ten year steady, just south of 22, industrial production 15 minutes away we begin with wall street's record run stock futures mixed ahead of the open. >> terror in london, 22 injured in an explosion on a london subway train during the rush hour commute >> and facebook advertising under scrutiny the social network revamping the self-service ad byi inbuying pl. first up, the dow is aiming for another record high, a sixth straight positive session. the market's resiliency tested today. retail sales fell unexpectedly in august by .2, dragged down by autos. they couldn't isolate the effect of harvey on retailers then news of north korea firing that missile over japan for the second time into the ocean there will be security council meeting today. but on retail sales, interesting, nonstore, which is essentially amazon, down 11, the worst month since april of '14. >> that's so out of whack with everything you hear. lately the numbers i think have lost some degree of their validity i think by the way, i think the stock of gm, which was -- tells you more about what is going on in retail than anything i see, going on in buying and a lot of that is houston. i had the ceo of brunswick on yesterday, over the next 12 to 18 months, good piece about the adjustme a adju adjusters, they'll be getting money to buy new boats you get the auto money pretty quickly. the auto insurers are there with the checks i think almost all of the data we see is going to be overrun by the tremendous and we can keep -- so good you went to florida. the big stories are going to be florida and houston for the next two months i don't think people recognize, these are two growth areas, a lot of insurance money, like the federal government coming down there, giving you checks >> to that point, for example, today credit suisse cuts carnival to neutral. they say caribbean is almost 40% of passenger growth, passenger volume and maybe a quarter of the area was potentially severely damaged. >> i thought that was a really interesting piece. i happened to like that company very much. and they're talking about oversupply, oversupply in boats. cruise ships one thunging i would tell you, every time the stock had -- every time the company had a setback, they come through and solve it this story, st. martin is where a lot of the ships go. there could be a bit of a slowdown mentioned this piece, mediterranean, barcelona terrorism. i don't think that's as important, but i do think that, yes, absolutely i should have figured that out yesterday when the caribbean, i didn't put two and two together. >> david has been pointing out we have been living in an absence of korea headlines since yesterday. this -- since fire and fury, they don't seem to have taken the message, right >> look, you have to hope they -- not, look, don't want to have them send these, but hope they get the trajectory right, geez i'm saying they get -- >> keep going over - >> if it falls short, you have world war iii. >> you have big trouble. it is already big trouble. although we have been talking about the absence of a missile launch, and the fact that the market has moved higher, generally, but this morning it doesn't seem to be having that much of an impact, almost as though -- i don't this is an overriding concern, one would expect. >> i was thinking if i were in the hedge fund business, i would be running two funds my regular fund, and i would be running my fund all cash and what would happen is after something happened, say, cash. that's what those hedge funds do my algorithm said cash they'll get like a $200 million check from some endowment. >> this was a topic of debate. is there a way to hedge. >> i don't know. i saw a tweet the other day that was brilliant. which was what we needed to do was drop a million cell phones over there, overnight, just drop a million, let the people find out what is going on in the rest of the world because that country -- there was a new yorker guy on yesterday. >> wow >> he said he would go again story is that important. >> i thought that was fantastic to have that guy we're in some sort of weird existential moment i think the one thing that may have happened was not -- but the more they shoot missiles over people and countries that do business with china, the more china, who is not our friend on this, and favored exactly what has been happening, will be under pressure >> chinese do not want to see a unified democracy on their border, no way, no how. >> right >> they will help us to a certain extent russians are actually being rather helpful to the north koreans. or least reported to not be helping in terms of stopping what is going on. >> remember, there is this period called 1950, 1953, russians, you should go watch the manchurian candidate, original version, frank sinatra, the russians and the chinese were -- are enemies. why anyone thinks it has gotten better is beyond me. kind of driving me crazy think the chinese, look, you go up to -- mcarthur went up -- there you go >> i think this administration does view the chinese as our -- >> came out against -- >> our adversary you have to wait for more to find out -- >> we'll see >> meanwhile, the story in london, british police are investigating the explosion on a london underground train during rush hour. they are treating it as a terrorist incident jena godfrey joins us with the latest. >> reporter: no deaths, we have 22 injured in hospital at the moment none are those are considered to be life threatening or serious most thought to be flash burns or some people injured in the stampede as they exit the train or the station in the last hour, we had the reports there was the british transport police called to kings cross station, in north central london where there was a suspicious vehicle but that has been declared to be safe no further updates to that point of view either commentary, we heard in the last hour as well, from the mayor of london, sadiq khan he said there has been a perception that there has been a spike in terrorist attacks recently he said indeed it is not a spike, but should be considered more of a shift and he said, quote, terrorists have stepped up attempts to kill us in recent months now, this we will remember is, of course, the fourth terrorist incident we have had in the uk in the last six months and indeed we had some statistics released recently which show that the proportion of crime and arrests related to terrorism here have been on the increase looking over the past year, so statistics to june of this year. 379 terrorism related arrests were made, which is a 68% increase on the previous year. and of those arrests, around 50% were released with no further inquiry. so definitely a sense of insecurity around london itself. if you can see over my shoulder, a line of reporters and beyond that, emergency services all the way down the road, the fire brigades at the station in three minutes of the explosion being announced. and reported so very quick and very thorough reaction we have helicopters circling overhead since we first arrived. a feeling of concern throughout london turning to the government's response the prime minister theresa may is holding this afternoon a meeting of the national emergency response committee that gets together whenever there is a -- an incident deemed big enough to be a national crisis they're meeting right now. as of now, the terrorism level remains at severe, not been increased yet. i'll hand it back to you. >> thank you for that. gemma in london covering that event. equifax is continuing to feel the heat for that recent data breach that may have impacted as many as 143 million americans. elizabeth warren and 11 other democratic senators have now introduced legislation that would stop credit reporting agencies from charging consumers for freezing access to credit files. you called for his ouster yesterday. >> yeah. this is going to gain steam. i really think and the company -- the board has been silent. we have seen this time and again, boards need to be prodded before they take action. elizabeth warren is not going to go away. it took a little while for wells fargo to realize that perhaps they couldn't stay the course. this is a company that uniquely seems to have no knowledge of what is really going on. >> too early to buy the stock? too early? >> yeah. i think this one is frankly a little early that's our being -- that's -- one thing i think americans are tired of is this notion that a ceo has somehow not taken to task with internals. these boards that don't take action it is because the boards are faceless you look them up, you see these people, they used to be this, they used to be that, they retired from this, they retired from that, and they go about, they go to the supermarket, they go around town, they do their thing, and everybody should be saying what are you doing about that guy that is working -- the ceo? but doesn't work like that in america. faceless people who think they can get away with not playing a role >> i don't know if i would be that strong. >> in this one >> i think a lot of board members take their positions very seriously but they are beholden to a large extent to whatever information is coming at them from the management team, in their board package, that they're reviewing you have a right as a board member by the way to talk to anybody in the company about anything you want. but most board members don't undertake their enown efforts. >> surrey marshall can call her friend at general mills, she was the general council, and sanger was the chairman of wells fargo. you got people there who are in cybersecurity, people who know cybersecurity very