>> live from new york where business never sleeps, this is squawk box. >> welcome right here on this christmas eve. i'm andrew ross sorkin. becky has the day off. we do have confirmation this morning from the north american aerospace defense command and santa is on the move. >> look at him go. >> norad continuing the 60 yearlong tradition of tracking the guy in red as he makes his way across the world to bring gifts to boys and girls. if you're looking for white christmas this year, the only way to do that if you're in new york right now is to head west. in the south and even parts of the northeast people will be wearing shorts. a southwest wind could bring temperatures in the 60s and 70s. >> but not you. >> but not me.

i'm wearing a sweater. >> you're cold. was it cold yesterday and today in the studio. >> television is a visual medium. >> it's the holidays. >> it's not the plaid. it's the sweaters that bother you. >> it's the whole thing. >> it's christmas. >> it's christmas. it's holidays. >> is it cold at 70 degrees? >> this is my christmas shirt. i with only wear it once a year. >> you design something based on what it's supposed -- it's 70 degrees. >> here's the issue. i thought about that today. the complicated part is this shirt is a very big and plaidish bright shirt and i think it

doesn't work without a sweater on top of it. >> cover it up so it's not too much plaid on tv. >> correct. >> i think it might be too much. >> anchoring is very scientific. >> fashion police here we come. >> here's the other big stories we're watching today. it's a half day of trading on wall street. the closing bell will ring at 1:00 p.m. eastern time and after a third straight day of rallies the major stock averages are on pace for the first positive week in the last three weeks. year to date the s&p is now fractionally higher. the dow is still down. u.s. equity futures are suggesting that we would see a negative open. dow open by 42 points. nasdaq lower by nearly 12. oil prices continue to be a major driver. we saw the move higher

yesterday. 37.55. lower by 16 cents below the price of crude. we haven't seen that in years. natural gas about $2. >> there were a lot of mixed signals yesterday. it was oil stocks yesterday. a lot of stocks were flat if you look across the board. that's bothering me. >> that red thing right there? >> no, the monitor there. it's not usually a monitor. >> yeah. i don't know why that is. >> mine was like that earlier and they fixed it. >> we have screens in this desk so we can read our computers. >> there's a lot happening right there. >> i love watching myself. >> you do? >> yes. >> first time filings expected to tick up just a bit.

last minute shoppers expected to be out today. but it's all about online sales. so many online sales that the shippers were a little bit disrupted but there's a piece on the front page of the wall street journal. the latest numbers say that sales at physical stores dropped nearly 7%. a lot more work for shippers. fed ex and ups have their networks moving at capacity this week and both enforcing it. >> the traffic down 10% at christmas. this is the year we look at and say this marked the moment where the major shift happened. it's been building but the walls

in particular. >> getting rocked. >> here's what's going on. >> his investment firm leading a group of investors that bought 5% of lyft. now the rival to uber trying to raise up to $1 billion in it's funding round. he is not a stranger to tech companies. they own more than 5% of twitter. the big question is whether this someone of these winner take all businesses where uber owns the whole business or can lyft beat competitors in sort of the social issues or network effects of how these things actually work. this sbringiis bringing the val up making it the fourth biggest unicorn in the world. it helps government agencies

track down terrorists and uncover financial fraud. uber is one. airbnb is one and these guys would be the fourth. who is the third? i'll have to think about that one for just a minute. >> we'll come back to that. >> high yak hotels attacked with payment card stealing malware. it discovered the breech three weeks ago. this is the fourth major hotel operator to warn of a cyberattack since october. another attack on fantasy sports cites. illinois joining a list of states to ban it's residents from playing contests offered by fan dual and draft king. the states attorney general says the cites constitute gambling under illinois law. >> and last week he was charged with security's fraud and now one of the bio tech companies that he ran being delisted by the nasdaq.

they exchanged cites including not filing a quarterly report. >> the dow continues to be lower. nasdaq is the best performer for the year but it's down 11 today. there's a lot of christmas spirit in those numbers there and very muted santa claus rally. he may just not realize it's the 24th of december given the air we have here. europe was responding to better action yesterday. generated by the move in oil and exxon and chevron and the dow helped to good gains yesterday.

if you remember a lot of it was spawned by shanghai and most of it has a good gain at this point. oil had all to do with oil. remember before we roll the contract this week we are down in the 34 and change area. so we did roll the contract and went up and was maybe good for a dollar but 37.58 now knows it is a supply and still in the back of people's minds they wonder whether it's saying something about demand and whether we're really -- whether the world is really at 2% gdp growth or not because the atlanta fed now says 1.3. they were lowest at 107 or 108. they brought down the numbers for first quarter or, fourth quarter. >> all the way down to 1.3. >> the euro has been rallying and this morning i saw it all the way up to 111 and if you

look at a weekly chart, it must be looking at a different -- no, it was 1 so when i looked at it this morning. it was 1.1 but that has rallied and you remember on another thing that i remember you talking about a lot that huge move from 104 or 105. >> yeah. it was crazy. >> when mario draghi did what he did. he wasn't as strong as everybody wanted him to be. >> okay. then there's gold. 10:71 and that has been not very interesting just on a long, slow, steady, sickening decline if you're long over the last year, right? >> there's been so many instances. >> supposed to go to 2,000. >> if you do it right now when are they ever going to buy it? >> i don't know. >> used for 400.

said it would move several hundred dollars a day. >> you can get a descent suit. >> yes, you can and when you go to the right place you can get it for $175. >> not him for sure. >> but you're going to like how you look when you do that. >> a couple of descent suits for a couple of hundred dollars. >> bonds have been the biggest winner in the fixed income universe this year while junk has been the biggest loser. big piece in the journal in the c section that even though we have seen this big decline in high yield guy with all of this money still aren't moving. i don't know if that's positive or negative though. but let's turn now to what's ahead in 2016. joining us now is the co-ceo. who is the other ceo? >> it's actually barbara yastine who was the ceo of ali bank.

>> unrelated to jim. >> unrelated. i believe we are the only female co-ceos on wall street. i'm pretty sure. >> if you disagree with her isn't it your firm? >> i have yet to disagree. women tend to work well together. >> right. >> but it's actually a huge thing to have someone like her. >> so you get along but if push comes to shovel -- >> i mean, come on. >> that's got to be worth something. >> we will see. >> all you want to talk about is strategy and now you have to talk about all of this stuff. i don't know why so even though high yield sold off you're not

ready. but it's still very dangerous. >> this happens across the board. things happen and individual investors. is it time to jump in or are you going to get tangled up in the ropes? it's too early. there's an interesting article in the journal today about what happened at 3rd avenue and there's just still too much carnage and look at junk bond etfs and people don't realize it's as complicated as it is and you have to let the situation play out more and certainly even though with the rate increase it's been measured i think we're still a little bit too early for that. >> to puerto rico did not spoil the party in your universe at all? >> no, but puerto rico is still such a but specifically some of

the bond issues in puerto rico, to country is very nice. >> i wish i was going there for vacation right now. look and here's what really should happen in puerto rico to turn that situation around. you need a financial control board like in new york city in the 1970s. somebody that comes in and says we're going to take the tough steps that need to happen to structurally change the whole country. something that a governor can't do and interestingly enough you've had the governor say i'm not even running again. >> but there was the contagion that you might have to sell other stuff. >> i said a million times that every situation is specific unto itself so the one thing that hasn't really spread so much is so many funds.

>> i watched it. >> you follow the situation obviously. >> in terms of what should happen there i assume you're on the side of the bond holdings. is there some room to compromise on that? because there's a larger debate about whether you could bring somebody in to restructure the place but whether it's ultimately even doable. without bond holders. i'm not saying it's right or wrong. i'm just asking. >> ultimately i'd love to be on the side of the bond holdings but there's the reality of you can't get blood from a stone so there's just a point and look you had puerto rico electric power authority did reach an agreement with bond holders so that is ultimately i believe going to have to happen. >> what's frustrating to watch

and reminds me of greece is the people in puerto rico think it's them or the bond holders. they're going to lose. the salaries are too high and they are so uncompetitive they're going to lose no matter what. they cannot keep going the way they're going regardless of what happens in the bond holders and they have to get over the idea that it's us versus them. they already lost. >> and i do wish there was more understanding within the federal government and congress. you had bernie sanders saying they're getting 10% and children are going hungry in puerto rico? those just don't match up obvio obviously and that does need to be paid more attention to on behalf of the federal government. >> is your main worry that oil hasn't bottomed and we're off back to the races again on high yie

yield. >> there will be disasters. >> there's a bunch of factors that we have to be concerned about. that's one of them and we're all happy when we drive up to the gas pump. >> overall. >> the main issue is what will happen with interest rates. i'm pleased with how communicative janet yellen has been and that's important for the market and you've seen how interest rates have responded and any one thing could cause volatility in the market. >> last thing, people want you to buy them and there aren't a bad time because of the tax reasons but usually you have to go 7 or 8 years to get any kind of a yield so we're in now a period of rising interest rates

and they'll say you can get -- i don't know, what can you get on a 7 year now? what? 2, 3, so they do the equivalent and say look 4.5% based on -- 4.5 in a normal interest rate environment you don't want to lockup for 7 years and i would be hesitant at this point to say i'm ready to stay in this or accept the principle loss. should people be moving in at this point or should you stand on the sideline until the rates go up? >> they're expensive. >> they're trading at very low ratios. in january it's typically very low. it could be a very volatile market. i would look at the corporate market and you have some potentially very large deals that have not come yet that will fund acquisitions so i think there's more opportunity in the corporate market. >> so i don't have a management

fee now for people. you don't get a point on a bond anymore? you get a point. >> they were like ten point bon bonds. >> you can only do 5%. >> when did that start? is that in the stupid dodd frank thing or something? >> no, it goes way back but most of our business is managed and actually we do much more on the equity side and my brother who is the bigger cnbc star than me. not that i'm upset or anything -- >> he's on the halftime report. >> yeah. >> that's her brother. >> jim junior. >> yeah. >> going to have to watch that show. >> yeah. he's pretty good actually. chip off the old block. yeah he's great. >> is he that guy with the ponytail. >> two guy with ponytails.

you know that. >> josh, what's his name? >> lucky him. thank you. >> thank you. >> ask her if everything went okay. >> i will. >> coming up next, what is the forecast looking like for the millions of us set to hit the road and the skies today and what kind of weather can santa expect tonight? the holiday forecast is next. plus last minute gift ideas. not sure what to get for those last few names on your list? we have you covered. first as we head to break, here's a look back at this date in history. proud of you, son. ge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code

that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world.

