Second best month of the year. Europe with some mild gains. Oils almost back to 47 on renewed optimism that the opec Production Cut will survive. Our road map begins with the next treasury secretary and Donald Trumps busy weekend, what the picks will mean for the markets. Plus, a mu bearish note on apple predicting a decades long malaise, quote, the risks to the company have never been greater. And facebook announcing a buyback, zuckerberg promising changes to combat that fake news problem. But first up, stocks looking to make more history after a week which saw the dow and nasdaq hit record highs. The s ps within 0. 6 of its own high. Jim, that russell, that small cap story continues to be intact. People just say where would deregulation really impact . It would be the smaller guys. Its so interesting that the analysts take their turn at downgrading and not believing. Last week we had multiple downgrades in the banks. Those stocks held up better than anyone thought. They continue to be in bull market mode. Tonight now goldman saying, listen, may be time to shift out of some of these industrials. They go buy to hold 3m, illinois tool works, up 15 points on just an okay quarter. I think this will be as futile as the bank downgrades. There is money coming into this market, and people want to take part. And we are now at a seasonal moment where youre going to start thinking, wait a second, if i lose these stocks now, am i going to close the year without a lot of equity on my sheets . So people are chasing. Chasing. This happens a lot in the last six weeks, lets call it, of the year. It does. Particularly in a year where youve got the equity market up. Not dramatically but up nonetheless. But youre fighting this kind of money in experience. Its not like theres no deals. I mean, theres deals for companies that i dont even think are that good. Its not like there are no buybacks right now. Buybacks continue. Im curious to know, i mean, i followed this apple once in a lifetime time to sell, well, okay. I mean, do you want it to go to six times earnings and then really reconfigure . There are so many things that are going right emotionally right now that i watch the banks. The downgrades were so fast and furious. And they didnt do anything. Right. Since 87 by the way the dow has posted gains from black friday close to year end. Out of 28 times, 22 times. There you go. And black friday, i dont know, i went through every single retailer this weekend, every single one. My wife is saying dont you want to watch the eagles game, i got to keep one step in, one step out. There were many retailers that reported quite good numbers. And i saw someone again, foot locker buy to hold, piper says perfection. The foot locker quarter was fantastic. That was fridays business . It was. Strong quarter. Walmarts however was not particularly strong. No, it wasnt. Well see Dollar Stores this week. I guess im portraying a world where its harder for me to get negative than i would like to after this run. Though when i hear you say Dollar Stores that reminds me of the actual dollar which has been strong. And i wonder if some of these are going to act as a ceiling, stronger dollar, higher rates maybe pressuring multiples a bit. And just the uncertainty, of course, continuing with the Incoming Administration particularly as it relates to trade. But other economic areas as well. Were going to talk about treasury in a second. You watch tyson foods today, new ceo, youll see a forecast not that good. Proctor gamble was a stock that looked quite bad to me this weekend. Colgate, these are stocks being sold for the dollar and i find those places not to be. We always felt when rates went up people would begin to sell the kimberlys and colgates and thats exactly whats happening. Some saying, look, we were in a low dispersion environment, everything trading as one trade, now were getting some outperformance, i will ring the register. Is there a problem for that for those you think might miss this year end rally . I think if you ring the register, you better be ready to go buy a cyclical. I come in today and i look copper broke down finally after this run. And the copper stock that i follow is freeport. They got gold. They have copper, they have oil. And freeport keeps going higher. Right. Now, that should not happen. Should citi today announce a buyback no, no, i was disputing with someone on twitter, some very smart people talking about citi and how the book value of 64 makes no sense. But here you get an additional 1. 75 billion being added to the citi buyback. Why . Because everything below 64 is additive. So i find banks will continue if banks continue to run, get out of the way. Get out of the way. Thats a fabulous leadership. I tell you, i go back during the course of this year as we come to its conclusion and think about freeport when it was around 4. And it made it. We watched that debt level so closely because of course given the pressure that was on copper, the pressure that was on so much of their business, oil. Remember glencore. If you actually sucked it up and bought this thing, not when icahn did by the way. No, you have to buy it because copper is coming back. In the 5s and 6s, i mean wow. I remember the soul searching moment when it was like, wow, theyre going to make it. And the equity allowed them to. Worried about going into the Hillary Clinton presidency worried about Deutsche Bank . Donald trumps chief lender. Those fears have evaporated a little. You dont hear a lot about Deutsche Bank being in trouble. Not so much anymore. By the way rbc has a list of trumped up stocks which includes freeport along with mckesson, anthem, xpress scripts theres another 492, left out some. Good one, jim. Meantime, the watch is onto see who else the president elect will appoint to his cabinet. Published reports say those being considered for treasury include former Goldman Sachs banker Steve Mnuchin who