point. the dow indicated up a little over 1 point. there's oil, which is also a little bit quiet today, not a lot going on. mike -- >> russell 2000 small caps at a ten-day win streak. >> all-time high? >> yeah. >> i'll see you next week, right? >> you'll see me at 11:00 if you're watching. >> oh. >> yeah, i'll be here one day next week. >> i'll be reporting overseas next week. >> our international correspondent. >> yeah. >> where? >> in paris. >> nice. thank you. make sure you join us on monday. "squawk on the street" is next. ♪ good morning. welcome to "squawk on the street." i'm david faber along with jim cramer. we are live from the new york stock exchange. carl quintanilla has the day off. let's give you a look at futures as we get started on the last trading day of the week. you can see joe just told you of course he went through it in great detail in fact.

>> exactly. >> i so i don't need to. i'm sure there's a lot more viewers who join us as well at 9:00 a.m. >> yeah, the ones who wake up after the football game. >> european markets certainly want to know about jim, they always ask, so we show them. there it is. that's how we're doing in the european markets and of course as we always do we'll show you the 10-year note yield. that's really been the story. >> yes, thank you for saying that. >> you're welcome. approaching 2.3, we're back to where we were last december. >> dollar's very strong. >> round tripped it. >> yes. >> as this year gets towards its close. and there's crude down for the first time in a couple sessions. >> last year at this time we were talking about three rate hikes. it's incredible we're talking barely about one rate hike. if there was ever a reason why you would want three rate hikes, it's the idea you have a president who favors tax cuts and more spending. >> yeah. >> it's a combo we have not seen. >> no. and he may get. >> people do not understand how rare this is except for people who put money in the stock market. knew the amount of money coming

into the stock market according to new figures extraordinary. >> let's get to our road map this morning. it does start with that president-elect. donald trump's cabinet starting to take shape. we have three confirmed names this morning, we're going to talk about what they mean, who they are and a lot more. plus, speaking of trump, a new relationship with business in the white house. the latest on ford and as well what salesforce's marc benioff told jim last night. of course the company reported earnings. mcdonald's also rolling out some changes investing heavily in technology. you're going to want to hear what the company's ceo told us about those efforts. we have some big developments this morning regarding that transition of donald trump into the presidency. senator jeff sessions of alabama has accepted the president-elect's offer to be the next attorney general. sessions is known as an immigration hard liner, retired lieutenant general michael flynn has accepted the offer to be trump's national security advisor, and congressman mike pompeo of kansas has accepted the offer to be the next

director of the cia. pompeo is a member of the house permanent select committee on intelligence, a graduate of west point as well. mr. sessions will have to be approved by the senate, not the case for general flynn. >> what are they going to say no to a senator? senators don't reject senators. >> no, but most likely he will -- that's probably a good point. so it's starting to take shape here in terms of some of the key appointments. we're still waiting of course in our world treasury secretary certainly very important one still waiting -- >> see, my world, david, is when i hear about cabinets i think about how lowe's had very sub par cabinet and shelving numbers versus home depot cabinets. >> why do you think that was, jim? >> i think people share take. >> is that a price comparison, or is that -- >> no, actually, home depot just pants lowe's this quarter just in terms not just cabinets but

plumbing, lumber, flooring, appliances. >> these are the things we prefer to talk about than the incoming cabinet. >> i'm going to talk about how masco's numbers were weak. they do cabinets. jeff sessions, what value do i have on jeff sessions? >> none. >> right. what value do i have on whether home depot crushed lowe's or not? >> a lot. >> thank you. because i can't make money for anyone with sessions. but last i looked is my job is to try to help people make money and i got to tell you that lowe's quarter was puzzling. what else comes to mind when it comes to lowe's, suboptimal. >> see, at this point i barely need you. i can just sort of -- >> i'm a simulation. did you know marc benioff went on the other day and said he felt elon musk said he was a simulation. i felt better. >> you know, it's funny because you did speak to mr. benioff last night. >> yes. >> and he did have some somewhat constructive things to say about the incoming administration,

didn't he? >> he did. >> we can take a little listen to that and get your reaction. >> we have a business president. >> i think that's awesome. >> you do? >> sure. hey, i am a someone who is let's move forward. >> okay. >> let's move forward. let's have an open mind. let's have an open heart. and let's move forward together. >> okay. but remember tech did kind of band together against this man. are you say thag this is kind of like apmatics. >> there was an election, you know, i certainly respect the results and the will of the american people. i expect our process -- i respect democracy, and i want to move forward with an open heart and an open mind and hope for the best. >> people -- because, you know, a lot of people in wall street feel somehow this new president might retaliate and therefore sold stocks -- >> i think that's silly. >> silly. and you can't wait to break bread in the white house again? >> no, i'll tell you what i'm really excited about. what i'm really excited about is number one, this election is behind us. >> yes. >> progress. let's move forward together.

>> fair enough. let's leave it there. >> is there anything more important than that? >> no. >> thank you. >> that was controversial. >> yeah. well, i mean, he was the lead for pence's efforts in the religious freedom act in indiana. >> and walmart to join -- >> right. >> this was breakthrough. i think that marc benioff represents a strain of pragmatism that i think shocked people. i know when he said it i was shocked. i said, geez, the guy is really just saying let's give him a chance. >> how can you not if you're running a large public company at this point say let's give it a chance? i mean you got to do that. >> absolutely. and marc was like -- >> it's one thing during the process. >> right. during the campaign. marc was there like why is this ground breaking, jim? new president in progress, get behind him. and i think what i say is revolutionary, i think the perspective is that they or he wouldn't. and he's saying, are you kidding me? it's the president of the united states. come on, let's go to work. and that is an attitude that i

think the media has to start getting on the program. he is the president. how many articles have you read about how it's like the transition is hapless? i don't want to go into politics, but i'm just saying i think you happen to see a little more with trump -- >> well, i certainly see a lot of traffic. my god i walked past 57th street yesterday. it's incredible. >> now you're talking because -- wimpy had good business, tiffany was strong, cartier was strong. i had to check it out after analyst said about tiffany traffic. i'll go check. foot traffic was swamped. >> i wasn't talking about foot traffic, i was talking about car traffic. it's out of control. whole midtown is basically stuck. >> once again you take it to personal. >> i can't help it. >> i can't do same store sales numbers. >> all about me. it's not. we're going to get back to talking about the markets, but before we do that we want to get to john harwood who's going to bring us up to date on some of

these important changes going on in terms of the transition. john. >> reporter: well, we've got three appointments coming today. mike pompeo, congressman from kansas to be the cia director, mike flynn, lieutenant general who'd been close -- the closest national security aide to donald trump during the campaign as national security advisor, and jeff sessions who is the senator from alabama who had been a staunch ally of donald trump during the campaign to be the attorney general. and in each of these cases you see donald trump keeping faith with the people who the most ideological people who got behind him in the campaign. these were not moves toward the center. this was in terms of immigration, jeff sessions is as tough as they come. and he's now going to be the nation's chief law enforcement officer. he's in particular been a tough critic of abuses of the h1-b visa program by big companies

thinking they are milking that program to use talent and depress wages for others. in terms of mike pompeo and mike flynn, they're both very aggressive proponents of a more confrontational style with islamic terrorists than we've seen from the obama administration. in particular in how it's discussed. you know, the whole discussion of whether or not you should say radical islamic terror or whether to avoid perceptions that the united states is at odds with a religion. you don't speak in those ways. well, mike pompeo and michael flynn have both been the kind who say that's political correctness, i'm not going there. let's call it by how we see what it is. and that's where donald trump is gone. so these are not centerist

picks. these are very aggressive and controversial picks on immigration and on the fight against terrorism. >> thank you, john. yeah, not secent ris at all, ji to our earlier conversation. immigration does figure prominently. john brought this up, the visas for high-tech workers for people who are very skilled. >> that's going to change. >> yesterday that was my question at least to chuck robbins. >> right. >> as well. is that a concern at all for ceos of these technology companies. >> they should be concerned. >> you think so? >> in terms of visas. yeah. i thought that was a really good line of questioning because we have done a lot of things with trade including training people and having them go back to their countries, replace people here with lower price people from -- i think there's going to be a series of tweets that's going to discourage that. >> speaking of tweets, the president-elect tweeted this morning, i think, that he just got a call from his friend bill ford, chairman ford, who advised me that he will be keeping the lincoln plant in kentucky, not