>> welcome back. if you're just waking up this morning let's get you up to speed on the market. dow would open lower by 42 points and s&p by nearly 5 and nasdaq by nearly 12. oil prices flat compared to yesterday. wti higher. higher than the price of brent

crude at 37.16 and lower by 19 cents. we haven't seen that relationship between crude and brent for years now. >> nearly one in three people in the united states are expected to travel between yesterday and january 3rd. that's more than 91 million people will be on the road. almost 6 million will fly total holiday season travellers will top 100 million for the first time. >> ever. wow. >> and reynolds wolf joins us now from the weather channel with today's forecast. and somehow you got to explain how global warming can cause this as well as all the polar f vortexes from yesterday. >> i don't know where to begin with the explanation. >> i didn't want to put you on the spot there buddy.

i know how you are. >> good answer. >> we do expect crazy conditions. yesterday 15 tornadoes was the count. six people lost their lives in the tornado. could have another rough day again today. set up is similar. moisture coming in from the gulf of mexico. that boundary driving it's way to the east so we anticipate widespread delays for a lot of folks going from one airport to another all three major airports you have. atlanta, hartfield jackson. we have know in the picture and then something else. another system will come crawling into parts of west texas as we get into saturday and sunday. that could be an absolute piece of work. it could give us blizzards for parts of the central and southern planes. chicago 42 degrees.

do you get back into the valley and you'll see snowfall there. think about it. tough enough just driving with the kids in the van and with this weather it's going to be a tough proposition to get from one side of the map to the other. back to you. >> we'll talk about last minute christmas shopping right now. it is christmas eve morning and last minute shoppers are still out in droves trying to find the best gifts for their loved ones and while it's too late to pick up your favorite gifts online we have last minute suggestions you can find in stores across the country. she is the author of the new york times best seller whose title we can't say on tv but you can see it on the screen. you know where we're going here. >> good morning. >> so we only have a couple manufacture hours to go. >> i know. we had to find some stuff that you can buy in stores.

so let's start over here. lululemon and the children's brand. so this is for your teenager daughter. that's for the wife in your life or the mom in your life. it goes from the gym to lunch. looks fashionable. sales people are super helpful. >> one of those is $198. >> it's gorgeous and stunning. you can wear it like a jacket. the quality is fantastic. it lasts forever. >> is that for a mom -- >> even a shotty mom. >> everyone is going to love it. >> shotty is to go to word on tv. >> it could be anything. you put a thing there. >> yeah. shatty, wait a minute, that might be the past tense. >> here we have a lap stop. >> this is so cool.

$699.99. go to walmart. run don't walk. it is a star wars limited edition notebook. >> it's a real notebook. >> it's a real notebook. completely preprogrammed with 1100 star wars images. this will really make somebody smile. >> the keyboard lights up in red. >> looks like it's been on a ship for a long time. >> it's nice. >> so we have some fuji film here. >> yeah, fuji film. >> this is old school. >> look how cute this picture is. just took of you all. >> you took that now. >> i just took that now. you can get this at urban outfitters. but how cool is this? a tiny little printer. $199. get your smartphone, any picture and turns it into polaroid.

adorable. >> it's so old school. can you get them digitally too? how does this work. >> this is a picture that i took and printed it out so i wanted it to keep in my memory that they don always fight. >> so this was my christmas gift. >> merry christmas to you. >> this is a quite comfort 25. >> bose head phones. they're going to run you about 300 dollars. >> you have expensive taste andrew. >> well i'll tell you can i say if you're on an airplane -- we always joke about kids on airplanes, this is what you need. >> this i'm actually wearing. it's cool. it's pronounced phillip and it's a ups tracker. it's for if you don't want to buy your kid a smartphone for christmas and they're begging you. it's five numbers preprogrammed in. you can put it in your computer and find your kid anywhere and know where they are. >> this is gps in it. >> they wear it like a watch. >> i'll rotate it so you can

see. >> very, very cool. >> so how long -- do we know how long the battery lasts? do you have to recharge it every night? >> you have to recharge it but it shows you how long it runs. >> it has a telephone. >> you can call. i can call you right now. >> really? >> yeah. >> but i can only call five numbers. >> five numbers. >> plus an emergency number or something. >> emergency number and it records it. >> this is a great product. >> it's 100 and about $10 a month on at&t plan. >> this is brilliant. >> yeah. >> this is the phone. >> this is for kids. >> but it's an actual phone. >> you need to carry a phone around. >> when this rings the phone has to be nearby. >> this is it. this is the whole thing. >> yeah. >> call mary. >> kids will love this kick tracy effect. >> you can spend hours on the phone. i assume this is the 1 minute call to say mom. >> it's calling me right now. i just called me. >> can we do it?

>> yeah. >> you can call me there. >> how do i call you. talk in mary, hello. >> can you hear me? >> well now it's on here. let's turn this off for a second. >> sorry. we should get this near a speakerphone. is this too complicated. maybe too complicated for tv. >> this is great. it's great for the kid that doesn't need a smartphone yet but you can't to keep track of them. >> two things around your neck. >> one has a curse word on it and the other is the giving keys los angeles. they're amazing. this is for the person in your life that's like i don't want anything but you want to give them something. so this has words on it like dream. my says fearless and the point of the necklace is that once you fulfilled your goals you pass it along to someone that needs it more than you. put in your address it will give you a list of stores you can go today and buy it.

>> how much is it? >> about $62. >> and then finally this seems like, i would think a big ticket item but it's not, a bike trip with bono. >> so if you go to red.org starting at a $10 donation, the bill and melinda gates foundation are doubling the money right now, if you give $10 you have 10 chances to win. if you give 10,000. >> it's like a lottery. >> so i don't get to. >> it's for the gamblers out there. >> and you can hang out with george clooney. he'll give you a compliment apparently. >> for 45 seconds. you can do kim kardashian. i know your audience loves the kardashians. teach you how to do your make up. >> how much does that go for. >> it's just the lottery. >> it's a lottery, man. >> bono got back on the saddle. >> for this. for charity. >> yeah. >> thank you. >> thank you so very much. >> people want to go with bono somewhere. >> george clooney.

there's a whole -- >> i'm surprised joe is not on the list. >> they tried to get me but they settled for clooney. >> i'm going to get that printer. >> it's adorable. >> coming up why a 7-year-old girl in new jersey called 911 with an elf emergency. plus the sleigh isn't the only way santa is going to make it to town. check out this video from washington state. some of santa's helpers taking to the water on their paddle boards. it is extremely hard. now as we head to break a look at yesterday's winners and losers from the s&p 500. ♪

>> welcome back to squawk box. it's christmas eve morning. a 7-year-old new jersey girl called 911 in a panic when she did something that she thought would get her in trouble with santa. brian thomas talked to her about her elf emergency. >> she points to the two elves

safely tucked in these stockings in the living room. >> i was very nervous. >> you see, somehow, one of the elves on a shelf ended up on the floor while mom was sheeping. izzy making a desperate call to 911. >> hello. >> it's isabella. >> hi, hi isabella. why are you calling 911? >> when suddenly this little girl panicked. don't come to my house. >> no. >> okay. her elf was in trouble. >> i was trying to call my dad but i called you on accident. >> you can just say you made a mistake, okay? >> she tells me now that she was throwing a ball and accidentally hit her elf but police came to this door worried that she was in real trouble, her mom woke from sleep to see her daughter trying to shoo the cop away. >> she was hysterical crying. she was panicking. >> i didn't want to get in trouble. the officer radio headquatered.

>> isabella apologized. she touched her elf on the shelf. she won't call 911 again. >> police with their own christmas cheer to handout was understanding. >> she touched the elf and she's going to ruin christmas. that was her emergency. >> so she did right. >> in her mind she did right and it was fine with us. >> and izzy learned her lesson with santa. >> he knows i'm not going to do that again. >> that was a fun little christmas story. i must say we had the folks that created elf on the shelf on the show two or three weeks ago and then after that we, the sorkin family bought an elf on the shelf because we thought maybe it would help our kids be good because they would be watching but our guys, they know it's fake and they say and they say -- we put the elf on the shelf and they go it's fake. it's fake. >> keeps looking up and he's

worrying. >> difference in age. >> our guys are five and i think that kyle is four. >> they have outgrown the fear. >> they're not calling 911 about the elf. >> santa, that's just a symbol of him. he watches. he knows when you're sleeping. >> right. >> bad or good. >> my guys like to -- they like to tell on each other if somebody does bad and they say maybe you should call the police on them and take them to jail. >> you have to tell them no one likes a rat though andrew. tattle tails. >> it's not a tattle -- they'll say daddy what are you going to do to henry? what are you going to do to max. and i'll say go to his room. and they'll say maybe we should call the police. >> vindictive. wow. coming up, saudi prince buys a stake in lyft. those details next. plus hyatt hotels is the latest company hit by a cyberattack. ibm out with a new warning today listing the industries most at risk of being hacked. stay tuned, you're watching

squawk box on cnbc. we're first in business worldwide.

take a look at u.s. equity futures at this hour on christmas eve morning. you're looking at red arrows. dow off 40 points right now. we should bring you up to speed on a couple of today's top corporate stories. a little bit slower right now. the saudi prince's investment firm lead a group of investors that bought more than 5% of lyft. now they're trying to raise up to a billion dollars in a funding round. also data analytics security

company palantir raising $880 million and bringing the valuation above $20 billion making it the fourth highest value tech unicorn in the world. michelle, over to you. >> thank you, andrew. two new hacking reports being released this morning by ibm and they show that there is a major shift in the industries being targeted by data thieves. here with the alarming results, the vice president of ibm security. good to have you here. >> good morning. how are you? >> good. so we think based on what we have seen over the last couple of years retailers have been the most targeted and the most hacked. those are gone down and shifted to a different industry? >> they have. if we think of the last couple of years sitting here just before the holidays we hear about that major retailer breech and we're starting to think we'll have to update and get our credit cards replaced.

good news, they're down 92% over last year. this is the best year in the last five years for retailers and it's good evidence that they're working hard on starting to solve this problem and adding new teams and capabilities and the roll out. >> okay. so if retailing has gone down, caleb, health care hacking has gone up dramatically by more than a thousand percent. >> it has. we're seeing an 1100% increase in health care breeches. we're talking about 100 million records. there's more than 321 million people in the united states. this represents about one in three americans that had their health care records compromised over the course of this year.