well. but what is going to happen is congress will call them. congress will call some board members and then they're going to get uncomfortable and take action there is a lot of responsible board members. the slow reaction to how this thing is handled has surprised me just surprised me. >> what surprised me, yesterday, there is not every company should have its reach response protocol you know fully in place >> at this point, it is like earthquake drills. earthquake prep. comes out of nowhere, no warning. you have to act fast. >> this is what we do when we find out and there should be 15 points on there, boom, boom, boom. >> we have cybersecurity ceos all the time all they tell us is you don't -- you can't believe how unprepared companies are. and equifax, that's about trust, right? they know -- they know exactly what i don't want the bad guys to get is there anything more than what they have in terms of, like, the bad guys saying, well, holy grail, this is just the pot of honey. so you would think they have maybe three or four belts and suspend suspenders this is not like a kellogg guy hit, i got my box top. this is not a box top situation. no >> no. >> not at all. >> no, it isn't. >> let's say it is verizon great interview yesterday. >> thank you. >> they get my phone number. that would be a pain all right, all right, all right. no, no where is the auditors here what about the external orders who report to -- it is okay. if they found out your information, what would they know what would they know nothing. how about a credit company that would find out everything that matters to you they can get your tax return what if they get your tax return i like to pay them ransomware so i can get it back. i'll use bitcoin until jamie dimond gave that talk about bitcoin and ruined it. >> makes me wonder about the irs. are they up to the task to protect our information? >> a breach? >> yeah. that's absolutely -- breach spell spelled breech, like their pants. >> the latest controversy surrounding facebook and their ads. and orrin hatch, key interview on taxes take a look at futures, dow on pace for the best week since april. 1of2.e days in a row. up0 1 back in a minute stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. this is not a cloud. this is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for enterprise. yours. the ibm cloud is the cloud for enterprise. did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's up to 16 times faster than slow internet from the phone company. say hello to faster downloads with internet speeds up to 250 megabits per second. get fast internet and add phone and tv now for only $34.90 more per month. call today. comcast business. built for business. some data this morning, retail sales and empire, now industrial production for august is down, .9. looking for positive .1. yet another with the exception of empire, jim, some mostly soft data points. >> yeah. i just don't see it. again, i think you could reverse because of the hurricane, but i didn't think the month was that weak i didn't weak numbers the rest of the world is growing much faster than us. we're maybe being pulled off the weak dollar will help us i'm not getting that report from brad jacobs from xpo nationwide trucking company, there is an industrial led kind of renaissance going on. i don't know i'm not getting the numbers. from the bottoms up, i'm just not getting -- it is alluding me even the commodities are good. i just did an aluminum strong. most of the copper goes to china. i don't know we have to see where these go. i think that the trade-off is maybe too late these may be really old. >> we'll find out for sure in time meanwhile, facebook is under scrutiny today, according to pro publica, they allowed ads targeted at people who expressed interest in topics such as, quote, jew hater or how to burn jews the investigative news site said it paid. they also said after it contacted facebook, the company removed several anti-semitic ad categories and promised to improve monitoring one writer on the story will join us this morning this is what has drawn advertisers as your ability to microtarget. >> this is what david taylor talked about it is a dispute, nelson peltz says they cut back, trying to get on the board david taylor on the ceo when he was on mad money was saying, listen, you don't want your ads placed against some things that are online i know he hired amy chan on the board, she's 40, she did a lot of work with google on this issue. this is a facebook issue but i think that some advertisers are worried. >> the facebook platform is so powerful and all encompassing, so involved in so many people's lives and we're learning in the ways that it is more powerful than we may even appreciated previously you're talking about a platform that has daily average users of 1.3 billion, as of june, those are the last numbers we have, higher now, monthly average is over 2 billion -- >> they are ubiquitous you're always going to find some percentage of the population since most of them are on it that are -- >> have to keep -- they'll figure it out. i don't mean to be complacent about it these are very smart companies and they'll do it. the gross margin can suffer if they have to do it by hand because of the number of pages that are -- >> one would think there is a way to figure out an algorithm that can determine this. a little surprising how slow they seem to be on certain -- >> google is spending a lot of money and a lot of time on their issue. i worked with people who are involved i have tremendous faith they'll beat this and already done a great job. >> mike, like fake news, or videos of dramatic events, it will require more human involvement. you cannot leave this up to the robots >> you can't one of the great things about the gross margins of places, it has been all robots. i think you can't stop facebook. as one of them informed people i spoke to the other day was a young person said, only one thing to stop facebook, instagram. >> cramer's mad dash, count down to the opening bell in a moment. don't go away. horseheadswivellychair.com it could be the next big thing i should totally get that domain name... get your great idea online too... get your domain today, and get... ...a free trial of gocentral from godaddy there it is. mad dash for a friday. we're going to talk a bit about your dog. >> yes they looked at twitter i'm talking about invidia. time to unleash invidia data for the last two weeks invidia has been colored by the fact that 10% of the business is crypto currency jamie dimond saying those negative things about crypto currency this week the stock has kind of just -- >> can we stop there for a minute and explain to people why 10% of their business is crypto currency >> you need that to mine the currency china has shut down bitcoin. what happened is, look, the bitcoin enthusiasts don't like me mentioning anything negative about bitcoin. ever corps isi says forget crypto currency, it is an artificial intelligence data center autonomous card play. when tesla had the dispute with mobile eye, invidia came in and fixed it when you get any device that talks to you, it is most likely powered by invidia, artificial intelligence i've always been worried about the terminator implications. >> should be still involved in the video game business. >> absolutely. video games is primary but i have to tell you, if invidia takes out 174, my dog goes higher. that's the breakout level. it is inching. that's why i put it in follow me on twitter, i'll have a series of pictures of my dog about to break out i call it -- the stock has been unstoppable and you an i have been together long enough, here's what we do. we know there are stocks -- periods where stocks are low and invidia say love stock because of its graphical user interface, artificial intelligence, machine learning, deep learning, can you get these? >> all of it named them all. >> all of them. >> yes. >> heart of everything i don't like intel in 1993 with the 286, 386, 486. mes ayor tan opening bell a few montaw fhis friday stay with us on "squawk on the street." what started as a passion to make something original... ...has grown into an enterprise. that's why i switched to the spark cash card from capital one. now, i'm earning unlimited 2% cash back on every purchase i make. everything. which adds up to thousands of dollars back every year... ...and helps keep my passion growing... ...in every direction. what's in your wallet? for tech advice. dell small business advisor with one phone call, i get products that suit my needs and i get back to business. ♪ what?pony neighing] hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade. you're watching cnbc's "squawk on the street" live from the financial capital of the world. the opening bell in less than a minute on this friday. futures still trying to make up their mind about which way we're going to go. the major stories are going to be the attack in london on the subway car, missile that north korea fired over japan yesterday, and some macro data, retail sales and industrial production which did miss estimates this morning >> really is interesting 9:00, futures were down very badly. and the market has resilience, london was quite -- you have two frightening events and the market is not relating it is not complacent so much as you can't seem to -- doesn't know how to figure it out. and i don't blame it very hard to relate this to. >> very much >> opening bell, and the s&p 500 the bottom of the screen polaris, low cost airline based in mexico. speaking of the airlines, jpm this morning cuts american, united and save to neutral they say