Historically it may end up being more and more of an an oration that his experience was the whole yield curve Interest Rate environment. We had a misery index back then where you add unemployment and inflation together. It was up in the low 20s. We may never see that again i hope we never see that again unless we do if we do, that means something is very wrong. A man and his moment can you imagine a fed being so taking really the world on in terms of im going to break the back of inflation, i dont care what happens to go to 21. 5 on the prime. What year is it now, 2019. He dies at a pretty old age. 92 years old. 92 years old and struggling to get to 2 because he harnessed or vanquished it so effectively when he did. He will be remembered. He was a very tall man and nice man. I know you spent some time with him. He was on the show a lot he was. The same day, you are dealing with cookie monster or what was it, oscar the grouch you are oscar the grouch. The puppetear behind big bird passed away on sunday. Right now, im worried about a lot of things. Great iconic musicians and actors from my childhood they are getting up near volcker. Clints movie out about richard jewel. Hes directing at 89 amazing pat sajak hes fine but you know he didnt hoover last night. Vanna did how do you know that . Okay. To the woke, my friend. But you didnt see it i heard she twisted the thing around and accidentally hit the wrong one. I grew up with her pat is funny. Hes unbelievably good at doing that shes fine shes not pat but she made up doing it for the next three weeks. Getting old is a bitch im telling you. He had an intestinal blockage. Emergency surgery. Im fine, i think. I hope so just the two of us today maybe it is just gas. Why are you laughing you know what im talking about. If anybody knows auto sales falling in china for the 17th straight month in november down 0. 6 more than 5 in september. Ford expects 2019 loss in china to behalf of what it lost last year a statement to caution that should be considered official guidance for the china performance. Sticking with china, consumer inflation rose to an eightmonth high as the price of pork doubled from a year ago. It appears to be nearing a peek. Chinese imports of american soybeans increased 13 fold compared to the same time last ye year as trade talks continue further agreements fell outside normal trade channels well do a little political news now in the headlines i see the bounce in your step as you get to this story eyes are lighting up a warning democrats in the House Judiciary Committee plan to announce two articles of impeachment against the president today. Those are abuse of power and obstruction of congress. A News Conference for all of this scheduled for 9 00 a. M. Today. Of course, well continue to monitor and keep our eyes on where it goes. Well switch to Corporate News a former manager at boeing speaking out ed pearson said he flagged problems with the 737 max in the months before two deadly crashes forced the grounding of the aircraft thats the important part. In the months before he worried a push to increase production would lead to critical mistakes. Pearson testifies before congress tomorrow. In an exclusive interview, he described the conditions at boeings plant what words would you use to describe that factory at that point . Dangerous unnecessarily. Taken an unnecessarily risk, chaotic, disarray. He says he sent an email to the general manager of the 737 max program in june, four months before the crash of the lion air jet in indonesia he expressed concern about exhausted workers who were, quote, inadvent antly implementing hazards and said for the first time, he would hesitate putting his family on a boeing plane and suggested shutting that plant down they said boeing took his concerns seriously it is worth noting that those two crashes happened it appears in large part as a result of this mcas system which doesnt seem to be necessarily related to some of the concerns he was raising at that time but maybe suggestively there are problems within the culture and pushing things ahead if you were to agree with this. I worry about a lot, as you know i know you do too. Usually not flying, still. I try not to worry. I think about it before hand look at the record. Dont get any food out of a vending machine. Your life is in much greater peril as you do that as getting on an airplane so thats good why are you laughing a lot of that has to do with boeing and over the years how phenomenally great i know, im not saying we always need to say they are great but i think in general, it is a great company. Great employees that try to do the right thing 99. 99. We are in a sixth signal world when flying or making pharmaceuticals. Six sigma where managers would try to get errors down to one in 10 million that is pretty good. Uber is facing this in a big way right now. The incidents that total 3,000 we talked about this yesterday, santa fe is ending research in dieabetes research. Part of the overhaul the company will instead focus on cancer. We saw one of the acquisitions yesterday. Well have more on this decision when paul hudson joins us on 8 15 eastern set the Nintendo Switch gaming system on sale in china. The console helped the shares jump to a 19month high. Trying to win chinese consumers who lean towards free to play mobil games. Shares of agilent are higher this morning to tell you what is going on here bill ackmans pershing square. Hes up 50 . What is the biggest winner . Do you know . This year, i dont know his biggest winner most of it is not straight activism but Value Investing meanwhile, shares of netflix dip briefly following the disclosure as some suspected that netflix would be ackmans next big buy i saw an article that had the ceos of amazon, netflix, make r microsoft riding little race cars and i think netflix was top dog. The world is all coming around to netflix you saw what nbc is going to spend on peacock 2 billion you think thats a lot or a little i think it is a lot the same at at t is spending it is on content