when they're hacking health care records are they looking for financial data or my medical history? >> well, interestingly enough all of that. >> why would they want my medical history? >> well, it's medical history and social security number. what street you grew up on. all of that is in the health care record and the problem is its what we call immutable data. it isn't easy to change. you can't call somebody up and say give me a new health care record. it's stuck with you for the rest of your life. so this information could be used 20 years from now to establish credit file a tax return on your behalf or file a false medical claim. >> i don't know if you see 60 minutes this week because tim cook was on and there was a debate about encryption and whether technology companies should get rid of the key, if

you will. and of course in the iphone 6 and 6 plus they're effectively throwing away the key completely so even if the government were to call they would say we don even have a key. is that the right policy given all the issues that you just raised? >> it is. this data has to be protected where it's stored and when it's in devices and the only viable way to do that is with encryption. here's the other thing that most people don't realize about encryption, 20 years ago it was something very unique that was held by very few companies and very few countries had access to military grade encryption. now it's a commodity. pretty much anybody can get access to it and it's the only way we're going to protect private data is to encrypt it. >> in the journal today there's two long editorials and it says

encrypted devices block law enforcement from collecting evidence. period. what do we do? is that the world you want to live in where terrorists can encrypt their information and there's no way law enforcement can follow it? >> the challenge we have to look at when we're talking about encryption is if there's a back door someone will find a way to exploit it and the adversary we're up against here is large teams well organized and well planning in their attacks. we have to keep this data private. let's face it. 100 million health care records and most of which were disclosed in the first five months of this year alone. >> but if they were encrypted that never would have happened you're saying. >> the attackers might have gotten access to the data but it would have been useless. >> i talked to a prosecutor in the last week telling nae there are folks in prison telling their family members make sure

that you upgraded to an iphone 6 because we need to make sure that our communications are encrypted. there's worries that terrorists are going to use these devices. they weren't used in san bernardino and paris and you have to imagine in the future they very well will be used. >> well, you also have to look at its not just the device. it's a commodity and available in any country in the world. so whether you encrypt the hardware and device or software the simple reality is encryption is a technology available to the good guys and bad guys. that's unfortunately the reality of the world we're in today. >> situation in every invention we have ever seen. thank you, appreciate it. >> the fbi director said one of the two garland, texas shooters was using encryption.

they attacked the mohammed art exhibit in may and exchanged 109 messages with an operative overseas and they have no idea. >> this is a philosophical view and technological apple. >> it's far more philosophical discussion. >> even apple right now, a court recently told apple they had to give the key -- they were ordered to open up the key, which they had on something, and apple appealed it. coming up, donald trump lapping the gop field so far in 2016, and he's doing it while spending almost nothing. why you can't use ads to buy voter love this year.

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welcome back, the candidates vying for the presidential nomination spent more than three times on tv and radio advertisements as both the republican and democratic candidates combined by this time in the last election cycle. we are joined now with the numbers, good morning. >> reporter: good morning andrew. an expensive year, and approaching the end of the year here, nbc news tallied up the spending by the major presidential candidates looking for trends, and what you see in the numbers is this defies all sort of traditional expectations about money in politics. traditionally, we expected rich people would spend ways to higher poll numbers and to the the establishment controlled

candidates by controlling the flow of money, but look at the numbers. team jeb bush so far this year spent $38.1 million on ads. rubio, 17.8 million, and hillary clinton, $12 million, and team kasich, $9 million. meanwhile, trump leading in the field, by a lot he'll tell you, spent just over $200,000. that tells you money can't buy you love in this election year. meanwhile, jeb bush mired in the single digits here despite all that massive ad spending. remember, the bush campaign talked about shock and awe in terms of fundraising earlier in the year, earlier in the political cycle. that is just simply not showing up at the polls despite all that money they are spending. this is a very different year, and it's really upending a lot of the conventional wisdom how to use money in politics and how money in politics controls what

the establishments says and dictate rules in the games. guys? >> that whole bush network there for w., i don't know. the same way, w. was flush with cash too. >> reporter: right. >> in the first run. same bundlers, and same this time around, what happened? >> reporter: yeah. the question is, i think, you know, will bush continue that fundraising phase. early on, if your name is bush, go to the network say, look, write me a check, i'm running, i'm the guy, the establishment coalesces around me. now though, close to the bottom of the heap, can they go to the same people saying we need a check for next year. they say it's good money after bad money. >> thanks, merry christmas, happy holididayholidays. >> you too. >> tracking planes around the worlding and problems today which are a tough day, when "squawk box" comes right back.

flr

♪ while you're watching this, i'm hacking your company. grabbing your data. stealing your customers' secrets. there's an army of us.

relentlessly unpicking your patchwork of security. think you'll spot us? ♪ you haven't so far. the next wave of the internet requires the next wave of security. we're ready. are you? . >> it's the day before christmas. the old year is fading. it's time for a new year of trading. becky's on break, but michelle's filling in. watching crude and stock trading, and now here for an hour, ed lee, covering the gadgets wrapped under your tree. we'll ask him about stocks recent bombardment and if amazon has a shipping department. retail performance, apparel is weak in a winter that's warming. a trip to the movie, the guide of the films worth seeing, "star

wars" aside, and if you have not picked up a gift, the birch box ceo makes her look pretty. new makeup each month in a box so you can sign up and forget the botox. the year's almost over. we've made it somehow. 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 to "squawk box" here on cnbc, first in business worldwide with joe and michelle caruso-cabrera and christmas eve morning, becky has the day off. a quick shoutout to our producer putting together that open with the great poetry. thank you for that and everything you do.

sitting in, ed lee is with us for the hour. we're going to get to ed in a minute to talk all things tech, but first, this morning's top stories. >> it is a shortened trading session on wall street today. the closing bell rings at 1:00 eastern time after a third day of rallies, averages on pace for the first positive week in three weeks. they suggest a lower open, but not by much. see how to goes to the close, and price of crude at this hour, flat wti, and higher by four citizen, and brent is lower by 24 cents, big moves higher in energy yesterday that contributed to the oil stocks rising, and, hence, the overall averages. this me? joe? oh, it keeps going. in corporate news, saudi prince leads group of investors buying 5 management of lyft. the ride hailing ride to uber tries to raise $1 million in a

funding round. he's not a stranger to tech companies. they own more than 5% of twitter. high end hotels reports its payment processing system was infected with malware to steal credit card data. they discovered the attack three weeks ago. they did not say whether the attackers succeeded in stealing credit card number or how long the network was infected. hyatt is the fourth major hotel operator to warn of a breach since october. looking for a white christmas this year? head west, south, and parts of the northeast, people are wearing shorts. southwest winds bring temperatures in the sixtiesixtid deadly twisters were in tennessee and mississippi, and severe storm warnings continue into today. >> aaa reportings for the first time ever, more than 100 million americans are expected to take a trip this holiday season, and close to 40 million travelers are doing it by plane. yesterday was a nightmare for thousands of passengers in the northeast. let's get a check now with the

ceo of flight aware, which offers a live tracking for flights around the world. it rained all day yesterday. is that what happened, dan? >> yeah, it did. you know, normally, when we almost set our watches by what mother nature does and gives an ice storm or snowstorm in the days before thanksgiving and christmas. not too bad this year, but no exception. we saw hundreds of flights cancelled, particularly in the new york city area which displaced a lot of folks. years past, it's not nearly as bad. that's the good news that we can consider as we think about are people going to get home or where they want to go for christmas? >> over 100 million, one in three americans will travel. this is not just on planes, but across the board. that's up 1.4% from last year, and oil's down 50%. i don't know what that says. i mean, why isn't it up more than that? it's so much cheaper. >> yeah. i mean, the way we see it is

say, well, there's really good weather this year, relatively speaking, like you talked aboutment look, it's warm this winter. there's not snow on the ground or ice. airlines are largely on time. it's one of the best winter seasons from perspective seen in years, and oil prices are at recent lows, and so this is a really terrific quarter and terrific year for airlines. you know, a lot of passengers in the heat of the moment flight cancellations due to weather are frustrated with the airline and unhappy and lose perspective that airlines are in business to operate planes and make money. when they cancel, they are not making money. when there's winter seasons, very few cancellations, and the next week, weather looms great combined with pricings. jet fuel price is at a record low for the past several years, and that's the airlines' number one expense. that is a terrific combination

for the airline, and at the end of the day, if you're a passenger and want hairs to make you money. you want lower fares, but you don't want a bankrupt airline. >> they don't spend it on peanuts, in fact, they spend peanuts on in-flight snacks. one more thing. deoptimizing the schedule for outback surface. >> yes. >> explain that. reduce widespread delays. normally, they go back and forth, and if there's bad weather, that's screwed up or something? >> well, what they did is -- as the airlines get larger and they is a bunch of hubs now, right, united and american have hubs all over the world. united realized rather than flying back and forth, for example, chicago to austin, chicago to austin, they realize they can have planes fly between the different hubs and optimize. for example, a plane goes from newark to dallas to houston to phoenix to san francisco to reno, and that made the fleet

really well unitized saving them money. the problem is when there's a bad weather situation, for example, there's snow in new york or ice in chicago, you can rest the situations where a guy who flies from san francisco to vegas gets a flight cancelled due to weather. what's going on? well, it was weather in newark. they said, look, we'll take that back. just keep it simple. fly back an forth between the hubs and the folks and minimize weather delays, great for travellers. >> okay. going back to back and forth because otherwise the entire country, like, we have great weather here, but not out west. you could be affected by weather out west flying between lant and chicago or something. makes no sense. >> exactly. keep it simple and on time. everyone's happy. >> keep it simple stupid. >> i left that to you. >> then it's like you're talking to me. >> okay. >> i just learned a lot. thank you. >> thank you. >> do you have anything? >> no. i was going to ask, can you explain, frg you said, have you seen the airline stocks this year? they are hammered.

i don't understand. oil prices are low, passengers up. >> a great run, though. >> awful, down 10%, i have zero understanding of why that's happening. telling us that the economy's going to be bad? i mean, we have a record number of people traveling this holiday season. a hundred million. >> the news of oil prices are low. >> exactly. right. back to reality. tough business. >> very tough. times are good now for them. i don't get it. >> all right. the major averages on a three-day winning streak into the day's holiday shortened trading week, and trading day today, in fact. the s&p and nasdaq now in the green for the year. we're so close that they could actually hinge on what happens today. the dow still in the red. dom chu here now with a look at stocks that are leading the charge this month. >> a nice graphic. >> sound and furry this year, dom.