improved pricing within reach, it is just not happening. >> and they upgraded southwest air. we had gary kelly on over here, got the hedges wrong, did not deliver and jpmorgan says you got to buy that. i think it is just a great company. remember always made money during the period when every airline lost money then it started to be kind of steady eddie when the airlines were making a huge amount of money. now back to the old days where southwest makes money and everybody else is up and down and up and down. a record high going here i'm thinking maybe apple stocks, maybe apple slows its decline. apple has been hurting this market for the last few days as we had to -- bought the stock off the x and 8. >> defense doing well. >> boeing, raytheon, so terrific >> like raytheon, i guess. >> easy to like. so is invidia, just so we know. >> what is not faring so well. some leisure stocks. oracle, jim, the fiscal third quarter earnings season is officially upon us -- >> the oracle people never like to hear anything remotely negative and there were some people that came out and started reporting on this story about they were on the conference call as my friend eric johnson at the street writes, when you say the word cloud -- i'min total agreement with that sentiment, when you say the word cloud, 70 times, as they did on the june call, and then you do not blow out the cloud revenue this time, well, then what happens, they suggested the cloud sales are expected to fall short of the consensus, 1.58. people say, wait a second, maybe we got too aggressive. this was the usual oracle conference call where they attacked everybody and slashed and burned all the usual other companies in the cloud but, you know what, i got to tell you, i listen to the call and the headline numbers were fantastic. the actual call, they did not blow away cloud and they had the last time. people got ahead of themselves without good oracle. and that's all i want to say about oracle i don't want to check under my car. >> they're tough guys. >> they're tough guys. two tough guys and tough woman. >> actually right. >> they're all tough, man. mark hurd is tough too. >> a tough guy. >> we don't want to mess with that. >> no. >> no. >> they're like j.j. watt at the end of the game last night >> the tackle. >> yeah. >> they're the j.j. watt of technology i just stay out of their way, but the numbers, the actual guidance for cloud was not good enough >> a lot going on at alphabet today. reports they're considering a billion dollar investment in lyft they're going to get tied up in a bid in this facebook ad metrics story today. >> yes i think that's unfortunate they have done a lot of work, but i keep thinking what procter said, we should get nelson peltz on to say his view on that cutback in social media spend but procter has a person from -- google on the board. i think that this lyft is a lot -- remember, uber, that challenge that they said that uber stole their intellectual property, those guys play hard ball at alphabet too they're no slouches. >> the way mo unit >> i love -- >> and uber. >> i've been the biggest fan since i was in a way mo. it is just remarkable. i'm not that great a driver, but it doesn't matter. >> no. that's the whole idea. >> you can tell way mo where to go go to the best pizza place and -- >> do that, best pizza place what is it doing using -- >> i remember i saw a robot that knew that learned a cup of coffee was too hot and they hadn't programmed it just learning faster than we thought. >> yeah. >> learning faster than we thought. what does that mean? >> that means we're doomed, yeah i don't know if it is 20 years, 30 years, but -- >> sky net, self-aware. >> couldn't stop sky net. >> robot armies. >> john conner for the web >> i don't know. online coverage. >> live to the fullest every day. >> always good advice, i think we just don't know >> did they find anything? >> is that the incas >> no. >> terminator one. they went to -- >> what was the civilization >> i don't know. >> what do you mean you don't know there is nothing you don't know. >> i try to fly voliris. >> the deal a couple of weeks back, discovery buying scripps, my wheel house in media. we cover media here. we cover it all over our network now. we asked about football. we got the background. viacom was a very competitive bidder here. i mentioned in part because discovery stock prices rarely had an up day. today it is. they were right there, but the end, this thing started back in june with discovery and viacom as we reported all along was a very involved bidder had indicated it might be willing to go to 90 cash but never followed up with that proposal and that's when you got the deal but that deal hasn't helped anybody except scripps holders discovery has been struggling at this point to sort of fully explain the rational behind it despite what i think have been fairly articulate comments from the ceo. viacom is seen as -- in a difficult position they're seeing ratings increases. media had a rough go of it, including yesterday, even with cbs' stock down. there was nothing that would seem to have sent the stock down 4% >> i agree with you. i was rather surprised there was really -- that was a very positive interview. not by -- >> usually very positive. >> he's -- anyone who wants it know the real les moonves has to go to bucknell/commencement/m n bucknell/commencement/moonves. his commencement was brilliant, brilliant. he talked about the need to go along and get along. you can find out who moonves really is. it is a brilliant discussion it is fabulous but, anyway, what i thought was great about what les said was he's not worried about amazon. i think that a lot of people have been worried about amazon what it means for bidding. >> the fact they're streaming ten of the games that cbs is airing on thursday -- >> the executive producer is correctly pointing out that amazon gets some local ads. >> right. >> so cbs does well off of amazon that's something les moonves has been very good about i find that i'm doing some work with it. it is incredible how much work he has to do to try to explain why he's not being heard and people just aren't listening. it is amazing to me. they're not listening. >> did you happen to see the tweet from the president about espn this morning? >> what did he say >> he's moved on from the washington post, the amazon washington post, which is certainly one of his key targets. cnn. going after espn, about some comments from one of their broadcasters, but he's hammering them on their ratings. >> is he really? >> this will be a hellish day for the president. >> esp in is paying a really big price for its politics and bad programming. new york has done a piece about people conflating, cultural missteps if you want to call it that with the disruption of cord cutting, which say big reason that the numbers he's talking about are happening. >> there was a moment in the interview with les moonves, hard to be more substantive than the president has got a point there about 800 million down to 8. >> we have discussed it a great deal i'm not sure it has anything to do with the politics on espn. >> he watches the show, the president? i don't think so but les moonves made the point about when nielsen gets it together, total viewership, ott, over the top, i think it will show that cbs is doing better. that's a cheap shot that the president took he's going to get a -- he's going to get a rocket from iron. >> who left that ceo council earlier than -- >> the president doesn't know about bam tech, doesn't know about the -- >> bam tech. they can stream 10 million at a time >> does the president play fantasy football >> i have no idea. >> hard not to watch shefter is obj going to start on monday? >> i think he is another monday game? no giants have another monday night game >> the president is taking on espn i don't know that maybe a bridge too far. that could be like senator mccarthy taking on the army,in the mccarthy hearings. >> we're going to find out not the first time he's targeted a business unit of a public company. dow did set a record this morning. up 35. let's get to bob pisani. >> happy friday, everybody we had a lot of volume here on the floor this morning quadruple, happens four times a year, 400 million shares on the floor. that's a lot for the morning that didn't move markets, though retail sales, industrial production disappointing that didn't move the market. subway attack in london doesn't move the market. you know what does, north korea. word comes out, north korea fires another missile over japan, that's that red line to the downside, we lost seven points in the s&p futures immediately. as you can see, we're still down, the dow is slightly to the upside north korea is what moves markets these days sectors, indeterminate open, 3-2, advancing declining stocks. health care up here. energy up a little bit energy, tech, indeterminate open consumer staples this is a little bit on either side of positive or negative for the week, the s&p is up more than 1%. we have been having mini rallies all throughout the week. three particular sectors, bank stocks, up about 3%. energy, another rally in energy. semiconductors as well the big discussion is about energy and what to do with it. everybody hates this sector. everybody. but we're getting one of those periodic rallies and whenever you get oil moving up aggressively, about 5% for the week, you get rallies in these exploration and production stocks and the oil services names. the service names, halliburton, they all start to rally when this happens nobody wants to hear it. i bring this up, everybody says we don't want to hear about