we continue to outrun european rates. Right now the difference is about 140, 141 basis points. Look at 10s on top of dollar the dollar should be going up with higher rates. But it is not. Maybe deficits are going to play a big part in that particular trade. And the chinese currency by far winning. Look at the dollar yuan. The dollar is at 27month lows carl, jim, david, back to you. Rick, well talk to you later, Rick Santelli in the meantime, after the break, well talk with Hans Vestberg of verizon, shares up three quarters of 1 were back in a moment coming up later this morning, larry kudlow, director of the National Economic council. And the next 48 hours are critical thats later this morning. Dont go away. Hoping things will pick up by q3. Yeah. Uh. Boss doug . Sorry about that. Umm. What. Its. Um. Boss you alright . [sigh] [ding] never settle with power e trade. It has powerful, easytouse tools to help you find opportunities, 24 7 support when you need answers plus some of the lowest options and futures Contract Prices around. Dont get mad. Get e trade and start trading today. Welcome back as we told you verizon out with an earnings beat for the Third Quarter this Morning Company raised its guidance and as i said, beat expectations as well and the number of subscribers added for its Wireless Service joining us now is the companys ceo Hans Vestberg. Always great to have you fresh off your Conference Call a lot of questions and a lot of concern out there that were entering into another potential price war among what are the major three major carriers. You being one of the key ones. With what will be significant promotions or subsidies for the new iphone and potentially hit to margins to help secure sort of longer term growth. Is that the environment we find ourselves in now first of all, i think we feel really good about our position and first of all we have the best network, we have the sole transformative and we have the iphone coming out with all the Iphone Models having the ultra wide bend inside of them we updated our guidance for Fourth Quarter when it comes to eps. We feel good about the position we have now. And most important we feel good about what our customer is going to get from us and how we can support and with different type of offerings and the best network. So all and all we feel really good about it and were used to this type of competition and we feel really good about how were doing our offering and how we are getting new customers. Understood. But, i mean, you reference a competitive environment. Yes. It is always competition but we go through cycles it seems where there is more competition in terms of price and less are we in one of those where there is going to be more . So when it comes to our offering right now, on the preorders of the iphone, thats very similar to what we have earlier cycles when iphone has come out it is not much of a difference this is what were used to handle and have a huge confidence in my team and the Consumer Team to continue develop that to contino develop that offer but we are used to working in this environment and we feel really confident to grow the top line and grow with the new customers and continue to actually expand our earnings as we upgraded our socalled yeah, but hans, hans, an analyst that follows you who we follow estimates youre offering 800 subsidy for new customers. No. I think we are very similar in that setup but we have always been prudential. We know what were dealing with to do the right thing for our customers and the shareholders and i feel confident about the situation we have and i dont think we should be only concerned on the situation this is sort of a big event that iphone is coming out with 5g second most important launch on the iphone seasoince the first launch and we think its exciting especially with our network and our distribution, our customers. Hans, jim good to see you. Good seeing you, man. Im worried i dont know how your network and talked about this yesterday and reviewed today in times. How can your network deliver meaningful 5g performance with what you must acknowledge is limiting coverage . Yeah. I think that what we have built right now is something so unique and so transformative. We have been on to this strategy for many years when it comes to our ultra wide band and last week we turned on 90 more cities we continue to augment in all the cities we are. The last two months we have built more out of wide band sites than 2019. That is the speed we are augmenting the 5g ultra wide band because it is so different from any other in the market how they build the network and remember we launched our nationwide last week so we both have that and we have the both network so we feel really good about the situation and giving this experience to your customers. What does it mean to say that you feel good about iphone orders as you said on the call is feel good mean youre shocked theres no many . A great launch feel good like, eh, feel good . Feels good, remember now, the preorders is for two of the models the other two will be 6th of november and only a couple of days of preorders but im happy what im seeing and the customer interacting the first couple of days and as well as we need to know on the second match of the models in preorders but we see a good traction in the stores, a lot of customers making orders so we are happy. Hans, to come back to the network, of course, which you talk about a great deal, the competitors including tmobile which is very aggressive