trade. >> banks are doing well on the back of what is the first group of bank earnings. jpm and goldman sachs leading the dow. >> we are still watching. . financial is still leaning. >> out to you, carl. have a good, long weekend. >> we'll see you next week. it is 8:00 a.m. campus number two, 11:00 a.m. on wall street and "squawk alley" is live. ♪

good morning, welcome to "squawk alley." kara is joining us from our nation's capital more activity in trump tower. marilyn houston is meeting with the president-elect. we have been following this one. phil is joining us tr chicago. >> good morning, what this meeting is is the second one between the ceo of martin and donald trump in the last three weeks. let's see if this one goes better. that was down and she walked in there. a short time later we saw the ceo of boeing walk in. he said i'm not happy about the cost of air force one. or the f-35, what is lockheed martin. they said we're going to work the administration to bring down the cost. she walked out and didn't say a

word. the trump tweets continued to blast locke lockheed martin. . there's been a couple tweets and he's talked about it at press conference this week. so they meet at noon. let's see if the meeting goes better in terms of her making it clear to the trump administration that she understands their concerns, and will work with the administration. i think that's ultimately what ceos are finding they meet with the president he wants to hear them say we're going to work with you. back to you. >> thank you for that. we'll see what happens at noon. phil mentioned one week until the inauguration. all week long long power players have been meeting with the president-elect at trump tower. yesterday it was alphabet. stevenson saying his discussions did not include his company's planned merger with time warner. in this parade, what do you think both sides are trying to

accomplish? >> it's about economics really pretty much. for donald trump, it's about perception that he has control over these and force them into creating jobs and do what he wants. like i said from the beginning, a couple weeks ago read a story here's seven reasons tech likes trump. the top was the repateuated income they want to get back. regulatory issues they want resolved. there's a lot of stuff that tech wants that you wouldn't think they would side with trump on, but they do. it's a less stringent environment for a kind of a lot of the stuff they want to do. and again, it's about economics. so they will show up and do exactly what you're seeing. go into the tower, walk upstairs, they have a meaningful meeting. then they walk down. it's the same thing. it's a circus, but it is what it is. >> steven son and trump may not have discussed the merger

directly, but to say they discuss u.s. investment and job creation, you would have to think that was an indirect conversation about not laying people off, making sure they are committed to the united states. perhaps i don't know if you think it's farfetched to discuss cnn, which is part of time warner. >> he can say whatever he wants. i don't think they can prevent him from doing this. it will be an interesting thing to see if they cooperate and still continue to get the kind of behavior. if e he said he didn't talk about it, he didn't talk about it. this is top of mind is buying this asset that has property that the president-elect can't stand or tax publicly. so we'll see. that merger is an important one for at&t. we'll see if something happens because of cnn's behavior. >> these press releases coming

out. amazon saying we're going to hire 100,000 workers. is there a way to verify what would have been done if it had been someone other than trump? and at what point do those thing its become equity negative and have to pay attention to margins because these plans are incremental hire figure they are? >> some of the stuff was planned. all of a sudden amazon does press releases. this is all pr they want to plab on doing this hire. take advantage of it and get a bump from it. i think the question is are they going to go out of their economic interests and is wall street going to let them too this to please someone that might tweet at them. when they are making plans they are going to think about creating some jobs in the u.s. the question is will they will important jobs that will help our economy or will had they be

sort of village jobs, small amounts of them that really don't matter. that's the big question. will they build manufacturing facilities or be be a manufacturing facility from apple. then we'll get into the realness of this. >> you mentioned the ceos and there's peter teal. the interview just a a couple quotes here. somehow i think silicon valley got more spun up than manhattan. there were hedge fund people i spoke to. all of a sudden they changed their minds. stock market went up and they were like i don't understand why i was against him. he made comments about the tech summit at trump tower. lack of innovation. what was your a take overall? >> he's a whacky dude. some of it was fascinating. he really is.

