keep an eye on what happens, but whether or not we see these tweets have teeth in the future depends on what he does with these tweets today. back to you. >> the mix of computer algorithms and twitter and machine trading, whole new landscape, dom. thank you very much for checking those stocks. and the dow is gaining a little bit of momentum here, a little over 08 points away from 20,000. with that, carl, to you for "squawk alley." >> sara, thank you so much. good morning. 8:00 a.m. at disney headquarters in burbank, california, 11:00 a.m. on wall street and "squawk alley" is live. ♪

good friday morning. welcome to "squawk alley." i'm carl quintanilla with jon fortt. kayla has the morning off. dow up 57 points. obviously the markets are our top story. we'll continue to watch the race to 20,000 in the wake of the fed's first rate hike as you know, of 2016. a lot going on. donald trump's victory since that time five weeks, looking at 8% on the dow, the best post-election rally on record. jonathan gow want is managing director. guy, happy friday to you both. good to see you. >> good to see you as well. >> tobias, people taking stock of the rally but paying attention to dollar strength. the lack of real policy specifics as of now. obviously memories of how bad last january was. when do we know when this rally is over? >> we think it's a bit overdone near term at the moment. interstock correlation, top 15

names in the s&p 500, is around 10%. that's one of the lowest levels we've seen in a number of years. historically when we've gotten this, the market seems to get a bit tired and we start seeing people being a little too aggressive, stocks back off. it's a near-term phenomenon. longer term, some of these policy proposals are clearly positive from a pro-business, pro-economy perspective and we saw a little evidence of that in the optimism index. small business likes less government, letsz regulation and taxation. it should turn into something more positive. tel aviven the lending survey from the federal reserve board over the last couple quarters suggests first half strength so dollar strength, bond yields moving higher, probably are have the longer tail of effect. but at the other side of that, you're going to be getting some of the pro-business legislation probably by the second half. >> jonathan, i believe you're looking at this as as long as the economy continues to replay, market views higher inflation expectations and rates positively, this rally could

continue. but my question is, how do you protect yourself to the downside with this trump rally? is there a particular industry that you're looking at as a canary in a coal mine, a particular strategy? >> if we liken this to say 1998, when the market just went up, you know, beautifully for a couple years, if you play this defensively, you're not going to participate precipitate in the upside. the winners will be banks, deep cyclicals and consumer discretionary looks really good. can you go and be half pregnant with this and play in let's say technology or something like that? maybe, but the risk you're just not going to have -- you can't have it both ways. >> so no need to worry about those spaces getting crowded? >> i think it's exactly what jon was saying. if you look at this, we've seen consumer confidence come in, small business consumer confidence up, big business, home builders. so when you see that, it means

this trade is continuing to reflate. interest rates are rising, inflation expectations are going up. and that's going to ultimately mean that it's going to push the banks higher on the back of interest rates and the cyclical trade because optimism about spending, and the spending is the key. doesn't have to happen tomorrow. just need to be convinced that this thing is on the cuff. six months, nine months from now, when we start to see the legislative agenda go in place, that then is going to be -- you know, it will happen. this earnings season not going to matter as much. we want the promise and that's where the market's going to be focused. >> tobias, what yo if you're on the sidelines sh not in the market? the gallup poll tells us most of the middle class is exactly there. is this a point where you get in? do you wait for some major pullback? when you see these dow approaching 20 k headlines, people get tempted. >> you know, let me put it in two different ways. from a sentiment perspective i think the sentiment is getting a little complacent in here, neutral territory, wouldn't be

chasing the market, wait for the pullbacks to step in. from a fundamentalist perspective, i agree with jonathan on financials and on energy. i'm a little less excited about industrials and materials simply because not because my background isn't in industrials, but rather this infrastructure spending story is not go geting a whole lot of traction on hill. the republicans aren't too excited about it. municip municipals, state governments aren't too excited about it. interestingly enough, it's not eve an big topic for the transition team. it almost seems like the president-elect isn't that excited about it right now. people are buying the hope and maybe a little too much hype. >> when do we start to see, jonathan, the macro guys up their gdp forecast for q-1 i mean for '17 and how much of that is expectations for cap ex? when does that start to move? >> good point. it's both the economists and the analysts that until they get specifics, they're going to leave their numbers stale. so the market's moving ahead and

