they are going to be a trillion before the next decade. >> olympics coming up. how far will you go? can i get my favorite curling player, can i get that jersey. >> we'll get you whatever you want not just for you because i like you. >> we make every product for everybody. >> if bezos calls and wants to buy you, we'll be a great public company, that's what's ahead for you. >> it's the truth. >> appreciate it this is a lot of fun, thank you. struggling to come up with my favorite curling player. >> name me one. >> make sure you join us tomorrow "squawk on the street" is next ♪ >> good morning, i'm carl quintanilla. cramer is off today. congress gets back to work senate may vote on tax cuts and

opec meeting, psych cyber monday today. the benchmark yield around 2.33. our road map begins with the holiday return of the consumer black friday sales topped $5 billion. cyber monday expected to set online records. >> retailers are in the spotlight. futures flat ahead of the first full trading day ahead of thanksgiving. >> and the koch brothers making a big bet on magazines, backing a meredith bid to buy time inc.. adob bee analysts expects consumers to spend $6.6 billion this cyber monday. that would be up more than 16% from a year ago and bigger number than the $5 billion adobe says was spent online on friday. we talked about colder weather, and lean er inconvenienventorie reports that in store traffic was down maybe a percent, maybe

a little more, but not dramatically. >> that's a good test of exactly how low expectations had been for basically physical scores. they don't look like they will broadly give back the pop they had on friday. so many things working in the background in favor of having a pretty decent holiday season we'll see if it plays out or the market is going to get bored with the story of a couple of weeks. >> we talked about how they generally underperformed this time of year and the question whether consumers will wait to do further shopping before right before the holiday gets here. >> did you go out this weekend >> no. the wife did a fair amount of shopping on this. >> us too. >> there were very significant sales on a lot of -- beyond amazon on many of the major retailers we noted 50% off, 40% off at places like the gap. >> if you've ever given your e-mail address to a retailer, how many did you get this

weekend? >> suddenly very popular. >> i think it was shopper track, one of them said the average discount market track 45%, last year was 48. so discounts just a shade more shallow. only three of eight major retailers had deeper discounts than last year. >> as we said on friday as well, these stocks are down to the lows in july or august, they base beingally were cut in half across the board, a lot of them or more. just slowly rebuilding that. i think again it's a test of kind of a new world. if amazon will get half of every incremental dollar of online sales is there enough to go around for everybody in the other half hard to say. >> good discussion just prior to the top of the show about amazon and whether or not they truly are an inquisitive company and whether food was a special case. >> i've said this many times but it bears repeating, the most significant deal was the whole foods deal not because of the size but message it sent

it has made everybody in this business broadly speaking retail take notice and rethink their business could amazon move in we've seen so many effects of that, whether it's somebody mentioning pharmaceuticals or what it might be i think one of the key statistics that people should pay attention to, 50% of all searches now where people are looking to buy something begin on amazon. begin on amazon. they go to platform immediately to simply search for something to buy. >> which kind of detracts from the old story of everybody kind of looking at this array of prices and comparison shopping and amazon maybe is or isn't the bestprice, you're kind of captive to the platform a lot of people. >> as far as bezos goes, we knew last week his net worth hit $100 billion. robert frank with a great stis stick, the increase in his wealth this year, 32 billion, would buy itself make him the 18th richest man in the world.

going to add to it this morning it looks like a little bit. >> the numbers sort of magnitude -- the leverage of individuals to what the market is basically doing in terms of re valvaluing these dominant companies never seen before. >> for more on cyber monday, we'll talk about it later today. talk to the head of ups and other people but courtney reagan islive at amazon fulfillment center in new jersey good morning, courtney. >> reporter: good morning, carl. holiday shopping weekend rush, that's not over yet today ecommerce is the star of the show 78 million americans are expected to shop today we know amazon is top of mind for many americans all the time. some 44% of all online sales go to amazon but today capty fi said amazon is the number one searched website followed by target and walmart and best buy on that order. black friday days ago, best buy was the number one searched website. when it comes to what amazon

might have done on black friday, dan ies thinks they captured half of all e commerce sales on black friday what does it take to make records today? for amazon, prime day 2017 was its biggest day yet but that was 30 hours still, it beats cyber monday and black friday 2016. cyber monday 2016, amazon just telling us days ago 64 million items were ordered on amazon's website. so that's the benchmark we're looking for for cyber monday now, if you look overall, what are folks searching for across the web? capty fi says the number one search is the iphone x followed by the xbox one and playstation and hp laptop. $38 billion has already been spent online so far in november, through november 24th according to adobe they don't think shoppers are done yet. they expect another record to be set today in the u.s., sales are

expected to hit $6.6 billion, that would be a 16.5 percentage increase year over year for online sales this is just one of amazon's 75 u.s. fulfillment centers, over a million square feet. there are 14 miles of conveyor belts behind me. about 5,000 full-time employees, thousands more part-time employees and thousands of robots today we'll have to wait and see how many packages go out today on what could be one of amazon's biggest days back to you guys at the stock exchange. >> courtney, we'll come back to you later this morning speaking of amazon, on wednesday, on squawk alley john forte will have an exclusive with andy jassy at 11:00 a.m. eastern time on wednesday. this just crossing the tape. barracuda, leading provider of cloud enabled security data protection being taken private all cash, $1.6 billion. >> all cash. they are very active in this

area they've done similar software related deals in the past. haven't seen that much activity from private equity. they play in this part now, not like they did ten years ago at the highest levels in terms of market cap for any number of reasons. but worth noting not a bad premium i guess, i don't know -- >> two years ago that stock was way higher. >> was it? >> two and a half years ago. it seems as if it was kind of hovering at this level for a while. so it was more than $40 stock. >> we do begin a new week of trading as the s&p and nasdaq each posted a record close, surpassing 2600 for the first time and nasdaq coming off the best week since the beginning of september. the 8th positive week in the past nine, keeping an eye on a record run for bitcoin as it marches toward 10,000. i mean, it's up 16% from friday.

is that possible >> well, it went from 9,000 to 9600 in a blink i guess. i don't know it it's related or unrelated to the fact that the stock market is doing what it's doing. it's hard to know exactly. >> if this is catching overflow capital. obviously it's this self-contained speculative story in itself. >> we always say the market cap, whatever that means for bit coin, the market cap now exceeds disney, which by the way will ring the bell today and ge >> i don't know how to know that, if you're bitcoin fan saying you're going to displace gold or world currencies, it's tiny still. >> i'm going to leave it to you to analyze this -- >> these parabolic moves they do typically end in a different move. >> usually what's funny is -- >> it's a currency

that's not -- it's less currency for transactions than it is owning a piece of virtual real estate in what could become the next internet or parallel internet not evaluating that claim but that's the story now that it's not just about buying stuff with digital currency. >> as far as markets we understand a little bit better, we went through the news events we're going to get this week, probably key among them is this potential vote in the senate six senators now being called on the bubble johnson, corker, murkowski and collins and flake. we'll see what degree changes are made to win the vote. >> it's hard to note how much headline risk there is in the very immediate term for the market if the market still says something is going to trend towards a deal, i don't know if it means no deal this week means that they panic out.

