tv Squawk on the Street CNBC November 10, 2016 9:00am-11:01am EST
>> i know. but nothing's happened yet. >> the election happened, joe. >> yeah, but january 20th the same guy's there still going to be there for another, you know, how long is that? >> it's a discounting mechanism. it's a forward looking thing. >> not that i'm counting the days. >> and the minutes and seconds. >> make sure you join us tomorrow. "squawk on the street" is coming up next. ♪ good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange. what a morning we have for you. david faber is at the liberty media investor day in new york city. he's going to have an exclusive with chairman john malone coming up. we'll talk exclusively with prince al-waleed bin talal. best week in five years on hopes of trump's administration. europe is slightly positive, that 10-year yield is near the
10-month high. mashlgts are chasing histories this morning. dow's within 79 points of an all-time intraday high, jim, looks like we might get it closer to the open than some thought. >> it's interesting. it's the makeup. the makeup is extraordinary. it is completely trump-related. this expansion in the banks is not just because of regulation, but it's also because of interest rates going higher but also because people feel loan growth is going to be better, people feel lower taxes. so that group is a leader. that group has been -- when that group leads, carl, that's a freight train. it's always been a freight train. one remembers the '91-'92 come out of recession led by the banks, led by bank of america, what you saw there was a juggernaut. and those who said, hey, that can't last. well, they're not in the business anymore. >> everyone's weighing in. icahn with wapner yesterday. donald trump this morning saying he sold all his gold. he's long the dollar. long materials, short u.s. bonds, short italian bonds.
basically saying we can get a jolt of 4 plus gdp and then maybe rates bring it down -- >> it's so interesting. we haven't heard terms like locomotive in a long time, but this is all locomotive, u.s. can be the locomotive again. by the way italy i find extraordinary. done a lot of worken italy, i believe once they reorganize their banking system, i'm not as worried about the referendum, the idea where those bonds are, that may be the greatest short. now, valet, think about caterpillar, bhp, caterpillar broke out big yesterday. what i'm seeing, carl, is a pile-on on what was considered to be the worst stocks in the world if hillary clinton were elected president. so you've got this really unbelievable base of shorts. and it turns out there's no stock, no supply. i want to go back to trading desk for a second. i happened to love trading caterpill caterpillar, this is a long, long time ago.
but you would say, listen, that you wanted 200,000 caterpillar, 3 bid for 200,000 there's no sellers here. there have been sellers in the 70s. goldman sachs put a short on it -- actually a sell on it in the 60s. there's no sellers. >> right. so you're saying it's the inverse of what those shorts had been thinking if clinton had been elected. >> exactly. >> on repatriation, tax reform, infrastructure -- >> they both wanted but there was no supply. now, we had lundgren this morning talking on squawk and some background work i've done on macy's. they generally believe the consumer is going to come out of wherever the consumer was hiding. the cfo of chipotle, he thinks the consumer is going to come out. i've spoken to a lot of ceos in last several days and they expect the consumer to be there for the holidays. look at kohl's, yeah, did they do the number? no, what matters they're buying
back 25% of the company. 20% of the company. i mean, they got a lot of cash flow. so what's happened is you have these areas that had been deep in the freeze, the celgene 100, 105, isn't the government going to say we're not paying this much for -- 17% grower. suddenly 17% grower. >> hello. >> hello. i want that. >> now, to get the whole picture, is the market discounting wild cards, foreign policy, temperament, these protests we saw in several cities last night? >> the market is completely overriding any of these concerns. but i would point out in terms of the events that i've seen in my life that i wanted certainty of, i wanted an election, and i wanted closure in the election. five days ago the idea that there could be election and close election is ridiculous. not only the uncertainty, but then the contested as president trump goes -- as non-president trump goes after every single little county. you know, we had this kind of --
that event occurred and the people who've been on the sidelines forever just waiting, they have no reason. so now they're going to have to chase. now, do the numbers from caterpillar go up? if you have a trade war so to speak, my friend dan dimico used to run newcore he said we have to get level playing field. if the chinese party decides to come out and play right now, and they see what's happening in america and say they don't want your goods, then yeah, i think the rally would be too advanced. but i don't think it's going to happen. stan druckenmiller made a lot of sense to me this morning. >> one last question, i've seen a lot of comparisons, about a reagan style move from the left to the right ushering in a bull market of whatever duration. in in reagan's case it took 18 years, took long time to get there. >> i was a big fan. he wanted to get the government off the backs of the people.
that was his phrase. everyone in america knew government off the backs of the people. president-elect trump did not use that phrase, but i think everyone in america thinks who voted for him thinks he's going to get the government off the backs of the people. that was so popular. >> icahn's line yesterday was, you've got to feel like the government is not against you. >> bingo. you got it. all right. markets looking at all-time highs following surprise president-elect trump win. do we go to david faber? >> david, you got something, right? >> i'm here. hey, hey guys. >> do you want to do some news before we go? >> i know you want to get to prince alwaleed. i'm here at the annual investor day for liberty media which means an annual interview with john malone, the chairman of that company, where we talk about a broad range of issues impacting the broad industry of media and, well, so many other things. but of course front and center
is the election itself. mr. malone, dr. malone a self-avowed libertarian hence liberty, as you might expect and certainly not one who loves regulation or taxes. here's what he had to say about how he views a trump presidency's impact on both the economic environment and the business community. >> since the republicans now effectively control congress and the presidency going forward, i would expect to see fairly quick action on tax reform, on regulatory reform, on obamacare. those are the three things i think if they get addressed quickly and rationally could be very stimulative to the economy. and the markets. and there seems to be broad agreement between what trump's platform look like and what paul
ryan has been espousing. >> and, guys, of course as you well know you just were talking about it, that seems to be the signals the market is taking right now at least in terms of how it's treating many of the companies that would benefit from significant tax reform. malone making the point, well, how many companies want to leave, but how many have you ever seen want to come to the united states? simply saying we have to do what we can to make things more competitive on the tax front. and, jim, that is already played out yesterday and appears to be playing out today to a certain extent. that expectation of quick action as malone said on those three things. >> absolutely, david. you're right. the quick action is like today, i mean, this is the fastest i've ever seen a guy be in the white house who's not in the white house. he will be there today speaking to the president. thank you so much, david. let's bring in kingdom holding company, this is great, the guy we want to talk to. chairman saudi prince alwaleed bin talal in a cnbc exclusive. thank you so much for joining
us. how have you been, sir? >> it's a pleasure to be with you. thank you, i'm fine. >> i've got to ask you, you've had dealings with our new president-elect. i think they've kind of been up or down, but i want to know what you think? we've got a big healing process trying to do here, where are you right now with donald trump? >> well, first of all, i did congratulate mr. don trump publicly by sending a tweet to him, it reached him last night through his daughter ivanka and reached him through our friend. and already arranging for me to meet mr. trump, the president-elect, imminently in somewhere in america. so i think things are very okay right now mr. donald trump president-elect of the united states. >> do you think he is a man who can spur growth? we have lots of people who are talking, including stan druckenmiller, very smart fellow i know you know him, talking about growth we haven't seen in a long time. is this realistic, or is this a
pipe dream? >> well, the fact mr. trump is coming from the business community, the fact that mr. trump right now has the majority in both houses, the house of representatives and the senate, i think there's no excuse at all for the republican party right now dominant in the united states and deliver the growth that is expected from them. >> okay. your highness, i've got to ask you, you said you congratulated the president-elect through a very interesting way which you wouldn't have done four years ago, which is twitter, you have a huge position in twitter. some people feel that twitter got this president-elect elected, are you in twitter because you think of the power of the brand, because of what it might mean in terms of a societal different issues, or because this may be a potential fabulous takeover target? because you have identified some incredible takeover targets and been dead right, sir. >> all the above is correct. i believe that the best days are yet in front of them and i
believe that what mr. jack dorsey is doing, we are beginning to see early indications of success. we are beginning to see the growth in use, which was very much requested by the market. and i believe the coming quarters will continue to issue the growth that is needed and expected from twitter. >> but just quickly, i don't know if you saw the announcement that anthony nodo just put on twitter about the buzzfeed partnership. 6.8 million viewers for their election special. do you like that course of action, your highness? and is this what you want twitter to be doing more of? >> well, look, twitter is on track to achieve what is expected from it. and all these moves pull into that direction. you know, having the new association between twitter and many of the sports leagues like nfl and others is going to
really help in increasing the number of mus. as i told you we are beginning to see early indication of the success of that new strategy. it's going to take some time, but it's beginning to happen. bit optimistic towards twitter reaching its ultimate goal. >> your highness, beyond twitter we're going to open at record highs here in the states. do you believe u.s. equities are expensive? >> well, you know, when i look at certain companies, the united states or anywhere else in the world, we have to look at the overall market. we target certain companies that we like or dislike. so clearly certain companies in the united states are overpriced companies, but some other companies are not overpriced. so you cannot just use shotgun approach and say everything is overpriced. so selectively there are some companies that are overpriced, but on the same side also there