mexico. >> right. but it was never going to. >> no mexico. i worked hard with bill ford to keep the lincoln plant in kentucky. owe it to the great state of kentucky for their confidence in me. jim, my understanding has been that ford always was planning on doing this. >> there was no plans to take that or move lincoln, lincoln navigator or any of the big lincolns to mexico. i think the big issue and i think the president is going to see this, it's the new jobs. it's about not necessarily keeping plants here, but it's about not moving our job growth to mexico as he sharpens his message, i think you will hear trump talking about companies that are going to build plants in mexico and how that might be an unwise and ill advised situation versus putting them say where they could in the united states make quality cars with the implication that there could be a tariff on cars. >> right. >> that new cars that are made in mexico. that i believe will be -- my sources indicate that will be the message. worried about job growth. >> to the extent that we can look at the appointments that have been made this morning, and

they do seem to be following through on many of the things that trump said during the campaign. i mean, jeff sessions, as harwood just said, anti-immigration, very strong on that. flynn, you know, can you then say, well, maybe on trade as well we're going to actually see -- >> i think -- >> -- a lot of the rhetoric followed up with action. >> i believe you will. i think a lot of it is viewed as being the art of the deal, how to negotiate better. but a lot of it is going to be i think a subtle sense that if you don't put those plants in the united states, new plants, whatever it is, that you may not be as favorably well received. that's going to be from what -- i've spent a lot of time on this, not joking about the kitchen cabinets here, what i've actually been working on this spent a lot of time on this, what they're concerned about is new job growth and it be here and not overseas. that is going to be their approach. >> all right. when we come back, we're going to have mcdonald's ceo steve easterbrook at least on a new era for the company combining

service and technology. also ahead anti-trump protests are having some affect on businesses near trump tower. we're going to talk with manager of retailer that is close to the tower. by the way, we're also going to talk about the markets because we really did not get to them. and i don't feel complete until we we've had a good conversation -- >> i have stuff about l brands and change -- >> good. i feel a little better already. we'll talk about gap earnings and earnings from salesforce. a lot more post nine right here "squawk on the street." stay with us. ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. (bing)

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mcdonald's announcing today it's going to roll out its restaurant of the future concept nationwide. in a big shift the company will now offer table service in the u.s. as well as introduce mobile pay and ordering and self-order kiosks in its restaurants. cnbc caught up with mcdonald's ceo steve easterbrook yesterday. take a listen to how he described these changes. >> an example of how we're changing our attitude. because we've asked customers to fit around our business model for the better part of 60 years, and we've been very successful doing that. but now customers and consumers in general are demanding much more choice control over their lives and therefore we need to

adapt and evolve our business model to fit around their needs. so for those that want table service, that's a great opportunity we can offer. frankly, each time we convert a restaurant here in the u.s., we see the results. the next day business picks up. customers come back, enjoy the experience and come back more often. >> this man institutes a lot of change. >> all heavyweight. he's been after me telling me listen don't give up on technology. i've said when is he going to start integrating, the australian stores have a lot of this and numbers are up there. he recognized the company was very far behind when it came to technology, starbucks can do it and he intends to catch up and catch up very fast. i think it's something that the franchise -- remember, this man understood who really runs mcdonald's, it's the franchise. >> without a doubt. >> he got that from day one and he said i'm going to win them over. so when he does these things it then makes people feel, franchise feel better, put more money in. he understands -- this man's remarkable. and i think that the stock maybe halted here a little bit, the

last numbers were just okay. some worried about a strong dollar. i'm not worried about anything with that guy. that guy's a heavyweight. knows what he's doing. >> also commented on consumer behavior as our viewers know, people seem not to be going out at least prior to the election. we did ask him has that changed. >> i don't think there's been anything notable in the last two to three weeks apart from typically across the u.s. weather has been very kind, it's been a gentle introduction to winter, so i think that has helped drive foot in the short term. in terms of consumer, as there was uncertainty, there's still uncertainty what that's going to mean for them and their families, as that gets clarified in the short to medium term the consumer sentiment will start to stabilize both because businesses and individuals one thing you don't like is uncertainty. as soon as we can get that behind us. >> he needs travel to be better, but obviously what you're really

hoping and i don't mean to cast dispersions on steve, but hoping people go up from mcdonald's, feel better about it and go to a higher level, olive garden for instance, i don't know. i continue to get positives, but my readings are so obviously just ten days old. you know, you're not dealing with anything -- it's more what benioff said, the election's over and it's positive. but popeye's saw some trends that were positive in most recent. look, there isn't anyone who comes on "mad money" and thinks things are better. things are better either because the election is over or things are better because they feel there's some new spirit. but i don't think it would necessarily be reflected by egg mcmuffin sales. >> and the stock at $120 a share. >> that's fine. numbers probably have to be shaded down because of the strong dollar, but that's fine. >> yeah. all right. we should talk more about that strong dollar, about rates and about the markets overall, which we are going to get to, jim. but first we got your mad dash as we count you down to the

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♪ it's a mad dash for a friday as we count you down to the opening bell. we're going to talk a little retail. >> yeah. some of these retailers just having a very hard time getting it straight. they tend to be mall based

retailers. gap stores once again same store sales down three. not expecting any immediate payback from investments on the conference call. traffic is stubborn for gap. traffic trending down mid and high single digits. so nothing there. nothing there yet. long term maybe a turn, maybe not. abercrombie minus six same store sales, two cents, looking for 20 cents. rarely do you hear the ceo say listen, disappointing performance. this is the mall, don't give up on the mall. yesterday children's place numbers were extraordinary. >> well, it's been an interesting week, jim. i mean, as i can remember of course you talk home depot strong, lowe's not, target strong, walmart not. children's place strong, gap, abercrombie not. >> tjx and by the way ross stores last night terrific saying there's a lot of inventory out there they can buy with cash, and then sell. ross stores was extraordinary 7% comp store. i was looking for 2 to 3. so that was excellent. remember, we're still dealing

with the move in macy's and kohl's and nordstrom from two weeks ago -- well, last week. which was extraordinary. they did not give up their moves. this was a fantastic conference call, ross. people underrate this company. why they won't come on tv -- i begged them -- begged, begged, begged them to come onto cnbc. they're still adding stores. they might close a bad store, ross is making a nationwide footprint. i don't know if you've gone to ross lately, they look good and they're very inexpensive. they have high quality merchants including handbags. i like them for their accesso accessori accessories. tjx i like for home goods, which is extraordinary. and if you go there now for thanksgiving, you're too late. they've already done the changeover. >> oh, they have. >> they're already doing christm christmas. if you want your stuff for thanksgiving, they are such great controllers of inventory at tjx, this stock went down initially. why did it go down initially when it reported? because people are idiots. the conference call was

brilliant. >> okay. well, take that, think about it during the break. when we come back we'll have a lot more for you about retail and about a lot of other earnings this morning. in addition to broadcom on the market the opening bell just a few minutes away.