in the criticism would say when it comes to ultra wide band right now, your availability is less than 1 of the network is that true remember what i said a couple minutes ago. Last two months we did more after wide band than entire 2019 so whatever measurement and things that people are talking about thats old stuff we continue to augment and again we talk about our own network and strategy and customers and we feel really good. Nobody would argue with your network through the years thats been the key for the company but what speeds will customers see on the nationwide 5g network if theyre not on millimeter wave what we will see in the initial right now is on par or better than the 4g and 4g is the Award Winning 4g, the best network by far in this country and has been in it for im not sure how many years but won consecutive years so the 5g nationwide will be on par or better and i have the iphone here and i have a very good 5g signal right here where im standing and it is working. Hans, the reviews said over and over again i will buy the phone and this is a little devils advocate but the 5g right now will let you down and seem like 4g and unbelievable when the buildout happens. I dont want people to be let down by saying this is no faster than the 4g right now and isnt it right theres not a difference in lots of parts of the country . As i said the nationwide on par or slightly better than our 4g but remember youre buying something thats future proof. The majority of iphone users they keep the foreigphones for a couple of years and you will see so much more from us the next couple of years. Remember a year ago we came up to 1 gigabyte per second. But so we have so much more to do so this is future proof what you are buying right now and especially buying it and being part of the verizon network. So youre future proofed. When is that future . We have talked about it so often. We have talked about it and with the enterprise and the different applications and you are saying, yeah, a bit better than 4g right now but whens the future we have been talking about going to be here when i buy the phone and get out there wherever i am and use it no. So the ultra wide band is that future proofed and transformative moving into 2021 we will continuously improve this and thats happening right now the applications coming out only on 5g. One is a super app or the super stadium app with nfl to sit in the sofa and have seven screens at the same time on the iphone and the other to launch soon is the gaming which is a multigaming on the phone on the 5g and could not have done before and theyre coming out with applications right now that could not have been done on 4g so its happening right now. Im excited and the customers are excited. Well be keeping a close eye on it. It is an important story for verizon and the country as a whole and we always appreciate you taking time with us. Thank you, hans. Thank you all right good stuff jim, whats on mad tonight . We have to push him he was articulate. We have an unbelievable show parsley, the deal. We have them both. We have lithia which is an unbelievably big car company and then there he is Henrik Fisker the man that people feel is the savior and the real competitor to elon musk you know what . Well find out is it smoke . Is it mirrors or is it money rurp. That was great, jim well see you tonight. 6 00 p. M. Eastern time well take a break here. S p 3461 dont go away. Good wednesday morning welcome to squawk on the street. Markets weighing a familiar mix this morning covid levels, q3 earnings mostly solid and stimulus negotiations. Dow taking a nice leg up higher. Our road map this hour is going to begin with what else . Stimulus larry kudlow will join us next. Then its the worst earnings miss in the history of the company, yeah. Netflix. What went wrong this quarter finally, one of the ags behind the google antitrust lawsuit. Lets get right to the first guest this morning talking about a status check on the stimulus talks. Larry kudlow starts us off this hour welcome back good morning. Hello, carl thanks. All right so its another morning. The viewers trying to get a sense of why as mark meadows said this morning the next 48 hours are so critical. Can you explain . Well, one easy factoid is were running out of time at least between now and the election so you have the large bills and this one has gotten bigger and bigger as the negotiations have proceeded. You only got two weeks i guess two weeks . Just a day or two longer than two weeks before the election and even if you could get this into the legislative language to everybodys satisfaction it will be difficult operationally to execute every part of this i know a lot of people are concerned including the white house, the president , about unemployment assistance and the ppp small loans and also the direct mail checks so i dont know, carl. Operationally. But i will say this. I spoke to a number of people early this morning and its an optimistic morning regarding the negotiations thats the best way i would characteristic its cloudy here in washington but i think theres optimistic morning and some emails from secretary mnuchin whos overseas and coming back tonight and will be negotiating with Speaker Pelosi today mark meadows said this morning, chief meadows, that he is going to be up talking to the republicans in the senate. And i can tell you that the Committee Chairman in both houses, Key Committee chairmen, are in discussion now so thats a fairly optimistic point. We got