Skip to main content

tv   Squawk on the Street  CNBC  November 29, 2016 9:00am-11:01am EST

9:00 am
just tim talked about it. you know what, you figured out what to get me for christmas. >> i thought you meant your birthday, january 6th. >> either way, combine them. >> okay, i'm going to get you a new pinky ring. >> get me a pinky ring. >> with if you can, with a diamond. make sure you. >> reporter: love that. >> don't do it, kidding. >> join us tomorrow, "squawk on the street" is next. good tuesday morning, welcome to "squawk on the street." i'm here at the new york stock exchange. coming off the worst day as the trump effect now transitions to the opec effect. futures are steady. europe is mixed. the tenure remains in the tight range. although q 3 gdp on good consumption and home prices up 55. we begin with g pd was stronger
9:01 am
than expected. early cyber monday show record sales. >> and speaking of retail. tiffany shares are on the rise this after a big beat, traffic gains but will the most hype prod file resident have an impact on tiffany's fifth avenue store? we're going to tell you what they said on the call. >> at&t unveiling it's directv now service. the streaming service will start at $35. will this be the tipping point for future cord cutters? but first up the economy was stronger in the third quarter than the government originally thought. advised up, that is the fastest pace in two years. the number's out one day after the trump rally took that detour in the russell snapped that 15-day winning streak. virtually all of the improvement is consumption, jim, which is now 69%. >> people are going out, doing things, i think people this cyber monday, numbers look good. no singles day, but it's like 1,
9:02 am
100th. the set-up is such that interest rates have to go higher prp even from here. you'll see the banks continue to move because rates have to go higher. i see there's a huge number of fed people who talk -- they have to stick to script, and the script is rates have to go higher. the rally is in large part, facebook. rates going higher. demand for money higher. spending higher. >> santelli just pointed out, nine days between 236. a building block if in fact you'd believe the rates are going to go higher. >> i think they are. we have a president that is a democrat, right? he's committed, what, he's committed to spend. we think, but we don't know. as a republican, he's committed to cut taxes. i mean, that's a recipe for higher interest rates. it's a recipe for higher growth, it's a recipe for our kids to may more money than we do, but the rates we're talking about. you're starting to hear about
9:03 am
something that my friend doug cass said this morning, correcting something i said which is that there's no sellers. he's saying listen, change the capital gains laws. why not the first? >> right. i mean, although there have been reports recently, certainly of a division within the advisory, the advisors that trump has on economics. those who adhere more strictly to the republican mantra of lower taxes -- >> right -- >> but not necessarily the spending part of it. and the spending side which steve bannon, his senior advisor embraced for some time. the and the question is where will they come down? wraen will the congress allow him to come down? >> doesn't spending dprom overseas? >> yes. that would certainly be part of it. bringing some of that. >> that's the goldy locks scenario since yesterday. >> i thought the infrastructure spending in some fashion is also given rise to the belief that there would be inflation,
9:04 am
hence -- >> and there's some believe that because if you believe there is not much slack in the labor market that things like infrastructure bring you more inflation than they bring you growth. i think. >> okay. i never to want root for inflation. i want to root for wage growth. if we can get wage growth in the country, it would be fabulous for retail. maybe that is to a degree what's happening, but, look, let's just face it. and there were some people debating on squawk, talking about how the people who think 4% may not be right. i am thinking 4% for next year. >> for next year? >> yes. i am thinking 4%. look, the guy is so far so, so pro growth. i mean, the guy is pro growth. i'm speaking of trump here when i say the guy. >> understood. >> the real donald trump. >> the tweeter in chief. >> hey, yeah, what happened this morning. >> not me. >> i don't think he watches. >> do you watch to see what he says now? >> you have to watch every morning what he says.
9:05 am
it can actually have market moving implications. >> explosive defwhat morning about flag burning based on the one tweet he made today. >> flag burning? >> suggesting that those who burn the flag should have their citizenship revoked, should serve a year in jail. and all the constitutional ramifications that that would mean. >> why doesn't he tweet that the he likes that steel stocks are down this morning? >> he might. and if he did, they'd move. >> he also had a tweet on his continued dislike of cnn and their coverage. >> that could be bad for the deal. >> thank you. and actually people say to me, you know, we assumed since he won that actually at&t, time warner is going to be fined. remember during the campaign, candidate trump said he would stop that deal. but with a tweet like that, he immediately reignites fears that he will actually look -- or have
9:06 am
his fcc and justice department look seriously at that deal. >> i can't disagree. >> do you think that butkis is a great american blocks trump today? >> you can block people on twitter. >> maybe he blocks him. >> maybe he reports him. >> yeah. >> it's crazy. i look at twitter every day. i mean twitter's got to have -- i mean, anthony, cfo, it's got to help him. >> i saw suggestions yesterday that there's been a bit of a step function in usage just because people need to know what he's saying. you disagree with that? >> i think 317 million americans ought to figure out what he's saying. >> every morning it's going to be us talk aboutings it i have a feeling unless they take his twitter account away again. >> they could spike here. >> they could. on the macro front, we saw oil down. >> yes. >> over the phoney deal we've been saying is phony forever. >> you see the dollar strong. interesting out of china today, over the last couple of days, guys, there's concern that the
9:07 am
chinese o authorities in their efforts to reign in capital flight are going to prevent significant acquisitions, cash acquisitions by chinese companies from taking place. that's got a lot of people's attention at least in the world i've paid attention to this morning. >> that's interesting. >> it's begun approval on hold if they have remaining capital outflow quotas of above 50 million, 50 million. remember, china's very large deals this year. and there's the biggest one pending, of course. >> wow, i've been putting together a list of companies the chinese might want to buy. aye been ending that list. >> this is not about a trump presidency, this is simply their efforts to stem capital flight and gain control. >> do you think that trump could slow impact growth, slow growth? what if he says right now, he comes out and says that carrier plant, it's not going anywhere
9:08 am
in indiana. when we start thinking that this great, you know, earnings per share move -- >> trying to remember what i was supposed to check on. i want to check on that. you continue talking, sorry. >> try to interrupt my train of thought. carrier, let's say listen, i've been in touch with greg hayes, the ceo, and it ain't going to happen. he say us the carrier plant ain't going to happen. they're not moving to monterrey. >> because of a quid pro quo regarding taxes. >> do people start thinking you know what, you can't cut employees or move factories and when you move a factory, i raise earnings per share. what would happen if we just -- if the -- if the job plight ended. that's how they get their insight. it's an interesting idea. >> as far as opec goes, jim, for the next 24 hours that is the driving dynamic? >> yeah. and you know, get fooled again, i don't know. i mean, they always seem to pull something out of the fire.
9:09 am
maybe they say in december they've got a better meeting. it's iran that we've not heard from. and then what putin is not on board. i thought putin was on board. it's just the story that's hard to cover. every day changes. there's too much oil. we're pumping a lot more. we're starting to come back. and that's major. we are swing producer again. >> yeah. >> ten hour meeting yesterday with very little progress. russia wants a freeze, saudis want a cut. establishing some cap for iran. it's hard as it's ever been. >> yeah, there's a lot of oil everywhere. we're not seeing that pick up in demand. there was a lot of stories about house fossil fuel is peaking, but natural gas, you have to separate our companies. the natural gas companies are doing well because they're exporting a lot of natural gas. oil companies, you can't make money at these prices. >> only the retail front as david said, tiffany up in the red mark. not as bad as expected and as for cyber monday.