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you're watching cnbc's "squawk on the street," live from the financial capital of the world. opening bell is going to ring in about two minutes which gives us a little time before the opening bell, jim, for me to turn to you and say on what has been an interesting week, no shortage of course of news on the national front. what is the key to this market today? >> well, i'm looking, you know, you need to start seeing some actual numbers that make people feel there's something real happening in industrial. and caterpillar's numbers just came out this morning in their form 8k, i'm just reading from numbers rather than commentary, asia pacific up 12 in october 2016 for retail sales of machines. whole pan plea up 3% in september, up 2% in august,

that's a nice change. resource industries, asia pacific was up 8%. it had been down 20% in september and down 20% in august. construction industries asia continuing the strength up 13%, it had been up 14%. so you're seeing asia doing better, which is going to be china where people are going to say there's better chinese growth, baltic freight index up very big. people playing it with the short squeezes involving these drive freight, play it with caterpillar. the shorts don't want to hear that. that's been the hedge fund short of a lifetime. it's not working. >> right. you know, it's interesting in light of the president-elect's desire of course to make u.s. goods more desirable, make them more here and sell them around the world. the u.s. dollar is going to make that more difficult. it has been very strong, i note it has just hit a low, the euro, hit a low of 1.05. >> and that's komatsu when the dollar was weak really gave up here. when the dollar is strong,

komatsu comes in strong because they are a competitor. that's when you might think a president trump federal highway administration you can't buy komatsu. that's what i'm talking about in terms of a change in this country. >> right. there it is the opening bell this morning. [ bell ringing ] you can see realtime exchange, ethan allen highlighting new product line with disney. over at the nasdaq advisory company helping to improve health care organizations and educational institutions. >> disney, one of the reasons why people have been liking it in the most recent spate of good pieces, research pieces, is that consumer products goods they're saying obviously ethan allen this is an asterisk for them, but consumer products better. don't forget there's absolutely a belief that espn is bottoming out. but i have to defer to you, you've been covering this business for more than 20 years. and i -- jealousy. >> it's been 30 years of being a journalist very soon. are you going to celebrate with

me in january? >> of course i will. >> 30 years. can you imagine doing anything for 30 years? >> 30 years? >> 30 years. >> holy cow, david, 30 years? >> as a journalist, yeah. i think it's time to get out, what do you think? good 30 years and move on. >> i want to do a promo, i want a crew following you maybe do an interview with john malone where he says consolidation maybe kraig -- i'm doing this because there's a thing called heavy rotation and the whole newsroom is jealous. >> oh, really? jealous? >> yeah. if you've been at it for 30 years, i think you deserve it. >> exactly, little promo for 30 years. let's get back to the markets. we haven't had a chance to talk. you were making a point on the dollar when the bell rang. >> look, the dollar you would normally expect a lot of these industrials, if you say illinois tool works, parker hannifen, interest rates have gone up so they are both going to have earnings shaded down and they're

less attractive as bond market e kwif lants. that's been a pressure point. all you got to do is look at proctor & gamble which is probably the most thoughtful about currency and their proctor is up against unilever. so there both not great competitive advantage and bad translation back. that was part of the mcdonald's even though i think easterbrook is going to try for that but proctor is the battleground stock here on the dollar. i want people to not throw away their proctor, because they raised the dividend consistently, very well run, they had terrific organic growth. but that is the company that's on the firing line for the dollar. you would think it's caterpillar and it should be because of komatsu, but it's proctor, that's what people are selling. that's been the proxy, a little less clorox, they don't have as much overseas. kimberly has been a good proxy to watch. and don't forget those who are doing coca-cola, be careful

because muthar kent is hedged very smart man. >> at coca-cola they are hedged. >> coca-cola. >> coca-cola company, not of america. >> no, apple building, floating that rumor apple is going to build things here. can i just say apple is building the largest infrastructure project? jim stewart had a fantastic article. >> $2 billion headquarters. which i think is a spaceship. >> ias there. i mean, the glass that they're using, just the kind of brilliance of it is a project that reminds you of when the eighth army used to build bridges in china during that period where mow was trying to -- remember that period? >> yes, mow determined to put the eighth army to work not as armed forces but building organization. one of the great road building institutions. >> understood. >> eisenhower and mow. >> you like building. >> yeah. that was during that period where we had to study mow at harvard because mow was a great

leader. quizzical. quizzical period at harvard. >> i was taking a look at p&g of course which is down to your point earlier. >> but children's place is up. >> i was also taking a look at the banks, jim. bank of america is up -- well, actually, it was up. >> was up. >> this has been a mixed weak -- not mixed. >> they've been trading small cap stocks. >> i know. >> remember those numbers from wells fargo how negative 50% decline in this and that, stock was had a huge move. >> had an enormous move. they've all been up -- >> can you imagine if they were actually doing well where we would be? can you imagine? >> we're going to have rates, less regulation. the question how much further can this go in terms of this rally? >> david, the stocks are so far behind. goldman sachs gone from 160 which was a $20 discount to its book value, which was clean, to 200 now over 200.

and goldman sachs is $210, what the move. morgan stanley, what a move. >> returned all of them to nice moves on the year. other than citi, which is only up 7%. >> you know what this is going to do to hampton's real estate, david? >> no. >> you want to go out -- let's buy some houses this weekend, new managing directors, we'll do some flipping. >> it's uncertain how -- i mean, obviously a lot of them are compensated with the stock. >> look at these moves. this is a once in a lifetime moves. we're not talking enough about them. spending too much time who's going to undersecretary of this and not enough time talking about a move in goldman i have not seen in my life. >> in your life, come on. >> in my life. >> come on. >> oh, come on. goldman sachs went up -- >> there have been some moves in your life where goldman sachs went down and that was impressive. >> it was 70 under gorman. last night i had benioff on. >> yeah. >> they landed citi and they

landed morgan stanley and pnc business this quarter, which is really rather amazing. these places are radically upgrading their tech. remember, they hadn't spent a lot of money on tech. they hadn't spent a lot of money on anything. it's new. it's different, david. >> they have spent -- they're spending more. morgan stanley had to merge all the systems. >> finally. well, they've been doing that for -- >> yeah, they've been doing it for some time. >> but i'm saying these companies move, this is where the move has really been made in the financials. we used to think that all that mattered was maybe where net interest margins are. now people are starting to talk about growth. yesterday my -- from citi talking about how trading is better. david, there's a lot of different levers and you used to joke with me about what the return on equity would be. >> i did. i did. would it ever really get into the double digits on a consistent basis for these financial institutions? not just one quarter but every quarter. >> i don't think the treasury and federal reserve are going to have that kind of hammer lock on the banks and what they can do

with their money. by the way they'd love to return more capital. government hasn't let them. that's what's going to change under trump. >> you mentioned crm. >> yes. >> selling more in terms of technologies to these banks. >> yes. >> look at shares of salesforce because it is up rather nicely actually this morning. >> well, it should be. that was a quarter -- talking about tony la rus about $10 billion, laid the road map, gave you a 2017 and a 2018 fiscal year number. why is this important, david? a lot of people felt marc benioff was dabbling with twitter because maybe it had run out of growth. growth accelerated this quarter rather amazing. maybe we should go visit their new headquarters that's in the old metlife building, have lunch next door. there's a fantastic cafe right there, or a chipotle i've never been able to get a table in because it's so jammed. chipotle, do you hear anything about ackman and chipotle? >> there's some reporting and this is by the way started actually a week and a half ago that ackman who owns 9.9% of the

company's common shares making the second largest shareholder is going to get some board seats, ackman's performance as a hedge fund manager not just this year but last year has been nothing but atrocious. >> what are levels are they similar? >> down 21. >> yeah, it's kind of a foot race, right? >> it is. >> i think chipotle same store sales were actually better than ackman's performance because they're down 16, but it was for a ten day period. >> right. >> maybe that's what it is. it's synergy over performance. >> they can both commiserate. down double digit declines. jim, hold onto your seat here. >> why? >> because we have a deal. >> no. >> fan duel and draft kings are getting together. imagine the synergy and imagine the loss revenue from all those people they advertise with. >> you know that was about the fourth quarter? do you know that fourth quarter ratings were up because of fan duel did the whole concept? i'm still at fantasy, only got

eight points from cooks last night which was disappointment, but that's probably too much information. but i do think this merger may bring back a degree of respect that could make it so people feel more bold. but fantasy has been something that's been dinged here badly. that's a merger but not the kind of merger, david, like the ones we're going to get on monday when you come in and you have done your 30 years of experience. >> mention comcast our parent company is an investor in fan duel. >> okay. >> dually note that. >> glad you mentioned that. how about the moves in things like best buy? how about the moves in things like -- >> yesterday that was quite a move in best buy. >> go to best buy there's nothing at best buy that you actually need. that is about consumer spend. and it's continued. it's strong. very strong numbers at best buy. don't forget that's apple, which traded up. now, there's always a seller of apple premarket, someone wants that stock lower. there's a battle royal between the shorts and the longs in apple. every morning they mark that stock lower in order to beleaguer the longs. have you seen that? that's called painting the

