Yields the big story yesterday. Again, those yields came down as we looked at a jobs market that was weaker than anticipated. This year the 10 year is higher. The 2 year is just above 5 . Well be watching this very closely. Yesterdays story on crude oil prices, investors are worried that higher borrowing costs could dent. People worried that maybe those higher prices are starting to impact demand. This morning, you can see wti at 81 81. 30. Meantime the House Speakers gavel up for grabs for the second time this year, congressman jim jordan and Steve Scalise considered frontrunners. Theyve been making pitches to colleagues. Now, two house members floated former President Trump as a potential speaker, a position that doesnt need to be held a house member, donald trump currently the defendant in a trial. Asked yesterday while attending that trial whether he would agree, he would do himself truth social posted a photo of him holding the speakers gavel. Well talk to bill daley about the race for speaker. Watching a competing network yesterday, somewhat friendly toward the former president from time to time. Twopeople, female anchor said, when they did this story about trump being speaker, i wouldnt wish that on my worst enemy. Meaning . Speaker of house or meaning cthe other anchor, what . She said, oh, no, i meant thats such a bad job i wouldnt wish it on my worse enemy. I wasnt saying, the guy went, okay, just want to make sure. Still on point. Very telling. Very telling. Healthcare workers at k kaiser what do you make of the gag order on him and these rants that he goes on and when is he going to be honestly thrown in prison by the judge. Do you think thats a good idea . Once again . Law and order doesnt matter. Once again that adds to his martyrdom in america. Sure, at some point you cant run around as party on either side and say you care about law and order and allow these things to continue. Its obscene. Its on scene. Its disgraceful. Theres not freedom of speech when youre in the middle of a case. Thats true. The attorney general did, the last attorney general didnt bring a case, this attorney general said, elect me because i guarantee you i will my entire job will be about trump and then it happened. It seems like its it does seem like if it wasnt trump and maybe if he wasnt running again the judge ruled on that. Trump was saying 80 of the charges were past the statute of limitations. Theyre not. The judge said yesterday thats not the case. He said hes going to appeal on this. Thats not the case. He said, i dont know anything. Theres a very funny i dont know if its on tiktok. Someone has done a curb the enthusiasm thing or seinfeld, they introduce each person and they have the little chyrons. Moving on healthcare workers at kaiser are expected to strike for a second time. Workers in washington d. C. And virginia are expected to return to work after a planned oneday walkout, while strikes in california, oregon, colorado and Washington State are expected to continue today and tomorrow, acting u. S. Labor secretary has met with both sides, her Department Said shes working to try and help reach a resolution. Now to the latest on the auto workers strike, negotiators for uaw and ford signaling progress. Amid talks that were described as really active, according to a report that said that the talks have been active with the other auto workers, uaw president shawn fain is expected to update Union Members tomorrow. With the targeted strikes reaching their third week. Later this hour well hear from the head of auto parts supplier and Industry Group about the impact of that strike the uks anticompetition regulators are launching a new probe into microsoft and amazon. Whether the Cloud Services made it difficult for businesses to switch cloud providers. The media watchdog there stated that the process, started the process referring to inquiry for further investigation into the competition and market authority, remember the cma, we heard so much recently about them, theres nowhere to really appeal. The head of ofcom told cnbc it wasnt clear that competition was working well in Cloud Services. Clorox disclosed that it was a target of a cyberattack. Now the company is warning that the disruption will have a major impact on its sales and profits in the quarter that ended last week. It expects sales to drop 23 to 28 . Clorox said the cyberattack is now contained but the damage continues to hurt production. Bloomberg reported yesterday a hacker group is suspected to be tied to the attack on clorox, the group also connected to recent casino attacks. Its very good at calling into helpdesk operations pretending to be an employee to give them enough information to hack into these systems. They say you shouldnt pay the ransom but if you dont youre looking at sales down 28 roughly. They ask you for money in bitcoin. Says a lot about a lot. It does. You still can trace it. Its just easier to do it that way. You can still figure it out. Thats the big ransom hack. I didnt like the morning show the latest version i havent watched it. The plot involved i dont want to know the plot. Can you talk him down . Is that possible the ransomware people k you negotiate . Maybe you can. I dont know. When we come back, well talk about this big move in treasury yields. Later, congressman Brian Fitzpatrick will join us on the speakers race and what comes next and youre watching squawk and this is cnbc. I sold that. And you can manage it all in one place. I built this. And it was easy, with a partner that puts you first. Godaddy. