Three months. Nothing has happened. Good people have filled in. Quiet in the news cycle. New studio. I noticed. New president. Yeah. New vice president. What else is new . You have a baby. I have a baby. Thats new. This week. Lets get you caught up on the markets. Weve been watching this march towards 20,000 for the dow. This morning you can see the futures under pressure. Dow futures down by 41 points. S p futures down by six. Nasdaq down by 13. Lets look at whats happening in europe in the early trading there. Or well start with asia. The nikkei down by 1 . Shanghai was down by a half percent. As was the hang seng. If you check out things in europe, early trading there. Look and youll see never mind, well skip to energy. Never mind, well go to europe. The dax, down by a half percent. Modest declines with most of the other markets. The spain ibex is up slightly. If you check out the oil market, this was interesting. Wti rallying despite the idea that some supplies came in bigger than expected. There was news out that saudi arabia was going to be cutting back on some of its supply that it sends over to china. Wti this morning up 39 cents to 52. 64. Brent crude up 55 cents with 55. 65. Look at you with your wti news. Theres two phones back here. Is one a direct line to the baby . No, no. What do you have two . Business and personal. One is an iphone, one is a blackberry. Still holding on to the blackberry. Some people have just one phone for convenience. No. We cant relate gate that. No. With your own private server. Thats old news. See, nothing ever changes. Thats right. Lets get you through some of the big stories. Overnight, the senate has passed a budget mechanism that will be allowing Congressional Republicans to repeal obamacare with a simple majority. It was a vote of 5148, winning the support of every Senate Republican except rand paul. Its a First Step Towards the repeal of obamacare. It now goes to the house of the representatives. Separately president elect trump said he is preparing to offer a detailed replacement plan as soon as the Senate Confirms his pick. And kb home sales climbed, beating forecasts. Kb homes backlog a gauge of Housing Starts rose 1 1 . On todays agenda expecting results from Delta Air Lines around 7 00 a. M. Eastern time. Ed bastian will join us after that to talk about it and weekly jobless claims for december, import prices at 8 30 a. M. Eastern time followed by the Monthly Budget statement at 2 00 p. M. We talked about how quickly people are to embrace the notion that the rally is fading. The rally is fading. The fade continues. Fade continues. So, yesterday i will tell you where we closed on the dow. 19,954. Less than 50 points away. 45 points away. On january 6th we almost hit 20,000. We were at here are the headlines today. Market watch, beware of the trump dump in stocks. The trump dump . Easy. I know. Rhymes. This stuff is everywhere. European stocks slump, the Trump Press Conference blunts the global rally. Yesterday the narrative when he started speaking about pharmaceutical stocks, the market was up 100, went negative. Thats where people would have liked it to have closed for the narrative, but it didnt. It ended up 100 points. I saw one story that drug stocks lo stoc stocks lost 25 trillion. Dollar tumbles, bond wins as trump trade fizzles. Those are just the top five news stories. You have to make things sound exciting. This is all bullish. This is all bullish. As soon as everybody is on board, it wont happen. Exactly. Apple is reportedly planning to build a new business in original Television Shows and businesses, this could help the company offset slowing sales of phones and ipads, unless they produce a bunch of bombs. When General Electric got into the business of making movies, they were like its guaranteed you make money on this stuff, right . If you put in 100 million, you get back 150 million, right . Someone said some of these movies bomb, and they were like, what . Refrigerator sales go up 10 every year. Light bulbs, we know you think you are confident that they can have a breaking bad or the Creative Process is difficult to manage. But i think they pick up people like you who bought into apple music. They dont create the content of apple music. Will they start hiring bands, too . But theyll be like a netflix. Thats what theyll end up doing. Creating a subscription service. They need a couple of hicks to make it work. Netflix i discovered on maternity leave. Amazing. Welcome to the modern era. I never had time to watch tv before. I started about ten shows and stopped. Blood line i love. Got to watch that. Finished the first season, not the second. Let me finish this. Programming would be available to subscribers of apples 10 a month streaming music service. Apple executives have reportedly told people in hollywood to offer scripteded content this year. I shouldnt complain. Any additional content, because im having trouble. Ive tried some of the stuff you suggested, its not working. Goliath i tried. Did you like it . Yeah. It was okay. I couldnt get through super bad or stranger things. I was not in to stranger things. Could to the get there. You have to be a goonies guy to get that. I need something i can watch quick limit. I need where something happens, theres a cliffhanger. Walt myer is awesome. Like the guy. Lou diamond. But we digress. Another Goldman Sachs executive will join the Trump Administration. Dina powell will leave for her new role as adviser to trump. They served in the state department and was a white house aid during the bush administration. And her husband is a big politico type. Mccormack. Dave mccormack. Could end up working there, too. He was on the list to be the Deputy Defense secretary. Exactly. There was a moment he was up for the treasury job. When you looked at me blankly, it was because you werent listening