as you can see, he's incredibly intelligent. he's enjoying the spotlight. he says things like a twitter war isn't a real war. >> or silicon valley isn't having enough sex. some people were up in arms about that. >> i'm glad he's having enough sex. i'm never against sex, by the way. i think that he likes his moment in the sun. now he's able to pontificate the way he likes to. . if you read his books, he has a lot to say. i do like his books. some of its whacky, some of its interesting and other stuff apple doesn't innovate. he's a pundit now. >> a couple things i thought were interesting. he did this with the "new york times" and not say breitbart. i wonder if it that shows something about who he's trying to communicate with. the idea of the era of apple

being over. when did the era of apple start? is he talking about the iphone? is he assuming that nothing is going to come after it? it speaks to the mind set around apple being the iphone and nothing else. >> the iphone is very important. let's be clear. it's easy to say something. it's more complicated to say something of complexity. what he's getting to is can apple continue to innovate and move beyond the iphone has been the juggernaut product. the products have been the watch or the ear bud. they are not blockbuster products. so the question is can apple continue to innovate in the space. their blockbuster product is hard to innovate on. nobody expected the iphone. who knows where that's going. as to the other parts of stuff he said, why talk to "the new york times," of course, they talk to the "new york times." this is all a thee it yat ri call play that is happening here. . they attack and give interviews

wp they attack the press and cozy with the press. this is all a circus and theater. people should see that for what it is. it's politics absolutely unfeddered the way politics is without the fakery. so they are going to talk to "the new york times" throughout this administration. and so peter teal wants to communicate with the readers of "the new york times" so he talks to them. >> i joust wonder before we let you go. how some of these tech ceos are going to navigate being close to trump because of their business interest, as you just point out. while trying not to express public support because they don't agree with social policies or they are at odds. sgrt sies soft cushion of billions helps. i can tell you the employees are

not happy about this cozying u. they see their leader walzing up to trump tower and kissing up to the president-elect. that's what a businessman would do, but people think of silicon value e lee as slightly different than wall street or a hedge fund guy or something like that. so the top echelons of people at google were not happy about that. i can tell you the engineers and everyone else. it's going to be an interesting thing to try to finesse how employees feel and what you need to do to get by in the economic can environment with this president-elect. that should be troubling. these are outspoken people. we'll see. >> kara, good weekend to you. have fun in d.c. talk to you soon. kara swisher. let's get a check on the

markets. the dow is more than 100 points below that o 20,000 mark. we saw retail sales come mostly in line. it really is bank earnings that are driving the market this is morning. all major averages in the green. the nasdaq hitting another record high up 28 points at 5,575. individual movers, deutsche bank upgrading netflix raising the price target to $110. raymond james upgrade iing facek to a strong buy from outperformed. facebook is seeing continued strength in ad spending and improved results for advertisers. price target e remains $160 on that stock. it's about $30 from where it is now. when we come back, wls misses. we'll break down the banks, after a break.

plus encertainty in dozens of states when it comes to falling revenues. we'll go live to the state with the biggest budget of all. and forget paying off why warren buffett's bet is about to break even. a busy hour still ahead on "squawk alley." ." pla

a busy morning for bank

earnings. take a look at where jpmorgan chase and the other company that it reported was wells fargo. jpmorgan and bank of america coming in line. wells missed despite that all three stocks are in the green. joining us to break them down, chris wheeler of atlantic equities. chris, looking at the way the stocks have performed, it's almost as if the street is willing to write off the fact there was a one-time tax benefit at jpmorgan that we're seeing reserves. what do you think? >> i think we knew these weren't going to be spectacular results. they were solid results after some difficult quarters. what they have given us is a platform. a platform for the changes that people think are going to be positive. and lower corporate tax rates and all that's really positive. >> when you think about the way that interest rate hike that we saw in december will hit the

bottom line, bank of america said it will take a little longer to flow through. what do you think the net benefit will be to the banks next year and how soon will they get another one to tack on? >> i think i always say it's better and people are buying stocks in anticipation of the improvement. i don't think anybody expects the improvement to come through in 2017. it will take time. we're expecting during the course of the year, which will be very positive. maybe a third one at the end of the year. clearly we're starting quite questionable. you'll have some and depending on the economy and was quite upbeat, you may see stronger loan depend. that would add. >> obviously, mortgages did take a little bit of a hit because of what we saw rates do in the quarter.

slower mortgage applications. interestingly, there was a lot of loan demand. you couple that with big spikes in trading volume for a lot of these companies because of brexit and the election. the follow on from the rate hike. do you think they can replicate that? >> we know we have had had a good start to the year. we had two of the best days ever last week. we have also had equity indexes moving up. capital markets looking quite positive. the cost cutting story of wells fargo is still robust. if we take that and the interest rate, i think we could have a pretty good first quarter. let's wait and see. it obviously is going to be a matter how the administration can start push through on what they have said they are going to do. >> investors are used to