people are saying multiples are going higher, the market -- >> true. >> but it's not that. it's that they refuse to change their numbers on ford or ge or whatever until they see specifics and therefore they're really underestimating the strength in this. as far as the power in the economy, you're not going to see a massive upgrade to '17. if these things are going to work, they're things that are going to hit in '18 and '19. i really do agree with tobias. when you talk to investors, you're not talking about the spending programs. they're talking about regulation, talking about interest rates, talking about taxes. not that you're not going to get a some of that spending but it's a tertiary issue. >> all right. of course by the time '18 rolls around it's too late. you're going to wish you had bought in '17 if all those things happen. >> the market's going to clearly -- the market's going to get ahead of the spending and that's the key. the market is telling you it's going to come. it's not waiting for the details. >> guys, it will be interesting to work our way through what cramer this morning called the gap between the earnings now and

the promise of that tripod deregulation tax, repatriation down the road. tobias, jonathan, guys, thanks. >> thank you. >> have a great weekend. sumner redstone's saga, julia has details. >> hey, carl. viacom announcing sumner redstone will step down from the br board of directors after the company's annual meeting on february 6th. he'll continue to participate in board meetings but in a nonvoting role. viacom shares are moving about 3% higher today on the news but still down about 13% over the past 12 months. this comes after earlier this week, sumner's daughter sherry redstone announced they ear calling off their proposal to recombine cvs and viacom, pointing interim ceo bakish as permanent ceo and naming him to viac

viacom's board of directors. he'll earn up to $12 million if he gets the maximum bonus, far let less than $93 million that the former ceo earned in his year returning that company. this follows a protracted legal battle over the past year over sumner redstone's mental capacity that resulted in him stepping down as chairman from both cbs and viacom, removing his voting role at viacom continues this transition of power. redstone is still on the board of cbs. no word from that company about whether he's planning to step down there as well. >> thank you, julia. also a few individual names we're watching this morning. oracle reporting ayn justed profit of 61 snare in its most recent quarter, one penny above estimates. sales disappointed. larry ellison highlighting growth in cloud-based revenue, especially software as a service. taking lots of shots at sales force, but investors not impressed this morning. shares down nearly 5% so far this morning. also watching shares of adobe.

that company beating estimates on the top and bottom lines for its most recent quarter boosted by a jump in subscription revenue. i spoke with the ceo after the results came out before the call, covering everything from m&a to mobile. that stock down about 2.5%, 3%. but we're going to hear from him later this hour. when we come back, disney looking to catch lightning in a bottle again with its latest "star wars" film. what moviegoers are saying about opening night for "rogue one" and what that means for bob iger and company. trivago making its debut this morning. we'll get an interview with the ceo coming up. and later on, recode's kara swisher on what exactly happened when silicon valley met donald trump earlier this week. dow's up 36. ♪

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eric davis had a chance to sit down with the entire "rogue one" cast and director. welcome to both of you. eric, isle start with you. pretty good rotten tomatoes rating on this one thus far, not higher than the force awakens but it's still early. these things move around. how good is this thing? >> it's really good. i think it's -- >> better than "the force awakens"? >> it's different. everybody is trying to compare the two. i think it's okay to like both of them. they both have their pros and cons. whereas the force awakens was more of a remake of a new hope, this is more of a reimagining of that era. i think it takes risks that "star wars" has never taken before. i think it's the gutsiest blockbuster of the year without spoiling anything. >> blockbuster of the year? >> i do think so. >> dwut si how? >> gutsy in that may make story decisions here you wouldn't expect from a disney movie. let's go that way. very dirty dozen, very kind

of -- felicity jones said they tried their hardest to make the "saving private ryan" of "star wars" movies. nobody's getting cut in half, there's no blood or anything, but it goes to show you the intensity of this film is on a level we haven't seen from these films yet. i think going forward it's going to be a good thing for these stand-alone films. >> dark mall got cut in half so it wouldn't be out of the question for "star wars." todd, how is this not an issue of sell the news? is it the potential for more female fans to get on board with this protagonist? >> well, first of all, i'm excited to hear from an expert that this promises to be a good movie-going experience. for the sock, honestly, any one movie including any "star wars" movie as big as it might be really doesn't make much of a difference to -- >> unless it's bad, right? >> actually, not really. i mean, if you look back at john carter or something like that,

