the $60, $70 level, david. >> thank you very much, jackie. jackie deangelis at the nymex. we hit highs today on all three of the big indices. the s&p, the nasdaq, and the dow jones industrial. that 'cause it for us on "squawk on the street." let's send it over the carl for "squawk alley." >> thanks, david. good friday morning. 8:00 a.m. at facebook headquarters out west, 11:00 a.m. on wall street. and "squawk alley" is live. ♪ ♪ in a white room with black curtains ♪ >> good friday morning.

welcome to "squawk alley." jon fortt with mike kantoly at post 9. kayla has the morning off. jop jo jon? >> lucky number 13 for the markets. the blue chips marching towards 20,000. in case you were counting, 42 days till donald trump becomes president. will this trump bump lift all or hiding future risks? joining us are brian jacobson and here at post nine john stoltz, oppenheimer asset management's chief investment strategist. good friday morning. >> good morning, jon. >> if i'm not mistaken, john, your projection a year ago for where the s&p would be right now is right about where we are. what do you make of this trump rally? was it going to happen anyway or is it worse off than you had expect smd. >> our expectations had been that the s&p 500 would cross

2,300 in 2016. but we've certainly gotten help from the election of donald trump. there's nothing like projections of lower taxes, of reduction of regulation as well as prospects that we're going see some significant infrastructure spent to get the market moving, the discount mechanism that it is. >> brian, how does this factor into how you look at the start of 2017? january can often be a rough month. lots of people were skittish about the markets heading up into the election because who knows what donald trump is going to do. now they seem to think they know what he's going to do. >> everybody does think they know what he's going to, do but i think only he knows what he's going to do. that's one of the bigger risks, whether or not he lives up to those expectations. i agree with jon about it being bullish for 2016. we said 2,250 for the year end for 2016, so he was mildly more

bullish than what we were. i think a lot of this was naturally built into the earnings power of u.s. businesses and then you suddenly get a little more bump from the prospect of lower taxes and less regulation. we have to see over what time frame that gets implemented. i'm an eternal optimist when it comes to that, so i think that actually within the first 100 days they'll be able to craft some legislation, but the big risk is that i'm wrong, that they aren't able to craft that legislation, come to a compromise with tax cults and some regulatory relief, and that's where i think it could be tough sledding. >> the markets seem to be in this zone where there are certain trends that it's comfortable with. bond yields are rise bug they're not too high. the dollar's going up but on a year over year basis not necessarily all that much higher. the fed's going to get active but they don't think they'll move to fast. where are the thresholds? >> we have to keep an eye on the dollar. multinationals suffer when the

dollar get taos strong. so far it has not strengthened too much. it's still on a trajectory where it's moving higher. we'd like to think that the dollar tends to strengthen in anticipation of a fed hike and then the dollar begins to come down or at least moderate on its growth path once the fed has raised rates. and since it took a year off between hikes, the big risk here would be a disappointment. what if the fed doesn't raise rates on the 14th? >> 25 bips. >> no more, no less. >> in the looking glass. we want to make sure we get the hikes. brian, cramer's point this morning was there's a bias against selling in the near term because if you wait till january, maybe you do take advantage of a would-be move in capital gains that could come in '17 and apply to that year. does that mean january's going to be treacherous? >> well, i'm not sure if it will

be because i don't think that in january we're going to have a lot more clarity about what the tax situation is going to look like. think about what his inauguration is. it's actually towards the latter part of january so it's maybe february or march that we get a bit more clarity on that. i hear a lot of people saying everybody's going to wait to lock in their capital gains until 2017 because of a lower tax bill. maybe some people are but a lot of money in the market is institutional or in 401(k) accounts where it's not affected by that. >> that would be a question whether chase bleeds new year's eve. >> we have to expect after a strong fourth quarter, considering if we keep moving higher through the end of the year, likely sometime in the first quarter the market will have either -- find a catalyst to consider some profit-taking or some worry item that might come about. and we could move a bit lower, take some profits in there. but we still think that the big risk, of course, is execution risk in terms of the trump agen agenda, but even that is pushed