nothing is really restrained this market very much from marching higher. so you would think they want to see it done but i don't know if it's still a washington story about how the market operates in december. >> timeline gets tougher on getting a deal done certainly for christmas or year end, same thing. one would think. eamon javers says the president is not focusing on tax reform at the moment, given his tweet about fake news again -- >> as well as over the weekend. >> and holding a contest to see who the winner should be of the fake news trophy >> he will meet with the vp i think for lunch and members of senate finance to press the senate to pass that. by the way, goldman has an interesting note out that looks at the potential exodus of high income residents from cities like new york. 2 to 4% eventually over time and then a 1 to 3% effect on real

estate prices. >> it could be catastrophic, some of the municipal leaders believe. you think about new york where the tax base is 37,000, 38,000 people represent roughly half of the income tax paid, if that 4% comes from that 37,000, which it very well might given they are the highest income earners, you're going to have a significant impact people are trying to impress upon the president who has -- still has some real estate -- i wouldn't say holdings but interests here that perhaps that would end up in a bad place for somebody like that. >> sure. >> to try to get them to move on coming back on the repeal of the ability to deduct state and local. >> yep and $10,000 you know, limit on a deduction for property taxes doesn't mitigate very much. it's the state income tax -- >> in places like new york and new jersey and california, illinois, there's -- i mean a number of other states, some

even some red states, a couple of them. >> we'll find out and watch it closely today obviously. when we get back, the end of an era for a legendary magazine, time inc., david abney will join us as the holiday season gets under way. we put the month of november to bed over next few sessions, we're back in a moment i'm here to talk to you about how at&t gives you more. and so am i.

like how when you buy the amazing new iphone 8 you get another one on us. see we give you more phones and more spokespeople. are you guys doing a spokesperson thing right now? yes. awesome, can i be in it? well, it's kind of like a two-phone deal. so two spokespeople. got it. k. thanks. at&t it's time for more. it's time for more. buy the amazing iphone 8 at at&t and get a second one to gift, on us.

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>> there's a look at bob iger, chairman and ceo of disney there's mickey too a lot going on with disney i don't think mr. iger will speak with us on camera, not going to take the seat next to you this morning meanwhile in other parts of media involving print, meredith, the publisher of better homes and garden and family circle agreed to acquire time inc.. it is all cash, $1.8 billion when you take out debt meredith's offer was backed by the private equity arm of the koch brothers, charles and

david. $650 million convertible preferred that pays them at 8% coup coupon that's not bad a lot has been made of whether they will have any impact at all in terms of the coverage of these magazines. again, an 8% cash paying coupon is pretty good and financing goes to sort of the story here this is the third time meredith came calling for time. last spring they came and offering a deal that also included about 20% equity. this time they came with a fully financed offer the koches being a part of it, and banks being part of it as well that really changed their tune and they were much focused on getting it done and getting it done quickly when you speak to people involved, eight days from beginning to end in many ways. they had a deadline to get it done and got it done, announcing it last night. and now the focus for meredith is going to be on those cost savings they are talking about, which seems to have been what

attracted them many times to considering this deal in the past they are talking about 400 to $500 million in cost savings or cost synergies over the first two years of owning this that will be a lot time fortune, si, those titles are not making any money they may be losing money people is the one thing that makes a lot of money and that's going to be kept but dz not clear if everything else will be kept if you really focused on those cost synergy numbers, you may need to sell or wean or just get rid of some of these other names, we'll see what the plan is on the call this morning, guys, all they would really say is they are going to evaluate the whole portfolio and make decisions going forward but premature to talk about any decisions sort of broadly

speaking about asset sales at this point time has been trying to become a digital company. it has not proved to be easy the stock had been almost 10 bucks a share -- >> three or four weeks ago, pretty good return. >> it is. >> if you actually believe somebody can get something done and get the deal financed, but to your point about becoming digital, they are already reducing publication schedules of a lot of these magazines and wonder if the cost incertificsy imply the print goes away. quts sports illustrated is going to go -- >> circulation on better homes and gardens, 7 million >> those are still browsing vehicles but if you talk about people and si and time, you know, it's more expense than it is reward. >> and print continues to decline at the rate frankly that is even more rapid than i think

had been anticipated. >> sure. >> you can understand certainly why this board would have chosen to sell when the fully financed offer finally showed up for meredith and they have but a iconic new york company -- >> sure. >> going to iowa, right. >> going to iowa. >> we'll get art cashin's take on the markets and later and exclusive with ken griffin of citadel. you'll never guess who's ringing the opening bell by looking at the podium this morning. we're back in a minute

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director of floor operations with ubs i see the holiday season has officially started from your tie. >> yes, we go from now until christmas sometimes, all the way up to boxing day depending on how sturdy these things remain but the market is in -- not quite celebratory mood this morning. i think they were thinking ever more could be sol dags and a slight degree of caution congress is back so we'll see if they decide to -- somebody set up and shoot themselves in the front. things are a little quieter in europe i said on this program early last week, i thought merkel had pulled off a successful bluff and that looks like it may be working out here. little concern about resumption of weakness in china they had a pretty good sell-off while we were off on thanksgiving day global markets a little bit

mixed. bitcoin has gone parabolic that usually does not end well i said that to mike. >> i think we're in the fear of missing out phase now. i think initially there was some concern, i'm told and take this with a huge grain of salt, that the movement is even beginning to worry some people in the federal reserve, you know, can it be disruptive to currency markets. it's not quite that big yet but certainly its capitalization is moving around. i want to find out, might get a free drink there. >> if they start to trade futures on bitcoin, that magnetized the effective size of the market. >> yeah, i think it was a promise of credibility and that allowed people to step in.

the bulls have had a good run. you see consolidation may be in order at these levels. what might that mean >> more like a couple of days or weeks moving sideways, the dow looks most susceptible to that we're above 2600 in the s&p but that doesn't mean we're totally free of it so we'll wait and see. viewer should compare what's going on and for example the russell, to what's going on in the s&p. if the russell seems to be stronger then that tells you the market is betting on a tax bill passing with a low corporate rate. >> on that note we did get the president just tweeting the tax cut bill is coming along very well, great support. so you know, art, wanted to keep you upto date. >> thanks, art >> opening bell a few moments away

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the opening bell in just over a minu minute's time. a lot of news we're watching just chatting about disney who will ring the opening bell in a moment we had an interesting conversation about the history of the ipo, this month in 1957. >> i guess the company raised money in a preferred stock in 1940 because it was broke after snow white, even though it was a huge hit that gave the studio legitimacy 70 years later the ipo always starved of capital, needing to roll together the family businesses and kept the private business on the side right now you hear about the corporate governance issues but the market bought it, two years after disney land opened up. >> disneyland was '55. the company went public under the name disney productions and changed the name years later to reflect the ancillary businesses of the movie studio. >> dow industrial as of 1991,

considered a big deal because it was a nonindustrial company x. >> you're going to see bob iger on the podium and nyse president farley and the icon, mickey, who i believe turns 90 next year, which will be a big deal over at the nasdaq it is saint jude children's republican hospital and k-mart raising awareness for the thanks and giving campaign. iger not doing much press today but it does raise the point that some argue the m and a environment has gotten eerily quiet. >> i think we'll have a busy period when it comes o to merger and acquisition activity between now and end of the year. i can't guarantee it but i certainly know my list of things i'm following is larger than it typically is whether it's broadcom and