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back. Treasury yields pull back from multiyear highs following weaker than expected jobs data. Uncertainty remains over what feds next move will be over the fight with inflation. The panic attack, is it here . Is there a lot more panic to come . Andrew, this is clearly a panic attack whether theres more to come or not its not clear and the reason is, it all happened suddenly, there was no development of fiscal deficit, on top of that, weve had pressure from inflation and so its not as if the bond market has some new information. But the panic attack came i believe because they essentially found that the fed was not responding to the increase in Interest Rates, there was no statement being made and suddenly they piled up on each other to sell the bonds and it pushed the yield up, but that brings its own end, andrew, after a period of time because this is going to cause a shock like ive been talking about your program, a clear development my particular target is the banking sector, youre going to see more flow out of regional banks, but today, six month treasury bills crow can get 5. 6 . No reason why you should be keeping your money in regional banks. Thats going to happen. The second is, youre going on have to banks cut back on lending as a result of all of the regulatory checks. So i think if you asked me whats the absolute, absolute peak right now, andrew, id probably say 5 but i doubt well even get there. What do you think, if something is to break, what is it first . The regional banks . I hh crisis but much worse than in march. Second it spreads to some of the larger banks, larger Bank Share Prices have been under pressure. And what happens with the Pension Funds. Remember, the uk Pension Funds in september of last year have an Interest Rate shot up on the bond yields, had massive losses, so if that happens youre going to have public Pension Funds in the United States lose money, they have to go to the treasurers of different states asking for higher taxes or reducing the benefits of employees, thats not acceptable. Third shock the commercial real estate crisis which we have been talking about is likely to get even worse with the fact that the bond yields are much higher and various Interest Rates are going to rise as well. You told us everything bad that could happen. Is there a scenario in which what you have taken place over the last 48 hours or the last somehow reverses itself in short order . You ask for good news, andrew, the good news comes anything like a, will cause the Federal Reserve to shift. Increasing Interest Rates and quantitative easing, switch to quantitative easing in march when the banking crisis came and remember we talk about the 10 year yield being as high as to was in 2007 and we know what happened that year, that caused a great financial crisis to begin, so all of those you just told me you were going to tell me the good news. Thats the good news, you have rally in bonds and you have rally in equities as the fed comes to the rescue and inflation comes down, but something has to break in is system before you get the good news. The good news is something thats going to push the market down, to this point every time yields go up the stock market drops, equities drop because there are concerns about higher Interest Rates. Under the scenario youre describing Interest Rates would come down but not for a reason that the market would like, thats your definition of the good news . It would put pressure on stocks in the short term, becky, but if you had the Interest Rates come down, and if the markets realize that fed is on their side now, rather than fighting inflation, thats going help equities. Think about march of 2009, we had, again, Interest Rates came down from december 2008 for the first two, three months of 2009, march 2009, march 9th, with the bottom for the s p index and after that we had rally taking place in equities, so thats what it can do for you. Theres a top story on the wall street journal right now online, rising Interest Rates mean deficits finally matter, thats an even bigger issue in terms of the government and the larger picture. How do you think that plays into it and the potential Government Shutdown . Is this something thats much more specific to the Banking System and the like . Well keep talking about it for a while, andrew, but right now, thats important the fiscal deficit is large, thats partly what prompted the Interest Rates to go up and Interest Rates going up in turn will cause the fi fiscal deficit to worsen. If you have a shutdown of the government on november 17th the next deadline date, and if theres a total grid lock in government after that, that might help bring some of the deficit down and that might be a positive as far as Interest Rates are concerned but it doesnt happen by itself, second thing thats helping in terms of the deficit front is that you dont have a credible alternative to holding u. S. Treasuries on a global scale, the euros are not yet big enough, tso if you dont like u. S. Treasuries theres not much elsewhere you go. You left us with a lot to think about so early many morning. Enjoy your time across the pond in london. When we come back, well give you a sneak peek at this years hot holiday toys, this is all coming as we approach the Holiday Shopping season, thats right, its october, but people are getting ready for it. As we head to the back right now, check out todays big consumer statistics, 69 , more than twothirds of consumers with Student Loans say theyre cutting back on spending. Thats according to keybanks Consumer Survey published this career. The resumption of loan payments remains a significant headwind. Clothing, restaurants and travel where boowrrers plan to cut back spending. Squawk box will be right back. Tending hives of honeybees, and mentoring a teenager your life is just as unique. Your