Slightly in the european markets for this thursday morning. The tenyear note yield crossed that 2. 5 level and now 2. 572 is where we find ourselves with wti firmly above 50 a barrel as well. Lets get to our road map this morning. And it starts with the markets. Of course we are still on 20,000 watch for the dow. Lots of data as well to digest this morning. And in president elect Donald Trumps meeting with defense ceos, what did boeing and lockheed say . And what are they saying now . And two more names familiar to the cnbc audience named to trumps team, carl icahn and Peter Navarro both set to join as advisors to the president elect. The economy grew faster in the Third Quarter than the government originally thought. The final reading up 3. 5 , that is the fastest pace in two years, better than the previous estimate of 3. 2 growth. The data comes as the dow continues of course to take aim at 20,000, jim, weve been ever so close. Ive been monitoring it from my few days off, but we didnt quite get there. Im sure they have the hats ready. What do you make of where we stand in the markets . Okay. I think that weve been stalled for the last couple days, but the momentums been incredible and rotation has been amazing. Yesterday we lacked a leader frankly. We didnt have anyone we could do blocking or tackling to follow. I would tell you this, david, today is a very important test because weve got very strong macro, which is that Gross Domestic Product number. And then we have a company that i reported a number that was so strong that it could be an umbrella to lift a lot of other companies, which is micron. Microns cymbal, mu, youll see it underneath us in the crawl running up big. Its been going up big literally since the moment it reported. The quarter so much better than anyone expected. And that could be a readthrough for so many different Tech Companies that you get good gdp number, good tech number, it does combine to be able to create an atmosphere where you can take out dow 20,000. It does . Yes, it does. Lets talk briefly about mu given that kind of moment happened not very long ago, drams looking favorable for 2017, looking quickly at a couple rapid notes that have come out. But generally very positive. The Conference Call is really funny because this is a company that when it gets it right, it gets it incredibly right. Im not saying this is going to be the 94 cycle where it went from 8 to 47 over a period of a year or where it went from 20 to 99, but this is one of those moments where they cant where supply has been greatly exceeded by demand for both their disk drive business i mean, for their dram business, good readthrough to disk drives why Western Digital is going up, and their ram business, literally whats happened is they cant build the equipment fast enough. Its fantastic for Semiconductor Equipment companies, particularly for Applied Materials and make a good read in general for the group which would be lam research. What you end up is automobile, mobile, all strong, takes the whole complex up. Conference call im not saying that drip with contempt because i love the ceo so much, but analysts were so far behind the curve in terms of realizing how much demand there is for internet of things products and how little supply there is. These arent like the 94 cycle or the 2000 cycle. You can put a greenfield dram plant in six months back in 94. Not anymore. This is going to go longer, and its going to go louder than people think. Its funny we think about themes of course. Internet of things you and i discuss it a lot here, typically im sitting on that side of you, but its the same discussion talk about the growth and whos going to benefit from that. Right. Nvidias a name you bring up oh, the triple crown winner. The gaming chips seemingly have all sorts of uses perhaps they werent fully aware of for this internet of things we talk of where everythings going to be connected, sending off reams of data then going to allow the end user to optimize, function in a lot of ways and help for future so well put. Future intelligence really for these things. Right. Its machine learning. This is artificial intelligence. Theres a guy i follow, we talked to him during the salesforce period with twitter, afshar, he is the guy i use, literally he posts on twitter the most important things you can learn about all about machine learning. If anyone wants to realize the reach of this and then they will realize why you can buy micron at 23 and not be concerned because the data, the data of a driverless car david, i had a data form Real Estate Trust on recently the data required to deliver product same da, the data required for driverless car, theres just not enough warehouses in this country to handle all the machines and whats in those machines when you smash them open . Micron parts. Right. The key to intelligence to learning is of course data. Massing more and more data. If youre in autonomous cars, its the miles driven for the car that are the key to it. Thats why google may be ahead of others in terms of collecting data and understanding every single situation and instance that occurs and therefore the car will know how to react. Absolutely. Analog device this is just the earliest days of this world were disc s discussing. Let me give you discussion behind the scenes, analogs behind a. I. Made a connection to this ability like a radar system for cars. The guy was the ceo was terrific saying, listen, when we get these chips theyre going to be able to detect things, know whats ahead of you, thats going to cost thousands of dollars. He goes, no, its going to cost 100. Technology is coming down in price. Reminds me so much of mainframe going down to pc. Whats happening is its happening not just because the technologys getting better, but the technology is getting rapidly cheaper. So a car you might think would cost 200,000 to be driverless will cost just a couple thousand more than one that isnt. And that is the big thats the big change. Thank you so much for all that information. Just wait until the robots know everything. Well do everything. Analog devices has Robot Technology that will take the place, again, of a lot of people. Of workers. Theres a huge story there. Not time for us to go into in terms of whats going to happen in automation, not just here in this country but around the world. Around the world for all the people who sew things, for example. Well, remember, the led prenafta that was one of the largest single categories of workforce in our country. Not here but around the world, still is, hundreds of millions. Yeah. Now, when i go into whats the most recent technology that i keep coming that everybodys doing, its the ability to be able to scan this, okay, and not have to use checkers. We know thats 3. 