qualcomm, mattel, and cvs and aetna. fox and disney or fox and comcast, you have to wonder whether that's gotten a chill give what's going on over the acquisition at time warner no shortage of potential activity out there that we already know about i do think we may see some more. we'll see. but we could end the year on a strong note there, carl. >> we did get report that the bid for buffalo wild got up to bit over at roork capital. got the time thing under our belts today. >> it would be almost odd if you didn't see it pick up, just given the fact that -- just the fact that so many industries are at that seeming moment where companies have to decide, either i get big other give up and sell out. also, people aren't too sure how long the financing environment is going to be quite this generous after we had a little

ripple in the high yield market a couple of weeks ago. >> when there was no talk of tax reform towards the end of the summer and it felt as though that was not even something that was going to get momentum, a lot of companies seemed to have made the decision to move ahead with their strategic initiatives having waited to see what would transpire. then suddenly tax reform came back in the fall and i have wondered whether that would give some companies pause yet again as they try to understand what the landscape may look like if we do get a tax bill that gets through and gets signed. but judging from what i'm hearing, a lot of conversations going on i had anticipated another freeze and some people were saying that but it's unclear whether that has really taken place so as i say so often, we shall see i guess. >> retail is going to lead the charge this morning. we talked about it at the top of the hour but combine the stellar growth in online sales and maybe lower than expected declines in

in store traffic the discounting environment, the inventory environment. you're going to see kohl's gap, foot locker, lowe's near the top. >> gap is interesting here, up almost 3%, new 52-week high. most of the retailers aren't one of the interesting themes that's been running through the holiday season that people actually buying clothes again. clothes have been struggling for years. and gap as a company has been operating playing defense for years. they're hayday was the late 90s, they've been shepherding free cash flow for a very long time, been dealing with negative comps for years. it seems as if they are almost built for this type of environment. maybe investors think they have something figured out. >> do wonder about the omny channel, meaning their efforts digitally. we did a lot of shopping over the weekend for my kids and things like that now old enough to do it on their own and tell you you bought them their gifts. >> give you the trade report

after. >> yeah, after adidas having sales -- >> tremendous. >> interesting brings up the apple today, where ubs lowers their unit sales forecast for the iphone, taking it from up 12 to up 10 because of what they are calling more muted demand than expected. it's going job offset by higher asps the argument for most of the season people would direct more dollars to technology. >> it's been a real kind of argument about how this upgrade cycle will go for apple. the stock hasn't suffered tremendously for it. it's still hovering just below the highs, but i don't think people know how to game this out with the sort of multistage new phone rollout and kind of carrying you past christmas and plus the high price point. it is kind of interesting, you see on both sides people saying this is a spring loaded situation where you're going to get a rush and others not really so sure. >> amazon, guys, above 1200.

closed friday at 1186. gain of almost 2%. >> $583 billion market value and now the best performer amongst that group i shouldn't say that alibaba shares are up 116% but facebook, alphabet, all below that, apple even not quite as strong a performer with the stock up 61.5% this year. which is why mr. bezos' net worth has gone up so much. doesn't share much on his plans on the charitable giving front, does he? >> it seems as if he's still in build mode i don't think he's in that mindset of kind of harvesting and deciding what comes after him unless it's traveling to other planets. >> i think he's got a good 20 or 30 years before we get to that. >> maybe he considers the "washington post" a charitable donation >> a service at least. >> $250 million, that cost him

that was half a day maybe's pay or -- not pay but -- >> an hour or two. >> a year ago shares were at 770 or so. i wonder if -- i can't think back offhand but some of the aggressive targets we got back then, i mean 1200 might have seemed a little excessive. >> i think there was a 1300 target that did seem like a tremendous stretch, maybe a year ago, eight months or something like that. it's been amazing. the other thing is when you compare it to facebook and alphabet and things like that, it's times like this when we see courtney next to the conveyor belt, how it's not really that virtual a business so the economics are not facebook the money just pours in and they don't have to do anything for it. they are moving a lot of stuff around the world and still gets capitalized and really the exception that proves the rule within fang. >> guys, in my little world of media telecom, the name altice

has generated attention because of that. we talked about bitcoin, parabolic, what's the opposite i guess just crashing. >> i don't know. >> it's a down opposed to an up one. you can see what's happened, the stock down again that's the european of course, when you're levered it work both way. patrick drahi, the business model to take costs out and hire younger people and merge a lot of services but a 3% miss, that can translate into a much alarger miss on free cash flow that spooked investors, it's been down more or less ever since. however, the performance of their u.s. assets sun link and cable vision here in the united states has not been that bad you can see altice usa had been suffering the same as it's parent but it's up you get the downward spiral,

some questions about mr. drahi's continued significant 51% ownership. and we're going to keep watching it there had always been questions about the overall business model and ability to take cost out, so much more than their competitors. let's get to bob pisani back on the floor. >> hello saying to hello to bob iger, all smiles on his face want to talk about the markets, we have even on the advance decline line, mixed open importantly, retail tends to sell off after black friday. that's not happening today we've got gap at a new high and michael kors in a new high and home depot, industrials, small move on the upside, consumer staples also on the upside energy down, oil can not get over $60, that would have been a big, big psychological move but it didn't happen fell back a little you see i'll down a little bit two important things have happened in the last week.

the market sent. changed a little bit and tone has changed and the most important thing the advanced decline line is again essentially at the historic high here the concerns about the market narrowing, there was a major issue five or six or seven days ago. no longer valid. the russell 2000 has essentially hit an historic high, we worried about the underperformance, that's completely turned around now. while it's not moving as fast it has now essentially moved in the same direction as the s&p 500. the third most important thing is the market leading throughout the year, technology and particularly semiconductor stocks are both sectors also at historic highs, there's other things going on internally if you look at the broader parts of the market high yield, which had a very tough time two weeks ago turned around it is not back but it's almost on a uturn oil 16-month high, even though it failed getting to $60 the dollar has trending weaker

recently but not the case throughout the whole year and biotech the other major market leader has been stabilizing as well it is not rocketing back up but much more stable in the last seven or eight trading sessions. all of this is really market friendly overall you mentioned the fang stocks, guys putting up some of the big fang names this morning. i want to point out, nobody is using them as a source of cash anymore to go out and buy the market facebook and amazon are essentially -- let's not quibble about fractions of points here, apple is at a fraction and netflix % from a historic high nobody is selling off the fang names overall. elsewhere, europe has been holding up but it's been lagging. remember the big story, european growth generally europe has been up but in the last month it seems to be less enthusiasm. there's the stock 600, s&p 500 of europe, notably under performing for the last month. europe has been doing well but the most speculative part of europe which is the mainland

stocks, shin zen, more speculative, look at that, been trading down for last month, down 5%. there's a real push now, guys to regulate some of these wealth imagi management products in china they are held off balance, retail investors say the bank is guaranteeing me 4 prosecuti%, i that that's causing a little bit of a risk off atmosphere. long term a very, very good idea for them to regulate the market in this particular instance a little bit more. right now the dow has turned positive, it's up 11 points, back to you. >> let's get to the bond pits as well and check in with rick sante santelli. >> good morning, carl. europe has been a place of lots of investment love for 2017 but i would take a step back and realize for the entire month, entire month of november, the highest yield for the shots, the

european 2-year was minus 69.5 our two-year chart, hovering at 1.75 we'll show the chart since september, it's been a big run since september and we're close to the highest level since october '08, the actual level is 1.77 last week look at year to date of 10s, i love with things work out like that high and low yields for the year, 2.0 4 and 2.63 the average is 2.33 where we've been hovering. look at the chart of the crb index. sometimes we sweep the commodities and energy the rug, we have a weak dollar. getting very close to making a fresh high going back to around mid february of this year. let's look at the dollar indlex. two-day, one week, dollar index just in a slide. it's not acting well, it's down close to 10% for the year. look at a september 1st, 2017 of the dollar index because the

last time it closed here was 22nd of september. while the euro getting ever closer to 120. carl, back to you. >> rick santelli in hicago when we come back, the ceo of ups david abney is with us we'll get his take on the y opngean. sso dow is up 16 let's begin.

