. >> announcer: live from new york where business never sleeps this is "squawk box". good morning and welcome to "squawk box" here on cnbc. i'm kelly evans along with joe kernen and mike santoli. let's look at equity futures after this record breaking session we had yesterday. the dow poised to open higher another 37 points. 17 higher for the nasdaq. s&p implied to open three points hire. just can't stop these moves, i guess. let's check out interest rates. ten year note they are a little below 2.3%. a level we'll keep an eye on. >> oil prices building on yesterday's gains. we have that opec meeting coming november 30th. a little bit of a hint and expectations that maybe there will be discipline on supply. brent crude ochgapproaching $50 barrel. global equities were in rally

mode. picking up on yesterday's strength in the u.s. we saw basically across the board strength not quite a 1% move but you did have to the upside as well. >> i don't know if we'll see those boards. i saw shanghai. that's almost 3300. remember that was the one that we were worried about, breaking under 3000. i guess i one energy to some extent. i would think that if it was demand related i would be bullish but if it's supply related -- higher prices aren't that great. but it will help that sector. >> i can't believe everybody is bidding up on the supply story alone. it's got to be commodities. >> yesterday's market rally attributed to strength in oil. it's because of the s&p stocks that are in that business. but it's not good for everybody else. i rather have lower oil prices. >> there's a zone that's okay. talk about 50 bucks. we were double this a few years

ago. >> we helped the majors and the drillers and oil services. that part of the s&p goes up. we don't worry about the earnings being down. >> you're right. there's a huge difference. especially with the dollar. is this for real? is it based on real forecast of actual -- i don't know. just the oil thing -- >> you can see oil prices going down if they were too high. that would cause a rally. >> if you look what copper prices are doing, every other type of material that goes into stuff you make clearly something is going on. >> something eventually will go on. >> dollar backs off for bathe. >> we look at broader markets. roll the boards than i'll talk. currency 1.06. that was below 1.06 earlier today. be good if that maybe stayed. i think it would. it goes below that then you start worrying about the dollar being too strong.

there's gold 1216. i'm ready. i'm thinking i want to own -- >> it's teasing you. >> i would like to buy some crude. i don't think we're loud. do you know the deal? when i was in the business -- >> how big is the crude? >> a troy ounce. maple leave you can get now. you can buy american eagles but they are not pure 24 karat. >> wean a government that won't confiscate your money you want to own that stock? >> have you felt it and touched it and held it? >> no. >> that was a question i wanted to ask you. talking about the gold. down. all right. >> let's get to some -- donald trump turning to you tube late dwroed update the country on his transition. outlined some policy lance for his first 100 days in office. that includes withdrawing from the tpp trade deal. video was created and distributed by the president's

elect transition team. it was not an event open to the press. >> on trade i'm going to issue a notification of intent to withdraw from the transpacific partnership, a potential disaster for our country. instead we will negotiate fair bilateral trade deals that bring jobs and industry back on to american shores. >> we'll have much more on the president-elect's plans throughout the morning. among our guests judd greg and ed rendell from fix the debt. they will join us at 7:30 eastern. >> donald trump suggesting a name for a liaison between washington and london. nigel farage. it's their choice, isn't it? he tweeted last night many people would like to see nigel farage represent great britain as their ambassador to the united states. he would do a great job. farage spoke at a campaign rally

and visited the president-elect after his victory. nigel said he's flattered. he's also getting a response from 10 downing street. there's no vacancy and the uk already has an excellent ambassador to the u.s. i saw that tony blair, see that, tony blair coming back into the picture, going lead the remaineders and i saw a lot of people say ensures the brexit. >> by the way, chicago rahm emanuel had a quote. he said we don't want the democrats to go the way of the british labor party where they lose an election and go further left and become less influential in their politics. >> you saw the possible head of the dnc, former farrakhan accolyte. >> i'm aware of him. >> head of the dnc is not --

>> that's one that decided you pick a complete flame lower the -- you didn't learn anything from this election, you go further left. >> what you learned is that stick with your core and throw some flames. isn't that what the new administration is doing? >> i wouldn't do that. >> i won't get to -- >> like tim ryan. weren't you impressed with him. an ohio democrat. looks around. sees some working people. understands -- >> i was surprised how strident he was. he could have been much less -- his tone was needing to wake up. we don't want to lose another ten seats. >> i think he has aspirations. >> governor. >> yeah. pelosi -- you're not dislodging her. are you >> i don't think so. but anything can happen. in other news we're following reaction to a 7.4 magnitude earthquake that shook fukushima yesterday. it triggered a small tsunami along the coast and temporarily

disrupted a nuclear reactor cooling system. there were no reports of death or serious injuries. it's the same region devastated by the 2011 quake tsunami and nuclear disaster. you hear 7.3 then here tsunami warning and when it first happened because you never know. i was like oh, god. >> we were on air yesterday -- that's what i was saying. >> tsunami warning ten minutes. >> back here in the u.s. police in chattanooga, tennessee have arrested the driver of a school bus we talked about yesterday that crashed yesterday afternoon killing six children. the 24-year-old has been charged with five counts of vehicular homicide, reckless endangerments, reckless driving. he was driving 35 elementary school children home when the bus flipped on its side and hit a tree and police believe that the driver was going too fast in the bus. >> get to some stocks to watch this morning. palo alto shares getting slammed. falling short of estimates. the company is offering weaker

than expected quarter guidance. that sthok a good come back and lost most of it after hours. jack in the box earnings topped consensus. that stock indicated lower this morning. >> also this morning we're watching smithfield foods as buying the parent of the farmer john and soggs specialty meat brands from hormel foods. we'll talk to hormel. smithfield is picking up the farm operations in three states at a price tag of $145 million. hormel is spamming the globe. this is a new gentleman we'll be talking about. hormel ceo will join us live at 6:50. we have a long relationship with hormel and spam. we're not sure what spam is but we like it. we like spam pa parafhenalia.

>> i've never tried spam. >> i've had it. >> have you had spambled eggs? >> no. what's interesting to me the company is trying current towards new healthy younger but still embrace the spam brand. >> why wouldn't they. it's huge in hawaii. great with pineapple. wasn't there a monti python play about spam. >> a whole sketch. >> spam-a-lot. that's what i was looking for. novo nordisk winning a new drug. and astrazeneca has been cleared to resume enrollment in a cancer trial. >> fidelity investments chief

will succeed her father as the firm's chair. "wall street journal" kriegt an internal memo. move is effective early next month. >> markets making history ahead of the holidays. dow, s&p, nasdaq and the russell 2000 are rallying to record closing highs. optimism about a possible deal to cut oil production was one of the cat list for that event. joining us now is ed keenan and steven whiting global chief investment strategist. we had tested a couple of counter factuals. i love that, ed, because i love counter factuals because they become narrative of what would have happened. brexit we knew the market would clap. we saw that didn't happen. we saw that the stock market was supposed to go down 10% if trump was elected. that didn't happen. let me saw question on a different counter factual.

in your few if hillary clinton was elected president would the markets be where they are now >> probably not. the markets were rooting for hillary. her ratings went up and the market went up. >> 300 points. >> there was a dramatic change. we were down 5% on futures when it looked like frump was sure to win. when he got up to give his acceptance speech the futures were improving. by the time he finished they got better. at 4:00 in the morning i'm thinking my clients don't care about the political beliefs they care about what the markets would do. >> i wouldn't publicize this too loudly. you're like a vegan butcher. >> i thought president-elect's remarks about the more pro growth agenda with special infrastructure and by the time i walked into the office next day we ended up buying stocks and

selling bonds. >> what do you think, steven. someone yesterday was on, jim paulson said this all good stuff was already happening. earnings were getting better. >> that is true. we were having a right outlook. i think we have a radically different market backdrop. we've seen a rotation between financials, industrials versus utilities and staples has been about the biggest most significant rotation we've ever seen. we wouldn't have interest rates up 50 basis points. wouldn't have the dollar as strong as we are. very different market. >> can either one of you just say that maybe -- >> tax cuts -- >> less regulation just all the things, can you zmoosh just say >> it will spur growth. >> this is a nixon to china moment. democrats would like to have a infrastructure program but wouldn't get it through a republican congress. a republican president can get

it through. some public/private partnerships along with tax cuts. >> speaking of nixon as he said, it's our dollar but your problem and this is something an adjustment around the world where savings will have to flow here. you see this in the there are and interest rates and prospective borrowing for tax cuts. >> tuesday, exactly two weeks. can you believe the world has changed. only two weeks. he's not president yet. he's got a couple of cabinet appointments. >> announcement often account for what you see. >> the question is if we played it forward, or once he gets in and start doing things do we get another couple thousand points or markets move quickly. we already there. >> you already talked about brexit. three months after brexit, you know, brexit means brexit. we are going to perhaps control

immigration in the uk and we aren't going to have the banking relationship in london perhaps as a result. so there will be forward consequences, you know, think about later on if he pivots back to trade and tries to take us out of the trading relationships that we have. so we will see. we have to react what he does and legislation on tax cuts and spending this is mid-2017. >> there is a positive backdrop on the fundamentals already. earnings have bottomed they started to recover as we go into next year we'll see things how strong does the dollar get. how much does inflation rise. how does the fed react to that. that's for next year's problem. for now we pulled forward based on expectations of much faster growth. >> you said you went from bonds into stocks part of your client's money, a lot of people doing that following that. does that get its own momentum or does it depend on just how many losses are people looking

at. >> i think there's been a tremendous multi-decade rally in bonds and my view that probably is over and we'll see rates trend higher from here. >> there's a difference between loss are in for yields and they are going to the moon. >> unless they go to moon. we haven't seen three in quite a while. that's not an unusually high number. >> can the stock market handle that? >> i think so. never really reacted to rates below two and my guess is valuations are not cheap but not terribly expensive. it can handle 3%. >> when your presidency starts at 4.9 and looking for agency growth for people. >> high-risk to stimulate -- >> a lot of things are already set up. maybe there are some things that were going pretty well. next thing we'll get are hopefully some wage gains as the labor market is really tight

and -- corporate profits went through a little bit of a lull and they are coming back. there's a lot of -- >> there's a risk involved. last month there was a speech about a high pressure economy which is exactly what the new administration is trying to create. >> unless the fed goes up a point at a time we won't get to a point where we choke this off. we have five years before we do that. >> it won't choke off new growth. >> fed lags incredible but there's a point at which next year catching up. >> if they go half point every meeting it will take three years to get back to six or five, right? >> it all depends. five on the way down felt so good. >> if we can get the labor force to recover. there's more room for rates to rise. greater divergence across the world because the rest of the world is not going necessarily -- >> we don't need to worry quite yet about inflation and overheating.

nice to get japan -- nice to export some inflation to places like that haven't been table get it themselves. >> demographics will keep a lid on how high interest rates go. more of us are orlando. >> not older. you're like 40. >> we're roughly the same age. >> i don't think anyone believes that. >> you're sort of -- >> i'm smack between -- >> i'm not going to touch the age stuff. thank for joining us. coming up tut most wonderful time of the year for nation's retailers. can the weather make-or-break their bottom line? the year's forecast is straight ahead. as we head to break here's a look back at this date in history. alpha seems more elusive today.

