Major averages muted after the rally that closed last week. Dow and s p breaking a three week losing streak nasdaq best week in a month. Tech stocks are part of the story. Where are the buying opportunities . Christina hooper joins us with larry glazer good morning to you both good to see you. Do you think anything fundamentally changed as a result of the talks . No, but i think markets got ahead of themselves. I mean, lets think of it not as phase one, but phase 0. 5 the u. S. Thinks they made an agreement, china doesnt necessarily believe the same stocks got a little ahead of themselves, but there are always opportunities to find tech gems out there. Where are they . At least, what leads you to them in this environment now . Well, i advocated that chinese took looks very attractive, that has been beaten down since the u. S. china trade wars began seen small recoveries, but there are a lot of opportunities in chinese tech. Why do you think the administration is trumpeting partial deals to have the chinese come out, say well, not exactly. How should investors be treating that sure. Lets keep in mind, this is october after all. October is a scary month look, it is a scary month, known for halloween, also known for major market selloffs. This year for halloween i was hoping to dress up as a trade deal with china. But i cant because ive never seen a trade deal with china, may not see one between now and halloween. What investors have seen before is q4 volatility, they saw it last year. It is a scary monster that came out. No one wants to talk about it, we know it is out there. If we dont make a trade deal, thats a real concern. Were seeing investor sentiment, weakest levels since 2016. Were seeing all of this softness, telling investors dont trade the trade headlines and compete with, build a Shopping List for year end, looking for tax loss selling candidates which i am more excited about in election season. I have to try to get to christina. I want an answer to this question why does the Administration Keep doing this, whats the investor to do when you get a partial deal announcement, the market moves on it, the chinese say no, theres no deal. I think there may be some misunderstanding when the two sides come together, were finding this is often happening, right . Maybe theres a misinterpretation of where everyone stands. More than once is it really misinterpretation . Theres probably some Wishful Thinking involved. The reality is markets want a trade deal, perhaps the administration is desirous of delivering that for markets. I dont think there was a misunderstanding china was very quick to pop our celebration bubble over the weekend. They were unfazed by faphase on of the trade deal. Thats like finding ronda rousey in an alley fight, it is not going to be an easy win. That tone is something investors should take away and recognize and spend time focusing on so larry, then is the hurdle too high is the bar too high to hurdle in terms of getting the phase one deal on paper in the coming weeks, if so, does that mean pull back for stocks look, theres a bunker like mentality starting to emerge record in flows going into money markets. We see a barbell approach, investors are trying to hide from the stock market in young ipos, and the ipo market is effectively dead for those deals. I think investors are right to have the bunker like mentality, but now theyre chasing utilities, gold, all of the usual suspects to hide from the market thats what creates the opportunity year end theyre leaving Everything Else behind, leaving these other areas theyre afraid of. If we make a deal, it will be a massive positive catalyst for the market and the market will be relieved. Problem is it wont have impact on earnings season now, thats what were focused on the next few weeks. Earnings will be soft, nothing on the trade calendar will effect that. Thats what we are willing to focus on fundamentals where the rubber hits the road, not sentiment. The bond market is closed, columbus day the equity market taking a cue from the treasury market we dont have that today looking to the rest of the week, what do you expect reaction to be within that market and what does that mean for stocks . I wouldnt expect the ten year to move lower we have seen more volatility recently, and the treasury market has been a good fear gauge. I would expect the ten year to move lower in this environment because smaenentiment is gettin negative. The ipos have not performed that well, for a long time people talked about how all these stocks were so expensive are we going to look back and say that was a great time to buy this handful of stocks that have grown since then growth looks more attractive than it has. Secular growth makes sense in a low growth environment the buying opportunity really is there for investors with a long time horizon. Any names i cant tell you names, the secular growth plays as opposed to cyclical parts of technology. I assume talking more software than hardware software, internet related names, really those that ultimately i think will be designated in other categories, consumer internet, things like that those are attractive some of the big plays, the faangs looking for not only trade skirmishes, i dont mean just u. S. china, but domestic policy risk coming off the weekend of Elizabeth Warren and facebook, for example. We have to recognize there are going to be many domestic policy risks Economic Policy uncertainty will go up until probably the spring because we dont know who the democratic nominee will be and then that uncertainty continues likely because we dont know how the general election and polls will play out. We have to recognize this will be an ongoing theme. Higher volatility. This leads to buying opportunities, when the volatility is downward sure. And i agree with that the domestic policy risks will be targeted on the largest players, the facebooks, not just the Smaller Technology names the failed ipos, theyre not a political target or populist target companies