out well 9 to 18 months ahead. so the market could have a fairly good run in here. >> brian, what about a potential inflation scare? we haven't really gotten used to those at all but you're going to be pouring some stimulus on top of the full employment economy or just about. is that something we have to be watching for? >> it is. you've already seen some of the inflation wreak evens move up looking at tips and such. i think it's already sort of building. it's not at scare but maybe at the tremoring part as far as what people are looking at for inflation. it will be key to look at the trajectory of inflation expectations and all those break evens. but i actually think unless we get above like 2.3%, with some of the forward-looking inflation measures, it's nothing that much to worry about. you just have to ask at what point would the fed slam on the brakes? i don't think they would do it at 2.3% or maybe even 2.5%, so it's only when you get above those levels i think it's going to affect the markets all that much. when i say markets, i mean

equity markets. clearly it will affect fixed income a lot more. >> indeed. lots of optimism now but a lot of details to work out. brian, john, thanks for joining us. have a great weekend. a little news in the media space. 21st century box agreeing to buy the portion of sky broadcasting that it does not own. fox has around 30-some-odd percent, 39.1% of bskyb's parent company. that would be a big deal. david faber is working on that story. we hope to hear from him a little bit later, but the moves continue. the meme moves even as 2016 draws to a close. >> there was talk after brexit when sky shares really took a hit as a lot-the british market did that it would be an opportune time potentially for murdoch to row re consolidate, so it seems like maybe it's on the way. >> keep your eye on shares. what a week it's been in media

already. disney close to its highs for the year. we've had that antitrust hearing regarding at&t and time warner. discovery not doing a lot but it's been a lagging play. snipt's starting to move. people think the more traditional parts of media might get a second wind. of course the other part of the empire consolidating, cbs and viacom. >> between that news, kent a coke, cohn at nec, a busy morning. after the break, we'll talk with the ceo of the national association of manufacturers, jake timmons. then billionaire entrepreneur donald trump backer tom barrack will join us. we'll talk about scott cohn and the inauguration. and later we'll speak with benedict evans in a cnbc exclusive, to talk about some fake news and reports that mark zuckerberg would be heading to washington in some people's view.

♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter.

morgan stanley

did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's 10 times faster than slow internet from the phone company. say hello to internet speeds up to 150 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. after calling out boeing and others, the new trump administration making an outreach to manufacturers. mike pence visited the executive committee of the national association of manufacturers yesterday. among the attendees executives from exxonmobil and others. joining thus morning to talk

more about that is jake timmons, the president and ceo of the national association of manufacturer. good to have you back. good morning. >> good morning, carl. how you doing? >> i'm good. what was this meeting like? >> it was a great meeting, a great opportunity to hear from governor pence on behalf of the trump administration about their commitment to growing manufacturing in the united states. i don't think you could have had a higher level of excitement than there was in that room yesterday to hear all the right messages about taxes, regulation, infrastructure, all of those issues that will make us more competitive in a global economy. >> we talked to fred smith a few moments ago, big international exposure. how do you balance the views that obviously it's a very pro business platform coming in but these individual targeted shoutouts or callouts to boeing and rexnord? how howe is the industry digesting all of that? thoo i think we are very focused on what the possibilities are for the future. the administration wants to

create a much more competitive tax code so we can create better -- a better environment to invest and grow jobs here in this country. the incoming administration wants to take a very hard look at the regulatory environment to make sure that we're not unduly burdenening manufacturers in the united states. they said they want to get going very quickly on infrastructure. those are all great messages and ones that we're very excited about. >> jay, how long before workers start to feel the impact from any of these possible moves? of course tights workers on the ground in many cases who did the voting here who were hoping for an environment that's going to be more friendly to them. if there are change s changes ie to benefit businesses, what will workers feel? >> if you create an environment where it's less costly to do business in this country because of our federal and state laws and regulations, that means more money is going to go into investments here, going to go into growing jobs here, it's

going to go into increasing salaries and benefits here. that's good news. to your point, that's not going to happen in january, but we're going to finally be on the right road after eight years of pretty difficult times for businesses in country. that's why manufacturer came out in droves sh quite frankly, in this election and they voted for change, they voted for a very different way of doing business in washington and we're really excited about that. >> jay, there's ban lot of voices in support of corporate tax reforms for a long time now. then it gets down to the details and legislative process. never seems to push forward in a kompl hencive way. if this does go forward under trump, are there provisions that you would look to protect? it seems as if trade groups always have some kind of a loophole or a special exemption or something that you'd want to keep. is there anything out there that your members consider a priority? >> i've got to tell you, if we get this tax rate down to 15%,

