>> thank you for being here. >> we spend every morning together. paul ryan, really a pleasure. >> thanks for letting me back on the show. >> yeah, you're welcome when you're in new york come back, any time. we go way back. >> oh, yeah. >> thank you. >> been a great show. i hope it was productive for everyone involved. make sure you join us tomorrow. "squawk on the street" is coming up next. ♪ great show in washington, guys. welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. live this morning on "today" show talking boeing, the stock market, twitter and more, futures are steady. europe's in the green for much of the morning. not much macro today but we are getting jolts in about an hour. road map begins with president-elect speaking to nbc

behind donald trump's call with boeing, his comments on the rally and stocks and his role as negotiator in chief. plus, softbanc ceo -- what is that going to mean for our economy and some important telecom companies. and twitter pulpit, fresh comments from trump and ceo jack dorsey on his use of the platform and what we can expect. and a deal that will have fresh scrutiny from the next administration, the ceos of at&t and time warner are facing questioning on capitol hill today. first up, donald trump has been named "time" person of the year. donald trump calling tremendous honor during his appearance on nbc's "today" show. and also elaborated on his comments he made yesterday about boeing and air force one. >> well, i think the planes are too expensive. i spoke to a very good man yesterday, head of boeing, terrific guy. we're going to work it out. but, you know, that's what i'm

here for. i'm going to negotiate prices. the planes are too expensive and we're going to get the prices down. and if we don't get the prices down, we're not going to order them. we're going to stay with what we have. >> that's what i'm here for. i'm going to negotiate prices, jim. >> i think we have to get used to the idea that he said he would be a deal maker. he would negotiate. everything seems like the first bid on the table. i mean, yesterday with boeing i did not expect him to get back fr from, hey, we're going to cut the price of that. he puts out a strong position and then expects the other side to negotiate. these ceos don't know how to negotiate. they've never negotiated with the president. it's a different world. when obama was slamming the banks, the fat cats, it wasn't like they were down there saying, hey, president obama, listen, we're not fat cats.

it was just by fiat, these things actually seem like negotiations. i mean, for real. >> well, you talked to greg hayes, which of course in some ways was the first negotiation. >> yes. >> although it was largely conducted i think details of it by pence as opposed to trump. >> right. >> but he clearly is going to undertake as he said on that interview with matt lauer, the opportunities to call up ceos and work deals. that's what he knows how to do. >> right. >> that is been what he's been doing for his entire career. and one would expect that's how he will continue to approach things. i don't know where that sort of ends though. you know, how many ceos can you call? >> well, you start talking to china, what happens when he calls merkel? >> here's "the washington post" this morning, a-1 corporate america unnerved by trump. greg in the piece says twisting arms like this is inherently problematic for president,

although "time" points out kennedy did this with the steel companies which has been a long time since it's been this overt. >> presidents have a long history of intervening in strikes or saying bethlehem steel has too many executives paid too much. look, we can analogize anything. last night on "mad money" i talked about the fact that harry truman wrote a critical note to paul hughes, slammed his daughter in a -- president trump, president truman. andrew jackson had 100 duals. he actually killed a man over a horse race. >> jackson analogies go back a ways with trump. >> 100 duels? >> yeah, a duel master. those are not negotiations. >> wow. but only killed one guy? >> well, i don't know, luck of the draw. >> but he was still 100-0 in his duels. >> well, i think he had kind of a record in -- >> i don't mean to dwell on that. >> no, i'm just saying that

there are precedence, just not precedence that come to mind. 1964, president kennedy '63, you get president kennedy and talk about what he did with bethlehem steel or truman with the railroad strike, but these are not recent history. we're not used to -- >> listen, lyndon johnson was a big negotiator himself by the way, in the corporate realm too but certainly within the confines of power he knew how to exercise it. >> love that. but what's interesting you see those guys waited to be president. we have a sitting president in the white house talked about his terrorism strategy. he's being eclipsed by a guy who's not in the white house yet. and i think that is unnerving. i mean, the idea that non-president trump calls greg hayes, i wore my boeing tie today. >> nice. >> yeah. and i'm thinking, all right, well, trump tie, boeing tie, there's -- this is a business

regime. you negotiate -- i know a lot of people felt this chicago tribune article which basically was boeing saying, listen, be careful china was part of it. >> but trump says he didn't see that piece prior to his tweet. >> how do we know he didn't see the military industrial complex and what president eisenhower was saying in his good-bye speech is that the complex is very powerful. we don't know. but what we do know a lot of things seem like edict are negotiation points. and we're just not used to seeing a negotiator in chief. >> right. in the times piece he goes into some sectors, i'm going to bring down drug prices. >> yeah. >> things we've become familiar with on the other side. interesting that democrats are now the free market agents, right? and it's the republicans who say there is room for the executive to move in and out of private enterprise. >> brent saunders a piece last week, look, the drug companies generally think they're going to do well. and here's brent saunders

saying, listen, you could have a horrific tweet, a vicious tweet was the term he used, which would be worse than the 2015 tweet that hillary gave. let's say he watches the show and says i agree with those guys from "squawk on the street." i think prices should come down. i mean, anything can happen. ask jack dorsey. anything can happen. ceo of twitter. >> right. but for those who believe in the free market. >> right. >> and the ability of corporations to do everything they can to make as much money as they can within the boundaries of the law, is that landscape changing for them? >> i think it is. >> not by the fact they're going to break the law, but by the fact they're not going to be allowed to operate in a free market. >> look, yesterday we had jamie dimon and bryan moynihan saying, how's -- trading is up, we're going to get regulation -- it's industry by industry. president obama didn't like the auto company. didn't really care for the

banks. here we have a president who is basically giving a green light according to all these guys they'll be able to get special dividends, be able to raise the rate, take control of their own destiny. so it's industry by industry. there was a number last night that came out, dave & buster's. i don't know if you've ever been, eat, play, fun. but there was a note this morning talking about how this may be the ultimate trump play. why? because they pay 37% corporate tax. so, you know, he giveth, he taketh. when he started discussion about deregulation, corporate tax, repatriation and basically says you're an american ceo. i know that many of these ceos feel like they're globalist, but you're an american ceo, so think about what you're going to do for america. that's the trade-off. i think for the last, i don't know how many years since the berlin wall, our executives view themselves as globalists. what i think trump is really saying is, guys, look where you are. look where you make the stuff. we'll give you a handout, but we're not going to give you something that is not without a

get. >> let me ask you this, you once said obama was unfit to serve. now he says he's doing right by the country. he called "time" magazine a failing rag. now it's a great honor to be person of the year. how do you know which policies are -- people are counting on a tax cut, right? so where is that line of what is talk, what is not? are you trying to even make that distinction? >> i struggle, like many people in terms of consistency. i think there are people in trade who are associated with the next president that would tell you, look, he is very much trying to get something done here, bring back jobs, whatever. but then you read the -- rex tillerson, interviewed for state department, he's one of the greatest free traders of all time. he is a total globalist. i think the issue is that can a guy who's an american who wants you to be less global appoint globalists without giving you a signal that, well, we don't know where you're going to come.

