2015, and squawk box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box. >> good morning. welcome to squawk box here on cnbc. michelle is sitting in for becky today. topping the market agenda this morning, new numbers on the nation's labor market and a speech coming up from janet yellen. let's start with the economic data though. the november adp employment report coming up at 8:15 eastern time. the economy likely added 192,000 private sector jobs last month. also worth watching, productive and labor costs at 8:30 eastern time and then the november beige book coming up this afternoon. janet yellen is scheduled to speak at the economics club of washington around noontime. investors will listen to any hints on the fed's rate hike. the expectation of course is

that she is going to make the argument to continue to move this year but we'll see if that is still the case. late last night the fed governor called for a -- >> brainerd. >> sorry. >> no one will notice. calls for a cautious and gradual approach to hikes. she argue there had may be limits to the fed's ability to tighten policy while other central banks keep it loose. in the meantime check on markets this morning. u.s. equity futures at this hour. >> they're extending the nice moves we saw yesterday. the ten year is down below it again. that worries me. the flattening of the yield curve. >> there's messages from the bond market and the stock market. >> it's like a manufacturing recession that we're in right now, isn't it? at 106 -- look at it.

2.16. but then i look at all the sovereign debt in europe is below that so i don't know where it should be right now even though -- >> but do you see the bond market sending one mess angels and the stock markbond market s another message. >> over six months we're flat but the last three months we have gone. >> came back. >> came back. >> had trouble getting -- i thought we were on our way to 20,000 at one point this year by now but we're back under 18,000. that's something we need to cross at this point. did we look at all the markets? yeah. after another pretty big move yesterday china was strong, really strong overnight again. flatness -- >> see. >> i did. i did. so -- so prepared. >> good for you. >> so have no life. no i had the drive in. i got my -- i'm looking at electronics all the time. i think my kids now, their mind

is mush. >> screen time. >> they don't hear anything i say to them. sometimes they have head phones on -- >> parents used to complain about kids watching too much tv. it's no different. >> they is a tv everywhere now. all the time with three or four different things coming in at one time between messages and video and songs. >> it's multitasking. think about it. >> no. >> it's a much more active experience. >> their attention is absolutely gone. >> yahoo!'s board is set to meet and consider a sale of the core internet business and whether the company should spin off $30 billion in sales of alibaba. ceo marissa meyer has come under fire for struggling performance but this morning the board is backing meyer and report of her demise are greatly exaggerated. >>s crazy. running on the front page of the

wall street journal as if there's a major headline here and it's very possible that something happens but regularly scheduled board. >> so you agree when she writes the toalty of the air on fire board meeting is incorrect. >> correct. do they have to think about this? absolutely. starboard pushing for this, absolutely. >> what about the report that they have to consider about what all of their alternatives should be? >> that was my take on this. they have gone to mckenzie for advice. that will help. yeah, perfect. >> it's a sign of something. it's definitely a sign of something. >> something may happen. >> what do you know about it? over the years i've seen these people come and i've seen them go to delta and other places. that's the exception to the rule. a consultant is a guy that comes in from out of town that doesn't have a job and he sits around and talks to you for awhile and then goes back and writes like buzz words like thought leader

and they have like 100 words that they all practice and then they come out and talk to people and everybody goes wow they're looking around corners. they know about multispeed economies. >> when i was in college all of these women wanted to be consultants. what are you going to consult about? you don't know anything. >> if you don't become an academic i think you become a consultant. you never have to answer -- you never have to be right. >> yeah. >> skilling. >> now he had some good ideas. some ideas. he had some ways to manage that business, right? other than just strategy. >> we're probably being a by the unfair. some people are talented. including michael wolf. >> the writer? >> no, the former cfo of viacom. am i wrong on that? >> i don't know. >> we had him on the show a

couple of times. >> new numbers on holiday retail. shopping on mobile devices frunched on cyber monday making up a quarter of the $3 billion in total sales. the average discount on items sold on monday was more than 20%. jp morgan tops a new ranking of investment banking revenue. $18.2 billion so far this year up more than 6% compared to last year. goldman sachs coming in at number two. >> stocks to watch, shutterfly announcing it's ceo is going to step down in february. the digital photo retailer is now looking for a replacement and the ceo can be on mad money tonight with jim cramer.

that's a nice picture of jeff. and finally nike removed from the conviction buy list at goldman sacks. the firm says there's less near term upside to its price targets after the recent outperformance in the stock. a dow component. tell myself that again. it's a dow component. >> did you remember that? >> convicted of insider trading as well. >> former member goldman sachs. >> i can't believe they had access to any? who would trust them with that information. >> of course the big announcement from mark zuckerberg making headlines. he and his wife welcoming their daughter max to the world. >> my wife said -- our boy's name is max. but max for a girl --

>> that's very cute. >> along with the birth of his child perhaps making bigger news he's giving 99% of his facebook shares to charity during his lifetime. julia is going to join us with more on this story later this hour. >> and he's going to be giving a billion dollars away every year it sounded like over the next three years i was trying to figure out 1% of 45 billion. it's 450 million. >> that he'll remain. >> young guys. i'm glad he's giving it to charity, right? private sector use of -- i mean maybe only 15 cents slips through the cracks, instead of 90 cents. >> to the government. >> said without comments, yes. >> neither one of us. we're both muzzled. what are we doing? >> zip it.com. let's check on the markets this

morning. the futures suggest a positive open ahead of the adp data. dow by 23 points, s&p by 3 and nasdaq more than 9.5. show you what's going on in europe this morning. higher across the board but not by much. a third of a percent. they're all positive. asia overnight, the big move in china, that happened. shanghai by higher than 2%. hong kong higher by .5%. nikkei lower by .3%. price of oil at 4131 where brent is at 43.80. declined more than 1% this morning. let's show you the yield we were talking about earlier. 2.159 so the long end of the curve seeming to fall even as the short end rises. what is that telling us? is it sniffing out something negative about the economy? as for the dollar this morning, higher across the board, 105.88

euro for every dollar, 123 yen and pound will cost you $1.50. >> saw something yesterday from the atlanta fed, did you see their new gdp? >> no. >> so they revised it down twice and consensus is 25 and they're 50% below that now for looking at some of the other recent numbers so they're down like at 15 or something. >> you look at brazil. we drive brazil, brazil doesn't drive us. their economy is going to contract 4.5%. that's brutal. you start to see that filter through the rest of the world and i just wonder how much we can -- we're going to keep raising rates while the rest of the world is weakening. >> we'll see. >> i don't know. >> joining us now to talk about everything that's going on these days, peter hooper, chief economist at deutsche bank and the federal reserve in washington d.c. and chief investment officer and portfolio solutions for the private

banking and investment group at merrill lynch wealth management. how do you play this? what's janet yellen going to say today? what's the view? >> let's talk about the jobs report first. the adp number this morning. 180, 190 consensus. i think for later in the week it will be something closer to 150. i think we have a negative pay back for the surprise in october but the labor market is very much front and center to what's driving the fed toward lifting off in a couple of weeks. i think that janet's message today will be the economy's doing okay but the labor market is moving. you can expect a rate increase but our bigger focus will be what happened after december. i mean, pushing the line that

this is going to be a very gradual increase and the data suggested that if anything they'll be revising down a bit. their expectation for rate increases next year. >> how do you play this? >> this play is along a couple of lines. you have gone through a long play of free money. >> the response to any kind of central bank actions has been very much buy whatever the riskiest thing has been. that dynamic is changing. it's going to create volatility in the equity market. it's about pairing positions going into the fed meeting in december and just readjusting, focussing on places where there's growth and ultimately expectations changing next year. >> are you worried about high yield when you see corporates and the bond market? is it telling you anything about the stock market at this point? >> step all the way back you get

bubbles and excesses and a lot of the high yield excesses have been et cetera. it's some part of market at 14%. and that means you don't want to overread the average spreads. the energy peace is where there's most of the problems. we're not really bullish on high yield. keep your bets in line. mostly about managing fixed income risk and having lots of different sectors. >> are you expecting there's going to be a sell off after this announcement? i just want to understand because there's a whole group of people waiting for this moment thinking there's going to be an opportunity that may or may not exist. >> looking at the options market. there's expectations for a pretty steep sell off which probably means we don't get it. we may just get a little bit of noise around it. there's not a big change between the relative zero and 25 basis

points to create an incentive to sell everything that you own in equities and go to cash. we think it will be a bumpy ride and the data will create support for why you don't bailout of everything on the back of one single move and the fed. >> what's the real read on china and how that's going to effect any of this or does it matter? >> you have some cautious bulls like myself. i think china is pulling it through in terms of you're seeing land sales pick up. that's going to be supporting more spending. physical spending and investment going forwaurd. >> it threw this whole thing off in september. what happened in september didn't because of china. i would argue. >> shouldn't hike rates. >> so yes, we saw a lot of fear around china with the august plunge. >> mistake? >> that was a mistake, yes. >> china was nowhere near as weak as people were expecting at the time. we had earlier this year a big

drop in land sales which drives everything ultimately in china near term. that's picked back up. i mean, the property markets it's not collapsing we don't have a bubble that bursts and we're going into the abyss. the property market is going up and land sales picking up and investment going forward is going to be positive giving us growth somewhere at least in the 6.5 to 7% range for the next couple of quarters. >> why doesn't the long end of the curve move? >> so you have had -- you've had some strength in the dollar. you've had further weakness in oil prices. you've had this weakness in the manufacturing sector. all of this says that the fed can go slow next year. fed going slower next year keeps lower rates down. short end is rising because they're going to lift off. >> ultimately the risk around a dollar that appreciates strongly

is not great for the rest of the world. we have to be low and slow. >> okay. >> low and slow. >> so you guys didn't get the memo, either? bolo. andrew got the memo. >> thin tie. >> that's really thin. >> that's a tie? >> you don't have a turquoise thing though. >> you may not know this but the bo was made the official neck wear of arizona in 1971. >> so when we doing this segment and talking about these very weighty topics you were on wikapedia to tell jokes about bolos. >> it's not a joke. it's the state's official tie in new mexico and also the official tie of texas. none of those states do i associate with you. neither new mexico or arizona or texas. >> i'm not sure they would want to associate. >> this was blessed i'm told by the wardrobe people at the

wonderful headquaters that is cnbc. you should talk to them. >> for you. >> i could pull it off. >> yeah. yeah. >> you're not feeling it. >> you had the bolo -- are they all like that. >> i have a couple now. yeah. >> if you feel confident wearing it and comfortable then that's all that matters. i'm not going to say anything. >> the fashion police. >> coming up. >> right here, joe kernen. >> coming up they say life changes when you have the child. mark zuckerberg might be giving it a new meaning. how the facebook founder hopes to change the world pledging to give away 99% of his shares following the birth of his daughter. first as we head to break, here's a look back at this date in history. ♪ sure, tv has evolved over the years.