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now to sports. in monday night football the game took place south of the bothered. the oakland raiders and houston texans facing off in mexico city. first regular season game in the country since 2005 and the score was tied at 20-20 in the kwourt quarter until raiders quarterback hit wide receiver.

took it 35 yards for the touchdown and raiders beat the texans 27-20. >> that early play. so early play, the other team had the ball running downfield good catch. blew the whistle, called him out, replay showed they weren't doing replay but he wasn't out. from their point of view they feel robbed. >> constantly tweeting about bad calls. he's a big redskins fan. what time this was? >> like 8:30. >> 8:30. >> that's about all it i saw. >> 8:30 is the absolute limit for when -- >> you know how high mexico city is? >> the olympics were there once and i remember that was an issue. remember. >> oxygen. >> i remember it was 1968. i was a history major. >> in the '80s the.

or '90s. was at any time '80s or '90s. >> both. i straddled. >> from the football field the basketball court and another high light reel from steve curry. golden state warriors taking on indiana and final seconds of the first half he has this shot from 75 feet. it missed the rim. it does go in. the basket didn't count. the clock ran out. no matter warriors deep in indiana by 27 points. >> i was looking at tickets for the warriors playing the knicks in march. and you can get in there for one a couple hundred dollars already before the warriors even hit their stride. >> couple hundred dollars is a lot. >> i think it's outrageous. >> you know what a ranger game costs p.m. how many times -- >> the knicks, they are getting

more interesting. >> how many times have you seen "hamilton". >> zero >> you're in for a shock. >> zero. there's a reason. >> couple hundred dollars. >> can't go anywhere. >> you're talking about $1,000 just to walk through the door. >> talked about that yesterday. >> great to see them play. >> you know what you can do. college hoops. comes to msg. a lot of tournaments. go on stub hub. can get court side for a couple hundred dollars but that's way to go. >> save your money for the playoffs. >> you said savior. xavier is 5-0. all these guys are back. >> talking about google. giving holiday shoppers a helpful tool to plan shops to the mall. there's a real-time look how busy place are. knowing how busy a place is now

sets google apart from its feature of popular times. basically this is in the moment intelligence not just broad tendencies. >> it is a big week for retailers. holiday shopping seen gets into gear. weather here in new york is getting colder. joining us now is paul walsh. good morning. >> good morning. >> weather broadly across the country was a little warm at first and now temps are dropping. what do you see playing out? >> november for the second half of the month of much warmer than normal which meant consumers were holding off on buying those winter items. as we moved into december now, sort of a rude awakening for us here on the east coast. because transitioned from being abnormally warm to being seasonally cold that impact will be much stronger than it normally would be from a retail perspective last december was the warmest december on record.

this goes back 120 years. had a significant impact on consumer demand. >> like no snow east of the rockies until early part of the year. >> exactly. a horrible impact on department store retailers because there wasn't any demand for apparel which makes up a big part of their assortments. this year it's almost going lay up for retailers that we have an easy comparison from last year. predictions are we'll see a december that looks more like a normal december possibly even colder than normal. a tail wind for retailers going into the holiday. >> it is only a good thing if it gets colder. are we talking disruptions. are we talking just a couple of weeks worth of effect here? >> because last year was so unusually mild and expanded the entire -- >> winter storms and all that. >> that's a risk factor for retailers. the biggest problem and risk for retail this year will be a weekend storm because any day

that you lose is a day that you lose pup don't necessarily get that back. >> can't predict how far in advance? >> for a storm you can't predict more than a couple of days out. >> i know where you're going. >> you know where we'll be in 2050 -- that's crazy. tough for this weekend. you know the best way for weathermen is to walk outside and look around. what i want to ask you with ibm have you met watson? are you working with him? will he put you out of business? it's chaos. weather is difficult. is watson involved? >> we are -- we got about 150 data scientists and meteorologies that develop our forecast. >> your working with watson. >> we're using cognitive technologies. >> watson himself. how far met him? >> i don't know there's a specific individual named watson. >> i hear him on commercials. >> that's right. that's the technology behind what we're doing from a cognitive perspective. >> is it good for you or is mr.

walsh going to be out of a job in a couple of years. >> not just watson but fact that ibm has acquired the weather company and the weather has such a big influence on many businesses that we can use data technology. >> you're working together with him. remember 2001. did you see that movie. >> die. i've been around. >> you sure watson is a friend of yours. >> he is. he'll make us much smarter and we can make a much better forecast. >> they are feeding you, clothing you, all that stuff. >> you want to tell us where oil prices are going? >> i can't. >> colder is better. >> other than from a demand perspective, obviously, if we're looking at colder temperatures this erwill be good for sector overall. demand will be up. overall the weather as we move into this holidays will be a

positive. >> were you in town on the east coast on saturday? that was a weird day. >> i was at the delaware shore with 70 degrees. >> 70 degrees. i almost fell asleep. it was sweet. where am i. >> on our app for sunday the prediction was for a high temperature of 70 and then the last snowflake on there saying it was is going to snow. and it happened. because it was warm overnight and then got cold and we had the snow come. now it looks like we'll be potentially seeing some pretty righteous cold weather as we move into de-and rest of winter. there's still winter coming joe. >> great. winter is always coming. >> that's right. >> all right. thank you. >> okay. >> good. keep an eye on it. i got it. >> coming up this morning's top stories including global market rally plus pharma news a drug that hopes to slow the progression of alzheimer's.

here's a look at yesterday's s&p 500 winners and losers. >> everything is running smoothly. >> i'm sorry dave, i'm afraid i can't do that.

♪ go big or go home ♪ go snoenbig or go home ♪ . welcome back to box on cnbc. let's expect on u.s. equity futures which are poised to open higher. all three major averages and the russell first time it happened since 1999. dow to open higher by 34 point.

nasdaq by 16 s&p three. oil prices in focus here as well. couple of days to go until that opec meeting. they rallied yesterday, brought the market with them and still moving higher today. wti crude up half of a percent. same for brent and gasoline up 1.3. >> we heard things about pharma news and now i see somebody is here. means some of this news might be big. >> some of this news will be big. >> pharma news no drug has ever been to slow down the progression of alzheimer's a degenerative disease that affects 5 million americans and triple in prevalence in the next coming decades and we should hear from eli lilly with phase three results that could make a mark on treating alzheimer's. they have seen efficacies. does it break up the protein.

does it prevent -- what happens? >> this drug helps clears the protein from the bloodstream. . >> that seems to work? >> the hope is it will work. we'll get the data before the end of the year. some expect the next few weeks. this success hailed the biggest event in the pharmaceutical industry this year because of what you said the scope of the problem and the fact nothing has worked. between 2002 and 2012, 24 drugs were tested and only this one proved. there's a big debate about what's known about this idea these plaques are important in the disease and by targeting them you'll make a difference. >> anyway it could be the result of the disease instead of the cause. >> that's what some people think. there's some interesting research around that. a lot of people think this will be an important not tell us whether the hypothesis is

correct. >> seems like everything is clogged up. alzheimer's brains you see the plaque. >> it looks clogged. >> still a hypothesis. clearing these plaque from the brain results in improvements in cognition. let's look at a few numbers. about 5 million in the u.s. currently have alzheimer's that could triple in the coming decades if we have no major therapies. it's the only leading cause of death, sixth leading cause of death in the u.s. that hasn't seen improvements in the last few years. you can see here everything else from cancer to heart disease have seen improvements because of therapies and different changes in living. so this drug is in this phase three trial. the stakes are incredibly high here because this drug has failed before in two previous studies but what they did they pulled the results from those

two studies and saw a signal in some patients those with an early form of the disease. lot of patients didn't have those plaxico burress in the brain to begin with that they were trying to clear. now we that have imaging to be able to tell when people are alive if they have these plaques and just targeted those in the study. we visited eli lilly and talked to the incoming ceo. >> having spent 27 years and billions of dollars and all this effort if we are successful we expect the drug to get used and to get rewarded for that. that's to investors. that's the promise of our approach. and right now some agree that that's a good investment. some don't. we'll see very soon the results. >> so stakes are very high here for eli lilly working on this for decades. the market is potential lui $26 billion or bigger. lot of competitors in the space other than lilly. looking forward to this data.

>> be tragic if it doesn't work. is it back to the drawing board. he spend billions and in those other trials it didn't work. >> the trails weren't a failure because they learned who the right patients were, 000 test the drug. it depends,000 results look. can be clear across the board looking great or looking bad or something in the middle. that will determine how lilly moves forward and how the field thinks about these approaches. >> early in the diagnosis this would be something you take just constantly. >> right. it's an infused drug. not a pill. not that easy to take eritrea. you have to go to an infusion center. i was reading about this. we talked to researchers. it goes in the blood. a small amount crosses into the brain blood barrier. >> there's plaque in the blood -- these things move around. >> yeah. >> no kidding. that's weird. >> very interesting. large molecule drugs.

