good morning, it's 8:00 a.m. at apple headquarters in cupertino, california, it's 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ ♪ ♪ good friday morning, welcome to "squawk alley," i'm carl quintanilla with john fortt, mike santoli at post nine of the new york stock exchange.

>> also iphones, macs are affected by a processor flaw and also billboard reports jimmy iovine could leave his role at apple music and a survey shows an improvement in demand for the iphone x, despite what it calls supply chain volatility. for all that let's bring in the man behind that note, steven malanovich steven, good morning, happy friday >> same to you >> i want to start with the iphone x that's the big profit and revenue driver at apple. there's often all of this supply chain noise around iphone releases often a lot of it doesn't actually translate when we see the results. which are we to believe, the fear, uncertainty, and doubt among the demand for the iphone x as evidenced by component

orders from apple, or the demand that you're seeing for the phone itself >> well, at the end of the day demand drives supply, so we focus quite a bit on demand. we did this at ubs evidence lab survey follow-up, so a couple months ago we looked at demand for the new phones we thought it was good, but more tepid than i might have expected, but the survey was taken in october, which was before the x shipped, although it had been announced, but customers hadn't seen reviews, et cetera, so we went in december and did a follow-up survey and found demand, particularly for the x, is substantially better than our prior survey found and could be 40% plus of the mix. as far as the supply side, it's been particularly volatile remember back in summer there were concerns they couldn't make the x, might be supply constrained and already the companies caught up. i think they deserve kudos on the manufacturing side there is talk of a recent pull back in production, but the

numbers have gotten so high they didn't make much sense at the end of the day i come back to the demand side and we think it's looking pretty good >> let's get to this processor flaw, meltdown and specter that affects high performance computing systems, not just from intel, but intel has been a focus. apples, macs, of course, all use intel chips. iphones and ipads don't, but they are affected, as well, because they are high performance. it seemed to me, i assumed all of apple's products were affected the stock is up today. is that perhaps because apple seems to have this in hand and they are saying the performance hit is going to be nowhere near the 30%, 40% that some fear? >> i think so. there's been a couple things that hit apple in the headlines, but investors view them as noise. you have the microprocessor issues, which aren't unique to apple. apple seems to be responding in a timely manner. then you have the flap about the

batteries, where apple perhaps could have been more transparent in what they were doing for customers. i don't think there's anything evil in what they were doing or trying to shorten the product life, but they could have been more transparent and from an investors standpoint there is risk because you could replace the battery for $29, it could link upgrade cycles a bit, but at the end of the apple we focus on the growth in the installed base and retention rate, which is still 90% orso. so apple is growing its customer base and keeping its customers and as long as that's the case, you're in good shape >> steve, certainly true the stock shrugged off a lot of the noise related to supply chain, security concerns, all the rest of it. i do wonder, though, if in the next few months we'll have an idea what the upgrade looked like is the stock going to start to have one of those lulls that it's had in past cycles? >> you know, it's possible the stock could have a lull, you know, we do think this is not going to be a super cycle year

we're looking for good unit growth of 10%. what helps apple is, number one, average selling price is going to be up because of the x and that's going to drive 15% revenue growth just by itself, so 10% units, 15% average selling price gets you to 25% revenue growth for the iphone. the second thing that helps, i think, is the repatriation of cash at some point the company is going to talk about how they are going to use that cash to repaur which is stock we're going to go to our calculators and figure out earnings from that and that could carry us through what otherwise might be a lull until we get to the next product cycle next september >> there's that, steven. there's also the impact of asps to the degree there's upside what's the general rule of thumb, every $10 equated into earnings per share >> something like every $10 is about 25 cents a share we're looking at an asp of $747. the street is more like $730

again, we think the mix of the x, which is the key metric, is about 37%. apple's very unusual in the sense that they sell a consumer electronics product that's kept or increased its price over time that's unique. and i think that's been a concern over the years that a good enough phone at a lower price would undercut apple that hasn't happened yet in fact, almost the opposite the x we're finding people love face i.d., they are very happy with it. the next product cycle you'll have a larger version of the x, which keeps the asp relatively flat at least for now, that pricing and brand capability that apple has should support the stock >> quickly, steve, got to touch on this because you mentioned it, jimmy iovine's departure does it matter after the $3 billion acquisition? >> yeah, i don't think it's too big of a surprise. wasn't like he was running a business, per se his thinking in terms of how music develops was helpful this gets to the content question in terms of where apple