it's gotten squarer. brighter.

bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. welcome back. the philadelphia 76ers finally won a game. the team topping the lakers last night at home after 18 straight losses to start the season. that ties the old record for the worst beginning in nba history set back in 2009 by the nets.

in other sports news tiger woods is hosting his hero challenge golf tournament in the bahamas this week but he won't be playing this year. he's still trying to recover from two back procedures in the last couple of months and speaking to reporters yesterday, woods said that his return is uncertain. >> there in lies the tough question, the tough answer because i have no answer for that and neither does my surgeon nor phisios. there is no timetable. so that's the hardest part. that's the hardest part for me is there's nothing i can look forward to. nothing i can build toward. it's just taking it literally just day by day and week piano week and time by time. >> woods says right now he's so soar that the only exercise he is doing is walking and light stretching. he hasn't hit a golf ball in two months. he can't even play soccer with his children and golf and back

pains do not -- freddie couples for years had that problem. they do not go together well and with tiger, even if he was in top physical form with his long game and everything the mental toughness and the mental game that he had at his peak is something that only comes from doing it again and again and again. and you don't even know how to get to where he was at one point and then at the same time you have guys like spieth and mcilroy. >> the young ones coming up. >> not just coming up. they're dominating. so how does he get back to his previous peak which still might not be good enough to beat the rickie fowlers and jason days. >> russ disappointed? >> yes. >> i would think. the dominant personality in this game. >> slowly that's changing and jordan spieth had a -- >> tiger woods is it. he became part of the popular

consciousness. >> time marches on. so was the king. so nwas nicklaus. >> does he still have huge sponsors? some came back? but not in the same way. >> some of them are long-term. some stuck with him. it's weird, that incident sort of topped everything out. >> he could have been the first billion dollar sports star. >> his came went down after that. you just thought it was temporary and personal problems and once he gets through that but never came back. >> never came back yet. >> he good rounds but never puts four of them together and in major verss it's been tough. a lot of the new players have seen him do things on the course, you think it's not in his bag. some of the chunky shots.

>> mistakes. >> looks like he's losing confidence. >> consumer news this morning, we have a headline confirming what we have long known to be happening. the landline is disappearing from the american household. nearly half of u.s. homes now only use cell phones. now only about 8% have only landlines. 42% have both a landline and cell phone. how much have things changed? 12 years ago a mere 3% of u.s. households use only mobile phones. we have a landline but i can't remember the last time i picked it up. >> if i ever need a warranty, extended warranty on any cars i bought ten years ago, on the landline. they cost me every day. at one point i said have you ever actually made a sale?

have you ever had anyone say yes -- and then i felt bad. >> wow, that's something. >> i was a cold caller for ten years. >> but you were trying to sell stocks. >> sometimes it's easier to sell an extended warranty. depends on -- there's opinion tough times in history to try to sell stocks to people. >> the other buzz story of the morning we talked about earlier, mark zuckerberg with the birth of his first child plans to donate 99% of his facebook stock to charity. julia joins us with more on that story. >> good morning. it was quite a way to celebrate giving tuesday and the birth of their daughter max. a week ago park zuckerberg and his wife announcing they'll give 99% of their shares in facebook over their lives. the couple saying our initial areas of focus will be

personalized learning, curing disease, connecting people and building strong communities. in a filing, zuckerberg revealing the plan and insuring there won't be a big stock sale. he will maintain his majority footing in book stock. he plans to sell nor gift $1 billion in stock each year for the next three years based on a preestablished trading plan. he already has a record of philanthropy. committing to give away more than half his future to charity and he signed on to the break through energy coalition to give toward a clean energy fund. michelle. >> thank you so much julia. so will there be any complaints against zuckerberg for not paying enough in taxes? >> it's hard. >> you're a poll situation, you could say he's denying me all of

that money. >> but i want to say one thing in his favor. do you remember years ago -- >> they used to say he wasn't charitable, right? >> no, remember he had given money away from the schools and it was right before the movie the social network came out and there was a very cynical argument made that he was doing this simply as a way to sort of get rid of bad press coming off the social network. i think he's more generous. >> what do you think julia? is any of this about optics? >> you can't take it with you and this is overtime. they all become philanthropists anyway. >> what do you think? >> i mean, it's very hard to criticize this. this is 99% of his wealth and that's worth $45 billion. it's one thing to do philanthropy and give away $100

million here or there but this is him saying i'm not going to be buying private islands. i want to have my legacy be in changing the world and it seems pretty impressive and sets the new standard for the billionaires of his generation. there's a lot of very wealthy founders, ceos of this younger generation and it will be interesting to see what happens with them and if they decide to follow in his staed. >> so what happens, by the way, this makes it slightly more complicated. this is a bad hypothetical. if something happens to the stock and he becomes like ted turner that made huge commitments, big commitments. >> he to back down on the billion dollar he committed to the u.s. >> right. because ultimately he either didn't have the money or he needed to keep more money for himself. so he's going to have 450 million dollar. >> it's only a billion dollars a year for the next three years. you resume he realizes his stock could go down and he would be

giving away less in dollar value. still going to be 99%. would he commit against future -- you have to watch and see if he commits against a future revenue stream or selling streak. >> julia, one real quick question. how many has he taken out of the company already? >> i'll have to go back and check but everything is on the preplanned selling schedules. so i'll have to look back but usually it's to cover taxes and he's made some significant donations already. $100 million to new york schools as you discussed so i'll have to go back and look but it was not any significant amount. he hasn't made any big purchases. >> thank you for waking up early and being on the west coast and talking to us. >> a bolo. >> oh, nice. >> a beautiful. >> i'll take one of those. >> oh, yeah. >> that is a beautiful bolo. >> look at you becoming a fashion --

>> i'll not. i just didn't know that they were back. you have one on and michelle. and now the new york times. >> well, you had to google zuckerberg and the school donations.

coming up millions of packages arriving this week. why are some landlords saying no to the coming on slot of boxes. that story next. first though as we head to break, check out the major currencies this morning. dollar stronger against the euro, the yen, and the pond. you're watching squawk box on cnbc. first in business worldwide. ♪

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welcome back to squawk box. tis the season for package deliveries. 23 million americans have had packages stolen from their homes before they can open them. that's according to a report from insurance reports.com. we're going to change topics. millions of packages will start arriving at homes across the nation this week but one land lord is saying no to the coming on slot of boxes. more on the crisis in the mail room. d, diana. >> look, they have 59,000 apartment uniting spanning ten states and they say the overflow of ever increasing package

deliveries was costing them upwards of $3 million a year in lost productive so they rolled out a new no packages in the mail room policy building by building and by december it was done. not a popular move with the tenants. >> i think with any kind of change it makes people uneasy so as we rolled out across the country we did have a few animated unhappy residents that did voice their concerns and we try to help them understand why we made the decision and also assist them in finding an alternative pick up place. >> they can still get all the tons of packages like other buildings but they must elect to have them delivered to and even left at their front doors. now they have not heard of any thefts or missing packages from the hall ways and also says 75% of tenants opted to do that.

they did consider other options but decided none of them were scalable given how much online shopping is expected to grow in the next five years. now others have gone high-tech and we'll tell you about that coming up later on cnbc. would you live in an apartment building that did not accept packages? we're running a poll on twitter @cnbc. follow it. log your vote. >> the reason there was lost productive is its the in house mail people that have to distribute within the mail room and now instead it's up to them to deliver, is that the difference here? >> exactly. you had all of the people supposed to be working the door or the front desk or the other services. these buildings have so many more amenities now that they were spending so much time getting packages to people, calling people down and accepting packages that they couldn't afford the lost productive. >> it's a big issue at college

campuses too. do you know about this diana? >> what? >> college campuses have this problem in a big way now. >> yes. absolutely. they're having that problem because of -- right, they're having that problem because of textbooks. students nowadays are ordering textbooks online plus anything else they need for their rooms online and the dorms were not equipped to handle this in the mail room. they were very small mail rooms and one guy there. >> college students are very stressed about so many things these days. i mean, the package system must be just -- you know, overwhelming. >> need to save space. >> yes. you need to save space. >> i didn't tell you about that yesterday -- this is a safe space? i don't feel very safe here sometimes. >> it's not a safe space. >> i'm trying. i tell people to come in.

this is safe space and i'll make it that way or else somebody is going to have to re-sign above me. i'm leading a protest. somebody is going to re-sign. no more. bolo ties. it's already been an unsafe place for you today. >> the moment i walk in. >> you need to apologize for everything andrew. >> even you. you have to admit, college campuses -- >> i'm with you. >> if you were a college president right now wouldn't you just -- i don't know what i'd do. i don't. it's like grow up. this is not a daycare center. go to class. and get some, you know, get a four point, right? >> thanks. >> even diana -- i don't know about this -- i don't know about the washington bureau. is it at a safe place? >> it's a very safe place. >> excellent. >> let me know.