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with cyber monday in full swing, let's talk to the man whose company will deliver 750 million packages between now and christmas. ups chairman and ceo david abney joins us live from atlanta and morgan brennan at post nine. welcome. good to see you both david, a lot of data has piled up over the past few days to suggest the season is starting out stronger than expected can you confirm? >> you know, i don't know that i can confirm that we are expecting a 5% increase between thanksgiving and christmas this year over last year we're way too early to estimate whether it will be heavier or lighter than that. i will say we've gotten off to a

good start we felt comfortable with where we are. >> david, great to see you if i were as a consumer to make a perfect online rightpackage s through normal ground service it's going to cost more. the peak holiday surcharges, one of the biggest things for investors to watch this holiday season, how should we think about those? is this a way for ups to make more money or is this really about changing consumer behavior and shipping behavior so you can have a smoother peak season and tamp down the higher than expected costs we've seen in previous years >> you know, morgan, you really nailed it in both directions first, we do want to make sure that we're paid for the value that we provide our business really ramps up during peak and brings extra cause we want to make sure we compensated for that cost. another advantage to this peak season surcharge is we are able

to have very productive discussions with other large customers of how we can smooth out volume and if it's not urgent, to avoid those key surge weeks and to utilize weekends and weeks before and after christmas. so dual benefit and we feel comfortable it's going to come through for us. >> it seems almost kind of gutsy to me in the sense that this is unprecedented and it's the first time you've done this peak season surcharges but also you're the only company that really has them this prevalent throughout the peak holiday season aren't you concerned about losing market share to fedexor postal as much as or other smaller carriers with the higher costs? >> i think that we're not concerned about that because it's the value that we provide what's most important to our customers this time of year is making sure that they get a delivery that they can depend on

on time and we do have other competitors that have matched different portions of those surcharge, so they are out there too. but capacity is so tight this part of the year we want to make sure we can give our customers the service they want this peak surcharge is making sure we're compensated for that. >> david, obviously the demand side, things look pretty tight i wonder how closely you need to watch fuel cost. you do add surcharges for air and ground and rest of it. but at this level, does it start to pinch activity along the chain at all >> we do monitor closely and we have a fuel surcharge that kicks in when fuel changes drastically one direction or the other our focus this week is to utilize our technology, be very productive and then provide that service that our customers want.

>> and taking a look at amazon, it seems every time there's a headline about that particular etailer, increasing its logistics and own transportation network, shares of ups seem to sell seem to sell off how big a portion of u.p.s.'s revenue is amazon, and given that number, are investors' fears overblown? >> morgan, we don't address particular sizes of individual customers. i can tell you that no customer at u.p.s. is greater than 10% of our revenue. so sometimes these stories can kind of take the weight of their own, and carry more than what we really think they should the important thing is we have a mutually beneficial relationship with amazon. if you order a lot of packages from amazon, you're going to see your u.p.s. pretty often, i can

guarantee you that >> speaking to that, certainly the breadth of your network is much bigger than just e-commerce health care, for example, has been a bright spot and an area of growth for your company with these headlines that came out at cnbc last week about a new manufacturing pharmacy license, what can you tell us about that and how does that expand your service in the health care sector >> thanks for bringing that up that was not a new service or a new strategy we do for several pharmaceutical companies, we would take large shipments and we would break them down into smaller shipments. in order to dothat, you have to have the necessary license we have been doing that business we're going to continue to do it but it's not a change of direction or a change in strategy >> david, as we pay attention to new categories in online and consumers buying just a wider array of products on their

computers and on their phones, has there been an interesting evolution in the average size or weight of the packages you ship? >> there has been. when you thing about e-commerce, you can originally think very small packages, a couple of pounds now, though, it's just a wide range of products. people will order mattresses they order furniture we have seen e-commerce bring a much larger package than what we would see normally in our b2b business >> and david, after this interview is done, i'm going to get on a plane and come down to see world court, which is u.p.s.'s major aircraft hub. what am i going to see down there and how are you preparing for the haul dpa season? >> morgan, you're going to be quite impressed. it's a huge facility it's a fully automated facility. we handle over 400,000 packages

per hour in that facility. we have yet to have customers visit that building and not be quite impressed. we think you will be, too. we look forward to having you there. >> david, thank you. david abney, the ceo and chairman of u.p.s. >> thanks to you our morgan brennan >> still to come, one of the biggest players in the hedge fund world stay tuned for an exclusive with ken griffin. dow is up 44 points. ckft aho bak

coming up on cyber monday, we'll speak to walmart's senior vice president of digital consumer brands, also the ceo. walmart's share up 40% so far this year. back in a minute [ keyboard clacking ]

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cyber monday retail names leading amazon above 1200. >> retail front and center, cyber monday gets under way. following a record weekend of online sales, what to expect today. >> and call him the 100 billion dollar man, jeff bezos's net worth skyrocketing >> and a deal this morning or yesterday evening. meredith is buying time inc. details straight ahead >> getting new home sales numbers. let's get to rick santelli rick >> i love breaking big numbers 685,000 seasonally adjusted annualized units is the october read for new home sales. last month, it was 667,000 that was a ten-year high it was downgraded to 645,000, but it doesn't matter. 685,000 is bigger. you have to go, as i said, all the way back to halloween of '0 avenue where it was 727,000.

so ten-year best exciting number. just for the trivia out there, july 2005, that was a high water mark, a whisker shy of 1.4 million. so even though its a's a great number, we have an extra ways to go to catch up to history. melissa, david, carl, back to you. >> thank you very much another big day for retail after the weekend shopping frenzy but bigger till for amazon shares the online retailer handily beating the s&p retail surge over the past three months, as we track cyber monday sales, who can keep up with amazon? joining us, john kerner, patrick is a retail analyst at mkm partners good morning >> good morning. >> let's talk about the weekend and how it's all shaped up we all know it's early, but do you foresee changing your models or estimates or targets on any of these names based on what we've heard? >> i don't think we'll be changing our estimates or models

just yet, but certainly the sector's on better footing than in the past. november month to date retail traffic is at its best, brick and mortar traffic at its best rate all year. only down around 3% total for brick and mortar retail traffic. that's a big improvement from where we were at the beginning of the year. that's why you're starting to see the sector outperform in the last couple months and it's tup today on what was robust digital spending trends. online was up over 18% over the weekend. consumer is healthy and brick and mortar retail traffic is better inventory levels are in much better shape, and retailers in general on plan, and with that, you have a lot of cheap valuations given the underperformance of this group so we're slightly more favorable on this group. >> why is target such an underperformer was an underperformer on friday, in today's session is that a real reflection of how you think black friday, thanksgiving weekend, cyber monday will be for this retailer sph.