energy we got burned, two, three times this year, trying to buy energy. who can blame them last time this happened, in july, oil rallied in july toward $50. and everybody was buying, there is your oil last three months in oil, see the rally in july, everybody started buying oil stocks like crazy all through the month of july. what happened? it fell apart in august. went down towards the mid-40s again and everybody said, that's it, we have had it and sold aggressively, oil stocks a lot of the big names like exxon hit 52 week lows toward the end of september. now, we're back again and everybody says we don't want to hear it. this is a good negative contrarian indicator everyone is fed up, i don't want to hear about it, that's a very good sign, i'm not advocating, just saying it is a good sign. just keep an eye on one other sector we have been talking about weakness in china. we have seen some weakness we had a great commodity rally, copper is down, though, this week i don't know if it is the start of a big trend i keep an eye on something like that and finally, another speck we had one wonderful day yesterday, talking about new issuances. had a fascinating discussion on the 12:00 show here. we have another one today, a small one, over on the nasdaq, draper technology. just like social capital, their goal is to acquire something in the tech business. but smaller. $15 million deal now spacs are hot. the highest number for spacs since the year 2007, special purpose acquisition companies. and you're investing in a manager who is going to go out and buy a company. you're right now investing in a manager, not in a particular company or business. do it later. there you go best since 2007. social capital, look at that, on the upside again, this is a lot, to move 40 cents, 4% in one day for a spac is a good showing and, remember, yesterday upped the terms of the deal from 500 million to 600 million the dow up 24 points back to you. >> thank you very much oil prices were watching as well energy is the second leading sector of the week dominic chu. >> oil prices as you can see here so far mixed. west texas ind intermediate is hovering brent crude futures showing fractional gains, up by 40 basis points, $55.68 on balance, taking a breather after a big upside week like bob mentioned. there is a bit of a holding pattern as they digest the latest out of north korea. trying to wrap up at five month high level here after the boost in forecast. more demand from the u.s. refineries are trying to get back to regular operations post hurricane harvey it is friday, and that means it is rig counts day as well. a lot of traders watching what is going to be happening from that number out at 1:00 p.m. eastern time carl, on balance, a bit of a breather nice big upside week for the energy stocks and i'll prices as well >> thank you talk to you in a bit. different perspective on the markets record run we'll talk to marc faber as we go to break. look at the movement in treasuries, ten year pe lbelow . directv has been rated #1 in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable switch to directv. call 1-800-directv. at ally, we offer low-cost trades and high-yield savings. but if that's not enough, we offer innovative investing tools to prepare you for the future. looks like you hooked it. and if that's not enough, we'll help your kid prepare for the future. don't hook it kid. and if that's still not enough, we'll help your kid's kid prepare for the future. looks like he hooked it. we'll do anything... takes after his grandad. seriously anything, to help you invest for the future. ally. do it right. so they called the fire,help yodepartment for us.clearly,. my first truck was on the scene within five minutes. i am grateful we all made it out safely. to protect what you love, call 1-800-adt-cares [car tires screech] [bell rings] both uber and lyft are eyeing some big funding. google could be pumping a billion dollars into lyft and softbank is looking at a $10 billion infusion amid all the controversy and funding, investors are wondering about potential ipos going public though sounds pretty terrible to the founder of blue bottle who said everything that i've seen and read, it seems like a way of living in hell without dying on reports now that nestle has taken a stake in that company, reported 500 million. >> large stake >> large stake. >> blue apron has been, blue bottle, blue apron, azuelle, that's been a good one i go back again to this coulter interview. i wish it hadn't been so good, but you talked about -- >> jim coulter, co-founder of tpg, owns a significant stake in uber, discussed at our delivering alpha conference, why so few companies are going public >> if you have capital, it is the level of scrutiny. people don't understand the level of scrutiny. just nasty the equifax people are discovering the level of scrutiny i think that it is -- look at blue apron it burns your eyes it is another eclipse. >> why would you bother if you don't have to. >> the answer is that i think that there is still some cache to ring the bell to coming public. >> there is a need to create liquidity for -- uber is doing this enormous deal now part of it may be to get some shareholders to find liquidity, to his point, coulter discussed the fact they're one of the big owners, no plans to sell even if they wanted to, that is a key reason why you do it there is existence of a secondary market, a lot of other money that can come in, all of the vision fund and softbank can take you out potentially. >> you're so right i think that when you talk about the idea of going public, i think people don't understand that the s.e.c. filings are so difficult. the negotiation of how muotion o be public. >> langone long said years now has said that depot wouldn't take depot public now. >> a lot of companies are saying that now if i had to do it over, i wouldn't do it langone, remarkable man. it was shorted because of the tie-up with amazon >> shorted for that. >> no, i can't >> they were. wll g>>e'et stopped with trading in a minute. for years, at&t has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at&t. we do business where you do business. ♪ ♪ ♪ what's your favorite color baby ♪ time for cramer and stop trading. >> talking about how we seem to wipe on the chowder heads with apple. there was a conference yesterday in laguna beach. i always wanted to go there, it is fabulous. earthquake there in the '80s -- '70s they eat and spoke we're seeing our markets benefiting from the return of growth around the world in industrial activity. the growth is strong in china. very strong in europe. united states a little less. starting to see some signs of acceleration, some spaces. this is what is going on this is this industrial renaissance i keep talking about. it is led by europe. china not that bad 1% to 3% organic growth after seeing very little growth. this is a remarkable story eaton is bread and butter. cleveland. >> 22 straight. >> cleveland company >> 22 straight cleveland, man >> i know the president wasn't watching espn, i'm trying give the president some -- cleveland is great, the indians, the tribe. >> what is on mad tonight? >> espn. we have perhaps the biggest genius in the liquor business ever, tom maas, created r rumchada, which if you haven't had -- what are you, 90? >> i just drink tequila. >> he'll talk to us about liquor do people still go out do people still go out >> they go to bar san miguel. >> having some issues at the bar? a problem? i hope you have a really good weekend. >> you too thank you. mad money tonight at 6:00 p.m. a key interview, orrin hatch on the framework for tax reform with the dow up 30 taking you to the president, making comments about the london terror attack today. he's already tweeted this morning, in the wake of that attack, about the travel ban here in the united states, saying the travel ban should be far larger, tougher and more specific but stupidly that would not be politically correct we're getting that tape from the pool when it runs, we'll get it to you. welcome back to "squawk on the street." dow is up 22 points as we have been watching a number of narratives buffett the markets north korean missile launch yesterday. this attack in london and, david, macro data that hasn't been all strong. retail sales in industrial production did disappoint. >> let's get to our road map this morning starts with the markets. dow hitting another record high, shrugging off uncertainty from another north korean missile launch and that terrorist attack apparently in london and actually on that subject, let's go now to the president. >> it is a terrible thing. just keeps going and going and we have to be very smart, we have to be very, very tough which perhaps we're not nearly tough enough but that's just an absolutely terrible thing i'm going to call the prime minister right now yes. numerous things happen iing. >> have to be tough. have to be smarter thank you. >> that's the young boy who asked if he could mow the white house lawn and appears to be doing just that. the president made his way out to talk to him made a short comment to the cameras. we're going to be watching that and increasingly today, guys, the debate over tax reform, we're going to talk to orrin hatch later on this hour senate finance, who apparently is trying to temper enthusiasm saying, look, we might get more information about tax reform before -- in the next few weeks, but consider it guidance or potential signposts. don't be looking for some extremely well crafted granular look at what this package could look like. >> many people believe that the bill will ultimately be written in