inconsistency is a bit of a hallmark. >> we heard from speaker ryan just now on "squawk box," when it comes to tax policy, i think it's a lot of people's expectation and i've talked to some people who certainly claim to know sort of how things are going to go or at least in their mind that he is going to be leading that charge. and that you're going to end up in some fashion with the ryan plan. tax reform itself will be the driving force early in this administration. >> yes. >> and by the way will have enormous ramifications for so many businesses, not just in the idea that their tax rate is going to be cut or that they will be able to repatriate money at a lower rate, but also the changes that are going to take place. whether it's the depreciation of plant property equipment, whether it is treatment of interest. >> right. >> whether from an individual basis you're still going to be able to deduct state and local taxes. by the way, if you're in california or new york, you may want to pay attention to that if you're a high earner. >> right. >> so there are going to be so many ramifications to these changes. and i think we do need to look

to speaker ryan to sort of get a real sense as to where we're going. he just said 20%. trump said 15% on the tax rate for corporations. we'll see where we end up. but he's leading that. >> but that's very interesting what you said. think about the idea that president-elect trump calls greg hayes and says, listen, you got to do something good. and then pence follows up with the details. now you got a situation where he says something about tax reform and then ryan follows up details. this is not unlike a true negotiation between top principles and then lawyers and bankers figure out terms. i mean, it's very business like. david, in many of the deals that you follow and covered, it's kind of like this -- >> it is the often way things will conceivably go. you have somebody who strategically has the vision and people who execute on it. i've also heard within the white house itself that the omb is going to take a more important role -- >> chance of gary cone there. >> seen as the gate kekeeper to

certain extent for all of the money, again, we don't often talk about the office of management and budget, we may do it more often with a trump white house. >> is it different, is it unnerving, i think that most ceos aren't used to getting a call from a president. most ceos aren't used to following twitter to see what's going on in their business. >> sure. >> you go back to that drug question. i just think -- i got to keep going back to twitter over and over again because, remember, this is a guy who does not like the press. he does not like the press. he does not use the press as an intermediary. he actually talked, i think, somewhat interestingly with matt lauer about how he's got so many followers, why does he need the press? the disintermediation of the press is also probably unnerving. >> twitter said 40 million once you roll in facebook and instagram, in fact on the "today" show this morning the president-elect defending his

use of social media. >> i think i am very restrained. and i talk about important things. i talk about, you know, as you know recently china and the fact we talked about their devaluation. we talked about they're building this massive military fortress in the middle of the south china sea, which they're not supposed to be doing. and ore thither things. and frankly it's a modern day form of communication -- >> even when you're picking fights -- >> between facebook and twitter i guess i have 40 million people, and that's a modern day form of communication, i get out much faster than press release. >> last night at the code commerce conference jack dorsey of twitter weighed in on trump's tweeting. >> having the president-elect on our service using it as a direct line of communication allows everyone to see what's on his mind in a moment. and i think that's interesting. i think it's fascinating. i haven't seen that before.

so we're definitely entering a new world where everything is on the surface and we can all see it in realtime and we can have conversations about it. so where does that go? i'm not really sure. but it's definitely been fascinating to learn from. >> where does it go sort of the original mission of twitter. >> i think if you were at a press conference yesterday and he were to say that the air force one was a billion number, someone might say, mr. president, i have actually just spoken to boeing. so it's a little one-sided. it's not like, you know, when we break something and people call us communist or fascist, he doesn't really focus on that. i know there was a "saturday night live" viral after he didn't like "saturday night live," again, go back to president truman not liking that review of his daughter. there is a fragile nature. most of the time when we do tweets i think we think to ourselves in the press, this is not exactly the most developed thought. right? i mean, there's constraint of characters. maybe if he gets you to use the

gifts. carl, can you imagine if he starts to be able to do the stuff you do? this could be the most exciting presidency ever. facebook live, david. mark zuckerberg is able to capitalize every more. >> every day is going to be an adventure. >> do you like that? >> yeah, though i think it could be a little tiring. >> you do? >> yeah, i do. >> comments about everything. you know, boy, this football game's a bad one. we have the big oakland/kansas city game. >> celebrity romance, i mean, he's done it before. >> geez, i got to start watching -- i got to do more pop culture. >> and start doing phoners from the oval office. >> how do you like that? >> sure. >> there's something to be said social media reaches more people. go listen to mark zuckerberg and sheryl sandberg, they're talking about reaching billions. listen, the "new york times" -- notice i didn't say failing "new york times," it's kind of there's an editor in there and people asking questions, you get on the one hand, on the other,

the one hand on the other has disappeared. right? say you tweet you're disagreeing with trump. you don't have your 40 million followers. this is a rather one-sided situation. this is really making the press less powerful. and i don't know maybe there's a lot of people in this country who voted for this man because they wanted the press to be less powerful. >> maybe. >> probably at least 62 million of them that's for sure. >> did you mean 95% of all counties -- did you see maybe like, jim, i don't believe what you're saying or did you ponder what i said and you're starting to come around? >> i'm not going to come around, but i'm considering what you say. i consider everything you say and i decide whether or not i agree or disagree. >> this could be like trying to get the definition of is under president -- >> could be. >> maybe. i don't know. did he say anything about us just now? does air force one fit in with all facebook live? >> you got to check. when we come back, the ceos of at&t and time warner head to

capitol hill today to make their case for their megadeal. also ahead we'll talk with under armour kevin plank and baseball manager rob manfred. dow up 17 of 21 now. more "squawk on the street" from post nine in a minute. you got it! what do you think? if you're going to wish, wish big at the lexus december to remember sales event get up to $2500 customer cash on select 2016 and 2017 models for these terms.

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ceos of at&t and time warner going to capitol hill today. a senate judiciary subcommittee on antitrust will question the executives on whether the deal will be anticompetitive. randall stephenson plans to tell senators his deal to acquire time warner will disrupt the tv model that will benefit consumers. also attending billionaire investor mark cuban, begins at 10:00 a.m. eastern time. but first, cramer's mad dash. [engine revving] ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event.

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all right. we got about seven minutes before the opening bell on a hump day, time for a mad dash with jim. >> there's so much news, i don't want to overlook the fact yesterday we were 5 for 5. autozone good numbers, an accessory -- well, and toll brothers, western digital, a flash memory company, after the close issued demand for both hard drives and flash based products was so strong across all customer categories driven by cloud and mobile applications as well as better than expected pc trends. that coupled with -- >> pcs? >> pc trends. that coupled with a note from micron about micron saying dram price has gotten very tight. david, this is -- basically one of the greatest comebacks i've seen. seagate is going to catch up. this is a sign of good demand for things we had written off. >> yeah. we don't need no stinking pcs, i

thought. >> pc strong? i don't want to recommend hp because there you have a lot of cross currents including printers. >> including the currency right now. >> this was astonishing western digital because it is a very good company, but we did not think -- we knew things had gotten tighter, but david, i mean, really tight to the point where supply no longer exceeds demand. average selling prices conceivably going up for products. this is very important. because it says, you know what, there's some things good happening to justify some of these prices in stocks away from the banks. >> yeah. >> so i want to point out we can't lose sight of the individual companies doing well, whether it be dave & buster's simple play or this. when i saw it said we should just be changing everything. i mentioned at the end of my show, "mad money," this is remarkable. who would have thought pcs would be strong? >> well, we're going to be keeping an eye on that and a lot of other technology names of course as we get closer to the opening bell this morning. talking a lot more stocks and news involving them when we come

back.

you're watching cnbc's "squawk on the street" live from the financial capital of the world. the opening bell in about two minutes time. s&p needs about two points this morning for another all-time high. we're looking for 22,014. dow needs 23 points. as we said earlier, jim, this phenomenon, dow's up 17 of 21, but since november 10th no gain has been bigger than half a percent. >> well, there's very mixed currents. today i think you'll see drug stocks go down. who knows how well the manufacturing companies can do, but you're seeing the finance group really lead this market. this goldman conference wilfred frost was at, most attended conference in years. people want to hear different companies, j.p. morgan, regions, rf, regions financial, there's interest in stocks that there hadn't been. and then there are other companies like pfizer is in the dow, i don't know what will happen to that today, if you really have a tweet, if you have

a mention of drug stocks. >> pfizer is one of the great beneficiaries of the ability to repatriate at a lower rate. >> very true. >> depends on who you talk to because there are a lot of intercompany loans in terms of what it nets to in cash, but it's a big number, $30 million, maybe more. >> but they've put through some big price increases. >> yeah, they have. >> i know the ceo of regeneron was on a panel with ian reed and there was a shouting match about price increases. price increases to cover up lack of innovation. i mean, there are drug ceos who would give you a lot of ammo if you're president-elect. i don't want to spend too much time on it, but recognize that the drug stocks that the dow is made up of a lot of different things that are working and not working. and there are a lot of company stocks that just aren't working or have stalled here. even as the averages look great. that's important. >> yeah. >> 3m is a good example. on election day was around 174,

now 171, has not participated but upgraded today at rbc. >> i saw that. i thought that was a very good upgrade because what it said was, listen, trump trade. that makes sense. >> let's get the opening bell and s&p at the bottom of the screen. at the big board it is under armour and major league baseball celebrating their partnership. we're going to talk to kevin plank and commissioner robert manfred in about half an hour. code.org dedicating access to computer science for all students. we want to watch apple. some news this morning out of usa today that this battery issue in which the devices shut down abruptly is larger than the company first thought. this exchange program has been going on for certain phones, but the issue may extend beyond phones made in the fall of last year. >> right. we are getting that story. i know there's some research from smallhouse talking about

