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

announcements from the donald trump transition today. first of all, jeff sessions as the choice for attorney general. the alabama senator is someone who's been a sharp critic of immigration both legal and illegal, someone who was rejected by the senate for a federal judgeship during the reagan administration because of his racial views. then for national security adviser, lieutenant general michael flynn, a fiery critic of what he calls radical islamic terrorists, and he is very forward leaning in using that term. and finally, congressman mike pompeo from kansas, who is a tea party member, also somebody who's been very confrontational in terms of going after islam and calling it in terms that the obama administration has said were counterproductive to the fight. now, mike pence, the vice president elect, who is now leading the transition, expressed satisfaction today that everything is moving on

track. >> making great progress. great working with the president-elect. he is a man of action. we've got a great number of men and women with great qualifications come forward to serve this new administration, and i'm just humbled to be a part of it. our agency teams have begun to arrive at agencies in washington, d.c., this morning. we're beginning what we're very confident will be a smooth transition that will serve to move this country forward and make america great again. >> so true to mike pence's words, we got some action today. a lot of appointments left to go, but these are appointments that, despite spieth the hopes of some that donald trump would moderate, move the the sent, don't see that in these national security positions that vindicate his primary commitments on immigration and on the fight against isis, guys. >> all right. thanks so much, john.

we know you'll bring us the latest developments when you have them. moving on, no quick fix in social media's fight against hate speech. just hours after twitter announced sweeping changes to fight hate on its platform, one twitter user posted a screenshot of an ad on her time line titled "new article: the u.s. was founded as a white people's republic." the ad was promoted by the analysis funded account new order twitter 1488. twitter ceo jack dorsey apologized for the mistake tweeting, "we made a mishere and we apologize. our automated system allowed an ad promoting hate. against our policy. we did a retro and fixed." dorsey admitted earlier this week the new steps would not suddenly remove all the content from the site. facebook and goog rl also making attempts to combat hate and fake news. i believe we are joined by kara swisher on the news line right now. kara, what do you make of the firestorm that has surrounded these social media companies in the wake of the election? >> well, they deserve it.

you know, they haven't done anything or enough to battle all these issues online. and now, you know, it's coming home to roost for them. i mean, these things have been going on for years. obviously on twitter it's been an ongoing issue and one of theish shouse around it not being sold. a lot of the companies that were looking at it didn't want to get pulled into the cesspool they have to deal with there. and so, you know, now it's affected obviously google and facebook. and they're getting much-deserved criticism for not cleaning up fake news and abuse and things like that. >> kara, to what extent might this be unfixable in a total sense? is this kind of a denial of truth attack? we know about denial of service attacks and how those can bring down servers. in a sense, fake news, there's a flood of it even coming in from overseas, and hate speech in ad platforms, is some of this always going to slip through? >> well, it's going to slip through, but come on, jon, they count every other ability to

deliver the right apps to you. you know, we did eric spring, we did this, we did that. they out the their abilities when it suits them and then when it's difficult things -- and it's no more difficult than other things they need to do on these platforms. they can certainly target these things and they can focus on them. they're apparently the smartest people on earth so they should be able to handle them. so they can't benefit from social media and make all this money around a lot of things then act like they can't deal with this. they absolutely can. they absolutely can do it. it may be harder and there may be things that slim through, but they have to be proak twhichb they do and take care of it just like jack did with this, he immediately addressed it and they removed it from the system. and they're going to have that happen. it's an intent on the part of these companies to do something about it. >> kara, yesterday in berlin at an appearance between president obama and german chancellor angela merkel the discussion ranged from the refugee crisis to the fight against isis, but

the president took his own swing against the fake news issue. let's take a look at that. >> because in an age where there's so much active misinformation and it's packaged very well and it looks the same when you see it on a facebook page or you turn on your television, if everything seems to be the same and no distinctions are made, then we won't know what to protect. >> kara, obviously, the discussion has risen to the utmost level. but on one hand you have an outgoing president who is criticizing this trend and on the other handle an incoming president who is arguably benefitting from this trend. how do you handle that? >> well, it's interesting. i mean, just the other day donald trump tweeted three demonstrably false things like he was the president-elect actually tweeting falsehoods. so, you know, that's different. you can't -- i guess you can't pull someone off because they put things that are untrue on