>> i think, melissa, some of it is that the focus on e-commerce and investors in retail stocks are focused on e-commerce today with cyber monday. walmart is doing a lot better than target is online. walmart's e-commerce sales grew about 50% in the third quarter, and target's were about half that still good at 24%. and outpacing e-commerce overall, but i think investors are looking for traditional retailers that can really do omni channel well. right now, anyway, walmart is growing faster than target >> so patrick, does that lead you to favor certain names in your space right now >> i actually like target as a little bit of a contrarian opportunity here i think that they have a really good holiday lineup. they've got a lot of new brands in the stores. about eight out of 12 that they're planning to introduce by some time next year. so there's some merchandise

freshness and exclusivity. their online sales have accelerated. they're being more aggressive there. today, they're offering an extra 15% off online in addition to some of the regular cyber monday deals. so and target, the multiple is down in the 12, 13 times area. walmart is trading about 20 times forward earnings a lot of the good news is priced into the stock for walmart >> there is a shocking stat, john, out by gbh insights saying that on black friday, as much as 50% of all e-commerce sales were on amazon. do you expect that to continue on cyber monday? and i know you don't cover amazon, but who does that impact if that were to continue >> yeah, sure. i think cyber monday is forecasted up over 18 to 19% in terms of year over year growth there will be $6 billion done today online and there was $8 billion done online over the thanksgiving

weekend. so all the robust trends in consumer and digital, the brands that are extending their content into the digital space like nike, adidas are winning you're seeing brands like under armour hitting the promotional panic button 40% off at retail. the stock burning a lot of cash, that makes us coshish on them. our favorite stocks in the digital theme are adidas, skechers adidas, stock trading 22% forward earnings you could probably grow earnings in the next three to fooev years. skechers, potentially a billion dollars in cash in their balance sheet by the end of this year. very cheap stock, trading less than 16 times earnings the brands that can expand in the digital space are oning. brick and mortar and the promotional brands like under armour are falling victim to amazon at this point >> your prowess in digital, you think, overwhelmed any tailwijd you might get in apparel, for

instance is that the lesson of under armour right now >> they extended their brand into too many channels, and the product quality probably went down and they have to restructure their footwear and apparel business to a smaller size a smaller footprint. when you see a brand 40% off at retail, that's a warning sign. just too much inventory in the channel. so power category in general is healthier, but under armour is burning a lot of cash. that puts investors in a tough position right now >> so patrick, at this point in the season, we got black friday, and we'll get cyber monday sort of under our belts incremental touchstones will you be looking for over the next two or three weeks to help you sort of characterize the season is it about weekly traffic or average temps or something else? other than corporate guidance. >> yeah, i think traffic for sure i mean, that is key still.

it's very important still for retail to generate store traffic, either digitally or at the store level. and it tends to -- we have a big burst of activity over black friday, thanksgiving, black friday, and also cyber monday. then it tends to go. it has over the past several years gone into a reallull it's quieted down quite a bit, then the comes roaring back about the week before christmas. i'll be out at the stores a lot and paying close attention to store traffic, and yeah, the weather certainly comes into play this time of year but so far so good it's been pretty favorable relatively warm and dry. so things -- yeah, i agree things are looking better than they have, than they did last year and better than in a while for retail overall because i think the economy's as strong as it is but i'll be focused on traffic, store traffic. >> yeah. well, clearly, one of the biggest stories we cover all year long. john and patrick, we hope you'll

come back and help us digest it all. good to see you both >> thank you >> thank >> let's get to some deal moves this morning publisher meredith buying time inc. for $1.8 billion. third time did prove the charm for meredith it's going to pay $18.50 a share for time that was a spin-off from time warner back in 2014. meredith had tried back then to see if they could engineer a deal subsequent or when the spin was occurring. then it came calling last spring, trying yet again to see if it could put a deal together. but did not have a full financing package in place the deal it offered in the spring or was talking about in the spring included a good deal of equity. about 20% equity meredith has been focused on maintaining its investment grade credit rating. it was able to do that this time by raising a good amount of money from banks and $650 million through the koch

brothers through their private equity arm that's an 8% coupon on a $650 million convertible preferred. remember, i said, keeping an investment grade rating was key here that will be treated as equity, not debt that helps they got the deal done very quickly. now, the question for meredith will be, and by the way, you see the very positive reaction its shareholders are having to the deal this morning. the key will be, can they get the cost savings they're talking about. $400 million to $500 million in cost savings are targeted by the company in let's call it two years after the deal they think they can close the deal quickly we're not talking about an enormous review that takes place over continents, and then the question also will be what do they do with some of the key titles at new york-based time inc. for example, the namesake time, sports illustrated, fortune, none of which are money makers will they be jettisoned? unclear at this point. "people" is the main money

maker. that's where most of the money is generated a company that that been trying, of course, as so many others in the industry have, to increase significantly its digital footprint while dealing with those significant declines in its print editions it's been a difficult process to say the least. which is one reason why time's board was happy to take the $18.50 and run with it it was a number that was similar to what was at least discussed back in the spring as a possible price there. at that time, you may recall edgar braufman had interest in putting together a potential bid for the company. we'll see what happens in terms of meredith's ability to ring the cost savings out of the company and bring people into the fold they also have a significant presence in the video business, owning a number of television stations at meredith always been some question as to whether they would bulk up

enough on the print side to split the company, but a positive reaction, not just in time, but perhaps more importantly in meredith. just to put it in some perspective, a deal amounted by unilever to adopt sun dial brands shea moisture is the name of their key brand. i only mention it because deals like this, i'm told, have been done around eight times sales. shea moisture doing around $240 million in sales ogx, they bought a while bac if you do that, you get a sale price that is very similar for a company nobody's ever heard of >> wow >> to what time sold for kind of puts it all in perspective, that $1.6 billion, $1.7 billion, $1.8 billion is what meredith is paying. they're assuming debt as well. >> guys, as you know, a few

moments ago, we got the blowout number on new homes sales. we want to turn to diana in washington for some reaction >> and to say blowout, it goes beyond that. this is well beyond what the street expected. we were looking for giveback because september's number was so high, and we thought that was all hurricane related. if you look at the numbers, the biggest part of the jump up to 685,000 annualized units is in the northeast and midwest. clearly, the builders are benefitting from the record low supply of existing homes for sale, but on top of that, you saw the median price jump to $312,800, up from $302,000 a year ago that's a huge jump in prices and you're seeing the supply of newly built homes drop to a 4.9-month supply it had been over 5.5 months just last month one interesting note, there now 247,000 new homes sold that have not been started to be built yet. that's an amazing number it's the highest in over ten years. that means the builders are going to have to up the housing

starts, and the big question, of course, is where are they going to get the labor to do it. really incredible numbers for the builders going forward we have to expect to see housing starts rise along with that. back to you. >> thank you for thereat diana olick in washington, d.c >> when we come back, online sales for black friday skyrocketing up nearly 17% we'll talk to the svp of consumer brands for walmart, andy dunn. take a look at stocks. a record high on the nasdaq and now the dow joins them with its pedy meord high, l bho de depot. back in a moment