how things may not be that good. one thing i would say is apple's reflecting a lot of bad, but not -- you mentioned repatriation of $40 per share overseas. >> yeah. >> so, yes, i understand. i'm hearing from a lot of shorts, listen, jim, why aren't you talking more about this apple battery problem? okay, apple has a battery problem. what do you want me to say? samsung had a really big battery problem and people forgot that, which is really rather amazing. you don't hear about samsung's battery now. >> no, well, all the phones are out of service, aren't they? >> the galaxy. >> seven, yeah. >> i'm just saying i know that apple has taken -- it's like timex, takes a licking and keeps on ticking, i mean, u.s. steel, u.s. steel is a leader here. hasn't been a leader in a long time. a.k. steel, these are companies that are doing incredibly well. there were tariffs that went to

the world trade organization, they went to these different organizations and said, listen, we are being hurt by the chinese. and president obama, president obama, allowed the tariffs to be put on and that group has been red hot and people feel it's only going to get better. remember wilbur ross, future commerce secretary, owned steel company, flipped it for a lot of money, steels are in vogue. >> they are. not as much as banks have been in vogue. today taking a bit of a rest though we'll see. things are still sorting out. couple up a few cents, couple down. but what a rally that has been. we heard from brian moynihan, ceo of bank of america yesterday on our show, as you said presentations from a number of the big banks. >> geez, they got more today. goldman pretty bullish. citi now and my travel trust owns it, current regulation burdensome, bank doesn't want to do proprietary lending, these trading desks are all afraid they can't take any stock down. looks like it's proprietary. but they're talking about credit cards doing very well.

the bank group, the earnings are too low is what you keep hearing, both from the trading side but also if the fed raises -- remember the fed? >> yeah. >> oh, geez, what if he tweets the fed should raise more than -- >> it's not inconceivable that you'll get him tweeting something about the fed at some point. >> i agree. but this market is following some traditional patterns. if a group's got estimates that are too low, stocks are going higher, i remember bank of america they were saying when are we going to trade above tangible book value $16 and change? here we got a premium. wells fargo, trust owns that, they said good things yesterday. wells fargo. >> right. >> so there's an air of good feeling with banks, some tech good, some tech bad, ehealth care, although not united today. i think it's important to put out boeing, united technologies, it's not like their stocks have had a tail spin. >> no, not at all.

even boeing yesterday despite that mid-morning drop did not end the day lower. >> no. and i think that's important. i think people quickly jumped to the conclusion this is going to hurt these companies, but david, the repatriation and lower tax rate is far better than whatever could be a negotiation for boeing on a plane. >> right. which is the point also speaker ryan is making when it comes to the idea of 35% tariff on goods manufactured outside. if you move the manufacturing outside the u.s., which he does not support, saying all the other things we're doing, deregulation, lower taxes across the board are going to be enough for corporations to embrace and do better. they're going to stay. ma sa son visited yesterday. >> what's the story? >> sparked a lot of speculation maybe in a trump led administration you get a very favorable fcc from a regulatory standpoint in terms of deals. remember, at&t tried to buy

t-mobile, justice department said no, as probably it should have said no. and then sprint and -- t-mo come together. and you are also given signals this is -- >> where's the bill going? >> first of all, let's back up. back in october soand we've got the saudis, the public investment fund kingdom of saudi arabia that is considering invest i investing up to $75 billion, so there you have $80 billion covered there and that would be over five years. that's a memorandum of understanding. the fund does not yet exist except in masa son's mind, and it may, certainly over softbank

is real and the saudis we believe is real, but they don't have it signed up yet. you have a $100 billion investment fund and looking around the world at growth opportunities, where do you think you're going to end up anyway? >> right. >> so you're saying trump should not have taken credit for that investment? would-be investment? >> what i did hear from people close to masa son that under a clinton administration he certainly would have looked long and hard about whether he would have wanted to invest in u.s. businesses in a large way and much more favorably disposed to doing that in the u.s. so trump can claim potentially some credit. that said, a lot of the money would have come from the fund. carl, we want to go to capitol hill. there's randall stephenson talking to our own eamon javers. let's listen in. >> i have not had any contact with the trump administration. >> reporter: what do you think this political moment means for your merger? this is a huge deal, going to attract a lot of attention. obviously we've seen donald trump out there tweeting his criticisms of individual companies.

>> actually, we're looking forward to telling the story about the consumer benefits of this thing putting these two companies together, the innovation that will come from that. we think it's a really good story. actually anxious to get in front of the department of justice and begin to talk about the facts of the deal. >> reporter: do you think you can avoid fcc scrutiny of this deal at this point and stick with the doj, how do you think that will shake out? >> we don't know yet. we're going license by license trying to discern which license will be transferred if any. that will dictate whether the fcc reviews it or not. >> reporter: thank you very much. appreciate it. >> as you heard there, eamon getting a hallway interview with randall stephenson, of course, ceo of at&t about to appear. oh, there's jeff bewkes, great american. >> great american. >> let's listen in. >> no. >> reporter: do you think the mood of populism in this country is going to affect the possibility of this deal having? >> no, i don't. i think the facts should become clear to everybody. and i think it will be seen to be good for consumers and good for competition. >> reporter: what do you make of donald trump tweeting his criticism of individual companies that he doesn't like or thinks have done something wrong?

are you worried about that as a leader in business that this is something you have to focus ongoing forward? >> well, it's a complicated issue. i think we should discuss it in the committee. >> reporter: okay. thank you, sir. >> and there was jeff bewkes, of course. mr. stephenson's counterpart for a deal that they negotiated some time back. one of the largest deals we've ever seen. certainly with great implications for the media/telecom sector. the argument being made by mr. stephenson, guys, is going to be, hey, we're actually taking on the existing structure of the business. and we're going to be changing it for the better from the consumer's point of view. it is vertical integration, any antitrust experts you speak to or certainly most of them will indicate to you that this is a deal that should pass muster given that. but we do have a president-elect who previously when he was campaigning said this is too much market power. he would object to the deal. remains to be seen whether there's any real followthrough

on that. >> one thing i've been saying and feel strongly about, you have to look at your portfolio and decide how much government interaction is there. if you're looking for the government to agree to do something or check off whether it be a drug company or maybe be an airline company, you better be aware that maybe there's going to be a discount on your price-to-earnings multiple versus a company that might be favored in this regime or ignored. there are a lot of companies not looking for anything from the government. and are not regulated by the government. and i think those are going to go up in value. >> you think lack of exposure to government contracts is an asset? >> i think that the ones that are -- have government contracts or need government approval are too unpredictable. not that they may not work out, but they're unpredictable. when i have a stock that's unpredictable, i want to pay less for it. i just don't want to go in there and say, okay, look, i'm going to go buy a company that right now is in front of the government on big trade deal, or is doing -- i mean, let's look

at an example like a proctor & gamble. you typically don't think of proctor as a company that needs government help or not. but if you listen to proctor & gamble call, international is where they make all their money. now, let's transfer that versus home depot. home depot is a domestic company. how does home depot benefit? they could have lower tax rate. how does home depot benefit? the president is pro-growth. so i'm going to put a premium on a home depot and maybe a discount on a proctor. >> sure. by the way, stephenson, i'm not sure if we got it on camera but he did tell eamon the company has not had any direct contact with the administration about the deal. >> yeah. listen, the question we're coming back to is what would the fcc under a trump administration look like, it may not apply, stephenson said, to that deal because there's not a lot in terms of puck lick air waves there that's a question he sort of indicated we're not sure. but certainly would have an impact on and look at deal such as from a doj standpoint and fcc

standpoint t-mobile/sprint, which gets me back to the conversation before we heard from stephenson, the idea of going from four to three is still a stretch for a lot of people regardless of what administration is in power especially given the benefits the consumer conceivably has had as a result of there being four players. sprint as we know, and t-mo going at it in addition to taking it to the incumbents at&t and verizon. so those who are rushing to the idea that somehow masa son's visit yesterday will really result in the ability to revisit that transaction may be a bit soon. >> yeah, there again i just think that's way too speculative versus when i had scott sheffield on last night, what does he say? we could have a very good tax regime for the oils. a lot of the oil guys say, listen, trump will let you expense everything. but he may not -- because he likes oil drilling. but we don't know where he stands in terms of if your phone bill might go up. >> or where the fcc chair he appoints will stand. and finally on at&t and time