served as finance chair for the campaign, Jeb Hensarling and though there are other names floating in other reports too. There are. There continue to be these reports that president elect trump would like to approach jamie dimon although that seems still to me to be a bridge too far. John grays name has come up. Wasnt that something . John who i know well, who is a democrat. But boy, i mean, thats just would that be something . Great temperament. Great demeanor. And also a very decent person. Jamie also, but im talking about john gray. I think mnuchin is still said to be the mnuchin and hensarling, numbers one and two, two and one, however you want to say it. But these are sophisticated people who know wall street have everybody on speed dial. Oh, if it was a jamie dimon or a jon gray, youre going to get a very positive reception, i think. You told me both by the way ghdemocrats. Jamie likes to make the point hes barely a democrat, barely hanging on. Theyre both democrats. And excellent businessmen i might add. I point out when i saw Jonathan Grays name floated, i said, well, that would be who i would pick. I have no do you think he would even be interested . I have no communication from blackstone or mr. Gray. You do wonder, i mean, listen, blackstone buys a lot of real estate businesses. If youre looking to divest something not saying thats going to be the case with trump, you know. Theres some messy things about being president about donald trump being president. I think bring jon gray in to talk about that. Treasury secretary fair this weekend, right . We get a new treasury secretary gray, he would not be a guy would do a musical comedy about. Whats that 25 s p points . If gray got in . Yeah. I saw that. I said wait a second. No, you cant pick a guy who i revere. This guys brilliant. Hes very interesting. You know, i dont know. Just be a real divergent from what weve seen so far from the picks hes made. Not to mention mr. Grays considered to be the frontrunner to one day replace mr. Schwartzman as the ceo of blackstone. That day may not be coming any time soon. Really . Could he really pick gray . There isnt anybody who is not nominally a democrat or someone you thought was a democrat. These are not hardliners. These are people who, again, i mean, unlike this current administration, secretary lew is not part of the milieu. These guys are the milieu. No, but what it if goes Jeb Hensarling after all said and done . Thats a different kind of a pick. Yeah, thats different. I dont want to deviate too far but general mathis talking about for defense, general mathis may be the foremost Law Enforcement leader in the country. I mean, go read the battle for fallujah by bing west. Generals general. Bing west is one of the great writers of our time doing a book with general mathis right now about the armed forces. General mathis was someone willing to put his foot down say listen we are done just sacrificing soldiers. So youre dealing with these people, like many of my idols being considered. And by the way, i dont consider any of these guys as republican or democrat. Theyre not. The three weve mentioned. Hensarling. Hensarling is, head of Financial Services committee, knows his stuff. I think jon gray is a reason to buy. I think those are thats unlikely, right . You dont want to push thats unlikely. I worked for mnuchins father who is the far most trader of our era and his son is a very, very smart guy. Yeah. Dan dimicco. Yeah, longtime supporter. These are all loyals. Whats different about gray and others and dimon, theyre not loyalists at all. Dan i thought was a democrat. Romney being discussed now too as secretary of state. So not a loyalist at all. I think people have to recognize when you read these guys names you start thinking if its certain guys you really want to get comfortable with this administration because they are goto guys that you speak to on wall street. Meaning that theyre not ied logs, theyre very smart. Jonathan gray is a guy, turn up the volume when Jonathan Gray is on, need to hear him speak. One of the finest minds about the housing crisis. Hes been a very rational actor when it comes to real estate and made a great deal of good moves for blackstone helping it to of course become the largest single component of their Asset Management business, real estate. These are people need to know thats how we feel about these guys because i think names pop up. Sure. Im like theyre floated for a reason. Certainly the president elect is comfortable with real estate. He likes that. Knows that business. Yeah. When we come back, of course a lot more to get to this morning including news involving apple and facebook. Also ahead, well talk to vanguards jack bogle, the index fund pioneer. Well get his take on investing as we head toward a trump presidency. Take another look at the premarket. Of course on this thanksgiving week more squawk on the street from post nine in a moment. What powers the Digital World . Communication. Like centurylinks Broadband Network that gives 35,000 fans a cutting edge game experience. Or the network that keeps a leading hotel chains guests connected at work, and at play. Or the it platform that powers millions of ecards every day for one of the largest greeting card companies. Businesses count on communication, and communication counts on centurylink. How else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Now lease the 2017 gla250 for 329 a month at your local mercedesbenz dealer. Apple announcing it will replace faulty batteries for iphone 6s smartphones that have experienced shutdown problems with the iphone set to turn ten years old in 2017, oppenheimers out with a note saying, quote, we believe apple lacks the courage to lead the next generation of innovation, instead will become more reliant on the iphone over the next decade. We believe the stock will underperform the market. Bernstein looks at gross margin on the phone, 57 