Conocopillps acquiring contra resources. The largest deal this year and well have conoco ceo join us this hour. The 737 max or comeback european r regulators saying it is safe to fly and planning a december return to service. Carl jim, heard you just talking to becky about stimulus as we continue to kick this around it does not sound like this new sense of urgency, quote unquote, will do much to push the package forward. We are too close to the election and either side gives then the other side. I think has them so, lets say the president gives a little bit more than i think that Speaker Pelosi will make it even tougher because the president wants to get that check to you to the least amount of money donald j. Trump wanted. I know that is something that a lot of people, wow, the president gave it to me. I think what we should be owning and trading and buying are companies that are about to go through an Earnings Period that i think is going to be rocky but overall positive and i think one of the reasons why i think its going to be positive is that if you dont, if youre not able to make the earnings, well, you know what, you sell yourself. David, i think the opposition you want to cover and about as good as they get and they couldnt lift their stock price. They just couldnt you said for a long time and i would assume you continue to believe its an uninvestable sector, broadly speaking oil, oil and gas. Whatever you want to call it, jim. Y youre right so many different pressures on these businesses another one esg. Certainly not something youre getting pressure from the administration on but from shareholders and those who allocate capital, jim. That is figuring into the decisionmaking at these companies, as well the additional costs they s thb taking on so they can no longer be uninvestable. When you go to different websites and concho. One of the best there is what they show you right up front is, look, heres how were dealing with pollution heres how were dealing with the issues out in front saying, listen, less flare is what you see when youre an astronaut and you look over our country and you see these bright lights and theyre not cities they are flame and thats burning off the natural gas because we have too much natural gas in the country carl, we can talk about this group and say, you know what, at a certain level it has to be interesting or chevron yielding 7 and the best of the best can they pay that dividend i come back and say people would rather buy 50 times sales than five times earnings in the right group. They would pay, being 50 times sales. Hey, by the way but the companies, jim, will try to continue to position themselves for what is coming. Theyre going to continue to position themselves as conoco is for this world and it doesnt matter what the government of the u. S. Thinks, its what investors think and care about thats part of this. This is a guy, tim leech, chowhs one of the very well regarded making the decision to sell and part of this company, by the way. No, hes going to be running the lower 48 and i think, you know, even though this leak last week that part of it did not. Hes president and he will be president of the and running the lower 48 running all of that. The eagleford and, of course, the permian. He is regarded as the intellectual of the group and thats really important because he early on recognized were not a good swing producer and were going to lower our price and its not going to come back. One of the things he did, david, was not base his whole philosophy on the idea of pump, pump, pump because good prices have to come he really was about cutting costs and becoming a great, clean producer im glad hes staying on because hes one of the few that really has that reputation of being the best we have right right. But meanwhile, not really able to create a lot of value in the current environment. You do an all stock deal, you roll in and you hope for the best in terms of the combined company and that your own Shareholder Base is going to be rewarded over time given it is an all cash transaction. You know what i favor snowflake. Absolutely. Every time were in some whacko market i was on the zoom call last week i mean, zoom was doing triple what it was doing three months ago and i know its 50 times sales but at the same time, i want growth not from cutting and hopefully having more oil per rig, but i want growth that is pure that is dominant in an era where covid, im listening to dr. Ghaly is not saying it is going to go out. I watched last night different network, dr. Fauci, hes very concerned. I know Johns Hopkins is very concerned. Do i really want to be in a world where i think covid is going to end and were going to start driving like mad and oil is going to go up. Im not buying that, carl. Im not buying that better than ever world well, to quote ghaly this morning we have two or three very hard months ahead of us and the hardest phase of this pandemic at the same time, jim, tsa out with their screening numbers they screened a Million People on sunday. We havent done that since march 17th obviously, suppressed off of precovid levels how many signals are pointing to a hard winter and a tepid recovery i think the Airline Industry and kicking and screaming is now willing to admit almost no covid on planes if you wear masks. I have no fear whatsoever of flying by the way, i have no fear of flying on the max which is the most stunning plane in history and thats coming back and thats very positive for the u. S. Economy but i do think that it isnt flying that is a problem david, its finding something worth going to thats really the key its going to a place where things are open that you want to actually go to, whether its restaurants or any number of other entertainment activities in various places you could go what could you really do then theres the Business Traveler which, jim, i would argue given all the conversations weve all had with executives who are typically on the road 40 , 50 , 60 of the time that is never coming back. Will they go on the road of course. Will day take trips . Of course. Will they ever travel like they