there and then people have to counter them. but things like fake news and the hate ads can easily come off. these are things they can do thing sthipg with. you're right, you have someone who used twitter and is quite good at it to great effect and has bragged about it in the "60 minutes" interview. i think they can still make these safe places for people to have intelligent discussions with each other. again, you're going to have a lot of idiocy on both sides, but you don't have to allow abusive stuff, things that are demonstrably false to get through. again, this is business. they shouldn't want to have businesses where this is an issue. it brings it down. it makes it a bad experience, and it creates all kinds of social impact. i think the thing is they pretend, like we're just platforms, it's not us. we can't -- you know, we're not a media company. well, they are media companies in a lot of ways so they have the responsibility -- you know, they want to be technology companies when it comes to

valuation and multiples and then when they have media parts kr which they absolutely do, they don't want to take the responsibility. guess what? half the people get their news from facebook. it's their responsibility to do something about it. >> we wondered allowed earlier this week whether this would become as big an issue for facebook, twitter, google as counterfeits are for alibaba. still rae re mains to be seen. thanks for joining us today. >> thanks a lot. >> kara swisher from recode. speaking of twitter, president-elect donald trump controversy on twitter claiming he persuaded ford to keep an auto making plant in kentucky rather than moving it to mexico, isn't clear the company was planning on moving that particular plant in the first place. phil lebeau will sort this out. phil? >> john, this is a win for president trump in terms of saying i'm keeping production of a certain vehicle in kentucky. here's the tweet he sent out last night. we'll give you some context into what's happening with ford. president-elect trump put out a tweet saiding, "just got a call

from my friend bill ford, chairman of ford, who advised me he will be keeping the lincoln plant in kentucky -- no mexico." the lincoln plant is actually the louisville plant and it's where the lincoln mkc is built. it was never going to move. the mkc only a small part of what they build. just 9% of its production last year. that vehicle was supposed to end production in kentucky by 2019 and production of it, if it continued, likely would have moved down to mexico but not until well into the future and that was never finalized, by the way. this decision by ford to keep mkc production in kentucky comes just a few days after we talked with ford ceo mark fields about how the company is establishing or keeping its production plans set here in north america. >> you have to keep in mind the production and supply chains are deeply integrated between the three countries and that integration also supports a lot of american jobs. so we seal how this plays out. >> in other words, they make their decisions well in advance

and then they execute those decisions including keeping small car production on the path that it currently is to a new plant in mexico, moving it out of michigan, then replacing the production in michigan with a new suv and a new pickup truck. the bottom line is this, guys -- mkc production, it's not a lot, but it will be staying in kentucky at least through 2019 and then we'll see what happens with that model going forward. >> but, phil, is there a cause and effect here? that's what's unclear. has this happened because in of something that president-elect trump said or did or was ford going to do this anyway? >> ford says it is reviewing and always reviewing its production plans. the fact that they had not established what would happen with the mk dplshgs the future, it's pretty clear that bill ford, if we read between the lines, probably said to president-elect trump, you know what, we were thinking about the future for this vehicle, might have gone to some other plant, we'll keep it in louisville, kentucky. president-elect trump can they say, look, i kept these jobs

here and i kept production here. >> phil, thanks very much. we want to give you a check on the markets this morning. a slightly negative open, the dow down about 42. the russell 2000 slightly in the green. that's been on a ten-day winning streak. the nasdaq also hitting an all-time record high a little bit earlier. when we come back, tech making a comeback this morning after a rough few trading days. cantor fitzgerald's yousef scully is next. and apple getting ready for a holiday season without its highly anticipated wireless air pods. we'll speak with the "wall street journal" wee's joanna st on what we can expect. and one of the biggest online lernlds weighs in on banking under president trump. the ceo of on deck will join us. ♪