senate finance. and therefore it makes orrin hatch and his key aides the key to what we end up with and what will be voted on at some point down the road if they even get that far >> two pieces of data crossing the tape mid-september reading on consumer sentiment, 95.3, a consensus of 95. business inventory for july up .2, which did match estimates. >> north korea firing -- we're not going to talk about korea now, actually. instead we're going to talk about this other developing story, we're closely monitoring for you. and british police are on the scene of an explosion on a london underground train it happened during the morning rush hour. police saying they're treating it as a terrorist incident at this point, 22 people were injured. president trump responding to the news of the attack on twitter. another attack, he says, in london by a loser terrorist. these are sick and demented people who are in the sights of scotland yard. must be proactive. he continues loser terrorists must be dealt with in a much tough manner the internet is their main recruitment tool, which we must cut off and use better we'll continue to monitor the ongoing situation. and, of course, bring you any updates. now let's talk about the north korea story. firing a ballistic missile across japan, and any response that we have been getting, the markets shrugged off a currency market some early reaction buying of the safe haven yen sherry is in seoul, with the latest for us. >> good morning, this is the 15th missile test by north korea this year alone. and comes just 17 days after the last one but many experts say north korea will likely very much likely keep them coming so let's talk about this particular one, this one, again, flew over the northern part of japan. it seems to be doing that. and i think that's been the latest focus of its technologicaladvancement when it comes to its missile technology and this particular one serves a multipurpose here for north korea, one it gets to send the message to the trump administration, to washington saying that if fired in the right direction, then its missiles can indeed reach u.s. territory of guam. it did not do that because u.s. president trump said it will actually prompt some kind of military action. but, if this missile traveled 3700 kilometers, that covers the distance between north korea and guam and, two, it defies the u.n. security council sanctions just voted in three days ago and saying the message from north korea's foreign ministry has been that no form of pressure will work on the north korean regime, so very much defies those sanctions and, of course, saying that it will stop -- it will not stop its missile test but in terms of the reaction from the relevant countries, it stayed very much the same here, south korea conducted its own missile exercise, the united states called on russia and china for, quote, direct action. china in the meantime says this is between washington and pyongyang. sarah? >> all right, thank you very much for the latest from seoul markets shrugging off the london attack, the north korea missile launch right now the dow is positive up 21 points. the nasdaq positive, hovering around record levels here. make santoli joining us at post nine how do we know when a geopolitical event shakz the market, fire and fury when the president uttered those words, we saw a big sell-off. and here we are again, markets climbing back from that knee jerk reaction. >> when do we know beyond just watching the thing that kind of gets past the threshold. it is what it changes the overall sense that this is some kind of, you know, anxious equilibrium. i remind people, markets went up through the cold war, pointing missiles at each other the entire time. not something that the markets are built to price in a moment to moment basis. it is not that analogous the yen rallied for three minutes and reversed after we got the tax. >> big 1% reversal >> well, i actually think that these markets in general now, they kind of do this systems check and they say what has changed? has the fed outlook changed? no, not really macro data, noisy because of the third quarter. it is basically on trend on the tax front, if you're invested with at least some hope that something is going to get done on taxes it didn't become less likely this week. it became perhaps more i don't know in general, it is remarkable how this market manages to kind of sit still for days at a time sitting still at all time highs with volatility basically bleeding away it not a bearish thing. it raises questions whether you have enough energy to get to the next leg, in the upper end of a trading range again. >> dow is up 5 in a row, up 10 of 12. ftse down 4 in a row haven't had that since july. >> yes you talk about currency, this big rally. dollar weak. also, when it comes to the dow, it is interesting, everyone loves aerospace. big high priced aerospace stocks driving the dow to some degree and energy coming back, not as big exposure that's one thing helping the dow, relative to the other u.s. indexes. >> along with financials overtook energy as best sector of the week, right never got that one handle on the ten year. >> that's true that's relief and i think that's the interesting thing. this week has been relief that some bad stuff didn't happen and let's wait and see as the fed meets next week if there is any reason to change the broader story. financials and energy both groups that had been lagging, that bounce, retailers >> is f.a.n.g. over as a leadership group >> i would hesitate to say f.a.n.g. is over the big challenge certainly the idea that they were these one decision bulletproof stocks that you didn't have to worry about, the big picture value. you could argue about the -- what you pay for them today, couldn't argue about the trajectory of the business you can argue right now with some justification about whether the businesses are going to be as dominant. health care, people flocking into growth health care instead. semis have a hold on people. >> dow on track for the best week since april thank you. see you in a bit. mike mentions taxes and we want to get to our special guest in washington, d.c >> i'm here in the senate finance committee hearing room with the chairman of the committee, and a member of the big six on tax reform, senator orrin hatch. thank you for joining us this morning. >> nice to be with you >> so you held a hearing in this room yesterday, sat up there on the dais and said your committee will not be a rubber stamp for any tax proposals from the house or the white house aren't you supposed to be on the same page here. >> we're all trying to get on the same page. but the senate, the committee on finance is going to do this bill the way it wants to do it and i think the ways and means committee will do the bill the way they want to do it and we'll get together and conference and reconcile the differences. it is very difficult to predict exactly how these matters will turn out in advance. we have got a lot of heavyweight senators on the finance committee. just talk about our committee. >> are there any issues where you see your committee going its own way? >> these are all complex issues. no simple formula with regard to american tax reform. it is complex. >> you said it is harder than health care actually. >> much harder than health care. >> why >> first of all, requires a lot of intellectual acumen to handle the matters. plus, there is a lot of differences, a lot of difference of opinion at various aspects of the code democrats want more revenue, so they can spend more money. republicans want less revenue so we can bolster and increase the economy and get more jobs and opportunities for people those two philosophies seem to collide all the time and these type of -- in this particular area but i'm hopeful we can bring both sides together. i've been able to do so in the past >> you've been at it for a long time now your colleagues in the house have laid out a timeline for when they want to get to a bill, and hopefully potentially get it past as well they're adamant this gets done in 2017. what do you think of that timeline >> i hope we can do that that would be the right thing to do if we can i think the house has the right attitude and the right ideas we worked extensively with them. i've spent a lot of time with secretary mnuchin, gary cohn, the financial adviser to the president and mnuchin and i have to say that we spent a lot of time with people in the house and the senate, including the leadership of the house and the senate, so that we can at least get this matter going the way it should be going. >> letting this slip into 2018 would be a mistake, you think. >> i'm sorry >> letting this slip into 2018 would be a mistake if tax reform takes longer than 2017 >> if it does, it does but i believe we know enough about it that we can do it in 2017 but it will take a lot of cooperation of dpeemocrats and republicans. that's on the committee. you go to the floor, it is another matter you have people -- you have doubling and tripling of the ideas of people who have been waiting for a long time for a true tax bill so that they can put their own ideas and imprint on it. >> you've been working on these issues for a long time now what do you want to make sure this bill does >> well, i really want to make sure this bill increases the economic wherewithal of this economy. we're not just going to do tax matters for tax matters purposes there has to be a reason for doing it and the reason in my opinion would be to uplift the economy, to get rid of a lot of things that are -- to provide more opportunities and income to the middle