table. it happens every day. >> who's going to win? >> it's apple delivers on earnings apple wins. >> oh, we have a while until earnings. >> i know. we can get jon legere on the phone, new customer of salesforce, legere and sprint are the marginal factors and plus of course the chinese. we don't know what the chinese, what they're buying, what they're not. i still think chinese communist party was unhappy with the excuse that samsung gave about its galaxy note 7 which they were much more vocal about how it might be battery related, which remember it was wiring related, not battery relate. >> we are seeing some of the technology names, jim, with a bit of a rebound. you mentioned apple. amazon is up about 1.3%. reports this morning that they're going to be moving the video service worldwide to really compete with netflix. and they're going to be spending an enormous amount of money amassing, they talked a bit in their conference call. they do have the worldwide

rights to all of their shows. that's very important. >> well, the one thing that had marked this moment was tremendous amount of selling in these high growth techs. >> yes. >> when amazon got down 15%, a lot of the big money came into it. and i would say that those stocks one of the reasons why i'm excited about the market to a degree is new money coming in, we used to have to do pay peter with paul. they're not selling those high growth techs now. and yet you're still getting buyers of banks. that means there's more new money coming into the market not unlike the old days when we used to talk about transom money on mondays that had come in over the weekend, and merger moneys come in over the weekend. >> taking a look at things trying to find things to talk about. >> david, talk about citi starting southwest, delta and american with buys. i thought that was interesting. a big mistake they're -- battle between shorts and longs continues. >> been aware of that one. >> and l brands, they decided to

end the free panty and $10 off bra promotion. >> no. >> the free panty promotion is done, david. >> that's the last time i'm going there. >> what, the free panty -- no, no, it's good. we got to get away from everyday low pricing like that at victoria's secret if you want to get the numbers up. free panty thing promjected the wrong image. >> got it. >> pink never did bad for victoria's secret. when you shop there this weekend, you're going to see a different crowd, it's going to be upscale. by the way, did you see pottery barn? >> yes, let's move onto pottery barn. >> i do not like this lingo. >> tell me. >> pottery barn, we are perceived as expensive, too predictable and not for them. >> not for who? >> for the customer. west elm is much better. deutsche bank says they're being hurt by wayfair, which is the discount furniture company online. >> it is. >> they're trying to reposition -- i don't want to give up on william sonoma.

w west elms are making peace here. >> i'm just here to move things along. he's here to do it all. >> ran ahead so people are giving up and they're getting -- you know, they're just taking profits. >> this is what happens when we talk politics at the top of the show. you can't keep him down for long. we got to get to bob. >> look at prudential. merrill lynch saying prudential going to be a beneficiary of dodd/frank. don't forget insurance. and settlement at trump university too. >> i know. bob pisani is on the floor with more on what's moving though hard for me to imagine he's going to have anything left to talk about, bob. >> i'll pass on the free panties, but we're getting a mixed open here at the nyse. not mixed over at japan. you see what's going on this weekend? they're loving it over there. they've been up almost every single day. look at the nikkei, that's a 10 and a half month high for nikkei on the weekend. they've been partying for awhile. but the rest of asia is having trouble. merging markets are really having a tough time. take a look at some of the

smaller emerging markets, indonesia, thailand, malaysia, they've all been down. of course strong dollar generally rising interest rates a real problem for the emerging markets. here in the u.s. it might be a mixed open but the russell's up again, folks, this is ten days in a row. we're up a new high for the russell 2000, that's not a typo. we're up 10% since the election. s&p 500 up 2.7%. obviously a little bit stronger growth big help, possibility of less regulation's a big help. generally higher interest rates not good news for small caps, but if you can get stronger growth, that will offset some of the concerns about higher interest rates. there you see the market buying into that. meantime, take a look at the fund flows, we've been talking about retail people coming back into the market, higher sentiment by retail traders. these are lipper fund from last night, all equity funds 23 billion inflow, breaksdown etfs had $27 billion inflow, that is all-time record for one week for equity funds, a record.

but mutual fund equity funds had outflows. what does it mean? it means etfs are completely winning this game. and number two, it means that retail investors are definitely showing some interest in getting back in. so you talk about where the money is going, you want to follow the money, we've been talking about this big inflows into financials and materials and treasury inflation protected securities, and big outflows from precious metals and emerging markets and bonds. we could see this in the indexes, but it's nice to actually see it in real money like where people are putting their money. they're actually following where the indexes are going right now. retail earnings we've talked about this this morning but it's a real microcosm of the problems facing retail everywhere. ross stores the off price people doing great, revenue beat the street. same store sales up 7% for ross. we had 3% estimates. way above expectations. and the opposite with gap, apparel's continuing to struggle. they match the estimates but seven straight quarters of declining sales for gap. same with abercrombie, they're struggling to find their

footing. their main brand abercrombie down 14%. ow. so here's the trend. off price and discount and beauty stores doing well. so tjx, ross stores, old navy did very well generally. and beauty's doing well. ulta, sally beauty, remember e.l.f., they went public down here awhile ago. they're doing well. department stores, most apparel, they're having a very, very tough time. haven't said much about the ipo business because there's not much to say. but next tuesday we're going to get our first ipo, and it's an interesting one. it's a pot ipo. it's the first cannabis ipo at the new york stock exchange. and for that reason alone it's noteworthy. innovative industrial properties is really a reits, real estate investment trust that owns and manages cannabis facilities. they don't actually grow the pot but manage facilities on behalf of people 8.8 million shares at $20. we'll see how that does down here. remember something, banks can't handle the cash from these cannabis facilities, so people have to step in provide

financing some way. this is one way to do it. guys, back to you. >> thank you very much, bob pisani. want to get to john harwood now who's got some news for us involving the lawsuits involving trump university. john. >> david, we've all been wondering what's going to happen to that lawsuit which was scheduled to come to trial now after the election donald trump his lawyers have made some moves to try to delay that until after the inauguration because the demands on donald trump's time. now it looks like that's not going to be necessary because cnbc has confirmed that there are negotiations underway which could culminate today to settle that lawsuit without an admission of wrongdoing but a payment of $20 million to $25 million by donald trump to settle those lawsuits. these are fraud claims against trump university, the idea that this was simply a marketing scheme rather than a legitimate university, that dogged donald trump during the campaign. he criticized the indiana born

but of mexican heritage judge who was overseeing the case. he now looks like he is going to make that case go away. we'll wait for announcements later today, guys. >> all right. thank you, john. john harwood. coming up, republican congresswoman marsha blackburn from tennessee. "squawk on the street" will be right back. alpha seems more elusive today. is it because so many go after it the same way? chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way, attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential

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there it is. twenty years of the nasdaq, and we've never been higher than we are now. and i can remember all of them, jim, of course reporting right here on cnbc. the dot com craze, advent of the internet in the '90s there, you can see it, and the crash that came after. financial crisis almost barely a blip there. >> well, look, there's a small cap rally of tremendous proportions, a lot of that is anti-regulations. >> we'll be back with jim and stop trading. uit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day.

