Transcripts For CNBC Squawk On The Street 20171130

Green, as the dow nears 24k. Well take a look at whats leading and bitcoin, well, guess what its seeing huge price swings. What is rocking that cryptocurrency and where will it be headed next amazon stock coming off the worst day in years, but the company, as you just heard, announcing a slew of new products and a plan to bring alexa into the workplace we are about 60 points from dow 24k. The blue chips and s p on track for an eighth consecutive monthly gain, heading into final trading session of the month, the dow leads the three major indices, up 2. 4 for for the month to date. Best gainers, walmarts up 12, nike, cisco, disney, depot its a good mixture i think a lot of it will affect some of this very good personal income, personal spending numbers, because youre hearing some major chains are people spent a lot of money it dovetails very well with what well talk about later, pvh, the strongest christmas in four years. Every one of those is also in some way or another shocking given the fact that we had huge hurricanes you had lots of stores so these are very encouraging numbers. And i can see why someone would say, you know what, these are signaling that the stock market is producing great wealth. They are signalling that employments good. And i dont want to be too much of a pollyanna, but i think theyre also signaling that maybe they feel good about 2018. Look at those numbers thats really encouraging stuff, guys. Can i come back to yesterda for a second it was a bad day in terms of the stock market hits new record high, confidence and enthusiasm around, more great numbers coming around. Do you think youd call that fake news . Thats the tweet from the president . Yeah. Just pointing it out yesterdays rotation was brutal for a lot of guysthat run hedge funds since the reverse of robotics in 1994, i have not seen the loss of some of those names and the gainers focused on the beneficiaries of tax reform. But it was violent yesterday and, you know, what i was hearing later in the day was, oh, that was the worst day ive heard all year i heard that more than once. Well, you had people look, theres a series of stocks that are very inexpensive on the nasdaq, okay and those did not get hammered but then theres just anything cloudrelated. And you had auto disk, which is really a fine company. Truly blow up yesterday. And people took that and read it as the cloud slowing now, thats what you read when you decide that you want to be negative but, holy cow i mean and everyones saying, well, f. A. N. G. Peaked. You know how many times f. A. N. G. Has peaked it has a pullback only to reimburse three days later people will say, why didnt i buy dmamazon the answer is yesterday you can buy all the amazon you wanted, but how many brave people went in there you felt like a butcher block. But how many times have you heard people say, if i could only have a chance to get in but when you get it, it feels so horrible remember yesterday because theres nothing like wearing amazon on the way home its like, wow, what is that on your shirt get that amazon off me so, this is what happens this is what happens in a vicious rotation people say, i cant touch it and yet, thats how amazon has always come down were getting a lot of equity strategists commentary for 18. Its not all that positive yet i went to that party for squawk. I rode up with a strategist and i wanted to jump off the you know, jump out of the building it was only on the second floor. By the time i got to the end, im looking for a tall building. Strategists say, it will be fine, but youll break a leg one guy says, it will be the worst week of your life. Ive had so many worst weeks of my life, does it really come under that you know whats going to happen. You dont even know whats it going to look like . Wholesale destruction all these Morgan Stanley, 2015 may mark the top in q1. Laslo berini, topping q1 he i like hes very empirical. You cant dismiss it all, can you . I think theres two kinds of tops the top that you may be developing in bitcoin, which i dont know but its like, i follow btc on twitter. I just bought my first bitcoin and i feel brilliant when you see that when did you buy bitcoin . Look at btc youre seeing people who say they bought it heres the journal chart today. Makes other crazes look tame this is a red line, joe and becky just showed. This red line over here, thats bit coin and Everything Else is all the manias weve had over the past few decades i think thats problematic, definitely but i think what you could have is a rotation in 2018. I did a lot of work on the banks, because the banks were acting like dot coms yesterday the banks were acting well, but they are beneficiaries of tax reform to some extent. Youve got four if you have four rate hikes coming, you have 2 billion coming to bank of america, your cd is not going to go up that much i could make a strong case that bank of america deserves to be dramatically higher. And its done really well in this period, but im going to come back and look at the dprks xlf. It traded at 64. It has 4. 4 billion shares outstanding. Now 10. 4, because they made them raise capital. They paid out 240 in dividends going into the Great Recession its only allowed to pay 35 cents now. So do you think that bank of america lets say bank of america went back, bought a lot of stock back, and gave you a normalized dividend of what it did in 2006. Is that going to crash i dont think so although it has got a lot more shares out, as you noted. So 35 cents on a lot more shares, still right, but at the same time, lets say that the deregulation i dont know what the number is in bank of america, the Brian Moynihans allowed to sit down with people who work at his company, not the government or some regulator who comes in and puts his feet up on his desk and says, im sick and tired of what you guys do. That guys gone. Its true theres nobody, actually, replacing him. Well theres no one coming in anymore to the bank and saying anything no thats what it was like. Its like, hey, man, get me a starbucks. I dont like the way youre lending a lot. And you went to second houses, youre out and doing derivatives, thats gone and i want nobody to get along unless theyre really rich, okay thats the deal. I got them for 120 at macys they look comfortable i bought ten pair. Kirkland socks . All about comfortable shoes no, kohls. Well talk about costco kohls is good. But anyway, im saying that guys gone and my point is, not replaced by anyone. Theres nobody looking over him anymore, right anyone in the Justice Department what do you think about the Justice Department its in its 13 billion that you owe. Do you have any documentation . Yeah, heres the documentation next week its 15 billion those guys are no longer in the building they were funny so another reason the bank stocks should go higher. Yes if you unfetor a banker, than maybe i can get that loan on my second house even though i have no mortgage on my first. So you think all of these concerns about loan growth are supply driven, not demand driven i think youre very worried if you make a loan that defaults when you make a loan, im not asking you to be the bailey brothers the building and loan im saying you have to have some risk but when you unfetor a banker, sometimes you can end up with cdo squared and a leveraged Balance Sheet ghaets to a number you cant really even be sure of, because youre not sure what the hecks on that Balance Sheet. Im talking about basically lending. But these banks have a lot of capital to give back so im picking a group that does not feel to me like the end of the world is coming. But i could argue, its not a good sign block chain might be. But not that jim mentioned amazon, which wasnt immune to the selloff yesterday. The companies now making a push to bring the digital assistant alexia into the workplace. The idea is to let alexa book conference rooms, set up meetings, perform other work functions. Details will be announced today at the annual conference for Amazon Web Services. Got two price increases on the street davidson goes to 1500. We think thats a street high. And mkm to 1350. Look, i was doing some work on Amazon Web Services and the banks, okay . Now, the banks have, for the most part, been late to the cloud. A lot of them worry about encryption a lot of them worry about cybersecurity. Amazon web services is going to own that business and they havent even started yet there are whole industries that have not gone on the cloud and when they do, they find that they want to do business with amazon yes, they also like alphabet they like google they like azure. But im saying that Amazon Web Service stis is still in its fantasy. By 2020, they see 128 million on amazons installed base thats like an aws number from a few years ago. Dont forget, the Apple Service revenue is a great piece by Katie Huberty today, Morgan Stanley, talking about the surge in Chinese Apple sales you have to look at which one have basically awoken. And revenue. Service revenue. Huge thats another stock that i think people have decided, you know, thats too high. But if they do the numbers, its not too high if they do the numbers is sales force too high . Guys raised targets yesterday and the stock was down big i saw that. What does that say . Its not good no. Its not good. Or is the market just missing it i dont know. I think that some stocks have to retrench one thing that i did hear that made me not want to jump off the buildings, no offense to the people who whoever, get me. A lot of them say, listen, it has to go down first and i think thats right it can go down first, and then the like, look at the banks they all trade with the xlf. Some are trading at 12 times earnings and some at 15. So theyll come down, and youll get something akin to a buy. But look