are some companies that are not overpriced. >> when it comes to donald trump, obviously we're dealing with the divisions here in the united states. we had some protests in cities overnight, but also we're told, i mean, the narrative's been written that the global reaction is severe, that we don't know how putin will respond, we don't know how nato will respond, we don't know how china will respond. for two questions, how will you respond? and how do you think global leaders adapt to his presidency? >> yeah. well, let me tell you, i mean clearly we have seen the markets reaction when it was announced that mr. donald trump was going to be the president-elect of the united states. you see the markets almost crashing all over the world, but clearly when people began digesting the news and when mr. trump went out and gave some conciliatory messages to the world and to the american people, clearly we've seen the markets reaction became very positive and it made u-turn. as for me personally, though i
personally have spat with him but clearly when mr. trump became more conciliatory -- and actually today if you look at the abc news tweet around 6:00 in the morning, it says that he took out and deleted all his tweets related to the banning of immigration to the united states, so this of course was my main problem with mr. trump. but since this thing has been deleted, so i have no problem at all with him and i'm happy to interact with him and i believe this will be the view of many people in the world leaders in the world, whether it's china, middle east or europe. i think candidate trump for sure is not like president-elect trump and then president trump. so i think he's progressing in the right direction. and i hope and i believe that once he takes the reigns some time in january, i think we're going to see all the skirmishes
and all the misunderstandings that were related to candidate trump behind us. >> you talked about you had your doubts. i think we have a full screen of the tweet you sent out last december where you were critical. here it is. you are a disgrace not only to the gop but to all america. do you regret that now? >> oh, for sure i don't regret it. at that time when you had candidate trump attacking muslims and saying muslims were going to be banned from getting in the united states, not only was i against it, the whole world against him, but clearly right now when president-elect trump retracted this talk -- president-elect trump is now back on track whereby he deleted all these tweets that were offending for the 1.3 billion
muslims, clearly we're back on track. i think there's no problem with trump at all. actually, we need -- to trump also. if he wants me to meet in the plaza i will do it also. >> your highness, i think we can broker that. i'm sure that mr. trump is well aware of what you're saying. now, mr. trump at times has told me he's no fan of opec. your highness, where do you come out right now in terms of where oil is, role of opec and the possibility that perhaps relations can be not as strained with mr. trump? >> well, you know, between candidate trump and president trump, i think now we have to hear what president-elect trump says because our comments yesterday say he doesn't want to be offending any nation, he doesn't want to be creating any
issues, actually when our king talked to him, discussion was excellent and very amicable and very friendly. so, you know, i would like to really pass on this issue whereby trump was, you know, still running for elections and he was really doing things for internal political assumption in the united states, but right now he's president-elect. and i would like to hear from him as i heard when he accepted the presidency just a few days ago -- actually yesterday, and looking forward for more positive news from him on all fronts. >> your highness, i tell you, this is staggering when i listen to you, but i've learned a great deal from you. and you are a great educator and teacher. and i want to ask you about stocks chr stocks, which is our common ground previous to this. two stocks, one apple with mr. cook. and two, citi group with mike. both together i thought were terrific quarters. a lot of people felt they
weren't good enough whachlt is your thinking about those two stocks? >> clearly as for citi, citi is definitely on track to achieve better results. we're seeing right now how the market reacted very positively to the election results. clearly showing leadership where putting citi back on track. and i believe now they're going to be a money making machine. and clearly with the rising -- potential of rising interest rates environment in the coming months and years, this will be a very luk crative for them for ci to reach the $60 or $70 price. and remember citi is one of the very few banks -- book value. so reaching new highs is there. for apple, apple delivered very good results, but clearly the market is demanding a lot more from mr. cook right now. and clearly mr. cook who is very good friend of mine, obviously, has a lot of things going for
him. i mean, you see the problem with samsung. and i believe that what went wrong with samsung could potentially be positive for apple in the coming two, three quarters. having said that, clearly the market is expecting more things from apple. clearly issue of having this driverless car is on the table, but that's going to be years from now. so i think i encourage mr. cook and apple to keep renovating and keep updating and upgrading all the units, whether it's being the phone or now the gadgets that they have really to be reflective of the demands expectation from them. >> your highness, you have a impression and reputation for understanding media including the fact you own a ton of time warner. do you sell time warner knowing president-elect trump does not want this deal to go through with att? or do you say, you know what, that was campaign talk and
perhaps this is one you want to hold on for the ages because it was a brilliant move and att gets it? >> no, i think the issue of the potential merger acquisition by att of time warner is really going to take a lot of -- it's going to go through a lot of regulatory screening. this is really this beyond mr. trump. the deal may happen and materialize is not very high. you see the market did not go to what att's offering time warner. i understand vertical integration, but still, i think it's going to go through some difficulty by the united states. >> you talked about investment in twitter. we're looking at potential big ipo of snapchat next year. are you interested in investing in snapchat? >> snapchat is a very good company.
i know mr. evans very good friend to mine, actually came to saudi arabia to meet me. go public some time first or second quarter next year. >> do you use it? how do you know -- how do you filter between these up and coming promising platforms that will become a longstanding platform like facebook and eventually die out like myspace? >> no, i don't use facebook or snapchat, i only use twitter. i'm very bias to the companies i invested in. >> i want to go back to twitter because you just brought it up again, your highness. some changes last night, adam bain, very popular, can i speak for you carl, great guy. anthony noto, old friend of mine from goldman sachs, jack dorsey also mentioned, is twitter the reason why you think new president -- president-elect, was able to beat all the other people in the party and basically took control of the
media through twitter? >> clearly the media and twitter specifically is really at the vanguard of being the tool to send messages to the people. having said that, i believe the main reason of mr. trump winning was really one word, element of change. i think people in the united states are fed up from the old system of having these two parties continue fighting, in america. i believe this is a syndrome not only the united states but in britain with brexit, we've seen in france how the national party is getting into the -- so this is really spreading the whole world. we've seen for example third party in the previous years, he was not able to win as a third party, but i believe the
brilliance and smartness of mr. trump is that considered one party being republican party this time and he took control of it. and he was the element of change within that party. and that's a reason why i believe mr. trump has won the republican nomination and then the presidency of the united states. >> a lot of his critics, your highness, believe that his election will bring in an era where american global leadership takes a hit, where our allies are less certain about america's commitment to protect them, they start looking elsewhere around the world to find out where they can get stability. do you think that's true? >> well, i think, to be honest with you, one of the concerns that the world leaders have against -- i emphasize candidate trump, not president trump, is that his -- they're not so sure about his commitment to all of
the international treaties that he had. for example, his nato allies not sure he's going to continue with them the same way. korea, i'm talking about south korea. in the middle east right now we want to be sure and get some words of assurance from him that he's going to continue considering the -- as being his ally. >> your highness, i've talked to you many times, listened to you many times, this is the most optimistic and bullish that i have felt that i have heard you speak about america, american equities. your exposure to american equities now, has it increased of late? do you feel even better about our stock market at all-time highs? >> look, i hear a lot of talk about the united states being down. not so much about united states be down, i tell you america will never be out. my friend warren buffett that no matter what happens, the united
states is number one and united states american people have confidence in your country, have confidence in your nation. we look at you as being the vanguard and being the leaders of the world. not only politically, politically, economically, financially and all over, even militarily. so, yes, sometimes the united states come down but every time come out stronger, stronger than it was than that situation. >> your highness, i have to ask you about commodities, oil has been stuck it's going down, considered to be oversupply. other commodities are going up. china's using a lot more oil. seems like the rest of the world is trying to slow down fossil fuels. where is oil going? >> well, we are seeing very clearly that now shale oil united states very specifically has the place saudi arabia as being the producer of oil. clearly we are seeing good
equilibrium and balance somewhere of the 45 to 50 range. the shale oil production becomes more feasible. anything above $55, $60 range. so right now we're seeing this thing opening around that number, which really somehow good for the producers and good for the consumers. having said that, clearly with the technology advancement in shale oil, clearly the price of production will go down. so, you know, against the price of shale oil will be because this now seems to be the deciding factor. as price of oil goes up, shale oil production increases. and as the price of oil goes down, many oil rigs rated to shale oil goes down. but for the time being and for the foreseeable future, a year or two, i see that the $53 to