9:10 am
data shows sales hit a new record up 10-2 to almost 3.4 billion on apple. out with a note saying he sees downside risk to current estimates for iphone says. on tiffany, down two, they're cautiously optimistic. japan was pretty good and the fifth avenue store, some disruption. although less than 10%. >> i think the real story here is you're beginning to lap easier comparisons. the flagship store was a big problem. now it's down to less than 10%. asia pacifics total sales plus 4%. this is one where it's not as bad as it used to be, new cfo in, stocks going to go higher. thor going higher, tiffany going higher. consumers spend. thor being big recreational vehicles. >> oh, i thought you were talk noah sind gar, the great pitcher. >> thor? >> that's what we call him. >> see i'm focussed on the stock thing. >> sorry. >> i don't know, it just got me. by the way, the adobe stuff,
9:11 am
it's so detailed. they're dealing -- they measure 80% of all online transactions, neu nerf, barr by, amazon fire, that's not the samsung thing. >> i understand. >> apple ipads. you see the ad for our alexa product? the alexa product? >> yeah, talk to me. i like that. >> remember we used to have that alarm clock in the morning with carl's voice. >> i love that. i love that. >> your voice. >> yeah. that would wake you up. >> yeah. >> whether you like it or not. there's no snoozing you, joe. >> no, don't hit that snooze button. >> no. >> and i think that was part of what you were saying. don't hate it snooze button. >> from tiffany to the cockadoodle-doo. >> get up, i haven't been sleeping for hours, get up. finally the president-elect announcing he'll nominate tom price as secretary of health and human services. surprise an orthopedic surgeon,
9:12 am
fierce critic of obamacare. servings as chairman of the house budget committee. a lot of discussion here about medicare and medicaid. privatization, what that would mean double the road too. >> i'm seeing upgrades of zimmer we are biomethodist, striker, today someone took j and j because of med tech. this guy, pro med tech. i mean, this is again, the guy -- medical technology. burned pressure. remember this, zimmer had a bad call. i mean, it's the hardest hit sector so far has been the hospitals which will suffer from a dismantling of the aca. >> and this relief for medical devices, this would be incredible. you really do have to buy zimmer. >> yeah. >> this is hard. >> it is hard. more reports that we will get treasury at some point during the week. >> will we get on twitter? >> maybe.
9:13 am
that's not unthinkable. >> why not? why do we have to deal with the media. go right through twitter. this is going to create lots of problems for the market. >> what is? >> the real donald trump. >> oh, i know, i think you're right. >> it is. >> the next four years we'll be sitting here many mornings talking about what it means. what does this mean. >> they have to get jack dorsey out, get someone in whose more media savvy. >> we need a trump tweet translator. this is actually what -- >> verified. >> yes. >> that's true. >> and sponsorship exclusive sponsorship on trump tweets. >> if you can do cyber security here. because if someone -- oh my god. >> if somebody takes over that account. >> it'll be like dr. strange love. >> it could be. >> the coca-cola company. >> when we come back, details surrounding at&t's new streaming service, including which music superstar is in the mix. also ahead, new york times mark thompson, his publication's
9:14 am
been under constant fire under the president-elect. premarket, transports by the way, two years ago yesterday set their last record high. >> wow. up. >> 20% for the year. we'll be back in maine. the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential.
9:15 am
9:16 am
9:17 am
. at&t set to debut it's new streaming tv service tomorrow. prices for directv now will range from $35 a month for more than 60 channels to $70 for over 120. the service will be delivered via the internet to smart phones and tablets as well as apple tv and amazon fire tv. creative pricing targets as well. named live a little, got to have it -- >> got to have it. and access to hbo and showtime five bucks each to any base package. but this is significant. we've been talking about it for a couple of weeks since we first heard wind of the 100 channels at 35. obviously not 35. now we know closer to 60 or so for that service at that level. but the question is, is this a robust enough offering that you really are going to see the acceleration of cord cutting that we've talked about so often? and many people believe yes, it will be. that the opportunity is there
9:18 am
now to capture more or less what you want of you. they don't have cbs right now, their working on it, but you've got the other networks. you've got espn, you've got a lot there. and this is going to be very interesting to see how it plays in the market. sling tv is out there. the sony view has been out there, hulu's coming out early with their over the top offering. my question has been, will the from live ration of these over the top offerings give people enough reason to say -- i can get what i need. i can put it together with the netflix or with my amazon and i'm going to be fine and i'm going cut my monthly bill by 10, 20, 30, 40 bucks. >> and where's my wi-fi. >> it's in your house. via your broad band. so your cable provider is still your broad band provide per. >> i love my package. now, now -- >> two streams by the way i think on directv. >> two different tvs. >> to get someone to cut their
9:19 am
current cord and shift, how hard is that? >> i think that's hard. >> i do too. now to get a younger person to be intrigued by this, still expensive. no cbs, no football. no afc football. are you going to live with that? i'm just saying this is -- i thought i was very surprised to see cbs not in it. >> and they will end up being in it. >> why would they cave? >> they're getting something. they're getting a decent amount. the question is at&t losing money on this? the razor thin margins that they're making money. >> i don't know, i don't know. when i saw this. i'm not as certain that this is the game changer. i'm just not as certain. >> what were the game changer look like if not this? >> i think that a game changer for people who are more -- who have had -- the current package far long time would literally have to be -- and i'll tell you why. i have the fios skinny, now i know this has more than the
9:20 am
skinny, but even that was kind of like i'm like the only guy until the block with a skinny button. >> right. >> this is not -- i don't find -- >> the neighborhood wants an extra 200 bucks a month, right, maybe? >> it's happening. this is a trend, it's moving at a relatively slow pace, but steady and picking up speed. there's no doubt about it. look at the espn that we talk about and the losses there. >> and how about taylor swift getting her own channel, right? >> is there any doubt that in ten years, everybody's going to be getting tv through the internet? >> no. >> so you've got get there some way. >> i don't doubt it, but i feel like to some degree right now, it's it the early bird special. you know, and maybe the price fits when you've been with your parents. learn from that side. i'm not -- >> what does mean for the content providers? do they lose out because the number of subs does go down because not everybody has to take them and what does it mean
9:21 am
for the distributors themselves? it's the key product. we know that already, of course it is, but can they make up for the loss? there is money made on the video -- >> i have time warner cable. i live in an unfortunate area. will they cut their bill? >> spectrum. >> owned by charter. >> will they cut my bill? >> maybe? >> really? >> that would be big. that would be big. big cash flow. >> visionary. >> autonomous cars. >> ai. >> terminator. coming. >> there's something. >> we don't have to worry anyway -- >> carl knows -- he's been listening. >> if i like david favor, i might order carl. >> you might. >> when become back, we'll get kramer's mad dash and count down to the opening bell. premarket which is steady today. more "squawk on the street" from the nyse, straight ahead.
9:22 am
and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars.
9:23 am
9:24 am
i. all right, mad dash for tuesday, it's never a bad time to talk about the largest cap company in the world. >> it's been stuck around 110. steve who's what a call by foe by recommendation and he has saided so many negative things about it. apple missed the next two quarters. next two quarters are at risk. this is all that kind of channel check stuff. my problem with this is that this guy has made a lot of calls. i like steve very much. but there is never any
9:25 am
verification in the sense that we're not going to hear from apple, but this will knock apple down. and apple has been kind of crucial this whole kind of benign rally. has kept apple out of the papers, let people focus on other stocks. this is going to put the pressure on apple. it'll move down, and i think people will say, apple once again is in trouble. >> so, you give yes dense to the analyst even though the underlying argument you're not a big buyer of so to speak. >> that's exactly right. i'm saying it is the to knock it down. i think he knows about the next two quarters point-blank. it's hard to figure out who the suppliers are, what they're up to, apple stock has been sluggish and it's easy knocked down. >> got it. >> all right. we got the opening bell just a few minutes away. stay with us on "squawk on the street."
9:26 am
9:27 am
♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here.
9:28 am
you're watching cnbc "squawk on the street." the opening bell in 90 seconds on this tuesday. already got the revised q 3 gdp which was to the upside.
9:29 am
consumer confidence in a bit. people though still focussed like a laser on opec and italian banks today, once again. >> i'm so glad you mentioned that because this referendum is going to come up. look, you have to understand this, this is the oldest bank in the world. anyone whose ever been to sienna where they have the bank. this is a keystone. this is the most important -- it's the thrd largest bank. they're not ready for a bailout if they need a bailout. they think that they have something, but the complications of their current scheme, really puts a lot of pressure on the stock. so just be aware, this weekend is important. i've used the back. you have to use the back. it's like the bank toufl use. they don't really have the same kind of banking system we have. i have to tell you, this is the oldest bank in the world. they're not going to let it go, but they do have to dilute it big time. it will not close. it will not close.