at what happened to kroger look at what happened to costco. Look at what happened to gap look what they all got crushed and then they came back. And maybe that happens to other sectors. Remember costco, we were supposed to like, costco is no ones ever going to go there again. Jimmy kimmel was on the cover of the costco when they wrote about me i was going to ask him, do you still go to costco, but hell probably laugh at me costcos at 155. May take out the may highs today after these comps. Well get to that in a moment. An unbelievable moment. We do have a breaking story on apple this morning from our Christina Farr apple is piloting a first of its kind heaareart app to Research Whether its watch can pick up Atrial Fibrillation, which is one of the most common causes of strokes and heart failure. People who sign up for the study will consent to use the watch to monitor both their heart rate and their heart rhythm and scutt consult with a physician if there is an abnormality. Weve been down this road about whether or not they would register it as a medical product, subject to regulation, from the federal government. Does this change that . I dont know pip just asked to be enrolled this is the holy grail this is the stanford project this is whap every cardiologist wants. Theres been too many false positives. But literally, im getting this. Maybe they solved meaning that too many people are like, youre having a really great day, and suddenly its like, oh, my god but this is the breakthrough that many people were waiting for, because this is what the cardiologists can say can save 600 people from a heart attack the larger question of healthrelated services and apples ability to garner information that will play into the Overall Health care universe is still out there there had been a sense that they were gaining momentum on that, and then it didnt really get there. No, because but maybe this starts it again. Its like fit bit the docs the doctors dont want certain things and they dont want hmos dont but anything that uses this, you want im getting it okay. Are you worried about Atrial Fibrillation arent you . I hadnt been should i you should be really . Yeah, is your fossil watch . Whats it going to tell you . Nothing how cheap you are i figure youll just do what youve got to do to me clear i dont know. Yeah, you go buy one of them pico watches what is that thing im counting on you, man. If i go down during the show, youre going to save me. He depose goes to chinatown watches. True. Two for 10 when we come back, the ceo of pvh, what he told jim last night on mad money. Weve got to get to these movers on sears, krogers, gap. Opec now has a deal according to a story on dow jones more squawk on the street in a mome nt not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Pvh raising guidance last night, Manny Chirico told jim he is optimistic about the Holiday Season weve seen, as a strong surge, especially in the month of november. I think inventories in particular are under much tighter control, as we go in and i think youre going to see sales improvements and i think youre going to see if the trends continue, gross margin improvements across retail its the strongest Holiday Season so far that ive seen in the last four years. Thats especially here in north america. All right, this is monumental first of all, just so you know, the stock has had a big run, so dont take your cue if the stock, necessarily but europe, for tommy hilfiger, europe for globe, for calvin klein, fabulous. But what he really zeroed in on was the last few weeks, the holiday time and what i thought was amazing is that four years is code you go back four years and you look thats when macys had its peak. That was the period where macys sales were at a high so what im saying is, is that this was just dispositive to buy macys now, macys was up very big yesterday. But if macys comes down, think about pvh and macys kohls and pvh this is where this stuff is sold but macys is that is jcpenney, where he put out a note, im not a fan of penny, im a fan of macys. But that is code four years ago is when we sought like we were back. And then Department Stores collapsed. So, hes saying Department Stores are having a decent christmas. Okay. But i dont feel as though the trend is changing. You dont no, they may have a good christmas, but it doesnt mean that they have a great future. Well, i think that youre dealing with a stock that went to 70, and is at 23. Yes specifics of macys, i understand it can go to 30 lake gap stores was at 22 when old navy turned went to 30. Im just saying its not death store. Well, you mentioned gap, which citi cuts to sale today, because of a 40 rally over three months yeah, i thought that that was hack work, frankly i think old navys having a turn, i really do. I read this piece look, you missed it. Not a neutral. Well, that was great you should have had a buy on it. You missed the whole buy and now you go from neutral to sale . Im sure youre this is a very nice person this person is very nice, who wrote this nice nice. Thats your way of saying thats my code. I know your code. Speaking of Department Stores, is sears this morning and the degree to which that reflects any Consumer Shopping trend or just cost management. But its up 30 . Minus, what, 15 Comp Store Sales store and i was looking for no sales. Well, theyre going to get there. And by the way, when they get to zero sales, the stock will be up even more its going to skyrocket it will be great. We had no customers this quarter. The single l lai singularity the ceo from home depot said sears is the greatest share donor shes ever seen. Got it. Share donor use that term. Its like instarono. I try to come up thats right. Well get cramers mad dash and count down to the opening bell in a few moments take a look at the futures dow does look to open at a record, potentially 24k. We were back in a munn [ keyboard clacking ] [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. All right. We got a mad dash as we count you down to the opening bell i want to talk a little kroger i was very impressed with the numbers today. Now, the surface number was good 44 cents versus 40 there are two legs down in kroger theres this leg, where we realize theres no longer a 4 grower and then theres this leg whole foods when amazon bought whole foods. We are now back to where they were when we realized theyre not a 4 grower, theyre a 1 to 2 grower, which is good some of their initiatives are paying off i want to pay particular attention to one theyre trying to blow out. They have not been able to do it nationwide yet, which is the, we are local new restaurant concept, kitchen 1883. Where they select some local good restaurants the in the area and they give space to them. Its working in the store . In the store. And if they can make this scale, it will make it so that they are becoming more of a destination so youd go there to go to a restaurant in the store . Yeah, pick up, take out imagine your favorite barny green grass. Or you go to gino steaks in a kroger in philadelphia this is a very smart idea. The kroger guys are not sitting there saying, listen, give me the beat down. Theyre fighting back. The fred myers stores, by the way, look very good. Very antipackaging. Very insync with whole foods Millennials Millennials whole foods millennials those darn millennials i didnt know where you were going. Wherever i say, in sync, you have to say millennials those darned millennials welsel e what theyre up to were back after this. 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Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. Your bbut as you get older,ing. It naturally begins to change, so you can get business done. Causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Squawk on the street, live from the Financial Capital of the world. The opening bell in about a minute and a half, as we get the final trading session in november underway. Markets looking for eight straight months of gains tax bill got that motion to proceed, might get a vote tomorrow, and despite some questions about passthrough rates and the corporate rate and triggers, a lot of people think this thing is laooking very solid. Theres momentum here that is kind of, you know, get on the bus. It does feel that when you have a senator who is an outlier, senator johnson, you know, you dont youre not in sync. Youre not playing with the team but he voted it out of committee. Im saying they want this thing. They want to say they did something. Its still only the question is, will they get anything done priority christmas. Right or priority actually, very soon but will they go on vacation what about the election in alabama. Would that potentially have an impact do they want to get everything done, obviously, prior to that, for moore were to lose that race to doug jones. It only takes two. How about the idea of whats in the bill i dont know. Does anybody really know whats in the bill . It hasnt been scored by the taxuation a lot of people you know, ive got guys saying to me is the reason why f. A. N. G. Was down, you will not be able to sell f. A. N. G. Without selling the low basis, so sell some f. A. N. G. That you bought in the last year versus your low basis swob that was part of the selloff theres the opening bell and the s p at the bottom of your screen at the big board, Bank Corporation based in australia, celebrating its 200th anniversary at the nasdaq slush, a global tech Conference Held in helsink helsinki, finland. Thanks, jim. Whether it was whether the tech rollover was taxes, some attributed downgrades on nan pricing out of Morgan Stanley earlier. Katie huberty did this fabulous piece ive mentioned her twice youre in the Katie Huberty fan club boss i like boss. I like al gore i like jeffrey these are eagles and okay, she did a piece on