Welcome to squawk alley. Im jon fortt. David faber and Morgan Brennan are here a lot to get to today, including winners and losers from last nights Golden Globes. Well begin with todays market drop, though stocks are off the lows, actually at the highs of the session. Bob pisani has whats driving todays down swing and maybe swing a little back up more than a little. We almost went positive a few moments ago on the s p 500 heres the intraday. This is similar to friday. The low print but v was there at the open friday we tended to have faded into the middle of the day, looked more like that. Well see if the same pattern happens. For the moment, we touch even going on the s p ill show you the sectors here cyclicals tend to be most affected energy on the upside today mostly the big integrated companies that are up, shale down, e banks down but off the lows same with transports not a good day for the transports overall retail is down, but again, off the lows thats the general pattern you see. Some of the transports, j. B. Hunt got a downgrade from bernstein. Weve had problems with softness in the market. Theyve called them out on that. This tends to get hit whenever you have concerns about softness in the freight market. Elsewhere, though, some pretty nice volume in alphabet, a big monster day, huge volume today in that particular group it was upgraded over at Pivotal Research theyre talking about new and expanded Revenue Streams under the new ceo there. This is a new historic high. A fairly flat volume day, the volume has been heavy in alphabet new highs in the industrial space. Raytheon, lockheed martin, 52week high General Electric, 11 on december 31th. Were in a mini rally, 12 and change options activity in the last few days there seems to be some kind of betting going on,no news but some kind of betting going on that the recovery in General Electric will continue finally pointing out a lot of people asking over the weekend about what happens in these kind of events with military operations or some kind of terrorist event here usually this is cfars research, a very isolated event. They dont usually have big economic consequences. 9 11 did, but the s p 500 usually billion usually bottoms down about 5 in a few days and then you recover the losses these events are generally not largescale economic events. Well see if that is the case here so far not a tonov of Market Movement apple, a big week for Consumer Electronics. Web bush raising its mark up to 400 need h needham is downgrading it to a straight buy dan, ill have to push back because youre more bullish on apple. Weeks or months, just some great execution. Isnt it riskier to buy the stock here given how the multiple has expanded . Look, in my opinion right now, youre looking at a super cycle for apple. In my opinion, when i look at whats happening in china, 10 , 15 above expectations, i think were just in the start of what will be a rerating of the stock. Right now, youll get the services business. Thats 15 per share but it all comes down to the super cycle. What were seeing in the install base right here, i think were only halfway through a rerating in apple, which is why i view the bull case now is 400 per share. I expect a strong being raised from cook and cupertino going into next earnings well round up and say the stock is at about 300 now 400 you expect it to move up better than 30 , but on what news were not going to know if this is a true super cycle until, like, september, october probably at the earliest is the stock going to hold up that well throughout the year until then i view it as a iphone 11 right now, if i look, thats getting probably about 5 to 10 above expectations fundamentally, you look at the next phase going into 5g, that will be the second half of the cycle. It will hold up well because were looking at 190 Million Units in terms of what we see for iphone in terms of all of our checks, especially in china, i believe right in now in china 5 , 10 above expectations, it will be a onetwo punch. You could have some speed bumps here and there, but in my opinion, a year from now the stock has a 4 in front of it the fact that almost all the move weve seen in apple in past year has been multiple expansion, talk about the fact theyre in the midst of this rerating what do the new goal posts look like in terms of fundamentals and how investors need to be assessing this stock i think its a combination. A lot of investors have missed the sort of run here on apple. I think you look at a stock up 80 plus, theyll say its all good news. Its a rerating but the key number is 350 million of 920 million install base are in the window of an upgrade opportunity. Thats the key you go into a 5g cycle with iphone 11, that combination is how you see numbers move up and a rerating that combination is how you get to 400 in our opinion all right evercore raised a price target to 315 over the weekend, but amin, you went from strong buy to gardenvariety buy here i wonder, now is the time of year we typically get from apple a sense of how revenues did on the app store between Christmas Eve and new years day do you think we get those numbers . Yeah. The aggregate, the december quarter was up about 18 to 20 . U. S. Is up in the low 20 range. I do think the apps are growing in lines of Service Expectations at 20 growth. Apple has been scaling back the information they keep giving investors consistently i would imagine if