signifying nothing. tale told by an idiot. take it away. >> that idiot is me at least for this morning right now. there's so many. you mentioned airline stocks, right? they are one of the misfit stocks out there in the trade this year. look at our snowman, one of the handful of times left this year to talk about misfit stocks, cast off by investors. we want to focus on some of the turn around stories that we've seen in december because a lot of stocks in the dow, s&p, and nasdaq 100, looking at large cap ones, have taken beatings this year like the airline stocks have, but they managed to turn around. that's the difference here. let's look, first of all, at one of them. procter & gamble. one of the worst performing stocks in the dow year to date, and we have seen, look at this, over the past month today period, just in the month of december, an almost 7% gain of shares of procter & gamble. put it in perspective. a nice december turn around, but down 13% this year. there's a nice pop here just at

the end of the year, perhaps some short covering, perhaps some fundamental devaluing buying. on the s&p, big gains, okay, for green mountain, however, that's a takeover story. leaving that aside. meanwhile, whole foods markets are up 18% just in the month of december, so, again, maybe devalue buying, short covering. however, if you take a look, 18% month to date, down 32% on a year to date basis. long term turn arounds in december. another one. in the nasdaq 100, whole foods, green mountain plays into the stories as well, but mattel, a real underperformer, but in december, up 11%, a big turn around for this member of the nasdaq 100, but look at this, still down 11% year to date. some of the turn around stories, andrew, are in place because as traders look for where pops are or could be at the end of the

year, they may be looking for beaten down stocks. we'll see if those things continue momentum to the upside for these particular beaten down names, andrew. >> dom -- >> i didn't do anything on this. >> you didn't? >> just combing through stocks, those down big making turn arounds. i just like running animations for misfit stocks. >> got to use it. got it, flaunt it. >> the snowman. >> are you back on? >> i'm -- well, maybe later on today. >> not with us? merry christmas. >> merry christmas. >> happy new year. a great new year. >> absolutely. i love you guys. >> love you too. >> oh. >> oh. kissy kiss. well, 2016 the year of rivalries? no kissy kissy here, a long time coming, amazon taking on ups, perhaps, for delivery dome nain, and google taking on facebook

for messaging. we have ed lee, editing manager of "re/code," but what is amazon doing here? a negotiating play against ups? >> they are not. i think pretty straightforward they want just to take over the world like a lot of tech companies for that matter, but their operating principle very much has been we want to control every aspect of the business including shipping and delivery because so much of e-commerce hinges on customers getting it when they want it, as soon as possible, used to going to the store, picking up the thing, and e-commerce, there's a necessary delay. the closer, the faster they get it to you, the better experience. >> they tell ups what? do this or -- >> i don't think it's not negotiateble. i think they are just, liking we're doing this, doing it better. that's it. we use you until we don't need you. >> becoming a shipping become? >> pretty much yes, but a

solutions for all kind of product delivery, period. whether it's service or product. >> people thought uber, for example, was going to be more than just a taxi company, but a delivery service for food and amazon or other retailers who were going to try to get the products. >> yeah. >> and i have not done by flu shot. we should do it on the air. >> dial up an uber to get the flu shot? is that the idea? not a bad idea. >> thought we would do it on another set. pager company with us. >> knelt pager, yes. >> not right now because i'm not ready for the flu shot thing, but, you know -- >> not feeling it now? >> not feeling it. hit the thing, see if they show up. >> i'm not letting an uber guy coming to set -- >> would come to the set, just stick me in the arm. >> the uber brings a

professional, that's the idea. >> that's the thing, when uber started, that's the concern. now people do it. >> have you ridden in a taxi? they are better than the guy in the taxi. >> no, no, no, no. >> yes, they are. we know who they are. >> is there evidence to amazon that they, at some point, over extend themselves into the logistics business, or do you think that's such a prime component of what their business is now, which is to say, you know, retailers said that we should do what we're good at, selling merchandise. we shouldn't be focused on the distribution elements of it. do you think it's so part of the dna now? >> they are so -- amazon is so knee-deep in the logistics, and, in fact, that's their real value proposition. that's what i think as what they see as their differentiator. a good example is more than 40% of the sales come from the market place, which not them

selling products, but others selling on their sites. amazon fulfills it. >> distributes for them. >> handles the shipping and returns. >> the capital costs, though, of logistics thus far, once you start getting into loading airplanes, the whole business changes materially. is that something that the investors have fully mapped out yet? >> no, they have not. guess what. there's not a lot of visibility in amazon's business to begin with. they have difficulty seeing all the departments. >> people asked the question since amazon started, books only, but now going into other stuff, oh, wait a minute, books are one thing, very simple, but other things outside the core competen competency. we question their ability forever, and every time, they do it. >> besos says, trust me, i got it. he sorts it out. he claims his big contribution to that is logistics, making the pieces run properly. >> so fantastic.

order it today and arrives tomorrow or two days later. >> sometimes an hour now. >> i know, i know. >> getting there. >> ed lee is sticking around with more to talk about. we'll do that with him. >> yes. coming up, the home stretch for retailers. new data on holiday shopping from adobe's digital index next. then there are movies other than "star wars" in theaters this weekend. new offerings from leonardo dicaprio and how they fair against "the force awakens," if you are still scrambling for gifts, think inside the box. ceo of box subscription service, birch box, joins us on set.

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a few hours remaining for the business shopping, so expecting a last minute rush to the stores. mary thompson now at a jcpenney at the mall in new york with that story. good morning, mary. >> reporter: good morning to you, andrew. you know, the international council of shopping centers say as of monday, a quarter of all americans had not finished christmas shopping, and 10% of adult americans have not started. this sets up the day before christmas to be one of the busiest ever in terms of shopping in recent history. >> i think overall we've had a

very warm christmas in the northeast and midwest, and i think people have been outside, and, perhaps, they need to finish their shopping and finish it tomorrow in the stores. >> reporter: now, the malls here open at 8:00, and jcp opened at 7:00 this morning. a number of retailers trying to cash in on the late shopping craze. kohl's open 24 hours a day since test 17th and closing tonight at zx. who procrastinates? those seeks discounts. only 5% of men and 3% of women wait until the last two weeks to start their christmas shopping. what do procreaastinators buy? home goods, accessories, clothing, or that in small, medium, and large, and digital gift cards get love too because they can be sent at the very, very last minute, but who are procrastinators' best friends? department stores and malls like this one because they offer convenience, variety, and, of

course, hopefully las minute discoudi discounts they look for under one roof. andrew, back to you. >> thank you, mary, merry christmas. >> reporter: merry christmas to you and joe and michelle there too. >> yes. i don't know. is it in the mail? >> merry christmas, joe. >> i have to do late minute stuff. i don't have anything for you either. did you make a list? i mean, do you -- what -- >> reporter: i do. >> what do you need? >> reporter: i did a little shopping. >> what do you need? what do you want as a gift? i have not -- i've procrastinated again. you know, i, obviously, don't have anything for me. >> reporter: oh, but joe, you have everything you need, right? what could a man like you want? >> for the man who has everything. >> are you shopping on the job? >> reporter: a man who has everything. >> mary, were you shopping on the job? >> reporter: was i shopping on --

>> on the job? did you shop on the job here? the bosses are watching. >> reporter: yeah, no. maybe. maybe. >> that's a yes. >> in between hits there's last minute shopping to be done. >> uh-huh. >> reporter: certainly a starbucks run. but, yeah, maybe in between pits there's a couple things picked up here and there. >> you know what? i know what to get you. i have everything. i don't have a place in bachelor gulch, but i'll get you maybe -- oh, you don't either? oh, okay. maybe i'll get you ski wear or something. how would that be? >> reporter: i don't have a place there either, joe. >> all right. okay. your story. you're sticking to it. >> reporter: a joke between joe and i. >> she's going to get you something in between. >> oh, good. i'm going to hear from her. attention procrastinators, time is up for online holiday shopping. of course you could still go into the store, but with digital sales projected to rise more

than 11% this year, and retail foot traffic way down, more people are expected to have done their shopping from the comfort of their home as online sales growth continues to outpace brick and mortar. joining us more on the online shopping trends is our research analyst at adobe digital index. >> good morning. >> how much more are people shopping online compared to last year? >> growth this year, we projected to be 11%. we're tracking at 10.47%. our predictive model was very accurate. we're basing that on over a trillion website transactions that we're measuring through the adobe marketing cloud. it's bowe 4500 retailers aggregated. >> dollar volume, right? >> dollar volume, correct. >> this comes at the same time we see foot traffic and stores, brick and mortar stores seeing

big declines year over year compared to the past. i mean, is this the year that really marks -- seen it coming for a long time, the shift has really happened. >> i think so. i think we're going to look back on the 2015 christmas season and say this is the year that the digital, you know, shopping really started taking offer. obviously, though, we're still quite a bit smaller than what's going on in store at 83.3 billion dollars for the two months. that represents about one in five dollars spent online for the entire season, and it's still growing as tremendous rates. in fact, thanksgiving grew at 25% year over year. the whole season is really majorly growing compared to what's going on in store, and that's coming because of mobile shopping mainly. >> yeah. i was going to look. i saw the numbers, mobile remittremit represented 25%. that's all sales? >> that was digital sales. we had a high on thanksgiving

day of 29% digital sales, but actually in terms of shopping visits, thanksgiving day brought in 57% share of browsing via mobile devices, those smart phones, big screen smart phones, and we'll see that again today and tomorrow. these are very big mobile shopping days. we actually were a little under projecting on thanksgiving day because we did not -- we did not count for all the mobile shopping. i think that today and tomorrow will be much bigger online shopping days than we're estimating at 600 million for christmas day. >> i was wondering about the differential between browsing on mobile versus buying on mobile? there's a lot of browsing, but not necessarily finishing transactions, right? what accounts for that? less likely to buy on the phone although they shop on the phone? >> yeah. actually, we did another analysis a bit ago, and we were ail to look at all of the best retailers in our sample, and determine that even the very, very best retailers do the most to do mobile shopping make it

easy. we're only able to get 50% of the amount of revenue from a mobile visit that they got from a desk top visit. that's all, you know, a bit of a challenge because those mobile phones are smaller and harder to shop from. about a third of the people that we asked said that they would do more mobile shopping if it's easier, so we're looking for more apple pay to be enabled and things like that going into next year to get that mobile shopping number up. >> that's right. still, shopping in stores is much bigger than online, but the shift this year so dramatic, retailers really are scrambling this year in a way never before. that shift is enough to really impact them. look at the stocks. >> because the retailers themselves decided to be online, make it easier for them, but looking at that last set about mobile, like, browsing versus buying, in terms of apps and how that works, there's a long way to go there. >> yeah. >> thanks so much. >> thanks for having me. >> great. okay, coming up, new york loss is minnesota's gain.

bad news for the giants. details straight ahead. as we break, though, take a look at the top performing s&p sectors year to date. back in a moment. my language skills, i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do.