you look at what happened to disney's stock, not so much. and it makes sense because, you know, a $200 billion or something like that enterprise, any one film actually doesn't mat they're much. "star wars" obviously matters more in terms of the whole arc of the franchise and the consumer products that are tied to it and the future of many films to come. but, you know, in terms of whether this beats a little bit or comes in a lit bellow expectations on the film, i'd be shocked if the stock moves either way. >> todd, eiger called it a an experiment earlier in the summer. we're trying to decide whether he was trying to manage expectations or whether or not you believe that studios now have a building that is five stories tall instead of four or three stories tall. does this -- could this force you to re-evaluate? >> you know, it's actually good to see some risk taking, i'd say. one thing that you hope for the vitality of the movie-going business is that we don't get

too formulaic. if you're going to take a few risks, this is a good vehicle to do it. they're stepping outside of the conventional trilogy, i guess, and take a bet. if my statement before is right in that eve an little bit of failure probably isn't going to hurt the stock, i think there's probably more upside from taking the risk than downside. you know, certainly, plenty to come back next year with the next "star wars" movie and revert back to the core if something here strays a little bit. >> speaking of taking risks, i'm putting you on the spot post 9 because you've both seen the movie. is it better than "the force awakens" or not? they're all different, yes. but better or not? >> i'm going to say it's better. >> carl? >> i will agree. >> wow. okay. >> but i can't emphasize enough that it's different. it's a war movie. >> it is. >> in a way i don't think a franchise film has been. >> what do you make erik, of this heroine kind of renaissance

that the "star wars" universe is going through? it used to be you had leah and if you squinted you had mon mothma. now two major characters. how much of a difference does that make when it comes to merchandising, when it comes to costumes, bringing more people into the fold? >> it makes a big difference. my daughter dressed as ray for halloween. this speaks to a larger trend in hollywood right now are these female-driven movies. we have wonder woman in 2017, an alien covenant movie, announced a big female villain movie. it's a larger trend we're seeing with the female-driven movies. audiences are demanding more diversity, more females in lead roles and i think hollywood is saying, okay, we'll listen to you, now come and see our movies. >> we'll see if we get the action figures of the women. that a lot of people are looking for. erik and todd younger, thanks for joining us. still to come, travel website trivago making its

market debut on the nasdaq today. the ceo will join us in a first on cnbc interview. also watching markets as the dow hovers just below 20,000.

trivago opened at the nasdaq today. the ceo joins us. good morning to you. congratulations. >> thanks a lot. >> the sheer calendar issue, getting this in before year-end, how hard was that? >> celebrate christmas this year, so i think it's -- we just made it in time. >> expectations for next year and for what you expect travel to do overall. we have an incoming president-elect, a lot of talk about the economy reflating, consumers with confidence in multiyear highs. is that going to help business? >> i think generally we're seeing very healthy growth.

so like online travel is very low penetrated to only 33% of people book online. we expect that to go up next year. for us, if the market is -- over the last five years it's grown about 90% year-on-year. so we don't see this industry trend so directly. >> where are the opportunities for technological advantage? is it in improving your mobile experience? are there other things that you can do to differentiate your experience from your competitors? >> yeah. i mean, mobile experience is already doing very well. so we went through the mobile transition in the last three years, and more than 50% of our revenue today is coming from mobile devices. but i think there is a major problem unsolved and that's really getting you into the ideal hotel. and i don't think that is happening right now so, i think

there's nobody delivering on that right now. and there's a huge value that can be unlocked. >> and why not? is that just a matter of showing people more images, integrating video? >> no. >> figuring out virtual reality? why isn't that connection working? >> it's not about showing content. it's about understanding a hotel, understanding what's good in a hotel, what's bad in a hotel, understanding also about you, what are you expecting as a customer and matching both together. i feel nobody is doing that and that's a problem we want to solve. >> strength geographically around the world, where is it the the strongest? >> so, i mean, we've seen tremendous growth out of u.s., so u.s. is definitely our strongest market and it became our strongest market in a very short time. and within three years. but we also are now going into lots of asian markets, japan, india, south korea, so that has a strong growth market for the next year. >> are you expecting currencies to have an effect one big -- for

good or bad as we look at dollar strength versus other currencies? >> so for us, that's not -- you know, we can't predict that, so for us we'd rather look at things that we can predict and currency is nothing that we can predict. >> rolf, when you look at a situation like cuba, which appears to be opening up but we don't know exactly what the trump administration is going to do there, what sort of waters does that create for lack of a better metaphor, for you to navigate figuring out how strategically to approach cuba? >> you know, every new market that is open for us is good, yeah, so i think, you know, at the end, to go against consumer wishes, you know, and then just limit down what consumers can do, i think generally that's not good, but at the end, we are not so much into politics. we are more into creating a great product and, you know, creating a great business.