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board this morning with the dow, s&p, and that dachitting record highs as retail stocks lead the way on this cyber monday the nasdaq also coming off its best week since september. let's bring in steven wood and david stubs, chief client investment strategist at jp morgan private bank. good to have you with us i'll start off with you, steven, because you say this is an asymmetric momentum driven market underweight preference for u.s. equities how long have you been in that position how painful has it been to defend this position as we continue to hit record highs

>> we have been in thas position for a number of quarters and the relative performance of that has been borne out because we're keeping our global equity stable but we're composing it differently. trimming it into high valuations and reallocated that into predominantly europe and japan emerging markets the relative performance has held up quite well >> what are red flags when it comes to the european and emerging markets are you concerned about what's going on in germany with angela merkel >> if you look at what's happening with the europe context, we think the european central bank will be lower longer they reduced qe. but also, we think relative to the u.s., they're going to be more easy, more quantitative, as will japan we think the political situation, the monetary policy situation in europe is looking pretty good. also, earlier in their economic cycle. valuations still look attractive

into 2018 and 2019, we think of global alkaz could benefit some usd. this is a good eight years, time to rebalance globally. >> david, you are constructive on equities globally i'm wondering how constructive you are in this part of the cycle and in terms of the potential risk, some of the risk you see potentially impacting how equities do, they're out there. they're happening right now. >> yeah, some of those risks are manifesting, if you look at china's policy changes we have seen since the congress, we always expected they would take some tough choices, and that might start to impact some of the markets you see that more in the bond markets than their equity markets right now. but some of the risks, of course, to the outside, if you look at u.s. equities, we would agree with steven that over a medium term, there's probably more upside to europe, to japan, to emerging markets. in the near term, if we get tax reform, indeed, that's probably an upside risk to u.s. equities as well.

i think also that the discussion about monetary policy being removed of that support is a red herring at the moment. going to take an awfully long time before global central bank balance sheets start to shrink and central banks around the world are going to be able to remove accommodation very gradually, part of their disinflationary source are in tech, and there's a link to the flattening in the yield curb and the performance globally the same picture, broad based growth around the world. >> steven, what did you make of china's stumble last week, and what do you tell people who think it sort of connotes problems with the leveraging long term? >> i think the big story coming out of china is this contribution to growth rate right now. if you take the longer term, we're looking at portfolios that are longer term in nature that are multiasset and global, and what we see coming out of china and korea the week before last, is that the global growth rate has improved dramatically. europe, as i mentioned earlier,

japan has gone to not bad, and the chinese growth rate is probably in the 6.5-ish arrange. previous to the current uptick, probably in the 3-ish percent. the growth rate, but i think right now what we're seeing coming out of china from the financial market's perspective might be more opaque than we want, but the global growth contribution, the inflationary contribution, the yield curve in the u.s., that's something people want to keep their minds dwar towards. given these valuations that it might be in their interests. >> one of your concerns is the unwind of voltillitary positions. we live in a low volatility world. are you concerned about risk parity strategies? what are you talking about >> if you look around the nature and structure of markets, every cycle we see innovations in how people invest innovations in the instruments they use if you look at the this cycle,

you look at how much money is bet in different ways on the existence of low volatility and that continues into the future, i think there is something interesting happening in market structure, but that's just a risk factor that we're watching. there are definitely ways you can play that, obviously certain hedge front strategies and strategies that will allowia to hedge the risk. it's something we keep in mind further mormore, i don't think we're going to see the kind of turn in the economic cycle globally as steven was saying, that is going to lead to people to really re-evaluate the part and parcel of corporate earnings any time soon. although we're looking around the world for issues and for risks to hedge because it seems to be such a positive story, overall, we're absolutely staying on the front foot with our strategies across our investor base. and to play the strength of the stock steven was talking about

indeed, if we look at container volumes, export volumes, trade is participating in a way that we haven't seen in the post-crisis era in the last few quarters that's very healthy as well. i think also there's greater conviction and participation in this equity rally from a range of different investors who have sat on the sidelines for a while. that's one of the reasons we see more money coming into the market that's why you see drawdowns so limited. at the moment, this is a great pitch for investors. >> thanks. good to see you. >> thank you >> thank you well, call him the $100 billion man. amazon's jeff bezos watching his net worth soar along with his company's price. hey, robert. >> we're watching it too because never before has anyone gained so much wealth so quickly as jeff bezos on friday after the amazon shares surged on strong black friday expectations, bezos' worth topped $112.3 billion. it's the first time since bill

gates back in 1999 this year, his wealth has increased by $33 billion, just this year. and he's up over $50 billion over the past two years. now, let's put that a little into perspective bezos could spend over $6 million a day or $250,000 per hour for the rest of his life and still have billions left over so what is he going to do with it all so far, he's not announced any concrete plans he has pledged or given away a total of $68 million, about less than one tenth of 1% of his wealth, and unlike virtually all of the billionaire tech founders, he doesn't have a charity. he did tweet out a request for ideas, saying he wanted to focus, quote, on the here and now of need. and bezos may be about to redefine philanthropy. he has sold over a billion of

amazon stock every year to fund blue origin, his space company that plans to colonize mars, and he purchased "the washington post," which he sees as very important for democracy. and he has said that, quote, for profit models can improve the world more than philanthropy models what would it take for bezos to be the first trillion dollar man? well, amazon stock would have to hit 12,500 guys, back to you. >> hey, robert robert, it's david to be fair on gates, remind me here, is that $89 billion he still has not in the foundation or do you include the foundation when you include gates' net worth? >> that's a terrific question, david, because if we included all of the money that gates has given away, gates would be at over $150 billion today. so he's given away over $60 billion to the foundation. and the 80 some odd that gates has today does not include all the money he's given away.

>> wow >> also viewers remind us about the tweet that bezos send out in june asking for ideas, which you mentioned, robert. >> and the only follow-up to that was bezos expressed his thanks for those he said he would take it into consideration. so far, we haven't seen any of those ideas come to fruitiono here hasn't said what he's going to enact >> the $6 million a day rate, he could have paid for the post in 41 days, right we were talking about that this morning. >> exactly >> now, of course, robert, you're assuming -- i don't know when you have him expiring >> over 100. >> going to figure out a way to be 300 years old >> probably, you're right. i have put it at 105 because he's -- he seems to get younger and healthier every day. but you're right knowing him, he's figure out at least 300. i should amend that. >> okay, good. robert, thank you. >> thank you >> fascinating as always speaking of amazon, wednesday on "squawk alley," jon fortt will have an exclusive with amazon web services ceo

andy jassy >> when we come back, drama unfolding in washington as a showdown is under way at the cfpb we'll take you there live. >> tomorrow on capitol hill, jerome powell testifying before the senate banking committee for his confirmation hearing we'll bring you analysis and take you there live starting ri "ua othstet" tomorrow we'll be right back. you always pay