$55 range seems to be feasible with the consumers and producers. >> one last question, your highness. renewables just overtook coal as the number one source of power generation. shell suggested the other day that we could see peak oil demand in five years. would you ever invest in solarcity or tesla or take a big bet on renewables? >> yeah, i just like to correct you. the article says 15 years peak of oil, not five years. there was an article in "new york times" yesterday. now, as for -- we are for example joining bill gates and many other businessmen in his oil initiative to look into alternative for oil. actually, just today i signed approval to proceed in investing with mr. bill gates, many companies that are going to join
him. to find some alternatives to oil. so there's no doubt this is the future, in that direction. and i think the era of oil may not be ending imminently, but i think in next 20, 30 years i think oil -- all oil producing countries have to begin very seriously thinking about alternatives to oil because the alternative to oil is becoming now a reality. >> your honor, thank you so much for calling in, prince alwaleed. again, again, i remind our viewers, you are one great person. >> thank you. >> that's a way to kick off a morning, jim. right? malo nerks malone. >> i have followed this man closely. and this is a man who has imparted as much advice to me about stocks as i have ever had anyone talk to me, geopolitical
too. he was quite optimistic. i heard him skeptical at times. this was remarkable. >> yep. yep. has seen his share of cycles with big money in stocks. >> yes. >> and american stocks. >> and i follow him on twitter. this is a nice change in pace in terms of healing. you want healing. this was big time heal. this was bigly. >> got a lot of pickup on wires around the world. meanwhile, the dow if you're just keeping track, looks to open near or above a record high. we're looking at 18,668 take us back to the levels we hit on august 15 9. the dow on pace for best week in five years. s&p on track for the best week since october of '14. again, on hopes you said it at the start of the show, jim, the makeup is all trump driven, trump policy driven. >> gloom busted. rather amazing. time of healing, i saw a terrific note from indra nooyi
yesterday, time for healing. i'm hearing it from many ceos. terry lundgren, we're talking about every single spectrum here. it's positive. don't want to go too crazy, obviously, but it's positive. >> speaking of positive, that's the opening bell and look at the s&p at the big board again, speaking of positive. the nyse congratulating the chicago cubs on their world series victory. over at the nasdaq hostess brands maker of twinkies, ding dongs, hohos, got listing over there. >> at a certain point i don't think we're going to go full hog on the old days, but darn, that stuff tastes good. >> tasty cakes or hostess. >> tasty cakes and pies, i'm a candy guy from way back. >> we know your general take on strong opens, gap's higher, jim. >> yeah. and i don't like them because it just shows you have a lot of
buyers coming in and they may not get the best prices. look for stuff that is not necessarily up, or that should be up a little bit more than you expect. but the main thing is watch these banks. because they have the potential to be the largest part of the s&p that could really lead us. and then look for tech that's down a lot, because i think -- you heard what the prince said. i think his analysis of apple was very good. samsung's a bit of a loser. maybe tim cook thinks he has to do more but he will particularly if we get some sort of resolution on corporate tax. he's the single biggest beneficiary, tim cook. >> one thing that did not participate yesterday was amazon, alphabet, microsoft, apple. >> yeah. >> why is silicon valley seen more friction with this rally? >> i think that -- >> it is by the way dow jones industrial average all-time high. >> i think that those interests were largely considered to be clintonian and i think there's a sense that among some people that mr. trump has long memories
and that he will not necessarily embrace these companies. look, i listened to the prince, you want long memories. those two battled like you wouldn't believe and already made peace through ivanka. look, take a deep breath, but i think that facebook's going to come back. i think that alphabet is very inexpensive on next year's earnings. i believe that when you look at a company like amazon, it's not going to be necessarily targeted. i mean, going to put a special tax on amazon? i don't think so. but that said, if you want to know what to buy, listen to what the prince said about citi. he's talking about it being 20 points too low. >> yeah. >> 20 points. he is sitting. i mean, he's got the lowest cost base citi in the world. and mike korvack, won the likes of one of the largest
shareholder. >> ibm upgrade today. >> what an upgrade, saying the number cycle about to kick in. i've been waiting. a very, very bullish call. now, let's understand that this company is a warren buffett company that he stuck with through 3.6% yield, but the amazing thing is negative revisions are now unlikely. carl, when i think of ibm, i think of negative revision. when you google negative revision, ibm comes up, maybe that's over. >> we're going to find out. followed by as jim says the banks, goldman, j.p. morgan. you have to take a moment here, jim, to give credit to people who said not only would the brexit result echo here in the states, but that the markets' response to brexit in the uk would echo here in the states. that's exactly what's happened. >> you know, my morning schedule is a little screwed up. i get up at 3:45, i do a little work, do some tweeting. and then i go and watch wilfred frost and sara eisen. i don't mean to put those two first, but they everyone joked about it this morning. wilfred joked about it we talked
brexit so much. they changed my mind. i've been trying to do either or the whole time because that brexit vote and the polls, well, just basically said pollsters don't know what the heck they're doing. and how discredited are they? thank you to wilfred and sara, a must-watch show because they own the polls and they got brexit, which means you got this. >> yeah. dow at an all-time high surpassing august levels. s&ps would have a little more work to do from here 2172. you'd be looking for something around 2193. >> well, that's why the banks have to do it. because the banks are so big. you mentioned pfizer. pfizer does have to be -- pfizer being emblemmatic of health care, they have to come back. there was a lot of positive commentary today saying health care is not going to get the scrutiny including pieces about might be able to raise price. that's something you never would have thought under a hillary clinton regime. so you need health care to do well, and you need the financials to do well. you don't necessarily need tech,
and i think tech's going to be the last. that's kicking and screaming. but let's watch adobe. i think adobe is the one that had the best quarter secondarily service now and then facebook. ibm not really regarded as a tech company right now. which i think is a mistake. it's cognitive, it's got maybe not as much social but anl ittics could be a new bell cow here if they get it right. >> david, the liberty conference is going to be a nice opportunity to see how corporate america is responding to this election. we've been getting these highly crafted written responses from microsoft and some others, but this is going to be people actually speaking outloud. >> yeah, it will be. we're going to be speaking to greg mcfay leader in the morning, tom rutledge, latered to, the man who runs charter. and of course when i'm here i tend to think about media broadly speaking, certainly distributors of which liberty owns 27% of one of the key ones
i just mentioned being charter. you know, guys, the cable companies, our own parent company included not really going to benefit from tax reform as much. they're domestic companies largely. they don't have any overseas cash and things of that nature. but the regulatory regime particularly at the federal communications commission is a key consideration of investors. and that's why you were also seeing the likes of comcast and charter strong over the last couple of days. broadband pricing for example, will there be the same stringent focus on that that there has been at the fcc under chairman wheeler. net neutrality, will that no longer be something as great of focus? so it is seen as beneficial for the likes of charter or a comcast or any number of other companies where the fcc has certainly had a significant role to play in terms of their ability to work within their market. so yet another area that we're keeping an eye on. of course we'll have an opportunity to talk directly to
tom rutledge later. going to want to hear a lot more what john malone had to say as well. >> david, be really remiss if i didn't ask about viacom, did give bad numbers,in ratings are anything they should be and stock doesn't go down? >> you don't go down, jim, largely because i think there is the expectation in the not too distant future the two companies are going to begin to talk. that's my reporting there. where are we? almost middle of november, you have the special committee set up, advisors set up, conversations are going to take place fairly soon in terms of will they be able to get to some sort of a deal. in some ways the weaker position that viacom is in argues i would say for the better chance a deal is that cbs is able to strike that would be a good one for cbs shareholders and is viewed, i think, jim, by viacom shareholders as being better than the current plan to stand
alone. >> i got to tell you, david, that's about as close as i heard there could be a deal. the cable stocks are going to the upside today. delayed reaction. i know you said they've been creeping up, but the fact is it almost seems like what the market's saying here is every regulatory organization that has been -- every administrative organization that had been so-called anti-business is suddenly going to switch and be pro-business. realistic? >> i think it is. don't you? i mean, one caveat in that is trump's comments about the att time warner deal specifically. i asked malone about that. you'll hear his answer also about the rationale behind the deal itself. but, jim, i think that's a fair point, don't you? i think that's the expectation at this point that regulation is going to come off and that is going to be seen as beneficial to a lot of different industries. and that certainly is playing out right now. but as we've said so many times,
we'll have to see what the actual actions are because the specifics behind the plans have not really been there in terms of what we've heard on the campaign trail. >> no, i agree with you, david. now, look, the banks have a lot going for them, higher interest rates going for them. but the banks, if you look at the cost structure of a bank, they have a lot of people who are not revenue generators and a lot of them are related to regulations. if you decide to change the regulatory regime, let's just say that the deadweight is what they would call behind their back may not be dragging the earnings so much. david, i'm talking about return on equities that could actually really be bigger in a trump regime. >> roes, as we know, we've talked about so often, will it actually pass the 10% mark in a significant way. i think we saw last quarter i think goldman delivered above that, but double digit roes, jim, you do wonder can you start to think about them as a more realistic target for financial services overall. >> david, we'll be talking to you in a few moments.