♪ welcome back to "squawk box." stories front and center this hour, more bad news for pharmaceuticals, company's former ceo arrested last week on securities fraud charges, now, though, the nasdaq says it's delisting the stock. they cited criminal indictment in the civil complaint by the sec and failure to file a quarterly report for the period ending in september. shkreli named ceo on november 209 after buying 70% of the

shares. and silicon valley's secretive company, raising $880 million in the latest financing round bringing valuation above $20 billion, the fourth highest valued tech. this is a data analyst and security company that helps government agencies track down terrorists and uncover financial fraud. unfortunatelily, that's become a very good business. markets in focus on the short trading day year to date. the s&p now fractionally higher. the nasdaq up almost 7%, but the dow down off about 1%. you can see it right there. u.s. equity futures at this hour. we are showing you green and red, but, really, it ends in red. unfortunately, dow looks like it's opening down about 18.5%. illinois banning fans playing on fan dual and draft kings. the state attorney's general

said it constitutes gambling. what's the matter? what did i say? nevada? >> nevada. >> nevada. >> nevada. >> now i'm confused. >> new york's attorney general ordered them to stop accepting bets in november, but it was reversed until next month when a panel of judges make the ruling. >> nevada. >> nevada. >> he's incapable of saying nevada. >> i find it very tough too. >> all right. >> nevada. >> it's like aunt. if you say nevada, you feel like a hick. it's not nevada. it's nevada. look it up. google it. >> discussion forum? >> people in nevada get very upset if you don't pronounce the state. call it illinois if you feel like it. anyway, the new york giants have to do without star receiver beck ham, jr. sunday night playing the vikings. he appealed that one game

suspension, but it was upheld by the nfl, and he's finally looking like he's a little bit sorry at this point. flagged three times for personal fouls in sunday's loss against the panthers incoming a helmet on helmet hit on the second-degree ver stair for that day, and norman retaliated, flagged for unnecessary roughness, fined $26,000. you can't really defend odell, but, i mean, he meteoric rise, most talked about player in the nfl with the catches made. he's, like, the whole team. that's why no one said anything to him. they acted like they didn't see what he was doing. tough when you get, you know, you get that -- >> winners get away with a lot. >> exactly. believe it or not, there's movies other than star wars at the theater this holiday weekend. a new offering from quinton, and

leonardo dicaprio. what did he do with the bear? he said it was sensual. >> i know. >> overshadowed by "the force awakens", and we talk about it next. look at u.s. equity futures as we head to break. complete visibility into your business, it can quickly become the only thing you think about. that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most.

"star wars: the force awakens," continues to dominate the box office already grossing $700 million. $700 million worldwide and it's not opened in china yet. those who already saw it or have no interest, we have a look at the other movies at the theater on this long weekend. the managing editor at box office media, and alysha is a correspondent with fandango hi to both of you, happy holidays, merry christmas, and i think of the airplane line, wrong day to stop sniffing glue. they picked the wrong day to release. is there a theater to get into?

>> i think they can. you'll find a lot of show times. large amount of people went to see "star wars" last weekend and large amount return this weekend as well, but for fans looking forward to different films, we have six new releases this weekend opening in theaters across the nation. >> which ones are popular? my wife wants to see "joy," what? how can i -- >> that's what my wife wants to see. >> it's bradlrgsey cooper and it "silver linings playbook," how can you do that? >> liked one, like the next one. that's the idea. >> is robert deniro crazy? >> kind of. that's part of it. >> typecast. can you do that? whose idea was it to have three of the same people and different characters? >> they love to work with the same people, and this is the story of a miracle mob, creator

of the american member, but put j-law in that, entertaining come day drama, and you have concussion starring will smith, and the remnant starring leonardo dicaprio. interesting it's the last weekend for films who want to qualify for the academy awards. they have to fight for a way between the start and end of the year. this is the final run for award season movies in l.a. >> give us a review of the movies. which we have to see. >> joy? miracle? >> where are you on the remnant? hateful eight with mixed revi reviews. >> it's long. it's for the fans. i enjoyed it because i love these kind of movies. the remnant is unlike anything seen on the big screen. these two films were just linked

to pirating sites through dvd screeners sent out to award season, guilds, and critics, so that might hurt. >> what do you mean about revenue? the gorge is like nothing seen? i guess -- >> was that a polite way of saying you like it or not like it? he sleeps in a horses intesti s intestines, right? >> spoiler alert. yes, he does. i love this movie, not just because of the gore and the violence, but the cinemaing to my, the way this film was shot, does not sound exciting to talk about, but trust me, while in there, watching it on the big screen, i was just, like, that, the whole time, mouth open. >> yeah. i want to see that. >> i don't know if you saw, but the vatican gave a terrible review to "star wars," daniel, seeing the evil characters are not evil enough. i'm sure that's cutting into sales, right? people will not go because of the vatican's newspaper says

it's not so good? >> i'm not sure if they are included in the rotten tomatoes' rankings, but i'll check if they have a voice in that, yeah. >> what do you think? you agree with the vatican or disagree? >> hey, it's a fun movie for fans and fans in general. a great opportunity for people who have not gone to the movie theaters in a while to go back to the theaters, remembering the thrill and excitement of seeing something on the big screen. the films you mentioned, these are big screen epics and a great opportunity for people to come back this weekend. >> hey, one film that's not mentioned so far is "the big short," and do you think it's going to be crowded out by all the other films? obviously, a business network, i would have thought maybe it would have gained more traction given that there's a lot of big stars, brad pitt and others, but i don't hear about it. i don't hear a lot about it. >> people know the ending already. >> big short is a short. >> you want to see hollywood's take on the financial crisis?

haven't we seen hollywood's take on "too big to fail," we had the hollywood stake. we had the hollywood stake. >> i enjoyed the film. i enjoyed the film. daniel? alicia? >> staggered release, coming out in a couple theaters last weekend and continues to expand as the weeks go on. you know, let these films pick up a little bit of steam. let's not forget what happened with "american sniper" last year, opening in a couple screens first and built up momentum slowly before becoming a huge block buster hit. >> that was not about shorting the mortgage industry. [ laughter ] >> i don't know. sorry. >> right. >> they have to be bigger now. >> it's a tv -- >> yeah. >> it's a network. >> i want to see peril. >> joy, though. >> i don't know what it's about. >> okay. >> vatican issued a review on this. >> think about who they battle.

>> the vatican? >> evil. >> satan. >> yeah. anybody falls short. >> that's true. >> director of "joy" a hard time for using the same actors, but your favorite movie, christopher guest, your favorite -- >> i do. >> he uses the same actors over and over in three films. >> that's an okay ensemble? >> yes. >> this one? >> no. >> okay. coming up, if you're looking for gift ideas, we have you covered. box a month subscriptions are gifts that last throughout the year. the ceo of a company called birch box joins us next.

you can rejoice. there's a category of gifts to have in time, and it mails itself. it -- we should say, can't get it in time, but sort of. beauty, clothing, food, the doorstop convenience surging in popularity, else in the holidays. joining us now is catia, the ceo and cofounder of birch box. did i get that right on the pronoununciatio

pronunciation? a subscription cosmetics company. >> i love that. >> yes. >> you've been with us before, and we have seen your boxes, but what's fascinating to me about the business, which i don't think we properly articulated on the show is i always thought that birch box business was the boxes themselves. >> right. >> actually, it's very different. that's actually the way to get the customer because people want to sample stuff, and the real business is people who decide, you know, i love this product so much, i'm going to buy it through you. >> absolutely. what we realized is beauty is underpenetrated online for shopping because people want to touch and try products before they buy it. what we decided was that we were going to build a new beauty e-commerce company giving companies the potential of meeting new customers on line. it was not just about replenishment, but you discover in boxes personalized for you,

$10 for women, $20 for men with the idea you find products you love and purchase them through birch box. the fastest growing part of the business, by far, buying full sized products. i love this, and i'm buying a big one. >> i was going to ask, the men twice as much? usually men is cheaper. >> right. we reverse things. well, actually, what we decided with men's when we launched, we wanted something for men to talk about and share. it's not just grooming products, but lifestyle products. it's about the value in men's. sometimes you get a new pair of underwear or headphones, tech accessories. the men's box has grooming and lifestyle accessories. >> do you make money on boxes themselves or money on selling full sized product? >> both. two revenue streams are significant. boxes were the most simple thing in a very new thing for consumers to understand in 2010. it absolutely grew so quickly, but, of course, for us, we're focus the on how do we get the customer to choose birch box as the destination place to shop

for beauty and grooming? >> what happens if you buy the box, subscribe to the box, love what's in it, and then you decide you go to sephora? >> happens all the time. an article shows how significant birch box is growing the beauty market and others benefit from it, which is why we think about brick and mortar in a meaningful way. >> okay, i liked this, this is a revenue sharing agreement? how? how do you monetizing that? >> full retail. we purchase product, have a predictable way of thinking about inventory because we know we sent a product like this out to consumers before. we send 100,000 out, we know the conversi conversion, and we know the product. >> conversion generally? >> lookout 50% of the subscribers are shopping at birch box for the full size. >> the fact there are subscribers, they are likely to buy from you because they bought into you. >> raised their hand and said, i want to discover, i want to change my routine, and that's what women tell us. they have been using the same

products for 10-20 years because they don't want to walk and experience overwhelming choices, and we open their minds. >> you walk in, you probably feel it more. you walk into a department store, the beauty section almost always the first place, you're surrounded by people who want to spray you. it feels like a carnival barker experience, at the high end places, spray perfume at you. come this way. >> if you love beauty, that's a play land, but we found majority of women just want to be beautiful, and that is not their play land. they actually just want it to be easy, but they still deserve the best product. that's the thesis. we are building the beauty company for the beauty majority, and we are making it delightful to discover and shop. >> what percentage is gifting business? their wife, husband, what have you. >> insane for us for gifting. people like giving the subscription because it's the gift that keeps on giving, and, you know, for 30, 60, give

someone a recuring gift, and people love it. >> premium to the box? >> no. these are just a monthly, you know, getting somebody three, six, or 12. >> sell more women's than men's? >> yes. we started with women, but we were surprised to see of all the under served consumers, men are the most underserved and so interested in a push way of getting better. it's much more women still today. >> 90/10? >> yes. very much a women's business, but fastest growing category of the business is men's as well. >> specific items in the men's box that sell in terms of full size they buy into afterwards? >> the first thing we see success with is men trading up in something they are already comfortable buying like a shave category. really, showing men that you might need, like, a different soap for hair, face, body. >> right. >> that is, like, next level, and exfoliators, we find -- >> that's next level.