warner, at&t's already shaken things up with this directv now offering. do you know that yesterday they indicated that they'd already met their expectations for subscribers for the entire month of december, only two days after rolling out directv now. what is interesting is apparently the product itself, remember this is 100 channels for $35, different price points as well, doesn't seem to just be appealing to those who don't have a video connection via cable, but also to mobile -- to wireless users themselves. people want the service for the phone and will have it and pay $35 just so they can watch a lot of tv on their phones. >> now, will that get numbers? will that get neilsen numbers? remember bob iger says we're looking at wrong numbers for espn. >> well, espn is on that, that has to somehow be included in the overall ecosystem. >> by the way, drugmakers definitely the laggard today, almost every s&p loser at the

worst is a mylan, allergan, pfizer, cardinal, abbott, merck, amgen, right? >> yeah. normally would move that stock, heavily shorted stock. >> comments "time" magazine indicated drug prices too high. quickly i wanted to do a short follow-up on my story last week about pandora just to add a little bit there. pandora is taking a strategy -- it's very early by the way in terms of potential sale of this company. i want to share they're looking at other potential acquirers beyond sirius so they can have leverage if and when sirius comes there that door with serious negotiations with a battle potential. it doesn't mean they're going to find other potential buyers, but that is the strategy at this point and certainly wanted to share it. is there an apple? you said no, most likely, jim, or google or any others out there who might consider buying the service.

certainly that would give them some leverage in negotiations that will begin with sirius at some point many expect. early days again but wanted to share that nugget based on sort of the reporting from last week as well. >> and greg maffei, what do we hear? to me this is a great asset with the revenue stream. >> and they're going to be unveiling their streaming direct -- their on demand streaming service i believe maybe today. >> yeah. this is very small cap company. >> yes, it is. >> all right. dow's up a point. pfizer's the worst component. let's get to bob pisani on the floor. hey, bob. >> hello, carl. mixed market, but you're right about the drugs underperforming. let's look at etf sector winners and losers right now. pgp, that's the pharmaceutical sector, see that one to the downside? of course president-elect saying doesn't like drug prices too high, we're going to get used to this. one day don't like boeing, next day don't like time warner, next day the drug industry. get used to that.

but the market leadership stocks still okay. financials and energy, but here's something interesting consumer staples terrible month in november. it's starting to show some life now in december. so the trump rally is continuing, but it's evolving. it's changing. remember what happened in november? it was basically buy the trump sector winners so we saw huge outperformance in financials and industrials and material stocks and huge underperformance with real estate and utilities and staples. utilities and financials a 20-point difference in performance in november in three weeks. that's extraordinary. you never see that. but it's changed. in december it's now slowly starting to evolve. the market is flattening out. it's getting more even. there's still a rally going on. and while you still get some outperformance in financials, look at industrials and staples, you know, energy, they're both basically doing pretty well overall. staples are up 0.5%, not down. but the important thing is the market's evening out. you're not getting these huge swings sochlt if i had to describe the markets and what's going on today, i would say

there's a change in market theme going on. november market theme was buy the trump sector winners, financials, industrials and materials. and sell everything else. the december market theme is a little more nuanced. you're talking about generic growth, the economy is predicted to grow and we're seeing slow moving up in the overall stock market sector. just a different kind of stock market rally that we're seeing here. another thing that might be starting to change, maybe gold. you see gold, remember, gold dropped 9% in november. huge drop in just three weeks. that's big for gold. but it bottomed. bottomed november 30th. and since then it's been moving sideways. you see it moving up rather nicely. almost 1% today. we had a rally this morning, rbc capital thinks maybe indicating the fed may be talking about very gradual rate hikes, not sudden rate hikes. that would be neutral for gold. so maybe that rally here in gold a little bit due to the federal reserve. finally, the trump effect continues. cfos a little more optimistic

than they were even before the election here. duke university survey out here asked the cfos has the election changed the way you look at hiring and spending, 12% of the roughly 330 ceos say they plan to do more hiring, 13% said more spending, but got more bullish in general overall saying are you planning to do any more hiring or spending? 58% said more hiring. 15% less hiring and those who asked for spending on overall, generally increases in that area as well. so modest increases in the optimism of cfos that trump effect keep rolling along. carl, back to you. bob, thanks so much. bob pisani. let's get to the bond pits and check in with rick santelli at the cme in chicago. hey, rick. >> good morning, carl. you know, many markets are at extreme parts of their ranges, especially from a year-to-date perspective. but not a lot of extreme volatility. it's somewhat extremely tight. lots of compression in ranges from equities to fixed income

for the most part. right now you have 2s unchanged, 5s down one, 10s down 3 along with 30s. so the curve is flattening a bit. look at our year-to-date chart. 10-year settle at 2.37. we're 2.36, slightly up on the year. bund yields they were, well, around 60 basis points. they're down a little bit considering they're at 35. if we look at jgbs, fascinating. it's somewhat on an extreme if you could call 0.3 extreme. but look how much lower some of those yields were at one point. and consider the notion they were around 0.025 currently at 0.3. look at year-to-dates after the renzi referendum, italian 10-year hovering around 1.90. right around 1 pntd 60, closed at 1.95 so up on the year. here's where it gets interesting. the dollar index off the lows is screaming. but it's not much changed on the

year. it's just a smidge higher. and of course if that's a smidge higher, the euro is a smidge lower. carl, back to you. >> rick, thank you so much. rick santelli in chicago. when we come back, a live interview with under armour's kevin plank and major league baseball commissioner rob manfred. we'll get the lowdown on their new partnership and a lot more. talk about extreme ranges, dow is not wavered farther than a few points from the flat line. back in just a moment.

take you live to washington, d.c. mark cuban at the senate

committee hearing. >> -- has any impact on this deal? >> i have no idea. >> what are you going to tell the committee today? >> i have no idea. >> are you going to make it up as you go along? >> don't i always? >> thank you, sir. >> thank you. >> take care. >> that hearing is going to be coming up shortly. we'll take some sound from it if we can. cuban a fan of the deal by the way, we should point that out, as the senate antitrust subcommittee looks at at&t/time warner. this is randall stephenson talking to eamon javers a few moments ago. >> no, i've not had any direct contact with the trump administration. >> reporter: what do you think this political moment means for your merger? this is a huge deal. it's going to attract a lot of attention. obviously we've seen donald trump out there tweeting his criticisms of individual companies. >> actually, we're looking forward to telling the story about the consumer benefits of this thing, putting these two companies together, the innovation that will come from that. we think it's a really good story. actually anxious to get in front of the department of justice and begin to talk about the facts of the deal. >> going to be interesting to

hear how the tone sounds and how it might have sounded had trump not won, right? >> oh, totally. i keep thinking about what would happen if hillary clinton had won. okay. well -- >> still should go through either way. >> right, but i'm saying everything -- drama. there's a lot of drama now where there was no drama before. >> yeah. >> you just don't know because you got to keep checking twitter whether -- >> maybe you get some conditions. the market now has come around to the view that it more likely will happen. remember in the early days of course the way the stocks were trading there was a great deal of concern. but we'll see. >> last night microsoft got linkedin. you should pay more attention. i'm just putting together a list of retailers watching this dave & buster's going up saying, okay, trump stock, trump stock, trump stock, bristol-myers, not

a trump stock, then trump stock, strump tock, trump stock. >> got it, good. got to get a new button. >> they do. >> on the "mad money" set. >> i just find you got to go really fast here. >> we're back in just a moment. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension,

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jim, what's tonight on mad? >> got southwest air. very exciting story. starbucks, big meeting today, five-year plan. and off the tape is a glass door interview trying to figure out whether you can measure how companies are going to do by looking at what they're internally saying to the employees. wow, i mean, i got to tell you, trump, no trump, it's a bridge game. >> new sound board. >> it's a no high. >> got it, some bridge terms in there. got it. >> jim, see you tonight. "mad money" 6:00 p.m. eastern time. when we come back, the ceos of at&t and time warner getting ready to testify on capitol hill. plus, kevin plank and rob manfred in a moment.