dow's up 136. all-time high. bob pisani's on the floor. good morning, bob. >> good morning, carl. and all-time high and banks leading the way here. we've got interest rates going up and the stock market going up. take a look at the sectors today. as you would expect, bank stocks broken now separately up 4%, health care, industrials, materials, this is the new paradigm here. interest rate sensitive stocks like utilities to the downside. the street is changing the mentality in the way they are trading, in the way they're looking at this thing in light of the trump victory. there's a couple ways to look at it, but let me show you the new trading mentality. one simple way to look at it is call a reflation trade overall. here you see some new highs in the financial, j.p. morgan, morgan stanley, zions, regions financial and keycorp. so the reflation trade is basically you're going out of internet, media and tech stocks and some telecom, interest rate sensitive. and you're going into energy,
and materials, and industrials and banks. call it a reflation trade, whatever you want. there's another way to look at it. put up the second full screen. you can go out of low volatility names, out of consumer staples for example and going into growth names, going into financials, energies and industrials. there's actually a way to look at this at an etf structure. you put up low volatility etf, it's called the sphb, against the high beta etf called splv, and you get very interesting trade. in the last couple of days that high beta, there's that white one, has been notably outperforming here. that's energy, health care, financials and some tech. low volatility staples. you see the markets already moving in that direction. we see some infrastructure stocks hit new highs as well here like ingersoll rand and martin marietta also hitting new highs, again on the whole infrastructure play. meantime, where are the hedge funds? interesting note out of jones this morning here. hedge funds have the greatest exposure to tech and consumer discretionary right now.
they're all down. they have the least exposure to financial industrials, that's moving up. my point is hedge funds may be once again on the wrong side of the trade. let me quickly point out how well some of the retailers are trading, macy's, kohl's and ralph lauren. macy's had a miss, but remember same store sales still are to the downside. good guidance mostly particularly of kohl's as well, but there's your same store sales compared to the same period a year ago. new highs for the dow jones industrial average up 162 points. carl, back to you. >> if i can stick with you for a second, bob. i was watching that great commercial that had you on for all the years. it really is a fabulous we have people put these ads together a great one, great one also for you, carl. is this the most enthusiastic you can recall a transition president? bob, you've been here for ages, do you feel it? >> yes. i do. what's shocking to me is how quickly the street has sort of changed the mentality. remember, jim, we had a rally on monday on a perception that
clinton was going to win. then we had a very brief downturn and a huge rally now on the perception that trump is going to be good for the economy. they've gotten their heads 180 degrees changed around here. and i happen to agree on these perceptions today on how the market is trading. but it's a remarkable turnaround in attitude that we've seen in just four days. back to you. >> same goes for bonds, bob, as we are about ten basis points from new highs for the year. let's get to rick santelli in chicago. hey, rick. >> hi, carl. yeah, it's preting interesting the formation of what will be the new political landscape is definitely fueling what was traditionally always deemed the growth trade. higher stocks, higher yields, higher dollar. and it's very fascinating to watch. it's happening very quick, very aggressive patterns. and you really want to watch year end prices and yields on many different instruments to truly get your bearings. look at a may start to the 2-year note yield, that's may of
2015. gives you an idea of how things have played out over the long term and how the 2-year has surged a bit. but really most of the surging is being done in the longer maturities. year-to-date chart of 10-year, 2.27 is where they settled. we're about ready to get into the 2-teens. of course we had huge amounts of congestion, the entire month of august at 1.50. boy, you talk about a concrete foundation for liftoff, that was it. and that was before the landscape change to add into this. gjbs, you know they're getting closer and closer to zero. for them that's actually a pretty big selloff as they hover at the highest level or the smallest negative yield since september. if we look at march of 2015 -- i'm sorry, of 2016 on bund yields, you can see they're hovering near 30. i think this is a very aggressive issue. watch the spread. u.s. is definitely the magnet now and everybody else is drawn to our move. if you look at a mid-june start
to gilts, they're hovering at 1.35. you can see that in context of the brexit on the left side. year-to-date of the dollar index that's kind of your third leg on this stool with regard to growth. people will talk about multinationals, but it is what it is, embrace it. they can conform to our music on this dance. and finally, you know, if i had to put all the polls up that had everything wrong in brexit and the election, this would be the poll that may be wrong for the markets. that's fed funds december. i don't think that's right. you can put your stock in it, but i'd look at the rest of the markets, hopefully the fed is as well. carl, back to you. >> rick, thanks so much. rick santelli. when we come back, a lot more of david's exclusive with liberty media chairman john malone. dow up another 164 points, record high to 2181, the best week in five years on pace for that. we're back in just a couple of minutes. attention: are you eligible for medicare?
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of banks are leading the charge, along with drugmakers, things, jim, you've been saying were setup. >> and tech not being viewed on the same page. >> the proctors and the cokes. >> yeah, those are what you sell when you think there's going to be great economic growth. i would urge people who are still buying these the only ones that can i justify on an earnings basis if you're reaching, reaching, reaching are the banks. and the reason i say that is because they should have traded off book value, but the reason why they didn't was because people always felt that the regulators were going to be too tough and that book value would never be equal. you know, citi, my travel trust owns, citi has a $65 book value, bank of america is now above its book value. you'll get to book value in this new regime if what david faber and i were saying. >> speaking of david faber. he's got some malone. >> that's right, carl. of course every year we get to sit down with john malone of
liberty media. this time we discussed att and time warner. he didn't have much to say on expectations of the regulatory review but had a lot to say in terms of whether he thinks the deal makes sense. >> if i was randall stephenson, i would do what he's just done. >> you would? >> i would. in my mind, a, it represents a pretty substantial diversification for at&t. it's one of the few large groups that could be bought that has a financial structure that permits enough free cash flow that at&t can buy it and sustain dividend. >> or actually help sustain the dividend. >> or help sustain the dividend. so from a shareholder point of view it's one of the few diversifications that at&t could do that would have those
parameters. number two is there is defini definitely synergy between owning the content and having the largest distributor. the way i look at it, it's not so much that it will drive at&t connectivity services disproportionately. i think the bigger opportunity is to make the content businesses more profitable. and more certain. because if in an age of cord cutting. >> in an unbundled world. >> in a world that's trying to unbundle, if you have the largest distributor defending the bundle and defending the components that it owns of the bundle, everybody in distribution is likely to follow suit. so if hbo gets streamed by at&t, they're not going to do it
exclusively and they're not going to be allowed to do it exclusively. >> no. >> but everybody will then be wanting to stream hbo. and the transfer prices which the largest distributor has with its own subsidiary will be the minimum prices. >> many people look at these portfolio of channels and say, well, tnt and tbs, what in the world in an unbundled world why would anybody carry them. at&t's going to own them. they're going to start running off in terms of subs. not to mention on the other side directv where you're going to start to see -- >> well, i think -- >> you're saying no. >> what i'm saying is the evolution of this distribution business in my opinion. >> yeah. >> is that you go from one big bundle to a whole bunch of smaller bundles. and i'll guarantee you in the smaller bundles all of those time warner services will be in a smaller bundles, whether they deliver streaming or a la carte,
whatever the evolving scheme is, okay, at&t will make sure that those time warner services are in those packages. >> of course i got a lot more to talk about there including the evolving role of wireless when it comes to distribution and perhaps the need for cable companies to own it, guys. we always hit a lot of topics with malone and occasionally some of the liberty businesses themselves. we got a lot more for you later in our program, all of it will be available at some point in the not too distant future on cnbc.com. >> david, just quickly, i know we got to go, but any chance that we can get him to talk a little bit about apple and where they are and whether they should be a buyer and also longer term about disney? they report after the close, forget about that, but the prospect of sports programming. he'll know more than we do about espn. >> yeah. you know what, jim, you are pres yent because that will be the next part of what we share, his view of disney, what may happen there and apple does figure into
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jim, what's on mad tonight? >> we're saluting the troops. we're going to celebrate veterans day. we've got alex gorsky who went to west point, army ranger. and then we have howard schultz, who has a very robust veterans hiring program. both these gentlemen understand the time. i'm just going to say i know this is going to be an ad for america, but maybe time of healing. these guys are great leaders. great leaders in the business world. and maybe healing means getting these vets jobs. it's time. >> wow. what they say is important. people will listen. it's a good show. >> well, my dad always said why aren't they hiring these guys? my dad was in the army long time. >> jim, see you tonight. "mad money" 6:00 p.m. dow hits the new all-time intraday high. about two-thirds components in the green. don't go away.