that is going to send a huge signal that america is open for business again. i do think there's one thing we can't forget about and that's that two-thirds of manufacturers pay taxes at the individual tax rate as pass-through entitieent. so this isn't just about corporate tax rates. this is about comprehensive tax reform across the board so that we leave no business behind. >> a lot of discussion on the front page of "the washington post" this morning, is trump sending a chill through labor, right, a chill through unions, writ's minimum wait a minute and puzder. is the national right to work going forward? >> i'm excited about incoming secretary puzder. we've been so off track here, we've been reinventing or re-establishing kind of a mentality of the past that isn't going to attract millennials

into the workplace or get them excited about possibilities in the workplace. we've harmed the ability of workers to be educated on the benefits of joining or not joining a union. we've created a really difficult position for small businesses to be able to utilize legal counsel when it comes to labor issues. i've been talking to terry o'sullivan, rich trumpka about the great opportunities in infrastructure and transportation infrastructure, energy infrastructure, and i think we've got a lot of opportunities to hire a lot for people, whether they're union or nonunion, provide great dignified, good-paying jobs. so i actually think this is going to be very positive for the workers of america. >> yeah. one last question. you mentioned infrastructure. and i just wonder whether or not you think buy american is going to be on important thing to watch or if the orders are going to be so monumental there's no way we can make all this stuff on our own.

>> look, the goal is we want to make as much stuff as we possibly can in this country with -- at the hands of american workers. and we're going to have to see how it goes, how this legislation shapes up. but i think it should always be the goal of folks in this country to try to buy whatever we can that's made right here in america. we want to create an environment through lower taxes, better regulations that's going to encourage more investment, more jobs, better paying jobs right here in this country to create more american goods. >> jay timmons, good to have you. please come back soon. >> absolutely. thanks for having me. >> 42 days until donald trump is sworn in as president of the united states. coming up, we will speak with trump backer and inauguration chairman tom barrack, his takes on reports goldman sachs president gary cohn is joining team trump. and later, hillary clinton breaking her silence on the fake news debate. recode's kara swisher will weigh

in. we'll be right back. cdw brought i.t. orchestration to growing businesses across the city, increasing productivity like never before, which is amazing, unless you're a barista. cdw implemented dell poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. so nobody wants coffee?! hey, can i get a couple copies? enhanced mobility by dell. i.t. orchestration by cdw. losing your hair is no fun and no one wants to be bald but there is hope. getting my hair back was the best thing that ever happened to me. i'm happy with the way i look now. i'm very excited about my hair. i feel beautiful. i love my hair. [ male announcer ] hair club offers all proven hair loss solutions backed by our commitment to satisfaction guaranteed. if you're not 100% satisfied with the solution you choose, hair club will apply the purchase price to another proven hair loss solution

or transplant more hair at no charge. it was the best thing i've ever done. it looks good on me. [ male announcer ] call in the next five minutes to get your free brochure at no obligation. it will tell you everything you need to know about your hair-loss problem and it's free if you call now. i am more pleased than what i had even imagined. i at least look, i would say, five years younger. i'm 52 and i look better now than i did when i was in my 40s. i feel great. [ male announcer ] and that's not all. the first 100 people who call will also receive $250 off any hair loss solution from hair club. call now!

breaking news on the trump transition. he plans to nominate scott cohn to serve as director of the national economic council. this would mark the third goldman alumni to join the trump team. join us this morning tom barrack, ceo and founder of colony capital. great to have you back on the program. good morning to you. >> good morning, carl. thanks for having me. >> i want to talk about the inaugural, but this cohn news is interesting. you have a trader now in a would be in a job that has historically been held by academics, at least in the past eight years. what does that mean? >> i think it's great news.