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welcome back. our next guest looks as how the trump presidency could affect tech stocks like netflix, amazon, google, and others. there could be hindrances. yousef scully is an analyst at cantor fitzgerald. thank you. you know, it's interesting. so many things going on with the relative underperformance of megacap tech stocks like the

ones we mentioned there. first of all, growth stocks in general getting hurt because people were hiding there and now people want cyclical stocks. maybe there's some frictions overseas, strong dollar, all these other things. how do you sort out exactly what the forces are driving these stocks on a relative basis? >> okay. well, there are a few things. you have to put it in perspective. the internet group is up something like 16%, 17% year to date, the s&p 500 is up maybe 5 others or 6%. once you know, that you could say they've already discounted a lot of good news. the trump presidency has created a fair amount of uncertainty among a number of ings including net neutrality, and so, you know, the risk has gone up and therefore, you know, you have more discounting going on into these names. that said, we think that looking at the fundamentals, again, put in the risk, the political risk aside, looking at the

fundamentals, looking at q-3 results, now the consumer is setting up -- is set up for q-4, both here and in europe, we think this group continues to do really well. and so we're recommending that people take advantage of these pullbacks, the 6%, 7%, particularly in the high-tech, the large cap names to establish positions, particularly if you're interested in investing for more than three months. >> it seems to me that a mistake that investors make all the time is assuming that the market was fairly valued before some big thing happened. so buy on the pullback kind of assumes, well, things were fairly valued, now they're cheaper. what if they weren't? what is the likelihood as many people were saying about a lot of these stocks, the internet stocks, big-cap tech stocks and particular, were richly value and therefore it might not be such an opportunity to buy on the pullback? >> look, then you have to just look at the valuation relative to the value of the assets,

right? i mean, fl you take a look at alphabet or google, that is company that's still growing at 20%, has ebitda margins or profit margins north of 50%. it's trading in line with the s&p 500, 16, 17 times p/e. you strip out the cash, it's trading cheaper than that. facebook, arguably more expensive, is still trading at a discount relative to its growth rate. even if you don't want to look at relative valuations and look at the fundamental fair value of these names, as long as you're willing to own them for at least 12 months or more, i think they're cheap. >> yousef, i guess tactically that could make sense, although i would note that there have been at least four 15% or 20% pullbacks in the fang group in the last three or four years so do you think this has run its course already? >> that's the $16,000 question. we don't know that. i think frankly between now and january 20th we're going to probably see a lot more

gyrations in this group. but, you know, we're getting -- we get paid to look at this group over the longer run, not short-term trading. on that basis, we think this could be a nice opportunity to, you know, establish a new position. >> youssef squali, thank you very much. appreciate it. >> thank you. >> when we come back, drilling down on president-elect donald trump's first cabinet picks. former cia director john mclaughlin is coming up next. and later, nascar's sprint cup series caps off this weekend. we'll speak with joe gibbs. his drivers are expected to place this sunday. attention: are you eligible for medicare?

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welcome back to "squawk alley." going to have a little check on the markets. overall pretty flat, but a little bit to the downside as well. the dow off the least of the three. the s&p and the nasdaq both down about a fifth of a percent. >> you did have the nasdaq set an interday record earlier in the session, mike. the dow, the s&p, and nasdaq all on track for a second straight week of gains and putting november as the best month of the year for the dow. >> and the russell 2000 small cap, which has been where the action has been. and the bank stocks up another half a percent today. what's working is working well. outside the financials the s&p up less than 1% since the close on election day. now, we had drama overnight and a big comeback from that. but it's really been sector based. >> what about energy? >> you know, energy obviously had a good year coming into this, right? we had crude pinned right around $45. i think it's dodged a bullet, but the cyclical trade is working.