senator shelby who runs chair of the Senate Appropriations committee, house member from new york apparently in negotiations and with respect to the ppp Small Business loans which as you know is a very important area for all of us, marco rubio and ben cardin in the senate are talking to steve shait. So i would as i say, it may not be a sunny morning but i think its an optimistic morning. Right biggest stumbling block . Meadows mentioned state and local aid. Liability protection mcconnell said would prevent him from bringing it to the floor in july can you seassess those obstacls theyre under negotiation not the only factors but very important. I dont want to carl, you and i could probably settle this but im not in power to negotiate this with you this morning they will be on discussion on those key issues and i would underscore senator mcconnells view going back to day one Liability Insurance for Small Businesses, covid related potential lawsuits they want to put some safeguards or curbs around that restaurants. So forth i frankly think if you had some safeguards on Liability Insurance, some limits, gross negligence is different. Then youre going to jail but less than that, you know, i think that would help the recovery i think more businesses would open and mean more jobs an ena stronger recovery. Larry, the sticking points are the same for weerks now and lawmakers and the white house have been talking for months at this point so can you help give us a number . Whats the percentage chance that there is a deal before the election which is in about 13 days no. I really cant give you a number im not an oddsmaker the lags lative process has to be respected and the negotiating process has to be respected. Its a bit cloudy down here in terms of the weather but i think a relatively sunny, optimistic morning in terms of the negotiations. Larry, it is david. If we dont get something before the election is it possible i mean, obviously we dont know who will win the election but im wondering about lame duck. Is that a possibility . Do we expect we get something very soon after if this doesnt work this time yes, david. It is always could be a possibility. You could, for example, i dont want to stretch this too far but were having some fun here on probabilities. You could have a final announcement with legislative print coming out of both houses presumably an agreement, presumably have a vote only reason i say that because i think the announcement and vote if its a favorable vote on a package would be very helpful and constructive to the economy and financial markets, perhaps the actual execution might go beyond election day but folks around the country, people going back to work, people worried about nemployment assistance, worried of reopening or opening the Small Business might feel reassured, better certainty that they have gotten it done and just a question of pushing the money and the loans out the door and that could happen easily after the election. Yeah. I guess just back to leader mcconnell for a second, do you have a sense as to where he stands and stands with obviously the senate at this point you know, its been a longreturning battle here are they going to get on board if we get really close you know, i do not i just cannot possibly speak for leader mcconnell. He is a very old and dear friend of mine, a wise man in the thick of it to me and thats reassuring but i wouldnt want to speak for him these issues will be or wont be resolved but again were moving closer theres a seasonse of optimism. I think it began late yesterday afternoon. The chief reflected that optimism this morning in an interview on another network i have been emailing secretary mnuchin whos on the road. Things are moving in a favorable direction. I cant promise anything but things are getting better, looking better for this. Larry, census has some data out today for the prior week about a quarter of American Adults expect someone in their household to experience a loss in employment income in the next four weeks you have talked about further stimulus being good to have but not necessary. Given what you think the economy is doing overall you still feel that way . Yes i think all the incoming data lets see particularly the housing data points, Consumer Spending retail data points, automobile data points, all that stuff is very powerful looks an awful lot like a v and you have to rebuild inventories to meet all these new demands and thats going to spark even more growth and spill over into the Fourth Quarter and into 2021. We have made Good Progress on labor markets but not enough progress on labor markets. I certainly acknowledge that about half the job losses have gone back to work but thats not enough theres still way too much hardship unemployment has come down quite a bit to 7. 8 but thats still too high we had it prepandemic 3. 