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street." i'm carl quintanilla with sara eisen and david faber at the new york stock exchange. a big hour ahead including the at&t/time warner hearing on the deal taking place on capitol hill testifying before the senate judiciary antitrust subcommittee. at&t's chairman and ceo randall stephenson, time warner's chairman and ceo jeffrey bewkes and billionaire investor mark cuban. we'll take you live to that hearing in a little bit. also, our exclusive with under armour ceo kevin plank and mlb commissioner rob manfred on the heels of their apparel deal. we'll talk about the new trump era and state of business and more. let's take a look at the markets as we always do at the top of the hour. the dow is up nine points outperforming little change on the s&p and nasdaq right now is underperforming those biotech stocks are getting hammered on the back of that "time" magazine article and comments from druond trump. quickly, the price of oil is a little bit weaker. it was stronger this morning, carl. >> meanwhile, president-elect donald trump is "time" magazine's person of the year.

speaking on the "today" show this morning he spoke about his plan for jobs and trade. listen in. >> i believe in free trade, but i don't believe in stupid trade. and stupid trade is when our companies move out of the country, fire our workers and come back in, matt, and sell their product with no retributi retribution. i'm saying very simply if they want to fire their workers, move to mexico or some other country and sell their product into our country, they're going to be paying a tax. >> we're going to have more from that interview coming up. but first bring in our guests weighing in on trump trade. guys, good morning to you both. ibrahim, you talk about investors bracing themselves for the new advanced economy political risk. what does that mean? >> well, it's really the continuation of trends we've had over the last few years which are not terribly surprising following that major meltdown in

the great financial crisis. and it's a combination of weak political mandates and rising sentiment, which is against the establishment, against the old elites which have failed in many ways to produce the sort of inclusive and sustainable growth that i think the populations were expecting from them. that gives rise to the possibility for these upset victories to new maverick to some degree alternative actors on the political scene, which is a fairly new phenomenon for the advanced economies. >> mike, does that fly in the face of the narrative that's been written since election day? >> i don't think it quite flies in the face. i think it creates a more complicated picture. i think on the one hand you have same president-elect saying sometimes you have to prime the pump, right? so i think the market is willing to bake in some kind of fiscal stimulus and with almost any policies attached if you're going to have a multihundred billion dollar swing in the fiscal balance, people get bowled up. we'll have a little reduce next year but then individual

companies as the subjects of these kind of outbursts and threats and on the other hand maybe some promises. and i think it's a little bit of an uneasy situation. that's why i think the market, the character of this rally has given people comfort. the leadership is cyclical. you're seeing the average stock go up seeing people saying, look, we're pretty positive on how earnings can come back here. but we just don't know stock by stock, sector by sector how that's going to play out. >> just for the global picture, ebrahim, we have risks, keeping a close eye on china and data on reserves, out of italy where there's political uphooefl and prime minister stepping down and on trump's handle are you surprised at the resilience of the markets in all of these sort of risks popping up under the surface? >> yes. let me also just be clear, when i talked about these advanced economy political risk, this is really a cross country phenomenon. in the specific case of the

u.s., there are clearly a number of factors supporting the market here including the expectation of more fiscal stimulus expectation of single party government that can actually do things including deregulate. so they're clearly offsetting positives. but it is true there are major risks with the global economy including what the future is in terms of trading system whether it's for goods trade or financial services. and you have these political risks which are clearly very evident in europe. we have the aftermath of the italian referendum. we have, i think, pretty contentious elections next year in france and questions about the future of european integration more broadly. so i would say there's clearly a question over the resilience of the markets in the medium term even though in the near-term i think there are these tail winds, if you like, from greater fiscal stimulus. it's still very accommodative monetary policy picture. and actually assigns when you

take a look today global stocks look better than it did at the beginning of this year. >> this morning, mike, bob pisani said the trump rally is evolving, so if you have a net backdrop the way ebrahim does, feel like -- >> it means the market is becoming more selective. but i do think, first of all, we can all argue how much of it is the trump rally truly the trump rally or some kind of year end rush. so, yes, i do think there's a big question. look, no doubt whatever's happened the market's not cheap. in aggregate. so that is why it becomes more important. that's why you're seeing these groups rotate. a day like today the bond yields stop going up. they've settled down for a little while. it's all about telecom and the staples again. so the money's not really leaving the market. it's not looking to leave the market. i think the risk in the short-term is people have gotten too comfortable, sentiment's gotten a little bit perhaps complacent.

and that means maybe you have to flatten out or have a gut check at some point. >> one of the optimistic policies getting banded right now in terms of adding growth to the economy is that corporations would repatriate hundreds of billions if not trillions of dollars that they've been parking overseas at a lower tax rate and go into the u.s. economy and help. well, this morning on "squawk box," chuck robbins, ceo of cisco, is asked by the team there how he would use his, i think, $50 billion or $60 billion parked overseas if he was allowed to bring it back. listen. >> we remain very committed to our capital allocation strategy. and it would be a combination of dividends, buybacks as well as m&a activity. if you think about the fact that we come back, if we were to increase our dividend and that flows through to mutual funds km flows through to middle class america which flows through and makes people feel dwbetter abou their income, i think the amount of money that would come back that flowed through in that way or companies spending on all capital expansion in the united states, i think all that is good for business. >> good for business, ebrahim,

but dividends, buyback and m&a, is that really going to lead to higher jobs and economic growth? does it do just the opposite in terms of jobs? >> yes. i mean, we do expect if we saw this major foreign profit repatriation deal most of it would end up being paid out as dividends and would have a very moderate effect only on capital spending. we have a little bit of a conone dr -- conundrum there which is following the crisis there's been more capital discipline from lots of managers in big companies, that's great for individual shareholders, that is, but as a company as a whole i think capital spending probably will stay pretty modest. so there's a macroeconomic cost if you like to that idiosyncratic or microcapital discipline. so i don't think we should expect too much of a boost on growth overall even if we did see these hundreds of billions of profits to be repatriated. >> yeah. given where cap utilization is,

some people might not be too surprised by that. ebrahim, appreciate your thoughts as always. thanks so much. and our own mike san tolley. when we come back, exclusive with under armour ceo kevin plank and rob manfred, it's a cnbc exclusive when "squawk on the street" comes right back with the dow up 18 points. generosity is its own form of power.

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baseball and fanatics announcing a big apparel deal this week. starting in 2020 under armour will take over as the official uniform supplier for major league baseball. and joining us now exclusively to talk about the landmark deal is under armour ceo kevin plank and major league baseball commissioner rob manfred. good to see you both here at post nine. welcome. >> great to see you, thank you. >> so, kevin, this is under armour's first big major sports league deal. how badly did you want it? >> so of the four major u.s. sports, yes, this is our first deal. so we've had lots of relationships, epl clubs in europe, big collegiate deals, you've seen the sign recently. but to take down one of the leagues with and most importantly a league that we think has such incredible momentum, such incredible leadership and frankly a vision of what it can be and the definition of america's pastime means the world to us. so especially as we look to grow out being a global brand, there's nothing more sort of iconically american than the sport of baseball. it's an easy step for our company and really makes sense for the brand. >> so you're a global brand. you're also a brand that skews

younger. and, rob, i have to think that that's part of your strategy here. baseball desperately needs some younger fans right now. >> well, we love the idea that under armour's a brand that young people like. we like the emphasis on performance, athlete performance huge for us. and quite frankly we found kevin's energy to be really appealing in terms of trying to move our sport forward. >> what about the global expansion? trying to take baseball abroad. how important of a goal is that? >> we have big plans internationally. a key feature of the basic agreement we just negotiated will be an increase in our international play. we have a great new deal in china. kevin's very strong in china. and we're anxious to try to build our international footprint. >> yeah, i mean, i got to see that firsthand. >> yes, you did. >> a few months ago. >> different sport. >> true. international expansion is huge for under armour. how do you deal with a new administration and now that is threatening to punish companies that take jobs overseas as you're trying to at the same

time grow your footprint overseas? >> so our international business is up 74% last quarter. we see it closing around 50% plus for the year. international big for us but still only about 15% of our total business. so we've got room to grow there. just to answer the first part of the question, we want to make sure we're going to do things globally, internationally but also make sure baseball is driving here. one thing we talked to the commissioner at when making this between ourselves and people playing baseball and as far as the way politics will play into this, i think you have a lot of curious people on the administration side right now trying to determine policy. nothing's in stone. so speculating on any of that wouldn't be -- probably wouldn't be the right thing to do. but i would say is i think they're asking a lot of questions and they're asking business about the things that can help them. so i think this is very excited for the future and, you know, regardless of administration i think we'd feel that way. >> nothing's in stone, but there are statements and tweets and companies have been specifically called out.