>> just let me know. >> realtor.com with a break down of the hottest housing markets and expectations for next year. jonathan joins us with the details. choo >> good morning. >> you expect that growth isn't going to be gang busters but the highest number of total home sales since 2006. >> that's right. we're coming off the best year we've had since 2007 and because of forecasting additional growth and additional increase in home prices next year, that does make it the best year. >> roughly 3%. >> for both actually. >> new home sales, existing home sales, dollar volume? >> 3% for sales is just existing. we have a much more significant increase expected in home sales. 16%. >> what's driving that? >> well, first of all, it's

actually finally seeing growth in the builders. we had to see growth in single family starts to be able to have the product for people to buy and in particular what you have seen over the last couple of years is that builders have been avoiding that more affordable entry level price point and we're already seeing movement. the new home price is finally coming down and that's a good sign that they're positioning products for more affordable price. >> she reported on the lack of buyers. is that changing or still true? >> it's changing. this year the number one age demographic is 25 to 34. they represented 20% of home sales. >> is that higher than it used to be? >> that's higher than the last couple of years and trending toward normal which is more around 36 or 37% and through

september older millennials represented 35% of the purchase morgan this year. >> the top 10 hottest markets for 2016 providence and war wick rhode island. st. louis missouri, san diego california, sacramento, atlanta, new orleans, memphis. what makes all of those top 8? >> it represents the wonderful diversity of housing and where we are in this recovery so you have markets that have been hot this year and are basically continuing into next year. >> these are cheap places to live? what ends up drawing people? >> there's different trends. so part of it -- they all have an underhighing strong local economy and or significant improvement expected for next year but four of the markets are markets that caused people to say, really, you're expecting providence or st. louis,

virginia beach, new orleans and the answer is well they're about four years behind other markets in the recovery and their economic outlook for next year is even stronger and we're seeing demand increase on realtor.com right now. that's a good indicator that the spring will be strong in that market. >> you watch the he show every day. >> long time fan. >> are you just so relieved we're talking about janet yellen raising rates in december and yet the ten year doesn't move. >> it has a life of its own. >> you must be happy about that. >> well, you know, it's like -- being an economist is a no end proposition. it's worse than your dialogue earlier about consultants but the reality is we've had no change in the zero interest rate policy this year and we have had about 60 basis points variations in the average 30 year rate so the morgan rates and the long bond have moved at their own

pace and the forecast including ours is higher morgan rates next year but it's not necessarily going to be following exactly with what happens with the federal reserve. >> and these predictions that the ten year stays low for long like larry sommers, you're smiling, you're happy. that's good for you. >> one thing that economists got completely wrong is that morgan rates would be at 5% or higher by now and american buyers were given a gift of another year of those low rates. >> it's technology which is the time between each advance is getting shorter and shorter and if technology continues inflation is tough to go up when you're making so many innovations. you're making innovations to get these things out of the ground. maybe we have low inflation for a long time and then you don't have any wage inflation because everybody is a robot. >> you have a great point. the sharing economy, no question is producing increasing

productivity. >> maybe they never do go back up to historical levels. >> but the one part we know is going up is housing costs. that's pushing people that can to aim for higher wages. >> you know who that is, right? >> yeah. >> excellent. >> rising home prices are always good. nothing can go wrong with that. no matter how high they go. we all love that. keeping your baby healthy. >> why spell it out? >> because that's the symbol. >> we'll be joined by a leading provider in software and services for newborn babies. all the important stuff for preemies and others and much more. squawk box will be back after this quick break.

cl the fda approved more than eight five percent, highest approval in fifteen years, and this specializes in devices for newborn care, the stock is up

this year, up to a new high, as you can see, and about the market cap, bringing in the ceo in town for the annual health care conference. not everybody knows your products, but i like some of the brand names that you have. it's not all just premies, but is it neurological? >> that's right. well, joe, we started off as a newborn care company with a single product eleven years ago. when babies are born, we test for hearing, and now it's a standard of care around the world we right away detect hearing loss. you can't say, can you hear what i'm saying. >> they won't say anything. >> by catching it early, kids

really live a normal life. >> how does it work? >> well, really well, but we basically ping noise into baby's ear, electrodes own the brain stem that reacts, and with that, we know the pathway is clear. >> minimally invasive. >> right. and people in the old days they didn't know for a long time. >> that's right. >> what's the cost? >> ten bucks. >> wow. >> for -- >> how many products now? >> well, now, then we took that product, and we then expanded to a vast variety of newborn care products, built that out, and nine years ago, we went into the neurology business through monitoring, and we've gone from zero to number one in the world with sixteen percent of the market. we measure electrical pulses of the brain and peripheral nerve disorders. >> when would you realize that your baby needs to have that

monitor monitored? >> it's for adults now too. >> oh. >> we have the brain monitors for newborn babies when they've been borned with trauma. >> like? >> coming through, deprived of oxygen, coming through the birth canal with loss of oxygen. we treat accordingly, but now we're big in adults, and what we've also done is taken the products and just rather than making devices and selling disposables, we're performing a service that's been a big part of the growth and story that -- it's a little bit changing health care somewhat, especially in our fields where we're coming in and doing the test ourselves in the hospitals or the patient's home. >> providing an annuity stream. rather than providing the product and additional revenue. >> you got it. we save the health care system money because it's cheaper than

doing everything in the hospital and there's opportunities in the years ahead. >> you noticed the fda is with medical devices, there's a lot of complaints about the drug approval process and hoops to jump through. is it easier with medical devices? >> i wouldn't say so, joe. >> are they your friend or enemy? >> i wouldn't say enemy. they are doing their job. you know, their job is to try to make sure that all products out there are designed properly and working properly, but, you know, it's where is that fine line? >> any reimbursement? i wouldn't think medicare works for this, obviously, because you're so young, right? do you need to worry about anybody covering this? >> reimbursements, most of the staff, no. it's basic medicine. we don't lose sleep over reimbursement. >> what about the medical device tax. >> oh, that's a real sticking point for the whole industry. we're hopeful this congress, you

know, being republican controlled in the house and senate -- >> yeah, it's fine now. >> people don't realize about the tax on revenue. >> exactly. >> it's like the way latin america governments treat their oil companies. in the united states, we tax on profits except you guys. >> exactly right. >> it's ridiculous. >> it is ridiculous. even if you lose money, you pay. if you look at the amount of venture capital that's in medical devices, it's way down. >> after you said you saved the system money and things are better, that's how they reward you? they poke you in the eye. somebody's got to pay for that. >> why pick on the medical? >> number one leading industry in the world that's american based, and they are trying to make it tough on us. thank you for being here. >> thank you very much. mark zuckerberg, changing the world one share at a time. it's hard to find time to keep up on my shows.

that's why i switched from u-verse to xfinity. now i can download my dvr recordings and take them anywhere. ready or not, here i come! (whispers) now hide-and-seek time can also be catch-up-on-my-shows time. here i come! can't find you anywhere! don't settle for u-verse. x1 from xfinity will change the way you experience tv.

. rumors exaggerated, and tech analyst weighs in on the future of yahoo! and its ceo. >> friday's job report either makes or breaks a december rate hike. hints today from the adp employment report and speech by janet yellen. top strategists are here with their predictions. >> and ibm is putting its watson computer to work analyzing retail trends, the company's smarter commerce division tells us where people are spending money and the hottest holiday buys so far as the second hour of "squawk box" begins right

now. live from the beating heart of business, new york city, this is "squawk box." welcome back here on cnbc, first in business worldwide, i'm andrew with joe, and michelle caruso-cabrera is in for becky today. big news of the morning, mark zuker brerg made the most of giving tuesday. they put the shares worth a projects, and the announcement was in a form of the letter to the couple's newborn daughter, max zuckerberg. maxima. the charity is set up as a limited liability company focusing on initially personalized learning, curing people, and building strong

communities. he'll give up to one billion in shares in three years, maintaining a controlling stake in facebook for the foreseeable future, and the previous gifts include more than two hundred million in support for education in san francisco and new jersey. there's been controversy about that. >> maxima chan zuckerberg. is chan the middle name? or two last names? >> i don't know. i think it's max zuckerberg. >> whether or not to go forward on a plan to spend shares of alibaba. the ceo is under fire for the struggling performance, but this morning, there's a report out saying the board is backing mayer and that reports they will sell the core business are greatly exaggerated.

we'll talk more in ten minutes with our tech analyst, mark mahaney. we get the adp private payroll report, and polled forecasters say the economy likely added more jobs last month, and we'll get comments from the fed chair today, speaking at the economic club in washington, shortly afternoon, and that speech comes ahead of yellen's appearance on capitol hill tomorrow. check on the markets, zostocks china rose overnight on rumors of a government boost. that's why shanghai up two percent, and japan was lower, though, and showing you u.s. futures at this hour ahead of the data we are waiting for from adp. they were off the highs earlier today. >> the markets are, again, climbing back towards record

territory, and dom is here to map it out for us. >> talking about record highs, again, the s&p is just a percent and a half away from the intraday highs earlier this year, and nasdaq, the largest cap stocks within the nasdaq, powering through gains too. look at the s&p so far this year and just a year to date, again, up two percent, but look overall at what happened for the quarter to date, what drove the moves back towards these record highs, you look at some of the deal stocks involved, sandisk up by forty percent, and auto desk up sev seventy percent. better than the nasdaq composite, and biggest gains have been coming gwagain from

those same stocks we talked about before, you know, the microchip stocks, but remember amazon, a huge megacap company up thirty-three percent, and just this quarter, helping to power gains, and the chinese internet company up by fifty-six percent. remember, joe, we got the jobs stuff this week, today, tomorrow, and the big jobs report on friday, and, of coursing, on all important fed meeting, all of that shows whether or not the fourth quarter remains seasonally strong, joe, or whether or not we could see some market catalysts to take us to the downside. this is a huge deal for a lot of people in the market, especially in the year that's been pretty uneventful looking at the year to date numbers. still a lot of volatility, joe. back over to you. >> coming up, dom, and just so you know, you know, we have the safe space area here. there is a time of year coming up that we're now going to call the potential for a generic holiday, december holiday season rally. i think, is that okay, andrew?