5 with record low unemployment rates across every category and Minority Group so we need to do better one of the reasons i might add again i think that you could get a guarantee, a legislative guarantee, if you will, for more unemployment assistance, the president exacted with an executive order but thats going to run out soon. The 300 plus 100 from the states so why not legislate . Ppp i think was very effective i think a lot of the reason we had a return to work is the temporary job losses were temporary because of the ppp and why not bolster that theres 135 billion not spent theres emergency money not spent. Those are areas were concerned about schools and covid, concerned about Liability Insurance. The chief has been mentioning and quite correctly were looking at some investment tax credits for businesses to return home to the u. S. From abroad in order to put their supply chains in better position because chinas proven to be rather untrustworthy so theres elements that would be enormously help. But i think the consensus now, the blue chip forecasters, 29 growth in q4, the atlanta fed 35 growth ive been saying well get better than 20 . Yeah. But strong recovery larry, a lot of the improvements in the vshaped recovery is certainly true in the stock market and the macro data points have certainly provided a nice slip but 8 million more americans slipped into poverty 1 out of 6 renters behind rent in september as we look at the factors, do you think its really providing a true picture of the economy and if we did focus on whats going on underneath would there be more of a fire for these stimulus plans actually underneath, if you will, i think business, the business spending is exploding gross output now by the bureau of economic analysis, a very important measure an enin fact another data point, new business startups, new Business Applications are soaring so we have lost a lot of businesses, most unfortunate, however, in the american entrepreneurial tradition, people are coming back and restarting a business or going into another business now look its been five months, this recovery is seems to be five months old so you can theres no question we are not back yet. A lot of these data points including the housing stuff aen the retailing stuff way above year ago levels so thats a terrific recovery but not all of them labor market is slower it seems thats a tougher nut and we will do what we can thats part of the assistance package business and thats the reason why we are pushing for unemployment assistance and i might add middle class tax cuts. The president will be campaigning on middle class tax cuts for incentives for people to return to work, for incentives or Small Businesses to open or reopen and provide new job opportunities. So you know, five months, give us time. This thing, you cant rebuild it overnight and i think some people are way too pessimistic about the economy, might be in denial but i think the overall outlook improved immeasurably right now. One last thing, larry, on direct checks. To the degree that theyre less of an emphasis in this particular round of aid, is the fact that so much of it was used to pay down debt or saved . Is that an element in these discussions . No. Not i say not particularly. I havent heard much of that the president has always been keen on the direct checks. Not everybody in the senate on our side but the president certainly has been very keen on that and as you know he wanted a payroll tax deferral that would be forgiven later and apparently will not happen and will propose a middle class tax cut very shortly. There was no particular analysis the Building Blocks here, you talk about the poverty rate and so forth, prepandemic we had the most extraordinary numbers, three years of president trumps tax and regulatory cuts, lets not forget this history. Family incomes rose to record high our three years, five times the rate of the prior administrations eight years poverty rates fell substantially. Urn employment rates fell across the board, all minority boards inequality fell substantially. Basic incentive structure is still there. Right . Still there. May change after the election or may not. But right now its still there its a liberalized economy that rewards work and success so thats a big plus and people take advantage of that we think as a guarantee to help those who most need it wed like to see the checks go out they can spend it, save it you know who knows . It is a tough call but no. The president s he would he said hed overbid on that he would be happy to overbid if thats necessary. Thats one of the things thats taking the market by surprise larry, our viewers need to hear from you and we appreciate your willingness to continue to communicate often well talk to you soon. Thanks, carl. Appreciate it very much. Still ahead, netflix posted the worst earnings miss ever well tell you why and what went wrong next shesowmo tn rhtar dn reha5 ig now. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Snap shares at an alltime exceeding the price it had on the day it wept public on the blowout quarter. Yulia boorstin has more. Hey, julia. Reporter carl, thats right. Snaps results beat expectations across the board with revenue growing more than twice as fast as analysts expected, 52 rev knew growth in the quarter and a surprise profit of one cent per share rather than the loss expected this has the company added 11 million daily active users in the quarter, far surpassing the 4 million to 6 million range that snap forecast snaps executive looking at snaps ad format. Our success underscores the excitement that our community and our advertising partners have around our Innovative Products and services. The adoption of augmented reality has happened faster than we imagined and we feel well positioned to execute on the many opportunities that lie ahead. Reporter snap projecting growth of as much as 50 and expecting this quarters 18 user growth rate to continue into the Fourth Quarter as they see increased engagement on the time spent watching the snap shows. Quote snap seems to have made it to the other side of the pandemic earlier than we thought. We believe that