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trading. >> that's better than british hens. i'll tell you that. >> it is. >> so listen to me, subtle jab at oracle by marc benioff talking about the fastest growing cloud company. that is directly once again larry ellison listen up, saf safra catz just saw donald trump, and subtle jab. and not so subtle jab, more like a mohamed ali jab at sacha nadella and microsoft by salesforce. they were friends, then they were frenemies and now they're just enemies. >> why? not that long ago -- as i reported they were not that far. >> marc benioff spent time with some gentlemen who subsequently i could say feel betray marc benioff going against him in crm, and then david, this linkedin battle, look out. it's not so easily done this

deal. i need you to focus while we shop this weekend and i know we're not going to be able to get to free panties, but i want you to shop with me and check the deutsche bank presentation by microsoft about the pool dominance in linkedin. because i've got to fell you the europeans didn't like it. >> well, the eu is where the concern is. of course by the way your friend mr. benioff -- >> he's not my friend. i have no friends. >> you have lots of friends and he spent plenty of time trying to drum up some opposition to that deal. >> i know. >> so that hasn't made him friends at microsoft. >> my major point is he said microsoft was like the ballmer microsoft, returned to that. and you and i remember the late janet reno, i'm sorry, but when took on the department of justice. >> yes. >> ill advised to take on the department of justice. >> it was. now it will be run by jeff sessions. what do we got on mad tonight? >> we've got my game plan tonight. i always find that last week's game plan i said that you probably want to be, you know,

children's place. well, this week i said children's place from here, but i said last week was nvidia coming into nvidia's numbers. >> i remember that. >> so you'll want to hear what i say today, i think, maybe. children's place at 100. unbelievable jnl, what a quarter getting into large size boys. >> large size boys. >> yeah, 16 and get into 18. >> really? >> yeah, that's where the action is. >> i got a very large size 14-year-old. >> you do? >> yeah. >> we'll have to take him shopping this weekend. got some stuff i want to buy for him at sporting goods stores while we look at foot locker. >> all right. have a great weekend. i'll see you in the stores. >> 30 years in business? >> yeah. january. i'll give you the date. >> i mean, i've seen you, you do a lot of reporting. >> i do. i try. he's never getting over that promo. >> because the promo runs every two minutes. >> sorry. >> my football pra mo ran for 30 seconds. >> making up for lost time. we got congresswoman marsha blackburn of tennessee coming up next. who are you?

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i'm david faber along with kayla tausche and wilfred frost. we're live from post nine at the new york stock exchange. carl and sara both off today. let's give you a look at the markets half hour into trading. you can see we're vaguely down, i can say that. wti actually turned around. it had looked down earlier in the session but it is now up. our road map today starts with donald trump's cabinet taking shape. several major appointment announcements, what they mean for american business. we'll head to washington and speak with the former director of the cia james woolsey and a member of the trump transition team congresswoman marsha blackburn. and ceo of ethan allen will join us, what a trump presidency means for immigration. and a slowdown on fifth avenue. we'll speak with a manager of a store across the street from trump tower. how the president-elect's presence is impacting retail during a very busy season there. all right. we have some major developments this morning in the trump transition. nbc news confirming that alabama senator jeff sessions has

accepted president-elect trump's offer to serve as attorney general. retired lieutenant general michael flynn has accepted the offer for national security advisor. and kansas republican congressman mike pompeo has accepted the offer to be the next director of the central intelligence agency. in just a moment we're going to discuss intelligence and national security with the former cia director james woolsey, but first joined by tennessee congresswoman and member of the trump advisory committee. thank you for being with us. give us some of the thinking behind these appointments i just mentioned? >> i think it's important for us to make certain that people know our national security issues are being addressed appropriately and that mr. trump is making wise decisions in those areas. and i appreciate the fact that with national security being the top issue in this election campaign he is going there first with his appointments.

jobs and the economy are next on the list. so we will work on down through the list, but thoughtfulness is being applied to the process. good due diligence is being applied. and then looking at matching the task and the goals for each department with the set of leadership skills that are brought to bear by different individuals who are interested in filling those positions. >> general flynn does not need to be confirmed by the senate of course as a national security advisor, but some would say some of the things he has said, for example, quote, fear of muslims is rational. the fact that he took a trip to moscow in which he spent a lot of time with vladimir putin and was a paid speaking engagement, people looking at some things, congresswoman, and saying, well, is that really the person we want with the president here on national security issues? >> i think you look at the whole

of general flynn's background. and what you see is someone who is very committed to this country, who is willing to have laid his life down for this country and for our freedoms. and i don't think that that can be discounted one bit. he has brought a good decision making process and has brought discernment to the task that have been given to him and has fulfilled those beautifully in his role as a general with our military and therefore i think you're going to see that same discernment brought to bear in how he gathers information, how he processes and distills that information and the then guidance he is able to give president trump. >> congresswoman, the trump transition team has been thought to be floating certain names of people on wall street or people to perhaps make the president-elect appear more s t

centerist or to have more thought -- i'm wondering if you think we'll see any women in his cabinet, any racial diversity in his cabinet? >> i think you're going to see both women that are highly skilled and well qualified to fill positions. and you're going to see racial diversity in there also. what we need to keep our focus on is having the most qualified person to do the job and understanding what those different departments are going to need to accomplish in the next two years. and, you know, just as you look at problem solving for a corporation, you do the same thing when you're looking at re-engineering a federal government that has grown far too large and has become so bureaucratic it is inable of solving the problems that the citizens have. that's a lot of what this campaign was about. so right sizing the government and refocusing, re-engineering is going to be important. you know, let's take for

instance economic growth in the economy. what you need is someone who says what is the negative the problem, the is broadband access to show up to vote for donald trump, they have been left out of the process because they are not in a major urban area and some of these rural counties cannot attract manufacturing. they can't attract call centers because they don't have high speed internet and broadband. and it causes them to lack in health care access and educational opportunities. so you find somebody that can help solve that problem. >> congresswoman, would you serve in the administration? i mean, many members of the transition team are thought to have already had conversations with the president-elect about certain roles. have you? >> i have not had any conversations. and i have not been offered anything. i have been honored to be a part of the campaign team and very honored to be asked to serve on

the executive committee. i'm hearing from a lot of members, former members, a lot of individuals across the country, democrats, republicans, independents who are submitting resumes and want to be considered to help mr. trump in his goal to revitalize this country and to make us safe again. >> congresswoman, kayla mentioned the idea of achieving balance across the trump cabinet. and of course general flynn's seen somewhat a trump supporter, trump insider, does that make it incrementally important to have an outsider in the role, is that why mr. romney is coming to speak to mr. trump this weekend? >> mr. trump is going to make the decisions of who he chooses. what we have to do is allow him the opportunity to build out a group of individuals that he will have confidence in. and that he knows are on the same thought pattern and thought wave as he is about how we work

to address the problems in this country. and i think it's less important to say, well, this one's a republican or this one's a democrat or this is from the east coast, this is for the west coast. let's put our attention on having the skill set that is necessary to achieve the goals that mr. trump would like to achieve in the next couple of years. and he knows where he wants to take the country. people are very clearly with him in this endeavor. and they are beginning to line up and say let me help. whether it is coming in in a volunteer position or taking a sb sb sabbatical, the vaf, hear from so many people here in health care say we're all in, we want to help. easily done. >> congresswoman, we appreciate your time.

but we're out of it right now. thank you very much. >> sounds good. thank you. >> you're welcome. congresswoman marsha blackburn. >> for more on the national security and intelligence ramifications of the cabinet appointments, we're joined now by former cia director james wools woolsey. director, it's great to have you. i'm wondering what you think of the prioritization of national security in these appointments. think back to 2008 during the financial crisis, president obama's first pick was for treasury. what does this say about the priorities of president-elect trump? >> well, they're selecting people on both domestic issues and foreign policy. i think the key thing is that the three that they have selected for national security advisor, cia, particularly those two, and attorney general, are really outstanding and able people who have done important things. and i think they're good choices. that's what matters. >> general flynn advised the

president-elect on foreign policy during the campaign. how good of a job did he do on that? what's your grade that you would give him? >> well, i think fine. i mean, i think we are coming along. the real decisions will be made by the president. and they'll be made as time goes on. not all at once. here before he's even in office. but i think general flynn is doing a good job. and we have professionals working on the national security side. and that's good. >> mr. woolsey, you've been certainly a proponent of being more aggressive, i think, in remembering previous appearances by you with us more aggressive in terms of taking the fight to isis, criticize certainly the approach of the obama administration when it comes to syria in particular. what are you expectations then given mr. flynn's presence there and what that can say about

other appointments in terms of how that's going to change with this administration? >> well, things are improving a bit already with respect to syria and iraq. moving toward mosul, raqqah, these are finally starting to be steps that look like they are to some extent effective. they're not full and they're not complete, but they're going in the right direction. and the next thing we need to do is work together closely with 30 or 40 countries in which isis is operating. and not only take out isis' caliphate in iraq and syria, but start wearing it down around the world. because it's not just in the middle east. it's in europe, it's in the united states. it's in a lot of places. and we have to get on top of that. we have to find the terrorists before they commit terrorist attacks and stop them. and that is not easy.