is going apple will do select things like working on this jennifer aniston, reese witherspoon show, et cetera, but i don't think apple needs to be a huge player in content they are a platform for distribution, not fundamentally a content player themselves. so i think jimmy's moving on is fine and we think it fits well with the strategy. >> seems to be a lot more profit in distributing it anyway. thanks, steve, for all of that insight on apple >> thank you >> good stuff. stocks are rallying, despite that jobs number this morning below estimates. joining us for more on the markets, chief u.s. economist over at jpmorgan and global equity strategist at wells fargo. happy friday, guys, good to see you. michael, we have the jobs number and ism number below the estimate pmis roaring around the world, but cpi is in check. harker is on the tape arguing for two hikes this year. is this feeling like the

goldilocks lasts longer? >> well, it is lasting longer, that's for sure. we have had wage gains that have been subdued, so that gives the fed some time to move at a leisurely pace we think they'll move once a quarter, as they have been doing, or did in 2017. we think powell's first meeting will be one in which they hike in late march, but that said, i don't think there's a sense of urgency here as you say, the cpi numbers have been tamed, wage numbers have been tamed that lets them get into a more neutral position without having to, you know, race to tighten. >> any good explanation, not so much on the jobs number today, but on ism and the four-month low and what new orders did? are we still sort of in the wake of the baffles of what the hurricanes brought >> so, that could be a little bit of what's going on that said, you know, i think we have to view that number in the context of the broader data that we've been seeing. that's generally been good, whether it's been the housing

numbers have been quite solid, retail sales numbers have been good, and manufacturing numbers have been quite solid. i think we have to balance all this data. it still looks like the economy is growing around 2.5% in the fourth quarter and we're looking for something similar this quarter. there are ups and downs in the data, but overall it's still a slightly above 2% economy, as far as we can tell >> it seems the market coming into this year has been perhaps transitioning from this baseline assumption that it's a slow growth high liquidity environment to maybe a higher growth environment with rates subdued and the rest of it i wonder if that's how you think it makes sense to play this, in other words, an acceleration phase in terms of what the market can do simply because growth is better, but still financial conditions very loose. >> yeah, we would agree with that we recently took our number higher for gdp up to 2.9, so right on the doorstep of 3 we also raised our numbers, you

know, post tax reform, took earnings up, clearly don't see that much more multiple contraction, so from that standpoint good u.s. gains so some acceleration is warranted given what's going on in the fundamentals. >> michael, i feel there's maybe still some of this wall street/main street disconnect when we're talking about the economy. yes, the jobs number was good, but i don't know that people on the street, blue collar, are feeling like things are really going great. does that have to do with a lack of wage growth still >> that probably is a big part of it. that said, consumer sentiment numbers have generally moved higher hard to catch up to where the stock market is going, but in a historical context, a lot of the numbers we see are improving if we start to see the wage gains this year with the tax cuts generally helping the household sector, that could probably further buttress consumer attitudes, i think, in

2018 >> michael, to what degree do you think wages do take off? yesterday one of the stories was the survey of net compensation plans, which was at a 17-year high, then we get the jobs number today and we're back with the old familiar 2.5%. when does that change? >> i don't think historically we see these things take off. they have been gradually grinding higher. if you look at the average hourly earnings, one of several compensation measures we have. on average the measures were 2% two or three years ago, now they are about 2.5% on average. we think they continue to grind higher maybe closer to 3% by the end of this year. i think if you're looking for a takeoff moment, that's probably not what we're going to see, at least historically that hasn't been the case. usually tighter labor markets slowly grind wages higher and that's what we would expect. >> one last thing, samir, big question for the investors would be the degree which producers can pass along some of the wage

pressures to the consumer, which looks a little challenging >> you've seen commodity prices run a little bit you've seen wages in that 2.5%, you know, call it kind of area the part we'll change abit is sales growth that's starting to pick up, especially if gdp picks up the top line should also accelerate from that standpoint, i think they'll be able to pass price increases on to consumers, so that probably will show up a bit in cpi our number for this year is 2.4%, so you will see that tick higher >> guys, good discussion a lot of stuff to work with today, whether ism or jobs thanks, guys, see you later. >> thank you when we come back, uber's ex-chief will add $1.4 billion to his bank account as he plans to sell a third of his stake in the company. the move to legalize marijuana hits a snag at the federal level. the mayor of berkley will join us with his take and hollywood's award season

kicks off this season. two things in focus, the rise of netflix and sexual harassment. what to watch out for when "squawk alley" comes back. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. nexium can take 24 hours. try cool mint zantac. no pill relieves heartburn faster.