class especially, to make sure that it is fair, and also there is some other aspects of that too. >> you said you want to get rid of the alternative minimum tax that you want to repeal the estate tax, are there other things that you want to make sure that you see jetsoned as part of this. >> i would like to see the tax rates, individual tax rates come down they're way too high we have the highest tax rates in the corporate tax rates, the highest corporate tax rates in the industrialized world. >> is 15% realistic? >> i have to say, our person covered tax rates over 35% well over 40%. so you're talking about very uncompetitive tax system compared to the rest of the world. and it is affecting us and debilitating our ability to compete in the world so we need to bring down those corporate rates and individual rates as well. >> how much lower does the corporate tax rate need to go to make a real difference for businesss? >> the president wants it down to 15% that would be wonderful if we could get it down there. we'll be working to try to do that, i sincerely doubt we'll be able to get that level on the corporate tax rates. but, you know, we have to bring them down from the current highest rates in the world. >> last question for you, you have served seven terms. you are 83 years young are you ready for retirement >> not yet i'm a tough old bird i work very hard nobody outworks me i really enjoy what i'm doing. it is -- i know it is important. and my goal is to do what is right for america, not for the republican party or the democratic party, but to do what's in the best interest of our country. and our people and tax reform is an area where he can really do an awful lot of good for the middle class in particular, which is the -- that's the area that we really want to help for the most part and the poor are helped. they don't pay taxes to be honest with you. the middle class really shares the burden, the biggest burden of this economy and we want to make sure they're traded fairly. >> all right, senator, thank you so much for joining us today i'll send it back over to carl >> great interview . thank you very much for that when we return, shares of equifax continuing to fall over the company's massive cyberbreach. we have the latest on the investigations plus, facebook under fire after an article shows its ad buying platform made it possible for businesses to target users who expressed anti-sitemic views we have the details. i count on my dell small business advisor for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪ did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's up to 16 times faster than slow internet from the phone company. say hello to faster downloads with internet speeds up to 250 megabits per second. get fast internet and add phone and tv now for only $34.90 more per month. call today. comcast business. built for business. equifax shares continue to sink down since reporting that major data breach. elizabeth warren now launching an investigation with 11 democratic senators, she also wrote to the ceo saying, quote, i'm troubled by this attack, described as one of the largest risks to personally sensitive information in recent years. and by the fact that it represents the third recent instance of a data breach of equifax or its subsidiaries that endangered americans personal information. richard smith is set to testify before the house in october. that let's bring in jeffrey sonnenfeld and eric dizenhall. good morning good to see you both eric let me ask you, if this is something -- this is not going to be fixed, quote/unquote, by an ouster of the ceo. >> no. look, this is not 1692 where we all get to feel better if we sacrifice the ceo. this comes down to two things. confidence and control people need to have the confidence their information is not being breached and the control so they know what to do if it happens. by way of suggestions about what do you do, none of us are in the room where we know exactly what is happening there but in the confidence department, maybe one thing is to change your technology, to be able to say we are now going to do something new and different we are going to be bringing in military cybertechnology, the kind that we think will increase the chances or decrease the chances of something like this never happening again. on the control front, one of the problems equifax is having is we don't know what to do. people in my office tried to log in to their website, and we found the most vague reference to maybe we were compromised, but if you sign on here, maybe we'll be able to help you at some point down the road we left the encounter angrier than we were before hand but conceptually speaking, if they address confidence and control, that is at least the concept to begin to get out of this. >> jeff, has the company or its management done anything right since this breach was first revealed >> you pitched it to me the way i would have wanted it to. i appreciate eric's points and i usually subscribe to his wisdom. in this case, eric, i have to disagree with you. this is a management failure you set this up on confidence and controls if this has to do with technology and systems. there is nothing on the technologic technological frontier that went wrong. this is the most mundane management missteps out there. look at what happened with target, they made the same mistakes they did and they fired the ceo as they should have for his mistakes in that case and brought in a fantastic guy to fix things at target they need to do the same thing here this guy richard smith, before, during and after, there was no preparation, you go to the websites now, anybody preparing for the show, want to look at the company on the corporate governance principles, about their leadership, you get a page that says, sorry, the page you're looking for doesn't exist. their own website is not working now in the midst of this crisis. and you got to wonder, what were they thinking? getting their management advice from steve els at chipotle or mickey aronsohn from carnival cruise lines or tony hayward at bp, where are they getting their advice they outsourced way too much to a third party contractor they had fixes available for four months before the problem from the software company, they didn't apply them, these are management missteps. these are not technological unknowns >> i don't think we know all of that yet. >> not to pile on, but how about that odd selling of stock before the hack was actually revealed to the public. i don't know how, jeff, they're going to explain that. >> who wasn't -- it is the cfo and two division presidents, one of them in charge of this field. and the company is saying, they didn't know about the breach they knew about the breach since july and they said, we have a program of trading they should have halted it then. you stop it then >> but we all know what -- we all believe we have a sense of what went wrong. i still don't subscribe to the idea that the answer to every corporate crisis is to bounce the ceo until we know more that said -- we still don't kno fully what happened here and i think that there needs to be -- you need to look at what the solutions are, not just rehash what the problems are. and i think as we look at what possible solutions are, what is the announcement, what is the new thing they have to say they are going to be doing so this doesn't happen again >> spend time lobbying to try to put limits on liability at this very same time that's where management's time and attention went. >> rehashing the past. i'm looking at what do we do now? my job is what do we do now? i think what has to happen now is you outline of what the solution is. >> eric, jeff, oh, my lord, we lost full control of both of you. to the overall point, i was making it earlier, though, there are hundreds of companies now in this country that are being tacked to try to breach their firewalls. happens every minute, every second, talk to jamie dimond, jpmorgan dealing with that all the time they deon't get through >> you're assuming a plan is -- >> to communicate and all of these things >> we agree. we agree we agree but i don't see much correlation between extensive planning and being able to get out of the problem. nobody would dispute that this is a problem i am looking at this from the position -- >> comes down to the communication you have with the customers and the vendors and everybody else. >> it helps. >> this is far deeper than a communications problem you don't solve something like this. >> there are detection systems that they have, that the single wasn't being paid attention to these are all management failures, not technology problem s. >> let's assume for a minute, this is going to happen again. where is the line where the company is obligated to disclose, right? let's take a metric, pick consumers ffective 143 million here do you announce 100,000? is it 50,000 are we going to announce every single tiny or large breach from here on out? >> that's the problem. the nature of crisis management is my clients have breaches, product defects every day of the week so if every single day, every time a container of cheerios is damaged, somebody does a product recall, that flies in the face of basic logic there has to be some sort of threshold. the problem what happened with equifax is this is a huge threshold, a huge breach, and also the company failed in being able to give people any sense of what their supposed to do. the question is i don't think as of september 15th my experience with crisis situations is we don't know immediately everything that happened, but we know there has to be a