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exchange. david faber is at liberty's media investor day. going to talk to malone and ma fay this morning. he'll join us shortly from there. but in the meantime dow all-time highs two days after the election at 18,746, on pace for the best week in five years as the market takes heart from the potential of trump's policies on deregulation, taxes, repatriation, regulation, all that. >> yeah, let's stick with the markets. that trump celebration with the dow at record highs, a fourth straight day of gains as the market digests news of a trump presidency. meanwhile, billionaire investor stanley druckenmiller reversing summer insight strategy of selling stocks to now bet on growth. here's what he said on "squawk box" earlier today. >> i basically have a large bet on economic growth. how do i do that? i'm short bonds globally, i'm short bubbles, i'm short bunds, i'm short gilts, short italian bonds, short u.s. bonds, that's all reflective of not some
disaster with deficits but with stronger growth. i'd like the sectors of the equity market that respond to growth, value and materials, not things like staples and traditional growth stocks that don't -- and i like the dollar particularly against the euro. >> boy has the mood changed. for more on managing your own portfolio, we're joined by terry hanes, and here onset pimco strategist and portfolio manager, druckenmiller also said he sold his gold on election night. it is stunning to see the reversal in sentiment not just ahead of this election but also post election, the fact we're at record highs with an 800-point plus dow decline in between is pretty remarkable. >> well, what's remarkable is if you look at the combination of securities that are moving in their direction, particularly what i'm speaking to is this reflation trade. tips break evens a high which is to say markets pricing in a
higher level of inflation in the future, interest rates higher, u.s. dollar is higher and equities are higher. this is a combination of events that central bankers would have dreamed of and they've been trying to reflate the economy for years. so it does look like there's a shift underway away from central bank dominance to fiscal dominance. this is very, very important. and if it does continue and we all don't know yet the magnitude of which there will be this shift, it will be very important to asset prices going forward. >> so one question on that inflation story, if that's really what it is. the underpinning of this multi-year bull market that we have seen in stocks after the recession has been fueled in part by super low interest rates, which only got lower. now that the tide is turning on rates, does that take away a crutch of support for stocks? >> don't expect interest rates to move all that much. pimco would project about three rate hikes between now and the end of 2017. so, sure, the fed rates might go up a little more than markets are pricing. but globally, remember on
september 2 1st the bank of japan put a ceiling on its 10-year security at zero percent. so to the extent move away further from that zero mark for the jgb, that will compel investors in japan and europe where rates are low and expected to stay low near zero through 2012 to move to t-- 2021, don't rates to run away, but do look for them to creep up a bit. >> terry, we've been asking this morning why the market doesn't appear to be worrying more about wild cards, nato, foreign policy, china, temperament, character, protests in the street, things that dominated the general. >> well, good morning, carl. good morning, sara. >> good morning. >> good morning. >> i think fundamentally what people look at is the potential for growth as tony says. and then certainly that's good
news. and i think they also expect on a policy level what you will end up having is not just trump but a republican congress and they expect the republican congress to check some of the less predictable impulses of a president trump. >> but to carl's point, tony, is the market at this point painting too rosy of a picture of donald trump's presidency? or do you think it has it right? >> there's a good time to be a long-term investor and think of the couple of pillars of investing we can always rely upon. one of course as terry just said we are a democracy, this is a 60-seat filibuster proof majority not in place now. that's needed to pass big things. and with the lack of it, of course then donald trump will have difficulty pushing through things that might scare people. but we should also rely upon the idea of capitalism. it shines through at the end of the day through various changes in government. and these pillars of course are something that long-term investors can depend upon.
and with a little bit of help from government, a little more activism and it's highly likely we will get more and it's a low bar, that congress or i should say washington the last four years passed the least number of laws in 200 years, so there will be more activism. so the optimism is well placed because there is a shift movement underway from monetary policy to fiscal policy. in the united states. and that's been sorely needed. >> i wonder, terry, one of the big sources of anxiety has been trade. both around brexit and around the u.s. election. and looking at these markets post brexit and post trump victory, is the consensus wrong on trade? is this idea that open free trade with all the free trade deals that we have seen over the last few years if we go back on that, that's not necessarily a bad thing for global growth and global markets, or we haven't seen any of it yet? >> i think it's more we haven't seen any of that yet, sara. what i expect from 2017
fundamentally is a stand in place on trade. you're certainly not going to get the transpacific partnership or any new trade deals. but congress is also not going to be interested in trying to rollback nafta or some of the more extreme things that are discussed. people need to remember and understand that fundamentally treaties are not just treaties, they're also laws. so congress has the whiphand on what the trade laws look like. and i don't think a republican party that is the more free trade party is going to be interested in rolling any of those back. >> final word, tony. where does the 10-year yield finish the year? >> well, in a market cycle moves up about a half -- should say bet ta -- >> so 2.5 then? >> that depends on whether the reflation trade is for real and that depends on the shift to fiscal dominance. >> ooici'm sorry to keep us lont what point do act as a wait
rather than enforce of confidence? >> it's critical to keep in mind the context of the global story. i mentioned the ceiling on the jgb is zero percent. in europe markets priced for negative rate through 2021. so in that context somewhere in that place there have been much higher yields and stock market did very well, we're not looking for much higher yields right now. >> we won't pin you down on copper, guys, thank you. when we come back this morning, president-elect donald trump is heading to the white house today to meet with the president, to meet with mitch mcconnell, mike pence and also going to the nation's capital we'll talk about what a trump transition and administration could look like. later on david's exclusive from the liberty media conference chairman john malone. more "squawk on the street" back in a moment. happen all by itself.
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president-elect donald trump meeting this morning with president obama at the white house. in fact, his plane just left laguardia a few moments ago. our john harwood's made his way back to washington and joins us with more. hey, john. >> hey, carl. you know, we talk a lot about the peaceful transition of power in the united states. today is when it begins. president obama is going to welcome donald trump here. the president has pledged to make it a smooth transition just as george w. bush gave him a smooth transition when he left office in early 2009. there will be a lot of
awkwardness to it of course because donald trump has pledged to reverse many of the legacy items that president obama is most proud of, things like the affordable care act, the clean power plan, the paris climate agreement, dodd/frank, all of those are in the cross hairs and i would expect president obama not at today's meeting, which is largely symbolic, but through his aides as this proceeds to do their best to try to dissuade the incoming trump administration from getting rid of those altogether. after the meeting here, mike pence and donald trump are going to meet with paul ryan, the house speaker, mitch mcconnell, the senate majority leader who has retained its majority in a surprise in that election. they are the ones who are going to translate donald trump's agenda and their own agenda into political reality. and they've got a free hand to do that. and they've had a rocky relationship with donald trump as well. we'll see how that manages. and the final meeting today will
be mike pence and joe biden, the incumbent vice president and the man who will take his place. that might be the smoothest of all. both are genial men and know each other because mike pence served in the house when joe biden was vice president. but this is when the reality of the american transition, the reality of the results of this election are going to begin to sink into the country, carl. >> john, thank you for that. we're going to watch to see the photo op in the oval office and then to hear more about nightly news reporting that he'll get a security briefing, the first in-depth security briefing potentially talking about some covert activities. as the trump transition gets underway, global, political and business leaders are already expressing optimism about working with the new president-elect. after calling trump a disgrace last december, listen to what saudi prince alwaleed bin talal said. >> i have no problem with him.