president-elect trump was named "time" magazine person of the year this morning, and in the article they quote him commenting on how he'll handle companies that are planning on leaving the u.s. to our conversation, speaking to his chief of staff reince priebus, trump says, quote, hey, reince, i want to get a list of companies that have announced they're leaving. i can call them myself, five minutes a piece. they won't be leaving, okay? kevin, if trump called today and said they won't be leaving, how do you respond? >> congratulations, mr. president-elect, i'd start there. and then i'd move into some pleasantries about what's happening. say first and foremost we're not going anywhere. we just announced a new 1,000 -- excuse me, 1.3 million square foot new e-commerce facility in baltimore city bringing jobs back to the city. i know 1,000 jobs there that don't get reported on. companies want to do the right thing. the positions of this acrimonious relationship between government and business, i think it's a bit misguided. it's about time for things to get righted with that is because first and foremost people in business they want to do the right thing. so everyone wants to do the

right thing. if the right thing is building here -- >> they want to do the right thing for shareholders, to save costs -- >> i believe that shift is happening. we're doing what's right for shareholder and particularly consumer facing brands is also doing about what's right for your community and your own people. >> and, rob, specifically in this deal there are some questions about a certain factory in pennsylvania owned by majestic, which is the maker of the uniform, 600 people work there. and it's unclear as to whether they're going to continue to make those uniforms. are you going to try to make a deal there? have under armour buy it or contract it? >> we're working really hard to make sure that we do everything possible to preserve those jobs. we've had a long and very positive relationship with the people that work in that factory. they do quality work. and i'm hopeful we'll be able to accomplish that. >> not going to close it? no plans to close it? >> not ours to close. it is a factory that we have great interest in in terms of continuing to do business there. and hopefully we can make an arrangement that will make that possible.

>> my first factory outside place ohio right on the ohio, west virginia, pennsylvania border. and i saw when nafta came through the first time i watched 186 sewing operators, 57-year-old female operator being told they're going to be retrained because one of their customers had pulled out. there's nothing worse than watching american jobs lose for things -- what are you going to retrain a 57-year-old to do? those kind of things are incredibly important to us. doing the right thing for shareholders, company and of course our community is really important to all of us. that aligns with baseball's thoughts as well, i would imagine. >> that also means moving manufacturing where i would assume it's the lowest cost to obviously keep your costs in line and make sure that you are still in an appropriate place in terms of pricing in the marketplace. >> yeah, but our industry has gotten away with that for too long. innovation in our industry the two olders are 56 and 62 respectively. a lot of what we're driving, new project we have called the

lighthouse in baltimore where we're looking to build footwear have shoes come running off the line. machinery needs to play a bigger role, innovation need to play a bigger role, but we can't chies the lowest dollar labor over the world. people in america want to buy product from america. the people of sao palo want to buy product in brazil. for any business i think it's going to be important. >> a lot of people believe that globalization for lack of a better word is sort of peaked. that supply chains have gotten too stretched and that your production should go to where your sales are. do you think that's true? >> i think our supply chain cycle is terrible. i mean, it's an 18-month product cycle effectively. when you're goot at 15, 16, months, you're not talking about fast fashion ready to go to retail. i think it's a place to focus innovation for our industry and one for under armour. >> speaking of international expansion, appears, rob, this administration might be less likely to open up to cuba. we got a lot of headlines and

comments after the death of fidel castro. i know it's been a baseball hot bed. what type of plans had you been making for the opening of cuba? and what happens to that now? >> well, our principle focus has been on players so far. we'd like to get to a situation where cuban players can come here, play and return to cuba if that's what choose to do. you know, that's aspirational. we've gotten through the last five years with cubans coming to the united states and staying. so one way or another i think cuba's going to remain a source of talent for us. from an economic perspective, you know, we went there last march, played an exhibition game. we don't see it in the immediate future as a real economic opportunity for us and obviously what the administration's policy is will dictate what our efforts will be in cuba. >> speaking of longer term economics, for your business overall certainly tv revenues are an important component, about the long term deals you signed with the networks, we talk a lot about the move to what we call over the top.

people now starting to watch tv on the internet and these bundles of programming that are quickly emerging that sometimes include sports networks and sometimes don't. how do you view that change in terms of the economic health of your sport given your reliance on that revenue stream? >> there's no doubt that we're in a changing environment, but we have two huge advantages compared to a lot of sports. number one, we have been a leader in the over the top movement, bam and bam tech obviously leaders in that space. we have alternatives available to us because of that not available in the same way to other sports. and more fundamentally i think it applies to all sports. there is content that people like to watch live. sports is at the head of that list. sports is going to continue to have huge value as these various platforms continue to emerge and change. >> but you can't get the cubs breaking a century long streak every single year. so how do you keep up those ratings? >> well, look, i think that you have to remember we had a great

post season because of the cubs, because of the way the indians played. but throughout the course of the summer we were the number one rated programming in 16 of our 30 local markets. there's tremendous strength in the fundamentals of our product. and we really do believe our game's going to continue to grow even in this changing landscape. >> when you're watching a game four of the world series, and you see, you know it's going to go to five or six or eventually seven, are you rooting for that extension? >> look, there's a general rule in baseball, you can't root for one team or the other. what you can root for in the post season is lots of games, okay? >> that's okay. >> yeah. >> so, kevin, you're not going to get away with not talking about your stock price, which is down 26% so far this year. what are you going to do to fix that? and i know we're also here today because you've renamed class c and attracted a lot of interest in that non-voting class share. >> yeah. our former what was known as class-c, that is our main trading stock we're using inside the company. just making that the default

ticker symbol was the first part of what we wanted to do. as far as our company goes we are focused on the long term. we always have been. our mission is to build the biggest, batdest brand on the planet and doesn't happen overnight. to declare the space third largest brand in the world this year gives us great kre dense and great belief in what's happening. what separates under armour number three from number four is about few -- but what separates us from number two is a big runway. we want to gobble the big fish up. >> do you have a favorite sport, kevin? >> it just became baseball. if it wasn't before, but yeah. no, this is great. but i love sport. i can -- i played everything growing up from football and baseball and soccer and up and down the line. so i think that's it. sports taught me so much. the celebration of what it means

of the lessons learned in the locker room, on the field, from coach, from teammates, learning to play with a team, there's nothing better. i'm so proud of our company. and i think our industry of what we're promote and celebrate, that's wa we do in america and about to take to china and other places around the world. baseball at the tip of that spear. >> thank you very much. kevin plank, ceo of under armour. and rob manfred is the mlb commissioner. thanks to you both. when we come back, take a look at stocks. by the way, dow just hit an all-time high as it is now up 18 of 22. stay with us. ♪ ♪ get up to $2500 customer cash on select 2016 and 2017 models

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let's get to phil lebeau with an update on this boeing, trump story. >> clarification from boeing regarding events yesterday that started with a tweet from president-elect donald trump and escalated there and really was the story of the day yesterday. boeing is now confirming that the president and ceo of boeing as well as the chairman of the company, dennis muilenberg did have a conversation with president-elect donald trump. they did talk person-to-person on the phone yesterday. mr. muilenberg congratulated mr.

trump on his election and they did discuss working on the requirements for the new air force one to potentially bring down those requirements and therefore bring down the cost to the taxpayer for the air force one contract. remember, that's for two 747-8s, as we know, guys, in the statement from boeing basically confirming they are going to be working on this. there is no timeframe that has been set in terms of going back to the trump administration saying here's how much we can bring the cost down on these new air force one airplanes. but you can bet that as they work on this they will be keeping him informed. remember, this plane is still in development. it's not like they're starting construction and assembly of this aircraft in a year, or two years. that probably doesn't happen until 2021, but again, boeing confirming that dennis m muilenberg did speak with president-elect trump yesterday.