i think it is a much more disciplined view relative to netflix and at t, frankly. I think investors were expecting crazy spending we will end up going to peacock in your view you know we should hope i do hope so. We all worry im doing a lot of worrying today. With he worry about cord cutting and Everything Else but the content is just getting different pipes. It is distributed differently. Hopefully the content will stay valuable weve seen analog dollars move this is with sports. Any minute now something could happen with Earnings Report or ecp decision you cant repeat this. We can run live ads still. Well have an ad segment on. Tv ad segment not falling. Im not worried you are not worried it has to last longer for you. You had asked the question. You look distracted chiplote, united and hilton may have been. Stitch fix revenue has grown a number of active clients rose 16 . Shares are rising and could be set for their best day in six months coming up, weigle talk to the stitch fix founder and ceo on squauccnbc for her very firs interview. Coming up, the fed decision it is the second tripledigit day if it holds on the dow down about 120. And well tell you about investment buys that may be hurting your 401 k the problem and solution, straight ahead we call it the mother standard of care. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. The fed is getting ready to kick off a twoday meeting joining us now our guests. Chief economist, macroeconomics. Youve been negative for a while. You hate these tariffs and the trade war. I hate the trade war friday, with you were calling it either a fluk or i think so. You seem inclined to think it might be a fluk and that Consumer Spending is at a last gas. You mentioned it is a marathon, not a sprint it is the holidays, a lot of numbers are flying around. It is a long season. We dont know yet. The evidence is very mixed we have a bunch of business surveys very weak. We have payroll numbers that are pretty strong. Consumption is okay. It is not going to charge on the way it did in the spring and summer a lot of cross current swirling around we dont know yet. I hate sitting on the fence. You may not be either or. You may be a little of each . Might be. Either way, what has happened in the stock market, you would have to say there is a disconnect there regardless. There is. You think thats way ahead of itself they dont want to call it qe, it looks like it Bank Reserves are being pushed higher the market is okay it is not unsanely overvalued. I never really bought the recession story in the summer. You would have thought muddling along i think that is the most likely single outcome. Thats not terrible. It doesnt justify the market taking another leg up from here in the short term. You confine things to buy that can outperform. That is what you are interested in we are seeing the economy still needs to have a strong consumer in light of this strong consumer which continues from the strong jobs numbers we saw over thanksgiving and the Holiday Season we think you can be overweight some parts of tech the consumer is seeing a real wage growth. It doesnt need to be either or, it can be and or both. The industrial economy is soft as evidenced by pmi and business surveys. As we look to next year, we are seeing that you are going to have the lagged effect of these fed cuts youll have 60 globally all of that is asking for stimulus there is always this argument that certain investors want to own certain names. There is another view people want to lock in certain gains. People are trying to be efficient with their money how does it play itself out in terms of how the next couple of weeks plays out . Im asking the question. Nobody wants to be in the twoweek forecasting business. These terrible things are real things that can be outweighed by news if something blows up in the trade war, positive or negative. That could blow this away. That could actually happen we are going to hear something about these tariffs on december 15 the market has pretty much priced in the idea that it wont happen if the announcement comes, we are going to do it, that will swamp the market for a day or two. Microsoft, adobe, Lamb Research yep even if the market is plot, that will go down less exactly right bank of america, black rock we are seeing the banks do well, Corporate Lending is doing okay credit soft has not become a problem. Those stocks are very cheap. Bank of american is a name weve owned a long time and looks attractive going into next year. On the tech side with microsoft and the azure business and pivot to the cloud adobe is a grower. You have Free Cash Flow that is 150 of net income it is not as expensive as it may look the return is 50 cost of capital is higher. Producing that cash flow, that is a pretty straight forward story. Doesnt mean it will be straight up between now and year end but the rest of the month, absolutely you are looking for a downward revision. If the ghost of future christmas visits you, will you let us know what he tells you . I will. Thats what the survey says. They are not always right. Sometimes they are sometimes they are a year later. We are trying to hit a moving target it is tricky all right dont be talking us here and distracting us coming up, more on squawk box. Well tell you about a common investment mistake and it comes down to how your in Investment Options are listed alphabetically you wont want to miss this. When it comes to your customers expectations, theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. Welcome back to squawk box. Right here on cnbc we are going to talk about investing in your 401 ks this morning. It is often an alphabet soup investors are more likely to choose funds listed at the top of the list. This socalled alphabetical buy is costing investors welcome our guest. Coauthor of a new study on this very issue good morning to you. Good morning. I have to say i was floored by this idea that where the company and what is listed in the 401 k in terms of options literally based on the alphabet makes a