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it is a showdown over the consumer financial protection bureau, as two people now claim the acting director job. our kayla tausche has been covering this all morning from cfpb headquarters in washington. hi, kayla. >> hi, carl. it was mick mulvaney, the budget director and the white house's appointment to be acting director role here at the cfpb who got the keys to the director's office, got the transition binders and was greeted by staff this morning, despite being sued late last night by the deputy director who was promoted into the job that would have assumed the acting director if the white house hadn't appointed someone leand raw english fired that lawsuit and a temporary restraining order against mulvaney using a provision of

dodd/frank that the white house disputes in addition to that, the cfpb's general counsel disputes that. this could be a legal battle that plays out depending on how angry democrats get about this you can see behind me, consumer advocates are calling this a hostile takeover of a government agency, cited the billions of dollars in fines they collected from big banks as well as mulvaney's own criticism of the bureau and his attempt in previous years to get rid of it altogether that was a sentiment he echoed as recently as january during his confirmation hearing >> because they are off appropriations, because we don't budget for them, because they're run by essentially a one-person dictator who believes he can't be fired by the president but by cause, we have created, perhaps inadverte inadvertently, the worse kind of government entity. >> a senior white house official that i spoke with disputes any contentiousline lness everybodye role despite the fact that

mulvaney sent an e-mail that was confirmed that said to disregard any instructions that employees get from leandra english, the deputy director. they say mulvaney will take a measured approach to the role, though he will have authority to revisit rules that are currently under consideration as well as pending enforcement actions. the white house does hope to name a permanent director soon, but we'll see how much this boils up or blows over and what happens after day one. for now, back to you >> all right, kayla, thank you kayla tausche in front of the cfpb let's get to sue herera for a news update. >> good morning, everyone. here's what's happening at this hour ending months of speculation, brilten's royal palace says prince harry and american actress meghan markle are engaged. they'll marry in the spring of 2018 the announcement says that the couple were engaged earlier this month. 33-year-old harry is fifth in line to the british throne cleanup is under way in

florida after a train carrying multan sulfur erailed in lakeland officials asking nearby residents to stay in homes hazmat crews working to investigate the crash. syrian government air strikes hitting serve areas of damascus today, killing at least six people, according to syrian opposition activists meantime, opposition fighters shelled a separate suburb of the city and pope francis arriving in myanmar where he was greeted by local catholic officials francis will meet separately with myanmar's civilian leader before meeting with bangladesh's political and religious leaders. he'll also greet a delegation of rohingya muslims >> you're up to date back to you. >> thank you very much, sue. when we come back, online shopping takes center stage this holiday season we'll speak to the svp of digital consumer brands for walmart, andy dunn "squawk on the street" will be right back n'goway. s, global bonds

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black friday sales reportedly topping $5 billion, and online records expected on this cyber monday. retailers aggressively trying to counter the amazon effect, and walmart now in an all-out online price war with the e-commerce giant. joining us at post nine, bunobob bunobose founder andy dunn, also ceo of digital brands at walmart. first, how would you characterize the weekend and how do you think the season is going to go? >> it's a grazie time for e-commerce we're seeing increasing share shift. it's exciting for us because we're on both sides of the aisle. we're going from the e-commerce standpoint, also focused on the stores we're trying to make sure that both sides are really singing to make sure this holiday is awesome. >> what surprises you most about this early stage, the growth online, which we know pretty well, or the in-store traffic, which is better than some expected >> we think it's kind of a great

moment to be a contrarian. there's a lot of challenges in the landscape with stores, and we have been opening, and what we have seen is it becomes a great complement if it's differentiated you come on and try on clothes, you get fitted, then we're shipping it to you from our fulfillment center what we're doing is leveraging the economics of really being a showroom, but with the in-person tactile experience of trying on the clothes, and having this, which is a one to one human experience increasingly, that becomes important as we move to online, having great one-on-one experiences. >> do you take a look at retailers who have stores, who have inventory in stores who feel the sorts of pressures and think that's going to go the way of the dinosaur eventually the model we have where you come in, you touch, you feel, you try on, and then it gets shipped to you is the way the future is going to be? >> there's a great quote which is the future is here, it's just not evenly distributed we think we're a corner of the world where that is the future for us, what it enables us to do is offer a great fit so in our chinos and our suits

and pants, we're offering a lot more inventory so we have a more granular fit, more silhouettes and color and print. that wouldn't be possible if we were levereraging one base of inventory. >> taking nothing away from bonobos, i want to know what you're doing for walmart overall as the senior vp of digital consumer what is your day like now, and how is it different than when you were running bonobos >> we have conviction that what we're going to do is extend across the consumer eco system we have modcloth, which is reporting up in my purview, and the idea is similar, digitally native brand but focused on women's vintage apparel. we think this digital native model is going to become more pervasive as this change in the landscape continues. >> are you working directly for mark lurie >> i am. >> you said in the past that he's the most innovative and ambitious e-commerce entrepreneur in the planet >> i think so. >> why >> when you look at the ambition

with jet.com and what he did there, his success with diapers and soap.com, very few people are going out there and creating models with this much equity value. the chance to work with him is just phenomenal because he wants to take on the world >> a lot of people wonder why you didn't go public as bonobos. we had a gentleman a couple years ago, a fast growing retailer others have gone public at the exchange do you look back and think what if >> i talked about it for years we were talking about the ipo, and then the chance to work for mark, the chance to belong to such a scalable home where the asset would really be safe, you see the public markets every day. being a stand-alone vertical retailer challenging, and then a chance to play offense on a much bigger stage was too good to pass up. >> culturally, has it been what you expected working for walmart? >> it's been great you know, we were worried about it i think rightfully so, but our team is really engaged they see the light that this is actually a great company you look at the overall ethos,

the company of walmart, we have been thrilled to be a part of it and humbled to be a part of it >> walmart, the market has responded to the fact there's a belief that doug mcmillon is very much focused, they're really committed to omnichannel online is that what you see >> at the risk of being a brown noser, i love doug mcmillon. i had dinner with marc and doug. >> it was more about are you -- is that actually happening are they willing to spend a lot of money are they doing the things that would say online first, or sort of equal to in-store >> you can see it. coming off last quarter, it's really, really exciting the way the company is so committed to digital, and also leveraging the power of the stores. >> when you talk about your model, though, it sounds like it's a real advantage that you got walmart the juggernaut, that has this infrastructure already with fulfillment centers and distribution it's almost like an amazon model. i guess the question is if you're somebody like you and you want to team up with a big guy,

if somebody did the same with amazon, would they have just as much of an advantage as you in terms of that sort of infrastructure that you need to have that retail model of the future >> we think it's both. right? you think about sam walton and what he started with stores. now the world has changed so much we really believe it's about omni if you look at bonobos, we're the pioneer in omni commerce for building a brand versus selling other brand so you thought it was a great match. >> can you give an example early on where you came in all these books are opened for you to see, and you realize the possibility of their power of distribution, things you could never do before? >> the speed of the fulfillment in particular. what we want to do is get faster ow service is great, our clothing is great. can we get the product to the consumer fast. we look forward to partners with walmart on the fulfillment piece of the equation. >> how about private label is that a possibility as well? or creating your own brands as

you did at bonobos within the walmart ecosystem? >> private label isn't the sexiest term, but you could think about what we're doing as digital private label. that's what bonobos is now for walmart. that's what modcloth is. we won't necessarily sell on walmart, but when you think about jet.com, the power of reaching an urban millennial consumer and owning your own brands is the way walmart came at it. >> to your point about the future not being evenly distributed, when? when does it become the norm, do you think? how many years away? >> we have been humble we pioneered this model a decade ago. now in every category, every single - >> piecemeal, in pockets >> in pockets. i think it takes time. this isn't downloadable clothing this isn't going to happen as fast as music happened when row see it, particularly this year and last year, you can feel it happening in the market so at what point does it start to accelerate. e-commerce was 7% in men's wear

when we started bonobos, now it's between 17% and 20% when does it get to 50%? you know better than me. >> you think it can get there? >> i think it willie get there >> andy, please come back. >> by the way, a quick programmatic note as we go to break. tomorrow on capitol hill, fed chair nominee jerome powell testifying before senate banking. that's his confirmation hearing. one of several big news events we have this weeknition to the opec meeting and yellen's testimony. we'll bring you full coverage and take you there live beginning 100at0: a.m. eastern time dow up 70 points almost as "squawk on the street" continues in a moment.