to anything i was saying, not because you didnt know dina powell was married to dave mccormack. Andrew has a new baby in the house. Thats his excuse for everything. This week he gets to use that excuse. Thats it, though. Thats it. Next week its next week back to the tease. No excuses. Yes. Go for it. Tell us about Rex Tillerson. Why dont i . Rex tillerson faced the senate yesterday in the Congress Confirmation hearings. He acts like a ceo. They give straightforward answers. If you dont like it, tough toenails. He did address Foreign Policy between u. S. And china and rush cha. Ultimately it will require a new approach for china in order for china to understand our expectations of them, going beyond what they have done in the past, which has fallen short. Our nato allies are right to be alarmed by russia. We backtracked on commitments we gave to allies, we sent mixed signals with red lines that turned into red lights. J when asked if president Vladimir Putin is a war criminal, he said he wouldnt use that term. Did you see rubio . Yes. I saw the snippets of this. Little marco. You got a guy who is being sort of grilled on whether he will be our top diplomat. Yes. Do you expect him in congressional testimony that he will say that Vladimir Putin is a war criminal on his first day of testifying to be our top tip mat . Is it possibility he might be diplomatic . Rubio was on a soapbox like i have never then he gave this speech at the end about, you know, this is my passion, i look at what goes on around the every human rights violation occurring in the world right now is now on tillersons shoulders. He better he wanted him to Say Something if we theres a lot of cross currents and enemies of our enemy this has been what establishment types have been saying, you have to be careful what you say. But these hearings are theater in one way and history in another way. Rubio is just trying to put down his own marker for whatever goes on in the future. And then they said will you not vote for tillerson . He said ill do the right thing. Thats not answering anything. If the right thing is voting for him, vote for him. If its not voting for him, its not voting for him. He was annoying yesterday. For someone that was hes i think theres 11 republicans on this committee and ten democrats. If you get ten democrats with a know, you throw him in there, he could derail it. Andrew makes a good point, this is for stating positions down the road. I think its setting the table stakes for if something good or bad happens down the road and his own political future. If hes setting his own political future through this, thats whats wrong with politics. Lets get over to john harwood. Trump making plenty of headlines in his first News Conference as president elect. John has some of the highlights from yesterday. The News Conference underscored some of the reports that was suggested on the report that you did by Rex Tillerson. Donald trump made it clear that he intends to take a more confrontational approach with china than he does with russia. He responded to the question of russian hacking, said for the First Time Ever publicly that he thought russia was responsible for the hack of the Democratic National committee and john podesta, but he said others may have been hacking those entities, but he was not eager to criticize Vladimir Putin. He said Vladimir Putin was doing what leaders of all countries do. And heres how he responded when the question was are you going to get tough with russia . Watch this. We have a horrible relationship with russia. Russia can help us fight isis, which is number one tricky. If you look, this administration created isis by leaving at the wrong time. The void was created, isis was formed. If putin likes donald trump, guess what, folks, thats called an asset, not a liability. He also tried, the president elect did, to get back to what he considers his core assets on the economy. He talked about getting tough on pharma and requiring negotiation, using the power of the government to lower prices. Talked about going after companies that would take their jobs and move them to other countries. Said all across the board this is going to be a different approach for middle class americans. Take a listen. Well create jobs. I said that ill be the greatest jobs producer that god ever created. Biggest one that god ever created. Thats a high bar. We will see how that goes, guys. All right. John harwood are we going to talk at all got other thing that happened . Is this your you were tweeting i was tweeting about it. You were tweet flag when he decided how to handle his conflicts he didnt do what you told him do in your column and you were upset. No, i said he sort of did what i was suggesting. I would hope so. He didnt go as far as i was hoping he would go. Probably just an an oversight. Which was he would give the business to the sons, which we knew would happen. I was advocating a corporate monitor in there to provide public reports. Ken fineberg. The ken fineberg idea. So hes hiring an ethics adviser, which i like. He will take any foreign profits, give them to the treasury. That was a unique idea. Because theyll use it so well. But the ethics adviser will report to the sons, there is going to be no public reports of any sort that we know about, otherwise he would have told us, if theres no disclosure or tax reports, you know profits, very hard to figure out what a real profit is. A lot of expenses in that business. Profits . We didnt have any profits. So i thought to myself, it sounded great. As he was saying it, i was thinking this is good. This is good. The more i thought about it, i dont know if this gets you war you wanted to go in terms of the conflict issue. Thats the only thing what else could he have done . Dennis gartman is here. Get a stoploss order and get rid of properties. He want do