once did no way not when theyre closing deals with zoom. Carl, when you go over those bank earnings, carl, youll see companies that i think a year and a half ago would have said, its impossible for us to do business really big business over the phone and video ill tell you something else, mark took the first trip the biggest globetrotter and he went to singapore this weekend by the way, no covid singapore and 100 mask required dont go there without wearing a mask because they decide to wipe out covid and they have. Yeah, i saw some pictures he was tweeting from his trip did you see those jim, on stimulus. Note this morning the overall market seems to be hopeful on a package, but subsectors demonstrate no convincing belief on the part of traders i guess that is more in line with your view yeah, i mean, look, caterpillar hangs in there and really incredible because you think thats something software is a steam shovel. Those guys are incredible. Deere is just doing amazingly well and then that whole other group like newcorp this is steel. So if youre going to have manufacturing, youre going to use a lot of steel the other way you have people checks but one thing, did you see the piece about when you gave them checks they paid down debt i did werent they supposed to go Credit Ratings actually went higher we have nothing to do i went to a restaurant and two tables this weekend and it was pretty good food and chef serves it and it was dynamite and you look around and youre like, where is everybody else . Were you inside i was inside. You ate inside . I ate inside. What happened place was clean, two tables within the first section and people within eight feet of us i felt good. You like a lot of other people, jim, youve moved out a little bit on your own risk curve. Obviously, i know youre basing that on rates, positivity rates, exactly where you are. Any moment in that particular area but everybodys moved out a bit on the risk curve. Have you used the pixel lap corp test that my wife takes constantly you send it and fedex and they say youre fine. Wow. We felt with all this were going to go out. Carl, guess what we were in new hope, pennsylvania and almost everybody had a mask and if anybody didnt, my wife started going, but i tested negative worked every time. You see people pull out masks suddenly we have to do our part carl, we have to do our part masks save lives the next question, jim, is whether or not youre willing to go to a movie. Exnew york city this friday as new york state opens up theaters and amc says theyll have theaters open in 44 of 45 states of which they have operations. I love adam aaron, old friend, ceo of amc i dont think im ready for movie. Maybe like i wear a shower cap, you know they clean them out but, no, movies are right up there with cruise ships. Everything is cleaner than it once was the new york city subway have never been cleaner and airplanes have never been cleaner. Everything is getting cleaned. Why do i have to go to the movies, i have netflix remember you would go to the movies and your feet would get stuck and popcorn in the seat. Then i started going to the movies and getting dinner served you have those movie theaters where you can have a couple margaritas i like those. Steak i was just getting into that. But, carl, the movies, what movies are you going to see, i guess, becomes the key question. Who is releasing a major blockbuster right now . None that im aware of if anything, theyre going the other way, right we have another i think snow from disney, again, going to streaming. So, i think, again, its sort of restaurants, you can open but not be able to get the chefs in and not be able to get the consumers in this was a sweekend that people were out and went to restaurants. I think people felt a little more emboldened. At the same time, the numbers are so horrendous and i think this is becoming ilogical. The left says the case numbers are amazing and over 38 states over 100,000 and the right says, look, the death count is not bad i dont think this should be idiological. I think this should be about therapeutics and about the vaccine. Too many people think, you know, when the vaccine comes were going to be fine this bridge, david, between now and the vaccine where i think that you may have to, look, i didnt go to the eagles game this weekend and it wasnt because theyre not good i didnt and nice comeback i didnt go because i was fearful. You didnt want to do that but you went and ate inside a restaurant theres 5,000 screaming maniacs versus three people in the restaurant besides me. I think everybody makes their own decisions. Youre making me feel like i didnt break the law were not all sharing the same facts you went the day it opened. I did eat inside once i also ate outside saturday night and it was so cold thats going to happen. Thats going to get tougher to do. When i look at the restaurants open outside in the month of november, im going to say where was the stimulus 14 Million People involved in hospitality that stimulus business because we locked two restaurants. I mean, you know, this is generac and youll have outside eating its not working but the republicans and democrats are really thinking about it theyre getting it done. Not. Jim, all good points. And part of the trouble in evaluating how the winter is going to go. Take a break here as jim and david said well talk to the conoc chief on this deal after the break. A lot of price increases for stocks post earnings this week chipotle and cat in there, as well well get to all that when squawk on the street comes back for skin that never holds you back dont settle for silver 1 for diabetic dry skin 1 for psoriasis symptom relief and 1 for eczema symptom relief gold bond champion your skin strong debut for apple new iphone they sold more iphone 12 models in the first hours of preorders than iphone 11 sold in the same period last year Tf International said apple sold up to 2 million in the first 24 hours up from 800,000 units of the 11, jim. Sort of runs counter to what weve seen long term and that is a declining number of, say, google searches for the new phone with each cycle. Look, i remember lining up to get an apple 11 at the old gm building in midtown and just finally giving up and then going up to the one on madison and finally giving up and saying, you know what, ill get it online and that was the 11 which, frankly, was something that people felt was just a placeholder. This is not. This is a revolutionary phone. 