growing user and advertiser scale will yield sustainable profitability starting in fiscal 2020 causing us to turn more bullish on snap. Atlantic equities is cautious saying with the stock trading at 16 times revenue at a price of 35 we believe the companys potential is fully priced into the stock and therefore remain neutral. Leslie, looking ahead at the trends the Fourth Quarter is traditionally the biggest for snap with holiday ad spending very important there. Thank you, julia. Now on a different earnings picture this morning, netflix, earnings per share 19 below street estimates making it the worst miss in the companys history and steve s tifel joins us wheres the disconnect i mean, the quarter subscribers are volatile you have to look at netflix on an annual basis in terms of subs and they did only miss the guidance by 300,000 subscribers. The challenge that netflix has at the moment is that they did almost a full year in the first half the company added 26 Million Subscribers in the first half relative to 28 in the prior 2 years and dooling with a consequence of the after effects of the benefits of covid but Going Forward this Company Still on a run wait to kind of do 25 million to 30 Million Subscriber additions a year in the few which are of this bumpy period right now. Right to your point, do you think the numbers for q3 largely a result of the full forward in the first half of the year or emblematic of a slowdown in the fact that they have a user base thats largely penetrated at this point . Its a little of both you have the fact that its a very Large Company now the companys exceeding 200 million global subscribers theened of this year and not the netflix of old but its a very Large Company and it is a Blue Chip Company now and transitioning to steady top line growth. 20 , 25 and expanding operating margins and Free Cash Flow generation thats a different narrative of the netflix of old and we have a hold rating on it. I wonder is that a narrative that argues for a lower multiple over time, scott nobodys arguing incredible success and almost describe it as tv now and doesnt mean in a period of slow Slower Growth that people arent willing to pay less for it. I agree it becomes more predictable from here theres not any noticeable kind of optionality on the platform relative to other peers that are at similar points in the life cycle, like an alphabet, but you have to be very valuation sensitive. I think the dream in terms of the upside to subscriber numbers played out over ten years. The next ten years is expanding margins story which is going to lead so some multiple compression but paying about 55 times forward earnings for 20 to 25 . I wouldnt argue its cheap yet either. Hey, scott, social media remains under a lot of pressure regarding content moderation and political bias evans been pretty vocal about the president and snap no longer promotes the snaps but how have they managed to fly under the radar on that front and how long can that last . Well, our team covers the social media stocks and i could comment at a high which is that snap is a closed community relative to some of the other social networks and much less prominent in the discussions so i think that when you talk about some of the issues that social media faces it is more of a facebook and twitter issue snap isnt really part of that debate. All right scott, thank you for joining us to discuss a wide range of earnings stories today we appreciate it. Thank you. Lets get to the etf spotlight now with the Vanguard Services etf of vox. Disney saying updated state of california guidelines will keep disneyland closed for the foreseeable future county Officials Say no theme park of capacity over 15,000 people can reopen until the covid risk level drops to the lowe lowest tier. Shares of sn uovdieyp er 1 . We have more squawk on the street straight ahead as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Good morning, everybody. Im sue herera a major shift by the Catholic Church in its view of homosexuals. Pope francis has endorsed civil unions for samesex couples saying they quote have a right to be in a family end quote. The pope also making news for not wearing a mask in a service today. This despite vatican rules requiring them endoors bishops that spoke to the pope took off the masks before approaching him. Purdue farm suit call will plead guilty to three criminal charges and pay more than 8 billion part of a settlement with the Justice Department. That is according to the Associated Press an official announcement is expected in about 30 minutes. And a judge has ruled that deposition transcripts and other Legal Proceedings with Ghislain Maxwell must be disclosed by tomorrow morning you are up to date thats the news daupdate this hour. Thank you, sue. 11 republicans attorneys generals signed on to the lawsuit against google yesterday. Arkansass ag rutledge joins us now. Ag rutledge, thank you for being with us. Google says this lawsuit will do nothing to help consumers to the contrary artificially prop up lower quality Trace Technologies what do you say to googles response to your lawsuit well, of course, theyre going to say that and its important that americans understand when they google something while it may seem free it is not necessarily free because you dont have a freedom of choice. The reason we joined with the Justice Department and the ten other states is to ensure that when you do in fact go to a Search Engine and the results are the best services and the best product