starting a new year, expecting a bunch of rate hikes and by year end considering themselves lucky to get one. you have guys talking about weak and uncertain environments. . you have guys like bill gross reminding us of weak productivity. where is the danger of the pace of rate hikes still disappointing us? >> again, we have to look at the incoming administration. they have made some pretty major promises. it looks like some of the appointments will follow through with that goal of getting the economy moving. . it may not happen, but the feeling i get is people do expect some action, which will start to see markets move and force the fed to see inflation pick up. but we have been here before. this just feels like a much firmer base on which to lay it. >> wells fargo in particular had

the weakest earnings. but it is up the most. it's up about 2.5%. i'm wondering if you think that's because of the commentary from executives now or it if you think the stock is truly bottomed and the worst of the fraud from the fall is behind the company? >> wells fargo is the weakest of the banks. i published a note looking at they were off more than the other banks. there's a bit of catch up there. they revealed in those numbers they have plenty of problems. they have a cost/income ratio well outside their targeted range. the cost of legal and they are not out of the woods yet. it will stabilize the business. >> when we come become, one week

until inauguration and the dow is still trying to hit that 20,000 mark. our next guest says the inauguration trade. might be a nonevent. plus snap chat simplified. change a little bit as it prepares to go public. we're back after this.

governors and legislatures bracing themselves for the start of the trump administration. it comes as they try to figure out their own budgets for the new year. the biggest budget of them all is california. >> these are uncertain times in every state capital. they it already were because revenues nationwide are levelsing off or starting to fall. here in california this week, governor brown unveiled a hold

the line budget that this projects a potential $2 billion shortfall and that's before any potential changes to the affordable care act, which could blow a hole not only in the budget but also up end the lives of people like this 29-year-old who has a rare inflammatory disease and before medicaid expansion, she had to rely on charity to pay for her treatment. >> i'm terrified. these infusions and any insurance keeps me alive. and if i lose my coverage, i feel that i'm threatened to get all of my coverage through an emergency room and that's not how to manage a chronic disease. >> it makes it difficult to manage a state budget. >> for all 50 states who

administer programs, states are concerned about other changes that might take place outside of the medicaid expansion. that would put undo burden on state budgets. >> health care is just one of the unknowns here. also what will any changes in federal tax policy do to state revenues. on the flip side, states may be kind of salivating at the idea of a trillion-dollar federal infrastructure package if that happens. for now, about all they can do is plan based on current policy knowing they are going to have to make adjustments potentially very soon. >> at least they have the rain. good stuff. scott cohen out west in california. we're counting down to the close in the uk. finishing relatively flat for the week. but with green arrows. >> urpen stocks on track to end on a positive note. just marginal gains.

it's really captivating the attention. in record high territory on track to close out a record high for a 12 session and extending the streak to 14. the catalyst is the weaker pound as we have been seeing over the past couple months. here's a look at how it has performed since the june 23rd brexit vote. . high liting the relationship between stocks and the currency. down 17% since the brexit. this all ahead of what will be a speech from the prime minister on tuesday. she will lay out plans for the exit. this as she tries to fend off the pressure she's receiving from the uk supreme court. the biggest gainers, european stocks. deutsche bank and ubs among others seeing big gains here on

friday. on the flip side, let's talk auto. shares falling. french prosecutors have opened a probe into whether the auto maker cheated on emission tests. analysts are seeing if there are any parallels to draw to the volkswagen scandal. this comes a day after fiat tumbled 16% on news that the u.s. epa hit that company with a similar accusation. the ceo insists the software is compliant. we are seeing fiat shares come back by about 4% recooping some of yesterday's losses. let's also finish a look with how european stocks are fairing against the s&p 500. we're about two weeks in. you can see stocks in europe up about 1%. slightly underprmpling. >> thank you so much.

coming up, the nasdaq hitting another record high. what's the trade heading into next week's inauguration. plus be sure to tune in next week for the exclusive interview with jack lew. that's tuesday at 10:00 a.m. eastern right here on cnbc. we'wn r thes a s we'wn fce

good morning, everybody.