saying we could bring down the cost, here's what it would mean if we did that. >> and cowen out with a note saying even if trump only launches a bombastic twitter shoutout this more aggressive approach to contractor relations could impact names like lockheed, i'm wondering if that's what you're hearing. >> absolutely. at the end of the day when these contracts are awarded what we may see in terms of an approach from the defense department under president-elect donald trump and then when he becomes president might be an approach of, look, this is all we're spending on this particular defense contract. whatever it might be, you better figure out a way to make it. and, oh by the way, you go over that amount, it's on you. now, there is -- that's already in place with the tanker program with boeing. we know they've had several charges for several quarters where they've said, look, we're not going to be able to make what we originally budgeted for this particular part of the project. i think we're going to see a lot more of that in the future from the trump administration.

and you can bet that they're going to be very public about saying, well, look, most people say it's going to cost x amount for this particular defense program. we're going to make them come in at this amount. it plays well to the base. the public looks at it and says, good, you're fighting for our tax dollars. >> phil, it's david. real quickly, i know i focused on this with you yesterday, i don't know if you're reporting has come up with, this $4 billion number the president-elect used in his official tweet. >> right. >> do we have any sense where this came from or whether he knows something we haven't learned yet because it's not in the public realm? >> to our knowledge we don't know where he's getting that from aside from the highest number we've seen out there, david, was an estimate by the government accounting office, the gao, last year, where it estimated that when it's all said and done these two new 747-8s will end up costing about $3.2 billion. again, that was strictly an estimate. we do know that the air force has budgeted $2.7 billion for

the research and development of these airplanes. again, it's not hard to see where you start at 2.7, add on costs that go into such a complex set of airplanes to develop and build that you could easily hit $4 billion. >> got it. >> phil, thanks so much for that. our phil lebeau in chicago watching boeing. by the way, we now have had a dow all-time high today, s&p just joining it a few moments ago. president-elect donald trump made "time" magazine person of the year this morning, and speaking on the "today" show he commented on the stock market, trade and boeing. take a listen. >> i think the planes are too expensive. i spoke to a very good man yesterday, the head of boeing, terrific guy. and we're going to work it out. but you do know that's what i'm here for, i'm going to negotiate prices. the planes are too expensive, and we're going to get the prices down. and if we don't get the prices down, we're not going to order them. we're going to stay with what we have. >> you mentioned the head of boeing that you spoke to, your comments about boeing -- by the

way, shortly after you made those comments the market value of boeing dropped about a billion dollars in a matter of minutes before rebounding later in the day, but your comments on boeing came just a short while after an article came out where the ceo of boeing was critical of your trade policies. so was this in the end about the price of those planes, or was this about retribution? >> well, only the planes, because i didn't see an article where he was critical of trade policies. and my trade policies are going to be terrific. and by the way, we're lowering taxes in this country. we're getting rid of 90%, maybe 85% of the regulations which is stifling business. boeing is going to be a tremendous beneficiary of that. and maybe even mostly regulations. i mean, people are more happy about the regulations even though we're massively cutting taxes. >> your transition team made news yesterday on a conference call where it was announced and i want to get your take on this, that you sold all of your stock

holdings and you did it back in june. is it true? and why are we just hearing about this now? >> well, i've never been a big person for the stock market, frankly. but over the years i've bought stock. and i bought them when they were low. i saw what was going on with interest rates were so low it almost seemed like it was very easy to predict what was going to happen. >> why did you sell all your holdings in june? >> because i felt that i was very much going to be winning. and i think i would have a tremendous -- a really conflict of interest owning all of these different companies. >> why not announce back in june when you were under fire for a lack of financial transparency? >> i let everybody know. i let everybody know. i was never a big stockholder, but i bought a lot of different stocks and i had a lot of stocks before then too. what i did is i sold them. i don't think it's appropriate for me to be owning stocks when i'm making deals for this country. that maybe will affect one company positively and one company negatively. i just felt it was a conflict. >> there's a lot packed into

that answer. john harwood joins us this morning to discuss outside trump tower. john, the headline on "the washington post" is corporate america unnerved by trump. do you think that's true? >> reporter: yes. but, i think there's a lot of hope in the air that maybe he won't do all the things he seems to be telegraphing he might do. i was talking last night to a major business representative in washington who said we would be disturbed if we thought this would keep happening. but we think this is a one-off. this is the kind of thing to send a signal that there's a new sheriff in town and we're going to have a new way of doing business. if that's correct, maybe people's nerves will be calm. but that could be wishful thinking. >> his comments about conflicts and owning stocks and selling in june. what does this tell us if anything about what he may say next week about resolving some of his business conflicts as he moves to the oval office? >> reporter: well, it's an

acknowledgment that the issue is real. you know, previously he has made comments consistent with the idea that, you know, if the president does it, it can't be a conflict. but it doesn't resolve the issue of the conflicts with the organization that's run out of this building behind me, the trump organization. the business is run by donald, eric, ivanka trump now that donald trump's going to be president of the united states, that's the big issue that people are concerned about. and we've seen in some of the meetings that he's had post election related to golf courses and india and turkey and all that sort of thing, that is an issue that will be front and center. one other thing i wanted to say about the business being unnerved that we talked about a moment ago. in the "time" magazine person of the year interview, he was asked about drug prices because he had echoed hillary clinton during the campaign in saying that he wanted the federal government to

negotiate lower drug prices since the federal government's a big purchaser. pharmaceutical prices had been high since the election on the idea that maybe he didn't mean it. he repeated in that interview, i'm going to bring down drug prices. now, don't know what that means beyond that mere statement, but i think that is a significant marker of the approach that donald trump is bringing to the white house. >> yeah. and some of those drug stocks, john, are getting hammered right now on those comments, even without any clarity on any kind of policies. i'm just curious what you're hearing from free market conservative republicans in terms of a response to some of these deals that trump is making with business telling them to keep jobs, threatening tariffs at the border, hang on, john, before we get to you though, we want to quickly go to this antitrust hearing where the ceos are getting sworn in. at&t, time warner, mark cuban there as well. >> you may begin.

if you could push the button until it turns red we can hear you better. >> of course on this hearing as the ceos make their case, david, for this $85 billion merger. we know that at&t ceo randall stephenson according to prepared testimony is going to say that this would disrupt the cable tv pay industry and be good and competitive for consumers. >> yes. that is going to be the argument they make. they already have introduced a product into the marketplace, not having to do with this deal. but the directv now product that they are going to be able to say already is disrupting certain things and moving towards a more consumer friendly model. interesting part of that of course is ability for an at&t customer to actually stream that tv product without paying for extra bandwidth or paying their carrier, in this case at&t. that could become a key point of contention in any review of the deal itself.

but the deal, sara, is vertical integration, many antitrust experts believe based on previous law a deal of that type should be allowed to go through. perhaps not without some conditions, but nonetheless go through. >> i wonder if we'll get a tweet about it. we haven't heard anything from trump since he was elected on the deal. he was anti as a candidate. >> he was. >> and stephenson telling eamon javers this morning they have not been directly contacted. >> yet. we'll see. we'll keep an eye on this hearing and bring you any headlines when they cross. when we come back, hearing underway, we've got the latest. the dow just coming off that new intraday record high. we'll keep an eye on it for you. the s&p as well right near an all-time high even though it is around the flat line. nasdaq underperforming largely due to the biotech stocks as john mentioned getting hit on some trump comments. we'll be right back.

good morning everyone. i'm sue herera.

here's your cnbc news update at this hour. rescue teams are looking for survivors from a 6.4 magnitude quake that struck indonesia earlier this morning. the death toll now stands at 93. the quake has no potential to trigger a tsunami. the iraqi army says isis militants launched an overnight attack against security forces in the soeutheastern part of mosul a day after troops advanced deeper into that city, residents, some holding white cloths were seen fleeing the area. a new study says repealing obamacare without a clear replacement risks making nearly 30 million people uninsured. the analysis from the non-partisan urban institute. republicans say that won't happen because they are working on replacement legislation. and today marks the 75th anniversary of the japanese attack on pearl harbor, a day president franklin roosevelt would live in infamy. more than 2,400 americans lost their lives in the surprise attack. only about 1,500 survivors

remain alive today. lots of remembrances on today. that's our news update. sara, back down to you. ncht all right, sue. thank you very much. let's quickly check on stocks this hour. we've been in a very narrow range. stocks are off their intraday record highs, both the s&p and the nasdaq. the dow is outperforming, goldman sachs adding about 12 points of that gain to the dow on itself. nasdaq under performing largely on these biotech drugs, health care is one of the worst performing sector. j&j is the worst performer in the dow after drug comments. let's show you the price of oil here because in the last few moments we did get word that u.s. crude stocks fell last week. refineries hiked output, gasoline stocks increased and distillate inventories rose, crude near the lows of the session down almost 2% and now trading below $50 a barrel. "squawk on the street" will be right back. hey! i just wanted to thank your support team for walking me through my first options trade.