a -- >> a generic holiday december rally for the season of the holidays, some of which, many of which occur at some point in december, that type of rally. >> is that away to avoid saying santa claus -- >> oh! >> you're nixing santa claus from the conversation? no santa claus? can we say the -- >> what happened in the elf on the shelf segment yesterday. did they offend you? >> very much so. >> we talked about mench on a bench. >> that's microaggression for sure. >> i thought i'd have you on board, living around you. are you upper west side? >> totally. >> he defines the upper west side. >> i love santa claus. >> all right. >> as you know. >> you go out on a limb and say it. >> i'll talk about santa and christmas. >> are we expecting the generic

holiday december seasonal rally? >> okay. i understand the thinking behind it, joe, but i don't -- there's part of me that just wants to go to santa claus. >> don't ruin your career. >> you guys. >> thanks, dom. for more on this week's big job report, let's bring in the managing director and chief managing strategist, and managing director of global research. what do you think happens this week with the report and what's it mean for the fed? >> i don't think it means that much for the fed. we got the big one from last month, a loft data's come out stronger. ed fed's laid the case out for a move, and i think it would be highly -- >> i read that as it has to be really, really bad jobs report for them not to go in december. >> yeah. the liftoff story to me is a done deal. it's a question of how they couch it in language, how many times janet says the word gradual, which could be in the

hundreds by the time we're done with december. it's a pc word. gradual should be okay in the lexicon. >> it's not microaggression. >> not yet. maybe there's other words to describe the federal reserve policy that's aggression. >> major aggression some think. what does the market do as a result? >> key off the ecb. the ecb is the big news of the week. they are going to negative rates, going to much more negative rates, an i don't -- i really don't think any of us are prepared for what it means to have a negative forty basis point deposit rate in a major currency. >> thinking that europe rallies as a result of that? we rally as a result of that? >> it's a currency move. the dollar strengthens, which it's already doing and has done most of the year, and european stocks rally. that's the trade all year, focusing on the europeanrade and european qe, but at the end of the day, that relieves pressure on fed to raise rates

much, and market expectations come down a bit, and that's somewhat positive for the idea that the fed's going to get aggressive on us. the dollar does the heavy lifting, rates do not, and that's net positive for the equity market, also reproves uncertainty. >> we watched the equity market move higher in three months while at the same time, there's been some people argue signals in the bond market with recessions strong signals of recession, the ten year doesn't move, but who is right, do you think? the equity market or is it the fixed income market? are you concerned about messages from the bond market? >> i'm not concerned about recession risk the in the near term, and i think the employment report friday, its importance as dave said, is not really for the fed decision, but important for telling us where the economy is. if we're right, we get gains in jobs, and with we're rate, the up employment rate stays to the current level. there's two things. one, there's underlying momentum although the corporate sector is hurt by weakness abroad in the

rise in the dollar. the second thing is we still have a very weak supply side and underlying dynamics on productivity and labor supplies. the near term is a solid economy, pushed and pulled by international and domestic forces. >> is sub two percent gdp growth in the fourth quarter solid? use the word solid? >> there's two issues here. one is that growth is likely to have a mix with a significant inventory drag. >> it's -- >> it's always something. >> first quarter is crappy. >> demand in the u.s. is growing at three percent base. >> two straight again, two straight gdp reads?gdp. i think the next four quarters, demand grows three percent, held back by a drag, mupdment tally by trade drag, and grow at two

percent. i think the underlying, the potential growth rate of the u.s. right now is one and a half. we're growing above trend, tightening labor markets. i think the surprise for the fed next year is going to be the die nappi dynamics moving lower. >> we can't grow more because the labor market's so tight? >> no, we can grow more, but we can't grow more than one and a half percent without a continued tightening, and labor markets are getting tight and we have zero policy rates. that's the dynamic. another thing to note here, one the big events in three months is global inflation is going up by a percentage point. that's an easy call because it's telling you the big drop in inflation this year because of falling energy prices fades. we take out the deflation their fears in the picture that colors the debate as well. >> that's a telling thing, isn't it? we think of one percent move in global inflation is big, right? i mean, that's telling you where

we stand in the last -- what do you think of the high yield in corporates in the rise in premiums there? >> at this point in the cycle, you expect some defaults, right? we saw a lot of companies borrow money with easy monetary policy. that's what happens, dump in the system, people borrow, cheap, easy to get, and now we are pulling out. no more qe, no more adding to the balance sheet or dumping of dollars in the system, so i think as the dollar rises and as the policy goes from super easy to just easy, people struggle to pay back the dollars. >> i should read increased corporate defaults as a sign the economy is not as strong as people think. >> as it rises, defaults rise. the cycle it maturing. things are moving towards the end half of it. i don't know if it's two years, three years, five years. >> what inning. yeah. >> none of us can predict those

things, but expect that as we move from policy accommodation and recession into a period of growth and some prosperity, and two and a quarter percent is reasonable prosperity. it's not great, joe, but i call it reasonable, and that's probably what we're beginning to have this year, then you expect some companies to be part of the business cycle move. >> some not. >> and you expect some companies to the to be part of the business cycle move. energy. those guys are going to default. >> thanks, guys, chris, david, great to have you on. >> up next, board members considering a sale of the company's core internet business in the "wall street journal," but there's another story. saying the rumors are overblown. we have a tech analyst, mark mahaney to weigh in, and then trends, the smartest commerce division, where people spend money this season, and we go behind the wheel with the president of mclaren north

america. check out the car right there. >> it's been out there since this morning it's hard to find time to keep up on my shows.

that's why i switched from u-verse to xfinity. now i can download my dvr recordings and take them anywhere. ready or not, here i come! (whispers) now hide-and-seek time can also be catch-up-on-my-shows time. here i come! can't find you anywhere! don't settle for u-verse. x1 from xfinity will change the way you experience tv. shares higher after a report that the company's board is considering the sale of the core internet businesses, and joining us now with insights is mark

mahaney, lead internet analyst, how many are there at rbc, mark? you're the top dog, huh? >> he's got a staff. >> working for you, running around trying to make mark happy? >> staying up all night in. >> sweet n' low or equal? do they get docked in pay? >> we have a great team of six people working. we try to cover it all. >> good. this better be good. you got, you know, seven people total to say whether they do this. will they do it? >> well, this is what we know. they are having board meetings this week, previously scheduled. i don't think that's surprising, and the responsibility of the board has to be consider selling not just the alibaba stake, but core business as well with fundamental underperformance of the stock for a substantial period of time. they should be looking at all options, and they are. the question is how many buyers

there are for the different pieces. >> who can say what the company should do? who is the entity that is making -- that would make the decision to do things like that? there's a few, aren't there? the board and activists and everything else, and marissa herself, i'm sure. >> yeah, the board, the management team, there's a couple of very influential investors involved in this. you know, it takes two to tango, and if they want to do a sale, they have to make sure there are buyers, doesn't appear to be right now. there's value in there. likely priced at two times cash flow, three times cash flow, and that could probably go a couple of turns higher. should be a couple multiple points higher. the problem is switching over to the asia assets, the tax complications are uncertainly right now, a huge deal, up to ten billion in a potential tax hit if they don't get the favorle treatment from the irs. i don't know whether they should or should not, but anyone owning

that stake has to worry about a ten billion tax hilt, and most don't want to deal with that so they look to sell the core business. >> to the extent they are willing to and there's a dispute in the wall street journal and recode on this, my sense is we're in the middle. i imagine they are going to look at itment i don't know if they do anything tomorrow, but do you want a public option for the asset if you're not sure there are buyers? think about the buyers, go through the list. there's the telecom companies, maybe, if you pretend it's an aol style thing, doing a verizon deal or private equity transaction? >> well, andrew, i think the key point is i don't think they want to sell the core business. i think they want to go ahead with the sale of the stake, they assumed, thought, and they thought they got the tax free status. chances are they will, but it's a big -- the downside here to getting that call wrong is substantial, like a ten billion dollar tax hilt with mounting pressure with holders to at

least consider the sale of the core business. you have to go through all the questions. >> the reason they don't necessarily in your opinion, you don't think they want to, is it because there's a natural buyer out there for the core assets? >> right now, there doesn't appear to be. natural buyers? there should be for the following reasons. this is still a very large asset on the internet. hundreds of millions of users, highly profitable business, google has shown that, facebook has shown that, and it's bun that's been a very inexpensively priced in the public market, the setup for some interested strategic bidder to come in. private equity does not give you a premium. >> i don't understand the situation with yahoo! because as you said, it's still an incredibly valuable asset. whenever the story on cnbc.com is linked to the yahoo! home page happening frequently, the numbers go up dramatically. incredibly visited site. why can't they monetize that? that's the underlying question

everyone struggled with for years, but astounding to have an asset of ripe quality you can't do anything with. >> it is astounding. that speaks to a board and management or mismanagement over the last five years. they generate a billion in free cash flow this year, forty percent what this same company generated seven years ago. from a numbers perspective, that's the biggest sign of mismanagement you can have. i don't overly blame there. there's pressure, rise of twitter, facebook, google, ad markets and display services that have really pressured premium ad vendors. aol did it right and sold at the right time. yahoo! that's a great exit if they find the right buyer, but the competitive pressures are worse for yahoo! if they don't do anything dramatic, and nothing dramatic has been done in two to three years. if they don't do something, the cash flow dwindles, a deteriorating asset. >> mark, i know kara said the

board is behind marissa mayer right now, but what do you hear now? there's a series of articles recently about people circling the wagons around here in good and bad ways. >> you know, it's kind of hard to circle wagons around her in good ways. you know, we had two and a half, three year track record here, and there's not much to show for it. they had a lot of opportunities. ourle call here from a growth investing perspective is she's not aggressive enough in looking at acquisitions, rolling out new product. there was a point in the article today that's spot on which is there's been, you know, little product innovation from a company where, you know, look what happened at google and at facebook over the last three years. a lot more product innovations from really aggressive bold acquisitions that look like they will turn out well for both companies, and yahoo! there's not been enough activity. >> circling wagons.

>> circling wagons. >> protective. >> sharks. >> right. >> sharks circle. >> that's why i said in good and bad ways. >> there's not a bad way to circle. >> aren't you the writer on the panel? >> if you circle and start shooting, you shoot the people on the other side. >> that's why i through in the bad ways, once i used the wrong me metaph metaphor -- >> sharks circling are bad, wagons circling are always good. >> you like that mark? >> that okay with you, mark? >> he has to check with the six other internet -- >> thanks, mark. >> yeah, give me a minute. >> let them know. >> splenda. >> my favorite. european government paying citizens to have babies, but it may not be enough to spark a baby boom. details next.

a market alert, look at the

german two year yield that's gone negative, a record low at this point. negative. yes. you can give the german government for two years, and you will get less of it back. that's where we are. >> good deal. >> between the united states and the european union. what are you thinking, joe? >> if there was a way -- if there was a safety, obviously, you would have rationale. just thinking of it on a purely, you know, put yourself -- let's say you're twelve yieears old, explaining interest, makes no sense, unless you realize there are people with huge sums of money not parked anywhere else, and just have the return of most of your principle is good enough in certain cases, but that does commentary on the overall economic environment of the region you're in right now. it's not great, right? i mean, obviously. >> absolutely.

>> they get to that point. in this case, there's very few bonds to buy to do qe. >> that's the other problem, lack of supply. >> messed up -- >> you know, we killed the story on poland. you know what poland's doing? paying people to have babies because of the birthrate is declining rapidly. germany does this. >> a lot of countries at this point -- it's the demographic problem of how many young people support people that are not working. it's a tough situation. when we come back, see what people are buying this holiday season. the computer working tracking shopping trends, get a look at the year's hot products from ibm's smartest commerce division. we do that next when we return.