>> exfoliaters? >> it's a new horizon. women have for a long time, but men say it feels good. >> they need it more. >> your skin is beautiful. >> thank you. thank you so much. happy holidays. appreciate you coming in. >> can we get this in time? what do you do? >> right now, subscribe, get a beautiful gift card to gift to somebody, wrap it, put it under the tree, get three, six, and 12 months, and 12 months are 20% off through christmas. >> great job. >> thank you. >> happy holidays. more from ed lee, asking about the discount pricing strategy for the apple watch. "squawk box" will be right back.

to boost sales of the apple watch this season, retailers have been offering discounts. how does the strategy work? what does it take to be stronger in 2016? our guest ode is "re/code" managing editor, ed lee. what's your assessment of the apple watch this year? >> little visibility in actual sales. i mean, of course, we think if it were really successful, apple would let the world know just how many watches sold. clearly, it's been sold, so discounts, right? >> when we saw the other category -- >> yes, the other. always like the most looked at line item, the earns. >> any other company launches a product, sells several billion dollars worth, it's a success, but for apple, blah. >> a lot of other categories includes the app store stuff,

media sales, and so it is lumpy, hard to really, really see what is one thing versus another. >> you have apple watch. >> i like it. >> all you've told me is it tells you when to stand up. >> no. it also -- >> what else does it do? >> i used to wear a polar around my waist when i worked out. >> a what? >> p-o-l-a-r. measures your weight. wearing those things is tougher for women than men, okay? >> speak for yourself. >> for people like you interested in fitness and have, like, fit bits, those device, this is doing well. that's a segment. it's not -- they don't feel essential yet in the way the iphone does. >> taking market share from fit bit? feels like it is. >> it is, but that's still an expensive, you know, replacement, right? >> maybe they know how to make a watch that looks good too. instead of, you know, there's

going to be -- >> criticisms, right, like, some, you know, looks ugly or -- >> it's not ugly. it's ugly? it's a watch. >> for watches for a lot of people, it's jewelry. so if it's not up to standard, they don't want to pay $600 for it. >> it's a band. >> super expensive one. >> you were great this hour. appreciate it. thank you for the time. >> thank you. >> merry christmas. >> you laugh at my joke, and you're leaving now? you understand my cultural references. can you read tell prompters? [ laughter ]

making a list, checking it twice. a rough holiday season so far, and now the nation's retailers prepare for the final shopping rush. new this morning, the saudi prince gets a lyft, buying a major stake in a ride hailing alternative to uber. >> illinois becomes the latest state to ban residents from playing sports sites, fan dual, and draft king. the final hour of "squawk box" begins right now. ♪

live from the most powerful city in the world, new york, this is "squawk box." welcome back to "squawk box" right here on cnbc, first in business worldwide. becky's got the day off. we're nowle less than 90 minute from the opening bell on wall street. it's a shortened session, closing bell rings at 1:00 eastern time. we're opening down, dow down 22 points, and nasdaq off four points, and s&p 500 off two points. oil trading at 37, moving up marginally. bears thought we'd hit the 20s before the year's out. they could be wrong. we'll see. beijing is tightening an area as citizens are to be on bard against threats against westerners, american, british, and french agencies received information possible threats on

or around christmas day. we'll be careful. there's other stories investors are talking about. a check on the labor market this morning with weekly jobless claims in a half hour from now. filings for unemployment are expected to hold steady at 270,000. claims in below 300,000 for 42 straight weeks. asian markets mixed overnight, dragged down by losses in china, issue related to insurance companies, which is why you saw shanghai lower by two-thirds percent. in europe, germany is closed for the christmas holiday, and trading is light in the other markets, which we can show you right now. italy's higher by more than 1%, but the rest are generally flat. >> in corporate news today, saudi prince, his investment firm leads a group of investors buying more than 5% of lyft, paying $248 million. they are trying to raise up to

$1 billion in the latest funding round. in other tech news, data analytics, and security company, palantir technologies raises another $880 million in the latest financing round bringing the company's valuation above $20 billion, making it the fourth highest valued tech unicorn in the world. that's peter teil, right, andrew? >> that is peter. one of the founderings of the company. >> and he's a huge jrr man, "lord of the rings" fan, and remember they had the talent here, and i don't know if you saw and remember mary or pippin, one of the two hobbits, you know, grabbed it, looked into it, and almost died, like, in a coma. >> only thing i remember about peter is when he came to visit us. >> talking about. palentir, never read "life-support of the rings"? >> i never did.

>> i think he's a libertarian. hard core libertarian, love that, huge chess fan. >> loves legal monopolies, which who doesn't. >> who wouldn't? >> outlining that. i forget. i don't know. great book, though. >> he wrote a great book, escaping me now, unfortunately. >> we need to have him back on this set. big libertarian, andrew. >> i know you don't like that. >> 0-1. >> 0-1. >> totally didn't -- >> no, no. welcome to my world. >> i know. >> hyatt hotels attacked with payment card stealing malware, discovering the breach three weeks ago. they are not saying if any card numbers were stolen, but encourages customers to review statements closely. ? the fourth major hotel operator to warn of a cyber attack since october. >> thank you. stocks riding a three-day

winning streak. does not feel great, though, in the final day of the week, s&p is now positive for the year. i mean, people are just taking that to the bank. up almost a quarter of a percent, which is similar to what you can get in the bond market now too, right? if it's short term money. >> yeah. >> so for a year, invest a thousand dollars, what is that? you get $25? is that right? >> something like that, yeah. >> those numbers are hard. it's almost nothing. >> it is. >> i don't think it's $25. >> no. i think it's 2.50. >> yeah. it's not even close to $25. >> you're right. unbeliev unbelievable. the dow lagging over 1%. joining us now, jeremy seigel, predicts the dow hits 19,5, and,

jeremy, if we go back a year and explain to you the market did well until oil went down 50%, i don't know if you would have been able to connect the dots to why that would be negative. it's been weird. you thought the market would be better this year? a big tax cut from oil should have made it do better than better? >> right. and the reason is that the s&p 500 is not the same as the u.s. economy. the u.s. economy is 70% in services. s&p 500 is about 70-80% manufactu manufacturing. energy was a very big component. the suppliers to the energy sector are very big material, transportation, and they got hit really badly. earnings decline, a 10% earnings decline this year. that's hobbled the averages.

actually, not doing badly to be even on a year when earnings are actually down. >> yeah. it's weird. you predicted philadelphia takes pittsburgh title away for title town too for nba, nfl, hockey, and did you predict that? >> well -- >> i hope you were short philadelphia sports teams. i mean, make a million on that. let me get to the another story. i didn't want to rub that in, jeremy, sorry. >> flyers are not doing badly. one team that's not doing badly. >> 76ers. >> i don't know. one victory. >> 30 losses. yeah. so, ed, next year. can we expect better? >> next year? i don't think so. >> you don't think so? not for the philadelphia team? >> not by much. you used the term "dirt sandwich" to describe market returns last time i was on. i thought that was clever. >> did i? >> yes. you know, unfortunately, i think

it's going to be deja vu all over again. >> looked like dirt. >> and i use that term to yogi, a great american, who passed away a couple months ago. we think the market is going to struggle to gain traction again in 2016, 3-5% return for the s&p 500, and it's because earnings are a challenge, and we got no earnings growth at all, and we think that's only going to improve on the margin. two things bite earnings this year. oil, which you talked about, and the dollar. we think the dollar is likely to be a head wind going forward, and we can't say with real confidence oil bottomed. there are scenarios where oil goes to 20 if iranian production is more than people expect, and if storage capacity fills up. that's not what we are expecting, but it is a risk factor.

>> jeremy, you have not changed your long term bullish thesis, and the reason i'm starting with that is because there are some people that think, you know, now that the fed is headed the other way, that a lot of the rise in all different asset classes was because of all the cheap money, and some people think everything is overvalued, and now from the other side of that inflection point that maybe there's some days of reckoning ahead of us, still, for the stock market. you think that the fed was actually successful in generating a better economy? i mean, you buy into it? >> well, i have been a supporter of the fed, and i think they led the u.s. economy to, by far, the best recovery among all the developed countries in the world. now, are we on the other side? i actually think that we're not going to get four increases next year. i think we're going to get two and three. i don't think we're going to get interest rates that can go all

the way back to, you know, the precrisis level. i think we're going to stay at low interest rates, and that's why i think that valuations can stay on the high side. i think we can see 18 to 20 pe ratios on the s&p 500. that's where we are today. that's why with -- i see a 10% increase in earnings, not a little bit more, and that's why i think we can get a 10% rise at the s&p. i think we are going to be over the next three, four, five, ten years in a much lower growth interest rate environment, and that means that valuations of everything, not only stocks, not only bonds, even real estate is going to tend to be on the higher side. >> really? >> so i think that's one of the things we're looking forward to. >> that's good. if the world doesn't end or get

too hot or something. ed, you're like a grinch. >> no, i'm not a grinch. i agree with jeremy on the interest rate outlook. i don't think the fed is going to be an aggressive tightening cycle, and if the dollar is probably going to do the tightening for them. we're not bearish. we don't think equities are going to have a day of reckoning in 2016, but i think it's likely to be a pretty unrewarding year for investing in u.s. stocks. that said, there's better returns to be had overseas. we go with japan and europe. we've stayed away from emerging markets. if you want to look at an asset class priced for good returns next year, i would go with u.s. high yield bonds which i think will outperform stocks over the next two years. >> wow. okay. scary part. first guest on the show said a very scary part of the market right now. >> it is, but you're compensated at this point for the risks you take. >> delicious, right? you get 7%, 8%? >> that's right, michelle. very delicious yields. >> if you get paid. >> i would be fishing in the

noncommodity portion of the high yield sector. i think the expectations for defaults there are higher than we think is likely to happen. >> i know. all right, thank you. >> thank you, jeremy. >> thank you. >> villanova. villanova. >> basketball? >> that's it. >> okay. that's all they got? still to come, a check on the fate of your holiday package. everything that get shipped make it to the final destination? plus, headed home for the holidays? the latest on the happenings of millions of airline travelers today, and later on the show, the details on a gift card that pays a real dividend this holiday season. startup stockpile wants to create a new generation of investors. that's ahead when "squawk box" returns.