>> is there a particular market right now that's a surprise standout, maybe having to do with currency or something else, just trends where people are visiting more than they have in the past? >> so i can just tell you what we are doing particular good. i think right now for us like -- and i think that is -- not sure if it's a general trend, but i think these markets will be catching up. >> congratulations to you, rolf. we're going to watch you guys closely. obviously, rolf schromgens of trivago trading today at the nasdaq. >> thank you. coming up, cameras only got a small glimpse of donald trump's meeting wednesday with silicon valley's tech titans. only one person seemed to have a look inside the room where it happened. recode's kara swisher is going to bring us some details next. what's the value of capital? what's critical thinking like?

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demonstrators assembling outside the consulate about controversy in aleppo. a cease-fire evac unraveled today. mylan will start selling a generic version of its epipen. mylan says it will charge $300 for the two-pack. it will reach retail pharmacies

starting next week. mitsubishi is recalling more than 50,000 outlander sport suvs from the 2011, 2012, and 2016 model years because the rear hatch lift gate can suddenly fall on people. it's unclear if anyone was bothered by that falling hatch. extreme weather hitting parts of the country. new york state, lake-effect snow combined with 50-mile-per-hour winds creating intense blizzard conditions and the forecast calls for even more snow. much of the northern half of the country has been hit by bitter cold today. that's the cnbc news update. back to "squawk alley." carl? >> scott, thanks very much. we are count do you think to the close in the uk and across europe for the week. stocks mostly higher led by pharma, oil, tell con and tech. germany and france each on track to finish at closing highs of the year. same for the euro stoxx 600. the broader market index still in negative territory for the year to date, just slightly. the euro stabilizing after

falling to 14-year lows against the dollar. that is the story that has everybody's attention, front page of "the journal" above the fold, dollar creating some global turmoil. meanwhile, president-elect donald trump meeting with tech leaders and ceos wednesday discussing shish issues ranging from immigration to education. but details are hazy. kara swisher from recode has an article putting readers inside the room where it happened. good morning. happy friday. >> how you doing? hoo happ happen pri friday. >> what dupg the headline is out of the meeting? >> they talked about a lot of stuff. they had a discussion about issues important to tech, immigration, paid maternity leave, the cloud, china, all kinds of things. and each of -- what i did is i said what everybody was actually talking about, instead of this pretty vague reports that were like jobs and education and stuff. so i was trying to get more specificity. elon musk was interested in

climate change. sacha nadella brought up immigration and h1b vivas. i was trying to get a sense of how it went. eric schmitt, the executive chairman of google, told president-elect trump he should become the software president. stuff like that. just the details of what they discussed. it wasn't a very contentious meeting and they certainly didn't bring up the tougher issues with him or try to challenge him on any of his more outlandish statements that he's made about tech. >> kara, you had a column that was very critical of these tech leaders for taking this meeting without putting either some conditions up front or making a very clear statement about their values as opposed to the ones that he espoused during the campaign. after this reporting and hearing what happened in the room, are you still feeling, i don't know exact hi how to characterize how you were feeling in that comment ahead of time, but are you still

feeling the same way or do you see a strategy emerging here that you perhaps hadn't anticipated going in? >> no. no. i think they didn't challenge him enough. i think they did try. i think, for example, sheryl sandberg pushed him hard on paid maternity leave and is a that nadella pushed him hard on immigration, but i don't think they pushed him hard on the other issues. a meeting like that, i get that it's hard. they could have said something before. all of them together could have said these are things critical to tech. interestingly, none of them put out statements to their own employees afterward, which is typical when executives go to these meetings. there wasn't a peep. there's a lot of discomfort within the employee ranks and a lot of employees are have put together statements about this and signed different things around muslim registries and things like that. it's interesting that said nothing at the start and nothing at the beginning, which should tell you a lot. when you feel that you've made some progress, you make a statement. and none of them made a