>> so it's a nab. if it doesn't work do we know that this is very effective at what binding with the plaque itself? because if it doesn't work is it definitely removing the plaque or it is because there's better ways to remove the plaque? >> you're asking all the questions that everybody is asking about this right now. biogen has a drug that targets these plaxico burress and target them in different ways. that's why it's important to see -- >> it's an anti-body that's very specific if you copy millions of it goes in the text. >> i see it on these new drugs these days. >> there's a lot of them. they are more expensive. how do we treat -- if this works how do we change the paradigm to treat folks with alzheimer's in early stages and get screened

for it. we're talk about lumbar punctures to see if you have plaques in your spinal fluid. >> i had no idea. i thought it was up in your brain. they are in your bloodstream. >> they are hoping by clearing from the blood and that little bit that crosses the blood brain barrier will help. >> the other thing, they've done all phase one and two. so it's safe. whenever you use these things, the response is still mouse or fully humanized? >> i have to check on that. so far it looks safe. big side effect we've started to see in these trials is edema, fluid in the brain. we haven't seen that so much with lilly's drug. other thing is looking for infusion reaction. so far it looks pretty good. we've seen safety issues he messengered in phase three

before. so something to look for. >> when we come back a new survey whether web searches have political bias. first let's get a quick look what's happening in the european markets. you see to the upside with the uk leading the way. i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

time for today's executive edge de jur. ibm is triple the number of cloud data centers in the uk. ibm will build four new data centers to meet demand from corporate and public sector customers which include the british government and retailers such as dixon's. >> a new study finds google search can lean liberal. the report looked at 50 searches for political terms on google. more liberal leaning web pages came up than conservative ones. google denies allegations of bias. because eric smith was there with a dnc badge on him.

>> only hundreds of factors. >> instagram is launch agnew feature letting users send videos and photos that will eventually disappear. if the recipient takes a screen shot of video. they are taking notes from hits parents company facebook adding live video. general electric has sold its former global headquarters in fairfield, connecticut to sacred heart university. price tag $35.1 million. earlier this year ge announced it would move to boston citing connecticut's rising taxes. >> that legislation -- >> right there, right next to the campus. >> from connecticut to massachusetts. >> they want to be near universities. >> small number of employees. several hundred. >>. amazon is exploring a premium package of live sports for its prime service. the "wall street journal" said the company is in talks with new brunswick, nfl, major league

league baseball and other leagues. premium package could entice new customers to prime and potential skinny bundle of live channels online. amazon has bid for the rights to stream nfl games this season. that's a deal won by twitter. >> if amazon gets into streaming sports what does that mean for espn and everybody else. >> they can make the economics work but the streaming rights are -- they don't cost as much. >> they got to get some good content otherwise what's the points. >> you get the streaming points. you're not taking the place of what's on television. >> amazon said debut of its new original show was the biggest. viewers screened "the grand tour." amazon says viewership topped the previous record debut of

"man in the high castle" and paid $250 million to produce "the grand tour." >> new york's big apple circus has filed important bankruptcy protection. safe the circus campaign tried to keep the institution alive but efforts fell short. big apple circus was known for featuring dogs, ponies the occasional pig rather than lions and tigers. they had some famous clowns. they had a little old granny clown that was really funny. a guy actually playing a grandee. but not a scary clown. this was in the days, a few years -- >> before clowns were weaponized. >> exactly right. coming up, spam the hormel food ceo joins us live to talk business. find out why he sees a strong finish to the year. stay tune. you're watching "squawk box" on cnbc. we'll be spamming the globe.

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hormel foods out with fourth

quarter earnings this morning. 45 cents a share. one cent below revenue estimates. and its fiscal 2017 forecast is better than the street was anticipating. joining us now, hormel ceo jim snee. he recently took over. we have a long relationship. we already talked about this jim. it's good to see you. >> well, good morning. thank you. it's great to be here. we did have a chance as you mentioned this morning to report a very strong fourth quarter. wrapping up another great year for our company. >> i'd like to talk about all the new stuff you're doing, but let's talk about some of the details of the quarter. you're not really known necessarily yet as a -- you're more domestic which may end up being a good thing if we all get more nationalistic.

you are making strides to be a more international company. even in china. tell us about the last quarter and the progress you're making. >> sure. as i said, it was a strong fourth quarter for the company. we had three of our five business units show growth which really supports our balanced business model approach. you know, from an international basis, we've talked a lot about our desire to become more global over time. we believe that that's the right strategic growth opportunity. along with becoming a more multicultural product offering, making sure that our portfolio becomes more healthy and holistic and connecting with consumers on a more on the goe basis. >> still when i think of hormel, that's -- you got some work to do obviously and i'm not saying that i want you necessarily to become a big organic brand. if i want some spam, i want some spam. i'm not worried about what someone thinks.

and if i want some hormel chili, i want some hormel chili. you sure you need to be all things to all people? >> well, we want to make sure we connect with consumers and meet their needs while they're shopping. we continue to have a strong center of the store presence with spam and chili. you'll be able to get it when you want it, joe. but we're also going to continue to have a strong presence in the perimeter of this store. and so when we think about our refrigerated foods portfolio with pepperoni and party trays and our applegate offerings, we just want to make sure that we are where the consumer wants us to be. >> don't give me some tofu pepperoni or something. leave the salt. leave the pepperoni like it is. you've got some other neat things going on. skippy pb bites. i forgot that was your deal. and the innovations -- muscle milk we saw in one of the shots.

that's you. and i'm interested -- you know, mexican food -- the worst mexican food is great. so this guacamole salsa. i always mix salsa with my guac. is this is a new innovation? >> it is for us. this is a product line through our megamix product portfolio that was introduced originally in mexico from our business partner. we recently brought the product to the u.s. it's early on, but it's meeting with great consumer acceptance. and as you mentioned, you know, we've been very focused on innovation as well. when we acquire the skippy brand several years ago, one of the challenges that we issued to the organization was to take peanut butter out of the jar and our team responded in spades really delivering a great convenient on the go snack that's really

resonating with consumers. >> these guys -- millennials around here, what's that? >> they do peanut butter cups. >> almond butter. >> it's delicious. i've had it. >> how long have you owned -- that's new? >> we bought justins about six months ago and that's been a fantastic acquisition for us. it's very complementary to the nut butter space. you know, justins is a natural and organic product line. we've got almond butter in the jar. but also a number of new innovations in the snacking space as well. and so we're really excited as we integrate this business as to what future opportunities and the platform that it'll become in that nut butter space. but between skippy and justins we feel like we've got the category covered. >> so the muscle milk, does it

still require exercise? or can you just -- i mean, i'm looking for something like that. >> you know, that would be a good thing, joe. sports nutrition category obviously is a growing category. >> i knew it. so you can't just drink it and get muscles. i knew that. >> well, you can't get muscles. you can't get muscles from just drinking it. you do have to do some exercise. but the sports nutrition category is a great category. and we've been really pleased with the muscle milk acquisition. our ability to innovate and grow distribution, it's been wonderful. >> smells like false advertisement to me, jim. anyway, thank you. please come back and we'll see you next time and catch up with all this exciting stuff. we appreciate your time today. thanks. >> great. thank you. happy thanksgiving. >> you too. top stories including futures pointing to more green arrows on wall street. all averages soaring to record highs yesterday.

that's the first time that's happened since 1999. we'll be right back. es. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential.

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a big market rally. all four main u.s. indices soared to record highs for the first time since 1999. this as crude prices continue to climb in anticipation of this month's big opec meeting. what to expect straight ahead. the trump transition. the president-elect promises to withdraw from a 12-nation trade deal on his first day in office. the latest on the political front and what it means for your money coming up. governors ed rendell and judd gregg have the latest. getting smacked by old man winter. the latest on what areas of the country can be affected by foul

weather as you head to the busiest travel days of the year. second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm here with kelly evans and mike santoli. there's rick santelli. it's all confusing. look what kelly brought in. >> you don't want to show her address on the air like that. >> oh, my god! they can freeze that now, can't they? i don't want to give any -- >> we got rid of dvr. best move ever. >> that's right. futures at this hour are indicated higher again. this is pretty amazing. and what happens is we've seen this before. we get a pretty sharp move for whatever reason.

this time it was the election. and then people say too far too fast. i can't buy now. then it keeps going. and they end up buying much higher. all three major indexes closing higher for the first time. the index gained 0.75%. and the nasdaq rose 47 points to close at 5368. highest level. >> maybe it's demand. you never know. it's probably a lot. >> i don't think there was 1.5% new overnight. >> there's the question of whether it's good or not. >> it's good because the reason earnings were flat was the oil.

>> high yield bonds. very strong. and that's been a support for stocks. >> that is a worry about some type of -- >> if it's just this opec meeting. you know how hard it is to agree on the cut? >> and are they the swing producer now? or do we do that here? >> let's check in on how we were doing in the overnight and overseas session. asian markets. there's the shanghai joe was talked about earlier. nikkei doing well. it's playing catch-up. european markets pretty strong. italy seems to be rebounding up nearly 2%. the ftse in the uk up nearly 1%. everywhere else some green arrows. standard & poor's has downgraded cat cater pillar.

kkr striking a big deal in japan. it's buying autoparts maker calsonic. it beat out rival firms. that's according to reuters. and boeing's commercial aircraft unit has a new executive. to head its biggest division. he had been head of ge services. in political news, donald trump turning to youtube late yesterday to update the country on his transition and policy plans. including withdrawing from the tpp trade deal. distributed by the president-elect's transition team. and this was not on event that was open to the press. >> on trade, i'm going issue a notification of intent to withdraw from the transpacific

partnership. a potential disaster for our country. instead, we will negotiate fair bilateral trade deals that bring jobs and industry back onto american shores. >> and we'll have much more on president-elect trump a bit later this hour with former governor and senator judd gregg and former governor ed rendell. he was also dnc head, wasn't he? long ago? >> either dnc head or head of one of the congressional re-election committees or something. >> and apparently that was an interesting meeting at trump tower yesterday with some members of the media. it just becomes more interesting when you hear a lot of the stuff the president-elect decides to say is on twitter. both of those things intermediate the media and go straight to the people. it's going to be interesting.