here's your cnbc news update. secretary of state john kerry in vietnam during his last trip as the top diplomat. he held separate meetings with the prime minister and acting foreign minister to discuss bilateral relations between the two countries. kerry fought in vietnam nearly 50 years ago. japanese prime minister abe had breakfast at the home of the philippine president as the leaders stress the importance of alliances with the united states. he plans continued cooperation with the u.s., which is a change from his recent posturing. astronauts took another space walk to plug in new and better batteries. it was the same type of job conducted last friday some 250 miles above the earth. and six more suspects facing a judge in france in the investigation of the armed robbery of kim kardashian. they have placed people under

investigation and in provisional detention. 17 people in all have been arrested. you're up to date. that's the news update this hour. back down to you, karl. we'll. >> we'll see you next week. a week to go until the inauguration. earnings season kicks off today. mixed bag. a number of tech upgrades pushing the nasdaq to a fresh record high. joining us is washington portfolio manager. but what happens if earnings season is strong enough to offset that? >> that is the key thing. that's been a consensus trade really since a week after the election. i don't know if it's going to set up. what i like to do is pretend hillary was elected. what would earnings look like? most of the data we have had had has been pretty good. not just domestically but globally.

trump has yet to influence much of that data. but i think that's one of the reasons why you may see if the trump factors that got them so excited. >> the dynamic change after the inauguration? we have seen kind of headline risk go away. it doesn't matter what comes out about china or anything else. the market hasn't reacted. does that shift? >> i think it's going to be -- it does to a certain extent because the improvement in the market has mostly been driven by an improving and expected earnings. it began before the election. so as we go through the earnings season, which is going to be relatively decent i think, you're going to now get the question well, what next and

what drives the market from here. you're starting with a multiple that's maybe 20% higher than it has been historically so stocks aren't cheap. and the markets now becoming more reliant on show me. so there's been a lot of promise up until now. now the economy and the market has a harder job of delivering on that. so that's it something that is different as we move into 2017. the good news is that the data seems to be moving in the right direction on the economy. >> michael, where earnings are concerned, there's a sense that the commentary is as important if not more important than the numbers we're seeing because it's forward looking. the banks this morning are talking about momentum in the economy and the propensity to create jobs and new growth. usually tech rounds out the end of earnings season and perhaps it's that sector that is the least enthused about the incoming administration. is there risk? >> the tech sector is the one that comes with the least political risk.

if trump throws up barriers, that's a different discussion. i'm not really looking at that scenario. so tech is one of the sectors if they can post decent earnings to kevin's point, i'm on that. having said that it, the trump factors after the season finishes are going to be really subject to this show me phase as to whether that's going to be. the earnings season i agree is going to be strong. it's not going to be amazing. what we're really looking for is two to three year period where we can see above consensus earnings projegt ri. whether we get the downside flag ration. >> someone doesn't make the analogy to reagan coming in. but there was a lag between his inauguration and the market's response to policy that had to be written in the interim. is that a fair corollary?

>> it's weak. here's the reason why. if you look at when reagan came in, the headline on the front cover of "business week" magazine was all about the death in stocks. investors were fleeing the market in droves. and obviously, starting round about 1980 when the market when reagan came in and the market was trading seven times earnings, we began a tremendous rally for the next 20 years. so you're starting at a different point today. you're at 18 times earnings. you're not at depressed margins, you're at elevated margins. >> rates are a different story. >> rate assaying something different. if it you look at where the fed is, the economy is very weak. you have negative real interest rates now going on for many years. so there has to be a squaring up. the good news is that the economy is growing.

top line is growing. when you look at margins and multiples and where short-term interest rates are, there's a lot of shoring up that has to be there. i can't make a one if for one comparison between now and when reagan came in. >> real quick, when reagan started, it was the beginning of the bull market. there's a lot of discussion now so it's night and day comparing economics to 2017. >> he wanted to open the border. there was a lot of differences. >> it's going to be fascinating at least for the first 100 days. good to see you. staying on the markets for a moment. warren buffett has been facing tough questions over losses in ibm since he bought it serve years ago. are those fortunes changing? here's the story. >> buffett is very close to finally turning a profit on big

blue. the level to watch is 170.43. the average price he paid per share. we are just a few points away. once they hit that mark, berkshire starts to make money on its investment. one of the most controversial. he started buying back in 2011, but shares sunk over the next few years and announced losses in the billions at one point. buffett, though, kept the faith. >> i think ibm will be worth more money, burr i could be wrong. it if i'm wrong, we'll accept that. >> back in 2011 he said he liked big blue because they lay out clear road maps and take care of investors through stock buybacks. despite the recent stock revival, not all analysts say they have delivered. they point to declining revenue and reduced rn it d spending. . also that buffett may be close to breaking even on his investment, but if you've been holding a stock for seven years

since the dow crossed 10,000, ibm has been one of the biggest tech underperformers returning less than half the s&p 500. buffett, as you well know s in it for the long game and and he said he's sticking with big blue. >> i would point out a little bird just whispered to e me when you count the dividends in it warren buffett's position, he might be up 15% all things considered. he is, of course, quite a good investors. thank you. when we come back, snap chat changing its lock as it prepares to hit the public markets later this year. dow is up 26. 82 points from 20,000. interest rates did a neck-snapping turn. we're very close to unchanged in certain maturities. we have all known couples that before they take their vows to get together, they are engaged. we're going to talk about the markets engagement in commitment

to the realities of the future and current pricing. all of the break.