when you're trying to fill out a government, in addition to points of view you need to find mechanics that can actually work the system so that reservoir of qualified people become rare in a sense. having somebody like gary, who's a proven unbelievable professional and manager and very complex economic markets, capital markets, mainstream markets, international markets, is critical to being able to implement any economic policy. so i wouldn't read into it too much as to a change in policy. i would read in another sensitive, well-considered, thourgtdful pick of a really qualified candidate who's making a gigantic sacrifice leaving one of the best jobs on wall street to help out this administration. so i'm encouraged. >> the other interesting dynamic is you have someone who is ostensibly largely in charge of

operations at goldman day to day, just like some of these generals have been, just like wilbur ross has been. how does that work when you're transferring to an administration that is run by a guy who's used to holding all the cards, making a lot of the major decisions? >> look, i think it's a tremendous compliment to the president-elect because what he realizes is that when you're president of the united states you're not a dictator, right? it's not a coronation. so you're only as good as the managerial people that you have who can interface with 535 experts. right. off congress, and in that congress you have 73 committees. and each of those committees is responsible for their own territory. so having operational people who can work through an immense bureaucracy, i mean, the bureaucracy in the government is the biggest challenge to outside people, because if you don't know how to work it, you can't influence it.

i would's a tremendous compliment to president-elect trump. he's saying i can influence and cajole but at the end of the day i need operational people who have experience reaching into these bureaucratic processes and affecting them. i think it's terrific. >> tom, i wonder, are we going to see more different types of leaders other than operational? a lot of ceos, several multimillionaires and billionaires, generals who are being named in the transition now, but should we expect to see more of that or should we see more different types of leaderings as well? >> i think you'll see a real diverse type of leaders which will be the melange of the fabric of what this administration will be. if you think about it, right, starting from ground zero, there's no better choice than generals, people who have a cadence, a military operation nal point of view, discipline. style, organizational skills, to get into the system and access

it. once you do that, then you can start broad tng scope of influence you have at the edges. so i think that the picks for theech of these jobs should be focused more on somebody who has the ability to manage the mechanics than what their point of views are, because the point of view is going to be diluted down to a common denominator between congress, the executive branch, and the people. >> tom, knowing the mechanics and how they operate doesn't seem to involve at least with this slate of nominees folks who have been in this type of role before, right? in other words, not people who are pushing legislation through, necessarily running a cabinet department. is that going to be a concern? >> absolutely. i think it's the good news and the bad news. which president-elect said is i'm not going to reach into the reservoir of the professional politicians that have been there time and time again. i'm going to reach into a more diverse group. the problem with that is in most of these positions they have to go through senatorial

confirmation so that lessens the pool. additionally going out to qualified people, it's a tremendous sacrifice, a wonderful honor to go into the cabinet but they're sacrificing their personal life, their business life so, the pool gets smaller. when you then finally get this tiny pool and you're saying what i want is people that know the system but are not of the system, you start delimiting it once again. there's 4,900 jobs that need to be filled out in this transition. i mean, ill's an amazing -- and i'm lucky because they took all of the great guys and they said, okay, you're going to be in charge of finance, you're the treasury secretary, you're in charge of commerce, you're in charge of war and we need a party planner, barak, you're the party planner. so i have the easiest choice but it's difficult for these transition people to create the proper reservoirs of people who have experience and access but that don't have this embedded point of view that won't change. and that's the challenge. >> talk about what we might

expect come january 20th and in the days leading up to it, tom. what do you have planned? >> so, you know, the president-elect is kinding to a simple theme, making america great again. the inauguration is an amazing event because it's really the only peaceful transfer of par zan power that happens in this manner in the world. so it's really about the people. it's about the office. it's not a coronation to president-elect donald j. trump. it's a tribute to this incredible democratic process where we take one great president, president obama, who gracefully is on exit, and introduce another great president, president-elect donald j. trump, all in this wrapper of democratic freedom and joinder. so on november 7th we all debated and cajoled and argued with each other in a vigorous