they have to disclose the App Store Data between the christmas and new years time frame, they would have already done it i would say its unlikely to get them now, but based on our own number, we think in aggregate its the high teens. Looking forward to earnings in the next come of weeks, is this a name thats priced for perfection what happens if it doesnt meet those expectations on wall street right now listen, being up 80 last year, theres a lot that ties into the story already if you dont meet expectation, there will be a negative reaction and disappointing for people the problem is if you look at the december quarter guides, the numbers out there, apple got december quarter revenues up about 36 sequentially at the midpoint whats notable is only 200 basis points than what day v they did in december of 2019. The bar is low in the context of the iphone 11 has done so far. Dan, amin, thanks upex a nt,n exclusive harold hamm coming up on the other side of this break. Stay with us the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. 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Joining us to discuss, Continental Resources founder, harold hamm, currently executive chairman of the company. Always good to have you. Oil prices up on this, not that much i guess in retrospect given the size of the tensions so to speak. Do we move up from here or are we muted i dont believe weve had a meaningful response to whats happened in iran i think, you know, prior to any of this occurring we were seeing a tightening of oil supplies, you know, due to basically producers here in the u. S. Using capital discipline and slowing down on exploration. Were in a new era we have the capacity to overproduce. The key is making sure we dont. We need to balance supply and demand, and otherwise its not sustainable for Oil Companies in the u. S. Or anywhere in the world. I think that was happening prior to this situation in iran. I think it was bound to happen over there they got by with a couple events, shooting down a drone, disrupting the supply coming out of tsaudi arabia they couldnt help themselves. They hadtried Something Else they thought theyd get by with it, and this time they couldnt. What are you going to be looking for in terms of something that would meaningfully change the trajectory of oil prices as the tensions continue to kaes late i think the tightening of oil supplies, producers are listening to the market. Theyre not going to overproduce and oversupply the market in the future weve been in an era of abundance for five years, and, you know, there for a while, the mentality was the oil patch, but thats waned, and everybody realizes we can overproduce, were not going to, and certainly were going to ask what the market wants and provide that, but were not going to oversupply the market and futures. So i think youll see that tightening of supplies as we go forward regardless of what happens. Im not terribly worried about whats going on right now in iran well do the right thing we have a very, very good secretary of state, you know mr. Pompeo has great relationships in the middle east and hes certainly capable of handling that situation. Harold, what do you think this does to the export picture, specifically demand globally for u. S. Products . And not just because of the events in the last cup dales but really the last year or so with tanker seizures and other issues with iran in the middle east i cant help but think that has added a level of risk, uncertainty, perhaps driven up costs to move some of the products from that region of the world. Does it actually fuel demand for what the u. S. Has to offer well, it certainly does you know, everybody realized how unstable and how volatile that region is. Here again you see a situation has blown up and there should be some risk premium. The market is tempted to build that in, but i think were probably headed for a 75 oil price here in the u. S. Regardless within the next six months thats where the market is going and well get there. Its not too much to ask, i mean, with this economy, how strong it is 75. The economy has almost doubled since trump has been in office youre saying certainly it can sustain that youre saying you expect wti crude to be at 75 within six months that would be a huge move, would it not its not a huge move. Opec, you know, has said over and over again they want 80. I dont know why they couldnt attain that. So, harold, i want to get your thoughts on the fact that the recount in the u. S. Has come down by a quarter in the past year, what thats meant in terms of the local companies and what that looks like on the ground right now for Continental Resources and the sector at large. Well, we see the count come down by another eight this past week its been dropping about four a week it may get down as low as 7. 50. It may get to 750 yet. Thats what you live on today is oil. Natural gas is so cheap its given no help at all harold, well leave it there for today. Certainly know well have you back i would assume pretty soon. Appreciate it. Harold hamm, chairman of Continental Resources. Thanks very much, david when we return, ces, the Consumer Electronics show, kicking off today. I will be reporting live from vegas all day tomorrow and wednesday. What im looking for this week at fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk welcome back to squawk alley. European markets set to close in just a moment. Theyre trading lower at this hour, keeping an eye on iran taking a step back from today, 2019 ended up being one of the best years for european stocks since 2009 big question is what to expect for 2020 Goldman Sachs expects europe to see tepid gains of just 8 economists are expecting growth to marginally improve across the european continent, reaching 0. 