9:30 am
>> we don't know. what his plans are. if that fails. let's get to the opening bell, and s&p at the bottom of your screen, big board, brazilian based minor valet doing the honors. jerry veil. >> it's come back. >> and the nasdaq diagnostic company raising awareness for world aids day. which is coming up on december 1st. >> had a nice double work. people feel the chinese, really amazing. we have all of this talk about how president-elect trump might be tough on china and don't forget, we have big tariffs right now on chinese steel. so i don't know where the iron's really going to, boy, valet has been sensational. brazil has come back. >> for sure. atf emerging marketing, mexico since the election -- >> can't look at mexico. >> russia's up like five.
9:31 am
>> i've been doing work on russia and the winners in russia because i think that we are going to be far more putin, far less merkel. it's just going to happen. what? >> nothing. >> you don't think i'm right. >> no -- >> have you seen twitter? >> i think you may very well be right. >> merkel had a great relationship with obama. >> that could be dangerous. >> trump has a great relationship with merkel? >> no. i think everything points to the fact that his relationship is better with putin. >> well, i'll tell you -- >> and those of some of his advisors as well. that's the case, then -- >> general flynn. >> iffy look at the top of -- if you look at the top of europe, when you were in sochi. that was the last time. straight down ever since because of russia. you bring russia back into the council of nations, then europe has returns to some growth. i think it's really important. look, i don't like putin. i know he's a dictator, but i'm saying that we sided with merkel. and we slowed the european growth down.
9:32 am
merkel slowed european growth down. look at a chart of sochi. that was the peak of our relations with russia, then we hit a trough and maybe we go back up. not endorsing the man. >> understood, understood. reset didn't work out the way some planned. >> no. >> yesterday you had not such nice things to say about the bank downgrade. right? >> oh, they don't stop. i mean, at least key came out and said -- my problem -- look -- every time a fed governor speaks, you're going to get bids in the banks. and really some good pieces lately about how dodd frank just won't be enforced. i moo en, it's always been about enforcement. okay. you have have an act. you can have an agency. the agency can look the other way. that's what happens. i mean, when i studied a mrtive wall at law school, i was struck about the wide range of what an agency can do. fwhek aggressive or they can say
9:33 am
hey -- >> referring to the rules? >> yes, they can say hey listen, we think it's fine. we like what everybody's doing. it's the people you staff in the agency at the top, now the agency -- the bureaucrats stay, stay, stay, but you can create a lax and lasting atmosphere. >> while you're talking, steve, showing up at trump tower. >> really? >> yes. a lot of focus on him and those -- he just walked off camera i'm told. there he is. >> there we go. >> dinner with romney tonight. is being reported. as the feud over who -- >> polo. >> i'm in midtown tonight. won't be hard to get around. i'm going to go to brooklyn. >> circle the trump building. >> we'll go to brooklyn. did you hear -- there are reports of how much it cost per day for new york city. >> oh yeah. >> to maintain this. >> and that's not going to stop. >> no. >> we're going to get it back from the federal government. >> yeah. >> yeah, but he's going to
9:34 am
charge the secret service 3 million bucks to be a tenant in trump tower? >> really? >> maybe a market rate at least. like a cut. give them a discount. >> he loves polo. and we know he loves the 21 club. boy, he could throw business to somebody and make a reputation, you know. steak house. >> i wanted to hit media a little bit. as we move almost into december here. certainly an expectation that you're going to see at some point the cbs viacom deal, or at least talks pick up. >> what's the deal? >> haven't yet seen any real talks between the two companies, but what i can tell you is last wednesday, viacom did make a management presentation to cbs. kind of just -- they've gotten a conference room, viacom laid out all of the reasons or all of the things they're thinking about at the company. and their strategy and how things are going. all of this designed to try to
9:35 am
elicit from cbs a bid that will be a premium bid as opposed to perhaps the market bid for viacom. will it succeed? we'll see. this process doesn't get going until cbs makes a bid for viacom. that has not happened. the only thing that has happened in that management presentation again a little less than a week ago by viacom to cbs. we'll be seeing in monitoring and the key question for nervouses guys, does cbs make an at-market deal arguing that simply the benefit of the synergies that will occur are enough that viacom holders should feel good about a potential transaction or does viacom argue that hey, we're not a bad thing to have as diversification away from just sports programming and affiliate fees. and so, you should pay more for us including a premium. we'll see how it ends up. >> i don't know. i mean to me, viacom not a great
9:36 am
bid. now, i've got to tell you we're in a tom price rally now. every day there's a -- tom price, look at these drug stock stocks, they're all flying. because tom price is an orthopedic surgeon. this is typical of this market. orthopedic surgeon, orthopedic surgeons, what do they do? they do knees, right? hips. let's go buy companies that make knees and hips. i mean, we suspend any judgment. it's like, tom price cannot go and say listen, we're going to buy u.s. government's going to buy a lot of hips, but it doesn't matter. i mean, this is a market that believes in every appointment. every. >> yeah. >> stryker, all close to the top. proceeded only by tiffany by the way. >> right. >> everybody gets sigg in a here. that's where we are. i mean, is he going to like
9:37 am
reimburse botox? i mean come on. >> i don't know. >> this guy is just -- all he is going to be is a secretary. >> yeah, but it's going to take a long time -- >> thank you. >> to repeal and rep place obamacare. >> yes. >> it's going to take years potentially. >> people are going to lose a lot of money playing this game. this game is a mistake. >> see where we end up. >> by the way, no real impact. we thagt neighbor tweet from president-elect about his lack of love for cnn would really impact shares of at&t and time warner. not seeing that. to refresh, the president-elect donald trump this morning said, i thought that cnn would get better after they failed so badly in their support of hillary clinton, however, since election, they are worse. there's been concern if you recall because during the campaign he said that he would act to block at&t's plan to acquisition of time warner.
9:38 am
many thought that was because he's frustrated with cnn's coverage and take it out on them. >> there's no trust department, they look into things and kind of independent. >> after initially a lot of fairly strong belief that this thing would face significant opposition, that seemed to wane and investors started to get on board with the best deal's going to happen. >> yeah. my thinking. i don't know. i just think -- >> and it should based on at least the history of any trust law for a vertical integration. >> maybe just that has in for cnn. >> well, he's been critical of the times as well. speaking of which -- >> failing "new york times." >> the new york times, we are going to talk to mark thompson. >> that's 30 points for the dow. >> united health up 2.5%. >> unh did not participate that nch obamacare. >> they're not too many exchanges. 58,000 lives. >> and they have a great quarter
9:39 am
and they have a great -- big data company. they are ral machine learning big data company. they have a fantastic business and that's -- i've got tell you, i'm seeing nursing home companies, i'm seeing companies that are involved with real estate investment trusts and health care. they're all going up. i mean, people just think a magic wand is waved? and we take earnings per share? i'm not saying it's tough, it's a little aggressive. >> and as for tiffany, the conference call did address directly the affect that trump security has had on that flagship store on fifth avenue. take a listen. >> given the close proximity of our fifth avenue store to the trump tower, we've noted that recent election-relate activity has caused minor disruptions to pedestrians foot traffic around that store. federal, state, and local officials and tiffany security personnel are all doing a fabulous job trying to minimize any disruptions. however, given the importance of the holiday selling season to
9:40 am
our flagship store, remain understandably cautious as to how this situation might impact steals over the coming weeks. >> sheesh. understandably cautious. >> yeah, when you go up there -- it's not a ghost town, but it's really hard. >> minor disruption. >> minor disruption. harry winston was filled. >> i stay away from 56 to 58th street, fifth avenue. just stay away. >> we are not shopping together. >> no. we won't. never mind, i was going to give him the name -- >> short hills, brookfield. >> yeah, they know me. fabulous. the tiffany down the block here. one of the great tennis bracelets for my daughter for graduation. >> there's a tiffany down the block? >> they probably know you. television across the street. david has never shopped in his life. >> rare -- >> dave, did you know that kay and zails are owned by the same company. >> yes, i did know that. >> every kiss begins with k. >> and do you know who owns those companies? >> yes.