that would include energy. >> all right. donald trump's administration beginning to take shape this morning with a few official announcements. the president-elect picking alabama senator jeff sessions for attorney general, retired lieutenant general michael flynn as national security advisor, and kansas republican congressman mike pompeo as the director of the cia. joining us on the phone former cia acting director and deputy director john mclaughlin and former u.s. attorney general michael mukasey. let's start with you, mr. mclaughlin. on these appointments and the seeming prioritization of national security in these appointments. >> yes. i think it's encouraging to see that they're turning to national security early and the cia director nominee is not someone i know personally but who, based on what i do know, seems to be a good choice for that job. >> mr. mukasey, comment on jeff

sessions for attorney general. it's hard to imagine a more harder turn away from eric holder and loretta lynch of the obama administration to someone who has taken a very tough line on immigration and has been in the senate for quite some time. >> well, i think it's a terrific appointment, and it's hard to think of -- it's impossible for me to think of anyone who would have been better. this is somebody who knows the department by virtue of having dealt with it as a member of the judiciary committee for many years. he's a former u.s. attorney and somebody who's firmly committed to the mission of the department and to upholding the rule of law. i think it's an outstanding appointment and i think it will be well received, should be well received in congress and within the department itself. >> john, you certainly had to hit the ground running not in this exact situation during a transition but give us a sense if you're getting ready to take

over an sergeant agency like th what are the conversations you're having, the sorts of briefings coming in with a new administration? >> well, let me say first reason i think representative pompeo looks like a good candidate for this is he's a serious member of the house intelligence committee. he works hard to understand the issues. he's a west point grad, an army veteran, graduate of harvard law school. he's owned some small businesses. in other words, a diverse set of experiences. this is always good for a cia deck or the. you know, the important part of a journey for any member of congress here going into cia, the rubicon they have to cross is to leave the politics behind. and, you know, like any member of congress, this individual has had some strong views on controversi controversial issues, but i will say he's also shown in his congressional testimony investigations a lot of concern for analytic integrity, which

is, you know, a very encouraging thing. so i think this should be a fairly natural evolution for him. so in terms of conversations, i would say at this point in time i brought in new cia directors in my career. he'll be going out to cia at some point. i'm sure the director, current director, john brennan, has been in touch with him and offered him the services of the agency that to help him prepare for confirmation and also to brief him on any issues that he wants briefings on. he will have had some of those on the intelligence committee. often people who come to this position will contact former directors and deputy directors and have a conversation with them about the agency, how it operates, what its culture is, what are the things to know and to watch out for in terms of problems that a director can encounter. and he'll take some time to

visit the agency and get to know people a bit before confirmation. those are the things i would expect him to do and i think has a head start on being on the intelligence committee. >> do you expect the president-elect toll replace james comey at the fbi, who's serving a fairly lengthy term but has received criticism for his involvement in the electoral results? >> i have no idea. perhaps -- perhaps the former attorney general mukasey has a view on that. i have no idea. if i had to give you an opinion, i would say i don't expect him to replace comey. obviously there were some tensions that developed both sides of the aisle during the campaign, but i think these things, particularly when it comes to the fbi, tend to die away a bit after the election and i would be surprised if he tried to replace him. >> mr. mukasemukasey, i'll put same question to you. what do you expect to happen to the fbi? >> i think that's decision really for the attorney general and the president to talk over.

and i'm sure they will talk it over. personal expectations, i would be somewhat less surprised if he were replaced given the questions that have been raised about both the confidants they have within the bureau and outside of it, but that's something for the president and the attorney general to work out for themselves. >> i'd like to change the subject a little bit, mr mr. mukasey, and ask about this perceived mixing of business and diplomacy on behalf of the trump family. we're still figuring out whether in fact president-elect trump would be seeking top security clearance for his son-in-law, jared kushner, but we did see his daughter, ivanka trump, sitting in on the meeting with prime minister abe of japan yesterday. is there more than meets the eye here? what should the public think? >> i think what the public should think is he has members of his family who he regards well who have provided personal