prescription of how to get out of it, what is the solution, what is the thing we are going to do that we did not do before that will help prevent this. >> you don't have to know everything before you go public. >> i wanted to -- we only have a minute left here to spin it forward, senator elizabeth warren is doing an investigation. we have seen three bills introduced yesterday from democrats to address this hack talk about the leadership and management from congress what is the role what are they going to do? channeling public outrage here or can they actually get on top of this when it comes to addressing consumer problems >> well, equifax gets some sympathy as it gets into congress' hands. you remember the grandstanding john stump of wells fargo was not prepared he got beaten quite badly. came off as disdainful, gave some intentionally misleading answers. smith better be prepared but you got the federal trade commission, you got the consumer financial protection bureau, and you got also a consolidation of these 30 lawsuits coming together, these class action suits, there is a lot of aftermath now to deal with it. this company doesn't look like they're prepared to deal with the past, let alone the future you're right they have to deal now with the regulatory and judicial process. >> jeff, eric, going to be a story for weeks, maybe longer. thank you. >> thank you >> when we come back, the latest controversy at facebook as the company comes under fire for its advertising practices. we'll discuss that looking at stocks at this hour, as for the dow, it is apple and boeing, two winners of the year that are leading th charge now dow is up 25 points. s&p 500 is flat. the nasdaq barely positive "squawk on the street" will be right back at fidelity, 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stay with me, mrs. parker. that's the power of and. and her new mobile wedding business.tte at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and-ta-dah-paid twice as fast for free. visit quickbooks-dot-com. ♪ can i get some help. watch his head. ♪ i'm so happy. ♪ whatever they went through, they went through together. welcome guys. life well planned. see what a raymond james financial advisor can do for you. facebook is under fire an article reporting the social media network enabled advertisers to direct ads with violent anti-semitic views julia boorstin is watching that story today. >> jew haters, how to burn jews, interest in history of why jews are in the world, those are some of the categories that facebook -- it removed them after being contacted by pro publica and changed the process. a test of promoting posts of over 2,000 people who expressed interest in anti-semitic topics. facebook removed those categories, which were the result of users inputting descriptions in education and employer fields. then they went into the ad service platform hate speech and discriminatory advertising have no place on our platform our community standardsp prohibit attacking people. as people fill in their education and employer on their fro file, we found a small percentage of people who entered offensive responses in violation of our policies. it goes on to say that keeping our community safe is critical to our mission we are removing the self-reporting targeting fields until we have the right processes in place to help prevent this issue this comes as facebook's ad sales practices are under scrutiny by robert mueller looking at russia's purchase of facebook ads ahead of the 2016 election facebook says it continues to cooperate with authorities as necessary. back over to you. >> thank you for that. quick programming note here at 11:30, we'll talk to julia angwin she published that article about facebook stock for the most part has not reflected what some are calling a turn in political pressure on social media companies. >> that's the question we have been having this conversation for a while now, about the growing political backlash wall street has a big story. we are far away from the south by south lawn, the event held last october during president obama's administration for a lot of these tech ceos still we haven't seen much of an impact on the stock market or the business, the russia ad spending during the election these cases are piling up. i wonder if at some point it turns the tide for the stock so far not yet. >> 1.3 billion daily average user and counting. >> 2 billion. >> 2 billion monthly a lot of money that they make as well a large market cap let's quickly shift gears here over to sue with a cnbc news update for this hour. >> good morning, everyone. here's what's happening at this hour a homemade bomb exploded on a packed london subway train during morning rush hour, injuring 22 people none of the injuries are thought to be serious. police say it was a terrorist attack, the fifth in britain this year. president trump tweeting that it was, quote, another attack by a loser terrorist in the sights of scotland yard. for the second time in a few weeks, north korea launched a missile over japan the u.s. said it was an intermediate range missile and no threat to guam or north america. the u.n. security council is calling a meeting on north korea for 3:00 p.m. eastern time this afternoon. private donations are pouring in to help mexico recover from last week's devastating earthquake which killed at least 91 people. mexican officials say tens of thousands of homes were impacted, affecting upwards of 2 million people in that region. harvard reversed its decision to name chelsea manning a visiting fellow. the decision comes a day after cia director mike pompeo scrapped a planned harvard appearance to protest the soldier convicted of leaking classified information harvard said the university made a mistake. you're up to date. that's the news update this hour david, back downtown to you. >> okay. i'll take it, thank you. when we come back, dr. doom, marc faber not to be confused with faber, offer the gloom, doom and boom report we'll talk about where he's putting his money to work, the future of bitcoin and more quk t see wl be right back taking another look at stocks this morning, dow and nasdaq are in positive territory, just fractionally stocks are hovering around another record high and the sixth straight positive session. for more on the markets, we're joined by the gloom, boom and doom report, marc faber. nine years ago today, lehman brothers collapsed, good opportunity to take stock of how far we have come in the markets. and in the economy if you bought that day, you would be up 100% i know you've been pretty negative throughout this bull market how does it feel to you in terms of the longevity and how much further it could run >> well, actually, i turned very bullish on march 6, 2009 and as you know, after 2013, 2014, i didn't see much opportunities in the u.s but i saw opportunities elsewhere. especially long-term bonds and over the last two years, i was very positive about european stocks and about asian emerging markets. this year, european stocks, all of them with the exception of the ftse 100 in london have outperformed the u.s. and all the asian markets except for the nikkei have outperformed the u.s. and some actually very meaningfully such as the indian market, which is up 30%, and also the korean market, surprisingly, you think about the events in north korea, korean market is up 25% in u.s. dollars. so we have had a shift in market leadership, away from the u.s., to other markets and i think they is still better value in europe and asia than in the u.s. >> even in asia, markets like korea and japan, which are now so threatened by what is happening in north korea, would you still be a buyer of those stocks >> i think japanese stocks are interesting because we have actually in the corporate sector deleveraging in japan, and some japanese companies are actually quite good value i personally prefer investments in indochina, in vietnam, cambodia, thailand, myanmar, and also laos. that is the region i think has enormous economic potential and will be plenty of opportunities. but for institutional investors, the japanese market offers in some sectors very good value >> maurc we got you to say you were nervous because you're not -- you're not feeling as bearish as you're used to. i wonder from a sentiment standpoint, has that changed at all? >> i still worry about that. and i have to say, i agree with people, who don't see much value in american shares from a long-term valuation point of view the returns are going to be very low. but i have to say one thing, in europe, i had exposure to the bond market. now in european bonds, and keeping italian ten year government bonds have a lower yield than u.s. treasuries, french government bonds have a much lower yield than u.s. treasuries as well as german, most other european bonds, so in european sovereign bonds, i actually see a lot of risk, and practically no reward unless we have serious deflation where as in equities in europe i see also risks but at least some reward and so by necessity i think institutions have to shift from bonds into equities in europe, and i think that will keep on driving equity values in europe higher moreover, in europe, we never have financial engineering that we had in the u.s. and i think a lot of american companies will go over to europe and we have seen this in switzerland, acquiring european companies because the european stocks are relatively good value compared to american value and so there will be a lot of mergers and acquisitions and those with financial engineering occurring. >> we'll have you back, marc, talk about bitcoin, i know you read about it