snap shares are down this morning after a report found that 96% of ad buyers would prefer to advertise on facebook's platform, instagram, over snapchat. for more, senior internet analyst john blackledge, as well as scott divot

guys, good to see you both john, it was a heck of a report. i just wonder, is the enthusiasm among ad buyers for this platform getting worse, or plateauing at this low level, getting better, what >> yeah, i mean, so we surveyed 50 senior u.s. ad buyers, sixth year in a row we did it, and snap didn't show up well in it the ad buyers expect to grow share with snap a little bit, but they rank dead last in user targeting, return on investment, and data and measurement and as you referenced, 96% would prefer to advertise on instagram stories versus snap ads. also facebook dominated the survey, and we think with that it could prevent dollars migrating to snap. and with the company trading at 15 times revenue, and we cut numbers significantly, we're well below the street, we had to move to an underperform.

>> scott, are you in the same boat, and what degree are they going to fix this problem? >> i think john makes great points in snap facebook has a better ad platform, also significantly more users and that tends to be what drives advertisers to the platform, the ability to measure roi on investment. i think investors should also keep in mind the likelihood that facebook itself is facing a bit of a crisis or at least a challenge, you know, that's of the magnitude they haven't faced since they've gone through the mobile monetization transition when the company went public, as has been discussed with mr. zuckerberg's annual new year's resolutions that were published yesterday. and so there's an opportunity for a platform to emerge, whether it's snap or not that succeeds on close circuit communications, and snap hasn't scaled yet and certainly hasn't

scaled their monetization capabilities, but it's an interesting moment in time as far as the opportunity to go from broad communication, which is dominated thus far in terms of social media, to more close circle communication, and that's an opportunity for snap. >> john, that snap versus instagram comparison is certainly an attention grabber, but i wonder if you could dig into what you found for al alphabet's conclusion with google how'd it shake out with search ads versus youtube and how preferences for the social players compare to preferences for google >> yeah, it's a great, great question thank you for the question google search showed up great. google, again, this is the sixth year we've done it, google search was considered to have the best roi among ad buyers youtube had 40% share of the ad buyers' digital video spend and that's expected to remain flat

over time. we expect google to lose share of global digital advertising in the next five years. it's really just a numbers thing. we have them growing their net ad revenue growing 11% the next five years, global digital advertising growing 13%. so 35% by 2023 and it's a function of what's growing fastest within digital, and the two fastest channels are video and social, and google is there for video, but they are not there for social >> scott, you referred earlier to this crisis that facebook is going through. is that something you think is them trying to figure out exactly what the user experience, the content strategy, all the rest of it is? or do you think that's going to manifest in terms of challenging their growth rates, their market share in terms of advertising in the next year or two >> it certainly hasn't impacted the company to date. i think it's really what's the focus here, the second

derivative amplification that's taken over core facebook and that's what you're going to see the company focus on, is getting back more towards the roots of social networking over the next 12 to 24 months. it's certainly fixable, but the first set of bad news events the company has had to face going back a good five years now we have a buy rating on facebook and a hold on snap, so we're in a similar camp with john in terms of the stock prices, but that's something that i think is certainly worthy of conversation, because it is a new event that facebook's facing really for the first time as a public company >> yeah. the term fix is confusing to some when people are looking at the shares at 185. we'll talk facebook another time john, scott, thanks, guys. good to see you both >> thank you >> thank you when we come back, uber ex-ceo travis kalanick cashing out. the details of his billion dollar shares sale and as we head to break, cme an

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uber founder travis kalanick reportedly selling a large chunk of his shares in the ride-hailing company deirdre bosa is in san francisco with the details deirdre? >> good morning, mike. this is a major change of heart for him. kalanick is planning to sell 29% of his shares, but he wanted to sell half of his stake that's a maximum amount board members were allowed to sell in the softbank transaction, values the company at a 30% discount to the latest valuation kalanick was limited because the round was oversubscribed this is an about face for him because this is, of course, the company he founded and has had unwavering faith in. he didn't want to leave uber