monday i thought was breathtaking, which said theres going to be maybe as much of a 30 decline in flash memory in 2018 this shook people and then the next day, what do we get we got a bunch of Tech Companies reporting good numbers, and so we especially tech data, which basically said major flash was going to be good then we reverted entirely to katies note yesterday and people have said, wait a second, western digital. Its flash and also dram but it was huge and it was ignored and now its front and center call. And katie does excellent work. Up more than 100 points, being led by Goldman Sachs goldman slacks . Ive done some work on Goldman Goldman is so far away from its peak price to earnings multiple, its extraordinary okay, but maybe deserves to be well profitability is not what it was. Fixed income is not great theres no volatility in fixed income and also, their client flows are different. Hedge funds dont make them as much money people dont want structured products as much as they have previously nobody is better at reengineering their business than goldman nobody in Financial Services but they got to do it. They have to. And they look, they still are creatures of needing volatility. Volatility comes back in fixed income, youre going to say, what was i doing not buying goldman . So what did the work you do on goldman lead you to conclude . That goldman is too cheap on a book value and too cheap in terms of its adoption and technology and understanding where technology is going and how to make it so that you dont have 600 traders in the trading room anymore you have 200 engineers and they cost less. And that you can automatic a lot of what is done. Even marcus is entirely automated. Marcus is interesting its thank you its small right now but it can scale. And you can do it with algorithms a lot of people went crazy for square this is bigger it has bigger opportunities, i think. And what did you make of kate kellys article, our old colleague, solomon versus schwartz and the run for blankfein. Unclear when blankfein will leave the job, but any thoughts . I think the problem with lloyd fine, theres a whole cohort of people who will feel like theyre never going to get a chance people in their 50s. Those guys are in their 50s. Theyre in their mid50s. Nothing wrong with that, by the way. But time starts to run out ive been saying, if youre 59, youre not going to get the job, because youre supposed to work for ten areas and theyre not going to let you work until 69 so lloyd has this dilemma that a lot of these great people face at the launw firms, too youve got to let the people underneath you who are still young enough have a shot at the ceo. So, if youre looking at that, you would think that lloyd might have to retire in the next year if he wants to be, you know, for sports, for solomon. Marty . He doesnt want to die at his desk, unlike who did whats im forgetting his name ceo from number of in the 60s at goldman or 70s. Died at his desk levy . Yes i dont want to die at my desk thank you my father died the day before he had a really big sale. Made a lot of money, a big sale. I know this because i had to pay the taxes. I didnt know. 92, was a good month he would have certainly loved to see this eagles season. Oh, my when they dedicated that titan game, it was like, pop i buried him with an eagles at i dont mine talking about this, because he was 92 and he had a great laf. But poi, did he love the birds loved. He always had a soft spot for roseman. The guy makes a lot of pig trigger moves. Guys, we do have dow 24k. Dow surpassing 24,000 for the First Time Ever, went above 23k for the first time on october 18th so, what is that a month and a couple of six weeks and a thousand points. Yeah, its funny, i saw a lot of people tweet, well, the president is saying that things are good, now youve got to sell he comes in like every thousand points so its been a bad strategy to sell when he comes in. When he tweets its not been a good strategy to sell, you know, im over here. Im aware of where you are. I was looking at that chart. I was giving it a good look. Were you bit coining . The dow, the statistically meaningless average. The nasdaq the s p was actually correct assemblage of what happened yesterday. But yesterday was amazing. And i think that people dont understand, you take a stock like nvidia, which is linked to cryptocurrency, even though its a small part its linked to almost everything that we talk about. We can go through all of our watch words. Ai, machine learning, block cha chain. You need those two jenison wang does not dismiss the power of in the conference calls, he doesnt dismiss the power of cryptocurrency amd has made more of it than but block chain itself, the underlying could be very important. I mean, i hear that more and more often you had this 55page report from Morgan Stanley earlier this week on how its going to transform the freight industry it should because its can you imagine if a stock sale settled immediately forget about the three days. Do you know what he urges i do not. I cant even understand what word youre saying its when a train is lost its just lost theres like a siding and its lost they dont know where its went no, its called demurrage his father was in charge of demurrage for a railroad she said, those are lost trains. They still have lost trains. So if you had block chain, you would know where everything is not only that, but everybody would be able to settle anything and all transactions would be done instantaneously the other side, if you make it secret, the irs arent going to see theyre curious now they woke up and watched the show and say, we have to investigate. Its like the people at the fed who said, we better talk about wells fargo. Lets put out a release that says that wells is in the you see that . were looking at wells oh, shocker guys, really quick, one is on chipotle blair takes it to market perform. Uncertainty over the moves as we saw some price action in cmg yesterda yesterday. Yeah, time heals all wounds jack in the box had bad samestore sales and kroger up 12 . Best day since 93 there were a lot of people short kroger they didnt understand that amazon tomorrow was not going to wreck krogers margins and look at cost coast. Youve got this situation where death star is going to hurt things i use that, because of the unbelievable john malone spruf the death star is going to hurt things, but you have to you know, you have to see the whites of their eyes. They didnt destroy kroger the moment they bought 400 stores from whole foods krogers is a much better store. They have to put up a lot more stores to really hurt kroger it takes a while to get the death ray and the death star working. Im more concerned about walmart if im at Kroger Walmart is the biggest grocery its gotten more aggressive. Speak softly and carry a huge zpr a lot of people within ten miles of a store. 100 million shoppers cant be wrong. Wy go to walmart now, it is so spiffy, so nice, and the broccoli is good the broccoli is good . Broccoli is good, asparagus is good. Theyre sourcing locally . Block chain because you know who likes the sourcing locally the millennials yes, the millennials guys, again, goldmans leading, dows up 130, well above 24k. Lets get to bob pisani. Good morning, bob. Good morning, guys. Another record over 24,000 right now. 25,000 is the next one just want to show you the sectors here, because a little bit of a sigh of relief, particularly on the technology front, because the tech stocks battered yesterday, bounced back a little bit theres energy and energy has had a tough time this week, been a laggard, but oil is on the upside retails had a great week, overall. Banks have had a great week and tech is the big worry. Fractional gains i want to show you some of the semis that were weak yesterday guys talking about nvidia, but micron, which has been up 100 for the year, fractionally to the upside, as you can see thats a bit of a relief here. Heres another bit of relief weve had an average month november is up about 2 so far in the s p 500 now, this is the first time in a while the average for november going back to 1950 is up 1. 6 . This is the first time weve actually gone along with things. Remember, september was an up month. October, an up month usually down a lot of things didnt work this year first time in a while weve seen an average month that actually went along with the historic implications ill tell you something that has been a little bit of an issue here yesterday was the technology now, technology dramatically underperformed, but all throughout this year, the s p tech group, which parallels somewhat the nasdaq 100 has dramatically outperformed. You can see that on the orange line on top, theres the s p 500 on the bottom. Tech has been up 35 , yeartodate the s p is only up 17 you can see the effect instead of being up 17 , the s p would only up be 13 tech is only 22 to 25 of the s p 500 right now. It really influences whats going on the question is, how much longer is that going to continue . Yesterday, so far, is a bit of an anomaly heres another thing people are the talking about. The emerging markets have done better than tech its up over 33 this is the eem, which is the main etf for emerging markets that everybody buys. Thats the orange line theres the s p up 17 so weve had twice the outperformance of emerging markets. And theres the same kind of little blips that weve had overall. Korea has had an amazing careyer and the small caps in china, which is the shen zen, more entrepreneurial names have had a tougher time, concerns about regulation, thats been the big issue. If you take a look right now, overnight, what happened paralleling these concerns about technology, weve had a little hiccup in the emerging markets indonesia, south korea, taiwan, theres the schen zen. Now, again, this may turn out to be the same thing as what happened in semiconductors yesterday. A oneday flip where people sell off and come back in we dont know. But given that outperformance, people are watching very carefully to see if this turns into any trend two things left for people are debating is, is there anymore premium for tax reform that is left there is some kind of premium in the market its very clear, we dont know how much it is how far will that influence it for 2018, the big debate is, whats the Economic Growth going to look like were talking about 2. 