>> right. and you know on that front of course the cia may become or is very important. do you know anything, can you share anything with us in terms of the incoming director mr. pompeo? >> i don't know him. i think he has an impressive resume. and he has a very good reputation, from what i've heard. looks like a good choice. >> mr. woolsey, how do you see the relationship working out between general flynn and the president-elect? i mean, clearly general flynn a strong character, a military man, might there be a bit of clash of characters between the two there? >> oh, i don't know. in any american government there are clashes from time to time. i certainly had my share. but i think they're both very abled and accomplished people. and it looks like the president-elect is relied on general flynn substantially in the lead-up to now. and i think that's going to prove to work out, at least i

certainly hope so. >> as we've been speaking, the appointments previously reported by sources have now become official. senator jeff sessions for attorney general, former general flynn for the national security advisor and congressman pompeo for cia director. mr. woolsey, when you think about the hot water that some of these people have been in, i'm thinking specifically of general flynn and congressman pompeo, it's been based on things that they have retweeted or tweeted out themselves. do you think someone in a national security role, whether it's at the nsa or cia should have access to twitter? >> well, i am not into the social media myself. being rather old fashioned, i suppose, i'm not the best judge of that. it may be possible to use a social media very effectively and not risk security lapses and so forth, or it may be difficult and take some real work to avoid particularly disclosing any

classified information in a tweet or whatever. that's something they're going to have to come to terms with because the social media change a lot. and have a big impact on the way people are communicating with the public and how they operate in these days and times. and just as the fax machine opened up eastern europe to influence undermining the soviets and just as a printing press opened up the war, the 30 years war, there's always a big impact of technology on communications. and i think we're seeing that. it will be a big thing to deal with. >> okay. it's the new world we live in. we appreciate your time. james woolsey, former director of the cia. >> good to be with you. coming up, bank stocks have been rally all week on the back of a trump win, what will the banks like to see and when are

they expecting to see it? and we'll speak with the ceo of ethan allen, what trump presidency means for his business. record high for the nasdaq for the first time since september 22nd and 11 straight days of gains for the russell 2000. more "squawk on the street." more than an apparel company. we've always been an innovation company. using technology is a critical differentiator. changing the expectation that the consumer will have for what a sports brand should be for them. this is where we're going to need a big, bad, technology partner. bring in. cue the bell. sap. under armour is a live business. we can anticipate the issues and needs that you're going to have using live data,

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what a week it has been for the banks, rallying in part at least because of expectations that a trump presidency will mean a rollback in regulation, particularly of course dodd/frank. wilfred frost is with us for the hour. he of course focuses on this area, has been taking a look at it and how any regulatory change might materialize, wilfred, is certainly a key question, not to mention how long it will really take if it does materialize. >> exactly right. so i've spoken over the last week to sources at the major banks and the main takeaway is they feel the optimistic expectations are premature, one senior source saying investors seem to have very wide eyes in terms of what is both possible and likely. second takeaway is that repeal of dodd/frank is not expected, not at least because it would require 60 senate votes, but it's also not even wanted by the banks. for most of the banks they welcome the general increase in safety in the system compared to a decade ago. now, if repealing is off the table, goldman sachs points out it would be easier to change the

way dodd/frank is implemented in particular relating to things like capital rules, ccar process, consumer protection initiatives and funding ratios. the other point, banks would definitely like to see more transparency in terms of how regulators reach their decisions and who is appointed to certain positions. so overall the sense of optimism comes more in terms of no extra regulation which may for example arrived under clinton as opposed to expectation of a definitive rolling back of existing rules. of course, important to also note the affect of the rising and steepening yield curve happened on bank share prices as well as the less talked about factor of possible lower corporate tax. morgan stanley estimating a 12% boost to sector eps if corporate taxes ended up at about 20%. >> one of the things that banks seem to have come to grips with is the fact they have to hold certain levels of capital for a rainy day. it's a cushion. it's a safety net. but they have 500, 700 people working on this stress test

alone in some cases. >> right. >> and if you are an employee in one of those units, do you feel you have job security right now? >> that's a tough question. again, i don't think they're going to see it rolling back. and the banks on both the position of capital and in terms of implementation, they feel they've done all the work to get themselves compliance in recent years, therefore not desperate to see it rolled back, they want clarity of where it goes moving forward. in that light if we roll back a month or so both on rate hikes in terms of the yield curve and regulation, it should have been seen as a bonus if either of those improve because u.s. banks were already making money, very stark difference to european banks who really need those changes to come through. >> any sense at all in terms of timing, wilf, to the idea we're not repealing dodd/frank but conceivably there will be some changes made? there's a lot that this congress is going to be dealing with in its early days not to mention tax reform. >> uh-huh. >> but any sense from the bank executives you've spoken to in terms of what their expectations are for when we might see something? >> look, they're reticent to get

out, they don't want to get out ahead and say we want to see x, y and z. but i think they would like to see what happens in terms of appointments to some of these departments and the direction the government gives to the agencies in terms of what they're carrying out. that's a relatively easy fix that can happen in the first months or years of the presidency. in terms of more meaningful changes, you know, within dodd/frank for example could the as a ru vol car rule change -- >> only took them seven years to get it right? you reported on this endlessly. >> morgan stanley still trying to get out of some of its hedge fund stakes, they're still figuring it out. the thing is it's a tome that legislation. >> yes. wilfred, thank you. >> pleasure. >> the effects of the presidency are also hitting manhattan, midtown manhattan to be precise. our robert frank is on fifth avenue. he's outside the trump tower. and i guarantee there's a lot of traffic out there as well.

>> reporter: yes. very bad traffic, david. and the new york mayor and new york police department expected today to announce a plan somehow to accommodate the needs of both our next president and the needs of the residents, the shoppers, the companies and the traffic in new york city. mayor de blasio of course meeting earlier this week with mr. trump, but they did not talk about the issue most important to new yorkers and companies here, and that is the traffic and the security. now, behind me when these buses get by is trump tower, that's where mr. trump has been holding all his transitional meetings and where his company is based. this has become a huge fortress, lots of security here. and it's impacted a lot of the retailers. you've got tiffany's, abercrombie & fitch, we are heading into their main shopping season and that store remains

barricaded. cowen's analyst no way to sugar coat this, the big worry is what will happen over the next few months. and the head of the business district in mid manhattan says traffic in retail stores has dropped dramatically. as to what they can do or announce this afternoon there's talk of maybe closing a lane here on fifth avenue, that would impact a lot of the bus traffic, emergency traffic and bridge and tunnel traffic that comes through here. they're also talking about perhaps bombproofing the entire bottom three floors of trump tower. it's glass. it's very vulnerable. they're talking about replacing that glass with bombproof windows. so far mayor de blasio hasn't shown a lot of sympathy for the retailers here saying, quote, i will not tell you that gucci and tiffany are my central concerns in life, but david, as we know, there's a chain reaction in manhattan where if one part is choked off, you have reactions to all of the businesses in the entire area, the restaurants, hotels, condo buildings.

so this isn't just a three-block problem, it's an entire midtown manhattan problem. hopefully today we'll have some solution for how to make this sustainable, especially if trump continues to spend time here when he becomes president. guys, back over to you. >> mayor better be thinking about the budget, tax receipts and money we're spending on the police there for sure. robert, thank you. be sure to stay with us. coming up we'll speak with a manager located across the road from trump tower. we'll see how the president-elect's presence is impacting the business. when we return the ceo of ethan allen will join us, how he's preparing for business for president trump, immigration and much more. stay with us, you're watching "squawk on the street." since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed-