7 gdp growth in 2020, rising to 1 in 2021. Now, this year of course pointing out that manufacturing data is still far from stellar, particularly in germany and that any anticipation of global headwinds including middle east tensions and Rising Oil Prices could impact europes growth picture. We say that because theyre the largest Oil Importing region, making it vulnerable to supply shocks and price volatility. The arguing a 10 growth negatively any disruptions to the transportation of oil would make europe more reliant on russia and the completion of the north stream two gas pipeline. Russias Energy Minister said in late december this pipeline will begin flow big the end of 2020 despite the ug. S. Pushing back this oil story has an impact on europe back to you. Thank you lets get to sue herera with this hours headlines beyond the market there are a loot t of them today. Heres whats happening at this hour the american killed in sundays terror attack in kenya has been identified as Henry Mayfield jr. His family said military officials reached out to them last night to report he had been killed in action mayfield joined the military after graduating from high school in 2018 he was just 23 years old a 5. 8 magnitude quake hit puerto rico before dawn today. It unleashed some small landsidesslilan landslides causing Power Outages and severely damaging homes. There were no reports of casualties former president ial candidate Julian Castro has endorsed Elizabeth Warren for president. He tweeted they share a vision of america where everyone counts and hes proud to join her in the fight for big structural change and pope francis wishing peace to catholic and orthodox eastern churches that celebrate christmas on january 7th he addressed a crowd from his window overlooking st. Peters square you are up to date thats the news update back to you on squawk alley. Morgan, back to you. Sue herera, thank you when we return, shocked at netflix, disappointed by apple we break down a night of upsets at the Golden Globes the s p less than two points from the flat line the hero of this next movie a naive, misguided child who spreads naughty propaganda and only has imaginary friends his name is Mark Zuckerberg. Sorry. This is an old intro social network im talking about jojo rabbit. Leads the industry in value while our competition continues to talk. Talk, talk rolled into the tv game with the morning show, a superb drama about the importance of dignity and doing the right thing made by a company that runs sweats p sweatshops in china. So you say you wont, but the companies you work for, unbelievable apple, amazon, disney, if isis started a streaming service, youd call your agent, wouldnt you. So if you do win an award tonight, dont use it as a platform to make a political speech, right . Youre in no position to lecture the public about anything. That was Golden Globes host Ricky Gervais taking a shot at not just apple but streaming Services Amazon and disney the night was filled with banter in the end, it was hbo who took home the most hartford wadware. Netflix only left with two were joined from San Francisco to break it all two. Great t to o seeyou good to see you im not sure what was more buzz worthy, that netflix wasnt the big winner of the night or some of the commentary, Ricky Gervais or Sacha Baron Cohen, we played a sound bite from that going after Mark Zuckerberg again. I think its fine it was interesting for one because those were the movies that didnt do as well and the more acclaim was from streaming Companies LikeMarriage Story and others obviously, its a change in hollywood and the people in power. You saw tim cook in the audience jeff bezos at a lot of events in l. A. Google will start showing up at some point, maybe not the founders its a changing time for hollywood. I was surprised they didnt win more of them because a lot of the movies were better than the ones that won. These awards arent the point. I want s the growing power of the streaming companies, especially netflix, which continues to dominate with apple and others coming up behind them they say in comedy youre supposed to punch up to be funny. Donald trump didnt get called out very often, but the Tech Companies did. What do you think that says . Right well, this is whos in power in hollywood. Ricky gervais was making fun of hollywood people for working for anybody. I think the concern in hollywood is not so much President Trump but the Companies Taking over and running everything that makes sense to me you know, its not like look, this is not the most theyll work for anyone. Its important they focus on Tech Companies, who are their new bosses essentially interesting to hear you mention google and you expect to see more executives from google to show up i real eaize its a major streag platform, but will they push more in hollywood . Several years of a lot of hollywood stuff. I think youll see more strength from apple, obviously, which is making big investments, amazon will continue to do so, so i dont know how google can stay out of it. Its a question of