i believe this is with leaders around the world china, mideast, europe. i think candidate trump for sure is not like president-elect trump and then president trump. so i think he's progressing in the right direction. and i hope and i believe that once he takes the reigns some time in january i think we're going to see all of these skirmishes and all the misunderstandings that were related to candidate trump behind us. >> on that note, let's bring back veteran political strategist chris kofinas and former bush white house political director cnbc contributor sara fagen. chris, everybody seems to be saying we don't know how candidate trump translates to president-elect trump, but the prince seems pretty confident. should he be? >> well, i mean, listen, when you have an election, you have a winner and you have a loser. the reality is we have a peaceful transition here in the united states which is something
that makes this country great. i think that president obama has struck the right tone. but -- and listen, there will come a time for politics and probably going to be a very short window after he gets inaugurated, but i don't think right now is the time for the president and the democrats to start, you know, fighting over what is going to happen once president trump enters office. >> sarah, we hear a lot about this peaceful transition, and we will see as carl said about the meeting today, but let's not forget the fact that donald trump was one of the leaders to try to delegitimize president obama with the birther movement, he has campaigned on repealing obamacare, tpp and many other signature legislation for this president. awkward feels like an understatement. >> yeah, it is an understatement. but look, today is really about establishing a relationship and bringing the trump transition team together with the obama
white house staff and figuring out in some respects just breaking the ice, developing a rapport, but then more importantly the logistics of doing a transfer of power are not uncomplicated. and it takes a lot of people. and they have to work together. and i think today's meeting is really about that. and it will establish a logistical and working framework for these two teams to transfer power. >> chris, how do you see that actually playing out? what happens behind the scenes to make sure that happens? >> well -- >> go ahead, chris, sorry. >> go ahead, chris. >> i mean, a lot of meetings and a lot of back and forth. you know, sara knows this. i mean, the reality i think of the situation is there is a lot of bureaucratic processes that have to happen and steps that have to be taken just to make sure everything keeps functioning once there is that transfer of power. i will say it will be difficult. it will be probably more difficult a transition than any
others in the past because of how intense the political season was in this campaign. and the past in terms of some of those statements donald trump has made. but the reality -- >> be more specific. when you say difficult, you mean emotionally for a valerie jarre jarrett? or you mean logistically? where's the friction? how does the friction relay itself? >> i would say probably a little bit of both. i mean right now i can tell you just in terms of the conversations i've had with many democrats since election night to say that there is a shocked feeling is an understatement. they did -- no one amongst the political class saw this coming. and i think the degree to which the defeat was felt not just the presidential level but across the board is something that is going to be, i think, hard for people to take. and you're seeing democrats to be really frank about it are going through this kind of seven
stages of grief. and it's going to take some time. now, i think everyone's going to be professional. they have to because that is the job. as the president said. but i think this will be challenging at times. and probably more challenging than it was between the bush administration and the obama -- and the incoming obama administration. >> and it's really in president obama's interests for this to go well, just as it is for donald trump. but they're still in power. and i remember going to work on the day of the inauguration when president bush was inaugurated and the w was missing off my keyboard as it was for many of my colleagues. and they don't want that. that's not good for president obama's legacy. so establishing a framework for the senior staff to work together is really important. the politics is going to come back into play. we haven't heard the last from president obama on his legacy and his policy priorities. but he is prudent enough to give some time and at least develop a
dialogue between these two teams that can establish, you know, some basis for turning the power over in a way that is american. >> part of me had always wished that "w" story was urban myth. >> it's not. >> if i add one more thing. so i would say i think there's a responsibility that falls on democrats, particularly the administration, to make sure this is a good, you know, fair transition because i think it would send a terrible message to the country if this ends up becoming an inside or back room kind of battle between the two camps. that would be just an awful message. and i think one of the things democrats need to take away from this election is we need to start listening a little better and i think that starts right now. >> yeah. certainly druckenmiller this morning saying maybe we're seeing peak divisiveness right now. chris, sara, thank you so much. when we return, we'll have much more from david's exclusive
sit-down with the chairman of liberty media john malone. and look at the nasdaq, being dragged down by apple, amazon and facebook. it's down half a percent as the dow is trading at a record high led by j.p. morgan. much more ahead on the markets. stay with us. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade if you're on medicare, remember, the open enrollment period is here. the time to choose your medicare coverage begins october 15th and ends december 7th. so call unitedhealthcare to enroll... in a plan that could give you the benefits and stability
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dow's trading at a record high. nasdaq still in the red this morning. for more market analysis on which sectors stand to gain or lose under a donald trump administration, let's bring in david seberg, a cnbc contributor. david, good morning. good to have you. >> how are you, carl? >> are you at all surprised at the makeup of the rally so far? >> i think a lot of people are just surprised we're rallying. four days ago if we had a conversation, carl, what would we have said? we would have said the market would selloff on a trump victory. i look at it and say everything he's saying is concise and very clear supporting those initiatives. the question is when are they going to fall and actually impact the, you know, earnings. so rates are going higher. there's no question about that. buybacks are going to slowdown, no doubt about that either.
so are we going to be able to see the earnings come through quick enough to really start to offset that. i'll be frank with you, i'm not chasing the market at these levels. >> yeah. >> it's a big sentiment win for a lot of sectors, carl, but i'm not going to just, you know, roll the dice and buy anything here willy nilly. >> yeah, some folks are recalling when reagan won first time it did usher in a bull market. but it took a year and a half to two years for the s&p to really glom onto what was happening in the real economy at that point. >> this is entirely a sentiment shift. and it's repositioning portfolios right now. so when you look at the banks and you say to yourself the banks had been under tremendous pressure. there was so much concern there, just like the biotechs and biopharma names. so what we're seeing here is a sigh of relief, a massive sigh of relief if you will, massive outperformance in those sectors, but for instance, the banks, am i going to jump in and buy the banks blindly after the moves we've seen from the lows?
i'm not going to. i like the regional banks much better than the big banks. frankly trump is not a fan of the big banks. i mean, he hasn't borrowed, you know, from the big banks since '93. he's taken it from other sources. i say careful with the big banks, buy regional banks, stick with etf if you will that gets you exposure there. biotech i think is going to benefit and continue to benefit, but i wouldn't be chasing the rally here. >> what about technology not participating in this rally? the nasdaq i mentioned earlier is negative, amazon, apple, facebook, microsoft, google, is this a trade story or something else? >> i think, again, it comes right back down to just the investors portfolios being shifted based on all the negative sentiment and other sectors and underexposure if you will, sara. think about the banks how much underexposure people had. other biotech, health care, a lot of underexposure there. so it's a repositioning if you will. i also look at the scrutiny that could come under play. you know, technology, you know, we've seen a lot of money funnel in there. it's been such a crowded sector
in certain parts of it. the facebooks of the world, amazons, googles. just money seeping out of that going into really under sort of appreciated sectors and names that didn't participate over the past year or so. >> as you're talking, david, donald trump is arriving in washington, d.c., for his meeting with the president, not just donald trump and president-elect trump and the president, but also the first lady and incoming first lady melania trump. they're going to meet at 11:00 a.m. we do expect to see some pictures some time in the 11:00 before they move onto a meeting with mitch mcconnell and the senate. >> they're also meeting with house speaker paul ryan, which that's going to be an important relationship. and, david, i think investors are really watching that one closely. druckenmiller which we've been talking about this morning on squawk saying he wants ryan and pence to be the economic leaders when it comes to trump's policy. how key is that republican cohesion going to be for you? >> oh, i think it's very
important. i think everybody's got their eyes on that right now. look, i mean, just back up to trump's speech. i think it's really important to know, i mean, his speech meant a lot. i know to me and i think to a lot of people, as did hillary's, but i think donald trump was very eloquent in the way he sort of approached the masses, if you will. both democrats and republicans. that alleviated a tremendous amount of fear. going into this election if you recall there was concern he was going to protest the voting, he was going to put lawsuits all over the place in question marks. by him coming out and really sort of bridging that gap saying we won this election, we the people, i'm going to support democrats and republicans equally from the standpoint to be their president. i think it changed a lot of people's perception of the way things are going to be from the standpoint of process. and that was a powerful statement on his part. so i look at the odds they've had, that will be cleared up, i think. >> yeah, we're going to get more clues today, more body language
than anything, but we're taking what we can get. david, thanks. >> thank you. >> usually wall street likes meetings. it suggests that people are cooperating and getting along. remember all those european meetings which didn't result in anything? >> yes. >> there's hope when there's a meeting. when we return, dark, chaotic and negative, that's how the largest paper in china is describing democracy in america. we'll head to beijing for that view. and we'll have much more from david's exclusive sit-down with the chairman of liberty media. much more ahead on "squawk on the street." the dow up, but the s&p and nasdaq are negative.