9:41 am
>> okay, good. >> i do. >> signa. >> i've got to tell you, i went to west elm again the other day. >> reporter: i'll take jewelry chain. >> i was going to get it. >> may you never, ever go shopping with me, it may be like a twilight zone experience. >> it would be a frightening thing. >> like the walking dead. you walk in it shall dif to admit we are serious about et whole thing. let's get to bob dow moving about four points, good morning, bob. >> mixed opening, but slight change in tone that we've seen recently. let me show you what's going on here. obviously energy is weak because of the understandable confusion about what's going on with the opec meeting whether there is or is not an agreement, we don't know yet. we are starting to see cracks in the leadership groups. they have been material stocks, industrial stocks, and bank stocks. you do see small gains again today. i want to show you the big material names. you remember these stocks had huge run-ups on infrastructure plays. immediately after the election. these started cracking last
9:42 am
week. essentially we stopped going up last week in the middle of the week. and it's been generally on a downward slope today, and that's accelerating now today as you can see the steel names and why shouldn't there be? look with the exact names have done since the quarter began. do you think u.s. steel is 70% gain and stock surprise justified on an infrastructure play that may not happen and will not happen until 2018? any infrastructure of the 2018 play. look at enoughport, mark marietta, there is a big, big infrastructure play, and nothing's going to happen probably in 2017 on any of these in terms of shovel-ready projects, but other parts of the market that have cracked already. so pharmaceutical stocks had a few big updays on hopes of lower regulations. pjp that essentially has been on a gentle downward slope. as you can see here today. that downward slope in the actual chart. bank stocks, of course the big gains were really in the first week. there's your kbe, that's the
9:43 am
bank etf, right after the election, that's a one month chart and essentially we've been sideways for the last week and a half or so. the big gains you really had to do it in the very first week and as we saw leveling out, in some of the interest rate plays. that's also started moving sideways right now. let's move on, talk about tiffanys here. the big thing of course you heard what was going on. nice speed for them overall. that stock moved up again, nice move at 6%. leading in the luxury stocks. here's the constant currency store sales which was impressive. worldwide down 3%. that doesn't sound good, but they were expecting almost down 4%. that's a big improvement. america's they were expecting down about 3%, only down 2%. this is better than expected. japan was up 2%, china had double digit gains, europe down 7%. that was the week one. although the uk wstrong there. overall the trends are improving over last year and better than everybody had anticipated right now. so the dow, right now, down
9:44 am
seven points. carl, back to you. >> thanks bob. rick santelli as well check in on the bond pits in chicago. good morning, rick. >> good morning, carl, well yesterday rates were down a bit. today they're up a bit. flattening at the upper end. well talk about the nine section, looks like it, ten years close and a tight range between 2:30 and 2:36, 2:36 the high water mark. now up to 211. it's interday high has been 25. this goes back to the late '80s per euro zone and it continues to underscore not only the per received different directions of the central banks but nals a way handicapping the growth activity. if we look at the july -- i mentioned it earlier, july 2015 tenure, you could clearly see that this market is stringing along in a way that seems to be
9:45 am
not similar to august where we consolidated and rates moved tighter. it's back and slightly below 2%. read the publications with the meeting next week and the referendum coming up. basically dropped a huge hint that he may have to buy them. sure that may stabilize it and bring yields down, it doesn't fix anything, how many securities can you buy? how long does that fix work? we've learned not as long as central bankers may think month to date to the dollar index. now it's flapping but what can zoom, zoom, zoom is the next chart. the dollar index is the mere imanl of the dollar. look at a three-year chart versus the dollar. see that 105 level? that's like 100 was. if you knock and go through on this one for the third time, look for some follow through. that should carry you well above 102 in the dollar index. carl, back to you.
9:46 am
>> all right rick, thank you very much. rick santelli. still to come newspapers and media in the age of trump. stay tuned for a first on cnbc interview with new york times ceo mark thompson. back to 2200. this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.
9:47 am
approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget.
9:48 am
all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪
9:49 am
in the age of machine learning and artificial intelligence, you co-wrote terminator. should we be aware? >> stost funny. steven hawking and so many of the top theoretical and physicists in the world basically said, you know what, between ai and robotics, we
9:50 am
should be afraid of this. and i honestly laughed when i read that. i said if you'd only watched, you know, the terminator in 1984, you could have been away ahead of making this announcement in 2015. people aren't really examining the ethics of this or the morality. they think all progress is good. well, all progress isn't good unless people have considered the ramifications. i mean, whether that's the number of people who will be unemployed because if ai and robotics. what are they going to be doing? and the answer you commonly hear is star trek, just send them to other planets. well, that's not going to happen in 20 years. >> wow. she covered everything from universal basic income right there to musk and mars, big questions that have been asked for a while, but are being asked more. >> too much, the shooenls are too smart. >> well, we're getting there. it's going keep moving responsible ai is a big concern of a number of people. >> i am worried. i've talked to enough people who are smart and insightful who are
9:51 am
worried also. they are genuinely concerned. >> saves us, john connor, we're okay. >> supposedly, yeah. >> but then who? who follows him as well? >> i have to go back in time. i don't know. i just believe that there's another john connor. >> it could be 20 years from now. it could be more, could be less. at some point the machines are going to exceed our capability of understanding because their intelligence is going to exceed ours and then all bets are off. not no to mention robotics. >> watson okay? >> it's good now. >> pung watson can turn? >> totally. >> watson can turn. we were just talking about alexa. viewer writes in and says that he heard me say alexa, and in his house, said, i don't understand your request. so i mean, they're always listening. that's the thing. they're always listening. >> 1984. >> it's going to happen when somebody does something bad when alexa is listening in their
9:52 am
house. are cops getting that from alexa? >> alexa hears it, alexa, can you get -- >> does amazon keep that? >> does alexa get the miranda warning? >> maybe. >> maybe used against alexa. >> maybe alexa can stop before it happens. >> entitled to a order. i've seen that law and order. we'll get stock trading in adjust moment. don't go away. al with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement
9:53 am
with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪ anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird.
9:54 am
9:55 am
♪ ♪ time for kramer and stock trade. >> i want to warn people, the trump rally was this opec rally. believing that opec would have a deal and remember when the oil dropped to 4243, saudis said no, we have it. we have it. the deal seems to be of long shot now. and a lot of these oils went up tremendously. so just be careful. this is day one of a decline. and you don't jump on day one of the decline of the oils. let them come in if you haven't sold any yet. maybe do some trimming. >> but you -- >> i don't think there's a deal. >> really? >> i think they will say --
9:56 am
look, they keep the balls in the ear. but at the same time, this rally was a very convincing rally. and a lot of the oils went up tremendously. and they're going to get back their gains. they're just going to get them back. >> amazing. what's on mad tonight? >> we have the best performer for which is recreational vehicles. look at that stock. dho. and epr properties which did a great deal and they have stock coming, be careful. real estate investment trust. i don't know if you know it, the demographic -- people love to have these recreational vehicles. they go to the penn state game and park them and go to the michigan game versus the big michigan-ohio state game this weekend. this is a millennial thing. and that's why it's up. people don't believe it. but i love this group. by the way, they also make the airstream. it's so cool. >> really? >> who doesn't want an airstream? >> camping world seems to be doing okay. >> yeah, absolutely. >> but watch tonight. boy, they have a good business
9:57 am
model. twitter's up three cents. maybe tonight isn't the day to tweet about the carrier plan. stay tuned, this guy can slow growth with the tweets. >> jim, see you tonight. >> mad money at 6:00 p.m. new york times ceo mark thompson, don't go away. our busy when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com.
9:58 am
u.