♪ welcome back to "squawk box" on cnbc, your first in business worldwide. among the stories today, sun

edson is a stock to watch. the solar energy company terminated an agreement to by sixteen percent stake in a brazilian company. it's a stock that does not buy as much as it used to? would have seen terraform global which is partly owned by sun sunedison. gain of four and a half percent, and general electric says reorganization has gun. the plan reduces the size of the ge's financial services and ceo jeff immelt joins jeff cramer on "mad monday" tonight. let's get in the numbers and where consumers spent money this holiday season or have thus far and where it's going. we have a breakdown of what he's seeing ing seeing, global strategy

director, using the watson computer to understand trends taking place. jay, good morning. >> good morning. >> let's walk through this. you said, looking online sales for cyber monday, up seventeen percent over last year, but cash on cash we spend is lower. what's going on? >> average order values ranged a little bit, up a few percentage points over the weekend, down for black friday and cyber monday, but overall, online sales were up pretty healthy. you saw almost twenty percent on cyber monday, and twenty-six percent on thanks giving day, and up consistently throughout the weekend. generally, we are seeing strong growth in online sales, and consumers are pulling out the phones, sitting in front of the desk top computers and shopping. >> you talk about pulling out a phone, and we were on monday, and she talked about people pulled out a phone, literally inside a macy's, for example, or

inside some other store looking at a product, feeling it, touching it, and then deciding is this priced appropriately, and if not, i'm going to buy online. how much do you see of that? >> we're seeing that a lot. really, we saw a lot of strong purchasing happening through smart phones and we saw generally people using mobile devices about thirty percent of the time to make their purchases on line. that's a huge percentage. we saw about sixty percent of all online traffic coming from mobile devices. really strong use of mobile. a lot of retailers have embraced the idea that consumers are going to be using their smart phones inside the stores. they have been using it to have, you know, special coupons that only available in the mobile devices redeemed in stores, and we saw a lot of retailers investing in, you know, waabili to send targeted messages while consumers shop the stores, so, yeah, i think, you know, the best retailers are the ones that are really doing well are

embracing the idea that consumers are price comparing and -- >> is there -- >> looking for ratings and reviews. >> is there a different type of product or price point someone buys something on a mobile device that lends itself to believe they are not at home in front of a desk top relative to what they do on a desk top? >> i mean, like i said, this year for the first time ever, we really saw people using in mass quantities their smart phones to do purchasing regardless of what the purchase amount was. people used small screens to buy big things, and, you know, that was driving a lot of interest in some key product categories, high definition tvs were big this year. >> to andrew's point, where you break down the data, you say when people purchase stuff, tablet, average purchase price is a hundred fort buy bucks, so sounds like bigger purchases are

meant to happen when you have a bigger screen. you get more information. are you less likely to buy a samsung on your phone than -- >> certainly. we are seeing consumers more comfortable making some of the bigger purchases using the desk top or tablets. that lends itself better to put your credit card information in, shipping address, so, you know, you see slightly higher average order values for tablets and desk tops, but do not underestimate the power of the smart phone which is a healthy average order value. >> going back to the first question when overall, the size of the purchase is actually down from last year, the average purchase last year, is that deflation in products or -- >> i mean, that's sort of low single digit change. i wouldn't really read too much into it. i think, you know, i focus more on the overall trend in terms of online shopping being up, more about twenty percent than low single digit changes in the

average order value. >> any type of product you're surprised has now all the sudden gained steam in terms of sales online that was not there a year ago. >> you know, we've seen strong purchases this year for ultrahigh definition tvs. seen pretty much anything legos are hot this yeerks and we've seen really strong interest in high definition cameras. for me, this was a surprise in what watson was able to tell us is that the reason that, you know, in spite of us all having a powerful camera in the pockets part of the smart phone, that's nurturing the next generation of photography end thursdayiests. people who used their phone casually are looking to upgrade to a stand alone camera that has higher resolution and can take better pictures. >> fair enough. jay, we appreciate it very much. thank you for joining us this morning. >> thanks, guys. >> you know what i thought he was going to say?

>> what's that? >> buying more stuff, so if you buy more stuff, online drugstore, et cetera, the price point's going to get smaller because you use -- whereas it used to be just christmas gifts, et cetera, et cetera, right? >> i find myself randomly, if i need something, i go on the phone, but amazon. >> that's what i do. >> because the credit card's in. >> it's easy. >> right. >> can you order stuff like that on your phone and delivered to your house? >> yep. >> yep. frequently. it's christmas every day. >> all the time. >> all the time. >> whatever you need? >> the ipad case that we had for our ipad broke on the trip, and i was in the airport, and i said, you know, i'll get another case. there was one for twenty bucks, pressed the thing, and monday morning it was there. >> one click purchasing, you're done. >> i have not clicked that. >> you have not click yet? >> you're missing out, dude. >> somebody clicks for me. >> your wife does the shopping, that's right.

>> exactly. >> uh-huh. >> coming up. president of mclaren, looking at the super care, priced like a sports car. it's been called the porsche killer. we'll be right back.

surprise!!!!! we heard you got a job as a developer! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "trains"! you're not gonna develop stuff anymore? no i am... do you know what ge is? and ca"super food?" is that recommend sya real thing?cedar? it's a great school, but is it the right one for her? is this really any better than the one you got last year? if we consolidate suppliers, what's the savings there? so should we go with the 467 horsepower? ...or is a 423 enough?

good question. you ask a lot of good questions... i think we should move you into our new fund. sure... ok. but are you asking enough about how your wealth is managed? wealth management at charles schwab.

welcome back. "squawk box" high performance this morning, behind the wheel now with mclaren. cnbc wealth editor, robert frank, is outside the studio with a special guest. robert? >> good morning, joe. this is the ultimate disrupter on wheels, the brand new mclaren, and this is the first to arrive in north america. joining us is tony joseph, the north american president, tony, thanks for having us and for bringing the car. so much of mclaren is riding on this vehicle. how has the reception been in the u.s.? what's the waiting list like? who are the customers for the car? >> reception's been very, very strong, and especially significant for us because we were able to have the global launch here, actually, in new york. it's the first, in our history of having the global launch in the u.s. market. >> what makes this car so special is that it is a super

car priced like a sports car. in other words, we had cars priced above two hundred thousand, and cars priced below one hundred thousands, but this is in between. how has that been ferrari, porsche, how do the others react? >> already has redefined the market size, and it is a super car in terms of looks and performance, but it's priced in a sports car segment. >> we have to lock at the inside, but i have to ask you, it's coming up on christmas. is anyone buying this car as a christmas present? >> we know at least two people, two women who bought the car for their husbands throughout the country. >> it's like silicon valley, a giant red bow on the mclaren, right? what's the biggest market in the u.s.? >> dallas, texas, but florida's strong for us and southern california and new york. >> you were saying dallas is the

largest dealership for mclaren in the world? >> traditionally the largest dealer in the world. >> ferrari went public, porsche's ramping up production. what do you think the demand for super cars for sports cars looks like for next year? are the wealthy still going to be buying these big toys given what's happened in the market and what happened with the fed? >> well, i think this is going to attract a broader group of customers for us. the other thing we're going to be able to do with this is offer this in terms of a lease. >> oh. >> lease payments attract a broader appeal of customers. >> i got to ask, a lease, so this sells, so what's the lease per month? >> average payment on a three year is twenty-three hundred a month. >> i know, joe, looks good. basically the same price as the new turbo s. i got to say, it looks a little cooler, don't you think? >> i can assure you it's fun to drive. >> it is cool.

i like the way you say that, though, robert, i mean, it's just cheap as the turbo s. >> you have been glued to the interview in a way you're not normally glued to interviews. >> that's two hundred? >> so the price on this is one hundred eight four, and the turbo s is a little faster, but this goes zero to sixty in three seconds, and, again, the styling on this versus what you get in a similar price range and performance is there's nothing on the market similar. lamborghini is catching up, downgrading the price of a new euro con, but this is a new segment in the market. >> it's cool. obviously. those wings. i want to drive it around like that, though. see if it'll fly.

>> billionaire cars doors open like this. billionaire doors, they open like this. >> cool looking, really is. is that every color? >> they come in any color you want, michelle. >> all right. great. all right. well, thanks to anthony joseph, and kind of weird, we got two guys, both have two first names. anthony joseph and robert frank. i don't know what that means. means that we're going to go to the next story. political news this morning, new national poll finds ben carson losing the lead in the race for the republican nomination. the new university poll shows carson with a down seven points in the last month and trails the donald. the trump has twenty-seven percent support in the latest poll. you have marco rubio with seventeen, and no other gop candidate even gets five percent

in the latest poll. wow. >> okay. toughest issue facing sports from the pros to the pea wee leagues, concussions. we are going to talk about the nhl's new concussion study and how to keep players safe.

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a suit that alleges in a decade long plan to seal risk of concussions in the risk of serious brain disease. this is no stranger to hockey, racking up penalty minutes -- why start with that -- author of "shoot first, pass later," an analyst for nhl on nbc, an american, one of five to score five hundred goals? >> i had a nice long career, played with great players, third american overall to score five hundred and one since m only four. >> you should be in the hall of fame. >> you know, the hall went by again, and i hope next year's my year, but i played in the best generation of hockey. >> you did. >> the list goes on, but hopefully next year there's a nice gap. >> so there's some parallels to

nfl and nhl, and andrew and i talk about this a lot. there are inherent dangers in sports, not just football and hockey, but any sport. guys love to play them. they'd give anything growing up to play them. they do it knowing that there are some risks. it's inherent other than dealing with the concussion when it happens, not coming back in, and everyone knowing you have to take time to heal properly, that's the best you can do. that doesn't seem like you should sue people about it. >> i agree. to the point made, it's exactly right. as a kid, i grew up wanting to play in the nhl. i wanted to be in front of the fans. i wanted to electrify people, sign autographs, i knew the dangers. we know it's a physical sport. concussions are going to happen. they are going to happen whether you're at the house and fall down or walk across the street,

hit with a bike, you don't know when a concussion's going to come, but you're right, it's what you do when you have them, how you treat them, and now the nhl and nfl, they know about concussio concussions. back in the eights, we didn't know about concussions. the league did not know about concussions or the lasting effects of concussions, so for me to go back and sue the league that you dreamt about being in, the league that allowed you to make a good salary, play professional sports, be a professional athletes, and now you turn around and sue them because what you think is lack of judgment? we all had lack of judgment. now it's a better time where people know about concussions, treating them right, but they will happen. >> were you approached to join? >> i was, absolutely of the i got phone calls, letters in the mail, and every time, i said i think i would be like a hypocrite if i went back and sued the national hockey league. i'm proud of what i did. >> you got in debates with other players about this? >> absolutely. >> what do they say? >> that they knew about the