last summer, but was forced out by investors he remains on the board and previously said he wouldn't sell any shares back in 2016 he even boasted that he never sold a single share of uber ever >> i think what a lot of people don't know is that i've never sold a single uber share, so the most expensive thing i bought, i bought before uber started, and it's my home, and it was right around a million bucks >> now it's safe to say, guys, mortgage will no longer be a problem. kalanick currently holds about 10% of uber, selling nearly a third of his stake, even at the lower valuation would give him $1.4 billion, minting him a real, no longer just paper, billionaire. the big question is, what is he going to do with all of that real money and what's it mean for the future of uber the softbank deal drastically reduces kalanick's power and influence and now he's cashing

out, perhaps to step out and do something new. back to you. >> fascinating, great scoop, deirdre bosa out west today. when we come back, jeff sessions waging a war on the marijuana industry mayor of berkley joins us next with his take. plus digging out, east coast trying to return to normal following the major snowstorm. we're down in downtown boston when we come back.

good morning, everyone, i'm

sue herera here's your cnbc news update at this hour. michael wolff is standing by his controversial book about president trump. in an exclusive interview on nbc, the "fire and fury" author insists he spoke with the president on the record and called trump, "the least credible person who has ever walked the earth." this comes after president trump tweeted he never spoke to wolff for the book the snow may have stopped falling, but massachusetts is blanketed under ice and residents there are bracing for bitterly cold temperatures the storm cut power to hundreds of homes, forcing many to evacuate today construction crews and the national guard are helping with the clean-up process the weinstein company is reportedly close to a sale the wreaall street journal saysh studio could fetch less than $500 million and its shareholders could lose all of its equity the company has been under pressure since this fall when

sexual harassment allegations surfaced against its founder, harvey weinstein and alex trebek is taking a break from "jeopardy" after recent brain surgery to remove blood clots. the 77-year-old had the procedure over the holidays and he said his prognosis is excellent and he hopes to be back taping "jeopardy" very soon we send him our very best wishes that's the news update, back downtown to "squawk alley. have a great weekend >> same to you, thanks so much let's get to seema mody. what a week it's been for european stocks. seema? >> you're right, europe is adding momentum to the global rally, on track for its best weekly performance since may of last year, though the latest inflation numbers did disappoint traders say it's the optimis surrounding europe's growth picture in 2018. germany the standout, deutsche bank shares plunging after announcing it will take a 1.5

billion euro hit due to the u.s. tax reform law deutsche adding that trading operations in the period were characterized billow volatility in financial markets that stock down 5% the german dax is breaking a three-week losing streak with a gain of nearly 3%. france falling close behind, while the ftse is yet another record high above 7,700. europe's auto makers continuing to rally, fiat chrysler receiving expectations all gains between 2% to 4% in fact, the stocks auto parts index posting its best weekly gain since july of 2016, up around 5% for the week meantime, the london telegraph reporting that amazon has held talks over the uk tv rights to the premier league, their publication says amazon has been

consulting industry experts about such a move. the rights would last for the three years between 2019 and 2022 amazon would be challenging sky and b.t. for uk coverage of the world's richest league mike, sending it back to you >> wow, seema, that would be a big splash thank you very much. from europe to california, where california is saying it will fight back following u.s. attorney general jeff sessions' decision to terminate a policy that allowed legal marijuana to flourish in many parts of the u.s. aditi roy is in san francisco for us >> hi, some in the state believe recreational cannabis is a gold mine, others think the latest rules in the administration will lead to a pot bust the state has been front and center on the issue this week, of course, on monday california legalizing recreational marijuana. cannabis companies started cashing in on what many believe

will be a $6 billion market by 2021 senator kamala harris tweeting, "instead of going after drug cartels and violent crime and major traffickers, attorney general jeff sessions is going after recreational marijuana users. that's not being smart on crime. xavier bacerra also intending to enforce states laws and interests, but the top lawyer stopped short in saying whether california is preparing to sue the administration over the issue. the state cannabis regulator says we'll continue to move forward with processes covering both medicinal and use cannabis consistent with the will of california voters. when i reached out to california-based cannabis companies, the reaction was mixed. one ceo says the industry will move to defcon 1 because of this a dispensary in oakland told us chances are remote sessions' action will significantly impact the legal cannabis industry.