advice to him. i don't know obviously i'm not at all a confidant of his or any of the members of the family. i don't know the precise reason he asked for security clearance for his son-in-law. i think he anticipates the possibility that he might want to seek his judgment on some issue the way you would now bounce ideas off people. and if a classified topic happened to come up, he wouldn't want to have to stop talking and think three or four times before going further. i think we're talking about somebody who's going to be involved intimately on a day to day basis but rather more casually. again, i don't know. that's just my guess. >> if you were advising the president-elect, would you tell him to liquidate his stake in his company? >> the president-elect knows about what his business relationships are. and what's feasible and what's not. i think obviously he can't continue to have any involvement

on an ongoing basis. i'm sure he knows that. >> right. well, there is very little precedent for what we're seeing that is for sure. thank you. michael mukasey, the former attorney general of the united states. our thanks to both of you today. >> thanks very much. >> still to come, black friday is just one week away, but no air pods in sight at apple. so what is the world's most valuable company have in its lineup for the holiday shopping season? we'll take a look next. and later, it's not just the election showcasing some questionable language. some corporate earnings calls are also guilty. what 'cause it medoes it mean f? ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here.

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hi, everybody. i'm sue herera. here is your cnbc news update that the hour. president obama departing germany after a two-day visit, heading to peru for the final leg of his foreign tour. he'll attend an economic trade summit with asian pacific countries. rescue teams recovering another body from a mine in southeastern turkey raising the death toll there to four. another 12 will still missing and officials say the chances of reaching them alive slim. the mine collapsed late last night. fiat chrysler is recalling 89,000 vehicles to fix possible fuel leaks or problems with windshield wipers. among those involved in the recall, 2016 dodge durango and jeep grand cherokee suvs and

2016 discharge dart compacts. a dress worn by marilyn monroe has she sang happy wirth day to john f. kennedy has stoesold for $4.8 million at an auction. the buyer was rippley's believe it or not. it was so tight shay thai had to sew her into that gown. >> i believe it. but she was gorgeous in it. stocks falling in today's session, italian banks among the big losers on continued worries about nonperforming loans. europe's markets still higher on the week. the dollar has strengthened and the euro has marked its tenth straight decline against the greenback. that is the longest such streak since the euro's inception. of course, we have a few weeks to go before the italian referendum, which could move it further. volkswagen off its highs of the session after announcing plans

to cut 30,000 jobs including 23,000 in germany at a conference in frankford, ecb president mario draghi said withdrawing qe depends on a sustainable inflation increase. bracing for a trump presidency, draghi also spoke out about scaling back bank regulation. and president obama wrapping up his european trip meeting with eu leaders in berlin. he urged them to continue close cooperation with the u.s. during it will incoming trump administration. the leaders also agreed to maintain sanctions against russia for its intervention in ukraine. one week away from black friday and still no air pods. so what should we expect from apple as we kick off the holiday season? joining us now, joanna stern, "wall street journal" personal tech columnist and farhad nanjou, "new york times" tech columnist. joanna, you're here at post 9. >> and he left his air pods at home, i guess. this is my q tip and my dental

floss. neither of those in san francisco. >> the holidays are tough, joanna, and i believe it was the i-mac, apple had some trouble with delivering. i don't remember if it was last year or two years ago. but this is a brand-new product that they said was going to be ready that isn't ready. what do you make of it? >> also it's like a great stocking stuffer. it's a low-cost apple product you can see flying off shelves. >> 159 bucks. that's not low cost. >> that's low cost to apple. that's low cost in the apple store. what other options are there, a dongle for your computer or a charging cable? >> every kid wants a charging cable. >> it's a big gift this holiday season. yeah, it's a problem, obviously apple is struggling with some sort of technical issue. i don't think it's production. if there had been, there had been a limited run and sort of that limited rollout they usually do. also always makes them look good when things are low cost on shelves and they can't sell them. so, i mean, i think the other