5 , maybe, globally is that going to continue . And how much of an expansion of earnings is really left in the s p 500 . A lot of people, of course, debating about whether that multiple is still appropriate. Were still at highs, though were up 112 points here carl, back to you. Bob, see you in a little bit. Were a few minutes away from chicago pmi, but santelli has already brought us income, spending claims. Lets get to him at the che. Good morning, rick good morning, carl. All of those are very good numbers if youre the fan of a growing economy. Lets get to some charts twoday of tens came within a whisker of 240 havent hit that since november 14 you see that last tie. That was one basis points where we settled last year at 244. 5. Thats the area you want to watch. Many are betting that that is in the running for where well settle this year, maybe unchanged. Twoyear bunds did get through 240. We couldnt quite get through 240. The spreads at 200 basis points they traded slightly above 40. Last time they were there, same day as our tens were, 240 and thats november 14th everybodys continued to be enamored with the move in the pound. Twoday of the pound dollar, higher november pound versus dollar its been of a rocket ship if you look at a twoday of the pound versus the euro, a very similar feature. Year to date, pound versus euro getting close to praekout territory. Many can debate what it means, recession, no recession, central bank manipulation, but it has reversed a bit of late, probably because the short end is sticky due to central rates south korea raised for the First Time Since 2011. And the long end is more perceptive to the relative value trade. Hear that buzzer that means we are now ready for our purchasing manager survey. The number is 63. 9 63. 9, better than expected but our last look was 56. 2 thats going to be a hard one to stop talking about that was the best in 20 years. 20 years im sorry, second best in 20 years. March 2011 is when we had the 20year best at 68. 6 63. 9s a great number. Anything over 60 is a great number carl, jim, david, back to you. All right, rick, well see you in a while rick santelli. Another recordsetting day for stocks the dow surpassing 24,000 for the first time s p hits an alltime intraday high the transports, again, an intraday alltime high with the blue chips up 118. Dont go away. Zar one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. There was an old woman who lived in a shoe. She had so many children she had to buy lots of groceries. While she was shopping for organic fruits and veggies, burglars broke into her shoe. They stole her kids Mountain Bikes and tablets along with her new juice press. Luckily the Geico Insurance agency had helped her with Homeowners Insurance. She got full replacement on the stolen goods and started a Mountain Bike juice delivery service. Call geico and see how affordable Homeowners Insurance can be. Take a look at the dow 30, led by goldman this morning, which up almost 2 , getting awfully close to the levels it last hit in march, when it was above 250. Jim . Well, look, the financials continue to go one stock that i would watch is a really good barometer is Lamb Research they make semiconductor equipment, and they started down and it is now coming back up thats important you need to see that test, a little bit of a test of some of the lows of yesterday. We saw a little test of facebook and so, it may be too early to go all in tech, but i mean, for my charitable trust, im looking and saying, weve got to pull the trigger on some tech, but not aggressive and you do want to continue to scale out of the retailers that are overdone that are being taken up by the retail etf thats my take impact of etfs, mores more p flounced than in the past . Yeah, people have to recognize youre getting moves like in the banks yesterday where it didnt matter whether the barng was doing well or not, whether the retailers is doing well or not, or the Oil Companies are doing well or not. People buying etfs that are creating the demand. Yes, and you have a small etf that is the xlf, financials. That is moving jpmorgan. We ought to look into that i dont know if its right it should be able to do that. Obviously etfs have been around forever. People can speak positively about them understand that jpmorgan is a very big company and the xlf is. 1 the size but the xlf was more powerful than the buyers of jp yesterday. 24 since the highest of the month. Pmi number, i thought bonds were going to go down. Pmi numbers, that is a fabulous number theres great things happening what Manny Chirico was saying, this is pretty good. I had cpr on last night, the largest kind of commercial broker of real estate. They cant find enough apartments they cant find enough major buildings. I mean, we have a shortage thats very good because commercial real estate can use up, can cause people to get a lot of jobs going. So i mean, theres good things happening. Thats why when i hear that 2018 has to be bad, i always like to see some facts first maybe 2018 doesnt have to be bad. Maybe it will be bad for the fossil fuel companies because still more countries are saying by 2040, were not going to sell gasoline. Speaking of which were going to get gm investor day today in which barr already ostensibly roll out not just 2018 but the road map for autonomous which is closer than we think. If it is closer why, are more automobiles going to be sold in an autonomous world where we have fleetz of vehicles and ownership declines dramatically, individual ownership why isnt that a world in which fewer automobiles will be sold and by the way, there will be a decrease in the amount of fossil fuel needed even if they were all gasoline cars which they wont be again, theyre going to be a lot more efficient when you have fleests autonomous vehicles. I dont know if its 10 years, 15 years. Fewer collisions and collisions are sadly a major reason why theres a lot of thats a consistent economic. Like hospital visits. The times has a piece up now that says the white house envisions that tillerson, Rex Tillerson will be ousted from state within weeks and be replaced by mike pompeo of the cia really. According to Senior Administration officials that the president has soured on tillerson. Wow. Theres been a lot of reporting around that for some time and what he said about the president. Right. Earlier this year although its funny, nikki haley has been the name bandied about as a potential replacement for mr. Tillerson who has gotten his fair share of criticism for the downsizing going on at the state department. Right. And the number of diplomats who have left or posts gone unfilled but im sure thats not at the crux of any disagreement between tillerson and trump. My little world tillersons a great man. Hero exxon survived its downturn because of things he did i know thats not it takes a 15year perspective. Hes always said that. I think he was taking a 15year perspective of buying what he learned at exxon and maybe thats not what the president wanted but thats tillerson. I just want to but the in a good word for him because he created a company that handled the downturn better than a lot of the other companies. Hes a very good businessman just very good. Well watch developments out of that. Thats just a report dow still up italmost 100 points back in a minute gyp, whats on mad tonight . People love the humanization of pets. They used to be in your basement, then your living room. Now theyre on your bed. Thats why we have onyx labs on tonight, the premier company that is part of the humanization of pets. Stock has doubled since he came on its a long day for those who want to buy tech, its a long day between 1 00 and 3 00, a lot of margin calls. Lets see what happens weve got go. Well see you tonight 6 00 p. M. Eastern time. Dow is up 114. Dont away win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. [ mouse clicks, keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Talk to one today and see why were bullish on the future. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Good thursday morning welcome back to squawk on the street im carl quinn kneeia with kelly evans working a split shift. Good to have you. Its a busy day sara eisen is off. Markets record highs for the dow as it crosses 24k. An opec meeting, a potential tax cut vote a lot to handle. Our road map starts with the milestone moment the dow crossing 24,000 for the First Time Ever a few minutes ago on the last trading day of the month. Well discuss how long this rally will run. A breakdown of bitcoins wild ride the cryptocurrency gaining and losing 1,000 in less than 24 hours. It is decision day for opec Oil Ministers expected to make a major production announcement well keep to a former executive from saudi aramco. The s p also set an intraday record and a strong start for the nasdaq on this final trading day of november. Is optimism of a potential tax bill driving the move . Lets bring in Tracie Mcmillan at wells fargo david buy and codeutsch Asset Management good morning to you. David, what is the playbook right now given the uncertainty and event risk around this bill . For investors were arriving at a moment of truth for what is one of the most important investment issues for all this year whats going to happen with the tax legislation. We look at things from a risk reward perspective. This is almost entirely priced in yet, we think it is unlikely to be passed today or tomorrow or even probably by the end of the year why so cautious when whip count according to some looks pretty bullish. The principle weve gone by to try to assess the odds of this getting done and how helpful it will be to the economy and the market has been is it simple and is it transparent. And this is not that its been copply indicated very complex, too much picking of winners and losers. Thats the reason we fear it doesnt pass in the very near term and think it would be supportive to the economy but more if it was kept simple. Tracy, to davids point, i want to talk about the markets but i mean, for a bill that was about simplifying the code is now about triggers and pass through rates and a corporate rate that is changing even now ahead of this vote, are you as concept tickle as david . So we think that the tax bill will eventually pass whether its this year or next year we are pricing that into our earnings estimates for 2018. Tracie, you know, theres a lot of questions how much higher the market can go. Are you as skeptical about the prospects of them getting tax done what do you think happens to the market if they dont in. So we think there is some of the tax legislation already priced into the market so the markets could certainly take a turn lower should we not see passage of this bill we think markets will give the legislators an opportunity to postpone it into the early part of next year, but should it not pass, we definitely see a downturn we believe. David, you seem to agree its in the market already to some extent i look at the action yesterday particularly for the domestic taxpayers retailers,banks all the potential beneficiaries of reform going up substantially would indicate maybe its not all in there. Taxes are a very important issue but theyre not the only issue on the table and those Domestic Companies whether retailers, theyve been suffering. I would point out when you look at the s p or the russell 2,000 in aggregate, we think a lot is priced in. We expect earnings to be 140 next year for the s p, earnings per share. Without a tax cut. With a tax cut, 150 i dont know what kind of multiple you want to put on 150 of earnings but if you use 18, thats 2700 for the end of 2018 and nearly 26. 50 right there our target for the end of next year is 2650 were counting on a Corporate Tax cut getting done by then maybe we go to 2700 by the end of 2018. We have 24. 50 for the end of this year because how much risking. Youre keeping 2450 . 200 points below. Lets see if they get it passed thats year end 18. 2650. Our year end 2017. 200 points the downside. If its not passed, absolutely. Really . Absolutely. I might take the month of december off maybe you should. Tracie, whether or not you agree with that target, do you agree that the next four weeks potentially are going to be swamped with very difficult tactical moves it certainly is a possibility of that, but you know, we do think that the markets will give legislators into the first part of next year sowere looking out towards th end of 2018. And our price targets out that far really dont differ that much from todays valuation. We see 2650 it, to a potential high of 2750 and that is with a 23 Corporate Tax rate built into those estimates. Tracie, meantime, since youre head of global asset allocation, and you put together a bitcoin primer, what do you make of the crazy run its been on we put together the primer in order to answer a lot of questions were getting from clients. We wanted them to know what bitcoin is, we wanted them to know what risks areassociated with bitcoin and what opportunities we see potentially down the road with blockchain technology. So certainly some of the risks in bitcoin are market risks. Weve seen bitcoin surging over the past week and then than significant down draft yesterday was a good gut check for investors. And you know, thats indicative of the type of volatility you can see in an asset class that is unregulated so regulation is another risk there. And security is another risk were concerned about. I dont know, investors might be a kind word for bitcoin do you see it as a speculation or whats going on here . Were coverbly agnostic on bitcoin. Were watching, were learning about blockchain, communicating to our clients, but i just love the silence. Your face says it all. David, tracy, thank you i appreciate it very much. Thank you. When we come back, Sexual Harassment in the workplace front and center sally craw check, the former ceo of merrill Wealth Management will join us heres a look at some of the dow leaders for nombveer squawk on the street will be right back dont go away. I just saved thousands on my loan at lendingtree. Com. In less than a minute, i found out how much home i can afford. I like how you shop for loans the same way you shop for flights online. I didnt realize at lendingtree you can save money on almost any sort of loan. I consolidated my Credit Card Debt with a personal loan. I found a new credit card with 0 interest for 15 months. You just shop, compare, and save. And its all free. Go to lendingtree right now and start saving. Early rally in the markets today. On the last day of the month, the dow is starting with a 137 point gain here. That puts it above 24,000 in trading for the first time we just closed above 2600 for the s p. Now at 2638 this morning the nasdaq bouncing back too up to 6849. Some of the individual movers in had the s p, kroger is up nearly 12 after its earnings this morning, l. Brands up more than 6 weakness in the nasdaq today from the likes of liberty. Youre not seeing some of the chip names yesterday that were such a problem. Yesterday, the socalled fang complex took it on the chin. Today stronger as you saw that vicious rotation at least for one day. And as we said with david earlier, some of those names that will be the biggest beneficiaries of potential tax cuts i dont want to call it reform anymore. Im not sure its reform. The name of the bill is the tax cuts and jobs act. Its more reformy than cutty. Really . What is it reforming . Once everybody tries to be a pass through. Youre right. Thats a whole other story over to bob pisani with more on the opening rally. And the path to 24,000 was only what, october 17th. We hit 23,000. Let me show you the stocks that advanced since october 17th. Remember, that was price weighted so the biggest heaviest prices really moved the markets number one about 20 of the gain 200 points of the thousand, United Health. Thats an important one. Im going to show you several others this is a diverse group. Its not Just Technology let me show you the next one, 3m, about 150 of the thousand points since october 17th. Thats very important. Again, did i versified an industrial and a health care. Third one, how about Walmart Walmarts close to 100, probably 90 points of the thousand we have moved to the upside i retailer, health care and youve got a Big Industrial in 3m how about a tech stock, heres apple. Only 70 of the points weve seen not quite as much a contributor, not as big a price like United Health apple at 170 how about another Big Industrial, caterpillar, almost 70 points of the dow gain since october 17th with a 23 so you put it together. These five stocks, five of the 30 dow components are responsible for close to 600 of the points that we have gained how about on the other side, the negative side. General electric you would think has had obviously a disastrous quarter. But because its such a small priced stock, 20, 25 starting back in october, its influence on the dow has been very small despite the big decline, its only about 209 negative points on the dow its impacting the dow negatively because of the small price, its not having a big movement to the downside a little more significant was pfizer which is not having a great quarter, but even ear the decline 60, maybe 70 points. You can see the stocks rallied back in the last couple days overall, i would say 26 of the stocks probably have had a positive impact, four or five maybe negative impact. Still 24,000, the next stop 25,000 guys can, back to you. Thank you, bob pisani opec members are expect to agree to extend Oil Production cuts to the end of 2018 to clear the socalled global glut. The plan is set to expire in march. For more were joined by sadat al hussein, the founder and president of Husseini Energy thank you. What is your sense here in terms of the agreement to extend Oil Production cuts to the end of next year . Do you think theyre going to come out of the meeting with anything beyond that well, its going pretty much as expected. The heavy lifting which is being done by the opec producers themselves, theyve only agreed on that. That was in the earlier meeting. Now the russian portion, which is at the end of the day only 300,000 barrels theyre going to be discussing that or are discussing that as we speak. Overall, i think its all very positive no doubt everybodys going to continue their cuts right through the end of march and it makes sense to then go on noon june. Thats when peak depend would materialize in 2018. And i think the only issue is the russians would like to take it one step at a time. Probably take another look early in 2018 to see just how much further they would go with the cuts we see a slight upward response in the price of crude, about half a percent thats not much. What more do you think opec needs to do if they want to see the oil price move higher from here i dont know that opec is actually trying to get the prices much higher i think they want to work down the inventory. Thats the main priority the cut backs are to reduce inventory. Spare capacity also come in later. But at this point in time, they just want to reduce inventory and try to level off prices at at about 60 or so a little bit below that. I think the russians are on board with that, too the only question is what to do after june, 201. I think thats what theyre thinking right. I mean, so to that question whether oil demand in the Third Quarter will eliminate the inventory surplus, do you think it will . No doubt about it the inventory is going down very well the u. S. Commercial inventory is down 80 million. The rest of the world is almost equal amount and the iea was forecasting Something Like 400,000, 500,000 barrels per month per day drawdown on inventory in 2018. So yeah, theres an excellent chance that by late Third Quarter, 2018, well be right back at the fiveyear average inventory. Is there a chance that u. S. Production continues i mean, the u. S. Is the one big part of in that hasnt agreed to any kind of cut backs. Higher oil prices led to a pickup what happens if that means the inventories grow instead of shrink the u. S. Production is important and i think everybody would like to see the u. S. Contribution maintained at about the current or maybe a little bit higher level but demand for oil in total in 2018 looks like its going to go up about 1. 