in 09 to 41 today, headed to 39 they say next year. Well, i mean, the company has an r d budget. Its constantly innovating. The new phone is a great success. People wrote that phone off. Now, did i wish they had bought harmin for the mobile phone, yes. I think you the idea of wait the people who come up with ideas and the ideas could be important, i dont think its a static target. I think its a moving target. Some of the key thesis in this report seems to be the idea that fewer hardware breakthroughs are available today that can trigger a favorable shift meaning higher prices. Who thought about Machine Learning . Who thought about vr . Was anyone really about Artificial Intelligence . Look at nvidia. Nvidia was a gaming chip company when it was in the 30s. And they came up with chips that work for Artificial IntelligenceMachine Learning. The stocks been an unbelievable stock gone up to 90 and change. You could say the same thing about them that they were just an also ran semiconductor, but they were working on things. We dont really know what apples working on, but the idea why do we have to presume what we see now is what apple is can they do it organically, jim, i think is the key question . Or do they have to step outside their sort of cultural comfortability and do a big deal of some kind that brings them this is always a key question for a lot of companies that hit this malaise, so to speak, if in fact theyre right. Jimmy carter company, yeah, no, youre absolutely right that they need to use some of that, i believe. But ive put a million acquisitions in front of them. But they havent done it. Well, im not apple, im not their banker. I know, youre neither one. Id like to be. Youre under active consideration. Im trying to get the treasury job, trying to get that and keep this job. Plus, i want to be down there helping the eagles. I think you can do it all because you dont sleep. Why not . Went to bed at 12 30, got up at 3 30, felt great. God, i wish i could do that. Really . If you were in charge, they would not be last in the division. I tell you that. Well, no. If we would have run some, we would have maybe gotten more help there. I mean, were in the toughest how did the nfc east become like the nfc beast again . Its painful. Cousins is great, gave me 44 last night in fantasy. By the way you mentioned repatriation, s p has a note out today that repatriation could result in a 30 surge in buybacks in 17. Wow. Only 5 if theres no tax reform. Think about what that means for the people whove written off apple. I think thats a huge amount of money to buy back stock. Where do people think apple goes, under its cash position . Like its bethlehem steel in 1987, stretch the Balance Sheet and do something stupid . The prospect of meaningful buybacks as a result of huge repatriation is something the market is already trying to start and account for. Apple be significant and so many other potential companies as well, we like to think theyre going to do more than just buy back stock with that money. The idea is invest it more in capital investment, hiring, things like that. If you bring those plants in mexico and bring them to the United States and put up the pipelines, you know, theres the dakota pipeline protest, i mean, under the trump regime, you would see lots of pipelines getting utica natural gas down to where it can be exported. Thats a giant number of jobs. Giant. When we come back, well get cramers mad dash, countdown to the opening bell, look at the premarket looking okay on this monday morning. More squawk on the street back in minute. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. All right. We got a few minutes before the opening bell. Time to get to a mad dash on this monday. In a kind of shortened week of course with thanksgiving holiday. Were going to talk a little protein in our diet right now. One of the better deals that occurred over the last few years was when tyson brought hillshire brands. When it happened we thought they paid too much but they managed to go from a commodity maker to a proprietary maker. Took more shelves and space. This morning the architect of that, tom hayes, donny smith is retiring. Hes been the ceo of tyson. Tom hayes is going to succeed him, but the forecast was very sub par. And it made you think once again, can you be in these stocks in a world where people are piling into freeport . So this was disappointing. And the we have campbells soup this week, i question how good theyre going to be. Jim, can you give us any sense as to what they said specifically . No, were going to have to know more because the actual 2016 call their numbers i thought were okay. Okay. But the forecast weak. Now, is it totally unexpected that donny smith leaves . Well, he was the architect of this great transformation. There had been people who had been saying it was only a matter of time, they paid too much for hillshire. That i dont know is the answer, but this is shattering people. And i say once again will cause pressure on whats been a big source of funds since the trump rally began. Being sort of food yeah, this market. Those stocks, i think General Mills is and deflation of course is a big part overall. Yes, it is. Thats another part of why kroger cant get out of its way though i think krogers a good stock here. Will proctor do this . Proctors got some dividend protection. I mention being the quintessential american company, they reported good quarter but 3 yield. Does that protect you in a world where the 30year well, Interest Rates have stopped for the 30year, didnt go up that much, but im saying more evidence this is not where people want to be. Okay. Well keep an eye on tyson. Also going to keep an eye on tesla as we head to the opening bell because it now includes solarcity. That deal having closed. Weve got that opening bell just a few minutes away right here on squawk on the street. Mapping the oceans. Where we explore. Protectin