and as far as how this will affect the state's finances, fitch ratings saying the renewed enforcement could reduce revenues in the eight legal states, it wouldn't materially affect their credit positions. back to you. >> thank you very much for more let's bring in mayor jesse arreguin of berkley, california, whose city hosts more than 20 cannabis delivery services and 11 dispensary store fronts good to see you this morning, thank you for coming on. >> thank you for having me >> just how important a business were you expecting this to become under legalization, and does this potential threat from the attorney general, u.s. attorney general jeff sessions, actually have any impact on those expectations >> well, the impact, we think, will be of the legalization of recreational cannabis will be significant. we anticipate millions of dollars in additional tax revenue, creating new jobs, and this move by the attorney

general is not only an attack on states' rights, it's an attack on our local economy although it's unclear what effect his decree will actually have, but berkley has stood with our local license marijuana dispensaries, even when the federal government took enforcement action against them, and we'll stand with these longstanding businesses in our community. >> mayor, what if the federal government starts treating these businesses like drug dealers, which it sounds like the attorney general feels like they are? they could do drug raids on these businesses, could they not? >> certainly they could try to seize their assets, which is something that's happened in the past. once again, we don't know what the effect of the attorney general's statement will mean in terms of the ability of recreational medical cannabis businesses to do business in the state of california, but the city of berkley passed a policy eight years ago to say that we will not work in collaboration with federal agencies to enforce

cannabis laws, that we will provide sanctuary for cannabis businesses in our city, and we will not only honor the will of the voters, the voters of california, but the voters of berkley who voted 85% for proposition 64 to tax and regulate cannabis. this is really a states rights issue and attorney general sessions and republicans in congress should honor states like california to tax and regulate cannabis. >> mayor, you talk about the economic impact. how much data do you comfortably have to judge the social impact of legalization on cities like berkeley states like colorado are still sifting through data impact on crime, illegal use, that kind of thing, people who are underaged, for instance >> by taxing and regulating cannabis it removes the black market i agree we should be going after the drug cartels and drug dealers, dealing with the opioid

crisis, which is killing thousands of people a year once again, this is an example of the failed war on drugs, where we're focusing our priorities in areas that don't make sense we have many people that are in jails that are victims of the criminal justice system, but with respect to the amount of revenue that we anticipate, california is expecting to get billions in tax revenue. the city of berkeley is expecting to see millions of dollars. we expect hundreds of jobs to be created here in our own city, and certainly there's going to be an impact on local tourism and support local businesses so, if the federal government does take draconian action against cities like berkeley and other cities in california, that will have a real impact on our local economy. we need those tax dollars to be able to fund police and housing initiatives and fix our infrastructure >> before we go, mayor, have you seen any guidance from the state in terms of what it's official reaction and response might be >> i think we're still trying to wait and see, you know, what the

impact of the statement means, but, you know, our attorney general for the state of california said they will defend proposition 64 and the right of california to tax and regulate cannabis and the city of berkeley will similarly defend and honor the will of the people >> jesse arreguin, mayor of berkeley, california, thank you very much. >> thank you very much meantime, boston still recovering from yesterday's massive winter storm, the so-called bomb cyclone battered the region with snow and ice, grounding thousands of ice chris pollone is in downtown boston, where we saw all the footage of the flooding yesterday, chris, good morning >> yeah, good morning, carl. that's right the snow is gone, and so is all the slush and slop that came out of boston harbor, came up right here behind me, state street and atlantic avenue. six, eight inches catching cars, people driving unaware that is all gone the sun is out today, but the problem is the wind remains and so do the cold temperatures.

the forecast high in boston today, 14 degrees. we've already seen that today. it's already down to about 10 or 9 right now with wind chills below zero tomorrow is going to be even worse, with the forecast high around 8 of course, all throughout the northeast, all the way down into the carolinas and georgia seeing record low temperatures from this arctic blast. it's still causing problems for people trying to clean out, especially here in boston. i was watching some guys try to clean up, and the slush froze so hard that they are using ice chippers to try and get out. very tough work for them cars are getting around on the main streets pretty well throughout the region, but air travel is still pretty snarled already 1,500 flights have been cancelled today after more than 4,000 flights were cancelled yesterday. so the airlines are struggling to get that going to run a normal schedule. as the day goes on, they'll be able to ramp up flights a little bit better than they have so far, but it is a mess, and this city has not seen a day with a

high temperature above freezing since christmas day, and they probably won't see another one until monday at the earliest live in boston, chris pollone. carl, back to you. >> all right, i'll take it, thank you, chris we'll try to complain a little less here in new york. when we come back, hollywood's awards season kicks off this sunday, and netflix is in the spotlight with a record dozen nominations. preview coming up. first, rick santelli, what are you watching today >> i'm watching the markets and how it's been trading in the aftermath of what i considered a weak report with respect to jobs and the weak headline number we'll dig down into that more after the break, especially on the notion of think small for big returns. ation. trekking a hundred miles inland to their breeding grounds. except for these two fellows. this time next year, we're gonna be sitting on an egg. i think we're getting close! make a u-turn... u-turn? recalculating... man, we are never gonna breed. just give it a second. you will arrive in 92 days.