big issue here is that the iphone 7 is going to be a hot holiday gift, and this is something that really pairs well with it, right? they cut that headphone jack off. people want this new wireless freedom. apple's called it courage, right, we all need to have the courage to use wireless headphones. >> farhad, does it matter? because there is a beats headphone that also uses apple's proprietary chip to pair with the phone so you can get that if you really want something. granted, that's more expensive. are they missing an opportunity here for the upside that's really significant? clearly it's not a samsung-sized problem. >> yeah. it's not a huge problem, but it is a problem. it's sort of one of these accumulations of problems we've seen in from apple over the last couple years. software problems or various different kinds of misses. i think joanna hit it when he said it pairs well with the iphone 7, right, like this was the thing that was supposed to

kind of give you some sense that it would be okay they removed the headphone jack. this is a nice accessory to have. they gave us review models, joanna and i and others, and it's hard to imagine using the iphone 7 without those because they really -- they really are nice and they work well. i don't see any technical problem in the review models they gave us. >> that's what's really interesting. i tweeted about this a couple weeks ago. i'm sad for people because i've had a really good experience with these. as farhad said, i love living with these. i always take them out on the subway. surprisingly, i have not lost them yet. it is amazing, right? >> you just jinxed yourself, though. >> true. i won't be able to replace them. i'll have to put a q tip in my ear. >> if we dial forward a few months, are we going to be saying in january and february, now that they're available they'll have this slow-season sales because they didn't have them at christmastime? nigh hope they make it in time for christmastime. no insight from apple. reached out to them yesterday.

i think -- i think the iphone sales momentum of the holiday is going to hold back these air pod sales in the future. i guess if you need them now you're probably going to need them later if you've got an iphone 7. thanks, joanna and farhad. we'll see how apple does. usually turn out to have a pretty good holiday season. >> they'll be okay. >> the iphone brand-new and new macbooks, they have a lot of stuff. >> thanks to both of you. coming up, you may have thought the language on the campaign trail was harsh but it was nothing compared to corporate conference calls if you can believe that. the nascar sprint cup series finale is this sunday in miami. still to come, we'll speak with the ownerer of one of the sport's top racing teams. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom?

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call unitedhealthcare today about an aarp medicarecomplete plan. you can even enroll right over the phone. don't wait. call unitedhealthcare or go online now. ♪ today on "the halftime report," someone who predicted trump's went would lead to a rally. and the stocks most overbought and oversold. and we're live with an nfl player today who saves and invests 70% of his salary. we'll see where he's putting his money to work today on "the halftime report" at the top of the hour. >> see you then. speaking in front of a congress yesterday, fed chair janet yellen defending strong banking regulations staking out a position in contrast to president-elect trump, who's advocated derrell gags.

noah, the base is not really regulated right now although some agencies in washington have been taking a closer look at it. what are you preparing for in the new administration? >> we're preparing for a number of different eventualities. i think we felt no matter who won the election, there's always ban lot of bipartisan support for fin tech. there is a chance for tech and financial services to bring capital to underserved populations. >> where do you think any rollback of regulation would help you? jpmorgan is one of your customers. >> absolutely. >> they use some of your data to sort of package and provide loan transparency. so would any edits to dodd/frank help your relationships with wall street? >> you know, i think they would definitely help on deck's relationships with commercial banks. i think what we see is we talk to a lot of commercial banks who are excited about the possibility of online lending technology to serve their customers better. what they worry about the is the attitude of regulators towards new technologies.

to the extent you see a dodd/frank get a little more relaxed or fin tech coming out of washington, i think that's going to ease some of the tension some of these banks are feeling and cause them to move forward. >> what's the case you have to make to regulators if not to big banks about what your advantage is? in other words, if it's not sort of skirting some kind of rule or having lax underwriting standards or something like that, what's your pitch? >> the pitch is one of economic growth. the data we've collected over the years, we've loaned over $5 billion now to over 60,000 unique smaul businesses. what we've seen is a dollar of capital deployed from a platform like on decks leads to about $3.5 million of output. that's something regulators can get behind. the other thing i think they're excited about is we're able to show our capital is going to businesses historically underserved by traditional banks. >> noah, are there any regulation, one or two in particular, you wouldn't mess with, guardrails important for public confidence in this new area you're staking out?