9:59 am
10:00 am
♪ ♪ good tuesday morning, welcome back to 'squawk on the street." markets this morning, looking for some direction. of course, as more and more skepticism begins to surround the outcome of an opec deem which we are looking for tomorrow at that meeting in vienna. for now, crude though back to almost 45 is an almost 4% decline. economic data, rick san telly is going to join us here, rick. >> a blowout november confidence number. a blowout. 107.1. 107.1. this does capture some of the trump momentum. we are looking for a number around 101, last number was shy of 99. so 107.1, barn buster, and we
10:01 am
should watch carefully to see if this breaks. if the treasury is out of their range, watch 236 and of course dollar index right around 101.5, back to you. >> strong confidence, rick, thank you. and on top of that, we got this morning's second quarter look at -- a second look at third quarter gdp revised up to it's strongest expansion in two years. steve leaseman joins with us more, steve. donald trump is inheriting what looks like a stronger economy. >> there's no doubt in the economy's been accelerating, but you have to put it the in context, it is a bounceback from relatively lackluster numbers earlier this year. the first half of the year managed barely 1% growth. now we have this revision upward to 3.2% more than expected from the original and it's powered almost all by the consumer. take a look at what changed from the initial reading to the current reading. there's the consumer spending up 2.8% up 0.7 points to the prior
10:02 am
read on this. and that comes with more durables, more services, less non-durable spending, automobiles helping out a bit. government though revised lower business investment. revised lower. those two areas right there by the way, folks are two areas that donald trump can have a say on in the future. housing investment though, revised to be not as those originally reported. that helped and inventory, we have gone through a big cycle change here. very importantly the running off. we have very high inventories with running them off recently. economic outlook for economists out there. barkley says uncertainty regarding the forecast is higher than usual given expected policy changes under the administration. pnc, more upbeat. there is the potential for so much stronger near term growth if president-elect donald trump implements fiscal policies, but john and rvq, not so sure he points this out. we maintain the acceleration is
10:03 am
severely constrained by how close the labor market is to full employment. that's something to keep in mind. also keep in mind, we get a broad measure, the public companies and the private companies of corporate profits, they surged. 133 billion in the third quarter, up 6.6% to the highest level since the first quarter of 2015. all of these issues, the outlook for the economy, outlook for fed, we'll have a chance to put them tomorrow right here on this show, at 11:00, robert kaplan will be joining us live, sarah. >> looking forward to that, steve, thank you. >> yes, i bet you are. >> always with the fed speak, steve leaseman. joining us now to discuss how that this will impact the mashlgts, groebl head of market economics and global quantitative strategist at wells fargo, gentlemen, welcome to you. paul, does this number's gdp along with some of these confidence surveys we're getting post-election make the prospect of those who are calling for 4%
10:04 am
economic growth next year more realistic? >> i don't think we're going to get 4% economic growth next year, but we're going to get growth potential. we think about 2.4%, it's about 1.5. what was good about these numbers was we saw profits increase in the most recent quarter. and we saw a lot of consumer household income. so flost wonder then people are confident. their income's are going up. corporates are feeling more buoyant not just because of perspective changes in the future, but they're making money. profits are going down for the quarters. now they started going up. that's a good sign. >> with the economy improving and profits improving, into the election, and now this burst of optimism surrounding some progress policies we could see out of a administration. i wonder how much of it is all factored into the markets which are running near record highs. >> that's a great question,
10:05 am
sarah, and that's the tricky part. markets run on expectations and what we've seen is, you know, before the election, s&p was below 2,100. forgotten about that just label the. we were below 2,100 a few weeks ago. i think we have to keep in it in perspective. a lot could be a positive. we have a higher target for the end of next year, we have to be cautious as to how quickly we're seeing the gain zplps do you have to be cautious about some of the looming uncertainties which appear a lot larger because donald trump had some fairly unknown positions. the fact that we wake up every morning to a new twitter tantrum about god knows what? does that factor in at all? is that a risk? does that elevate the voltyty for the market kps. >> we've expected that for some time. due to central bank policies, where we are on the economic cycle. it's just one more factor ma may be underpins that volatility. our best way to cut through it
10:06 am
is to focus on the sectors we liked prior to the elections that will benefit from the policies. think technology, think health care, think discretionary industrials, and the most recently we like financials. >> technology hasn't been that big of a game. underperformed since the election. is that a buying opportunity? >> exactly. that underperformance is why we think it's a buying opportunity. i think there's a lot of concern around immigration and what it might mean for large multi-national companies. we think that spending will be one of the biggest areas where companies invest. >> paul, what about the economic outlook incorporating some of those uncertainties beyond the tweets, there are two vacant spots on the federal reserve. we don't know who the treasury secretary is going to be. what happens in 2018 to janet yellen. how the trade rhetoric heats up and what they could be. gio politics, the list goes on, how do you factor that? >> it's a big long list. i think what people, clients i talk to are most concerned about
10:07 am
is the trade. because it seemed very likely that mr. trump will do something. i think 34 investors think he bha something that's big and splashy, but will not have that much economic impact. if that conclusion is wrong, that means we're going see lower growth and higher prices. and that would be a dampener for the markets. i think that's the major uncertainty the investors around the world are worried about. in terms of the fed, well the fed's got his mandate, and so personnel may make little bit of difference before the election trump, the candidate, wanted high ore. but does trump the president want higher rates? some talk that he make the fed's personnel more hawkish. that's not necessarily true. and i think the fled say here's the forecast, here's our mandate, here's what we'll do. i don't think the change of personnel is going to make a huge difference to what they do. it's really the economy that they're going to be reacting to. and the economy's going to be strong, and so we're going to see higher rates next year.
10:08 am
>> i was just wondering about that. steve's going to talk to rob kaplan tomorrow, i think, but this idea that a stronger growth and profit picture could we see more aggressive fed? when it comes to hiking rates next year? >> we think so. and we increased our forecast for one more rate hike next year and one of the reasons we hadn't really been concerned too much about rising rates is the market wasn't really expecting a lot more rate increases and the fed was kind of held captive if you will. now we've got something where it's starting to tilt kind of the other way where the markets may be expecting a few more rate hikes than the fed which is thinking lower for longer and in this regime where inflation was going to remain low for some time. and the fed actually ends up a little bit behind the curve. i don't think we're there yet, but that's one risk to watch. >> we'll be watching those inflation numbers, guys, thank you for joining us. paul, and samir. meanwhile, the trump
10:09 am
transition team making one announcement this morning. several more expected to follow. morning, john. let's talk about the one announcement that we've got son far which is tom price and orthopedic surgeon, veteran republican member of congress from outside atlanta, he is the choice to be the secretary of health and human services. now this is a very ideological pick, someone who is committed to getting rid of obamacare. and it's suggested donald trump is serious about that as well, but there are several flash points that we can expect both internally within the administration and with the congress. first of all, tom price has favored the shift, conversion of medicare to a voucher system like paul ryan. donald trump as a candidate said that he was opposed to changing medicare benefits. don't know how that's going to come out.
10:10 am
secondly, tom price favors the conversion of medicaid to a block grant program. that will get tremendous resistance from democrats in congress, maybe some republicans as well. and finally, even short of that conversion of medicaid, he has favored the rollback of the medicaid expansion under obamacare. this is something that has been opposed by some republican senators, shelley of west virginia for example, that's a lot of medicaid patients in her state. mike pence as governor of indiana, expanded medicaid, unlike many oriole park republican governors. we're going see debate about all those issues. there are other potential cabinet members we may get this week if not today, you've got a front runner as i mentioned, steven ma knew chin for treasury. john mattis and ross and the secretary of state battle continues to play out, bob koerk the chair of the senate foreign relations committee will be here, excuse me today. and the president-elect is going to have dinner tonight with mitt
10:11 am
romney, the 2012 republican nominee who remains in contention for secretary of state, even though some of donald trump's aids have been trashing him, including former campaign manager kellyanne conway. >> finally john, we had a discussion this morning with jim about how m tweets about flag burning. tweets about cnn, tweets that quote a 16-year-old t to bash a television reporter. what's your take on that? >> look, donald trump, the issue that -- during the campaign that was he has a thin skin. there is no doubt that that is true. and so i think his ability to restrain his impulse to respond is not very great. i'm not sure that i see any particular grant strategy and rally a space to try a discredit by his critics and cast down the arguments against him.