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i'm scott walker coming up today top of the hour is this week's rally a new reason to believe 2018 is going to be another blockbuster year for the market. plus david tepper told me yesterday the market won't fall until the bond market gets hit we'll see if black rock's rick reitter sees warning signs any time soon when he joins us today. and the third upgrade for a major sports retailer this week. is it time to give this sector another look we'll ask the traders on "half-time," carl, 15 minutes away >> look forward to it, scott, see you in a bit let's get to the santelli exchange with rick >> good morning. thank you, carl. you know, this morning i was

only 100,000 off on my estimates for what i thought non-farm payrolls would be. and, of course, i was on the high side. jobs were on the low side, but if you looked at wages, hours worked, everything was pretty decent, holding some of the recent level gains it's had in the cycle, but what i find most important, putting everything together in this crazy last year and a half we've had with markets and specifically the big banks start for 2018 is that you really need to think small to make big bucks and i think that it all goes back to a car analogy, the transmission the transmission during the policy days where growth was more faux and holding markets up was the biggest job of central banks was the notion of how they tried to get stimulus, cheap money into the system and it was through the big banks. and the big banks for the most part did the best in making the big bucks. and a lot of the transmission just never made it to everybody

else fast forward in many ways the transmission is now changed. you know, there's an old adage between main street and wall street, you know, what's good for wall street isn't good for main street and vice versa and i know that analogy has been used in a negative way with respect to where we're at now, but that's not the way i think when i think wall street, i don't so much think of it as where the stock market is, i think it more as where the big institutions profit or don't profit i really think main street is going to participate more and i think the tax package is going to make a big difference for small businesses now, i don't often look at the following chart, but i want to put it up. this is small business optimism index put out by the national federation of independent business, and this data series, jim bianca got me thinking about it this morning, began in october of 1974, okay, so that's when we go back to and what you'll notice on this chart is, our last look at this number in december was around

107.5. the all-time high is 108 one time, september of '83 it's been higher than it was about two and a half, three weeks ago. the neat part is this tuesday it's going to be released again at 6:00 a.m. eastern, on the 9th. and most likely it's going to take that out. this is huge you talk about chipping away at 95 million people not working, small businesses can make an inroad there that the big boys couldn't, and i think that is going to be a huge part of the strategy for 2018. carl, back to you. >> all right, busy day, rick, thank you. rick santelli. still to come this morning, ahead of this weekend's golden globes we sat down with one of the nominees, bob odenkirk of "better call saul. how he navigates an industry so crowded w thonntnowi cte dow's up 91. you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman?

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the golden globes are on sunday, and there will be two major themes in focus at this year's ceremony. once again the rise of streaming and netflix and the cultural reckoning over sexual harassment julia boorstin is in los angeles with a preview hey, julia >> stakes are high across hollywood as they prepare for the globes, a show that drew about 20 million viewers last year the red carpet will be dominated by stars wearing black to make a statement about sexual harassment in hollywood and to storm the times up initiative, which aims to drive change studios both traditional and

digital will be jockeying for recognition, recognition which can help draw top talent netflix is making gains as its $6 billion investment in content last year pays off it has a record 12 nominations, including two for "mud bound" and crown," "stranger things" and "master of none," up from the five they drew last year netflix has nine tv nominations second only to hbo which is in the lead, as usual, with 12 tv nominations including six for the series "big little lies. but hbo could face even more competition as netflix ramps up its content spending to as much as $8 billion this year with the goal of hitting 50% original content by the end of 2018 just this morning, netflix announced a deal with "planet of the apes" director matt reefs as it expands the commitments netflix isn't focused entirely on critical acclaim green

lighting a sequel to its hit "bright. whichever networks win sunday they will get a chance to promote themselves and also their shows to viewers we can expect many of the winners though to use the podium to share their opinions on what needs to change in hollywood and beyond guys, back over to you an interesting show on sunday. julia, thank you meanwhile "the post" directed by spielberg is nominated for six golden globes. the white house has requested a screening of the movie ahead of the release next week. meryl streep took aim at trump one of the co-stars is nominated for his role in "better call saul." he's been in the industry for decades and had multiple shows before "saul" for which he won emmys for a writer and how does he find room in aworld so crowded with new material? take a listen.