putt in front of you and not simply something they want you to see google has about 90 plus percent of the Search Engine and this is an antitrust lawsuit to ensure that other companies have room to get in and to expand their business. How much time did you spend talking to the doj in other states about choosing to join this it is all republican states as i understand it but give us a sense of what goes on in your office and the conversations you had as to why you felt this was necessary. We had ongoing discussions for months actually about this and investigating google we lanunched the invest and met with attorney general bill barr. And we want the republican ags, we welcome democratic ags to protect the consumers in their states as we are protecting the consumers in our respective states and i reach out across the aisle and say lets all protect American Consumers and again to make sure they get the best results when they type that in the best results shouldnt be hidden they shower uld be on the firste of a search. Leslie here im curious if you have heard from people in arkansas about the suit and whether they are concerned about the what the suit alleges to be antitrust violations by Google Googles defense as david mentioned is that it actually helps the consumer, they dont go to google because they have to they choose to are people in the state worried about this have they come out in support of your decision to join this filing ironically, google claiming that People Choose to when part of the reason for the lawsuit is exclusionary contracts with companies such as apple going to the phone or device, google pops up by default and most people dont change that default setting. It is a choice to leave it but we warrant to give americans the choice and we hear from people across arkansas, we get 2,000 to 3,000 calls per week in arkansas at the Attorney Generals Office and may be robo calls from individuals calling from out of country but a number of come plar plants and people concerned. Maybe they dont advertise enough with the companies but not just protecting us to make purchases but looking to sell products and services. It is protecting Small Businesses and all businesses and we want google not to break google up to allow others back into the marketplace so we can have a free, innovative market place for everyone to participate. You just said yourself that although its the default most people dont change it to a difficult engine but they can. At least thats googles defense that they can and they can do it more easily than cdroms in the computers. Why is that defense not convincing to you . Well see if its convincing to the courts and this is googles initial response. Again, we want to give americans the right to choose and if my daughter were sick, my 2yearold baby girl sick and googling to see the best doctor, the best medicines, i want the best for her and not the one that google or the advertisers believe i should look at thats what Everyone Wants on the internet we say its in violation of antitrust laws and we simply want a free marketplace for every idea to be available. Ag rutledge, google competes against very Large Companies microsoft has a Search Engine of bing one would expect that microsoft could pay apple the same amount of money if not more from google to have the same deal. You know to that point, google says, listen, we do pay to promote our Services Like a cereal brand might pay to have a supermarket stock the products on the shelf. Why is that illegal . It is the practices of exclusionary searches. Google is a verb when people use bing, for example, they may say ill google something on bing i understand that sounds odd but we want to again it is a practice that we are working with department of justice in this lawsuit not to e liliminate google but to ensure that companies and consumers get the best information in front of them. Yeah. That was picked up by people combing through the complaint yesterday and the response then are we going to sue kleenex. When did becoming a verb become a legal liability . Again, i said thats not a legal liability but the Business Practices of the company have caused it to be in violation of these antitrust laws and it is the monopoly, the practices of pushing other companies out, not allowing them in that space is why the states felt it was necessary to file a lawsuit against a juggernaut such as google. Yeah. Finally, how long do you think this is going to play out over i dont have a crystal ball it simply depends on the courts but i imagine its not a case decided in the next couple of months but certainly go on into 2021 if not beyond into 2022 but we are hoping to be able to work with the company and to have things settled out so that way it doesnt drag out and americans have a great Search Engine to choose from making buying decisions and selling decisions. Understood. Ag rutledge, thank you for taking time with us this morning. As we head to break, take a look at shares of pinterest up almost 13 after upgrades by bank of america and goldman to the stock to a buy citing montization improvement. Keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo early voting, still laus talks, the confirmation vote for judge barrett, theres a lot to happen before election day eamon . Reporter yeah, carl, thats right. We have the new cnbc change Research States of play poll this is battleground state and focusing on likely voters here, the people we believe cast ballots by mail or show ump to vote and joe