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or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com. welcome back to "squawk on the street." ethan allen ringing the opening bell this morning as well as announcing a partnership with disney. what's the state of retail in the american consumer? and what can business expect under a new trump administrat n administration? joining us now is the president and ceo of ethan allen, farooq kathwari who also chairs the muslim jewish advisory council. a very good morning to you,

farooq, thanks for joining us. ringing the bell this morning because of the launch of this new partnership with disney. tell us a little about it. >> first of all, good morning. good to be here. you know, ethan allen is an iconic brand. we are around for 84 years. and like all great things in this world, things happen by accident. a year back we took our grandchildren to disney world, i saw in our 5-year-old this smile, the glean, so i called up the ceo of disney who i know i said we have not collaborated with anybody but we think maybe there's an opportunity of creating an ethan allen disney magical home. not just products, a magical home. and with your iconic brand and ours. so anyway, the process started. it's taken a little over a year to develop a great, great program. and objective is really to take the great ecology we have with ethan allen, the fun, magic disney brings in, combine the

two together. and today of course we launched it on mickey mouse's birthday. >> and this is aimed primarily just for children's products, children's bedrooms and things like that? or is it a larger suite of products perhaps aimed at people like me? >> it's more than children. what we did was we started of course with the baby. so we got cribs, toddlers, little older children, and then we have the home and that is where the parents live. today if you look at parents who've got young children anywhere from 2 years to 6, 7 years, their homes represent almost a playground inside the home. so what we have developed is this home for young people with young children. >> mickey mouse bedroom, it might be on my christmas shopping list. we'll see. can we talk a little about the election as well? did you see a slowdown in effect in terms of consumer spending as the election was approaching? and have you seen a bounceback since?

>> well, you know, there certainly has been -- it doesn't matter who the candidates are because of the tremendous amount of advertising and unfortunately negative advertising, it does create concerns. so we did see some people holding back. but not as much as i thought would take place. i think there are other factors. people say somewhat concerned about the economy, people are concerned about the changes taking place even the way people are buying today. when we talk about the change, what people have today i think to understand 70%, 80% of earnings sales starts on digital mediu mediums. it's had impact on genre tail. all those factors have to be taken into place, but i'm glad the elections are over. and i think that we do see the positive especially look at the stock market has done well.

for our consumer that's an important element. and i believe that is going to help us really move forward. and as far as elections are concerned, i think certainly the country needs change. meaning, you know, we as 84-year-old enterprise reinvent ourselves. in the last ten, fifteen years, we have stalled. it's got to be done sensibly, with wisdom. and that i think is -- >> apart from your role as ceo i'm just curious, wilf mentioned the muslim jewish advisory council, you're co-chairman, michael flynn is now the national security advisor for the incoming trump administration. he's somebody who has said or i believe at least tweeted, fear of muslims is rational. are you concerned at all? >> well, you have to be concerned with those kind of statements. you know, i normally get involved with any group like that is always something an uneasy decision.

when senator lieberman or ask me i should get involved in co-chairing along with the ceo of henry shine, so he's co-chairing it with me. >> stan bergman. >> we got together. we said if we don't stand up, but what we did was we don't want to talk about the people having discriminated. what we want to talk about is show the contributions of jewish and muslims in america. because there are a lot of contributions. so what you're going to see is that's where the focus is. we don't want to talk about the fact people are going to be discriminated, people are going to -- the best way to build a brand is to show the positive contributions. and that's what we plan to accomplish. >> farooq, thank you very much for joining us. a pleasure. >> when we return, major slowdown on fifth avenue as the president-elect continues working from trump tower. we'll head there and speak with a store manager on how his business is being impacted ahead

of the all important holiday season. stay tuned.

good morning everybody. i'm sue herera. here is your cnbc news update at this hour. president obama joining leaders of key european countries in berlin to discuss an array of security and economic challenges facing them. it is likely president obama's last such meeting before he leaves office. daily fantasy sports rivals, draft kings and fan duel have agreed to merge. no financial terms were released. the deal is expected to be finalized in 2017, but still requires federal approval. and that might not be easy to obtain because combined the two control nearly 90% of the

market. volkswagen says it will cut 30,000 jobs as it tries to recover from its diesel emissions scandal. at a news conference at the company's headquarters, officials said 23,000 of the job cuts would come from germany. the cuts will save some $4 billion a year beginning in the year 2020. and thanksgiving dinner will cost you a little bit less this year according to the american farm bureau's annual survey, the average cost of a feast for ten is $49.87. and that is 24 cents less than a year ago. that's the news update this hour. i don't know how you feed that many people on that amount of money, but gobble gobble, david, back to you. always try. thank you, sue. it's been something we've been discussing all week of course police barricades, trump protesters on fifth avenue and how that can hurt retailers on that street who are of course trying to gear up for the holiday season. upscale shoe manufacturer

crockett and jones is one of those retailers right around the corner in fact from trump tower. joining us now kevin hill, he's the store manager at crockett and jones. mr. hill, what are you seeing in terms of foot traffic to your store in the last week or so since the president-elect being holed up there in trump tower? >> well, it's been a mix of trepidation and exasperation, a lot of people -- we're a destination business, we're the only store in the united states for our company. 50 yards from trump tower and there are a lot of people that come to us just to get our shoes, and they have called us, can we come, haven't made it through, haven't been able to make it down the street as 56th is closed on both the fifth avenue and sixth avenue sides. it really has affected local walking traffic as well. >> kevin, is this just a short-term negative effect for long-term positivity? i mean, when mr. trump moves himself off to washington, trump

tower might be an iconic place to visit sort of boosting the value of the area you happen to be in. >> well, i guess that's a way of looking at it. i mean, i certainly hope it's not the new normal just because i think people would be hesitant, possibly, to go by a place as exposed as this is even if there are barricades all over the place. i just don't, you know, normal new yorkers are used to walking through traffic. but this is a different type of traffic for us. so whether or not that's going to bring people that will shop in our store or in the neighboring stores and independent businesses up and down the streets remains to be seen. >> kevin, one of those different types of traffic that i'm sure you guys are seeing is media. they're calling it white house north and there's an expectation that throngs of the white house press association will need to be on those blocks at least a few days a week going forward. will that not offset some of the business that you might lose?

>> perhaps. i mean, there's the novelty effect of when people see cameras they're going to be attracted to the cameras and the lights. but once again, you know, as they say we're a destination business and people want to make their way to us. if they think it's difficult to get there, they're not going to bother. and it's really kind of -- it's the hand we've been dealt. >> it is. but you know, mr. hill, there's also the possibility that the president when he's actually in the office chooses to come to new york. who knows, could be a couple of times a week some people think. we'll see. are you having conversations with your headquarters about moving the store? if in fact that does come to pass. >> of course. of course. you know, for us we have -- we considered it, we're in the process of actually relocating across fifth avenue, but it's still going to be right in this neighborhood. and right now i'm thinking of moving 3,000 pairs of shoes around the corner with all the

roads blocked off and wondering how in the world i'm going to do that. do i have to get police approval? secret service approval? it's kind of ridiculous, actually. >> all right. well, we'll be checking in with you as things go along. and of course we'll see once inauguration day comes whether mr. trump or the president spends a lot of time nearby. thank you, kevin. appreciate it. >> thank you for having me. thank you. >> coming up, unifying america. why our next guest says president-elect trump should do what he does best and build something to bring the country together. we'll speak with pulitzer prize winning "new york times" columnist jim stewart.

are the bond vigilantes back? we asked the man who coined that term, noted strategist. find out what he said on tradingnation.cnbc.com. more "squawk on the street" coming up.