>> do you think there's a chance that he did the unthinkable which is to make the big media people on tv network sympathetic on some level? >> i really don't think -- >> i'm just asking. >> oh you mean do you think he made them sympathetic to the rest of the country? >> seems a bit like a turkey shoot, so to speak. >> maybe my twitter followers are different, but they were thinking the media got exact will what it deserved. let's look at the economic calendar. existing home sales out at 10:00 a.m. eastern. expected to tick up slightly. and with the thanksgiving holiday on thursday, thunderstorm is a very busy day for economic data. we'll get early jobless claims, durable gootds, new home sales, consumer sentiment, and the latest fed minutes. >> the post-election rally continuing today with all record closing highs yesterday. joining us now alternative fixed

income strategist at jpmorgan. and barbara reinhart. thank you both for being here. oksana, let's start with you. the most dramatic move the index hitting new highs. the bond market has had this adjustment since election day. most popular thing for the next first of this year was bonds. inflows into bonds and the yield. are we going to have to see a reversal of that? how far higher can yields go as part of this move, do you think? >> so you hit the nail on the head. we've had close to $200 billion of inflows worldwide so far this year. probably being somewhat mitigated now. last year i believe marked the biggest disparity between equity and bond flows on record. by some sources. so the question is this the beginning of reversal. and perhaps more importantly can the market handle it given what we know about liquidity

conditions which are not what they're supposed to be. so that's the big question. in terms of where rates can eventually end up, it has been a painful road so far. right? we've seen something like three consecutive days of 20% higher yields. so in absolute terms, these moves may have seemed not the highest by historical standards. in percentage terms they have been close to or above 20% for a number of days nap is record territory. we don't think they're done here. so the trajectory won't be a straight trajectory up. we are not even where we were during the taper tantrum. and also the dollar hasn't really appreciated to the point that would cause the fed to back off of their rate hike. the dollar is up 5% compared to the 20% increase it had in 2015. >> barbara, i guess the question is should you be rotating in this direction right now? if you own stocks and bonds, you've had a great run in bonds.

you're seeing the beginnings or the stirrings of a rotation this direction. but you have a stock market that, you know, is going to be its eighth anniversary. >> all time high yesterday. and one of the things we've been doing with our portfolios at voya is moving away from the safe haven bets into credit and also into equities. we think the rotation you've seen into financials and cyclicals is very much indicative not only of the election. it coincided with it at the same time but you are seeing much better trajectory on growth going into the third and fourth quarter. the comps get much easier compared to very difficult ones last year. and we think the rotation into the cyclical parts of the market is here to stay. >> everyone's happy with higher inflation expectations, but they don't want it to get too high. everyone's happy with the economy running a little bit hotter, but not too hot. how much room do you think we have in that range?

>> well, i think -- i mean, some of the things they could potentially derail, this growth prospect that we're all hoping for is that rates do get too high and you have rising tariffs. however, as long as the dollar stays within that roughly 5% appreciation a year, there shouldn't be a tremendous impact on demand to really interfere with what the stock markets are doing. for bonds, however, this is a very dramatic shift. and it's probably the beginning of a secular shift. and so we definitely have been talking to clients a lot about switching into strategies that are a lot less related to return within bond markets or strat yes. more of a long short approach opposed to long only approach. it's going to be difficult. >> barbara, one of the effects of this latest move is that for most of this year, the dividend

yield on the s&p 500 was higher than the treasury yield. there's no magic to that relationship, but it was interesting for awhile people had this story you go to stocks to get yields. is that all changed now? >> you know, i think there's a couple things. you can get some decent yields on products that you weren't able to get to before. so suddenly leverage loans look more attractive than in the past. they get you the need you can get, you know, with high yield bonds. but less duration. the other piece we have to also consider is that, you know, the u.s. is at this very important inflection point. so you're at this point where you've got financial conditions were much easier going into this year. you do have some head wind from the dollar. and that could be a headwind. until then you've got easy comps. and it can be very long-lived.

the market probably has gotten ahead of some expectations at this point. but we think it's going to be durable in nature. >> that seems to be the story. thank you very much. >> thank you. >> it's almost december. >> yeah. but the bottom -- the trough to earnings was in the first quarter of 2016. so you've got that going for you. >> watching the fed, you know, base everything on dollars, i'm ready -- let's just -- dollar do what it's going to do. let's just get some growth. just do what we've got to do. we'll deal with the stronger currency. you can't manage every currency in the world. don't grow, the dollar might get too strong. relax. >> but you've got tightening monetary policy and the prospect of fiscal policy. that is very good for the dollar. >> good. that's okay. we'll take it. king dollar. larry kudlow. >> the thing to watch on fiscal policy is europe. you have the same

antiestablishment move there however, it does not, however, come with the fiscal stimulus and tax reduction policy. that is something to watch. >> they've been talking structural reforms for 20 years and they need -- someone's got to hold their feet to the fire. >> and the populist parties in europe are not in like the mainstream party tickets like in the u.s. >> as michelle pointed out yesterday, she wants all this free market stuff but where should the capital be. she said both. it's in their dna over there. we got to go. okay. relax. coming up, it's the most wonderful -- i could almost sing it. but he's going to sing it. one of the busiest shopping times of the year, we're going to do stock shopping. as we head to break, here's a look at yesterday's top dow performers. "squawk box" will be right back.

welcome back to "squawk box." check out the futures which have been day after day seems to go above what we're really thinking is warranted. or at least that's the perception the market seems to

be giving people. it may be ahead of itself, but maybe it portends good things in the future. take a look at some s&p 500 stocks hitting new 52-week highs yesterday. should be a lot. if you're not at a new high, then you're not keeping up with the averages. but baker hughes trading at levels not seen since last year. halliburton now trading at levels not seen since 2014. and fifth third bank currently trading at levels not seen since 2008. cincinnati-based lender that -- >> they've had a lot of new highs. >> -- came about from the merger of the fifth national bank and the third national bank. you knew that probably. >> i did. >> has a nice ring to it. fifth third. fifth third. >> fifth third. it couldn't be at the intersection of fifth and third. >> i thought that means the 15th. >> like you're multiplying. let's take a look at retail

ahead of one of the business jest shopping weekends of the year. joining us now is retail analyst at btig. welcome. good morning. what would you be buying into black friday? >> we like the shares of best buy right now. we think it's prudent to be defensive. we like home depot. doesn't have a lot of exposure to black friday. >> you like best buy even though they have this great quarter, they have the goaling articles. you still like them? >> we do. they've combatted show m rroosh. they're not the place to navigate and then buy on amazon. >> what about in the online space? >> amazon is a formidable come pet tr for them. we have great respect for that company. they're wreaking havoc across the whole space.

>> what about walmart? they're going to bring up their black friday specials now or their cyber monday specials to midnight on black friday. so i'm not sure if they fall in your typical coverage area. as we head into this day which is changing so rapidly and retailers which are changing so rapidly, who's really poised to benefit? >> i think the retailers who have a very solid omnipresent channel. they don't want only online, they don't want only in stores. they want the option. as mighty as amazon is they cannot accomplish the feat. >> being defensive in picking home depot, not a lot of apparel retail in your picks there. >> no. >> do you not think there's going to be a tension release with the consumer going into the holidays at this point? >> certainly there should be some tension release.

the index underperforms by 300 basis points. however, once that uncertainty is lifted, post-election the retailers out perform by 120 basis points between election day and the end of the holiday season. >> malls, department stores, you know, what's going to happen there? >> we're not very big on malls and department stores. that's why i've moved by coverage away from that. we followed many companies that i simply chose no longer to follow because i don't think they were long for this world. so we subjected each of our companies to a series of litmus tests. one of those is how wide of a mote do you have relative to amazon? >> why pier one? >> well, we follow pier one but we have a sell on it. we think it's going to be very difficult ultimately for that company to compete. they have a very eclectic merchandise assortment. all of their items are substitutable. five years when that company had

no online relationship at all, fast forward to today to give the company some credit they've done a terrific job on building up their e-commerce presence. however, 11% margin has plummeted to only 2%. so be careful what you wish for. >> two more names. who else do you think is a sell and one more you think is a buy? >> we're not keen on williams-sonoma. they're the envy of any retailer. however, for them it has not translated into margin gains. the pottery barn division which is more than 40% of revenues just more than -- >> real quick, who else do you like? >> we like home depot. we like autozone and o'reilly. >> all right. they're increasingly becoming black friday plays. thanks for joining us. have a happy holiday. >> you too. coming up, planes, trains, and automobiles. we'll tell you which parts of

the travel rush could be most affected over the next few days. and then the trump team releasing a video of the first hundred days and how the president-elect will handle tpp and other issues. "squawk box" will be right back. man, i'm glad aflac pays cash. aflac! isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles... aflac! or help pay the mortgage? or child care? aflaaac! and everyday expenses? aflac! learn about one day pay at aflac.com/boat blurlbrlblrlbr!!! sometimes they just drop in. always obvious.

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millions of americans are getting ready to travel for the upcoming thanksgiving holiday. and unsettled weather could be a problem for some. aaa is projecting 48.7 million people will travel for thanksgiving this week. it's the most since 2007. in new york state, that lake-effect snow machine already kicked into overdrive yesterday. some areas experienced three feet of snow and blizzard conditions. new yorkers are bracing for the possibility of more snow before the holiday week is over. in the midwest, wet snow will persist in areas of michigan,

wisconsin, and minnesota through thanksgiving and into the weekend. flight delays are expected. so check your flights. traditionally the busiest travel days through the holiday are wednesday and sunday. the best day to avoid crowds is thanksgiving day itself. >> we have to hold off until the leaves are gone. >> hold off on what? >> on three feet of snow. got to get the leaves -- >> the wind yesterday. >> you don't see leaves? >> i see tons of leaves out the back. >> you don't see them like i do. >> the cat likes to chase them. >> there are so many leaves it's bad. we got to get rid of. got to hold off. and remember that one year when it snowed and the leaves were on the trees and what happened? power lines. everything. no good. coming up the strump -- the strump. strump trategy for the first

hundred days. judd gregg and ed rendell will join us to talk about the transition. as we head to break w, look at the equity futures. how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels so customers can effortlessly invest, borrow, lend, transact-wherever-whenever they choose. and we're digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. digital works for banking and financial services. lets talk about how digital works for your business.