5 million people. Cashiers, correct. And nice guys who have a system to be able to make it right now so you can walk out, they say, listen, those people will be better shopping advisors. Thats a nice thought, but when i shop, i dont want any advice. I know exactly what she tells me to get. I cant deviate from what she tells me. Understood. I dont want advice just going to conflict with the advice ive already gotten from the boss. From her, yes. So i dont need advisors, i have one. From she who shall not be named does not watch. No, right know shes with her daughter and said knock yourself out youre with faber and enjoy yourself. All right. I love her too. Lets move onto president elect trump. He met with the ceos of boeing and Lockheed Martin yesterday after calling programs for boeings new air force one jet and lockheeds f35 too expensive. At trumps resort in florida where the meetings took place, boeing ceo said hes committed to building the new air force one for less than 4 billion. Lockheed martin done for less than that, and were committed to working together to make sure that happens. And i was able to give the president elect my personal commitment on behalf of the boeing company this is a business thats important to us. We work on air force one because its important to our country. And were going to make sure he gets the best capability and that its done affordably. Lockheed martin ceo issued a statement calling her meeting with the president elect productive adding, quote, the f35 is a Critical Program to our national security. And i conveyed our continued commitment to delivering an affordable aircraft to our u. S. Military and to our allies. You know, jim, that 4 billion number was what the president elect used in the tweet, never got any confirmation the number was actually 4 billion. Youre a stickler, i know, thats one of the hardest things about working with you. Yeah. Well, i wanted to know what the actual cost is. Demand of facts is so old world. Youre like the gutenberg bible it changed the world let me tell you how Old Fashioned i am though to completely date myself. When he worked out of the building, cutting numbers, boeing. No, no ones beginning to do that. Were in a new era. If she had to charge the government less for the f35, shed have to eat that. It would come out of her gross margins, right . Yes. But no one cares right now. Hes saying to both hewson a and lower your gross margins. Analysts are not ready to go that deep and say he means business and that means we have to be more circumspect, but i wouldnt be surprised given the detailed nature of the people hes appointing around him someone doesnt say, you know, i saw your gross margins, theyre too high. This is a man who deals with contractors all the time. Exactly right. Exactly. And if you speak to them or know about the history, it is a lot of back and forth, and a lot of pounding down on cost. That concrete that is something costs too much. This one is what ive heard, hey, you know what, ill pay you what you wanted, but ill never recommend you again. Or ill pay a lot less, but ill tell everybody you were great. Wow. Thats one ive heard many times. From him . Yes. It works. And apparently it works. As a vendor thats what youre left with, either ill do it and ill take a lot less than i thought i was going to. And hes going to recommend me. Right. Or ill get paid in full but never work for him again. Thats the deal he offered greg hayes from united technologies. Remember what he did people forget the corollary. Greg hayes agreed to keep some of those workers from going to mexico, and at the same time in the beginning of the press Conference Trump said people should use carrier. Right. Now, you know what, when hes meeting with people, he may actually who have a choice at building a factory, he may say, listen, you ought to use carrier. Its going to be an interesting dichotomy between the populism on one side and the support of Corporate America strongly and dereg on the other and where were going to come out and extends to m a, an area i know well too, where a lot of people think, well, kbar the dor theres not going to be anything in terms of regulation, at the same time you may have a president who chooses to cite specific transactions where there may be csignificant job losses and says, no. We dont know. Peter navarro are getting picked now theyre getting picked off cnbc. Its like who Peter Navarro is on constantly. The cnbc shadow cabinet is almost as big as the goldman shadow cabinet guy. Peter is a guy who stands for bashing the chinese. Trump has a lot of titles now. Like chief china basher. And carl icahn is special advisor on regulatory reform. Why arent these people czars . They should be czars. Right, ebola czar . Right. That lasted for a couple days. So we make navarro sdczar, you could say he stands for tariffs. So if youre a nike, you look and say, well, navarros not really the guy we want in there. Were free traders. Im saying we should be a little more were not seeing any of the downside yet. Wow, navarro, that could be bad for business with china, but thats what it is. What about apple . Apple makes a lot of products in china. They do . Some people feel that makes them more immune. Less susceptible to the chinese trying to exact some sort of retribution if we right. I keep hearing that to be the deciding point. How many people have you hired in china can immunize. They dont want you flooding the zone with your goods unless