concussions, they pressured you back in, and -- >> right. gave you pain -- the stories is the doctors knew there was problems, gave you painkillers to get on the ice. >> all in all, it's your decision as a human being to know when you don't feel good and you feel good. >> right. >> whether you play or don't play. yeah, you want your job, but, also your health. you make the decision to go back and play, regardless if the team or doctors pressure you to play like the guys are saying they did. >> you think the leagues knew more than they let on? that's the other piece of it. it's not just this took place and they knew nothing, but the argument is they did have a better understanding of this. >> i don't think so. i don't. the concussion aspect is in the forefront since the nineties understanding that the brain could get a disease from contacts, so, no, i don't believe that. i do believe that nfl and nhl are rough sports. they are warrior-like sport, and

they -- it's about getting back into the game. playing hurt. >> your jaw. when you were hit with the slap shot, how many bones broke? >> i had twenty three breaks all over. >> wow. >> that got fixed, and you had a shoulder, then how many breaks? >> four right after. >> you have any actual bone that you were born with in your jaw? >> my jaw is titanium here to here. not much feeling in the chin. >> and your penalty points he was not going to bring up, but they did, you played tough. guys play tough now, but you had the idea that you didn't use the word pansy. i think i can use word pansy. they drop gloves immediately. >> the game is becoming softer, and it's softer because when i came in the league, we made

ninety five thousands, and wayne gretsky was the highest paid. we had to american our money. we had to play four to five years and be productive. now kids come in at eighteen years old with millions of dollars. where is the motivation to play and dig and have to do the things? all the sudden, they are hurt, oh, you know, maybe i don't have to play tonight, i don't have to worry about whether i'll make the money. the money is given to them right away. it makes it a little easier for the athlete these days. >> i know gary, he's been on a bunch of times on "squawk box," and i remember after one of the lockouts, i think nbc paid a dollar to -- this was before high definition was as prevalent. it was the greatest purchase ever. people love or hate that when he was not a hockey player. four million was the revenue, but how much now? approaching four billion. it's -- hockey has never been -- my daughter's having a sweet

sixteen, what did she want to do? go to a ranger game. >> the game's never been stronger in terms of popularity and revenue growth. >> amazing. >> what gary's done in the national hockey league and put the players in front of, what he's introduced to the public business wise, corporation wise, ownership wise, so, and the players have a lot to do with it. players are as good, strong, talented, and fast as ever. >> yes. >> the kids are amazing, amazing athletes. >> are you friends? >> yes. >> my daughter -- >> like friends -- >> i can't -- probably shouldn't say that, but he's like -- >> he's a good person to follow. unbelievable personality. >> playing against the rangers, we hate him. >> the flyers booed me. i only got appreciation when i was hit in the jaw, broke the jaw, and stood up, and they cheered me. but they gave me a standing ovation for getting up and skating off the ice with the jaw, which i thought was cool. >> samsung tvs, high definition

in hockey is unreal. d >> changed the game into a big business, and it's put us on the map. >> a pleasure meeting you. you're a legend and stud. good to have you in. >> thank you. >> great having you. >> great having you. the book is "shoot first, pass later." coming up, the adp private payroll report.

of had m

numbers and instant analysis from the adp report coming up. getting away for the holidays, sharing a holiday destination wish list and recent acquisition of home away. >> plus, a new dad promises his daughter to give away his facebook fortune to make the world a better place for her. details straight ahead as the final hour of "squawk box" begins right now. ♪

live from the heart of business, new york city, this is "squawk box." welcome back to "squawk box" here on cnbc, first in business worldwide, i'm joe with andrew, and michelle caruso-cabrera, and we are less than ninety minutes from the opening bell on wall street, and futures are negative. we are now down thirteen, and dow down fractionally on the s&p, and nasdaq continues to outperform, up five. markets in europe. see if that started it. they were all up earlier, up a half to three quarters a percent, and now everything but the ftse is also turning red. >> here are the stories that investors talk about today. yahoo!'s board meets this week, directors consider sale of the core internet business. also on the agenda, whether or not the company should go forward with the plan to spin off more than thirty billion dollars in shares of alibaba. this morning's recode reports

that the board backs mayer and reports of her demise are greatly exaggerated. the fed chair, janet yellen, scheduled to speak this afternoon, and investors, of course, are listening for any hints on the central bank's rate plans. mortgage applications down slightly in the latest week. a jump in purchase applications was justify set by a drop in refinancing. >> another headline this morning, mark zuckerberg giving away his portions, a limited liability company focusing on personalized learning, curing disease, connecting people, and building strong communities, selling or giving up to one billion in shares in each of the next three years. he'll maintain controlling stake in facebook for the foreseeable future. chevron upgraded to buy from

neutral, citing the solid balance sheet, improved capital allocation, and ability to weather lower oil prices. most eye is rated by a new coverage at evercorp. saying they are the dominate player in the field of autonomous driving technology and stands head and shoulders above the peers in the growing business so it's -- our buddy ralph doesn't like it, ralph nader says slow down in the autonomous driving. >> at some point, the driver is not in control anymore. right. that's the point. brown forman is three cents below estimates, revenue falling short, and the spirits producer says the results were hurt by the strong dollar, but that its business is strong. could you, andrew? do you go to dwi, autonomous

car? >> no. >> so that's like your designated driver? could be your car? >> this is part -- >> just dawned on me now, yes. >> oh, my gosh. >> you're still operating a little bit, aren't you? >> well, no. the current cars that have -- you pass out in the backseat? >> that's the map. that's the goal. >> i hope so. i like to be on the phone. >> what a lush. >> gosh. i like to be on the phone the whole time. >> there's other things going on. online shoppers outnumbered the brick and mortar counterparts. this underscores challenges that retailers and malls face so contactually what are they buying? courtney will break down the numbers. >> good morning, andrew. there's surveys, data points, and opinions. online shopping is they are in

november, and noble shopping is king. according to the national retail federation, more than half of the americans that shopped online bought clothing and one-third of the consumers bought electronics, but retailers take a hit on margins. wallet hub says apparel averages a discount in consumer electr electroni electronics, and first data says electronics saw the largest decline in average ticket size over the last year in the last weekend. based on trends and e-mail receip receipts, these are the top five black friday online retailers. amazon number one with nearly thirty-six percent, and best buy a distant second with eight percent of total online revenue, then macy's. they call out american eagle,

lbrands, victoria's secret, and bath and body works names as early winners and tjx had compelling deals. that's what analysts offer, and wayfair, slice intelligence says wayfair saw the biggest growth in online revenue over the black friday weekend, and this morning, they just put out numbers to confirm that strong growth, a record weekend for them. >> thanks. new car sales run at a high rate, low financing driving the trend. phil lebeau has details on lending. hi, phil. >> hey, michelle. i love data when it comes out because it's from experion, tracking the loans out there, showing us what people are borrowing, what they are paying, and what the interest rate is, and really which borrowing are targeted. according to the third quarter, this is a record amount in terms of how much people borrowed,

almost twenty-nine thousands dollars, average length of a loan remains at sixty seven months, and average monthly payment remains under five hundred dollars. i hear from people saying, well, it's only a bubble in sub prime loans. that's the only thing fuelling auto sales. wrong. completely wrong. look at who borrows now. the biggest growth is not the lower end, but higher end. super prime, one out of five auto loans go to people with credit scores. prime at forty-one percent, and there is growth, but not as much as with super prime. finally, auto leasing has continued to take off. it is now at a record high. in fact, more than one out of every four new vehicles that are sold or roll out of a showroom, they are leased, an indication that people are looking for the lower monthly payment. look at the major publicly

traded auto dealership stocks in five years. this was the place to invest. if you were going to invest in the auto sector five years ago seeing the rampup in auto sales, this was the place to invest. there you go, guys, twenty-nine thousands, on average what people are taking out in auto loans. >> all right. phil, thank you. you're right. i mean, have not made money in ford -- initially making all the money, and nothing hand since then with gm either. that's the place to be if you want to be in the sector. phil, thanks. >> absolutely. >> even though the strong dollar is hitting u.s. manufacturing where it hurts, where is that? the equity markets shrug it off in what the next guest says highlights the tale of two economies. with more on that is the senior vice president and chief investment strategist at charles schw schwab.

we have a safe zone here, like any college student is safe here from microgreat depressiicrmicr. tourists come, but not as much because of the dollar. what's safe from the dollar strain? >> i'm not sure anything is totally safe. you know, you see the tale of two economies is a function of the dollar, which is compressed manufacturing activity. traditional ism pmi is now in contraction territory, although the market is marginally in expansion territory, not just a function of the dollar, of course, but corresponding plunge in energy prices, and i think that's a key whether we see any reversal or slowing in the trends we have seen which could mean that earnings, which have been in contraction the last couple quarters finally are able to claw their way back into positive territories so i think generally the domestic side of

the economy is in decent shape, the services side of the economy is in decent shape, but we're still at below trend growth rate. >> so i don't know what your forecast at the beginning of the year was, but a lot of people were -- i don't know, mid single digits to maybe just under ten percent, i don't know what we get, but what's it add up to? >> we don't try to precisely forecast the market in terms of s&p target. i don't know where the market's going to close today, let alone a year today in december next year, but we do publish ratings on all the asset classes, and our ratings on u.s. equities was neutral last year, believing that you would not likely make a lot of headway, there was a pickup in volatility, greater risk of pull back, and that's panned out so far. there's weeks left in the year, but at this point, when i look into next year, there's no reason to change that view. i still think we're in a secular

bull market, but a mature phase, more mature for the economy, and until we're past the economy largely driven by the fed, we stay -- >> on that note, we have breaking news, atlanta fed president saying there is a chance that the upcoming fed meeting will be, quote, historic, where the committee will consider its first increase in nearly ten years, a president voting this year saying the case for liftoff is compelling. the criteria for further labor improvement has been met and factors suppressing inflation are transitory. any reaction to that? just confirm what we expected? >> not only confirms what the consensus expectation is, but we have been within that consensus too believing that we will hear the announcement of twenty-five basis point hike in december, and you would have to see an extraordinary span of weakness including pride's jobs report, i

think, for the fed to curtail that expectation. >> thanks, great to have you. >> thanks, good to see you all. okay, when we return, adp's private payroll report results, and in the meantime, here's the futures at this hour after michelle brought you the news. dow opening down twenty-eight points. back in a moment.