Raymond JamesFinancial Advisor gets to know you, your passions, and the way you help others. So you can live your life. Thats life well planned. [soldier] take a look at this theyve left us a gift. [soldier] i think we misjudged them. I love horses. birds chirping [soldier] we should open the gate. Lets see what charlotte thinks. [narrator] at crowdstrike, we monitor trillions of cyber events to detect threats and prevent breaches before they happen to keep your business from becoming history. We stop cyberattacks. We stop breaches. We stop a lot of bad things from happening. Crowdstrike. Protection that powers you. The lor barista coffee and espresso system. Now brewing peets coffee. New natures bounty hair growth. Clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex. Conquer hair thinning. And fall in love with your hair all over again. Only from natures bounty. The countdown to christmas is on with just about 80 shopping days left. Were counting days now. Will the retailers be able to count on toy demand to get shoppers online . A look at this years toy trends. Ive started shop zblg me, too. Because i dont want to be stuck at the last minute. The holidays are around the corner. This also comes at a time when consumers are fighting through compounding economic pressures it seems like theres another one every day, while total toy sales are expected to fall year over year something consumers find to buy is toys for christmas. Inventory is solid. Toy prices are down about 2. 9. Over last year, many of the hottest toys this season ring of nostalgia, the Barbie Dreamhouse is on many hot toys list, runs about 200 bucks, though. Nintendo super mario game is out soon. Todays updated versions will pop up on many lists this year. Then also newer toys like the lol surprise magic flier. Walmart and target have increased their shares of toy sales. Macys had success with its toys r us shop in shop. Everybody is trying to get as po of the toy action and bring consumers in. When toys r us went under and fao schwarz shut its doors. They came back in iterations. Now its much more fragmented. Over time, walmart and target started to grow their share of the market. Its a pretty fragmented industries. There are still a lot of mom and pop toy stores. Lot of independent buyers that are coming to look at toys to buy for the next season. Tougher to figure out what the hot toys are. With the exclusive retailers have, if they have the lol dolls in certain color and your child wants it you have to go to that retailer. It makes hard to compare. We ran through, which ones are popping on a lot of them and the super mario game is out soon, getting a lot of reviews and thats popping up on a lot of wish lists. Coming up, bill daley joins us next on the turmoil in the house and the candidates so far that could be the next speaker. As we head to break a look at s p 500s winners and losers. In the u. S. We see millions of Cyber Threats each year. That rate is increasing as more and more businesses move to the cloud. So, the question is. Cyber attack as cyber criminals expand their toolkit, we must expand as well. We need to rethink. Next level moments, need the next level network. [speaker continues in the background] the network with 24 7 builtin security. Chip . At t business. Circulon with scratchdefense. Built from three layers of nonstick to withstand over 350,000 metal utensil scrapes in laboratory testing. 130 times longerlasting than the competition. Get Free Shipping at circulon. Com this is Spring Semester at fairfieldsuisun unified. They switched to google tools for education because theres never been a reported Ransomware Attack on a chromebook. Now theyre focused on learning knowing that their data is secure. good morning. Welcome back to squawk box. Checking futures right now, you can see were under a little bit of a pressure, after a kind of a wild day yesterday. It did recover. People watching the 10 year yield very closely and some movement in the equities market. Some swings yesterday, finally closing higher after 4 out of the last 5 days prior to that the dow had been down and i guess is even for the year, down a percent, still slightly down for the year. Relatively flat to just down. Watching pretty closely after having some big gains earlier. Well continue to see. Republicans are hoping to hold the speaker vote early next week. Our next guest said whoever the next speaker is will most likely have to shut down the government to prove theyll be tough in that role, joining us mow is former white house chief of staff to president obama, bill daley, whos also vice chairman at wells fargo and bill, 50 Different Directions i want to take you not only politics, whats happening with yields, the banks, lots of things happening. Lets start with whats happening if the house right now. Kind of reminds me of the movie talladega nights, ricky bobby is running around screaming anarchy. The vote will be going to be next week. Steve sc a, will, ise and jim jordan, jordan will win. I bet on jordan. He has to right before thanksgiving do what mccarthy wouldnt do is shut down the government, or cause the government to shut down because the deal theyll want with biden and the senate. It comes at a time where the economy is lots of different messages going on about how strong it is, getting stronger or getting weaker, the rates, a shutdown that could last for a while would be disruptive to the eco economy. Whats going on . Everyones got an opinion and nobody really know, the rates as the fed has said, theyve been very clear, rates will continue to go up, we can all argue and everybody does about how much more but i think theres no question this will be additional rate increases the economy is o