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welcome back. among the stories front and center this morning, let's check on futures again. it was a record setting day yesterday. still poissed to open higher. all close at new highs. that's the first time that all four did that on a same day since the last day of 1999. and now we're looking at a 36 point gain for the dow. general electric has sold to sacred heart university. ge announced earlier this year it was moving its headquarters to boston. on the earnings schedule today, both are set to report their quarterly numbers this afternoon. hewlett pac rd will report after the bell.

donald trump talking on his transition. eamon javers joins us from outside trump tower. >> reporter: good morning, joe. we learned early this morning that donald trump has canceled his meeting with "the new york times." apparently they couldn't agree on the terms and conditions of that saying they never changed what they were asking for. trump suggested that they did so a bit of a dispute there. we saw this following on the meeting yesterday with television executives. that was off the record. and we're getting disputing accounts here of what happened there. donald trump delivered something of a dressing down to the media figures. it's not clear on what was said because the meeting was off the record. but going around the media seems to be trump's strategy of the week. yesterday he laid out his agenda for the first hundred days. here's a bees of what he talked about in terms of the transpacific partnership. >> on trade, i'm going to issue

a notification of intent to withdraw from the transpacific partnership. a potential disaster for our country. instead we will have fair bilateral trade deals that will bring back onto american shores. >> and he laid out a couple of other key bullet points here on education and repealing -- i'm sorry. on energy and repealing regulations as well. so a couple things he didn't mention. he didn't mention repealing and replacing obamacare. he didn't mention the wall in mexico. and he didn't mention a special counsel for hillary clinton. those are what he talked about most on the campaign trail. none of that discussion, though, in this video yesterday. it's to see whether he is waiting for those. >> i guess we'll have to wait. didn't say anything about the paris climate deal. did he say anything about the

epa and the power -- the executive actions? didn't hear anything about all that either. that's all to come, i guess. >> reporter: one of the things he said is they are developing a list of executive orders they want to repeal on the first day. so they're scouring some of what obama did and looking to repeal a lot of that. not a lot of detail in this video released yesterday. >> that wind's doing some crazy stuff to your hair eamon. >> reporter: thanks, man. >> you could be like an expert diver. there would be no splash whatsoever. >> reporter: this is my version of a faux hawk. that's what i'm doing out here. it's gael forced winds out here and snowing. i'm out here for you. you've got to take a look. >> reporter: thanks. i appreciate that. >> you're welcome. >> from the warmth of the studio. poor eamon.

>> you see coneheads? she's a diver. i mean. the campaign to fix the debt is founded by the authors of the simpson bowles plan releasing a statement on the national debt and call for action saying president trump will inherit enormous fiscal problems but few more challenging than the national debt. mr. trump will need to show real leadership quickly to climb out of one of the deepest fiscal holes in our history. joining us now former senator judd gregg and former governor ed rendell. they are cochairs on the campaign to fix the debt. before we get started, judd you agreed to come on. you know this is coming, right? >> no. what are you going to ask me? >> how many times did you tell me that the chances were zero that donald trump was going to be elected president?

how many times were you absolutely -- so did you -- i think rendell probably could judge certain parts of the populous and i'm talking working class people. i think rendell as a democrat might have had a better idea than you about the subcurrent of the country, judd. >> i also told you the red sox were going to win the world series. you got to take everything i say with a grain of salt. >> so anything you say, i should say that's just judd. is that what i should do from now on? >> yeah. i'm afraid so. >> you know what? i think mrs. gregg can probably confirm some of that. she probably had a better idea than you, didn't she? >> she always has better ideas than i do. and she may be listening to i want to affirm that. >> we don't want to talk about this anyway. look at you two guys. i'm in between you. i'd like to bring you two guys together about the debt. is that going to be -- are we going to be able to do that, governor rendell? >> sure.

i think judd and i see eye to eye on what has to be done. interestingly donald trump said during the campaign he wanted to do something about the burgeoning debt and blamed president obama for exploding the debt. but on the other hand his plans he laid out during the campaign to cut taxes dramatically, cut revenue, increase spending on military and infrastructure, leaving the merits of those aside they would explode the debt. our estimate is it would explode the debt by $5 trillion in the first ten years. $16 trillion in the second ten years. and by the end of ten years, our debt as a percentage of gdp would be over 100%. >> judd? >> well, there are ways to do what he wants to do and manage the debt. that's what we have to be clear on. we put together a simpson bowles 2 and also a line of ideas on how to address things like tax reform which is critical and should be one of the first

things out of the box and can be done in a way it doesn't affect the debt. i think tax reform would create massive economic activity which would actually help us significantly with our debt problems. on the issue of infrastructure, we should pay for some of this expansion. if we're going to start building roads and bridges which we absolutely should do, we should pay for it or at least a fair percentage of it. there are ways to do that that are constructive. so we have ideas we want to be helpful with. we're here to be a resource to the extent the people in the administration or the president-elect himself feels we'd be useful. we're here to be helpful. >> ed, one of the -- we don't know what the markets are going to do long-term obviously but one of the narratives before the election about what you were just thaub. cutting with infrastructure and what that's going to do to the bond market, it was all supposed to cause a thousand-point drop in the stock market. and instead we keep hitting new

highs day after day after day. the narrative you just painted, is that any more real than all the scare mongering that we heard before the election if trump were elected, ed? >> it's definitely real. you can sit by -- >> how do you account for the financial reaction in the markets around the world? all the averages hit all-time highs again yesterday, governor. >> i -- for the life of me in seven decades on this earth, i have not been able to account for what the stock market does. never ever. >> you think ellison is the right guy this time around? how do you repair -- it was supposed to be the other way. the republican party was supposed to be in shambles. what would you do now as a pragmatist for your party? who would you put in for dnc? is he the right guy? >> i think the right guy right now is joe biden. i would like to see joe do this.

i don't know if he has an interest in doing it. joe do it for two years. and then people who can generate some real activity in the states, who can take the case to voters we've ignored. but i think joe biden is the one person who could bring the party together. and start giving a message to the working place democrats who abandoned us. >> when you were watching and watching what's happened since, a lot of establishment republicans and i'm not saying that's who you are, but worried about the down ballot races. when that day was over or the next day, when you saw what happened, were you just -- what was your response? there was a tail wind, not a headwind. it was unbelievable. your senator kelly ayotte she didn't back him and ended up losing. it was bizarre, wasn't it?

>> it was extraordinary. kelly didn't lose because of what her positions relative to -- >> didn't help. >> didn't help, but she lost because 17,000 people voted for somebody else and we had a huge vote of students who probably don't even live in new hampshire that affected the race. she is an exceptional senator. it's a big loss for the state of new hampshire in my opinion. >> she was doing fine. >> but to get back to your original question if i could, you know, i think the -- this explosion and optimism relative to the markets is pretty predictable. we've had eight years of very excessive tax policy, excessive regulatory policy. finally somebody who's saying we're going to reduce the regulatory burden and tax burden and give entrepreneurs and people who want to go out and risk an opportunity to do that. and create something. i think there's an optimism

here. but if you want to predict the one event that could bring this to a stop and stand still it is the fact we're running up deficits and debt at a rate that is not sustainable. and we need to do something about it. what ed and i are trying to do is put out bipartisan proposals. the only way to do this is to have sop bipartisanship. we're just trying to be constructive here. >> judd, is there any truth to the idea if we could get above 3% or maybe even better than 3% gdp growth and maybe just, you know, there's no inflation really. not much around the world. maybe we could do the world -- you know, if there's ever a time not to be a deficit hawk, could it be right now? >> no. i do think we can -- i think we can get a 4% rate of growth. i think donald trump's right. you can get to 4% rate of growth if you put in place -- >> and then we'd have more money

to start doing the other stuff that you're talking about. and then do entitlements and social security. >> well, i think the way you get to a 4% rate of growth is you make it clear to the world that we are going to address our long-term fiscal issues and give the world confidence in investing here. >> that sounds like austerity. that hasn't -- >> actually, joe if i can interrupt. actually, if you look at simpson bowles, simpson bowles of course had significant deficit reduction by increasing revenue to the federal government and by making significant cuts in entitlements. but it also said we needed to go out and spend more on infrastructure. you need to do a balance. you need to do the cuts but also invest where it's going to clearly help the economy and create good, well-paying jobs like infrastructure. that's something i think we all agree on. it doesn't always have to be all federal government money. it can be states and localities, but we better invest in some of

our own growth soon. >> gentlemen, governors, thank you. best to mrs. gregg. >> thank you. >> we told you, judd. >> you did. >> all right. thanks, guys. when we come back, legendary tv producer and chairman of the boston red sox tom werner will be joining us. we'll talk baseball, the entertainment industry, and charitable giving during the holidays. "squawk box" will be right back.

as part of the northeast digout from the recent blast of snow, it's never too early to think spring. major league baseball's meetings are around the corner. let's bring in tom werner chairman of the boston red sox. thank you for joining us. >> nice to be here. >> it was a year to remember, wasn't it? >> it was a fantastic year for baseball. the cubs were the team of the century. the number of people that watched the world series, i think we increased our ratings 51% over a year ago. 40 million people watched that seventh game. i'm sure the three of you did. it was great for baseball. >> i had to get up in the morning. but seventh game might be the

greatest thing in sports. when you finally get one. every pitch, every foul ball, everything. you're holding your breath. >> from the beginning to the end it was a fantastic display. >> how's the health of baseball? a couple years ago i would have said it's based on local markets and it's great. it's great for surrounding areas of the big franchises. but maybe it can be a national pastime. >> well, i think this is in some ways the golden age of baseball. as you know, the number of people watching consumering baseball every day i think is something like -- >> when you add in all the -- >> -- the strength of major league baseball advanced media, the local ratings, i think this is our 14th year of consecutive attendance growth. it's about a $10 billion industry nationally. and under rob manfred, we made a new deal with under armour which

i think is going to be transformational. >> when does it become too available and how do you figure out with the tipping point of too many places? >> well, i think you want to be ubiquitous don't you? you want to sell rifles to cowboys and indians. right? we want to be on cable. we want to be on the mobile phone, on satellite. you want to be everywhere. >> you have an age problem in baseball? i'm bringing down the age and that's not great. in terms of the average viewer. >> we all know the attention span of young people and millennials, i think it's important to acknowledge that. one of the things that i'm on the competition committee of baseball. and four-hour game. it's great for some people.