sgnchts the first wave of earnings system. and the note investors from all over the world are paying attention to today. trump hol honeymoon is over. the number one analyst on peter teal's comment that the age of apple is over. and a call on the commodities

you absolutely cannot miss. . we'll see you in about 15 minutes or so. >> we'll be there. thank you. snapchat rolling out a new look as it prepares to go public later on this year. perhaps later quarter. addressing one of its biggest criticisms that the the app is too confusing to use. it's too hard to find people and content that people want to follow. it will streamline within a search bar. new navigation and crowd sourcing also known as storiest. in the coming weeks, interesting that one of the cool factors among young people and teen is that you have to know someone's username to find them. this will open it up to other users, but will it drive away the early adopters. >> technically we're all on snapchat. are you an active user? >> i'm fairly active, but less active once instagram stories

came along. . i'm already within that ecosystem. it's easy to go ahead and post something to that. now with snap stories you can take what you download from instagram and download it to that. they are playing in each other's backyards. >> we have a flirtation. >> i couldn't do it. i turned 40 is and the text was too small. >> you'll do it when your kids get it. let's check in with rick. >> looking at a chart of tens, you see we look at a chart. still the low yield close after we made the high yield close, which was a whisker shy of 260 is 234 from last thursday. what that tells me is there's something going on in the markets that keeps fighting back. the markets and investors, which are v markets seem to be engaged

to the notion of a better growth commitment. it's like when couples get engaged. before they take their vows and make the commitment, they may go out of of course and buy furniture, buy a house and all this is before the contract is signed. meaning vows. why is this mean anything? i had a guest today and not only do they ask correspondents a varmt of issues of why, they deal with companies and ceos. for the last year and a half, she said that i.t. and technology has a real commitment to r&d that the industrial sector doesn't seem to have. we all know if we look back before rates started to move and the fed policy globally at low rates, there was this buy your stock back, repsycycling of mon and it was a lot of mna ask there's a nervousness that's going to stop.

. you can buy innovation or you can do it internally from an r&d standpoint. rebecca said some of these industrial companies were in that latter camp and it's ramping up. so what i'm getting at is there's a self-fulfillment issue. i understand that we don't have specifics, as i look at the market and see a resurgence and what has been dubbed the trump trade. but there's more at stake here. even though it's anecdotal, what we're seeing is a willingness of certain business executives to commit their capital in ways they felt unsure of in the past due to the landscape always shifting under their feet. i think this dynamic is quite important. i have also heard anecdotal information for a variety of others outside of perception that they perception of a tighter labor market is causing some employers to give more vacation time and added benefits and perks that didn't really

seem to coordinate with the election. e these are underpinnings that need to be taken in consideration. by the time we understand whether the markets rich or not it, you're going to have missed the invest mement train. sometimes you need to be early with some facts. back to you. >> thank you. have a good weekend. meanwhile, the consumer reports verdict is in. it's good news for apple and its newest line of macbook pros. details, coming up. we n ar

gadine.wich

another businey day at trum tower. lockheed c can eo just went in. word from the transition team that houston just went in. xhe richard. wow, okay. >> and consumer reports giving apple's 2016 macbook pro its approval this morning finally after previous battery concerns. this follows some negative headlines on the company including contrary and tech investor peter thiel's that it's over in apple. the stock has been a laggard among big cap tech but it is up from lows from before the election. weighing in are brian white, global head of technology, hardware and software. i believe you got a buy on the stock. and angelo zeno, tech analyst at cfra research with a strong buy.