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as 2015 closes, we break out the 2016 playbook looking at ways to make money in the new year. today, jane wells has a look at what's next in the food industry. ♪ >> reporter: food, glorious

food, faresh, funky. here's trends to watch for. first, delicious deliveries. it's not just pizza anymore, but all kinds of restaurants. in 2016, they predict choices expand faster than your burrito belly, and there's post mate, and companies like spoonrocket make their own fast food to deliver, and if you want to cook, you can. foodbusiness.net predicts more from blue apron. second, out of africa. the national restaurant association is told customers have to expect more african flavors on the menu this year and ethnic condiments as america searches for the next sriracha. consumers demand more fresh locally sourced food, so expect chains that promote additive free, non-gmo ingredients to pay more to keep the food supply

free of pathogens. that's not all. fast food wages rise passed on to consumers means the price of the cup cakes you ordered for delivery leaves you a little frosted. >> thank you for that. time for a little bit of shipping news. are all the holiday gifts going to make it on time? morgan brennan is tracking the details. >> ship matrix estimates $50 million delivered today with a few thousand missing mountain window, better than 2013 when 2.5 million were delayed. both ups and fedex logged stronger on-time delivery performances. >> last week, fedex was at 97.2 for all services, ups at 96.9, and the weather being very

cooperative, they bought both at 99% for their services. >> weather turned uncooperative in the south where severe storms could affect last minute deliveries. both companies, ups and fedex watching that. as of this morning, the network is running 90% on time, accommodating customer requests for additional volume, and there's scattered reports of retailers having problems as well, eddie bauer say some may be delayed. merry christmas to you, family, and viewers watching today. back to you. >> you too, morgan, thanks so much. she'll have a great next year. >> she is. >> yep. the clock's ticking for you to finish shopping, christmas shopping, so here with the final take 2015 and predictions for the new year is dana, chief research officer. great to have you here.

>> thank you for having me. happy holidays. >> generally, we ask, are sales up compared to last year? looking at the foot traffic in the malls and stores versus the sharp rise in online, is this the year that the story is, wow, the shift happened in a dramatic way? people going from bricks and mortar to online. >> i think overall, the narrative about stores going away, they are not going away. 90% of the business is done in stores, traffic is down, conversion is up. they make few eer trips to the mall, spending more when they do go, and 60% of the consumers researched what to buy before they go there. they are smarter about buying. >> 90% in the brick stores, but the change is dramatic enough, retailers are scrambling in a way they did not before, no? >> working harder on it. look at investment. investment in technology to manage online is there. it can be 40% of cap x sending. that's not going away. it's not one and done. >> what's more efficient for a brick store, beefing up online

presence or hiring employees? what's the better return on money? >> both. one of the things that's happening, if you're doing clip and collect, pick up in store, you need employees there to be able to get the goods. >> and quickly. >> yes. there's a 20-25% attachment rate. in the store, people will buy more. this morning, you get e-gift cards. if you're late. that's the way to get goods too. gift cards, overall, very popular. 70% of all gift cards redeemed in the month of january, and this is the yearing given how warm it is outside, it's not good for apparel sales. it's the stock up year, stock up on coats, winter items. >> deeply discounted? >> totally. >> already began. >> they have. good discounts now, when it's 70 degrees here today, 60 tomorrow, retailers move that. >> i have to go shopping now. the cheapskate that i am. >> how good are the sales? what does that say about the

american economy? >> it's apparel that's weak. other categories are doing well whether it's technology upgrades, whether it's the home that's doing well. look, you just had birch box on, cosmetics is a home run. look at active with nike having futures orders up 20%. economy's okay. are there signs to watch the consumer carefully? yes. they are spending on other things. it's about experiences. it's about travel. it's about lodging. >> so the losers are? >> we're having a tough time in the department store area. it's been a challenge. >> no -- are any of the stocks a buy because they are so beat p up? >> i mean, you're going to look at names, people look at macy's because of the value. they are look ag the nordstrom because of technology in place blending off price in bricks and mortar and online. jcp and coomkohl's with the bet season. >> all right. thank you for coming in. >> thank you for having me. >> merry christmas. >> happy holidays. >> see you next year.

>> the millennials. >> it's all the millennials. they shop differently. >> what do they want to experience? >> other methamphetamipeople an connected. >> memories cannot be eaten. >> look how many facebook friends they have. >> oh, god. breaking economic data, new snapshot on the nation's employment picture. first as we head to break, the worst performing s&p sectors year to date.

♪ we know you are dying to know why santa is right now. >> is he everywhere, really? >> but, today, he has to physically get presents to different places, joe. >> yeah. >> the aerospace defense command says he's on the move, norad continuing the 60 long year tradition tracking the guy in red as he treks across the world to bring gifts to girls and boys. you know, i saw a video from the north pole, loading up the sleigh and reindeer were busy.

looks to be in very good form. >> so now he has a plane that flies in front of him? >> no, no, that was a plane to show he was flying in the air. >> oh. >> did it say where he was? did you mention it? >> i have not looked. >> okay. >> i can go look. >> he knows his way around. >> yes. it's the world. it's nighttime. >> cousin eddie, you serious? anyway. >> tracking santa. coming up, breaking economic numbers, weekly jobless claims. >> in australia. >> weekly jobless claims, data minutes away. yeah. clark griswald, really, clark? millions on the roads, holiday travel updates straight ahead. as we head for break, take a look at u.s. equity futures. now negative.

we're just seconds away from jobless claims data. futures are now negative, but not by much.

if we're going to have a positive day, the yield on the ten year note is moving higher. some data might happen. 2.26. rick santelli standing by now at the cme at my beloved midwest where people are still people. rick? >> 267,000 on initial job leles claims down 5,000 from slightly revised a week ago, recently released at 271,000. you know, to put a little perspective on this. the low water mark, considered the high water mark, lowest initial jobless claims this year was the week of the 17th of july, 255,000, and that comps all the way back up into the 70s for a lower level. continuing claims weak in the rears, and that is down from 2.24. there's been a little volatility

in continuing claims. you know, this is an area good news to investors on the low side, but it's not brought good luck in tweaking your strategy. likely the next big market moving issue, should it occur in claims, is when they move higher or further historically, i just don't see it making a big difference. joe's exactly right. rates have crept up. they are creeping up a little bit more in the short end so there's a whiff of curve flattening. the dynamic of stock markets not only righting themselves from volatility pre, during, and slightly after the fed, that's giving a little bit more of a horsepowered kick to the light, light amount of selling that's in treasuries that might have been used as a hedge during those periods of volatility. we want to continue to monitor, especially what you've been talking about with various guests in the high yield/junk market. it's taken a holiday from its nervousness, but a lot of

markets are acting a limit different closing out 2015. back to you, and merry christmas, happy holidays to everybody. >> same to you, rick. what would -- let's say i give you one piece of information, that the ten year is close to 2% at the end of 2016. what would that mean to you? what would that -- what kind of world would we be in in. >> well, i think we'd be in a normal, that used to be referred to as the new normal, many of our guests have talked about the flat profits this year -- not profits, excuse me, but flat multiples and the fact that stocks just seem to be running out of gas in terms of delivering more in the investors' wallets, and i think that's what we have to get used to. >> i mean -- >> we recalibrated. >> thing is, supposedly, the fed is raising short term rates three or four times, but would you be absolutely shocked if we were somewhere around 2% a year from now? >> no, no. i think -- >> that's what i mean.

>> from my van teenatage point, flattening, maybe at some appointment, inversions, meaning the fed has its mission to ratchet the short end or nail it to the wall for potential for increases, but the long end of the curve pays attention to growth, a lot of attention to the types of returns seen in stocks, and i think it's going to be pressured. what we don't know, joe, is how much of this recalibration may affect the long end, but, ultimately, i think you're right, i don't know if it's 2%, 2.5%, but based on history, we all kind of lost sight of the macro picture of the real history of rates, and i think -- >> rick? >> yeah? >> if it really is obamacare, over regulation, anti-business rhetoric, if it is, there's no reason to think this next year's going to be any different than a 2% yield we've had, unless it was not that, and it was just recovery from the financial crisis, and it's slowly, we get

back up above stall speed and reach liftoff for 2016. somebody's going to eventually think maybe that question will someday be settled. >> well, i just did a piece on that yesterday. i do think that as much as politics has change everything we talk about after the crisis, everything's politicized, if you criticize the fed, it's politicized no matter what it is, but i think investors step back from that and monitor how it looks for the candidates, because, yes, i firmly believe all issues you said are extra saddle bags on the economy, and i do think that we could have administrations and future people in congress that may be able to remove some of those saddle bags, our self-inflicted wounds, in which case, you know, long rates would be very responsive to that notion, and that would be a good thing. listen, in the old days, rates moving up was a good thing. it is not necessarily a good thing anymore because it's out of kilter with the under

pinnings of the economy. >> yep. all right. thank you, rickster. >> thank you. >> talking more about the conversation, the forecast for the economy in the new year now with gus, cnp senior economist. gus, good to see you. talk about the ten-year yield. the conversation, i'm sure you just heard, what do you think? get through 2016, the ten-year budging at all beyond the 2.2% we talked about for so long? >> yeah, i think we're up to 2.5 or 2.6% next year. higher inflation expectations with the impact of lower energy prices fading from the data and stronger dollar, and i think, you know, also, the fed raises rates three or four times next year, pushing up yields at the long end as well. wooec we'll see long term yields. >> you think the fed raising rates at the short end, they control a tiny rate, whenever we

talk about this, and the long en, ten years out, barely budges despite conversations we have. you think there is a ripple effect down all the way to, you know, mortgage rate, et cetera? >> yes. definitely. i think we are going to see the curve flatten. i think the long end is not going to go up as much as the short end, but i think between the rate increases are going to see next year, and, also, higher expected inflation. i think that'll also push up the long end as well. we will see long term rates rising. >> your sense -- estimate for gdp growth for next year? >> we're about 2.4% next year, similar to what we saw in 2015, should be enough for cometed strong job growth and reduction in the unemployment rate, so i think we'll be close to full employment by the middle of next year, good news for wage growth and stronger wage growth, and that'll support consumer spending as well. >> all right, we're having audio trouble so thank you so much for joining us. appreciate it.