>> yeah. we think a lot of regulations are well intentioned and are there to protect consumers. one of the things we've been working on is a lot of self-regulation in our industry. we led an initiative around disclosure standards for online small business loans and tried to set a path that we thought regular lay tors would appreciate and really is designed to protect those consumers as they evaluate different financial products online. >> your stock is down about 80% since you went public pap lot of that is because of the perception of investors about the health of some of these platforms and the demand for some some of these loans. fit becomes easier for large utility banks to underwrite loans to underserved populations, why wouldn't that hurt your business? >> well, again, what we think would be the more likely outcome is we spent and some other platform have spent many years perfecting this technology to deliver capital. we i hit the will create an environment where banks will partner with companies like on deck. we view the next four years as

an opportunity for our company and the overall development of the space. >> whakt interest rates? there seemed at least an a perception they wanted peer to peer lending because of scarcity of interest rates. if we got a general increase in rates, will they have to go elsewhere or want to go elsewhere? >> we don't necessarily see that playing out that way. i think these asset classes are very attract frich a yield perspective and i think despite some of the drama we have in the industry early this year you've seen a rot of investors coming back into the space, deploying capital on the platforms. we have a really great pipeline of new investors we're discussing different arrangements with. so, you know, i think these diversified assets are very different than traditional corporate bonds. it's an attract tich strategy for mm-mm investors to pursue. >> noah breslow, ceo of on deck, appreciate you coming in. >> thanks for having me. >> the company has a market cam below $500 million, which can sometimes spark volatility when we talk about these companies. market cap was bigger when it

went public, but just a note to our viewers. when we come back, the owner of one of nation car's top racing teams. his take on this sunday's sprint cup finale, donald trump, and much more. when "squawk alley" returns. as we head to break, the major indexes sitting on small losses.

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campaign showcasing some questionable language. some corporate earnings calls are also guilty and investors are on the line. eric has more. >> obviously we saw a lot of bad language in this election cycle. but it does go for corporate earnings calls too. certain ceos just can't keep their language as clean as anybody else and who ask tough questions. many people still remember several years ago yahoo's colorful description of its own employees' work ethic. some research suggests some swaying could have a positive influence at work helping build credibility and confidence. our data shows that if you took

the companies who used the most profanity and put them in their own portfolio, they would in and out perform the market. a lot of that comes from the potty mouths at master card, among the top users of bad language. other household names include wynn resorts and yum brands. our favorite quote come from sally may telling everybody it's time to get the f out of here. back to you. >> wow. i never thought of master card as being the potty mouths, but -- >> they had a lot of different words. it's not just one particular -- when we look at their portfolio of bad words, they used a bunch of different ones. master card, very diversified in their language. >> eric, doing the dirty work, literally. thank you. >> i think so that. >> we'll be right back with the owner and co-chairman of joe gibbs racing. that's when "squawk alley" comes back. there's a lot of places you never want to see "$7.95."

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if you miss the deadline, you may have to wait another year before enrolling. call a licensed healthmarkets' agent now. call now. call this number by the deadline... and let healthmarkets find the right medicare plan for you - without cost or obligation. call now. nascar's winner take -- joe gibbs racing's kyle busch and card edwards monday the four drivers in contention. joining us now in a c nns exclusive is the owner and co-chairman of joe gibbs racing and prop football hall of famer, mr. joe gibbs.

coach gibbs, thank you for being th us this morning. >> hey, great, guys. good to be with you. mike, kayla, john. we're getting ready for a big weekend down here. >> it seems like it. i wonder if we could maybe start bigger picture here. you've been involved with two of the most popular fastest growing sports in the last couple of decades. both, though, showing some declines in tv ratings. people wondering about whether, in fact, the broader public maybe doesn't have the attention span for three hour race or a football game. do you think anything larger is going on there, and maybe anything has to happen at least from the nascar side to make it more appealing? >> yeah. i don't think anything is happening there. i think if you think about our sport this weekend we got so many -- think about our sponsors that are going to be here this weekend. we're going to have coke, toyota,ing stanley black & decker, sport clips, mars, accident interstate. our cars are sold out. a lot of those people will be here. some of the best marketed companies in the world. i think sports go through some declines, ups and downs.