that do business with china will be unfairly beaten up, some are technology names. It is not labeling growth versus value, it is opportunities versus overvaluation anything large will be well represented in the major market indexes, will have a political target, investors should fade, be more cautious there are plenty of other opportunities. Soft landing, lots of small ones will do well if trade issues are addressed. Investors are acting more cautious and thats what gives us hope going into year end. You have to rearrange the portfolio and not chase what everyone has been chasing. Thats where the risks are, particularly in election cycle where the Political Landscape is so volatile now. And almost certain to get more so. Larry, christina, thank you. Good to see you. Thank you coming up, master card, visa, ebay, paypal dropping out of the leibra coalition where the crypto plans go from here. Stocks waffling twn beee gains and losses more squawk alley after this break. Your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally discovered in jellyfish, prevagen has been shown in Clinical Trials to improve shortterm memory. Prevagen. Healthier brain. Better life. We just mentioned a list of partners abandoning facebook and libra, visa, master card, stripe, ebay and paypal was first. Deirdre bosa has the story it leaves facebook in an awkward position reporter thats right. All of tnames dropping out days before a meeting of the critical association, taking place today in geneva. The association is supposed to appoint a board of directors, turn nonbinding agreements into something more substantial and binding. So who got cold feet the most Important Group of that association, some of the biggest payments processors in the world. Heres what the group looked like on the website friday afternoon. Heres what it looks like today. Yes, there are other big names there you go, thats what it looks like today other big names in internet and vc and block chain are listed, payments are the muscle. Gave facebook product credibility, and easier way to use the Digital Currency that threatens to derail facebook efforts at large to reshape the financial landscape. We have seen the pressure but on facebook executives around the project. Well see more when Mark Zuckerberg testifies later this month. Less obvious is the pressure on payments treasury secretary Steve Mnuchin told them he would take action if they didnt meet regulatory standards. He asked for a complete overview of compliance programs, how libra would fit in after the exodus friday afternoon, the head of the digital wallet david marcus tweeted i would caution rating the faith of libra into this stay tuned for more. You know youre onto something when so much pressure builds up. We look forward to developments and track that meeting today in geneva closely great setup thats optimism. Bring in kara swisher, cofounder of recode, New York Times columnist, cnbc contributor. Hello. Im hoping we can put this into context for investors. Sure. When it comes to libra. My take is calibra is the play if facebook can tell when you open your wallet, doesnt have to have control of the currency to make money, it can do that t attribution, tell how Effective Marketing is, become a big player is that whats important for facebook no. You threw a currency party and nobody showed up you and i talked about this. I said it is not going to go down as easily as facebook announced it you need payments players involved this is a global one of the things, playing well with people is important, being a partnership. Facebook is used to a dominant role here. With currency, health care, anything that has to do with regulation, cars have to be done in partnership with government and partnership with other companies, partnership with citizens, elected officials. Currency is a global, Worldwide Network of cooperation in a lot of ways. It is in fact that so you need these players to be in there this is not a good sign. They can have the currency within the facebook system but it will be separate, different from a wider change in the way you spend. Is that the Golden Fleece facebook wants on the up side, that attribution, be a key part to the digital part . They want to be the key part, central part it is to have a facebook wallet to spend, and others dont want to play. Why give away facebook this also theres good question whether there should be global currency, i know it scares some people question is, should be facebook be running it. Even though they did this, the message you want to start off is were in a global group of partnership, and now they arent why wouldnt uber and other Commerce People participate in it but it is not just a short set back as david marcus, who is a sharp guy, said. Now we know why they were not vocal in support we kept saying, why arent they coming out with equally ambitious and enthusiastic messaging. Why ever partner at all. Not sure i understand. Because of all of the pressure from a regulatory point of view. They want to show that theyre part of a greater group. When it was announced, i think i said it is the facebook currency thats the question, do we want to do this there are lots of players, there could be amazon currency, theres all kinds of players in general, whoever can bring allies together, which is good in this space, critically important, you have to have that cooperation. And mnuchin should be saying, so are all the financial regulators around the globe mark will be in washington i think next week. Im going to go see him at some event where he is talking about the first amendment. I think a lot of these things will run into the buzz saw of regulation everywhere they go. Steve case called it third wave of internet, and you really have to have partnership. Were getting news now as we have this conversation that booking holdings is also pulling out of this Libra Coalition as well i wonder, you mentioned amazon i wonder how many other Big Tech Companies are sitting back, watching this play out with facebook