statement. i find that fascinating. no. i feel the same way, jon. >> you bring up the issue of trump's children with schlie three seats at the table. you say some of these executives found that appropriate. we're having to get used to the idea that family as cramer said this morning in real estate is a real deal. i mean, these are executives who are being groomed to run this business. why shouldn't they be allowed to advise and share in what their family member, the president-elect, is doing? >> because there are conflicts of interest. what executive wouldn't pay to be in the room with the top leaders of tech? nobody gets a front-row seat like this and they're running a separate company that's supposed to be separate. again, it also took up space from real ketek leaders if he really wants to hear about it. those are three seats that could have been taken up by people like jack dorsey, aaron lechy, stacy fillpot brown of task rabbit, all people that could

have contributed thoughts that might have helped the president-elect. i think one of the quotes was this is now a family business, but it's not a family business. so i think they were right to feel it was inappropriate that they were there. and, again, any executive would have paid a lot of money to be sitting next to a tim cook, elon musk, sheryl sandberg and many others and were not able to because they're not related to the president-elect. >> kara, on the issue of how technology executive, maybe just executives in general, deal with a chief executive or an executive branch that has different values in the ones they espouse, i wonder what you think about this. i've been pondering, how is the standard different for a u.s. executive versus china, versus turkey, versus some of these other countries where companies, you know, apple, google, facebook come to mind? they have this policy of engagement with these administrations who they disagree with on values. >> yeah. sure. i didn't say they shouldn't

engage. this is the united states of america and they should have put their -- i think a lot of their employees wanted this to happen. i think they could have as a group of people gotten together and said here are the issues that are important to us -- immigration, tolerance, encryption, whatever they wanted to say. but i think they just didn't speak out because they're trying to get along, which i understand that completely, but these are the leaders of the most important companies probably in the world at this point so, i feel that they are just as -- they're important leaders and so they have an important voice and they have an important influence and didn't really use it here. and i get why they did it, and we can all say, oh, of course, they can't be impolite, but there's ways to put your opinion out and be polite at the same time and get your viewpoints put through, and that's the whole point of a democracy, i think. last time i looked. i feel like they should have. they should have talked to their employees about it. again, that they didn't put out -- i haven't seen every single company, but it doesn't look like any of them put out --

except for jeff bezos, which was a wider statement, none of them put out a public statement afterwards or before. interesting. that's interesting to me, because these people never shut up other times, so i don't know. >> we did hear a lot from them following the election itself. finally, what do you make of thiel's role going forward? is he really the gatekeeper to trump when it comes to silicon valley? >> well, it seems like it. they'll obviously establish their own relationships. a lot of these people had never trump who went to that meeting, so that's interesting. once he meets you, it looks like he does that a lot, he's quite good at it. i think jared kushner, i think a lot were struck by the involvement of jared kushner, the husband of ivanka trump. he's ban point person on this and they felt like he might become a point person reaching out to tech. he has some experience in the area. his brother has a company, oscar held, so he's familiar with the

sector. so they didn't mention jared kushner several times, and no other administration person, not steve bannon was in the room, not reince priebus, none of them popped out to any of the people i talked to. >> also interesting to note, safra catz, ceo of oracle, has. >> john:ed the transition team. she arrived early at trump tower for meetings with other members of the trigts team and people who have been nominated to be part of the cabinet. >> yep. she was there.kara, appreciate intelligence reporting you do so well. >> thank you. thanks a lot. >> president of recode out west. while we were talking we had this international dispute brewing between the united states and china this morning. for that we go to dom chu back at headquarters. >> yes, sir, carl. what we have right now is nbc news confirming through a defense department official that a chinese navy ship has stolen a u.s. navy unmanned underwater vehicle. think of it like a submarine

drone. according to this official, the glider was being retrieved by a u.s. vessel just about 50 miles, 50 nautical miles northwest of subic bay in the philippines when a chinese ship that had been shadowing that u.s. naval vessel came in and sthachd up this particular vessel. the issue according to the official is being addressed through diplomatic channels but still speaks to some of the tensions brewing between our government and the government over in china. back over the you. >> yeah, dom. we've been watching, obviously dow um now 12. it was up 50 pointing higher than this level. how much are we attributing to this particular report? it's kind of crazy with these swings. >> it is. we can talk about the moves america suredly. the news did come out and we did see a corresponding move lower in the markets. whether or not it was completely because of this remains to be seen. a lot of people still say we're working off some very overbought conditions where markets are statistically high to a point

they don't normally trade this way. this could have just been one of those catalysts to take a little bit of air out-to the market. like you said, we're still positive. we'll see how it develops. it is being addressed through diplomatic channels. there's no need to read this is going to be any kind of a worse situation, i guess, a fiery situation. >> we are looking at charts of gold over your shoulder as well, which has moved up about ten bucks. we'll obviously keep our eye on that. thanks very much. dominic chu. when we come back, comments from adobe on everything from the cloud to m&a after that impressive fourth quarter. a stock that jon knows better than anybody. in the meantime, rick santelli, what are you watching? >> wow. you know, listening to dominic talk about china and that context, looking at the moves in our interest rates and how they've affected china, i guess what we have to talk about today are these loud china moves a yellin issue? that's what we'll talk about after the break. world ugly and messy.