>> the challenge is there's so many projects that come out that come out that you can get lost in the plethora of options >> the sheer amount of content the number of things and if you're with amc, right, you get -- they really are going to invest in getting you -- getting your presence known over a fair amount of time and then you come back for a fourth season and you make a big deal out of that fourth season and they make weeks of a big deal out of it. right now you see a lot of people trading in the old model, the cable model for the netflix model, but i also think that there's going to be a value if i want people to know about my show i want people to have, you know,

this company behind me and my idea that's going to tell everybody about my show for weeks and really make a big deal out of it and really try to get my story in front of people's eyes and have them compelled to watch it that's a value there's a group of people at all these networks, right, and they look for compelling stories and they take chances on things, you know, and they are all good at what they do and their value means a lot to people like me who are creating shows i want to work with the good people who are doing that, so, shoot, man i don't know what's going to happen next. i don't know what's going to happen what is it going to look like in three years? i don't know. >> and we still don't know google, apple, right we're still learning about amazon's ambitions five years from now it's going to be -- >> the question is how much is the curated part of this -- of this business model worth to

regular human beings how much is it worth to have the wonderful executives at amc go these are the three shows you should see we've worked for a long time on them, and you as an audience member go i just trust them that i'm going to get something good there versus you weeding your way through massive amount of stuff and finding your show. it's -- i think, you know, it's got to go back and forth between those two. it can't go all down one road i think. >> you can tell how smart he is. we'll have a lot more with odenkirk coming up including his insights into working with steven spielberg on "the post. he's nominated, of course, for this weekend for more go to cnbc.com/binge. we've talked a lot about subscription fatigue haven't heard many actors talk about curation fatigue. >> he's talking about discoverry, the idea that in the

older model you had executives saying here's what you should watch and in the newer model is saying netflix's algorithm is able to look at your history and my history and say, you should watch this now odenkirk vehicle. well, he doesn't believe that they are doing as good a job with the algorithm as the executives did now, one way or another netflix has to convince him and so are a lot of the other streamers. >> or at least it's a more uncomfortable thing. you don't exactly know the algorithm of how it will place you everywhere and how it will be received in that way. >> netflix announcing letterman's new talk show starting january 12th i believe, including george clooney, president obama and some others, jay-z. so the content flow is not abating at all. >> a lot of names we know on that list. we'll see how it does. when we come back, why justin timberlake is embracing his inner steve jobs he has an inner steve jobs, huh. "squawk alley" back after this alerts -- wouldn't you like one from the market

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. ♪ ♪ exactly what you like >> that's justin timberlake's

new music video for his song "filthy. the pop star channeling apple's late ceo steve jobs. the single on his album "man of the woods" dropped last night. what a week it's been for music. this new album, the iov news out of apple, billboard reporting, the spotify 70 million user thing, right >> yeah. >> busy. >> i can't get over this timberlake/jobs comparison because to me it's timberlake playing an actor who played steve jobs, and it shows just how deep this idea of apple and invention and technology has gotten into the culture. >> with robotics and maybe augmented reality layered on to it, right. all this stuff jobs is part of the pantheon and we make these oblique references to him. >> like albert einstein with the hair. >> yeah. >> what did isaacson write about, einstein, ben franklin and jobs, right? he's in the pantheon for sure. >> da vinci. >> take a look at the markets. hung in there. boeing crossed 300 for the first time ever. big part of dom's report about

stocks that could theoretically get you to dow 30k. >> unstoppable the dynamic, last year's winners doing great and last year's laggards picking up. >> we'll have ces to talk about next week and a week from today bank earnings begin so buckle up have a good weekend, everyone. let's get to scott wapner and "the half. welcome to "the halftime report." i'm scott wapner our top trade, rally on with stocks on pace for their best week in more than a year is it time to get even more bullish? with us for the hour today, josh brown, jim lebenthal, steve weiss along with jon najarian and we do begin with the markets. stocks once again making new record highs so, steve, answer the question i asked right at the top. is it time to get even more bullish on this market >> i don't know. it's a tough time to start getting in it's a tough time to real increase your positions dramatically but i