okay, we await the adp employment report, and ahead of the number, the industrial average opens lower. let's get to steve with the numbers. >> thanks, michelle. private payroll company, adp, says private payrolls grew two hundred seventeen thousand in november, a bit above expectations, and october report revised up, and the estimate for friday for overall jobs plus private is two hundred thousand. goods up, and let's bring in mark zandy from moodys.com from london, i understand. we continue the pace here, but with a strong pace? >> yeah.

the average over the last six months, year, actually, over the last three years is close to almost double the pace of the working age, the growth of the working age population, so at this pace, we're absorbing the slack in the labor market quickly, and there's not much slack left. >> let's talk about who does the hiring. looking, for example, by industry, construction, up sixteen thousand, a sign of housing, perhaps, and manufacturing, even up six thousand, and we're talking about a manufacturing recession, though, i would point out while the overall number in the ism yesterday was negative, the employment number was strong. what going on in the manufacturing sector, mark? >> autos. you know, there's the big auto number, over eighteen million vehicles sold in november, that's over the last three months, and for the year, comes in at a record high so we sell a lot of vehicles which is important to the broad manufacturing base. the trade side of manufacturing,

the trade sensitive side is struggling, but there's not a lot of jobs there. job losses are modest, and that's more than justify set in the job creation of the auto part. >> just twelve percent of the economy. real quickly, the services sector surging, best numbers since june. really, that's a tale of two economies, mark, where it looks like the manufacturing sector ex autos is hurt by the weaker economy, but the service sectors continues the pace here. >> yeah. i mean, the american consumer is really doing very well, real consumer spending growth is solidly over three percent year over year, that's been the case in the last year. they are buying a lot of everything, but buying lots of different kinds of services, everything from health care, financial services, travel, tourism, all of the above, driving a lot of service employment growth, and i don't see that slowing soon. there's a lot of job openings,

and so we'll see a lot of hiring in the fore seernl future. >> mark, turn to the growth forecast. i want to tell everybody joe talked about this earlier. the atlanta fed's gdp marked down seriously, and i would point out that cnbc has a competing product, rapid update. >> we have a better product, steve. >> the initial data shows our product may be better than the atlanta fed. >> yeah rg, right. >> people follow it, it's doing a good job, is atlanta fed too pessimistic, and rapid update shows fourth quarter above two percent too optimistic? >> i don't know if atlanta got the yesterday's vehicle numbers and construction numbers into the estimate. when you put that in, i think we are closer to two percent. the kind of current run rate in the economy in terms of gdp growth i think is pretty solidly

close to two. of course, as you know, the real swing factor here is inventory. that's very hard to estimate, particularly this early in the quarter. we don't have a lot of data, but my sense is that, you know, we're tracking at least two percent in underlying growth, extracting from the data ups and downs, it's stronger than that, between two and a half and three on gdp growth. >> mark, thanks for joining us this morning, mark zandi, a two percent economy and listen to yellen today to see if she makes the case for the rate hike. >> thanks. >> a lot of question about yahoo! this morning, and kara swisher is next with news on that, too, and still to come, barry bonds making a baseball comeback, and later with stockpiles of oil at our near full levels, petroleum companies look for places to store oil and how salt caverns are now storage tanks. wti at forty-one. back in a moment.

welcome back, speculation going on about the company's board meeting this morning, and shares at this hour up close to four percent after a wall street journal report today talks about how they might want to sell the core company, but we are joined on the squawk news line with another take on what's going on. i think.

kara, good morning to you. >> caller: yeah, hey, how are you doing? >> what's really happening here? >> caller: well, i think here's a board faced with a lot of pressure from the ceo. we started off the stories about how badly she's doing, and so there's a lot of pressure from wall street and others, especially after the spinoff of alibaba, gone not as well as they thought it would be because they don't have the tax from regulators. here's a board meeting about to happen. they have to discuss all kinds of options. now, they hired a consultant to figure out how to get rid of stuff, rid of assets, turn around the turn around. it might not be enough. they have to bring up the idea they sell the company, which i've been saying they should the entire time. the question is, is it sort of a save for wall street? is it the things they have to do as a border directors, and my only point is this will not happen tomorrow in the meeting. the journal characterizes special hair on fire kind of meeting, but it's a regular board meeting they discuss this and especially the spinoff of

alibaba, the more important part. >> the point is this was on the agenda or at least for the past month. >> yes. they have been doing this, and they have to contemplate the entire thing. there's increasing interest in buying all of yahoo! as the spin happens. we wrote about that a number of times creating a company that's almost worth nothing, really, if you take away its cash and its stake in yahoo! japan. a lot of ceo companies are circling -- >> handicap what's going to happen next in terms of who could emerge? you talk in your speech about telecom companies, private equity firms like tpg. are they on the hoop? can you imagine a public auction for the company? >> caller: no. i don't think that's the case. it's a really difficult buy for pe companies because this has been not just an execution problem, but a secular problem that that the business is not what they want. they have not been able to innovate. people are not using the internet in how yahoo! presents

it, and so for a pe company, this is tough to swallow. i feel like it's more a purchase for a telecom company and someone who needs to get in the video business that needs advertising company like if verizon bought aol or a cheechi that wants a brand name and users, lines breaking into the u.s., more difficult to sell because of the issues around a chinese company buying the american company, obviously, but, you know, like a stock bank could look at it. i don't see any indications they are interested, but that would be a candidate, for example, or a others could be looking at a company like this. >> on the bottom of the screens right now, we are running a boa banner, the board backs mayer, your headline effectively this morning. >> caller: yes. >> how much do they really back her? oftentimes boards come out publicly or privately, we back

them, that's the first time they don't. >> caller: well, no. they didn't publicly do this. twitter publicly backed dick costello, and he left kind of thing, so i think what's happening here is that after we recode and also forbes wrote a lot of devastating stories about the talent exodus, and there was a story she was going to be fired. i've been a critic of this executive for a long time because i don't think it can be turned around and she's had issues around a lot of things, but she's not about to be fired. there were, like, twenty articles saying she would be fired. that's not the case. she's got a board in place, and they are not abandoning her. that's the point i was trying to make. >> kara, we got to run, but do you think anybody else could have salvaged what seems to be a challenging situation? we have twenty-seconds. >> caller: i think if someone came in and cut immediately, bout netflix at the time, there was tons of opportunities in the

honeymoon period, but now it's not that. maybe before. now it's hard. it's tough. >> thank you for sorting through this morning. appreciate it. >> caller: no problem, thanks. when we return, a storage war for oil. the race is on to find new places to hold crude as tanks reach maximum capacity. a look at how one energy company's taking the situation underground in salt caverns. we'll be right back. headed to break, look at u.s. equity futures. mixed at this hour.

welcome back to "squawk box." rick santelli live on the floor of the cme group. breaking news. third quarterfinal, unit labor costs, expecting the number slightly north of two percent and got a number slightly north of two percent. the final follows unrevised, and the best quarter for productivity was three and a half percent, and that was the second quarter. so then unrevised now, and unit

labor costs up a little bit more than expected. we were expecting up one percent, and we ended up with up one point eight, and moments ago, there was two hundred seventeen thousand in adp. although it's not three hundred thousand, it's better than expected, and deals climbed a little bit, up three to four basis points from yesterday, and it was close to a four week low yield settlement, and, of course, we're looking forward to the big number on friday, and one thing to pay close attention to is we continue to see the dollar firming up on the notion that the fed will firm up rates. will it come to pass? i don't know. we are doing sustained trade above one hundred. joe, back to you. >> thank you, rick. oil now. record levels, storage capacity's tight from oklahoma to the golf course, and morgan

brennan is in houston with more on what it means on prices headed into next year. if we only knew. >> reporter: yes. so that is the big question. let's look at the storage scenario. look at this. this rig is actually drilling down into salt caverns underground spreading out underneath my feet. these -- when the first phase of the project is develop by fairway energy partners, and when the first phase is online next year, it's capable of storing up to ten million barrels the crude. just to put that in perspective, it's enough oil to fill the houston astro dome, miles from here. this is one of several high profile projects underway right now in the golf course region, and this is aimed at increasing storage for the glut of crude oil. u.s. commercial crude inventories are at four hundred million barrels, and that's what is roughly two-thirds of all

available oil storage in use, that is a huge percentage, arguably more than any other time in history, and over half of that is here on the golf course, hitting a record two weeks ago. tanks in oklahoma filling up again, at seventy eight percent utilization rights now. they are storing rather than selling it. they price oil higher than on the spot market. with so much oil sitting in tanks here in the u.s., not to mention the fact analysts point out storage space is filling up in other countries around the world. this is a bearish indicator for prices headed into next year, but even so and despite the fact we have fight tighter capacity the globe, we see this as an investment strategy. the names you need to know later this morning on "squawk on the street," back over to you. >> looking forward to it, morgan.

the problems we never thought would occur with the price of oil doing what it's done. thanks so much. the other big story, top fed officials in the microphones today, highlighted by janet yellen speaking to the economic club of washington. she testifies before congress tomorrow is not likely to give away much about the fed's plans when it meets in two weeks, but other speakers today, including the atlanta president, and patrick harker, and john williams, we have a quick market check of the tjm institutional services, a cnbc cricketer, jim, we heard from lockhart today who said it could be a historic meeting in the case for liftoff is strong at this point. what do you think what happens today in light of the fed talk you get today and tomorrow? >> well, first of all, thirty hours ago, there was a crummy number from china and then forty-eight on the contraction number. the fed never tightse tightened

the ism under eighty. they planned on tightening and couching it with the tightest rhetoric they could and apologize the whole way, but now they apologize a little less, but i think they are going to, and if you think about it from a market standpoint, the market's not talking about a tightening cycle. the fed talked about tightening, they have to to save credibility, and make sure the levers are make sure they work right, and they are going to tighten. they will not continue to tighten, because although we see strength in the labor market, we see crummy numbers, you know, in many other places, and the stock market should like it. i think if it stays above twenty one today, and the futures consolidate above there, there's a run at new highs. >> see the german two year yield this morning? it's a record low. divergence between the u.s. and europe is playing out in so many ways. >> there's no question. that makes an argument for the target as well too. when you look around the globe, and thanks to investment, see

draghi tomorrow, we know he's all in, real, real dovish, throwing more money at their problems too, and the escape philosophy of that money comes in and trying to find the best possible place, and the u.s. target does not look bad compared to everything else. the u.s. stock market looks good compared to everything else. what do you want, probably for growth here or negative seven year needs in germany. >> the dollar strengthens theoretically in light of monetary policy on two continents giving head wind to the u.s. markets at some point? >> of course it does. it gives it more a head wind to the actual economic story than it does the stock market. remember, there's two separate things. i think that's one of the reasons that this tightening is a one off and then they retreat back to a relatively doviish stance because they are uncomfortable with the strength of the dollar, and we saw that in yesterday's ism number of the the strong dollar really is doing some damage to the big multinationals. >> what happens when the fed raises rates? rally? sell off? flat? going to be so priced in it does

nothing? >> i think the third is probably the most likely it's so priced in. they want to be very, very transparent, and they told us to tighten. there's patches where we would not listen, the market is the we, but now we know it's going to happen. i think they are going to tighten. i think there's going to be relief. i think that the dollar probably breaks. the euro goes higher, and the stock market goes higher because it always seems to go higher until it doesn't, but we're not at that point yet, but there's relief. priced in, buy the rumor, sell the fact. buy the dollar in anticipation of the tightening, and when it comes, it's a hair anticlimatic. >> thank you so much. >> thank you. we want to get away for the holidays. a look at hot destinations and deals for the season with the ceo of expedia. it's worth watching just to see the intro. we'll be right back. here's your.