but you've got to drive the audience to the product. and the things that we're doing in competition committee is we're trying to speed up the game by a pitch clock. we're trying to limit mound visits. trying to shorten the amount of time for instant replay. so i think it's a great game. i think it's always good. the nfl makes changes every year. >> right. >> just trying to make the game a bit more crisp. >> it's an event when you go. i don't know -- tv might -- i don't know how you tweak the tv experience. there's 162 games. playoffs are unbelievable, world series unbelievable. other than the local interest in it beginning of the year, the first 30 games, you may not -- on espn if there's a game between two teams, you may not be attracted to it. >> what we have to do is create more national stars. and i think our relationship with under armour is going to do that. and there are great stars coming

up in baseball. mike trout, bryce harper. they have the foundation to be great talent. >> are we sure about the -- you know, you're not old. you sure about the designated hitter? i'm back to this. i want a manager to be thinking about when he takes the pitcher out. i want him to be thinking, uh-oh i got that guy coming up. they don't do that anymore. >> listen. david ortiz is the greatest designated hitter in baseball. >> i know. >> now he's gone. >> i want more offense. so we can debate it. but i'm -- >> i think i might be wrong. >> wouldn't be a football fan saying the forward pass. you know -- >> i think it's here to stay though. >> okay. the national league still hasn't -- will it ever be unified? >> i don't know. we'll continue to discuss it. >> so red sox. almost reminds me in terms of

history with -- it's got that feeling in fenway and everything else. you're optimistic about next year? >> i saw senator gregg picked us to win this year. we had a great year. we won the division. then we ran into the cleveland i indians at the wrong time. it's a great competition. >> could you -- shifting gears, could you survive in the tv landscape of today? does it blow your mind? >> it changes every day. this morning i was reading about the fox networks made a deal with at&t. you know, the new package directv now. there's obviously a tension. trying to figure out how many channels is the right amount. everybody has said this. content is kwing. if you have a great product, people will find it. doesn't matter whether they find

it on the skinny bundle or cable. >> we have so many shows in production, right? there's so much money in the production side of it on this idea that you have almost limitless distribution yet everybody wants to whittle it down. does that break at some point? zb well, there's -- as i said, there's a tension. but in the end you just make a good product. people are consuming it. verizon now is creating a product where comedy shows are ten minutes long rather than 20 minutes long. i don't know how it's all going to end. but, you know, some people are now making videos for snapchat for three seconds. >> geez, i don't know if i have that attention span. what about the issues about live sports? right up until the election with football and everything, there was a bit of a freakout there. it was an epic world series that people watched. but are people losing interest in live sports? >> not at all. i think live sports is great.

you don't use your dvr to watch it later. i think for the advertisers, 97% of our viewers are watching it live. there has been some during the election as you know there was some diminishing of ratings. but that's bounced back. >> it's rough. i'm sure every day is -- must be difficult. anyway. thought i'd ask. great to see you. thanks. >> great to be here. thank you. >> i love baseball. i do. you feel like a kid again. you smell things when you think about it. >> i can't wait until april. >> i bet you can't. maybe we should come up there to do the show. >> i wish you would. >> it was fun doing it from fenway. >> we'll start the game wherener

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winner. 20 cents. that was above estimates. coming up, columnist and pulitzer prize winner thomas friedman is our special guest. plus the holiday movie season is about to kick into high gear. a preview straight ahead. "squawk box" will be right back.

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party like it's 1999. the four major averages all closing at record highs for the first time in 17 years. donald trump's plans for trade and immigration and cyber security. the president-elect laying out his agenda for his first hundred days in the white house. plus the holiday box office. we'll tell you why movie studios are banking on turkey day to bring in big bucks. the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc. i'm joe kernen along with mike santoli and kelly evans. we're less than 30 minutes from the opening bell on wall street. 37 points worth of strong for

the dow jones. it comes after new highs on the board yesterday. and the nasdaq was strong yesterday. it quickly snapped back from the divergence in the trump rally. there's the european markets which are now benefitting, i guess, maybe a little bit of catch-up from yesterday's strong move. then a lot of people are saying it has to do with oil being strong. but oil is now below 48. and had a good session yesterday. who knows what that means. number one whether they really do have a deal. and number two, whether they're the swing producer anymore. whether it has to do with us opening the spigots back here. used to be you shut it down. now if you just turn a switch.

>> just in manufacturing. like the oil sector. but it's a swing this morning. among today's top stories campbells soup was 5 cents above estimates. revenue also topped forecasts and they said they're optimistic about 2017. shares up nearly 4%. and medtronic earning $1.12 adjusted per share. but revenue below forecast. as customers delay purchases ahead of new products entering the marketplace. medtronic down 6% in extended hours. shares of palo alto under pressure after billings fell short of estimates. offering weaker than guidance. >> joining us now to talk more about the market's historic rally, jim iuorio. also a cnbc contributor. jim, good morning. you know, we had the s&p futures

right now kind of tickling 2200. a lot of people looking at the strength of at least some sectors saying maybe we need a rest. does the broad market need a rest or do you think we just continue this way? >> i think independent of the time of year we could use a rest, i think this rally however morphs into the feel good santa claus christmas rally in the next couple of days as well. when i was listening before you guys said can we call it the trump rally? of course we can. this is completely apolitical. this is just the market standpoint. the last eight years has been characterized by an administration that made one other promise to rein in. so we're looking at less regulation. they're the ones that would respond the most to that. either candidate would have been better for growth and just the trump ones knocking out of a

two-year consolidation of stocks. >> what about financials? you look at areas where people repriced the outlook for banks in a radical way. do you think that we have to rely on those same groups that initially kind of got us in liftoff mode? or like yesterday, do you see the rest of the market kind of come around and take up the lead. >> just for perspective, think about where banks were ten years ago as far as their percentage of the overall market. i started buying banks three weeks ago snowing that, one, we're going to get a new administration that's better with banks. but again, it's a steepening yield curve thing. and before the election, we were steepening the yield curve. the ecb talked about tapering a little bit early. then janet yellen talked about letting their economy run hot. the only thing that could have meant to me was allowing a bit of inflation. so i think the banks are still a pretty good place to be.

could they have a pullback? of course. the move has been huge. >> you say maybe this morphs us into a santa claus type rally makes sense. because the sources of hope are inexhaustible right now. and really there's not a lot of reason to doubt it in any tangible way. we think we can handle one more rate hike. are we going to be talking about the fed behind the curve? what do you think could disturb the story line? >> sure. what we could start to talk about the fed behind the curve but i keep going back to the point where they've had eight years of wondering how they're going to spur on any inflation. i have a difficult time thinking they're going to flip the switch. the question is are they going to leave rates too low for too long? probably. i think they'd rather do that than race them too high too quickly. they posed the question of letting things run a bit. there is so much problematic debt when i'm talking about pension funds, insurance

companies. the only way that that gets any better at all as we try to inflate our way out of that problem. >> we'll see. this time last year we thought we had a fix on what the fed was going to do and it was different. thanks very much. >> thank you. president-elect trump laying out his agenda for his first 100 days in office. my good friend, my buddy eamon. okay, you fixed it. joins us live -- you fixed it. that was so classic. >> reporter: you anchor guys, you sit there in your warm set with your makeup and your hair ladies and you say, oh, that's how it looks out there in the field. this is how it looks, man. >> how was the wind blowing simultaneously from both sides of you? there's something about eamon. >> reporter: it's like a swirling wind. kind of a vortex. >> you're a good sport. and carl had fun with it. most people have fun with it. anyway, you're a good sport. so what's going on?

>> reporter: everyone but me is having fun with it. so look. here's what's happening here at trump tower. they are gearing up for another busy day here. we just saw david bossie from citizens united just walking in for an early morning meeting. we're told we're going to expect more news possibly later on today in terms of cabinet appointments. we'll be on the alert for that. donald trump continuing his war with the media this morning. he tweeted out that he's canceled his meeting with "the new york times." there was some dispute here over whether or not that meeting would be on the record, off the record, part on, part off. in any case, donald trump couldn't come to terms on what that meeting would be all about so now it is off. we saw that the tv executives and television anchors met with donald trump yesterday off the record and were getting some conflicting leaks now coming out about what was exactly said. apparently donald trump delivered a dressing down to the television news media yesterday in that meeting. we're trying to figure out more

on what exactly was said in that meeting. but clearly trump sees part of his role here is to push back against the media, deliver sort of a brushback pitch to the media and get a sense that he wants this presidency covered the way he wants it covered. we also saw donald trump releasing a video last night directly to folks over social media doing an end run around the media itself. i think we have a snippet here of the video which he talked about what he's going to do about the tpp trade agreement. here's what he had to say. >> on trade i'm going to issue a notification of intent to withdraw from the transpacific partnership. a potential disaster for our country. instead we will negotiate fair, bilateral trade deals that bring jobs and industry back onto american shores. >> reporter: and, joe, he also talked about energy, repealing regulations. but nothing in this video last night about building the wall on

the meck mexican border. nothing about repealing obamacare. nothing about a special counsel for hillary clinton. those are things he talked extensively about on the campaign trail. >> yeah, eamon. it's different. now as president-elect. you know, i wondered about the tweeting. and now he's still going to tweet. when he was the candidate, it was like you could sort of -- if you're in the media you could sort of dismiss it like the ravings of a lunatic or something and some of the other stuff. now he's president-elect. i mean, it's different now. it's almost -- if you're dressed down now, it's like, you almost have to be like a kid in class where you are getting dressed down. it's a totally different thing. >> reporter: it is. but, look. the media has long been used to an adversarial relationship with

presidents. it's not common to get lectured by the president in person though. this is new. >> i can't believe you said that. an adversarial relationship with president obama you're saying? got to put your hair back up if you're going to say it. >> reporter: i totally see what you're saying. thank you. i totally get what you're saying. but i will say this. i had occasions where obama press aides hollered at me over stories i did that were true and accurate stories because they didn't like what we were writing about this. the obama people did not like the media as much as you expect they would given the treatment they got. so there was tension that led some elements of the media and the obama white house -- it is hard to believe. but it's true. >> w. had a horrible eight years. but it's party based. thank you. thanks, eamon. >> reporter: you bet. >> i liked it. i thought it was a cool something about eamon look.

coming up, "new york times" columnist tom friedman will be here with details about his new book. later, don't miss glenn hubbard. stay tuned. we'll be right back. they are the natural borns enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful.