10:12 am
that i think that's something that america is getting used to and will get used to for four years unless there's some change of heart and aids say mr. president, you can't have that twitter account anymore. >> we'll find out. nbc this morning is saying that a thank you tour will begin on thursday with a rally in cincinnati. we will find out. john harwood outside trump tower this morning in midtown. when we come back, a record breaking cyber monday. fresh data from adobe showing that online sales had it's largest day in history. we'll talk to the vice president of consumer insight at adobe straight ahead. then later c over the "new york times," mark thompson will talk about media, obviously president-elect trump and a lot more when "squawk on the street" continues.
10:13 am
10:14 am
10:15 am
let's see what worked and what didn't to capture consumers. mickey a the marketing and customer insight vp. we are joined now to discuss the numbers. is this the final read. she, she -- so excuse mep is this the final read on the adobe spending numbers? >> it is, we just got in our numbers early think morning from cyber monday and we do see that
10:16 am
it was about $3.54 billion spent. so the biggest online shopping day in history. that's about 12% higher than last year. >> what accounted for the big rise? is it the deep discounts or it was just more consumers moving away from the stores? >> i think it's probably combination of some pent-up demand. we did see lower sales in the early november time period. i think people were entranced by what was happening with the election. and we saw slower sales that the point. and i think they just built-up demand. there were deep discounts offered by retailers this holiday season. and many of those deep discounts didn't start unlike last year where they started earlier in the season. they started in the holiday season and yes, you're right, we are seeing shoppers shift. less shoppers in store, more shoppers online. and these numbers absolutely reflect it. we had an anonymously strong holiday weekend. in terms of online sales. >> so mickey, talk through some
10:17 am
of the winners and losers. we keep hearing that the big box retailers like walmart and target are finally figuring out their e commerce strategies and it's starting to work. did you finded that? >> yeah, we did see that the big retailers are growing -- they grow at about 2.5%, two and a half times excuse me the rate of smaller retailers. i think that they have the ability to offer deep discounts. they have the ability to have deeper inventory. so there's more sell through. and they have -- they've figured out the key which we're seeing is really the combination of social and mobile and e-mail. and really optimizing those channels and those experiences. and so, the retailers that are figuring that out which tend to be the bigger ones earlier. are seeing 30% revenue higher than those that are not optimizing those channels. and i think that's really the key. >> i'm curious, you know, given you've been looking that the data for a number of years now. they stand out to you this year in particular as opposed to
10:18 am
previous years? >> well, there is one thing that has been trending, but it really caught up this year which is the mobile commerce. we have seen traditionally a lot of people using mobile phones, tablets to access to look at items online. a lot of times they were actually going on their desk top to still purchase. we're starting to see that catch up a little bit. we actually saw our first billion dollar mobile sales day on black friday. so we had $1.2 billion conducted on mobile devices. whether phone or tablet. and that's a huge milestone for mobile. there still is a gap between mobile visits and mobile sales. because a lot of sites still don't have the mobile experience optimized. so it's not necessarily as easy to actually finish your transaction online. but those that are getting it as i said before are seeing outsized returns for those investments. >> which product categories have the deepest discounts? >> we saw toys and electronics as usual having very, very deep
10:19 am
discounts. especially the electronics area, want tvs and tablets in particular we're showing deep discounts. i think in part because there is not -- there wasn't necessarily a new technology coming along and so what's happening as we're seeing the second and third year of some of the 4k tvs and these tablets. so we're starting to see 20 and 25% discounts on some of these technologies that a few years ago were commanding the premium prices. >> i mean you guys do such granular stuff here. the latest out of stop risk toys, what did you find, what does that mean? >> what we found is that there are always these must-have items throughout the holiday season. anyone ten done classic has gone out of stock quickly. and famt, playstation virtual reality has gone out of stock.
10:20 am
that's an interesting retro back to the future and the cutting edge future. we're seeing a lot of online buzz around the new home apps. amazon echo, google home, and then from toys, pokem oorks n sun and moon is continuing to generate a the love coverage. and there's a big risk to that going out of stock. if you see that, definitely grab it if that's on your shopping list. also seeing -- yeah, a lot of the traditional lego and barr by being hot sellers. but leg go in particular, people are looking for the star wars edition. so again, if that's on your shopping list and you find it available, grab it, we've seen the discounts as low as they're going to go this season. so it's the time, you know, so now it's about availability and grabbing what you can. >> thank you for joining us with some of the color behind those numbers this season. mickey from adobe. >> thank you. when we come back, topping your wish list this holiday season, we'll break down what we can expect from tech giant
10:21 am
apple. meanwhile look at shares oftiveny leading the s&p in the early going this morning. luxury good retailer beat on the top and bottom line. same store sales dropped by two. that's about half of the expected decline in the company says it's remaining cautiously optimistic about improving sales. a lot more on squawk on the street. ♪ 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 you're looking for, an aarp medicarecomplete plan insured through unitedhealthcare. what makes it complete? it can combine medicare
10:22 am
parts a and b, which is your hospital and doctor coverage with part d prescription drug coverage, and more, all in one simple plan for a low monthly premium or in some areas, no plan premium at all. an aarp medicarecomplete plan offers you benefits like an annual physical, preventive screenings and most immunizations all for a $0 copay. you'll also have access to a local network of doctors and much more. you can get routine vision and hearing coverage, a fitness membership to help you stay active, and worldwide emergency care. for prescriptions, you'll pay the plan's lowest price, whether it's your co-pay or the pharmacy price. or pay zero dollars for a 90-day supply of your tier 1 and tier 2 drugs, delivered right to your door. in fact, our medicare advantage plan members saved an average of over $4,500 last year. now is the time to look at your options. start getting the benefits of an aarp medicarecomplete plan
10:23 am
insured through unitedhealthcare. unitedhealthcare has been helping medicare beneficiaries for over 30 years. we'll connect you with the right people, help schedule your appointments, and with renew by unitedhealthcare, you can learn about healthy living and earn rewards, too. remember, medicare open enrollment ends december 7th. call unitedhealthcare today about an aarp medicarecomplete plan. you can even enroll right over the phone. don't wait. call unitedhealthcare or go online now. ♪
10:24 am
10:25 am
and favoring apple and customers are favoring apple. so i think what we'll see is will have a spot and competing in androids where it's still tough to get your hands on whereas apple you can walk into a store, play with it and people are familiar with it. and it's probably going to do much better. >> ahmed, your reaction to that and what has happened to your expectations for unit sales in q4? >> yeah. you know, i wouldn't disagree with that. if you think about apple, the reason you buy an apple product and iphone is not the hardware itself, but it's entire ecosystem, the ios, the apple app store and so on. it's ecosystem you're buying into. and you're seeing challenges from samsung to the phone right now, but that's a hardware discussion. it doesn't change the value
10:26 am
proposition apple has as ecosystem that provides to the customers. i don't think that changes with a pixel or some other android competition. listen, the story for december quarter remains, there are more supply constrain versus command driven. that is going to be the biggest focus. we could end up seeing something for the units for december. but the big excitement on apple from a stock place is the iphone 8 it's the next launch that they have and how much you'll get over the next 12 months. >> yeah. what do you make of the supply constrain constraints? is that just par for the course every time we get a new one? iphone 7 plus is selling out. >> you can find it in the stores, but it's constrained.
10:27 am
we did some international checks. we did some checks in india which is a big market for them. the foreigners basically have a stock in a lot of places. so essentially it is a supply constraint game and whenever they launch a new product, we're going to have these issues. and going into next year as ahmed pointed out, we're going to have a big cycle and that's why a lot of that is moving to. so i think this quarter apple's guidance implies what 77 million units. they come in probably towards the upper end of that. we'll see how the demand holds up, but for now it's strong. >> yeah. ahmed, you talk about the ecosystem and we know the growth that we're seeing in services over there. but every time i hear that, i also see a survey and i'm looking at one today, and admittedly it is just a survey, but looking at eroding willingness to use for instance apple pay to pay for something. are you seeing any of that? >> you know, apple pay i'll
10:28 am
concede our data workers can assume the same thing which is you have this initial ewe forra apple pay usage and it's going to tape off. the part that's unclear to me -- or i think probably to everyone and i suspected the maybe answer is people aren't using apple because they don't like apple's products and services, but the availability isn't as big and material as you'd like. it's a bit of a once you install more kiosks and accepting it, you could see an uptick, but so far, that's the issue you have. >> yeah, chicken or egg kind of thing. i like cars and chargers. we'll see what happens in the holiday season, good to see you both, thanks. >> absolutely. >> thank you. when we return, the state of news and media in the age of donald trump. we'll talk to the ceo of the "new york times" mark thorpson straight ahead. i've invested a lot in this game
10:29 am
and the returns i get out are measured in reps, huddles,bright lights, competition and games played. at td ameritrade we believe the best investments are the ones that matter most to you. keeping the power lines clear,my job to protect public safety, are the ones that matter most to you. while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it.