difference it does it is surprising but the data bares it out we find that investors overwhelmingly choose early alphabet stocks as opposed to lower that come on their plan wren u menu does that mean everybody is that dumb. It is a nonconscious dumbness you have an idea of what youd like to invest in. You start at the top you find something that satisfies you okay. Hold on. We do this show every morning. One of the things i like to think is that we are democratizing the markets to have fair markets. We want both professionals and my mother and father and anybody else to be able to invest with the same information and same degree of success, hopefully youve always you may not believe you know what you want to do but you dont know where to keep him. The monkey thats true because you are sure the monkey can win but they throw other things i wanted to have a chimp to come on the set quarterly. So this is you democratizing the market no. The same phenomenon what should we do about it there is a lot of things we can do first to recognize everyone does make biased decisions. The more you know, the more can you overcome when you sit down to make your 401 k decision, decide what is important to you first is risk important to you but the indication is that you are going down so resort resort the list. Then the thing that is most important to you will be at the top and look down the list andrew, you know how Many Companies name themselves. It used to be at the top of the phone book hold on this goes back to personal responsibility right, joe nannie state versus the so what is the answer here . If people are literally looking at the thing and dont have the patience to get to the bottom of the list, that is a problem. It is a problem employers used to define benefits planned now it is a more defined contribution plan, it puts more responsibility there is some middle ground. Employees can be advocates is there a way this idea that employees can sort these for you or provide tools to make it very accessible to do that . They could resort the list, they could choose better defaults so if you dont want to make a decision yourself, you are already opted in or put up a first screen that says then you get into a dangerous place. If the default is fabulous, it is fabulous. If not, it is not so fabulous. Default to investing something is better than nothing. That is not an alphabet bias . It is not but it goes to the whole idea about whether individuals on a whole we have great viewers here who care so deeply about the market but there is a lot of people who dont care enough, frankly, i would argue. Should we leave this all to people to do what they like . I think there is a happy medium where some good defaults are chosen for you your funds are sorted according to some criteria or a screen that says before you make a decision, sort according to your best criteria and allow people to make their own decisions. Thank you that is some news for you. The next time im on the plan, im going to sit there and read to the bottom. Is there a resort button there is usually a simple resort button. Does van guard and fidelity and these guys, do they have technology on their site to allow any of this to happen in a better way not your 401 k. That is your deferred comp plan, which is 10 times as big as your 401 k. Some people have 401 k plans and others have deferred comp plans. A highly paid employee like you. Be honest. Dont pretent you are like everybody else using your little 2,000 ira contribution. You are not. You work for the New York Times as a big time agent. Talk about deferred comp my agent by the way, thank you. An alert for business travelers if you are planning to fly between now and january. Well tell you how busy your airport is going to be a look at yesterdays s p 500 biggest winners and losers biggest winners and losers through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Good morning a big gain getting into the song here. Just the two of us i wasnt thinking about that. I was thinking about the market. Down 140 we were down about 100 when we started with the two of us here. Friday, we had the big jobs number a few weeks ago, we thought december was turning into like last year, which it didnt at 300 points on friday after the strong jobs report. Yesterday, we were down about 110. Today, it has gotten worse we are down to about 140 on the dow. I did some research and found out today is december 10 that was the research i did. I learned that december 15th is five days away we are assuming december 15 is fine in terms of the tariffs in the market right now i think it is assuming that that is not going to get worse on the 15th maybe the marker now is saying we need to Say Something i cannot make way of the progress impeachment, you know we are watching the con vision. Org. You started this with the politics the political news. There were some headlines this morning for people to hear about. If i did the predicted. Org. I would bet money more democrats would vote with republicans even in the house than there are republicans that vote with democrats. In both the house and senate because there are some democrats waffling on if they go for the articles but i bet there are some republicans. I bet there are not. You believe there are none. None okay. I think there are going to be some democrats in some states. I would imagine maybe more republicans. Well bet on maybe more than zero. I thought you were going to say more than democrats. More than one. That could be a half some other big headlines this morning. Apple asking a federal court to continue monitoring two former employees accused of stealing trade secrets. A hearing where prosecutors argued the two former employees were a flight risk as they headed to the airport to return to china they say they are returning to visit family alphabet adds biology to the board. Arnolds is professor of Chemical Engineering and bioengineering the third woman on the companys 11person board. In a sweet, quote, she brings incredible academic and industry expertise