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speed always wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. i'm scott wapner and here's your cnbc news update this hour. president obama welcomes his successor donald trump to the white house in about half an hour. it is the symbolic start of the transition of presidential power. vice president joe biden will meet with vice president-elect mike pence later this afternoon. hundreds of protesters took to the street in california last
night protesting trump's election victory. police arrested at least 13 people after demonstrators shut down portions of the 101 freeway. the demonstration was otherwise peaceful. walmart revealing its black friday plans saying customers will be able to shop a majority of its black friday deals online beginning at 12:01 a.m. eastern on thanksgiving morning. its stores will open thanksgiving evening at 6:00 p.m. local time. it's also offering its app users select black friday deals. the rockefeller center christmas tree is beginning its journey from upstate new york. the 94-foot norway spruce owned by angie and greg was cut down this morning. it is the second largest tree to ever grace rockefeller center. there it is on its way to new york city. that's our cnbc news update this hour, carl, back to you. scott, thank you very much. we do want to show you picture of d.c.a. this morning as donald trump, the president-elect, has made his way for his meeting with the president in the oval office. we want to make sure we show you trump as he exits the plane.
so we'll keep you honest on that. josh earnest of course in the briefing at the white house yesterday said it's not going to be an easy meeting, but as the president echoed the white house rooting for president-elect trump's success. >> this is a long-time american tradition. melania onboard as well. they'll be meeting with the president and his wife, michelle obama. and i have to say there's a lot of talk about a peaceful transition. this is after president obama spoke yesterday, after hillary clinton's concession speech yesterday. the theme from both sides so far tends to be we are going to work together, we're going to unite this country. and that's why i think a lot of people are watching this very carefully after what was a bitter campaign from both of these gentlemen. >> the president certainly has called trump unfit and uniquely unqualified for the office. but as he made the point again yesterday, part of this involves bridging those disputes and those divides, which in the case of trump and the president go
back years to prior white house correspondents' dinners and things like that. interestingly breaking with tradition, we're told he is not traveling with a pool today, which is -- which goes back decades that a pool reporter has been able to travel with the president-elect as he comes in. a little more blind than we've been in years passed. >> i was going to say this is a new playbook trump is playing by and we'll follow it as we go along. joe biden also set to meet with his successor mike pence at 2:45 at the white house. >> along with mentioned cleveland cavaliers. >> as well, the champs. we're going to keep an eye on that and bring it to you as trump emerges. we also want to hit the global angle here because certain media outlets in china are using the u.s. election to warn against a democratic system. our u.eunice joins us with more reaction.
>> that's exactly right, sara. one communist party paper has called theist system dark, chaotic and negative. that's a consistent theme we saw throughout the state press coverage in the runup of this election. the chinese state tv ran a special half-hour program on the eve of the election and the title of it was uproar and disruption, what american democracy tells us. and it was basically telling the chinese public that the elections are making americans angry, confused and anxious and that nasty attacks know no bounds. now, this whole pr blitz is part of a greater effort by the president xi jinping's administration and his campaign to try to limit the influence of western ideas such as democracy and promote what beijing sees as chinese values. now, since the results of the campaign the press has taken a different tack and they've been describing trump's victory as a consequence of the political establishment and the government losing touch with the people. the state-run news agency xinhua
said that the election of such a controversial candidate shows how america's democracy brings about crisis and how the majority of americans are rebelling against america's political class and financial elites. and the message there seems to be that unlike the american government, the chinese government and china's leaders do take care of their people. now, the propaganda effort seems to have been taking some effect because we went out into the streets yesterday after the election and we were asking people about trump's victory. and most of the people that we were speaking to said that they believe that the lessons that they learned was that democracy can be dangerous. back to you. >> eunice yoon, thank you, live from beijing. as we keep our eye, carl, on this plane. we're expecting president-elect donald trump to emerge from his
meeting, both wives in attendance. one thing people are focused on is what president trump will do when it comes to fulfilling his promises on the campaign trail. and how much, carl, of obama's legacy he can actually roll back when it comes to issues like obamacare, dodd/frank, the iran nuclear deal. i mean, he's talked and bashed all of these things, climate change, the list goes on. >> well, on the trail of course has made promises to do a lion's share of that work on day one where he promised to begin deporting certain immigrants, reversing executive orders that a lot of republicans see as unconstitutional. not to mention the more stylistic elements of the office, how much time for instance will he spend at trump tower in new york city. which is now by the way heavily fortified with garbage trucks, with security, nypd, especially given the protests last night. we don't know how much of that is permanent and temporary. >> there's also this issue of the supreme court. president obama nominate e ed
merrick garland to the supreme court, the republicans have stalled that, very much an issue for why republicans ultimately stood behind him. you just wonder what those conversations between these two men are going to be after all of this. >> absolutely. absolutely true. as we continue to wait to see donald trump walk off the plane. market is paying attention to some of this. we'll be taking clues from body language, but we're well off the highs. in fact, the gains on the dow have been cut essentially in half down 63 points. we continue to take note of the weakness in technology, which at this point is in truly sharp relief, on apple, on alphabet, compared to a goldman or a j.p. morgan. >> yeah, financials, industrials, health care and energy, those are considered the real trump sector winners in all of this, are all still higher. but you are seeing selling pressure continue in groups, carl, like utilities, consumer staples and telecom, which has
been a driving force of the stock market rally the past several years. and of course the why there is this jump in treasury yields, which we continue to see. this selloff in bonds totally reversing the tide on several years of bond buying. the question is, is it permanent? have we seen the low in the treasury yield? which totally changes the dynamic in this market, as the 10-year yield goes above 2%. at what point then is it yielding more than some of these high paying dividend stocks which have made them so appealing. >> john harwood's with us in washington watching some of this. john, you made the point earlier this morning -- well, not yet, but we'll get to him. he has made the point, some making the point on social media that this transition, we talked to sara fagen and chris kofinis about how difficult it could be both logistically and emotionally for both sides. but it's not like policies are undone in a day. >> true. >> there may be a plan to repeal obamacare very quickly, but there will be a period in which the trump white house has to
essentially operate a policy and infrastructure that is to the campaign, the party and republicans. there's donald trump now. >> walking down the steps. yeah, it doesn't happen overnight, carl. i think chuck todd has made the point numerous times, what are you going to replace it with? repeal is sort of definite word. something has to come in its place. so will it look a little bit different or not? maybe that's something that the two gentlemen will talk about. clearly high security here greeting president-elect donald trump. >> and you mentioned meetings on capitol hill as well with mcconnell and ryan. another some argue tortured relationship on the campaign, which you would expect to be different now that he has been elected. but to what degree does trump want ryan in as speaker, rely on him? a large argument to be made that he's beholden to no one given the fact that the senate seats that went republican were
largely those who had made themselves closer to trump than farther away. >> and they didn't campaign with him. they didn't -- he won the election without them. >> as we go to break, dow continues to lose its gains, now up 60 points. we've seen donald trump on the tarmac. we'll try to get pictures of him as he makes his way to the oval office for the first time. a lot more "squawk on the street" in a moment. e, they put everything they know into it. but once it's sold, there usually isn't a way to keep improving that product. today, whirlpool can analyze iot sensor data from connected appliances on the ibm cloud. so they can continuously learn how customers are using their products. and how the machines respond. harnessing data to make great products better - that's what the ibm cloud is built for.
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it is down about 1.5% right now. we're looking at the biggest intraday slide since back in early september. a lot of these names, facebook, google, microsoft getting hit right now. the s&p 500 has turned negative after starting the day out positive. it's down just about four points. groups like utilities and staples and telecom getting hammered while some of the winners like financials and industrials continue to rise. all right. there's your market check. let's now get to david faber over at liberty media's analyst day for more. hi, david. >> hi, sara. thank you. yeah, you know, perhaps nobody has had more of an impact on the changing landscape in media than john malone who for the last 30 years or so has certainly been a part of many of the different movements that have taken place. the latest tectonic shift taking place under that announced deal which time warner will be acquired by at&t. and i asked malone what he sees as next in the industry as it applies to some of the other big
players, namely disney. >> i think what happens is disney is the only big very attractive content owning distribution company. >> it is not controlled either. >> it is not controlled. okay. if somebody went after disney, my guess is apple would have to finally make a decision. >> yep. >> because they're very close with, you know, disney -- >> iger on the board of apple. >> correct. if i had to guess what you will see is a split of disney with espn spunoff, and probably espn could be owned and protected by a distributor in the u.s. and apple would be more interested and they would have a lot more in common in terms of international branding. because fundamentally tim cook's a global player.