football is going through some of it. we've gone through some of it. i think our fans, i can tell you this, they're going to be excited about what's going to happen here on saturday and sunday. >> yeah. well, i mean, you got two of the four finalists, you say, so what is that,? a 50-50 shot that you'll win this thing? >> i wish it worked out that way. i don't think that's the case. i think -- i got such great respect for jimmie johnson and joey logano. this is going to be a very competitive -- this is going to be an all out winner take all, and i think carl and kyle are excited to go, and although sponsors are here. it's going to a great weekend for all of us where, i think for our fans, we have dedicated fans and they're excited about motorsports and about what's going to happen on sunday. >> joe, what do you see as the future of nascar when it comes to technology? i mean, we see twitter now broadcasting some football games. they had one, was it, last

night -- thursday night? yeah, last night. they showed they're getting fans closer to the action. talking about it. what are some moves in the future that you would like to see as nascar takes further steps in digital? >> well, i think nascar is after it. i got to tell you, we're after the millenials. we know that it's going to be a -- think about aheiress. we have high sense, juniper. these are all technology companies. they understand isc at our seven tracks is just putting in wi-fi and all of the things to keep up with modern america, and we're after the millenials. we know what they want. they're high-tech. we're going to be right there with them. >> coach, mike mentioned nfl ratings at the top of this segment. you are the former coach of the redski redskins, and we spoke the other day to an executive at the nfl who is in the media division. he said ratings decline every election year, and they have since the early 1990s.

is that true? >> as best that i know, it is true. i just think sports at times they're like a lot of other interests in america. they can dip some, but i would say that the nfl is one of your best bets for having people attend and watch. we're excited about what's going on in our sport. we have a dedicated fan base. we have some of the biggest and best sponsors. some of the most -- best marketed companies in the world. it's going to be tomorrow afternoon we got game stop, high sense, dewalt, flex bow, interstate and june tiper. those are all high profile companies that are going to be here tomorrow for our xfinity championship. it's corporate america 38 weekends in our sport, and we're excited about the business world. i think they're excited about us. our cars are sold out. we got a great tv package. nbc is going to be doing a great job for us, and so all of that i

think for our sport, that's where we are headed as a sport. >> as i see the schedule if i'm reading it right, the race is going to be up against some of the late nfl games and maybe bleed over into the primetime game on sunday. where would you recommend people pay attention? >> right here with us this weekend. it's going to be all racing, and it's going to be excitement. hey, if they want to jump back and forth every now and then, but we want to make sure -- i think we'll get a lot of people excited about what's going to happen here on saturday and sunday, and i'm certainly excited about it. i can tell you that. this is one of the thrills of my life. this is one of the most unbelievable thrills you can experience. i've been thrilled to be a part of super bowls and now we're going to get a chance to be a part of motorsports championships. >> all right. well, coach, good luck on sunday. appreciate your time today. be sure to tune in.

>> i thought, hey, at least -- i thought i would get at least one question. trump hasn't called me yet on my appointment to the cabinet. i thought i would get at least one of those. >> there's still time. >> appreciate you clearing it up. zoo all right. >> be sure to tune in sunday 2:00 p.m. eastern for nascar's sprint cup championship. >> that's it for us on squawk alley. good weekend to both of you. for now we'll go to scott wapner and "the half." >> welcome to "the halftime report." i'm scott wapner. a tough trade this hour. the trump rally, and the great rotation. more records for stocks today and some new data showing just how much money is pouring out of bonds and into equities. the question is how long can it really last? with us for the hour today jim levinthal, scott brown, rob is with us as well. he is with ubs project wealth management, one of the barron's top 100 advisors. also joining us today is tom lee, the head of research at funds track global advisors.