i want to start with you. you say apple's underappreciated. i guess we start peter thiel underappreciating apple in that case. is the era of apple over or would you dwink that from saying the iphone's strongest growth is behind it? when did the era of apple begin? was it post-ipod? was apple not cool until the iphone came around? >> i would say this. i still think the biggest innovations are ahead for apple. and it's a very my optic view to look at a m p today the bulk of what they do. albeit their market share is very, very small at 10% to 15%. but when we look out on the horizon and we just at ces, you know, last week, i think self-driving car fits very well with what apple does. vrar, television market, and also personal robots. that was a big thing at ces last week. i think there's a lot of

opportunities for apple still. >> angelo, if the era of apple is over is it clear whose era is beginning or are we in an in between space? >> i would disagree with the fact that era of apple is over. if you look at the smartphone space and we look at kind of the growth potential there are, i mean, clearly, the double digit -- the age of double digit growth is over with. as we kind of look for apple here going forward, i think the opportunities are still there within -- particularly the smartphone space as it relates to 5g offerings, move to wireless charging here this year, foldable smartphones eventually. i think on the smartphone signed of things apple can innovate and take on market share outgrowing the space. as far as apple is concerned their emergence into the stuff that brian mentioned i think is kind of full fledged there. and we do see significant opportunities in many of those areas specifically the living room and the connected car market.

>> tactically though, i mean, you look at the channel it's been in for a while, i mean, repatriating some of that cash could get you somewhere, right, even without big product innovation. >> it would be huge. and you've got $218 billion, $238 billion overseas. you know, not only would it help with capital return to shareholders -- what i would like to see is a bigger dividend. something in a 3 1/2%, 4% range versus 2% today, nice steady value investor based. another thing is you can start to increase your acquisitions. >> that doesn't tell you that apple is any more of an innov e innovat innovator, a better financial engineer if they do that. >> apple is so secretive and yet we do hear about innovations in the media. we don't hear about everything but we do hear about some things. vr, ar, self-driving cars, a our own checks, interested in personal robots. we just don't see it on conference call, at the big events they hold a couple times

a year. behind the scenes i think they're innovating. >> angelo, are you comfortable with this content strategy that apple has at this point? the services numbers that they put out last week were impressive but the most in content lately is tentative. >> yeah, i mean, if we look at the services business, i mean, it's a business we think will grow on an annual basis of 15% to 20% a year. the move into content is going to play a huge role in to the potential growth going for ward. it's really tough to say exactly what apple is thinking as far as content is concerned. i mean, one second we think they're going to take a big move and the next second it seems like it's going to be baby steps. however, that being said, our view is apple should and we think will make much bigger strides within the streaming space. especially given that, you know, over the next several years we're going to see consumers migrate towards more usage of the video usage within the

mobile space. and we all know apple is king when it comes to the mobile space. >> brian and angela, thanks so you both. have a great long weekend. when we come back we'll go back to trump tower. we are waiting the outcome of trump's meeting with the ceo of lockheed martin. some pictures here from a few moments ago. meanwhile, dow is still in a tight range, 65 days without a 1% decline on the s&p. one of the longest -- 30th longest streak in history. ,crcrlaopen ew cha teei how eass swid n

alley." cease sars entertainment shares are searching on news the company has reached an agreement ending the last objections to reorganization plan. so this decision clears the way for the casino operator to exit chapt chapter 11 bankruptcy and that will be official once a judge sign answer order approving the plan. shares are more than 40% higher over the past 12 months. back to you, carl. >> thank you very much. we're watching trump tower this morning. lockheed martin ceo marilyn hughes son will be meeting with the president-elect. we saw her enter the elevator a

few moments ago after obviously the tweets between them. cramer made the point that the demonization of business is ending with the trump administration, that trump wouldn't necessarily -- would not necessarily tell wells they couldn't cross sell. others respond, what about all of these tweets to lockheed, ford, carrier, and so on? and then again, there's the response to that. those are tweets, not regulation. >> twice he tweeted about the f-35 program. twice the ceo of lockheed martin takes a meeting with the president-elect. rbc yesterday initiated lockheed with sector performance saying this is unwanted attention but that spending will expand. >> deemdemonization is the year of the beholder. the president-elect did it just a couple days ago, different reaction. >> vegas, everybody has examples. >> absolutely. if it's your team that loses a

couple of yards, it's a setback. if the the other team does it, they're losers. >> meanwhile, again, tight range. dow is up 19. going to watch whether people want to go long into a three-day weekend. by the way, the treasury secretary will join us next week with steve liesman, davos is going to be big. great big weekend. let's get to the judge and "the half." welcome to the "halftime report." i'm scott wapner. top trade this hour, best quarter ever for a bank. that is what cnbc's jim cramer called jpmorgan's latest results today. but is it enough to keep the financial rally going? with us for the hour today, josh brown, jim, ian winer here as well, cohead of equities at web bush. let's begin with the banks. what a quarter for jpmorgan. record annual profits that stock is often running this hour. all the banks for that matter are in