they are the natural born enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful.

if you're just joining us this morning, the market has come off of the highs as we are on our regular dow 20k watch earlier today on some reports out of reuters a u.s. defense official saying a chinese navy warship has seized an american underwater drone that was being deployed by an american oceanographic vessel in international waters in the south china sea. according to the official, the united states has demanded the return.

all of this being handled through diplomatic channels. hard to know -- don't know much more than that other than there's that report and then what appeared to be a coincident reaction in some stocks and certainly gold the past half hour. >> yeah. little bit of a recovery since then, but a story we'll continue to watch. also, adobe reporting fourth-quarter earnings after the close yesterday. i spoke to the ceo about growth, both from m&a and mobile. >> for a lot of those companies, if they're looking at upgrades or replacement for phones, that might be the metric that's more important to them. for us clearly the more important metric is install base and how many people are using mobile to transact businesses with enterprise or do do creation. as we know, that is an incredibly large opportunity for us. >> he's particularly speaking to the idea -- i asked -- well, you know, apple's iphone numbers not growing as much as they used to. samsung having trouble. he's pointing out from our perspective it's just the size of the overall base that's

important versus whether the replacement is particularly strong. he and i discussed start-ups and valuations in the private market, how that might affect m&a in 2017. >> i think a lot of that will depend, jon, on valuations and where valuations go in the private market. there's certainly some frothiness there, and there are a number of companies that have been created that are not stand-alone companies. so a numb per of them will look to acquisition as an exit strategy. >> one thing you should not expect to see happen, carl, is adobe getting acquired, i would think. there were rumors about some kind of a tie-up with sales force. you know, i would point out adobe's market cap above $50 billion, sales force's market cap just below $50 billion. so while mark might have a larger than life personality, sales force does not have a larger than life market cap. >> with adobe and oracle last night, what a night for legacy, big-cap tech, a big night for

you, jon. meanwhile, dow is up 17, 18 points. let's get to the cme group and check in with rick santelli and get "the santelli exchange." rick? >> thanks, carl. you know we like to keep it real in real time so before we get into the exchange today, i want to show you some charts with the current story dom and carl have been talking about with regard to china. if you look at an interday of two-year, an intraday of ten-year, intraday of dollar index. there is a response that makes sense, albeit a small one with the stock market moving down, flight to safety, pushing yields down a little bit and the dollar index getting some price volatility. it's not large in the cop text of moves we've had with janet yellen and company, but i like when we can cross-reference an event with market moves because there's logic to that. today's point, it's connected and are these loud, big moves in emerging markets and china, which is a sub seth therein, a yellen problem? not as in yell bug as in janet

yell yellen. let's consider all the moving parts here. we have trumpl and trade. that's an issue. everybody who's going to want of course to use that issue in somewhat of a counterbalance to what's going on with the trump economic-based rally based on things like revisionist thinking to regulations and health care and of course taxation versus yellen and rates. listen, the former, there's no out the in my mind it can be an issue, but i really do think what we learned last january was that janet yellen and company is going to be subject to the same laws of financial physics that we always have. the other story is it's not only about rates moving up but also the notion they've been trying to deal with outflows already for a variety of other issues. when we raise rates that will make it more difficult. they had a failed bid auction for exactly that reason because the investors of rates are going

to go up as the price of bills fall, they didn't show up. another big story for all of you out there, considering the rate rise, is that daylight for savers time? i'll tell you what. we all know that what you pay for loans is immediately responsive to a rate increase by the federal reserve, which has it biggest impact on the short end. but there is actually a very positive indirect effect here everybody is going to tell you is negative for multinationals, and maybe it is, but your purchasing pow we are that dollar bill is going to go farther so maybe your actual savings right might be slow to tick up, but your purchasing power is already going to start to tick up. jon fortt, back to you. >> sounds like good news to me. thank you, rick santelli. coming up, in the past, some doctors made house calls. today, some make face time calls. how one company is revolution e revolutionizing telemedicine.