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bit bp coin surging past $9,000 to a new high over the weekend. seema mody joins us with more on

this move. >> shoppers did not just buy clothes this black friday. the largest bitcoin exchange saw 100,000 accounts activated between wednesday and friday, yet another sign of how more retail investors are getting exposure to the crypto currency in the later stage of this rally. it's seen as one of the factors behind bitcoin's most recent climb. the move from 8,000 to 9,000 took only seven days at this pace, it will be well over $12,000 by the end of the year and the younger generation has taken notice the most extensive bitcoin survey to date compiled by block chain capital shows millennials prefer bitcoin to stocks 32% say they'll own bitcoin over the next five years. but bigger institutions are airport anticipated to play a larger role as the cme group is set to launch bitcoin futures contract in december that will be a big test for the crypto currency space. >> the ceo said second week of december, so put that on your calendar all right, seema, thank you.

>> now let's get to the cme group in chicago with rick santelli and the santelli exchange rick >> well, thank you, melissa. dr. lacy hunt, my first guest of the hunt thanks for taking the time >> my pleasure >> you know, in the newsletter you co-author, one of the first sentences was, worst recovery in post-war period. that was a big mantra last election haven't heard much about it lately has this year changed that in any way in your mind, doctor >> no. and it doesn't because of the vast disparity this year between what's happening in the consumer sector and overall economic growth the consumers are living substantially beyond their means. had very disappointing growth in household income after taxes and inflation. consumers have been spending, but the rate of growth has slowed very dramatically since late 2014. and what growth we've had has

been responsible, has been attributable to a sharp decline in the saving rate and a big step unin consumer debt. this is really not sustainable the personal saving rate is at a ten-year low, and it's one of the lowest personal saving rates since 1900 the consumer sector is way over its means at the present time. >> all right dr. lacy, i'm going to give you a hypothetical and then i want you to answer a question first of all, considering if we stood exactly at the current growth rates that we have now, do you see any way we're ever going to grow our way out of some of our issues yes or no? >> no, because the debt is racing ahead so rapidly. federal debt now is approximately 106% of gdp, and by 2030, it will be around 125% to 135% of gdp >> having said that, dr. lacy, if you were to look at the tax reform bill, and granted it's

going to morph a little bit before the senate votes on it, then it will have to meld together with the house, but just generically, will it make a difference in your answer? should we pass tax reform? you said the road isn't going to take us to the promise land. could tax reform make a difference towards that end in your opinion >> it will not make a difference if the tax reductions are financed by new debt i believe that there is substantial evidence that indicates that as government debt goes up, economic activity contracts a little bit there may be some transitory benefits, but overall, the tax reductions are merely creating some sets of winners and some sets of losers there's no net gain for the economy. >> let me interrupt again because we're just about outf time i like what you're saying but in the end, here's the quandary you're not a fan of debt you think it's one of the reasons we had such a rotten

recovery but in order to get a big kicker on tax reform, it cant be anywhere near revenue neutral. the kicker in the beginning is going to look like a debt enhancing issue down the road. how can we get around that or can we, final thoughts >> if you if you could finance e debt, the tax cuts by reducing government expenditures, that would work to the economy's advantage, because the tax multipliers are more favorable than the expenditure multipliers, but it has to be achieved by expenditure reduction. >> it all sounds so good we can't even close the consumer financial protection bureau, because they have a life of their own, so tackling what you say seems more difficult, thank you for your thoughts this week, sir. >> my pleasure >> back to david faber thank you. >> okay, i will take it, thank you, rick santelli time to send it over to john fortt and get a look at what's coming up on "squawk alley." john >> legendary hedge fund manager ken griffin, founder and ceo of

citadel is going to join us. boy, what the markets have been doing this year, the strong start to the holiday season, it will be interesting to figure out what investors should do next that's coming up on "squawk alley"

the kardashian backed app has partnerships with nordstrom and h & m. users upload photos or take a screen shot, the program identifies the clothing and suggests similar options from different brands at different price points joining us now, the co-owner, molly herwitz. we were playing around with the app. what did your app turn up? >> yeah, we take inspiration from social media and we bridge a gap between that inspiration and for the user to be able to purchase that item in the moment >> so you took the photo >> and then what came up is dresses of you, tons of different options, different price points, things on sale, showing you everything in one platform you can just tap on it and buy it >> and the partners include? >> we have over 450 brand

partnerships sachs fifth avenue, all the top i retailers right now. >> how does that work in terms of a partnership, how do they pay you, how do you get paid >> we receive commission >> so if they use the app and they don't buy anything, you don't get paid >> correct >> got it. >> what's the technology behind this that enables it to be true to what you're saying? >> so we're a patent pending right now. indirect recognition is not a new concept, but our use case is really special where we bridge the gap for millennials who like to browse on social media, that's one behavior they have the second is screen shotting. we bridge that gap between screen shotting and browsing for inspiration, take the screen shots, bring it to our app and show them so many different options to purchase in a minute. >> you know, it's interesting this app is for clothing i assume you can apply it to all sorts of different goods

furniture would be easier, for instance, and that's been sort of the last mile you have an app like a pinterest or houzz and it's difficult to purchase what you see on the screen that last mile is missing. >> absolutely, you're taking my road map out in front of the public, but yes we have exciting things coming up right now it's men and women's clothing coming up soon is going to be kids, a little sneak peek over here, but after that there's going to be a lot more exciting things we're looking forward to bringing out >> how many downloads so far and how many do you expect >> obviously, we're partnered with kim kardashian. we expect to be getting millions of downloads that for us was exciting, but for us the true number that resinated was our retention and engagement this early. we just launched a few weeks ago and already we're seeing users come back day in and day out they love our app. they are so addicted >> all right, molly, thanks so much for coming by >> thank you >> molly hurwitz, screen shop

cofounder. coming up, ken griffin is with us. dow is up 67 and "sqwkll" ar ia nute aey i think that she's a very nice girl... you never got the brakes looked at? oh yeah. no.

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welcome back to "squawk on the street." markets are higher to start the week with nine of the 11 sectors in the s&p trading in the green. one standout is energy, as oil prices sink more than 2% that does itfor this hour of "squawk on the street. let's send it back downtown to the new york stock exchange for the start of "squawk alley." guys, back over to you >> dom, thank you very much. good morning, it is 10:00 a.m. at meredith headquarters in des moines, iowa, it's 11:00 a.m. on wall street, and "squawk alley" is live. ♪ ♪ good morning, welcome to