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okay then, let's dance. (everybody cheers) yeah baby! welcome back to "squawk on the street" everybody. i'm sue herera filling in for dominic chu. the s&p 500 health care sector as we've been telling you standing out as the worst performing sector down nearly 2%. sector taking a hit as president-elect donald trump said he would, quote, bring down drug prices in an interview with "time" magazine. meanwhile, fbr and company says the market is overreacting to those comments. weighing the most on the health care sector biotech names like endo international, mylan. ticker ibb near session lows and on pace for worst day since mid october. health care only negative sector so far this week. you're up-to-date, carl, back to you.

>> thank you very much, sue. bewkes just wrapping up, now it's mark cuban's turn. >> the media world is changed. back in 1995, a partner and i started a company called audio net and billed ourselves as the broadcast network on the internet. we were one of if not the very first streaming content a aggregator and distributor on the net. back then biggest competitors were online streaming and consumption of content were radio and tv. the world has changed quite a bit since then. but maybe not in ways that are obvious. historically tv had been the dominant medium. we all used to wonder why we spent so much time watching tv. when asked why tv, my answer was always the same, tv is the best alternative to boredom. it's the closest we can come to doing nothing while thinking we are doing something. it was always our go-to way to kill time. those days are gone. in the past we went to our media. we came home, turned on the tv,

plopped down on our favorite chair or couch and vegged out. pulled out a cold beverage. today, our media comes to us. how content comes to us is changing almost daily and has become an important subject in a world of antitrust and media and distribution. today our best alternative to boredom comes from an app. firing up an app on whatever device you happen to have in your hand no matter where in the world you are is how we kill time. the idea that tv is the dominant content delivery mechanism no longer is valid. instead, we fill our time by consuming content from facebook, instagram, snapchat, messenger, whatsapp, combined these apps reach 1.5 billion users a month. they can deliver any kind of content in any manner the consumer would like to receive be it message, video, vr, post, ad, you name it, to populations around the world in a manner that dwarves television.

facebook is without question in a dominant position, if not the dominant position for content delivery. imagine what facebook and their respective competitive landscape would look like if they had not acquired instagram, oculus rift or whatsapp. if those were separate companies competing in the marketplace, the content world would look much different and far more competitive. facebook may be the biggest player now, but they're not the only major content provider. snapchat is taking over millennials as the best alternative for boredom. we all have seen the never ending stream of selfies, videos and more take over some of our kids' lives. for those younger than snapchat generation, and, yes, they do exist, there is musically and lively with tens of millions of users and growing, or microsoft's mine craft and quired property with over 100 million users. i can tell you personal experience punishment for my 7-year-old is taking away his mine craft videos.

he could care less if he loses tv -- experiencing declining share of content consumption is losing viewers to the other dominant content players and acquired property, apple with music, beats is an acquired property, and finally, google with youtube also an acquired property. and google's the ultimate programming guide, their search. given our time constraints, i'll pick another time to discuss the impact of having only two companies, google and apple, that act as the sole gatekeepers to the app ecosystem. but you may have noticed i've not mentioned at&t or time warner yet because neither is in any sort of dominant position. by themselves at&t and time warner will have a very difficult time controlling their own destinies let alone trying to exert influence on a market. this merger is not only one of survival and opportunity, but one that is needed by consumers. we need more companies with the ability to compete with apple, google, microsoft, amazon and facebook delivering content to

consumers in this app driven world is not easy. it is very expensive and difficult. apple, google, amazon, microsoft and facebook are five of the seven most valuable companies by market cap in the world and all have established dominant domi positions. that is exactly what the time warner -- why the time warner acquisition for at&t is an important strategic content acquisition. alone it will be very difficult, if not impossible, for either to compete with the companies i mentioned. together, it will still be difficult, but they will have a chance to battle the dominant players and increase consumer choice and competition for consumer attention. i've run out of time, but i would also like to say that each of the largest content companies i've mentioned so far -- facebook, google, amazon, microsoft and apple -- present much, if not all of their content algorithmically, at least with good, old-fashioned tv, we get to pick the channels we want, rather than our feed tell us what we want. thank you, and i'll look forward to answering your questions. >> thank you, sir.

>> thank you, mr. chairman. senator klobuchar, members of the subcommittee. on behalf of public knowledge today, i'm joined by consumer federation of america in our statement. i appreciate the opportunity to testify. mr. chairman -- >> that is mark cuban testifying on behalf of the time warner/at&t deal. obviously, a fan of the deal and taking a rather expansive view of the media landscape, comparing the mine share of a combined entity to a facebook or a google or even video games. in cuban's words, "tv was once the best alternative to boredom." today that comes from an app. certainly the way they would want to frame this. >> that's certainly a favorable argument to be made in their favor as to why they are not going to be dominant providers of any kind in this new world that he described. >> yeah, sort of making the case that it's fragmented and you have to factor in -- what did he say, facebook, google, minecraft? >> well, his 7-year-old he said plays minecraft, an interesting little anecdote.

>> mark cuban, media guru. >> yes. >> he's had a lot of success. >> yeah, he has. >> all right, we'll keep an eye on this hearing for you on capitol hill. meantime, we'll send it over to jon fortt with a look at what's coming up next on "squawk alley." >> hey, sara. my kids play minecraft as well. we're going to continue to keep our eye on this media story, at&t and time warner looking to convince lawmakers to let that mergee go through, and there's more. it looks like youtube is getting ready, perhaps, to launch a digital, over-the-top tv experience. we'll dive into that new new this week. all that and more coming up on "squawk alley."

this morning on "squawk box," house speaker paul ryan talked about the president-elect. take a listen. >> he's a business guy. he's a transactional, negotiating, bully pulpit-using business guy who's becoming president. i don't think we should be surprised anymore that he's going to say surprising things for an incoming president. he's an unconventional person. he was an unconventional candidate who's becoming an unconventional president. but what i like about it is he wants to shake things up. he's ready to get going.

he's not saying, let's just slow back and wait, which we get around here a lot. he's saying, let's go, go, go. that to us is music to our ears. we have been waiting for this opportunity to get very good, free market, pro-growth economic policy moving. now we're doing it. >> that's maybe the most important conversation on our air today. as cramer pointed out, david, and you did, too, that's where the rubber's going to meet the road and that's where they're getting -- they're like a runner on the block. as soon as his hand comes off the bible, as ryan said. >> and that man knows a lot about tax policies, focused on it, and that's going to be the key here, i think, and one that we're going to be very much focused on in the early days of the trump administration. >> not to mention the 85% of regulations he told matt lauer today he was going to roll back. a lot of hope on wall street. look at the stocks this hour. dow and s&p are off the intraday record highs. they're both still positive. they've been flip-flopping all hour long. the nasdaq underperforms. biotech getting hit. much more on "squawk alley," next. ge my portfolio.

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the s&p is up two points. quick check on under armour shares. we just had an interview with ceo kevin plank, an exclusive on cnbc, where we talked about the share price. those are the new shares -- or those are the uaa. they renamed both classes of stock, both "a" and "c" today.

they made the "c" class, which doesn't get votes, their main shares. they're both up today. when i asked plank about the decline in the stock price, more than 25% so far this year, he said, look, we're telling a long-term story. and if you actually do zoom out on the price of under armour, it has been quite strong. a moonshot, really, over the last ten years. so this year, underperforming along with nike, which is down 20%. and we'll be watching lululemon, reporting earnings after the closing bell today. send it to you, carl, for "squawk alley." >> sara, thanks so much. it is 10:00 a.m. at at&t headquarters in dallas, 11:00 a.m. on wall street, and "squawk alley" is live. ♪