a few stops later, and it looks like big ollie is on the mend.. it might not seem that glamorous having an old pickup truck for an office... or filling your days looking down the south end of a heifer, but...i wouldn't have it any other way. look at that, i had my best month ever. and earned a shiny new office upgrade. i run on quickbooks. that's how i own it.

well, if it does not already, it will soon look like christmas in many parts of the country, and, today, the rockefeller christmas tree will be lit for the first time. it's going to happen tonight. thousands of people expected to come out to enjoy live performances at rockefeller plaza. the tree remains lit and can be viewed until january, and, of course, if you can't make it physically to the tree, watch nbc tonight starting at seven

tonight eastern time, featuring sting, james taylor, mary j., and more. i can't wait. look at futures in the meantime as she waits for that to happen, dow off twenty, and s&p off a point right now. we are in the thick of the holiday season, and according to the u.s. department of transportation, the average long distance trip for thanksgiving was an estimate of two hundred four teen miles and further for christmas expected to travel up to two hundred seventy five miles. you are in washington this morning, thank you for waking up early. good morning to you. >> happy to do it, thanks. >> help us to try to understand this is sellishfor everyone tra expedia, can we get good tickets? what's the premium? >> you can find good tickets.

normally, last year, you'd be in trouble. this year, for example, look at expedia on air fares from the east coast to the west coast, prices would be on a round trip basis of four hundred eighty five dollars, down from last year. some of the savings that the airline companies are finding in fuel, they pass over to consumers, which is good news. average rates, for example, on christmas week and new year's week are down two and four percent on hotels as well. in general, prices are right. if you have not booked your travel, you can, and you can still get good deals out there. >> okay. give us the tricks, though. it's best to travel on christmas day, new year's day, and these things? >> so avoid traveling the day before christmas or the day after christmas. for example, if you can travel on the monday after new year's week, you can save a lot of money. another really good trick, if you're not flexible on travel is to look at some of the secondary airports out there.

if you're flying, if you're looking to fly to l.a., look to fly to long beach as well. it's a small airport. actually, security lines can be much shorter. if you fly to chicago, look into midway. same in new york and laguardia as well. if you keep looking at secondary airports, you save ten to twenty percent from the fare, and i find the experience is nicer, it's less crazy than the big airports. >> i have to click the check mark next to the destination that says do you want to include surrounding airports? >> yes. yes. >> okay. i don't know if this is a myth or not, but tuesday or wednesday night, go online for airlines, sometimes you can somehow get better rates. is that true anymore? >> it is true in that tuesday and wednesday nights often the airlines change the fares. that's when the revenue management kicks in so you might see better fares out there. if you are looking to save on fares overall, and the best way

to do it, almost guaranteed, not always guaranteed, but combine air fare with the hotel. it's like an internet bundle. buying phone and cable service together, you get a discount. buy the air fare with hotel, air and car or hotel and car, combine fares into single fare and get special deals out there, especially if you're going into some resort destinations, mexico you can save eight hundred dollars. if you can combine on expedia or one of the other sites, you can really save some money. >> i don't know if the question is good or bad for your business, but joe knows i'm cheap and i like to use miles as much as humanly possible. >> just finding out about the mexico thing. now you tell him. >> i never have known what is the threshold at which i use the miles because i get a good deal for the miles, or i should actually pay the money and use expedia. >> a penny a mile. look for a penny a mile. if you get a penny a mile, it's

a good deal. if it is less than that, you might want to consider saving up and paying cash and saving up those miles for another event. >> all right. >> okay. >> you got that, joe? >> i have to think about that. what is getting into the front of the cabin? what's that worth? >> see, that's what i want to use the miles for. upgrades better than free tickets. >> good point, actually, miles for business class, tickets and upgrades are a great deal. >> while we have you here, you just acquired home away. you have been on a hot streak for now close to two years. what do you think happened? one of the things, read the commentary about the company, you zbguys have become an acquisition machine, almost a vehicle to buy and collect up all sorts of different assets, and you've done in in a way that i think surprised a lot of market. what happened here? >> well, a couple things happened. one is that we invested four, five years ago in a very, very vast technology platform that

enabled us to take other brands and essentially leverage that technology platform to serve consumers bet and save costs at the same time. it was a technology innovation that enabled us to go out there and bring other brands like a travelocity and orbitz on and save money at the same time. >> the investor class didn't appreciate what happened when you made investments earlier on? >> yeah. you read it in the press which it is not particularly fashionable to invest in companies, and a lot of times of the public markets frown on the investments. we made investments up front, had a chairman like barry dil , diller, and it was not appreciated early on, but now they see the fruits of the investment and the stock and company is doing well. it's great to see. >> thinking of home away, a

competitor to air benb, do they lose with the success, the hotels? >> hotels see more price competition because alternative lodging is coming to the market more and more. any time you introduce supply in the market there's price pressure in the market. at the same time, it's a great way for the millennial traveler to be introduced into travel. you see a lot of travellers out there traveling who couldn't afford to otherwise. i think near term over the next one to three years, it provides pricing pressure long term. it's good for the travel industry, and we're a big player with home away now. >> okay. thank you for joining us this morning. of course, the president and ceo of expedia, thanks. happy holidays. >> thanks for having me. >> when we return, jim cramer joins us from the new york stock exchange. here's the futures as we head to break, back in a moment.

big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

genius. the marlins are on the verge of hiring controversial home run king barry bonds.

"usa today" says barring a last minute change of heart, bonds is planning on accepting that offer. marlins owner jeffrey lurie has been a long-time supporter of barry bonds. let's get down to the new york stock exchange with jim cramer. we've been talking about your interview with jeff immelt tonight. what do you need to find out for yourself and for viewers, do you think, jim? >> i think this is the new ge. i want to find out whether jeff understands the shareholder base change. in other words, that this is an industrial company. and what he can do to change the perception. i mention this, there's a great ad campaign on now about a guy coming in not going to facebook or google, he's talking about going to ge. this is the kind of thing that makes people realize, this digital reinvention of ge is capturing youth, capturing

america. people don't want to necessarily go to an internet company. i'm trying to figure out whether the shareholders or the people -- just perspective shareholders get the change, the transformation. i want jeff to spell it out. i know he can do it better than anyone. >> stocks are not always right, how they trade. but you would think ge would have some dollar problems, because it's multinational. we know that they've gone big in oil and gas. yet the stock is at a new high when a lot of other companies in oil or gas are susceptible to dollar strains. why is this stock at highs when others are at lows. >> there was a meeting in paris about climate change. oil and gas and china the two markets that have slowed, are less than 20% of the company.

they've been taking huge chair in aircraft engines, killing the other guys. announced a gigantic train deal in india. they have the highest organic growth of any industrial, major industrial in the world. and that's why it's working for them. >> be nice to see a complete catch up. >> wouldn't it? >> it would be nice for immelt, obviously. we'll see new six and a half minutes or so. jim will interview jeff immelt tonight on "mad money." coming up, time to slow down on self-driving cars? who else but ralph nader seems to think so. we'll have the details on that story, his attempt to march backwards and much more. "squawk box" will be right back. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one.

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jenner, and the video game mi minecraft. rhonda rousey was the most searched, carly fiorina the most searched presidential hopeful. >> is there a trend there where you're less isfamiliar with the person, so you want to check it out? not super famous, and somebody not as well known. people are more inclined to -- >> really? the top searched cocktail was the old-fashioned which my mother always drank. hold the bitters, which i have no idea what that means. i still don't know. >> i think you need the bitters. >> you need the bitters? >> yeah. >> jerry seinfeld is getting a new home. some think it will be for one knight a month. he'll have residency at the beacon theater in new york.

seinfeld will perform stand-up once a month in "jerry seinfeld: the home stand." it will last for at least six shows. it's sort of like the one the garden made with billy joel in 2012. >> can we go. >> i went in the last year or two. seinfeld is hilarious. jen genius. if you take them out of order, the jokes don't work. and his physical -- >> he did a concert tour in london. >> amy schumer was amazing. larry david not funny at all. wanda was just crude. wanda sykes. >> can't he afford his own place

to live? >> i think it's good do it that way. >> it's three blocks from where he lives. upper west. >> it's good. >> we should go. >> do you know him. >> i don't know. >> get some tickets. why don't you know him? >> i have to work on that. >> don't you all look for the same tree to take your kids to show -- >> show them the one tree? >> yeah. check it out. a lot of dogs there, too. >> i'll have do some social climbing. >> same preschool? >> nope. >> ralph nader wants the oauto industry to hit the brake on self-o self-automated cars. he says it could lead to more distracted drivers and deaths on the road. his comments came on the fifth anniversary of his book "unsafe at any speed: the designed in dangers of the american automobile." he's concerned about too much software in the car.

>> people are still mad at him. he skewed one election. >> yes. >> the most asked question was how do you tie a tie someone told me. >> that would be the millennial thing. >> begin the show with the tie -- begin the show with a tie and end it with a tie. thank you for being here. >> nice to be here. thank you for thanking me. i'll thank you tomorrow. >> join us tomorrow. "squawk on the street" is next. ♪ good wednesday morning, i'm carl quintanilla with jim cramer, david faber at the new york stocks exchange. yellen speaks just past noon eastern time. three other fed speakers take the mike as well today. asia steady overnight. europe is faltering on this