way, and on november 9th we started to move back to unity behind an individual. and our hope is that this is inclusion nary, conciliatory, this is bringing together all of the elements of those that were sponsoring the president-elect and those who were not spons sponsoring the president-elect. bring it into one package and say the tribute is to america, to the people. it's not going to be a self-gratifying event for dronld j. trump, but i think the tone of it will show that. >> that's an important point because so much of the nary they've's been written lately is oh, mark burnett's going to be producing somehow, they'll be these high-gloss helicopter rides. you're saying that's not the intent. >> no. i wanted it to be the intent because i wanted to be in the helicopter as it was taking off. be, no, all these conversations were just rhetoric between two friends and of course mark burnett is one of the most brilliant producers in the world. president-elect is really born out of tradition, and his

respect to the office, his respect to the people is going to be out of simplicity and that american fabric after taking all of the different strings from across our country and weaving them together into this tapestry which will show the world a joined and united america after a very vigorous debate. that's the objective. >> tom, you definitely lit up the convention this summer and everybody i'm sure is looking forward to see what you have planned for january 20th. we hope you'll come back, tom. thanks. >> great. thanks for having me. enjoyed being with you. thanks, carl. when we come back, why former labor secretary robert reich is causing the president-elect mean, heady, and thin skinned. before we get to to that, rick santelli, what are you watching today? >> it looks like the curve's continuing to steepen with an unchanged on the week two-year but the longer end is starting to move out. we'll also be talking to bob heller. hey, regulation is a big issue, and regulators would take up a

big stadium if you put them all together. how can we change that? tune in after the break.

good morning. your cnbc news update. i'm sue herera. an explosion took place on a main road on a mosque leading into the city. joe biden honored a candidate last night in a state dinner hosted by prime minister justin trudeau. they'll meet today. trudeau is concerned about what the trump administration will mean for global climate control. a japanese government committee says cleanup costs from the fukushima nuclear meltdown will be $188 billion, nearly double the original estimates. japan's taxpayers will foot about $21 billion of the bill, tokyo electric power the rest. starting today, walt disney fans can buy a piece of history from the late animation entrepreneur along with hundreds of pieces of animation artwork, disney's last will and testament is up for auction online. that signed document is expected to fetch $60,000. that's the news update. back downtown to "squawk alley." jon, over to you. this thank you, sue. markets just closed in the uk

and across europe. let's get to seema mody to tell us how they did. >> hey, jon. european stocks mostly higher today as investors continue to focus on the ecb's dovish report. the italian banking index witnessing its best week in four years and hedge fund investor mark lazry telling me exclusively that political uncertainty has made italy a good distressed stunt. >> when up sort of what ice going on in italy and people are nervous and worried, ultimately that does for what we're investing in, it forces prices down. >> meantime, the european stoxx 600 index posting its best weekly performance in ten months up more than 4%. good week for the united states and for europe. >> seema mody. got more on this breaking news out of 21st century fox. david faber rejoins us at post 9 this morning. david? >> thanks, carl. you guys of course covered the headlines there. in fact, somewhat unexpectedly

perhaps for those who have been following it closely, 21st century fox making another attempt to acquire what it doesn't already own of bskyb, call it a little over 60% of the company it doesn't own, making an offer a few days ago of 10875 and that offer actually having been accepted by a special committee of the board of directors, although -- independent directors, but it does still have some commercial assessments that abhave to be taken into account and a number of other things. roughly a 40% premium above the unaffected stock price of december 6th, 36% above the last trade it had. you can see shares trading dramatically higher. fox for its part up a little as well. this something fox attempted to do over five years ago back in the summer of 2011 when the company made an offer back then of 6.75 p a share, then raised to 700 p and bskyb asking for

800. they did finally get to what appeared to be a deal but then the hacking scandal got in the way and ultimately news corp. at the time, fox, decided to abandon its attempts to acquire what it didn't already own of bskyb. as you see, relatively well received by shareholders at this point. the deal does appear to move fairly quickly at least from offer to acceptance. more to come, certainly regulatory review as well, but interesting move by fox. about a $13.5 billion market value overall for the company. >> all right. david, thanks a lot. david faber. let's get over the cme group. rick santelli and "the santelli exchange." good morning, rick. >> good morning, carl. my special guest bob heller. thanks for taking the time, bob. >> good morning, rick. >> bob, before we get into the thick of this quickly, for viewers, two-year note yields