welcome back to "squawk on the street." stocks near their lows in early trading, but still only fractional losses so to speak. the biggest drag so far the health care sector you can see down by around 0.75%. around 60 stocks in the sector, only six stocks are positive right now. biggest laggards allergan, mylan, gilead, the sector lost 3% year-to-date and second biggest sector out there so certainly paying attention. back to you. >> thank you very much, dom. president-elect donald trump busy working to fill high level administration positions this morning officially picking alabama senator jeff sessions for attorney general. michael flynn is his national security advisor, and kansas republican congressman mike pompeo as the director of the cia. meantime, with protests continuing, our next guest says to heal the divide a president trump needs to build something inspiring. joining us here at post nine pulitzer prize winning "new york times" columnist jim stewart. we were talking just during the break, you've gotten a lot of

feedback already on this column which says let's do something big and bold and build, which is what of course he knows how to do. >> absolutely. this is what trump has said he does best and he has a track record there. somewhat to my surprise i've gotten this avalanche of responses. i think there is a tremendous hunger out there for something we could all rally around. and a great public works project program. i think it's exactly it. it cuts across the divides. it provides jobs to a lot of the disaffected people that voted for him. it inspires americans. it builds for the future. it boosts the stock market. what's not to like? >> what can it be? i mean, i can think of a lot of things, high speed rail for example would be interesting. >> high speed rail is a big one. i ask this guy, dan mcniblg, he's a journalist, an author, expert on infrastructure. in fact i've never met anyone so steeped in this and he came up with ten ideas. i said, look, mingle around the

country, some red states and blue states and came up with a fantastic list starting with the hudson rail tunnel, which is already planned, a bridge to connect detroit, a new dam system for south carolina, sewage and water tunnels for cleveland, ohio, and the high speed rail, which is both underway in california there's a plan for one in texas and then one that really excites me was one of those magnetic high speed trains that would connect the northeast corridor. you could be in washington in under an hour. by the way china already has one of these. you can get from shanghai to the airport in seven minutes. >> i think trump has discussed this, but when you go to china and rail stations or airports, you are mesmerized by the simple size of it and the architecture, it's incredible. >> i think that's one of the lines. when he, like i said, we're like a third world country, everybody was saying, well, yes. have you been to newark, by the way naming opportunity, newark doesn't have a name on the airport. i didn't even mention airports, but you could do a lot with airports. another thing that i liked when

i looked at the estimated price tags on these things, yeah, they're big, we're talking billions for most of them, but they're not that big. they're doable. now, the one caveat i'll mention is in the depression era we did all these great things, unemployment was, you know -- >> 20%, right? >> huge. 25%. unemployment now is 4.5%. and some people have said can we absorb this sort of spending without adding to inflation and wages? but i would say to that, first of all, a lot of people and some of them have voted for trump, i think, are going to face losing their jobs because of technology. i mean, if we have self-driving trucks, self-driving cars, there are a lot of people there who could shift into some of this activity. and secondly, what if it does raise wages a little bit in that sector? i mean, that's the core, you know, so-called working class who supported him that's going to benefit. so i don't think that's all bad. >> in your column you talk about president obama's infrastructure platform and how we really don't know anything that's come out of

it. but the most iconic infrastructure projects in our country, the golden gate bridge, hoover dam, are part of the new deal. which is basically the antithesis of how republicans today think. and we have a republican controlled congress. do you think borrow and build is actually a policy that can get implemented? >> i think it could. i mean, look, a big difference between obama, and i think the obama infrastructure thing was a big disappointment. i don't entirely blame him because the republicans blocked him, but a big difference between obama and fdr is obama kind of delegated the state, said what do you want, we'll write some checks. fdr was totally hands on on this. every single one of those projects went to his desk and he signed off on them and he did not want to fiddle around with things like, you know, asphalt paving and stuff like that. nobody remembers. i looked up what happened under obama and there were a few rusty bridges knocked down and replaced with concrete slabs in obscure parts of the country. so who cares, what did that do? not much. so i think there is a massive opportunity here if trump wants

to step up to it. >> jim, timeline realistic that this could start happening in the first year of his presidency? >> oh, it could definitely start in the first year. i mean, the ten projects i mention in the column are almost all of them have a lot of work behind them and are pretty much ready to go. that doesn't mean they're going to get built in a year. these things are very long term projects. they'll go on long beyond when he's still in office. but you've got to start now to have it coming online in ten, 15, 20 years. >> jim, we look forward to hearing more from the comments that you're getting. very interesting. but thank you for joining us as always. >> sure, thanks. >> jim stewart. let's send it to jon fortt with a look at what's coming up on "squawk alley." jon. >> hey. well, we are going to talk about twitter. they're continuing to have a hate speech problem. how are they dealing with that? is it enough? also, tech under president trump. analysts are still crunching numbers and have evolving ideas on what that will look like and apple and holiday season.

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technological changes that have already come to chains such as starbucks and dunkin' donuts in the u.s. we caught up with steve easterbrook yesterday and asked him what the company learned by waiting. >> we learned two different things. first of all, you can learn and understand what other businesses and other competitors will trying to do, but also we're learning from mcdonald's elsewhere in the world. we have very advanced stage of rollout of this in canada, in the uk, in france, in australia, so therefore they're almost like a live learning lapse that can bring a more finely tuned, we can get the kinks out, get a pump more honed business model and bring it to the u.s., which is our largest market. if you want to scale it here, you want to scale it right. so you're right, we're not always going to get first mover

advantage, but we have an phenomenal scale advantage and that's what we think differentiates us from everyone else. >> we asked him if he thinks president-elect trump will be good for mcdonald's. >> way too early to tell. clearly we can hear a lot of the languages being used in the run-up to and through the election. time will tell how much of that will be put in place and what that means for us. so i assure you, we're not going to spend much time guessing. we focus on what we can control, which is our business, and that's where our concentration is and where our passion is. >> the key to that business also the relationship between the parent and the franchisee, so many of these changes being implemented by those franchisees. >> still to come on "squawk on the street," resorts, golf courses and more. we break down how president-elect trump's businesses are doing now that he's heading to the white house. ♪

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using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company optum powers modern healthcare by connecting every part of it. so while the world keeps searching for healthier we're here to make healthier happen. president-elect donald trump has many businesses in travel including golf courses, hotels and resorts. susan lee looks at how his brand is doing now that he's president. >> before he became president-elect, donald trump was busy making money in hotels and golf courses, and i just want to remind our viewers that,

yes, it is a global business with hotels and golf courses dotted all around the world. take a look at the map. trump hotels are not only in the u.s. but also in canada, panama, ireland, and soon to be in brazil. golf courses in dubai, scotland, ireland, and also across the united states of course. so has the trump name and trump's global leisure business been impacted by threats of the campaign to say fence for mexico, labeling china a manipulator and renegotiating trade deals? according to those at skift, after the election over 50% of the 1,500-plus respondents say they would be less likely to stay at trump brand hotels now that he is the president-elect and soon to be the next u.s. president. royal jordanian airlines used trump to advertise travel saying go to the u.s. before you can't in the future. travel comparison website hip monk noted that bookings at

trump hotels have been down 59% from the first half of year, four square says foot traffic is lower by 17% at trump properties since announcing his candidacy. there are those who argue that victory will improve the trump travel brand. brand keys, a marketing consultant, conducted a survey of over 1,200 voters, sentiment rebounding after the win to even surpass the feelings before he announced his kand da di, believe it or not. back to you. >> thank you very much for that. let's have a quick look at the markets. we take a little bit of a leg down in the last half an hour or so. we're down about 0.2% for the dow, a quarter of a percent for the s&p, the nasdaq down about a quarter of a percent. it's been a strong week, a strong ten days since the election. yesterday banks the best performing sector. the ten-year note 2.32%. now, that's it for "squawk on the street." over the kayla for "squawk

alley." >> good weekend the to you, wilfred. thank you. good morning. nearly 8:00 a.m. at twitter headquarters out west, 11:00 a.m. on wall street and "squawk alley" is live. ♪ >> friday friday. welcome to "squawk alley." jon fortt, rick santelli, here at post 9. rhee code executive editor kara swisher will discuss all things tech. before that, there are major announcements from the trump transition team. john harwood has the latest. >> we've got three hard line