>> is it? are you french? >> yes. >> i want to be french and say i'm really cool. >> that's right. foucher? >> foshay. >> you're so good with spanish. >> yes, because i speak spanish, not french. >> i was trying to do -- but before i was trying to call -- >> and it was in there. if they spelled it f-o-s-h-a-y, she would have got it right. >> if you're just tuning in, i mispronounced caleb and nevada. >> other things going on -- >> thank you. >> thank you. >> aaa reporting for the first time ever that more than hundred million americans are expected to take a trip this holiday season, and 6 million travelers are doing that by plane. yesterday, a nightmare for thousands of passengers in the

northeast, and hampton pierce is live at reagan international. hampton? >> reporter: hi, andrew, yeah, specifically that translated by mid afternoon yesterday to something like 2600 delays and 230 cancellations. while it is early here on christmas eve and the most updated stats from the planes of flig flightaware.com, 300-plus delays so far, 11 cancellations, and that's, again, looking at a universe of on average about 21,000 daily flights, so, again, early, so far, so good, relatively speaking. seeing a few flights delayed to the midwest from reagan national, last i checked the board a few moments ago. really, if you think about those numbers, though, a far cry from the winter of -- christmas of 2012 with something like 4300 cancellations alone because we had the back-to-back horrendous

winter snowstorms. now, all in all, in truth, the weather, the mild winter, and low gasoline prices to that degree have ended up being the best of both worlds for both the airlines and air travelers. we'll be continuing to monitor the stats throughout the day. during the two and a half week period, that 6 million plus individuals translates into more than 30 million airline passengers on planes in and out of airports, so, again, nice soft opening to christmas eve here at reagan national. back to you. >> okay. hampton, thank you for that. i should say, i little bit of a mea culpa for you right now i don't know if you watched the bottom of the screen. >> wait for after new year's eve. >> we said the airline prices came down 6%. i don't know if you watched the screen. >> it is true? >> it is true. >> okay. >> i made the argument earlier in the year, talking about airline prices --

>> repeatedly. >> that prices had not come down, and they have now margi l marginally. >> not -- you want -- oil prices 50%, you want prices like down 50%. >> no, 6%. >> yeah, you do. >> not 50, but -- >> you let howard schultz raise coffee prices as coffee plummets, let him do it, but airlines can't make a fair profit? >> there's no monopoly. >> there's not there either. there's competition. >> hampton, again, thank you, merry christmas, hope to see you soon. also, a disrupter giving angel investors help, dream funded help, fund startups before they reach the ipo stable. the company's ceo joining us after a quick break. (politely) wait, wait, wait! you can't put it in like that,

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look, daddy! teacher says every time a bell rings, an angel gets his wings. ♪ >> that's right. that's right. ♪ >> an angel investor looking to earn their wings in tech investing have their own clarence guiding them on their investing path. the co-founder and ceo of dream funded. he is joining us now, an equity crowd funding platform connecting angel investors with

pre pre-ipo tech companies. explain this. it's allowing people in the unicorn-like companies to sell their shares. is that what's going on here? >> yes. taking place in the most well-known companies sell and get cash for life events, paying for a home, diamond ring, or paying off school loans. >> what is different about this? >> second market changed the business model, but they were in the era before equity crowd funding. right now, there's a popular boom with people using internet to make investment, and the highway bill is a new bill passed by congress allowing employees to sell 90 days versus 12 months. >> are we effectively doing away with public markets? is that's what's happening here? services and businesses like yours, deciding you don't need to have an ipo at all? there's been a big debate, by the way, that a lot of the private companies, there might be sort of a misimpression of what valuations really are these days, things are coming down, and this is -- there's a lot of debate about whether it's good or not, and whether the

discipline of being in the public markets is a better thing? >> hopefully, one day, some of the platforms will serve as a private ipo, if you will, so doing away with the public markets, but that may be down the road. >> is that what you want? you want the guys to stay -- for you, you want them to be private? >> you know, some people think that the private markets, frequent tradings are not the best thing for companies, so who knows. >> effectively, what you are doing, though, is making -- increasing the likelihood of frequent trading, right? >> no. people are still can sell in 90 days, but normally wait a year to sell through our platform. it's not frequent trading, but we believe this will be a new type of model. >> what's listing there? >> since it's a private market, under 506, we can't promote investments, just the platform. they are credited investors. >> generally? i mean, like, companies of x size, revenue of x size, specialize in what?

>> most well-known companies you all use and well-known, talked about within the platform. we're fortunate to say the biggest known company we funded to buy an employee shares is drop box, and other company is cash rabbit and ripple systems, so it's within our platform, we have the biggest names as an invester. >> for example, benny came out and said, you know, all the guys make a big mess of staying private. this private idea, no discipline in the private market and valuations are fake. >> uh-huh. >> what do you think of that? >> everyone has an opinion. i think some, perhaps, are big, and others are right. no one really knows unless they're an insider seeing all the revenues the companies are producing. >> right. the other piece of the puzzle is that if you're in the public markets, you really have to disclose a lot of information. >> yes. >> that cuts both ways, but if you're an invester, you want to know what's going on with the companies, which is to say if the private companies don't have to make some of the same disclosures, and the risk is higher? >> well, with the highway bill,

signed by obama next couple months, it's going to not only allow employees to sell in 90 days, but provide financial disclosures for investors, which is historic. they provided no disclosures, but this gives us a glimpse of what they are getting into. >> there was a piece yesterday in the "new york times" online about good, which is a company sold to blackberry for about 450 million, something like that. they had an offer for $850 million six months earlier, and they did not take it. the employees, many of whom had not only taken shares as compensati compensation, but bought additional shares, some of them lost their shirts. the issue is disclosure, right? they did not really understand where the current valuation was, how much the company, frankly, was struggling in terms of cash positions. >> yeah. >> this becomes an issue of being in the private market that i think is now being atick la articulated.

>> anyone who works in silicon valley, they get compensated in a way, they are subject to the issues whether it's trading or not, right? you throw your lot in with the place, and say, wow, maybe it's google, and i'll be wealthy. >> the question i raise is philosophical. it's one thing to be working for that company, and it's another to be an investor outside of that company without -- >> just let those guys monetize that asset? >> yes. >> fantastic, then, that's great. you're not locked in. trade it off to somebody else willing to bear the risk instead? >> yes and no. >> yeah. >> the other philosophical question about this is culturally, if you -- >> you need to be saying this, not me. >> used to be if you were paper rich, right -- >> yeah. >> if you were paper rich, you would be incentivized to work to kill yourself because you needed to actually turn that paper, right? >> yes. >> now, if you get out early, what's that do to the culturally incentive system? >> just saying --

>> yeah, or maybe you know something and you want out. buyer beware with less information. >> $60 billion trapped in employer equity, and san francisco the most expensive city in the world to live in, similar to new york. >> right. >> people need capital to buy their first home and this allows them to take money. >> do you have to be accredited investor? >> yes. currently, you have to be a credited investor. >> what's your minimum? >> minimum investment? >> investment and -- >> what defines you as accredited? >> accredited investor standards is what the security exchange commission, $200,000 a year, or not worth of $2 million. >> cool. >> you can do it. easily. >> i invite many of the inves r investors that want to get involved in the pre-ipo market, visit dream funded. join us. it's a big trend taking place.

>> the whole family can do it. >> you and your extended relatives could do it, knowing you. >> yeah. the 1% argument. is that what you're saying here? >> 1.0001. >> we love . . . . when we return, they will still be arguing. a last-minute stocking stuffer that could pay big dividends. we're going to introduce you to stockpile. this is a tech start-up that's selling gift cards for stocks. check out the big winners, netflix, amazon, activision, and nvidia. we are first in business worldwide.

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a last minute gift idea with a twist, a new start-up called stockpile allows stockholders to buy fractional shares for a number of the hottest companies on wall street. here is the chief executive officer, dan shannon. brokers always thought round lot

to get to 100 shares. you are talking about being able to buy if it is a $90 stock, buying a fractional part of one share. >> that's right, joe. thanks very much for having me. >> you are welcome. >> you can now bias little as $25 of stock and you can do it in any dollar amount you would like at the store. this is the next evolution of buying stock. we saw itunes and the ability to go from buying an album to buying a song. you can buy a fraction of a share at your local grocery store, you pick up milk, bread, eggs and apple stock. >> if you want to own any of these great tech companies that everybody wants to own, amazon, google, 100 shares of google, is that $70,000. >> that's absolutely right.

so, you know, as it turns out, 86% of americans don't own direct stock. the reason is two-fold. number one, just as you said, it is really expensive to own stock. the price point is high. you often have to put in a large amount of money in a brokerage. it is time-consuming and complicated. if you have ever tried to gift stock to someone and get the information in place and get everything set, it is difficult. we have tried to take all of the frictions out. gift somebody $25. you no he whknow what this remi of, drift funds. it is the same thing. >> fractional shares have been around for some time. we have some twists. we have turned it into a very

user friendly consumer product. you can go into the store and buy it with your credit card or debit card, very, very easy to transfer. we have an e-gift capability. if you don't have your christmas gifts yet, go on stockpile.com. >> the fees aren't bad. it is into the much more expensive? >> to buy or sell on line, it is the 99 cents. you can gift for $1.99. if you want to buy in the store, it is modeled like a visa gift card, the most popular right now. >> i could use a visa gift card to buy fractional ownership in visa, because that's expensive too. >> you could do that too. >> it is complicated. dan, thank you. merry christmas. happy holidays. good luck! >> thanks so much for having me. >> next, procrastination nation, have you checked everything off your list. tweet us. be sure to use the hashtag, keep squawking.

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received your tweets. eddie fisher says he finished shopping at 6:00 this morning before tuning into "squawk box." another said she is skipping gifts together instead saving cash to buy a house. >> a different eddie fisher. >> we want to wish everybody a merry christmas. we have to run. have wonderful holidays! see you on monday. "squawk on the street" begins right now. >> merry christmas! good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with sarah eisen, david faber and simon hobbs. stocks closed at 1:00 eastern. relatively steady. the s&p relatively