>> right. >> and fundamentally espn is a domestic service. you may well at some point see those separate. >> disney will be separated conceivably into espn, which will be owned by a distributor. and the other content assets, the theme parks -- >> and maybe other u.s.-focused assets, like abc. >> now, why do you bring this up, john? do you think they're under pressure there? >> no. >> do you think disney's under pressure? >> no. when these tectonic play e pl it moving, it's fun to speculate. we're just little guys now. we're looking at these guys with mass iive balance sheets who ar in and around our space. and it's always interesting to speculate when they actually get involved. is zuckerberg, is mark going to with his massive reach at what point is he going to want to step in to this video space in a
meaningful way? >> i know, but they benefit so much from everybody else's content without paying for it at all. it's a great model. >> best model ever created, right? >> yeah. >> so the question is though when his growth slows and he's looking for his next thing, right? what's his next thing? and my guess is he starts looking at video more seriously. >> he said video is the key to the future for the company, but -- >> yeah. >> -- not necessarily producing their own content. >> i'm not saying he has to produce content, but may make sense for him. all i'm saying is this game has migrated from being a domestic game to being a global game. the scale -- any time you get into software, whether it's entertainment or computer, it's all scale. it's all about scale. the guy who has the biggest scale. that's why reed hastings, who is
by the way a terrific businessman. >> you think he's a terrific businessman? >> i think he's terrific. >> why do you think reed hastings is a terrific businessman? >> because he saw early on that if he could drive a business on top of the internet, he had a global business. okay. and what he's going for is global scale. and he gets global scale, he's the only guy that's going to be able to write the check to create the content at the level and at the quality that people are going to get used to. so he's trying to get there. >> right. >> and he's got a big lead. and the question is can anybody catch him? >> i want to get back to disney for a second. people are speculating as you are about what happens to this industry given the change that is going on particularly in light of the at&t/time warner deal. >> right. >> so you bring up this idea of disney. do you think iger is under pressure? do you think he's looking at that sub erosion at espn and saying i've got to figure
something out? or is that making way too much of it? >> no, i think the equity market has got -- because got that bug in their head that this is a longer term problem that he has. and somehow or another there's going to be some solution because, you know, otherwise disney should be trading at a substantially higher multiple. >> yes. >> let's face it. i mean, they are fabulous studios. they own theatrical. >> mobile brand, to your point. they've got theme parks all over the world including this one in shanghai now. >> it's a global brand. quality global brands, okay. so he's done a great job. but espn, you know, in order to solve, you know, the issue of having to pay more every time the contract comes up, they went long. >> right.
>> and at the moment that looks adverse. now, they may be able to figure out how to turn that. >> always interesting to listen to malone. of course who as he said is purely speculating. we did not get into so he is pu speculating. we didn't get into the assets he controls through liberty media, whether it's kwooufs or sirius satellite radio, trip adviser, live nation, the atlanta braves, but we'll have the opportunity to do that with the ceo of the company when he joins me a little less than an hour from now. >> david, thank you very much for that. fascinating stuff especially on a day when tech is challenged. nasdaq had its biggest drop since september 9th. amazon down 5%, even as bezos tweets congratulations to donald trump. >> there's loft positivity in the air from people who bashed trump on the campaign trail, from president obama, who yeld called it an intramural
scrimmage, this idea that the country is going to come together and if stan druckenmiller is right, the divisive will stop because there is optimism. you feel it on wall street, see it in reaction to some of the stock and bond prices, the dollar stronger as well. and we'll see it hopefully in this photo-op we'll get in a few moments. >> that brings us to the optics of all of this. john harwood joins us this morning from the white house, i believe. john, set aside the generational shift in power that we saw earlier in the week on election night, but we have a candidate arriving with his name emblazoned on the plane, traveling without a pool. we are told arriving on the south lawn meaning we might not get the arrival photos that we are traditionally used to. what are your thoughts as we wait for this? >> well, obviously the optics are important. the substance is also important. and here at the white house, i was just talking to aides, they don't know exactly what to
expect from this meeting. i don't think they expected to be a long meeting, but if donald trump wants to engage on substance and policy, they say president obama is ready to do that with him. they also say in private as well as in public, president obama has been very even tempered about this, bucking up the staff that is quite downcast about the results because they think a lot of the work that they've done over the last eight years will be reversed. and to sara's point earlier, carl, i think we're not going to see an end to political division, but you do have a moment where there's a fresh start for the country, donald trump is going to come in with some wind at his back with the republican congress aligned with him, and everyone is going to be hopeful that the agenda that they undertake will be broadly
beneficial. and so i think it's what sara was describing, more of a momentary thing, because obviously in american politics people turn to the next election very quickly. >> right. >> but i do think there is a moment. >> and as president obama said yesterday, i told my team to keep their heads up so that is certainly the message from the president, john. i'm also interested in this meeting that's going to happen between the majority leader and the senate and particularly house speaker ryan. i think global investors are watching that one very carefully. the two are not exactly in alignment as you know during the campaign. but when it comes to everybody breathing a collective sigh of relief and everyone getting together to work to move our country forward, those two are going to be critical. >> no question about it. you're exactly right. and the relationship between mitch mcconnell, paul ryan, and donald trump has been
challenging. but they also have some shared priorities and how they manage those, where republicans on the hill say to donald trump we agree with you but only this far, all of those lines have yet to be drawn and of course we have not learned yet, we talked about this on election night, sara and carl, that donald trump has take an lot of positions over the years and in this campaign, and we're going to find out as he prioritizes what's truly important to him and what isn't. and i think republicans will discover that as well as democrats. >> not just -- it's not just the relationship that you're building quickly with the prior white house. it's all the ceos that have either written, tweeted, or talked about how they're responding to the new administration. and then it's foreign policy, british prime minister may, has issued a statement saying that she spoke to president-elect trump, looking forward to working with him, agrees to build, john, on what she called a very special relationship.
words like that are going to be key. >> they are and the team that donald trump builds is going to be key. you know, i was talking last night with peter fever, who is national security aide to president george w. bush, who had been very outspoke within many other republican national security officials in criticizing donald trump saying they didn't think he could do the job as president. peter fever told me last night i think some of the fears about a trump presidency have been exaggerated. he need to build a team and he thinks that there will be quite a number of good, able republican national security officials who will join that team. and the process of beginning that in the realm of national security as well as domestic policy is extremely important to this transition being headed up by chris christie. >> john, it also is happening against a backdrop of protests in some major cities in this country. last night in chicago, new york,
and seattle and other places. there are millions of americans that are in shock and that are dissatisfied with the results. how does president-elect trump address that? we got a little bit of that from his victory speech the night of the election when he said he wants to be president for all americans, but i would think this is an important message that needs to continue as well. >> no question about it. and you are going to see protests. that speaks to the division that we were just talking about a moment ago. but president trump is going to -- president-elect trump needs to do what he can to calm some of those fears. i was talking to win webber, former republican member of the house who allied newt gingrich who of course is a major trump ally. vin webber was not a trump ally and he said that he thinks people of color, both in the united states and around the world, are very afraid and that donald trump needs to take some
concrete steps to ease that fear. he thought the election night speech by donald trump was a good first step. but he's looking for more steps. >> major garrett at cbs, widely respected political reporter, john,s reports until now the president and president-elect have never met. they've been in the same room. a white house correspondents din err few years ago where the president openly mocked donald trump, but it does make you wonder, john, just what exactly these meetings must sound like. >> that is absolutely right. think about it. that meeting that you described, five years ago, 5 1/2 years ago, white house correspondents dinner was defined by president obama mocking donald trump, who had been prosecuting the birther campaign against him. now president obama is passing
the reins of pow eer to donald trump. what on a personal slesm that like? i'm surprised that they've never met but of course if they had met they would have seen the photographs as we've seen the many photographs of bill and hillary clinton with donald trump. you know, hillary clinton remitted donald trump in the senate. bill clinton was president of the united states and met donald trump. so i think that is a relationship which will begin in person today. it's never going to be a close relationship. but the well-being of the country depends on it being a smooth relationship for the next couple of months. >> john, i know you've talked a bit about this morning the rapidity with which some of these obama policies will end. obamacare one of them, even alan greenspan on our air this morning saying he would like to see dodd/frank disappear, although that has perhaps additional complications. just logistically, operationally, you can't just
shut them off with a switch and there will be a moment -- there will be an element of time in which a trump white house has to run these programs, which they hate. >> that's right. there's going to be a point in time where donald trump and his team have to administer obamacare. there's considerable concern over exactly what the repeal replacement of these programs is. take obamacare, for example. it is possible to conceive of a piece of legislation that is called repealed but that actually fixes some of the problems with obamacare as opposed to eradicating it all together. every republican incumbent on capitol hill knows that taking away health care currently being received by 20 million people that was added through obamacare is not going to be easy, it's going to generate a lot of opposition, so how you do that, how you change insurance rules if you, for example, get rid of
the provisions in obamacare that limit the disparity between premiums charged to older people as compared to younger people, that's going to have -- that's going to benefit some but hurt others. and how balance those costs and benefits is not easy. now, you could have a complete repeal, but that would generate a lot of heat. the same is true of dodd/frank. i think there are elements of dodd/frank that donald trump and other republicans have praised while being critical of it effect on community banks and its effect on lending. so how do you keep things that might have increased the safety and diminished the risk of financial bubble and insolvency at some major institutions without -- you know, how do you preserve the good without completely eliminating the entire thing.