to map out their own game plan to avoid similar issues. I dont know if they would have this much ambition to do currency like this thats what it is. Amazon works well with all of the other payment processors, facebook has a process thats popular, paypal. It is a question of who wants to and should lead this thats a big question. Why trust any private company to run this this has been my issue with it since the beginning. Meantime, kara, the wework saga continues softbank reportedly seeking to take control of the we company through a financing package deal that would further sideline the founder and former ceo adam neumann. Is this becoming an existential issue for softbank are they taking control because if it blows up, theyre on the hook for so much already if it blows up, it is going to blow up these executives created beautiful spaces, running it operational as a bear i imagine, running these Properties Across the globe is not an easy plug and play thing they have experienced executives that have done a nice job, the product is just economically not viable i think thats the question. I think youre going to see a much smaller entity, and interesting competitors here again, is this a situation softbank can roll everything up, and i dont think thats the case i think it is localized. Love to get you and Scott Gallaway together and see if views match. Seen it last night, 2020 will be a decline in value of traded union corns. We talked about that in pivot this week. A lot of union corcorns. I am with galloway on this. The 50 number he likes to make it i think the question is when they go public, well see i think pinterest, airbnb, and a not of others, question is how well will they do. Again as we have both been saying, math is critically important now, investors with all of the global, now with syria, nobody wants to be like high flying now. I think thats the mentality right now. The question is can softbank take this over when they have so many other things theyre doing, no operational experience. Only thing to do is shove money into this thing. Thats another question, do they have enough to do that given other commitments. Talk about reckoning from other markets, Equity Investors where wework is concerned, facing a cash crunch, whether softbank coming to the rescue, jpmorgan managing to debt raise, shore up finances there, i wonder what happens if neither happens . Theres always someone with money. Would you lend them money . I dont know i wouldnt would you . Depends on the debt margin. Depends what terms. Sure, theres always money. It could be very ownerous for owners, everyone gets crammed down i think thats the term. Im not a technical person you know what im saying someone will show up with money, then it will be terms and then the question is who gets is the rest of the ecosystem at risk if softbank has to take one in the chin, on the chin, whatever body part that hurts . Not necessarily i always thought they overcapitalized these companies and a lot of people share my view they dont need the capitalization, this giant came in with money, if you didnt take it, you didnt take it. Most people dont think it is a good idea. Last thing i would say, andrew yang, democratic candidate, from hyped unicorn to financial salvage operation in a matter of weeks is a bad sign whats going on behind the scenes for private Company Valuations hasnt been the mosaic of policy discussion. He would come out, he has been involved in it. These valuations are just, you know, you can scoff at them. Sometimes theyre interesting, growing companies. This is a great brand, great product, same with uber and so many, theyre products people love the question is where is the valuation, who gets left holding the bag when the valuation is too high this case thank goodness not retail investors. Reminds you of the memory market, chase booms, oversupply. Yep. Great to have you. When we come back, watch the markets trade in a light band. Light volume this holiday. Roku up nearly 300 since beginning of the year. Is there still room to run after a series of down grades and some upgrades in recent weeks talk about that in a moment. [spokesman] if youve tried college but [snhu lets you transferried colup to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu welcome back to squawk alley. Roku is one of the best performing nasdaq stocks f the year but whats behind its rise, are there risks ahead. Jul Julia Boorstin has a closer look. Reporter shares soared 300 year to date on confidence that the company will continue to benefit from the explosion of streaming apps apple tv plus and disney plus launching next month, followed by hbo max, peacock next year. Heres why the launches should benefit roku theyre expected to get ad revenue from new services as they market to consumers second, if people subscribe through the roku platform, roku will earn a share of that subscription revenue in addition to generating ad revenue from free ad supported content roku offers and taking a cut of subscription revenue and down loads, roku makes money selling streaming devices ranging from 30 to 100, and Licensing Technology to smart tvs that start at 200 and up. They had 30. 5 million active accounts analysts predict that number will continue to grow. Mark mahaney raising the price target, saying the company is a switz switzerlands in the streaming wars taking a share of tv ad spend opportunity. And the stock was outperforming price target, citing coming expansion to europe next year. Rokus growth trajectory internationally could well echo that of netflix. In contrast to roku stock growth, netflix has given up most gains from earlier in the year netflix shares up less than 6 year to date we will learn more about netflix and the state of streaming wars when that Company Reports earnings after the bell wednesday. Back to you, jon netflix versus roku has been interesting to watch will get more interesting as the week progresses. Meanwhile, a new session of parliament begins, following the queens speech, s