that. He wont forget that he owns trump tower. Its tough. We never had a guy did vote for him knew these things. I just think the disclosure thing would solve everything. He didnt release his taxes . He didnt. Im stunned. Stunned. He did say when he was on the campaign trail that he would release when hes noted a dated. Is john still with us . Hes gone. I think you have to. I think a year or two in i dont know. Ill do a little digging around . Yeah. All right. Youll let us know when you ill let you know. Okay. The nasdaq coming off a new record high. With earnings season kicking off tomorrow, our market guest says that the cycle of Quarterly Results will help push the dow through the 20,000 level. Joining us now is Steve Freedman from ubs Wealth Management resource. Our guest host this hour, dennis gartman, founder and editor of the gartman letter. Whats got us up this far . It hasnt been earnings, its been the prospect for better earnings. You think the news is not already in the market . Good earnings will take us further . I think ultimately it comes down to earnings. The rally so far has been more on policy expectations. Hard to deliver more in a short period of time. The earning s cycle is positive. Q3 was a positive quarter. We expect that for q4. I think we should see a positive for the market. Hes not president yet, so none of the policies have been put in place. However theres a lot of these measures and metrics, like Consumer Confidence, nfib, hiring what they plan to do with capital investment, so people keep talking about the animal spirits. Will there be any evidence of these animal spirits in the Current Quarter . Is it too early or do we already see this better sentiment playing out in either Consumer Spending or some type of confidence measure somewhere . I would say the confidence numbers, consumer, small businesses, thats good for earnings for the year as a whole. I dont think youll see a big impact of that right away. So it just moves the market . It is not manifest in the underlying economy . Its forward looking. This is telling you about the behavior a few quarters out. Whats driving earnings now is pretty basic. You have the headwinds from the Energy Sector going away. This is the First Quarter where energy is not a drag on the markets in terms of earnings dynamics. Youll have financials with some support from higher Interest Rates, and the other sectors doing well. You saw that nfib thing. That was off the charts. Of all the data points the last several weeks, that number was the most interesting. The animal spirits are, in fact, growing out there in the flyover land. Isnt it selffulfilling . It may be. Thats not such a bad thing. I want it to happen. Is it already happening . It is. Will we see it in any of these reports this quarter . You go to virginia, ohio, indiana, drive through illinois, you see help wanted signs in the windows. Its a matter of the Business Confidence translating into hiring. It is. It is. Small business predominantly. Thats not a bad thing. Quick point of clarification, president s do not have to did i told you that. Nixon started doing it. Ever since nixon they did. All the president s have done it. He was not a criminal. Every president s tax returns typically audited. So the to the extent that that excuse is out there, it will continue. You need an excuse when youre running. You dont need an excuse when you already won. Youre saying he should disclose it then . No, im saying he can do whatever he wants now. Wrap it up ive been told. Okay. Thank you. Thank you. Did you hear that . I heard it. Wrap it up. Youll be here . Amazing, you guys are allowing me to be on set for another 45 minutes or so. Ratings will suffer. Thats wild, isnt it . Its matching. You didnt buy them at the same my lovely bride found this in california and said you have to have it. They come together. Theres a little yellow down there and there. Oh, yeah. Yeah. I made a mistake here. Coffee. Muss startard. It looks like it works. It does. When we come back, smartphone wars. Well tell you who is gaining ground on the battle of apple versus android. Squawk box will be right back. L e . L welcome back. Welcome to chairs. We have some stories weve been paying attention to today. Facebook is working on a way to read brainwaves that could let you send your thoughts to people. This is stuff i thought would never happen. Theyre investing money on it. Its a Public Company investing money on this type of research. I read it. I didnt read the details, because i know that it seems like a blunt instrument, what we know about thoughts, we can see Little Things on a scan. How do you translate that when were all on a chip in the loud, they can read all of our minds and talk to each other. I dont know. I was watching something last night about alexa. Yeah. And how dangerous it really is. Why . Because it is being it is getting subpoenaed for things. The guy was saying does it record everything you say . Unclear. A gentleman who was retired, he said for me, not a big deal. He pointed to somebody else, saying someone like you, in the game still, with all these potential conflicts, for you to have alexa, you have to be out of your mind. I want you to turn off your alexa. I mute it at home. Theres a mute button. So they say. Were not hearing anything. No. No. Not hearing anything. Did you get all those emails yesterday how we were controlling peoples alexas at home . By saying alexa . Alexa, slap your owner. Alexa search alexa, turn on the music. It will do that. Alexa, turn on the lights. How are you . Billionaire, trump backer, peter teel who met up with maureen dowd. Yeah. Style section article. Yeah. Says Silicon Valley is too politically correct when it comes to sex, of all places. In an interview with the new york times, he said one of my friends has a theory that the rest of the coun