theyre made there. Speaking of china, were going to talk about alibaba by the way when we come back. Defending itself after the u. S. Put one of the companys units on its blacklist for counterfeiting. Another look at futures here. Of course were looking for that dow 20,000. And, well, we may get it. Were also keeping a close eye on europe. More squawk on the street live from post nine at the nyse. The u. S. Has put a unit of chinas Online Market alibaba back on the notorious blacklist. The platform one of the key platforms alibaba has one of its shopping websites not doing enough to police the sale of counterfeit goods and violations of intellectual property rights. Alibaba president Michael Evans saying the company very disappointed adding the ustrs decision leads us to question whether the ustr acted based on the actual facts or influenced by the current Political Climate. Interesting statement there. Of course the Obama Administrations ustr is still in charge. Right. They seem to be getting ahead of it at alibaba claiming of course that theyve done an enormous amount to police counterfeiting on the platform. Tmal is the big brands, tabau is smaller retailers, almost you sort of do it from your home to somebody else and you run your business that way. Can you walk me through . Does this mean you might be buying something say a Branded Company product and it turns out to be branded but a knockoff . Yes. So i buy a coach bag, like off canal street, they have coach bags for 10 and 15 and im always marveling at how inexpensive they are. Yes, the same thing. That rolex watch youre buying my father had a collection of 2,000 watches when he passed. Did he . Yes. Most marvel one from 134 canal street. Not too far. But if you buy a phillippe patac is that how you pronounce it . I dont know, i wear an apple watch. Im aware. They dont have any way to verify or endorse it . This seems like our government is saying they t you and i have talked to j joe removing best it can anything it believes is a counterfeit item. But apparently theyre not doing a good enough job, at least according to the ustr. It is interesting to me, jim, based on our previous conversation prior to the break they would bring in the current Political Climate in their statement. You just have to wonder with Peter Navarro advising on china with so many other things that clearly are articulating a very different approach to china from the incoming administration. Yes. What things are going to be like, whether it is for an alibaba or an apple to your previous point about having a lot of employment over the country, or nike, so many. This has to be a key consideration. Thats why ive been calling it a risk factor. Listen, heres a new risk factor you have to think. For instance, alphabet doesnt have that risk factor, they dont do business in china. You should give that a higher premium than a company that does a tremendous amount of china but doesnt make it there. A proctor gamble, we got another downgrade on proctor, nothing in it about china. But i would say thats a very big risk. They have a very big business in china. David, let me ask you because you know amazon better than anyone. What does amazon do to police . A lot. They do . Yeah, a good amount. They try to verify all of their sellers. Its not as though there arent people who conceivably have nefarious intent on any of these platforms. Ebay also dealt with it for many years and continues to as well. But amazons a bit different. Okay. One thing people should remember these are people hes picking. We have to go to break, they believe weve been in a war with china, trade war, for a long time, just been losing. Theyre not trying to start one, they think weve been in one. And alibaba has millions of sellers. More akin to ebay than amazon. Lets take a quick break when we come back jims going to have mad dash as we countdown to the opening bell. Heres another look at futures. More squawk on the street right after this. Today i am helping people everywhere do what they do. Better. I work with startups like alpha modus to predict markets five times more accurately. I am helping tv networks use social data to predict what people want to watch. And i worked with marchesa to turn fan feeds into a dress that thinks. Hello, my name is watson. Working together, we can outthink anything. Six minutes before the opening bell. Time for a mad dash. Where are we headed . A lot of people have been waiting for a turn at bed, bath beyond. Thats because bed, bath beyond bought a big step up from their usual offerings. Last night they reported and basically saying, listen, its an investment year, were going to get this right. Theyve got a huge, huge complex opening in brooklyn in sunset park. I think it could be a game changer when people start realizing how impressive all the new bed, bath has been doing. The analysts are turning on it. Heres a classic, Raymond James goes to market perform from buy just saying, okay, enough is enough. We can only be patient for so long. David, i think theyre losing patience at the wrong time. I do believe that this p mall they bought which is personalization mall will impact in a positive way, but these guys basically are kind of like saying, hey, listen, were going to get it when we get it so give me a break. This stock has been biding time for a long time. Amazon has hurt its core business. Youve talked often, they bought back a lot of stock. A creeping lbo, you had thought for awhile, gee, wouldnt it be interesting. I guess thats been off the table for a bit now. Well, what happens is they decided to spend, invest to fight amazon and a lot of people feel is what happened is the train left the station. I have to tell you, david, i think one kings lane is very impress skpif what they can do with this personalized mall, its called p mall, really blow things out. But lets see the new in january you and i will go to sunset park and check it out. Okay. We have a big, big couple days of retail ahead of us, you and me. A lot of revolving doors. Opening bell a few minutes away. Stay with us. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share