welcome back. back in 2007 the globe was on the verge of the worst financial crisis since the great depression. but a book is arguing that the crisis had breakthroughs in tech that are now shaping the world. joining us is thomas friedman who is author of the new book "thank you for being late." welcome. >> thanks. great to be here. >> tell us about the iphone. >> well, one of the things i literally stumbled across this in researching the book. i started noticing all the things that happened in 2007. the iphone came out in 2007. facebook came out in high schools and universities in 2007. hadup came out in 2007.

get hub came out in 2007. android came out in 2007. airbnb started in 2007. the price of sequencing at human genome goes like that in 2007. >> all of this happened, then the whole global economy goes off a cliff and everybody was distracted for a few years but people were still buying iphones. now we come out the other event and think the world is really different. >> it's really different. by the way, joe, fracking started in 2007. and took off the same year. think about it. gps, big data nap made that possible also. so all these things happened basically in one space of 2007 to 2008. our physical technologies leapt ahead. it's like we're on a moving sidewalk that went from 5 miles

an hour to 30 miles an hour. people felt the ground is moving under my feet. >> all that stuff is dwarfed in comparison to the iphone, doesn't it? >> it's three things together. the iphone, so now everybody is walking around with a portable computer in their hand. >> and every show, every song ever recorded. it's unbelievable. >> but then connected we had a huge surge in band width. then you had the cloud. what you could do with that iphone also exploded at the same time. so you really had a huge leap. >> productivity. the whole idea is great we have wonderful innovations, a lot of new companies, market doing well. but the economy overall languishing. would you draw a line between those two or not? >> it's an important question. and so that's sort of the robert gordon argument. i think it's a very interesting argument. i think the interesting counterargument to that is made from m.i.t. who says when we got

electrification first it took a bit to change things. how you organized a company, regulations to get the most out of it. and we haven't had that. just the opposite. 2007 we have this incredible tech breakthrough. then 2008 we have the worst recession in a century basically. and i think a lot of stuff froze. a lot of politics froze. so there's a real disjunction there. i think we're living that a bit. >> have people not always or at least in the last couple of centuries felt things were moving too fast for them. i can't keep up, i'm destabilizing all of this. is it literally different now? >> what's new is two things. one, when the telegraph came. big breakthrough. it did happen to everyone in the world overnight. didn't experience the telegraph within 24 months. that's number one. number two, i had experience in

working on this book that i haven't before. i felt i was chasing a butterfly and every time i got close it moved. so i had to interview the head of intel three times in the two years basically i was working on the book because everything kept changing. is this figure still right? does this -- the folks at hrk adup, same thing. had to come back to doug. that's how fast things are moving. >> have you talked to -- >> i've read his stuff. i didn't interview him. >> so it used to be it would take a million years for some major thing to happen. and then it's like now and that's exact will i what you're talking about. and then he thinks when we get to a point where machines know a billion times as much as what we've learned that we have no idea what is on the other side of that. and the type of acceleration -- this may be a glacial pace compared to where we are. do you believe that stuff? >> i don't know about the end point, joe, but i do believe in

the acceleration. intel did a fun thing. they said what if the vw beetle improved? they said today it would go about 2 million miles a gallon, 300,000 miles an hour and cost 4 cents. and this doubling just keeps going on. so god knows what's coming next. but here's what i really am struggling with. what is -- you know, we heard a lot about working class males who don't have a lot of education. that they're i ddecisive in thi election. i don't know what's going to happen. i don't have a simple answer. the back of the book is actually about the community i grew up in in minnesota. and one of the points i quoted a minnesota congressman who said growing up in minnesota in the '60s and '70s you actually needed a plan to fail.

there was so much wind at our back. today you need a plan to succeed. and you need to update that plan every six months. and that's too fast for a lot of people. what worries me about right now, i just sort of tell people i don't know what is sufficient to get everybody a good job now. but i know it's necessary. and one is keep yourself really open. keep an open economy. be open to the world. that's why i'm for tpp. because i think you want to get the signals first. you want to be adaptive. you want to be flexible and get educated -- >> it does feel like the world is no longer flat. it does feel like there has been a whole tide against physical walls in europe, u.s., barriers to trade, nationalistic movements, reclamations of national over supernational. >> the world is flatter than ever now.

it was about connectivity. it was people getting connected at a pace and scope we've never seen before. digital globalization. not takers on -- not containers on ships. that's going down. but facebook, twitter, paypal, those things are exploding. they're flattening the world more than ever. what's happened since then, though, is the world was flat was written about a price collapse. this book is about another price collapse. that's the price of compute. it collapsed around 2007 because we could wire together 10 million computers and make them work together as one. that's what gave us big data. that made what i call complexity free. getting a taxi, one touch, uber, i pay the guy and direct the guy. it's put grease everywhere. when you make the world flat in the connectivity sense and make complexity free at the same time -- >> you could argue there's regulatory barriers. >> that's for sure. zble specially when you raise

airbnb and the others. shouldn't somebody who looks at the world in this way to diminish those? >> absolutely. in my chapter on politics, i think we should have a base closing on regulation. we have got to -- and it gets back to your earlier question about electrification. if you don't keep up with the regulation that you need for new technologies -- everything has to move faster including politics. last thing you want to do is go backwards. >> when you say you're not sure what it would take to get everybody a new job, so you don't think this is a period where we have to move on to some other that levels it out? >> i think everyone should work. i'm for earned income tax credit. things like that. when people don't work, bad things happen. your identity is affected, dignity is affected. but it's -- what i've learned -- if horses could have voted, there never would have been cars.

sometimes you've got to trust -- i was at a conference earlier in the fall and there was a person there who described her job as tagging sharks for twitter. who knew there was a job tagging sharks for twitter. >> actual sharks? like in the ocean? >> they were tracking them, whatever. and all i could think is if you could keep the economy open, flexible, deregulated as possible. these opportunities when they come, you can jump on them. >> if we could get politics to move faster, that's an interesting look. thank you for joining us. >> we've got to make it to 2040 both of us to see what happens. >> a single digit in 2040. i want to be able to -- i want to be able to shoot my age. >> you know gary player hasn't shot over his age in 20 years? >> that's the only goal you need in a lifetime. either you're crappy and live to be 90. or you've got enough time to get really good. >> my dream.

>> it is. all you really need in life. thank you. >> thanks, guys. coming up, amazon -- you're not that far off. you'll do it. >> 63. i've shot 69 before. >> i've done it with nine holes. amazon reportedly exploring sports streaming. those details after the break. stay tuned. you're watching "squawk box" on cnbc.

coming up, what economics means for the -- we're going to talk to glenn hubbard about policy proposals from president-elect trump. as we head to break, here's a quick check on the 10-year. back above 2.3%. this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you.

♪ welcome back to "squawk box." here's what's making headlines today. hormel is among the winners in premarket trading. that after the company issued an upbeat fiscal forecast. jack in the box among stocks going the other way this morning. the restaurant chain did beat estimates with irnings. jack in the box shares down 3.5%. and if you had a flight booked with lufthansa, check status. there is a cancellation because

of a staff walkout 37. existing home sales out at 10:30 this morning. if the home sales didn't exist, would you have to report them? >> you mean would you put out a zero? >> when you order them, don't exist yet. you just order the house and they build it for you. >> a contract to buy? >> i'm talking about the sales themselves if they didn't exist. existing sales. >> how about preown. >> those are the used cars. greatest marketing scheme. when we get back, getting deals done in silicon valley. ajay chopra joins after the

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welcome back to "squawk box." futures this morning had been green after our quadruple day there. still the case. dow implied to open higher 32 points. the nasdaq 16. and thanksgiving not just about football and turkey. it's also a huge weekend for movies. julia boorstin joins us with more. hey, julia. >> reporter: good morning to you. well, on the heels of a strong opening from warner brothers

"fantastic beasts and where to find them" and others are hoping to roll out movies for every demographic this weekend. disney has a track record of dominating thanksgiving weekends. "frozen" three years ago was the biggest thanksgiving weekend opening of all time. paramount looking to boost its value ahead of a potential viacom/cbs merger is hoping to draw adults with "allied." and fox is also going after awards buzz with "rules don't apply." meanwhile, teenagers are be lured with "bad santa 2." the lack of a -- could make it very tough for studios to match last year's box office results. we'll have to see whether

netflix's shows like the much anticipated "gilmore girls" reboot is a hit. >> so "creed" was a breakout hit? >> uh-huh. >> i didn't realize that. did universal have anything coming out? i missed that. >> reporter: this weekend -- not this weekend. but they're about six more weeks over the key holiday season and the key thing about the movies opening this weekend is there's hope they'll hold the next month until "rogue 1" the big "star wars" movie opens. it's about having a good weekend this weekend and then holding on through new year's. >> you're a true journalist. i'd just be doing, universal has this coming out and then they have this coming out. but you're not like that. thank you, julia. see you later. it's business as usual in silicon valley following the election. so it seems.

two major deals announced over the past two weeks. the head of venture capital furm joins us now on this and much more. ajay chopra of trinity. they have a track record of 35 ipos. firm is also one of howard shultz's earlier backers for starbucks. thanks for being with us this morning. >> glad to be here. >> we hear business as usual. some companies buying younger companies. in the valley out there. the growth in the economy, seems like all these industries are what's popular on wall street right now since the election as cyclical growth is expected to pick up. you say it's similar out there in the valley? >> i think silicon valley is the

innovation. there's room. it does not have to conflict with the potential growth in the industry such as defense and instruction. i think they can support each other and coexist. we probably see a lot of technology applied to some of the more traditional industries. for example, internet of things type of devices and also in oil and gas. so we see the two working together side by side as we move forward. >> what about some issues that generally are important to tech entrepreneurs and big tech companies whether it's net neutrality, immigration, privacy issues? are they changed at all by the incoming administration or do you feel it's the same playing field? >> i think that's important to silicon valley is talent, trade,

and technology. so, you know, we feel that on the balance with taxes perhaps showing improvement and also perhaps less regulation, those would be the positives after election. we do worry about the immigration policies. silicon valley is built on entrepreneurship. built a company that went public and employed 1700 people. the heads of google and microsoft are also immigrants. same thing with tesla. so we see that immigration policy to be important. but i don't think the new administration is going to affect talented people coming legally into this country. >> let me ask you while you're here about snapchat. the big ipo of probably next spring, they want to raise $4 billion. what do you think of the valuation that would be right for snapchat here? >> i think the valuation is rich

to be honest. if you compare snapchat to, for example, twitter, twitter has got roughly 150 million or so daily active users. snapchat is lislightly ahead of them. but there's room for snapchat to grow into the valuation. i think the timing of the ipo is interesting. we feel like they'd have fairly good growth in the next several quarters which is something that the companies keep in mind when they go public. they don't want to have a bad quarter. >> certainly. i guess, though, if you feel you're comparing it to twitter as if it's the upside case, is that how you really view things? the valuation is something like double what twitter is right now. >> at this time the revenue compared the the daily active users are low compared to twitter or facebook.

i think that's what the market would be betting on. >> all right. ajay chopra, thanks for being here. >> sing. sing. the new illumination that's going to be big. the people that did "despicable me." animated movie. >> who's doing that? >> okay. i get it. >> will you work with me, please? up next, this morning jim kraichler will join us from the new york stock exchange. we'll get his take. here are the futures right now poised for a higher open. we'll be right back. make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve.