biden maintains a Strong National lead and in the battleground state, all six of them we look at here but inside this poll theres some interesting stuff that gives you a sense of what voetsers are concerned about before and after the election this number surprised me, the number of voters already voted, 38 of the people in battleground state voted this election is nearly halfway over already in some of these battleground state, thats a sense of not a lot of time for the president to turn and the trajectory of this in terms of concern after the election, look at this 37 of the voters have concerns that joe biden wont concede if he doesnt win 49 have that concern about the president , that indicates some concern here for a contested or contentious postelection period of time. The president is upside down in this poll on coronavirus 45 approve of the handling of the crisis 55 disapprove and a message for Congress Looking at what should the senates top priority be, 62 say passing the covid relief package. Only 38 say filling the Supreme Court seat should be the top priority thats the opposite of what Congress Seems to be doing, though, with the congress on track to approve the Supreme Court nominee. Leslie, theres a message for lawmakers and politicians at every level but surprising in terms of the early vote turnout, something we have not seen before and impacts the dynamics of the last two weeks of the election. Absolutely. Shocking we have 13 days to go you will be busy, eamon. Thank you. One week since fastly warned that the revenue would come in short of announcements the Stock Plunged 30 sending it to the lowest levels in a month. Fastly still up more than 300 this year. You can see shares down more than 3 right now. More squawk on the re teth bakstet turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. With less than two weeks until the election a specialist reveals what each outcome meaning for volatility o more online more squawk on the street coming up. At calvert, we know responsible investing is hard. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. Welcome back to squawk on the street. Im dominic chu. Stocks are higher this morning s p up led by gains in big it can no long and Communication Services type names. Social media the material sector up a percent right now and outperformer there. The best performer within that group is Avery Dennison after raising the Quarterly Dividend by 7 and resumed the Stock Buyback Program after halting it in march other leaders in the sector today, freeport and ball corp. And Ppg Industries and all of which reported double digit gains in the past month. Resqwkn e street coming up. Institutional investors analyst of top rated analysts on the street, robin farley is number one spot in the leisure spot for the tenth time which hardly ever happens and putts her in the hall of fame, robin good morning and congratulations. Thats a very bigdeal. Thank you very much i eerm lucky to have a great team that works with me. Lets talk about what you like im curious to know if you have a point of view broadly on the airlines we printed a million tsa screens this past weekend. United is doing work with allowo to travel to areas like hawaii are we seeing market improvement in that area well, so far when we look at the hotel names, we havent seen much improvement since late august as we get into this period where we would be normally seeing more Business Travel, that hasnt picked up. Many of us are still working from home. So weve seen the revenue at hotels for each room had been improving every week from april until the end of august, and now has been pretty flat and, by the way, you could argue that flat is a victory in this market, that its not declining worse as we get into the fall. Right give the viewers a sense of what kind of timeline they might expect, if any, for Corporate Travel to im not saying get back to precovid levels, but to show that its making an effort to get back to those levels. Sure. I think seasonally here from november to february is usually the lowest occupancy part of the year anyway, so even if things start to improve more from where they are, it might not necessarily show up that strongly in the numbers. Longerterm, we do think it will take probably until 2024 for revenue per room to get back to where it was, and group travel, Convention Business in the last downturn book seven years to get back to the same number of group room nights. So some parts of the business are going to take longer, certainly. Robin, im curious about the cruise ship sector, which are obviously sitting idle right now. Once they do get back into operation, assuming that happens one day, how do you make the math work . These vessels are expensive to run, tons of staff, obviously fuel, they have to pay the rights for the ports and so forth. So, you know, is there a way that they can discount enough to entice people to come and does that even work if youre not able to fill up an entire cruise ship well, it is a very high fixed cost business, but at this point, anything they can come back, if they can get a ship to be 30 to 40 occupied, Just Cash Flow break even would be a big improvement from where they are now. And when they restart, historically theyve had full fleets, but you dont have to have every ship back in service and certainly ships going back into service will start, you know, probably not more than 30 occupancy at first so you dont need even in q1 next year, were saying rooms are ships will be down 93 year