5 Million Barrels a day from Third Quarter 2017 to Third Quarter 2018 thats a lot of demand and i doubt very much anybody else is going to have capacity other than the u. S. And maybe offshore brazil and some canadian so the u. S. Is going to be continuing to produce. Its important 800,000 barrels probably 700,000 out of the u. S but that will just balance demand it will not over produce. Some viewers are still confused why the demand picture remains so row burt when we hear stories about car lines going to all electric models and auto shows and autonomous driving and electricpowered diesel or trucking operations. Is this all about is it a function of more robust Global Economic activity . Is that whats driving demand . Well, absolutely right. Demand is driven by the economy, Global Economy is very much resurgent both in the far east and in the u. S and we need to separate the longterm from the near term and midterm. The electrical vehicles and efficiencies are all important but all longterm developments the near term as we speak and in the next few years is a strong Economic Growth across the world. Demand for transportation fuels for commerce and thats whats maintaining both demand and prices as we see them. So its important to compartmentalize the longterm and not let that affect our outlook for the near term. Okay. Mr. Al husseinny, we appreciate you joining us thank you. Thank you. When we come back this morning, the former ceo of Wealth Management saully krawcheck is with us weighing in on Sexual Harassment in the workplace. The dow laggards on this final trading day of the month names like ge, intel, coke, dow, du pont and exxonmobil were back in a minute im done. Im done. Im done. Done with figuring it out for myself. Im done with surprises. If youre on medicare, you know how complicated healthcare can be. Im done with complicated. Thats why we work hard to make it easier. And thats what youll find with unitedhealthcare and our Medicare Advantage plans like aarp medicarecomplete. These plans can combine medicare parts a and b, your hospital and doctor coverage, with part d Prescription Drug coverage and more, all in one plan for a low, or even no, monthly premium. And thats just the start. Well make sure your doctors are all connected, even help you schedule appointments. 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Call now to learn more or to enroll in a plan from unitedhealthcare, like aarp medicarecomplete. [sfx mnemonic] more women accusing former today show host matt lauer of sexual misconduct. Two additional women have come forward following yesterdays dismissal of lawyer. Earlier this morning, he issued a statement expressing sorrow and regret for the pain ive caused. This is the latest in a deluge of high level dismissals were joined by Sallie Krawcheck and former Merrill Lynch Wealth Management ceo its good to have you back. Good to be here. Youve written about this and talked a lot about this phenomenon did something change this particular week because of the names involved matt lauer . Charlie rose men we had our first cup of coffee with, they felt like your brother or your uncle. Man, its getting personal now you sort of begin to feel like geez, you know, a few months ago, a year ago i thought this was in my past when i started on wall street. The dwarf throwing parties, the strippers on the trading floors. I thought it was over. And now its these men a frigging lock under his desk to close the door . This is creepy and weird and bad. Our business has taken it hard recently as we pointed out. What about your business i mean, you raised this idea of years ago and strips are and the like wall street was always thought of to a certain extent as being tough place, a tough place for a woman to work. Yes. Did you see it. Are you surprised there havent been more revelations coming from wall street as opposed to just seemingly from the media . I think everybodys waiting who is next. At this stage, you deputy know who it could be. During the course of my career, it went from xerox copies of mail genitalia on my desk to the ceo of the client saying come up to my room and well go over the numbers at midnight to then much more subtle stuff where the new boss wouldnt invite to you the meeting you were supposed to be in or he would send a squad to deliver a message. It became harder to figure out where it was what i can tell you is today there are no female ceos of big wall street firms. 90 of traders are male and 86 of Financial Advisers are male this hurts the industry, the entire industry i found had you ever had the business in an industry 85 to 90 male, do you think were doing a good job helping women invest were missing Business Opportunities because of in that hurt the industry. One common theme interesting in a lot of this is often there were complaints, maybe not directly to hr but maybe to management on some level that kind of went ignored or wasnt reacted to right away. Im wondering is that changing right now . Its definitely changing right now. The reason it happened, youre a mediocre performer and you have this compunction to drop your pants in front of women, they fire you pretty fast its really the high performers, of course, where that behavior has been tolerated and what i think the companies are seeing now is the cost is greater than they thought. Tens of millions paid out bill oreilly the lawsuits still to come for these companies. The thing we have yet to reckon with is what the ongoing cost has been of pushing so many women so many people of difference out of the workforce. What have we lost as an economy and productivity what have we lost as a society what have we lost of our soul by the fact that we have pushed these people out and not given them a safe space towork. Ideas we never heard because of the environment we lived in. Thats exactly right. You believe we are now in a new environment though theres no relapse on this part but i think the road can be long think about the big wall street payments, 91980 smith barney boomboom room, and youve seen payments since then but theyve been smaller and more about pay discrimination, et cetera. Again, its not as though those 1980 payments werent made and tens of millions spent to get these companies more gender diverse and it never happened. So were decades past the 1980s. And wall street is still very male very male. So were still missing the brains of that part of the population so i think its not over i think its barely begun. Wait, what has barely begun the reckoning, bringing business where its no longer man to kracies but true merit to kracys thats going to be a longterm initiative. Im thinking about parallel between wall street and the 80s and tech today thats where you have huge Companies Making a ton of money very powerful people who it matters a lot theyre protected and theres already been plenty of reports about some of the culture there. Again, if youre sitting there right now looking at everything happening in media in hollywood and so forth, you know, i dont know what those Companies Need to do to maybe look back or have that discussion with their workforce to say we need to be aware of everything thats happened we dont care who it is, how powerful at what level, we need to hear all these stories. It has to be zero tolerance because what doesnt work are the reams of subtle gender bias training and diversity this and that its now clear that hasnt worked nearly to the extent we want it to its interesting, kelly, you draw that parallel between wall street, tech, id say the Venture Capital businesses both businesses think about it, they control massive sums of money. Pick winners and losers, are controlled by white men. Right . Where is the fairness in that . Do you see a disconnect in the accountability in journalism and media and maybe hollywood and politics where you dont have a boss whom you answer to daily . The american voter. I think these things are related. I talk to a lot of professional women. And im engaging with them a lot. What i see, we step back and say the white women voted for trump. Hold on. Professional women and particularly successful professional women on the coast did not. And what ive seen. A few might have. Trump harasser in chief was elected to the white house women, these women looked around and said that was surprising we marched we then looked around for where is our gloria stein ham. She didnt show up there was a little bit of a lag. One after another starting with gretchen carlson, susan fowler, you start to see these women who begin to name their accusers whats enabling this is