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welcome back to "squawk box." chipotle has been caught in legal cross hairs. three plaintiffs are filing a lawsuit against the chain for providing false nutritional information. the newest menu item is at the center of the debate. one plaintiff says he felt excessively full after eating it. he says he believed the burrito

was only 300 calories based on ads which said it was. but according to the online calorie counter it is more than 1,000 calories. excessively full. >> 300 calories? nothing is 300 calories. >> nothing with chorizo. >> over a thousand. >> i want to see if this gets class action status. if some judge agrees. >> probably truth in advertising, right? >> if it wasn't, you know, a listeria burrito, they're ahead of the game, right? and now it's about the calories. anyway. a number of retail names among the stocks to watch this morning. dollar tree earned 81 cents a share for the latest quarter. 9 cents above estimates. same store sales also rose more than expected. stock jumping in premarket trading. apparel retailer chico's fas what's that stand for? >> fun and -- >> no! i told you!

>> fairly awesome -- >> you don't listen to me do you? folk artifici specialties. it's absolutely information but this was useful. 7 cents above estimates. and here's the dsw. okay. and shoe retailer dsw and i have no idea what that stands for. >> discount shoe warehouse, i believe. >> ding ding ding. estimates of quarterly profit of 51 cents a share. revenue below estimates and comparable store sales fell more than expected. but the company says it's been able to reduce promotional activity and holiday season s&ls will be more profitable. other stocks to watch this morning. campbells soup saying they're optimistic about 2017 given improving trends in the u.s.

dr pepper snapple buying bai brands including a tax benefit of approximately $400 million. bai is the maker of antioxidant infused beverages. jack in the box topping after the bell. same store sales less than forecast. and caterpillar was revised to negative from stable by standard & poor's. i wonder if that's a lagging indicator given that commodity prices have come back. but palo alto networks shares getting slammed today. offering weaker than expected current quarter guidance. >> i've already forgot what fas stands for again. >> folk art specialties. >> shows you why they use the initials. winning a combination drug

to treat diabetes. this will spark a battle for sales between the rivals. shares not moving too much. other pharma news, astrazeneca has been cleared in two drug trials. there was a hold following cases of bleeding. now to politics. donald trump releasing an in-depth video on youtube last night laying out his agenda including withdrawing from the tpp free trade deal. joining us now is glenn hubbard. glenn, are you actively advising the campaign? not actively or indirectly? what's your status right now with -- campaign. got to get out of -- two weeks ago. are you actively advising the president-elect and the administration or not? >> i am not. >> all right. are you a tpp proponent? >> well, sure. i am a tpp proponent, but i don't think that's the biggest deal right now. i think there's actually a lot

of reason to be optimistic from the overall policy from the president-elect for regulatory reform. that's a big story. >> it's weird, isn't it? i guess you never get everything that you want. but there's single issue voters. i guess there's single issue economists. that's not the first thing you think of even though it was in the video, you don't immediately say wow we're closing borders and getting too nationalistic. you think the other things might account for the action in the stock market and the other animal spirits right now? >> i absolutely do. if you want to restart growth tough change expectation. the place to start is tax and relation. i think the stock market reacted favorably to that. i think the administration and the work that paul ryan has been doing in the house point the way. >> do you think that after, you know, all that was kicked back and forth between the speaker and mr. trump, do you think the speak ser is going to put togetr

an administration are his cohorts and now there's a guy there to sign it? maybe it could be no more complicated than that. >> it's always more complicated than that, but i think speaker ryan has an agenda in what he r reform, legislative language already drafted. and i do think the president-elect has talked along the same lines. i don't see why this can't get done. to me it would be the top up. if you really wanted to focus on growth, as the president-elect says he does. >> are you an infrastructure guy or that's one of the things that you might be okay with it or not? yes or no? >> i think an infrastructure plan if it's long term and if it involves the private sector and state and local governments too could make a lot of sense. it's hard to do. the devil will lie in the details. and i think if it starts right away, it's more likely because it's linked to tax reform. >> and how about blowing out the deficit. people are -- that's what we're

hearing about or no real entitlement reform on the horizon. do those bother you? >> well, i don't think we're likely to see blowing out the deficit in actual governing. i think there may be some net fiscal impulse at the beginning. but yes, eventually we have to have entitlement reform. i agree with the president-elect and obviously what speaker ryan is doing, we have to start with growth. if we can't get the economy growing again, nothing else works, and then we can reform entitlements. >> you were in, what, in w's administration? is that where you are, glenn? >> that's right. >> if they were to call asking for help or asking for advice, would you head over to trump tower and go up to the 24th floor or not take the call, you like where you are? >> i would happily give any advice that's asked for. i think that the new administration is on the right economic path, as least as i understand it. >> down the road, do you think that -- you said you were for tpp. what about, we heard

president-elect trump say individual deals with individual countries. can you get to the same place that way or do you need the -- you know, the overarching trade deal, tpp? >> well, i think it's a lot harder with individual deals and individual countries and a lot of economists prefer broad-based agreements. but the important thing is to consider the benefits of openness for the economy and to make sure that when people do lose from trade, and people do lose from trade in the u.s. economy, that we help them out. and that's what i'm waiting to hear more discussion of. >> life is funny. i never thought we'd back track on globalization, and now there's going to be -- probably we talk about it too much and the de facto it probably won't be what we think, but could we be a domestic powerhouse? did we take it too far? that we had to be too international?

could we bring things back here and sort of take care of ourselves? is that feasible or that's -- you just can't turn back the clock? >> well, i don't think we can build walls around america and i don't think we should want to. but i do think that while we generated a lot of benefits from openness, we didn't share those benefits widely in the economy and we need to do a lot more there. i hope the new administration will do more to think about supporting work by people who have been disadvantaged by trade. >> all right, glenn hubbard, i'll have someone call you, okay. >> okay. >> you're nearby -- no, i'm kidding. if they do, let us know and come back. if you do head up there, you're obviously well known and i don't see how it could not help in terms of hearing from everyone on what we should do because we all want the same thing. thank you, appreciate it. >> thanks, my prayers. the new york stock exchange, cramer joins us now. it was like 3:30 in the morning or something and you were tweeting. and you were like the same questions we were having.

you said this latest stage of the trump rally is oil related. you were sort of -- i can't figure it out. i don't know if you knew and could immediately explain it. is it just because that whole group does better earningswise so, therefore, it's good for the market? >> yeah. i think at this point people say if those companies are doing well, maybe the economy is doing better. that's been the trade. maybe worldwide economy is doing better. the chinese are up 6% year over year in their oil use. i also think that the fossil fuel industry puts a lot of people to work. the pipeline business puts a lot of people to work. in terms of the executive orders that mr. trump talked about on his youtube, what can he do first? he can say wer no longer going to block pipelines. but to not have the federal government on the side of the people who are trying to stop pipelines will make it so that we have a substantial amount of building. those jobs are good jobs. they're not jobs making solar panels, but they're good jobs. >> they're not.

so we shouldn't immediately, if it's just supply, that doesn't mean it's a bad thing necessarily. if you consider -- if you say it's demand, we understand why that would be good for the market but i don't want prices to go up overall. i don't want them to go back to 100. >> this is a good spot for a lot of american industry. they're making $20, $30 a barrel at 49. but i don't want to be fooled again by iraq and iran. we have not heard from them. we've heard from putin, nigeria, the saudis, venezuela. we have not heard from iraq or iran. we've only heard from others saying what they're going to do. i hate to be in a situation where i say, listen, we need an opec agreement because i know president-elect trump does not like opec. i know yesterday's rally was deeply related to oil. >> who's the swing producer now? do we split that with opec or is it us? >> yeah, we do. because the premium is so great,

we really do. let's remember natural gas, which went up a little bit off of this cold weather, is what we're king at. we can export a lot of natural gas. the world is taking our natural gas because it's so cheap. when we talk about building plants, we can build plants in the southeast with our natural gas and have a competitive price with nonunion prices. i'm saying in general if you're building a car, that's a union business. >> all right, we'll see you in four minutes or so. as we head to break, it's a big night for cnbc prime. don't miss the season two premiere of "billion dollar buyer" tonight at 10:00 p.m. eastern time. stay tuned, we'll be right back.

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morgan stanley all right, let's get a quick check on the markets one last time. the futures are now indicated up 33, after record-setting session yesterday. and the s&p also had a new high and it's up 2 this morning, up 13 now. on the nasdaq, the energy complex we're seeing kind of mixed. down than less than hatch a percent on wti crude. 110 on the yen and 1.24 on the

pound. >> those violent moves have calmed down. >> we have to wait until we get home sales in about an hour. >> s&p 500 at 2200. 10% total return year to date. >> wow. >> that's pretty amazing. >> thank you, mike. thank you. happy thanksgiving. anyway, make sure you join us tomorrow, whoever is here. "squawk on the street" is next. ♪ good tuesday morning and welcome to "squawk on the street." after all four indices hit record highs yesterday, they are only a point or two away from doing it again at the open. lots to get to this morning, including earnings and politics. watch europe and oil trying to hang on to 48 this morning with in