10:30 am
public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california. good morning everyone, i'm sue herrara, here is your cnbc
10:31 am
news update at this hour. authorities suspending rescue operations at the site of a deadly charter plane crash in central colombia earlier today. because of heavy rain. they're confirming at least six of the 81 people on board the plane have survived, including three players from a brazilian soccer en route to a match in colombia. no indication yet on what caused that crash. north korean state media releasing photos of kim jong-un visiting the embassy. paying homage to the late fidel castro as part of a mourning period. castro died on friday. president-elect trump today nominating an obamacare critic as health and human services secretary. if approved by the senate, georgia representative tom price will lead the department. trump calling price a renowned physician in a statement, one who's also earned a reputation as a go-to expert on health care policy. and a luxury high-rise in san francisco may be sinking
10:32 am
faster than previously thought. the european space agency used special satellite imagery to help engineers fix the 58 story millennium tower which opened in 2009. the data shows the building has sunk about 16 inches into landfill and is tilting several inches to the northwest. that is the news update this hour, i'll send it back downtown to you guys, sarah. >> all right, sue, thank you. sue herrara. president-elect donald trump and the "new york times" feuded throughout the campaign and have continued to do so since election day as mr. trump has said the paper is losing thousands of subscribers because of it's election coverage, but, since the election, shares of the "new york times" company are up nearly 17%. and other newspaper stocks are booming as well. with us now, the ceo of the "new york times" mark thompson and our very own joulely borston, kick it off. >> thanks so much. mark thompson thanks for joining us today. so mark, president-elect trump has repeatedly referred to the
10:33 am
"new york times" as the failing "new york times." what does this mean for your business? >> well, i mean, firstly, i mean the facts that are that since the election, we've seen an extraordinary surge in subscriptions, both print and digital, but i guess particularly digital. and in the first 18 days up through saturday, the first 18 days after the election, subscriptions have been up ten times on the same period last year. we're seeing a 10x net increase in subscription. you know, far from failing, we're seeing a remarkable response by new subscribers who like the kind of journalism independent, without fear or favored journalism, that the times represents. >> do you think you'll be able to hold on to them or maintain that kind of subscribers growth once the heat around the election has died down? >> well -- i mean look, i mean, fundamental level, none of us know where we feel in
10:34 am
unchartered territory in u.s. politics, and in the new cycle. traditionally after a u.s. election, there would be a quiet period, but there was a unique president-elect, the transitional process is far more controversial and is offing much more public interest than is traditionally the case. i think the i believe it's likely this new cycle will continue to be very lively through and ynd the inauguration. i think the interest will be there. i think the key thing, we don't know precisely, obviously, you know whether this new subscri subscribers will be long-term subscribers. overall we're seeing churn for the times. so the number of people net leaving the times reducing over time, we're seeing less, less particularly on the digital side. i think the fundamental point though is that what we're seeing, i think, is a public response to a certain kind of
10:35 am
truthful journalism which in an age of fake news, i think makes more and more sense. and i expect that interest and that support for the journalism to continue. >> you mention fake news, there's been so much attention on the role that social media has played in this political cycle and also how social media helped the spread of fake news. how does the rise of social media's key force in journalism and also fake news chaeng your approach? >> well, i want to say about social media, it's that social media benefits the professional fact check journalism as well. we're very, very present on facebook and twitter and other social platforms, but clearly it's true that these new platforms, these relatively new platforms make it possible for almost anyone to publish almost anything they want. and that's led to a lot of, a lot of noise in the system. i'd say two things, firstly, the presence of fake news actually
10:36 am
underlines the importance of having flourishing, completely trust worthy news institutions like the "new york times," and secondly the fake news issue is no more important than something else which is holding politicians to account. one of the fundamental tasks of journalists is to make sure that the statements of politicians up to and including the president are held to account. and we regard our duty as holding politicians to account as being absolutely central to our mission as well. >> mr. thompson, it's david faber, you've said many times of course that the "new york times" has a compelling digital revenue story to tell. you've been telling it. print advertising though continues to be a very important component of your revenues. and we know from the results from you and others in your industry last quarter, it is not a good story. are you expecting to see the continued declines in print advertising that you did last quarter? >> sure, i don't -- i don't want
10:37 am
to give any fresh guidance today. you'll recall that in our last earnings call, we said we expected similar trends in q4 to those we saw in the third quarter of the year. i'd point out that today's print advertising at the "new york times" is only about a fifth, just over a fifth of our revenue. because of our pivot into digital revenue. i absolutely regard print as an physical "new york times" as the very valuable thing. but it's a small part of our economics. >> right. when it comes to the other side of the balance sheet or the cost side, you continued to cut costs. is that something that's done at "new york times"? you feel like you've sort of right sized your cost structure given the revenue opportunity? >> no. although we've made considerable cost savings over the years, we think we've still got opportunities to reduce our
10:38 am
costs without damaging the fundamental quality of the journalism and the product we offer the public. that means we have to trade carefully. it means there are sometimes difficult choices to be made. but, i mean, in our strategy, we both have invest in the digital future, we have to put money behind new initiatives and new kinds of story telling, at the same time, we have to constantly look hard at our cost space and you'll see us in 2017 continuing to bare down on costs as well. >> mark, back to the election for a moment. a lot of the investors that we talked to, we've been watching this remarkable rally and stocks after the election, they say they hear a more toned down rhetoric from donald trump starting on election night. and going through to your meeting. your much hyped meeting and editorial board meeting on the record with president-elect trump. we've all read the columns and the news briefs that came out, what was your impression of him? meeting him personally after all the drama that came before it? >> well, last tuesday was a day
10:39 am
which began with the president-elect tweeting about the failing "new york times." and he said he left us after we had lunch with him talking about the "new york times" as an american jewel. a world jewel. so i think what i would say to both personally and also i think collectively, we're hearing pretty mixed messages from the president-elect about the "new york times." praising us to the skies, but also saying that we're about to go out of business. others will have to judge more generally how consistent his messages are. i mean, what i want to say, it's the fundamental task of the "new york times" to hold all public figures, including the president-elect and when he becomes president donald trump to account without fear or favor. that's what we intend to do. and i think in the end, obviously it's very interesting to meet politicians and to hear what they've got to say. ultimately all politicians are judged by their actions rather
10:40 am
than the assurances they give. let's see what happens. >> mark, it's carl, all the cost pressures that you're talking about have been going on for years across all print media. we exited this era of bureau closures and downsizings. and so some wonder, is there a way to get the assignment desk, right, that page one meeting, better atuned to the middle of the country? there a way to do that short of moving the desk to omaha or peoria? >> yeah, i want to be careful though. we've got around 125, 130 million users every month. you know, well over 110, 120e million more than the historic "new york times" had. we reach vast audiences in america. we're reaching about half of everyone who touches the news on digital on the web, about half of americans who read news on the web, we reach every month. i think the understanding, the
10:41 am
executive editor were here, he'd say that understanding and reporting on the hull of america is what the times has always wanted to do, but i want to say when i look at the growth of our audiences and when i look at the growth of our engaged audiences and our subscribers, we're dining pretty good job in reaching users across america. >> and just a final question about president-elect trump, he has threatened to sue the "new york times" and he said he wants to revamp laws to make it easier to sue news journalistic publications, what's your response to that? >> when donald trump came to lunch, i asked him about his threats to harden the libel laws and whether he was committed to the first amendment to the constitution, and he said firstly that someone had told him that if he hardened libel laws he might get sued a lot himself. and he said, he finished by saying, i don't think you'll have anything to worry about.