aren't moving much, fives are moving a little more, but as you start to get down to the curve, tens are sitting at their cycle high closes and that's 244, the 30s have already blown through it and the dollar index is sitting right on its cycle high. so we want to pay attention to all those. listen, bob, this is a time of deconstruction, reconstruction, everybody concentrates on trump, but really it's the mission that he was sent there for. do you have any comments on some of the conversations you've been listening to? deconstructing and reconstru reconstructing a more efficient government isn't going to be easy but it's a task the markets seem to be enamored with. >> well, obviously it's very important to have right people in place. i think what trump is focusing on is to select leaders rather than managers and there's a big difference. he's taken people from the military and economic spheres

who are leaders rather than knowing how to move the federal bureaucracy. >> regulations. you've recently written a paper, the time has finally come for a single regulator. how is the deconstruction of regulations and regulators in your opinion, how should it proceed and tell us about your idea. >> tt a moment, it's mostly apparent in the financial sector but it's true in health care and other areas. we have a panel of regulators, a bank regulated by five, six, seven different entities on the federal side alone. class state regulators. so what's a bank to do? they have a whole parade of examiners coming through every couple of weeks. and it's difficult to attend to business. and ask the advice of the regulators or the requirement of the regulators are contradicting. so have one federal regulator

for each bank and that way -- or for each insurance company or for each broker/dealer, and that way you have clarity and you have responsibility. focus on the job that they're supposed to do. >> you know, bob, there's these commercials out where people can't believe what's going on and their head blows up into blue smoke. the fact that you're cutting the number of regulators i can tell you where the blue heads are exploding and why. less regulator is going to mean less supervision. in your final minute or so, tell us why that doesn't necessarily need to be the case. >> no. you need smart supervision. you need high capital requirements. i've always been for that. but don't get into the nitty-gritty of what every banker has to do. you don't want to make it more did i feel to make a loan. at the moment if you want to get a mortgage, you have to fill out a stack this thick, and the old days when i was still young, bought my first house it was a two-page document. that is regulation gone to the

extreme. and it doesn't do any good. all you're doing is signing 50 times your name, but you want to have smart regulations so that the banking system is safe and sound. that's what you want to focus on. >> bob heller, always interesting. it's going to be even more interesting to see how it all progresses and to see how accurate the market's pricing with that activity will look like one year from today. carl, back to you. >> all right, rick. thank you very much. rick santelli. when we return, strong words for the president-elect from former labor secretary robert reich. we'll get his thoughts on trump's pick for the labor department when we come back. first, a market alert. general electric with a hike 4%. 31.64. dow is up 62. [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.

may not always be clear. but at t. rowe price, we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence. the "the halftime report," what's left to buy? we start at the top of the hour. see you in about 15. >> all right. happy friday. a market alert on samsung. the company issuing an update that's going to prevent all remaining galaxy note 7s from charging. samsung says 93% of the recalled note 7s have been returned, but that suggs that some 70,000 of

the phones which had a problem with batteries in some units exploding are still in circulation if not in use. >> the fake news debate gaining momentum after having consequences during election season. hillary clinton addressing the issue in washington yesterday. >> it's now clear that so-called fake news can have real-world consequences. this isn't about politics or partisanship. lives are at risk. lives of ordinary people just trying to go about their days to do their jobs, contribute to their communities. it's a danger that must be addressed and addressed quickly. >> silicon valley continues to find solutions as more voices speak out against fake news. joining us to talk about that and all things tech, kara swisher, the executive editor at recode. happy friday to you. i wish it were a little happier -- >> happy friday. >> -- given how this has turned, obviously dangerous. >> yeah. >> last time you were here you

said there's no technological solution for people being obtuse. are you hearing any smart solutions out there? there are solutions. the point i was making, i do think silicon valley is trying to abrogate their responsibility here almost completely. they keep denying it has an impact. they keep denying there are consequences. the other day a sandy hook mother was threatened by someone who read fake news. obviously the pizzagate thing with the guy with the gun. these things have consequences. silicon valley is on rho gaiting its responsibility to fix this and fix it quickly or deal with it in a transparent way. so i don't think that they're not -- i don't think they're doing enough by any means. it is a difficult technological issue. there's absolutely no question. and there's nothing you can to since the beginning of time, people have been believing fake stories. it's just power and impact of the fake stories is so far beyond the old days that it's dangerous. it becomes dangerous. >> kara, people who have run websites and publications as you have know there are really only