social media and the proliferation. Back in my day, are you going to go to one newspaper and hope they print it and everybody stepped back heres whats changed is the sense of frustration amongst professional women of we havent made the progress we wanted to this guy was elected even though he allegedly groped women. We should mention conures and franken. No move to resign. This is an equal opportunity male you know. Absolutely but i think this calling out the seeds of it were the election of trump as a backlash to it. I dont know, id go so far to say if hillary been elected im not sure we would be seeing this. Are you hearing a lot more stories, as well are people starting to share experiences or women in particular weve been sharing them for years. My gosh, friends of yours and mine. You might warn people in a certain area to stay away from somebody. You know, its funny. We did back in the day as we got more senior, i hate to say it, it was more hey, little lady, you know, back in the day when i was on wall street, they are dwarf throwing parties im glad thats over i think we all thought still a few months ago that was in the past and these things we matured beyond them to some degree. A lot of examples are from years ago. Were still looking way back on some cases 15 years. Some from very recent. True. Right. Im curious on that conversation that women have with each other, how does it go if one woman is thinking about raising her hand and saying what happened a few years ago, it was do not do it. Why would you want to . I remember i had a job offer given to me years and years ago that was then rescinded because they found out i had a baby at home i remember thinking im going to get them all my friends said only if you never want to work on wall street again that was the advice. Today the advice is, you go girl right . You take it to your reporter you take it to twitter whats different is were all behind you and we will amplify you and support you. And well hire you and thats a big difference versus a few years ago. Does it matter if you want to put your name to it . Do accusers who request anonymity have led credibility or not the numbers are getting so big, if you have a story that has three people naming themselves and a bunch of anonymous accusers, done that sounds a little dangerous. Some people could of exact retribution. Which is why its good these stories are so well reported and documented you see the washington post. Finding someone who was out to trick them. Theres value in great journalism. Feeling dangerous, some women felt like theres danger at work for a lot of years so. Do you sometimes wish you were entering the street now as opposed to back then are you saying do i wish i was younger . No. Is that your question do you wish the culture had been different back then, the way it appears to be shaping up now . Its hard to look back. Ive had such an unbelievable career i was up with one of the fortunate ones i had my ups and downs its hard to say that id trade anything that happened with Something Else i have to tell you, i love what im doing now as an entrepreneur founding elle vest we see this massive Market Opportunity because women dont invest to the same degree men do the street overlook this had opportunity. To be able to engage with women and feel like youre doing good because by the way, what is something that has united the women who called these men out in the fact theyve been economically able to do so lets not forget the women cleaning the hotel rooms, you know, waiting the tables, et cetera in this country who cannot afford to call out their harassers. These women are able to. So Money Matters here. Thats what were trying to do to help at elle vest. Its a risk event right . Stepping forward is a big risk event. And note susan fowler when she came out against uber already had another job. Sally, next time bitcoin . Okay, bitcoin next time. Thank you sallie craw collect. Sewell for a news update. Good morning. Heres whats happening at this hour democratic representative john conyers facing several Harassment Allegation has been hospitalized for a condition related to stress according to local media in detroit conyers who served since 1964 in congress returned to detroit on tuesday. North korea releasing video of its latest Intercontinental Ballistic Missile launch which it claims can reach any target in the United States leader kim jongun inspecting the missile and celebrating the launch. Former president obama met with chinese president xi jinping on wednesday during a visit to beijing its the first time in 15 months the two the have met last time was when both countries ratified the paris climate accord. And pope francis arriving in bangladesh where he met the president. He is demanding the International Community take decisive measures to resolve the causes of the mass exodus of Rohingya Muslim refugees from myanmar breaking his silence over the matter. Youre up to date. Thats the news update this hour now over to jackieie. Good morning. The department of Energy Reporting that natural gas inventories fell 33 billion cubic feet smack in line with expectations we didnt see a lot of Price Movement a little context, minus 50 last year the fiveyear average about minus 55 this is a little bit less perhaps because the temperatures especially on the east coast have been on the warmer side than normal. Natural gas is trading over the 3 mark, its a psychological mark up about 6 in the last three months, 4 in the last month. Back over to you at post nine. Jackie, thank you very much as we go to break, a check on stocks this morning. The dow up 126, holding pretty zeddy. Look an the lag yards on the nasdaq for november. Autodesk, semantic, e a, squawk on street copies dont go away. So how old do you want to be when you retire . Uhh, i was thinking around 70. Alright, and before that . You mean after that . No, im talking before that. Do you have things you want to do before you retire . Oh yeah sure. Ok, like what . But i thought we were supposed to be talking about investing for retirement . Were absolutely doing that. But theres no law you cant make the most of today. What do you want to do . Id really like to run with the bulls. Wow. Yea. Hope youre fast. I am. Get a portfolio that works for you now and as your needs change. Investment Management Services from td ameritrade. Welcome back on a day of new market records, nasdaq opening in the green after its worst day in three months. Amazon bouncing back as it brings alexa to the workplace. Digging deep near tech stocks and amazon, Colin Sebastian joins us from baird along with mike olson who covers can piper jeffrey. Welcome to you both. Thank you for being with us. Mike, real quickly on amazon, how significant is this announcement of alexa going into the workplace . Well, this is just part of amazon continuing to push into new markets. If you think what theyve done with grocery and aws in general over the last couple years, theyve added more than a trillion dollars of new Addressable Market this is another example of that. Colin, what do you think the significance of all the announcements weve heard this week ultimately will be . Well, even though amazon is already the largest Cloud Platform in the market, theyre still playing offense. And i think whats most impressive is a rapid pace of innovation particularly moving from some of the Core Infrastructure services into more advanced technologies such as machine learning, Artificial Intelligence thats going to help drive more Adoption Among Enterprises into the cloud. And you guys are both positive on amazon colin, your price target 1100. Mike, yours is 1200. Colin, what do you make of the selloff yesterday we saw what do you think was going on with tech . I think the primary motivator there was likely end of the year profit taking. Certainly not related to performance of the business based on the trends were seeing in ecommerce, online sales, for example. There are issues on the periphery around regulation, tax reform, the political firestorm over social media to could be weighing on some investors minds. In general its profit taking. Mike, would you add anything to that . I see youre very positive on apple. On days like that for you, is it just an opportunity for investors . It is i think its an opportunity and i would agree with those comments than profit taking is probably primarily related yesterday to tax reform and kind of thoughts amongst invests about shifting into other sectors are away from tech as far as apple, thats definitely one we would take advantage of on pullbacks as well as we feel that the kind of super cycle that everyone is talking to is the super long cycle so to speak. Colin, this is just about chip prices and where we are in that very classic volatile cycle. Is there a chance this might look a lot different in january or february . Well, there is a seasonal component to the tech trading. Weve seen you know seasonally that stocks like amazon have typically traded off towards the end of the year although were talking about a sector thats traded up by 50 or more for the year to date for the large cap stocks so if there is if were daking a breather temporarily, we would use that opportunistically as we look towards january and february. Im sorry, go ahead. Mike to come back to apple. You just said the super long cycle. Can you expand on that a bit why will it be super long . Absolutely. Everyone had talked about abbreviated super cycle that would have been in the september and december quarters with the launch of iphone x and 8 and 10 along with inventory constraints. We expect that not only does the december quarter benefit from iphone x but also the march and june quarters. It gets spaced out over time which is better for the stock we think. As we look into the fall of 18, we expect expanded