in your september newslett newsletter for now, we're out of time thank you. marc faber when we come back, our insider trading cases about to get easier to prosecute? jim stewart joins us to talk about that and as we go to break, take a look at shares of oracle as fiscal q3 earnings season officially under way beats on the top and bottom line, the stock is pressured by cturnter than expeed cre quarter forecast we're back after a break stevee move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. when is 240% expected earnings growth a bad thing? when it is one group of stocks where they expected more find out who that is at tradingnation@cnbc.com or "squawk on the street" coming up next dynamic performance, track tuned handling, and aggressive styling. the bold lexus is. lease the 2017 is turbo for $299 a month for 36 months. experience amazing at your lexus dealer. equifax facing growing scrutiny for the recent data breach a bipartisan group of senators calling for scrutiny of stock sales made by several executives in the days after discovering the breach our next guest says a recent federal appeals court ruling could make insider trading cases easier going forward joining us is jim stewart. good to see you, jim. >> nice to be here. >> the argument may be the tides have shifted here. >> and thank goodness. there was an appeals court ruling in 2014 that really made it open season for inside traders on wall street the prosecutors in the southern district had to go back and undo seven convictions and guilty pleas of people who were caught insider trading because of this very bizarre opinion, made it so hard to prove it they said if you got the information from someone that had to be a close personal relationship and there had to be some expectation of a monetary quid pro quo or other significant gift, well, we all know that's not how wall street works. there are no true gifts of information on wall street you tell somebody amazingly valuable information, and they go trade on it, if you don't give them back something immediately, you know the phone call is going to come and knock on the door saying, remember that little favor i did that made you millions of dollars, okay, now it is my turn. that's the way it works. that's -- those people were getting off. that has stopped that same court came to their senses, and in a very interesting case, involving, you know, a despicable insider trader who had really the nerve to say, okay, now i shouldn't be in jail, because i'm like these other people, i wasn't close to the person who gave the information. they slammed the door on that. i think they now restore insider trading. >> rough time for preet given his long track record of success, overturnings you're talking about including the newman case and others does this empower whoever it might be, who might take -- we don't know >> no, no. we don't have -- >> but does it give them back the stronger power than they had in the past in. >> in some ways, it strengthened that it clarified any ambiguity abou that i think preet came under a lot of criticism and much of it very unfairier ruling was partly created because there was a spat between some of the judges and the u.s. attorney down there, which, let's face it, should not really enter into what the law is. that's all been washed away. i think things are back to where they ought to be. >> you talk about what would have happened to just prosecutors mentality, if that hadn't gone checked, right effort would have been gone. >> it was incredibly demoralizing as we don't know how many cases they never even brought over the last two years because of this ruling but no doubt quite a few imagine as a prosecutor, you spend years building these cases, you get the evidence, you take before a jury, spend a lot of money, get the conviction and then because of one appeals court ruling, you have to go back to the court and say, sorry, that was a mistake, we got to undo it all and let the people go. i think it was so important for investor psychology that we did clean this up. that these people did get caught, that the hedge funds were reined in and that inspired a lot of confidence. when the pendulum went the other way, we were in danger of people feeling this is another casino. >> there were some peculiarities to that case, in terms of the different stages of tippee, the tipper, how much people it went through and whether newman knew anything he was getting was material information >> yes, this was a -- there is -- you can get the tip directly from the source, maybe get it secondhand, third-hand, fourth-hand. >> you're citing -- >> that was an easy case. >> dr. gilman was telling him, the trial is not going well on this key alzheimer's drug. >> it is still difficult to prove the long chain cases you got to show the person who traded knew it was insider information, knew somebody breached a duty in giving it that's not always easy it is still the case, if you're in a football game, and you overhear somebody next to you saying, oh, you know, coke iskne a bid for pepsi tomorrow, you can run out and trade on that. you don't know where the information came from, you don't know who's talking that's still okay. but that doesn't happen much and that's not the problem on wall street. >> have you been following this equifax story, and specifically related to the potential here for inside trading >> well, what kind of information did they get there, you know, a, i don't think we entirely know that yet, and we also don't know how they got it. when i saw there were 150 million people, though, who had their information compromised, that was a wake-up call. i sort of immediately, i hate doing this sort of thing, but i went and changed all my passwords. >> really, did you really? >> i did frankly, i should have done it before now, but it reminded me that we're all vulnerable, and i hope this is going to be a wake-up call thank god it hasn't happened at a major bank, brokerage firm, we haven't had people losing massive amounts of money i will say my own experience with the credit cards, i've had it stolen a couple times, somebody got the number. they do call me pretty fast saying did you dispend this amount of money. >> this is worse in so many ways, social security numbers, credit information, identity theft. >> first of all, we don't know who got it and what the capacity, once they have that, what can you do with it? we don't know, but it's a very scary prospect >> would you -- i always push you back into stock selection, but does this look at all attractive as a stock? >> as a stock? no i wouldn't go near this. i mean, i realize it's down, but this is not a place to try to call the bottom, i think there are going to be a lot of investigations, information coming out in my view, i don't know your experience, but these have never been consumer friendly companies. they are incredibly difficult to deal with and they have a sort of quasi protective status and there's going to be a lot of regulatory scrutiny and i think heads are going to roll and more trouble before it's over >> your piece is good. thank you, jim jim stewart. all right, let's get over to john and get a look at what's coming up on "squawk alley." john >> facebook under fire again, not russia this time or competition concerns it's about the advertising business and possible discriminatory issues with the terms that people are allowed to advertise under. e this the end of tech's lay zefair approach? top of the hour on "squawk alley" 's great to finally meet you. nice to meet you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. knowing that the most important goals are yours. multiplied by 14,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. take a look at the market, s&p going positive and hitting a new record high. doesn't take much these days, hovering at these record levels, but there you go, a tenth of a percent rally into record territory. talk about some of the groups leading the market, technology is actually the highest group right now. telecom, financials, all doing well today real estate and you tillties are the big lagers after the retail sales report wti crude trading under $50 a barrel, sort of flattish for the day. we went above that for the first time since august. we'll keep tabs and when we come back, facebook under fire after an article out of propublica saying it made it possible for businesses to target users to express anti-semitic views we have a lot to talk about. "squawk alley" is coming up next don't go away. not rebalancing your portfolio. pursuing your passion, not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. kevin, meet yourkeviner. kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. welcome back to "squawk on the street," i'm dominic chu as you can see, tech is the leader today including western digital, amd, that ticker smh is up more than a percent in early trading and about 4% higher for the week overall keep an eye on those of course, we also have to watch what's happening with oracle shares, as well, the worst performing stock on the s&p 500 after the software provider provided down beat guidance below expectations technology is certainly a sector to watch that does it for this hour of "squawk on the street. let's send it back downtown for the new york stock exchange for the start of "squawk alley." back over to you guys. >> dom, thank you very much. good morning, it is 8:00 a.m. at facebook headquarters in menlo park, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ good friday morning, welcome to "squawk alley." i'm carl quintanilla also wit

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