a handful of sites, these days a couple that provide much of the traffic to content, facebook and google being at the top of the heap. >> right. >> if this issue of distribution of certain types of content is going to get solved, those two companies have the ability to solve it, do they not, based on whether they favor or don't favor certain types of content based on certain types of standards? >> 100%. i mean, look, everybody gets -- facebook and goog rl where everybody gets their news now, whether they pretend they're not media companies in some way and don't have some responsibility, that "the new york times" takes seriously every day, they're not creating the news but they are distributing it and they're an important part of selecting what gets seen by people. so they are a media company of a sort, maybe a modern media company. i don't know what you want to call it. and they absolutely are the ones that have to deal with this issue. you know, twitter to an extent, twitter's a little different situation. and obviously here's a safe space, snapchat, which picks its publishers and what people can

see on that service. you know what i mean? like why not start to think about that? and they've done it before in other ways. they tend to try to drag you into discussions about how it has one that has no impact, which it does, two, that it's a gray area, which some things are quite obvious, i think, and three, that you get a situation where they don't want to sensor people where they get false negatives, false positives, have all these different faces. these are very valid. these are smart people who handle it in advertising, when it suits their business needs, and they should be able to figure this out now. together, i don't know how they do it, but they should be able to. >> does it necessarily mean an impact on mau's time line engagement? stickiness? are those things that might be material to an investor? >> absolutely. but at the same time, do you want to create a cesspool? is that what you want for your business? that's the problem. a lot of these stories create a really bad user experience. and it -- you know, that's the thing i would like to focus on

because it's the only thing they seem to hear is that it does -- you know how you feel kind officy on twitter a lot of days? you never felticy on facebook, did you? have you? i feelicy on facebook right now, like often. so it's an interesting situation. and google i don't pay attention to because i'm searching for, i don't know, like garden hoses or whatever. >> so, kara, the new piracy. it seemed when youtube was becoming a thing there was all this pirated content showing up on youtube. hollywood was upset. the argue pt was well, we don't know how to stop this. they figured that out. is this a replay of that sort of situation? >> you know, they'll have a million excuses not -- sometimes i feel at this point in my life i feel like silicon valley is still 12 years old and they act like they aren't powerful, that they don't have huge businesses, that they just can't fix it because it's super duper hard. they've been part of creating

this mess and they should be absolutely part of fixing it. again, people putting these things up and creating them, people reading them and believing them, you cannot stop that guy from north carolina who got a hold of that story and shows up with a gun. that's not facebook's responsibility. that's not google's responsibility. but they certainly can do a lot to stop that kind of stuff from being disseminated to create that situation. and so, you know, again, you can't blame them for the guy with gun. at the same time you can't say it didn't -- there wasn't some bright line happening there. >> right. >> i just -- again, the guy with the gun was the problem, absolutely 100%. >> absolutely. we will talk about this again. i have no doubt. kara swisher out in san francisco. thanks. >> thanks a lot. some breaking news out of team trump. another reported cabinet pick. john harwood is in d.c. with more. john? >> john, cnbc has confirmed that kathy mcmorris rogers, the highest ranking republican woman in the house of representatives, she represents the state of

washington, is donald trump's pick to be secretary of interior. she's somebody who's focused on issues of hydropower in the house of representatives, the interior department is one where the -- had been considering mary fallon, the governor of oklahoma. he has now selected cathy mcmorris rogers of the state of washington in the house of representatives. adds more diversity to his cabinet, and that cabinet is rapidly filling up, guys. >> plus, his take on presidethe president-elect's late night tweeting when we come back. there's a lot of places you never want to see "$7.95." [ beep ]

but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. ♪ guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.