array of new iphones. We expect potentially a plus version of the iphone x as well as a new flagship version. And then we think theyre have three versions total so maybe a lower priced version of the iphone x which is the current version at a lower price point as well as the plus version and maybe the iphone x s, the new version. We just showed what that would look like. The xs and xs theyre going to have to back to regular numbers, arent they i think so. Its getting confusing but i think the point is that the next gen iphones, the next new form factor is going to be expanding and should create another leg of upgrades as we get into next year. Finally, what would that mean, colin, just for the rest of tech . Its been an incredible year many different prongs. Obviously theres the social media platforms and so forth if amazon has a super long cycle, that has big implications, right . Well, i think in general, all of the device penetration were seeing not just on phones but obviously in the smart homes and offices and industries, that is all driving a lot more opportunity for the large internet platforms to create revenue and drive growth so the secular trends remain very robust. The trends overall favor the large Platform Companies we suggest investors stick with those large cap stocksing. All right. Thank you both Colin Sebastian and mike olson appreciate it. As we go to break, take a look at shares of series today up after reporting a smaller than expected quarterly loss Comp Store Sales down. However 15. 3, more than double the consensus. Im amazed at the share price reaction. Squawk on the street will continue in a minute volatile markets. Something we all think about as we head into retirement. Its why Brighthouse Financial is committed to help protect what youve earned and ensure it lasts. Introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. While maintaining a level of protection in down markets. So you can head into retirement with confidence. Talk with your advisor about shield annuities from Brighthouse Financial established by metlife. Want to alert viewers to more news coming from the wall street journal regarding its reporting of a potential deal under which cbs wok acquire etna, certainly worth repeating it would seem given the move in the stocks, as well. Updating the story they first broke awhile back saying theyre getting closer to a deal could be announced as soon as monday value between 200 and 205 for etna cash and stock but largely cash and as is often the case, saying you cant guarantee it i got nowhere on my reporting on this ill leave it to the journal on this one find another battle to fight well see if we do get there theres been a great dale of anticipation perhaps building we would see something, although vertical integration some people are worried about it given the dojs move on time warner at t tes have i different industry and very Different Reasons doesnt seem to be holding them back from pursuing this deal. You wonder if its going to catalyze more types of deals like this. Without a doubt. We will wait. For now the dow jones headlines. Over to the cme group and rick and get the santelli exchange. Morning, ricking good morning, carl liking to welcome the sultan of flows, charles biedermann. Aloha, charles aloha. When it comes to bond fund flows, in the u. S. , things seem to be slowing down a bit what do you see, charles well, up till november, there were huge inflows into u. S. Bond funds. As it seals more likely were getting a tax deal, flows have slowed as people expect bond prices to go down. But we are seeing a bigger sustained inflow into nonu. S. Bond funds remember the ecb and bank. Japan are spending trillions of dollars to buy back Financial Assets and nonu. S. Bonds are the most popular asset theyre buying charles, that brings up a great point. I call it the loop all right. So our bond market is trying to right itself we could say that were reversing policy and we are. Were still buying some of the runoff we have raised Interest Rates. Whats going on in japan europe creates bond buying because of what you said. Theres still purchasing and that creates a loop. The relative value trade and it does affect our rates by keeping them low is this going to continue to go on all through 2018, in your opinion . Well, until the ec b b oj stop printing money, yes moneys fungible if youre buying more money chasing a same amount of Financial Assets, price can only go up and yields down on bonds and higher prices on so until theres less money chasing more shares or more bonds, prices are going to keep going up and the big problem is going to be when they, obviously, stop printing money you know, it could get really interesting. Okay, with regard to the uk, you know, so many interpreted brexit wrong they didnt see it passing it passed. Then they thought there would be darkness, lights out for the uk economy. It hasnt been then theres no way the divorce papers are actually coming, and they seem to be. When you look at the uk, what are you seeing in flows there, considering some of the big moves with the pound moving higher against all the majors this week . Well, people, investors seem to believe the nonsense the flat earth economists, i mean, that leaving the ecb is going to be a negative i think leaving the ecb is a positive its full of regulations, why you cant do this, why you have to do it only this way, why you need regulators and bureaucracy to get things done without that, england, i think, will prosper the pound is rising, the ftse will rise, and whats surprising is individual investors are not seeing this, because they believe the nonsense its a flat earth, plus, minus is a negative so, i really think that if brexit does happen, the uk is a good place to buy stocks excellent charles, thank you for your thoughts always fascinating kelly, back to you thank you very much, rick thank you guys were just mentioning here that the stock market this morning has not escaped the president s attention. He tweeted just a moment ago the dow broke 24,000 for the first time if the dems had won the president ial election, it would be down 50 from these levels and Consumer Confidence he noted would be, quote, lowend glum. Thats the tweet from the president just a couple of minutes ago on this record setti setting morning. Quite a prognosticator with that exact percentage decline that would have taken place. Lets get over to john fortt and look whats coming up on squawk alley. John david, its a show thats going to have a lot of heart cnbc talked to the number two at apple about their heart study and were going to have the former google executive whos just launching an apple watch band that can take an ekg. somg osawquk alley alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Fidelity. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Its the Season Finale of secret lives of the super rich and theyve saved the best for last definitely some of the best views coming up. Johnny carson lived in his malibu home for about 30 years and now his former beach front paradise is up for sale for 85. 1 million. His family sold it after johnny passed away in 2005, but still has his koi fish and some of the most amazing views in all of california when you roll up you begin to see what made the talk show host pull out his checkbook and turn this oasis into his fulltime residence for almost 20 years. There are trees growing in this living room. There are its really an indoor ash ree tum. Every inch of this 7,000squarefoot mansion is drenched in sunlight, thanks to the 30foothigh wall of windows and massive Glass Ceiling with a giant gilded sun sculpture at its center outside is where johnny soaked in his success with a waterfall that flows into a Swimming Pool carved into the rock terrace and a pond where even the fish date back to the carson years guys, the property also has a sunken tennis court with a clubhouse. Both were gifts from nbc to show their appreciation for his decades hosting the tonight show. And this was the the views here, i mean, they are just breathtaking and i was as a tennis player very jealous of his sunken tennis court. Guys we cannot wait to see more, robert thank you very much. Robert frank i just want to mention senator mccain is now on the record saying he will support the senate tax bill. He says i believe this legislation, though far from perfect, would enhance american competitiveness. Dow close to session highs up 144. Mok le srtins a ment im here to talk to you about how at t gives you more. And so am i. Like how when you buy the amazing new iphone 8 you get another one on us. See we give you more phones and more spokespeople. Are you guys doing a spokesperson thing right now . Yes. Awesome, can i be in it . Well, its kind of like a twophone deal. So two spokespeople. Got it. K. Thanks. At t its time for more. Its time for more. Buy the amazing iphone 8 at at t and get a second one to gift, on us. Another day at the office. Why do you put up with it . Believe it or not you actually like what you do. Even love it. And today, you can do things you never could before. Youre working in millions of places at once with iot sensors. Analyzing social data on the cloud to create new designs. And using blockchain to help prevent fraud. So get back to it and do the best work of your life. Welcome back to squawk on the street. Markets starting the trading day strong with the dow and s p surging to alltime highs. Energy the best performing sector, up about 1 as they get things going there devin, apache, hess among the leading stocks, all trading about 2 higher. That does it for squawk on the street. Lets send it to the start of squawk alley. Back to you. Dom, thank you very much. Good morning, its 8 00 a. M. At Amazon Headquarters in seattle, 11 00 a. M. On wall street, and squawk alley is live