5g everybody i know who wants to get this is really kind of a apple 7, 8, 10 im one of the few people with 11 but you can get a Good Exchange and i think that this is one of those where the analysts, the long knives were out once again. A goldman guy has to sell one and ill advised and given lukewarm piece that was the belief and that is just not correct. Yeah. Listen, im more focused on what this means for 5g. The fact that youre going to start to put in handsets in peoples hands and start to use a network that is still under construction by our three Major Companies and eventually well have enormous impact right when you think about what occurred as a result of a move from 3g to 4g or lge and all the Different Things enabled in terms of Business Models and what this will mean. Not today and not even tomorrow but fairly soon in terms of the years ahead. What it means for 5g far beyond the phone itself, jim. Obviously, the enterprise comes first and then so many Different Things that are going to be enabled as a result of these networks where we talk about it so often theyre just so fast give you an example of latency. This weekend i have the directv. Ive got the package for football, the sunday ticket. And every time you were trying to get on it was slow, it was late, it gave you the circle of death and whatever you know, 5g, according to the 5g, thats over. Thats over. Its the same as watching something at home with cable and i think a lot of people want to be on the go and watch and just kind of know it doesnt work thats going to change with 5g one of the reasons why i want the 12 so badly. You watch. Youll get one then yes, i will i know you. You want it badly, youll get it. Coming up Conoco PhillipsCeo Ryan Lance the deal of the week or even the month for a little less than 10 billion of conoco stock. Keept re ihe when i was in high school, this was the theater i came to quite often. The support weve had over the last few months has been amazing. Its not just a work environment. Everyone here is family. If you are ready to open your heart and your home, check us out. We thought for sure that we were done. And this town said not today. Working within amazon transportation services, i really saw the challenge of climate change. We want to be sustainable, but when you have a truck covering over 300 miles, or you have flights going hundreds of miles, its a bit more challenging. We are letting the data guide us to the best solution. Its inspiring to try to solve a problem that no one else has solved. Thats super exciting. Oh, yeah, youre over here lets get to aadjusting. This is how close the tables were when we went inside just keep talking anything else you want to share about anything my spit how about a mad dash. All right now, get this. A company that a lot of people thought they were on the last legs the l brands, Victoria Secret they had the deal with sycamore that fell apart wasnt that incredible . Goes from 42 to 50. Jpmorgan ceo is confident in one of the talks they had of Sustainable Low 20s operating margin and thats 50 bath and body works. People want soap see, its a pandemic, david. People wash their hands a lot more wouldnt you want to ebbe in th soap business during a pandemic . They have all sorts of different soaps. Its a winner. You should get on board. Bath and body works was never part of the original deal. How about Victoria Secret. I dont know. Thats not where it is. Gap Stores People talking about athletta and old navy doing well just kind of putting aside what happened at the mall overall . Shopping center and got cut really badly as 5 yield yeah, this is one that within the mall is doing quite well because it was written off right grab a bite to eat after . Sure. Inside or out . Out its nice and warm today. Its like 70 degrees thats the first thing you have to do now if youre ever making plans. Check the weather. Is it going to rain . Whats the temperature what is it going to be like. Have a steak tonight. Very nice very nice. We have an opening bell for you five minutes away as were just Getting Started on squawk on the street. Conocophilips to acquire conchra resources. The election is two weeks from tomorrow and the street today remains focused increasingly on what theyre calling a blue wave. Today jpmorgan that writes Market Expectations are set up for a biden win and a fiscal package in early 2021. Fears of an electoral process that could last weeks are aba abati abating. 26 million ballots are already cast and we have early voting begin today in states like colorado and florida i decided after 2016 that its a suckers bet to talk about whos going to win we dont seem to get the adequate polling results i think that a lot of the what looks like the wave does not necessarily add up to the states that need to go which way. I think you have to invest in the fundamentals i think you need to invest in the stimulus thats a suckers play, too. What you have to think is housing is in bull mode and you have some manufacturing that is coming back because china is in bull mode. We have situations that are just positive and where you can buy stocks and, of course, the biggest is software and cloud and as long as were not overwhelmed by ipos, david, we see where the action is. Its in the dominant American Companies that have figured out how to make money off the cloud. And are growing incredibly quickly and being rewarded for that with multiples to sales by the likes which we havent seen in 20 years. We may never have seen something 100 times. Theres at least a Dozen Companies of high quality. Well, there we go lets get ready for the opening bell here on this monday as we get ready for a busy week. Companies report in the next five sessions, including eight dow names and well watch stimulus