ways wins. especially in my business. with slow internet from the phone company,

you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. >> donald trump's cabinet continuing to take shape. andy puzder is appoint as labor secretary. this continues to clash with labor leaders and business on twitter, for which our next guest says our next guest makes him look mean, petty, thin-skinned, and vin district courtive. former labor secretary robert reich, economics professor at berkeley, author of "saving capitalism." it's good to have you back. good morning. >> how are you, carl? >> i'm good. where he just talked to the head of the national association of

manufacturers. they are ecstatic. >> the truth is that very rarely you get a labor secretary under a republican that's so adamantly anti-labor, anti-worker, anti-increasing the minimum wage, anti-overtime regulations. andy pozner has made an issue in his publications, blogs and so fot, of being against almost every provision of the labor law we have in the united states. everybody is entitled to have their own view, of course, but it's very rare that you have somebody appointed to be labor secretary that holds those anti-worker, anti-labor views. >> elaine chow, who will join

this administration in the role of labor secretary under george w. bush. there's some criticism of her tenure there. what areas of the labor secretary and secretary that's going to impact that that will affect workers on the ground? >> the labor department is really a huge regulatory agency. you have everything from occupational safety and health administration, workers safety, through pensions, through occupational -- all sorts of minimum wage -- those laws have been passed not just in the 1990s or 1960s or 1950s, but all the way back to the 1930s. these have been changed and modified for a time. you don't want to get the impression they haven't.

mine safety is another one that's been in the news. wilbur ross was in charge of a mine that had some real problems. the mine safety was under administration then. we might not see any of these enforced very, very strongly. >> your appear yangs on cnn in which you basically made an appeal to the president-elect to stop essentially bullying is how the times puts it this morning on twitter. he is doing his job differently than just about anybody ever has. you'll allow that? >> he is doing -- well, he has not even become president yet. he is doing the job of president-elect differently than anybody else, and there is a clear conflict between his sort of kind of tweeting industrial policy. you know, carrier or boeing or another company. he is singling companies out for praise or for blame. he is trying to do company by company industrial policy on the one hand, and he says he doesn't

believe in a free market, and on the other hand, you have got appointees or nominees look abandonee pozner that are free market fanatics. i don't know how you square those two completely different philosophies of how you hajtsds the economy. you see a difference? >> well, there is a huge difference here. donald trump -- he is not yet president. if there's any indication of how he is going to act as president when he is pregz-elect, he does seem to almost arbitrarily pick on certain companies who have been in the headlines because they've said that they are planning to ship jobs overseas like carrier. or he picks on boeing because of apparently the thing that actually triggered that was the boeing ceo saying something negative about trump's particular views on

international trade. >> you get this very, very odd kind of -- it feels very arbitrary, capricious, whimsical, and also it feels a little bit thin-skinned and vin district courtive because a lot of these tweets are against individuals. this is not the way you govern. at least not the way any president we know has governed, and the danger, of course, is not just that you are doing industrial policy on the fly, but you are also criticizing individuals for criticizing the president or the presses-elect, and that can get a democracy into deep trouble. >> i assume you expect gop leadership to assuage your concerns, keep him in line? >> i'm sorry. what kind of leadership? >> the gop leadership. >> oh, yes. look, paul ryan has indicated that he is not going to go along with donald trump's stated desire to have a 35% tariff on

any company's imports if they send jobs abroad. i don't think that gop leadership in the house is going to go along with the industrial policy in the white house. you do have this attention. mike pence is making, you know -- he is the head of the transition. he is advising donald trump. he is very close to paul ryan. michael pence is the kind of free marketeer that kind of traditional republican and donald trump is -- i don't know what he is. he is not just industrial policy. it's kind of a spectacle. he is making reality television out of his president-elect position, and he is certainly -- i mean, i expect that's what he will do as president. almost a two-year high, and in the survey they point to consumers responding positively to the impact of new economic policies post-election because of trump. do you buy that?

>> well, i think certainly they don't have quite a good reputation right now leading up to the election, but let's assume that the surveys are correct. consumer confidence may be higher because everybody says taxes are going to be cut, and regulations are going to be cut, and businesses like that. if you are an average working person, you need to watch your wallet. >> secretary, thank you for your time. see you next time. >> let's get to headquarters and "the half." the top trade this hour, streaking stocks with the s&p on its best run in more than two years now. what, if anything, is still cheap enough to buy? with us for the hour,stein weiss, josh brown, john najarian. she's with ubs. o'connor, head of macroinvestments. also with us today from toronto is kevin