10:42 am
so he had words in terms of freedom of speech. let's watch and wait and see what happens. >> all right. we'll leave it there and good conversation. thank you so much, mark thompson, ceo of the "new york times" and thanks to julia as well. >> thank you. still to come this morning, a lot more on the markets and your portfolio under a president trump. you can see the dow relatively unchanged. s&p the same as we await this opec decision tomorrow. more "squawk on the street" in a moment. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan.
10:43 am
[ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it could save you in out-of-pocket medical costs. call now to request your free decision guide. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now.
10:44 am
stocks have had a great month, but are they getting overvalued. is? the experts weigh in on tradingnation.cnbc.com. more "squawk on the streets" coming up.
10:45 am
for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. ♪ welcome back to k"squawk on
10:46 am
the street." the sector is the worst performing sector in the s&p 500. nearly all are negative on the day with transocean, marathon oil, hesz, and national oil lagging the most. now despite today's decline, the sector is still this year's best performer up nearly 15%. so oil prices certainly a focus with those opec meetings, back over to you guys. >> thanks a lot. president-elect donald trump's tax plans will have two big impacts on the wealthy this year. robert franks joins with us this story. >> more giving and less reported income in 2016. those are two of the changes that trump's tax plan are already having on big tax payers. now the trump plan would cut that top tax rate from 39.6 to 33%, cut the capital gains tax for top earners for the 20% range and cut the corporate tax rate to 15% and of course he would eliminate the estate tax. now the plan would have to pass congress, but tax advisors say the wealthy are already front
10:47 am
loading their charitable giving to 2016 because they get to deduct it at that higher current rate so we could see a big jump in big dollar gifts just in december. wealthier also postponing big sales of real estate, stocks, and other businesses because of the potential drop in the capital gains rate. if they sell now, they pay the 23.8% rate if they wait next year, they could see a rate of 20% or even lower under the ryan plan. and that could lead to a large drop in reported income in 2016 since capital gains account for growing chair of income and tax revenue for both states and the federal government and finally with the estate tax, it's a little risky to change your estate plan based on the assumption that the plan could be eliminated, but tax advisors say the wealthy are building more flexibility into the plans and allowing changes for passing down more wealth to their kids if the tax laws change. but that's something you don't want to really mess with until you know absolutely for sure that the law is going to change.
10:48 am
guys, back to you. >> we don't have any guarantees yet, robert, thanks. from overhauling the tax code, repealing obamacare, renegotiating trade, the trump era has major implications for businesses and consumers. so how doo you best prepare your portfolio and retirement? joining us is usaa investment solutionings chief investment officer bernie williams, good to see you this morning. >> thanks. >> are clients right to wonder what the change is going to be in their tax exposure and what do they do about it? >> well absolutely. and you should be teeing up those conversations with your financial planner to discuss the estate plan and how your taxes may influence when you take distributions out of iras and/or social security. one thing i would point out, it's not clear that the changes take place in 2017 or '18. so there could be a delay depending on when the judge is actually occur. >> is the danger jumping the gun rather than waiting too long? >> i think so. you just don't know when the
10:49 am
change is actually will take place. i think the last time a big tax cut took place, it waited -- took effect the following tax year. so, you know, front loading for example charitable contributions, you may have another chance, you may have another chance next year at a higher tax rate. we'll have to wait and see. >> robert mentions the estate plan obviously doesn't effect a great number of americans, but what do the wealthy do about that? >> well, again, you should wait until it's passed. i think you'll have time to make those decisions with your financial planner. although certainly again, you want to tee that conversation up. all these issues are very individual in nature. so it's hard to come out with a blanket recommendation. >> are you seeing your clients retail investors finally putting money into the stock market after the election? >> we haven't seen a big flow into there. or any dramatic changes. we tend to focus, you know, usaa
10:50 am
more on the long-term and that's what we tell our clients or members to do. i do think it's interesting, we'll have to see how this back-up operates impacts our members. you've really seen backup in interest rates impacts our members. you've seen municipal bonds go way up in response to proposed tax changes. >> people are wondering, bernie, if the market is graduating from an environment where it was all about the fed, who is on the fed to one where we can think about bigger things like corporate profits and consumer and sentiment like we've gotten today. do you think that's true? >> yeah, i do. there are some fundamental changes, beginning with the fed as they raise rates, that could have an impact on the banking sector. it already has. rates in general have risen. with the economy improving, at least through this quarter, banks are a highly cyclical
10:51 am
sector. they could be a beneficiary of any improvement in there. on the flip side you have the health care sector which, regardless of who is in control of congress, democrats or republicans, i think the drug pricing issue is out in the public eye and that's going to have an impact on some of those drug stocks. >> as it already has. >> yes, it has. >> bernie, good to talk to you. >> yes, thank you. >> bernie williams from usaa. as we head to break here, take a look at shares of tivo, signing a licensing deal with netflix to continue the integration of netflix's streaming service into tivo's set top boxes, clearly having an impact. it was up sharply in the premarkets. we'll be right back after this quick break. what i love most
10:52 am
10:53 am
about tempur-pedic mattresses... is that they contour to your body. it keeps us comfortable and asleep at night. shop our biggest event of the year, including all tempur-pedic mattresses. save up to $600, now thru november 29th. get your tempur-pedic. the most highly recommended bed in america.
10:54 am
welcome back to "squawk on the street." ita up nearly 10% so far this month, tracking for its best month since april 2009. about two-thirds is up 10% or
10:55 am
more. only three components are actually negative this month so far november, taser, stun gun maker, one of the ita's top leaders up more than 20%. still, carl, the defense stocks certainly showing a back-to-back of a tear these days. back over to you. >> thank you, don. trump's meeting today at trump tower, we know he's having dinner with mitt romney, senator bob corker is expected to visit him. now we're getting word that goldman sachs president and coo gary cohn will meet with the transition team today, tuesday, as intrigue continues. expectations are building that we'll at loest get a major cabinet appointment some time, if not today, then later in the week. >> mike pence suggested we would get some big announcements. we got the health and human services secretary announced and we will keep our eye on trump tower. when we return, start-ups boosting the big easy. live to new orleans and hear from a ceo using her business to rebuild the city.
10:56 am
my business was built with passion... but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?
10:57 am
10:58 am
come on! why doesn't verizon offer unlimited data like t-mobile? is it because their lte network was built six years ago? six years ago? that's like a hundred... in phone years! their lte network is older, slower and they limit you. switch to t-mobile, the newer, faster and unlimited network. we cover 99% of the americans verizon covers. switch your family of four to t-mobile and we'll give you $800 to spend anywhere you want. start-ups are booming in new orleans as new companies try to
10:59 am
rebuild the city in the wake of hurricane katrina and, of course, the gulf oil spill. kay rogers is live in new orleans and joins us with more on this story. good morning, kate. >> hey, sarah, good morning to you. one of those entrepreneurs is tippy tippins, launched her business, goods that matter, in the wake of the gulf oil spill in 2010. she sells eco friendly goods and donates 10% of her proceeds to varying proceeds. she first learned about the term social entrepreneurship while on a trip right here in the city. >> i've been wanting to start some sort of design company of my own for some time. when i heard it, it was this aha moment, like i could use my design skills for good and so that -- yeah, that's when i was inspired to start the company. >> she moved here from brooklyn permanently in 2010. now today she operates out of a storefront with three other social entrepreneurs and so far
11:00 am
she's reached $25,000 for varying causes from literacy to wetlands restoration and more. >> new orleans is a great place to start a small business because it's such a collaborative community. there's a phrase i've heard in town a lot that's the rising tide floats all boats. it's really important that everybody does well. >> and that's something we've heard a ton here on our trip, the idea here that everyone in town needs to succeed to make this a better and stronger place post katrina. back to you. >> kate rogers, thank you. >> it's 11:00 am on wall street and 8:00 am out west. "squawk alley" is live. ♪

99 Views

info Stream Only

Uploaded by TV Archive on