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>> good morning. >> using your smartphone, similar to what people are doing c with skype or facetime or other types of calls, you can consult with a doctor. what are the limits to what you can do here? i mean, of course, you can't get stitches. if you got a broken arm, you probably got to go somewhere. how far can you go with this technology? >> yeah. d doctor on demand is the most convenient and affordable way to see a great doctor whenever you need one. we designed our service to treat 18 of the top 20 reasons why people go in to see a doctor, so we're able to tackle all the things that crop up between your kids and you throughout the year from colds, flus, infections, rashes, and even, you know, a wide array of mental illnesses that one in five americans face at some point in their life. >> what are the other two that you're not tackling of, you know, out of the 20? >> well, obviously we haven't learned how to set bones and do

su sutures just yet. people find value in using us as a triage mechanism. we have customers who may twist an ankle or sprain a knee. they may not -- they may need to actually go in to see an orthopedic, but they want a professional doctor's opinion on the spot, and so we can help them take all the guesswork out of the, you know, should i go to the emergency room, should i wait and just go see a doctor? we can be very helpful to those parkts patients as well. >> the way i read it, it was to really expand your enterprise business. you feel like your product has pretty much set and your job is to come in and sell the bigger businesses. what's the strategy there? why is that important at this stage for you?

>>. >> it's convenient and affordable health care will never go out of style no matter who is president, so we're looking forward to continuing our journey to provide really compassionate care with innovati innovation. >> we have got wearables now, including the apple watch. there are devices that you can get in ekg through your smartphone. are those part of your product road map? is that a completely separate category? there are ways for doctors through smartphones to get even more information than they might

through the camera alone. >> we're in the early innings of an explosion of innovation on the hardware side. we do have some partnerships in place that allow our doctors to read, you know, stethoscope readings and other types of bodily vital signs remotely. the problem is these devices don't exist in the homes of most americans. the industry needs to come up with new models to support consumers having these devices at their use -- their finger tips. we'll get there. for sure. it's an exciting time. there will be a time in the not too distant future where consumers can get all the same technical readings that they can get in a doctor's office from the convenience of their home. >> and when you figure out how to set bones and do sutures remotely, we'll do it from home. thanks so much. doctors on demand. >> that will require more band width than you have.

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>> uber is out with a plan to -- our deirdre is out of one market with more on that. hey, deirdre. >> hey, carl. that's right. uber's next big bet is business travel. the company tells us exclusively that this segment is expected to bring in $1.5 billion next year. that's as much as the company was projected to have brought in in all of last year according to leaked documents. sales force, goldman sachs, and uber's head of enterprise is expected to double by the middle of next year. >> business travel is about a $250 billion market around the world from taxi to cars to the gas in rental cars all around that. so it's a very good bet to go after where.

>> if you thought this was perhaps a step closer to an ipo, bogart says profitability is not a focus. for now it's all about growth. uber lost a staggering $1.25 billion in the first half of this year. back to you, guys. >> deirdre, thank you very much. that's something that's been pound hounding them. >> yes, indeed. making peace and essentially backing away from the china market. you're probably going to get them a long way towards slowing down that cash burn. they were burning like a billion a year just in china. >> like army of soldiers. fall back. fall back. right? give a big piece of that territory to get some ground somewhere else. meanwhile, we are seeing the s&p cross back into positive territory. continue to watch this. headlines from reuters regarding the south china sea. we saw some action in the ten year and in gold, but traders overall are saying pretty much it's happening in an otherwise vacuum of news on a day where

there's not a whole lot else going on. >> the biggest mover in tech that i see is go pro. up 6%. that stock is volatile. who knows? >> busy week next week. fair amount of earnings as cramer said. the story of next week will be the gap between the earnings now and the promise of earnings with all the policy changes down the road. pay attention to that. let's get over to wapner and "the half." >> all right, guys. thanks. welcome to "the halftime report." i'm scott wapner. our trade this hour, 20,000 watts. trying to help that when rotation is in and out of certain sectors and continues at a frenzied pace. what does all of that mean for the trump rally, and how far it may be able to go? with us for the hour today is jim leventhal, scott brown, john najarian. with us today from toronto is kevin o'leary. he is the o shares etf chairman. let's talk about this, jo. you've got money sloshing around. you've got the paper today wall