over year. Youll need a little bit to restart. Robin, you were on the allamerica Research Time for ii for ten years in a row, i guess that makes you a hall of famer i know they asked you during the interview what the best call you ever made was. You said the best calls are the tough calls when everyone else is saying Something Different and youre not following the herd what would that be right now for you . Well, hard to know how it will turn out. I would say, you know, its Royal Caribbean thats our favorite name of the cruise stocks theres risk to this name, theres risk to the cruise outlook. But if these companies have the liquidity, Royal Caribbean has t the liquidity and if we can look past the period where theyre not operating, theres upside to this name. Its difficult right now and obviously a lot of investors are concerned about the cruise lines sitting there burning cash yeah, you know, travel and leisure, the areas of concern tend to get put into buckets, geographic buckets we worry about orlando and las vegas, obviously new york city and disneyland now is becoming an increasingly point of friction because of what the state is saying to disney about parks reopening. But of those four or half dozen, what would you say has the most promise, at least in the near term sure, maybe the bucket i would think about is Leisure Travel versus Business Travel and group and convention, because Leisure Travel, our expectation is thats going to come back more strongly and that drove a lot of improvement at hotels over the summer and people continue to book cruises for next year, even though the cruise lines are not operating now. So theres pentup demand for Leisure Travel people will want to travel its going to help domestically, because probably for a lot of 2021 people wont be comfortable going abroad, even if it becomes possible so that Leisure Travel is going to help things its going to take a little longer for Business Travel to come back and as we were talking about seasonally, this is the period when the hotels would be getting a lot more Business Travel theres not as much pentup demand for that. But Leisure Travel, that cant be replaced with a zoom call people are still going to want to get out for leisure, and i think convention are a longer path, especially because of the density of those events. Right weve talked about pentup demand for leisure and how americans have foregone a lot of vacations this year, obviously, and as a result theyve spent more money on their home, theyve bought cars, consumer electronics. Do household Balance Sheets have the ability to have spent more on those things on the swimming pools and pelotons and still have some left over to go on vacation when the situation allows well, i think a lot of travel was foregone this year and the travel that its being replaced with is a lot of driveto markets and beach markets. And one of the reasons we prefer hilton, is they actually have a lot of exposure to limited service hotels, the hampton brands and the homewood suites where people are driving and taking their vacations that way. And the properties that are doing worse are the luxury and upscale in the larger cities, in new york and san fran and boston, where typically youre going to get a lot more Business Travel thats not coming back. But Leisure Travel, those drive trips, and especially i think because so much was foregone this year, even though we see it recovering, there will be a lot of pentup demand. Robin, again, congratulations. Its an achievement. Congrats to you and your team. Robin farley on travel and leisure. And were about 20 through earnings so far on the s p with the worst to this point out just last night, netflix. B netflix was a disappointment, but by and large this has been a spectacular earning season let me show you some of the other winners besides netflix, but snap, that is up 30 wd40, tremendous numbers overall. Teradyne, tremendous numbers and nasdaq, tremendous trading going on, of course, in the last few months theyve reported great numbers on top of that let me show you one problem. Texas instruments, a company i follow, a real bell weather. Earnings and revenues, huge beat for them q4 guidance above all the expectations automotive was strong, personal was strong here. Heres the problem great numbers. Look at this, the stock is not moving this has been a problem with a lot of these Companies Reporting great numbers, but the stocks arent moving that much. And thats part of the issue here so weve got about, oh, 20 reported, 85 beating expectations by wide numbers, almost 17 but were still not seeing a move up. And look at the s p 500. It topped out august 12th, the day before earnings started and you see its been going century nowhere. We need to get stronger moves on the upside on top of these great earnings reports, guys, back to you. Still got a lot of numbers ahead, bob thanks squawk alley is going to srt in a moment. Dont go anywhere. This is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Wow, i wish i could get a deal on a smartphone, but im not a new customer. Well, actually now, new and existing customers can get our best smartphone deal. Its historic. That is historic. Which means. Im making history, right . Yea, i dont know if id exactly sa wow. Me, dave brown. Existing customer who got the greatest deal in history. Just like every other customer gets. Oh thats cool too. Its not complicated. At t is making history. Everyone gets our best smartphone deals, including the lates preorders