live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at the u.s. equities this hour you will see things are indicated higher dow futures indicated up 250 points the s&p up 28 and the nasdaq indicated up by 106. this comes after some new lows that were set last week, at least month-long lows for the dow and the nasdaq the dow on friday closed at the lowest level since july 3rd. the s&p was at its lowest close since may 3rd. the nasdaq not at a month's long low but it is down 5% for the month of november so far and that's after dropping 9% for the month of october that shows you a little bit of the carnage we've seen at this

point. just last week it was down 4.4% and the nasdaq off 4.3%. this morning we see green arrows across the board take a look at what happened overnight in asia. going to see that in asia stocks closed higher in japan, up by 3/4 of a percentage point hang seng was up by 1 3/4% and the shanghai was down. gains of better than 1% for the cac and dax. ftse up by almost 1% and then in italy stocks up by better than 2.7% in spain, stocks up by better than 1.5%. take a look at treasury yields here in the united states. you'll see the ten year is yielding 3.064%. we closed at 3 point be point-- 3.045. brent crude tumbled nearly 8% on friday brent has dropped more than 25%

just since the start of october. wti is down about 30% over the same time period surging supplies, slowdown in demand growth and the equity markets all weighing on the energy market. we can have more coming up in a bit at 6:30 a.m. major developments over the weekend in the brexit battle the european union officially endorsing theresa may's plan to leave the e.u. far from a done deal may now needs to sell her plan to parliament. the stakes are high. they couldn't be higher. if parliament rejects that deal may could be toppled as prime minister and the u.k. could crash out of the e.u. wut a dita deal a lot of people in europe on tinder hooks there. >> we have some new numbers on holiday shopping on the cyber monday adobe says last friday alone pulled in a record $6.2 billion and online sales, that's up 24% from just a year ago more than 1/3 of the purchases

were made on smart phones or other mobile devices. the fastest growing day for ecommerce is thanksgiving. thursday online sales totaled $3.7 billion, up 28% from a year ago. >> you say the numbers in terms of traffic, how many folks were showing up in stores, the foot traffic? >> was it good >> it was down >> every measure. >> weather >> no, everyone sits on their phone. >> a lot easier, avoid the phone. >> i'm down 25%. i'm down 25%. >> in phone usage. >> this goes back to the whole idea of dana kelsey and all of these other analysts running around the malls trying to figure out what's going on as if that's a way to indicate anything anymore it may well be that's not the -- >> by one measure it showed traffic down things from a year ago. >> do you watch your phone >> no. >> down 25%. i gained six pounds.

>> it's like quitting smoking. >> right my phone smoke cage is down. >> going to eat. >> i'm trying to be positive i'm making some progress offset some of my setbacks. >> this one should be the opposite. >> i should be more phone usage and less weight. how do you lose weight if you're on your phone? >> you're a chain smoker. let's talk about stocks to watch this morning general motors is expected to announce today that it will close its assembly plant in the canadian city of oshua the factory makes pickup trucks, large is he dance. reports say that it will be shut down before the end of next year that move is part of gm's shift towards hybrid and lower emission cars. campbell's soup is near a deal with dan loeb to end the bitter proxy fight sources say campbell will add two of the nominees to the board and will give the hedge fund a say in naming the next ceo that settlement would come days before campbell's annual

shareholders meeting they had been pushing for five seats on that board. shares of logitech are higher in switzerland after the company said it has ended talks to buy plantronics sources say that logitech's board walked away from a potential deal because of a disagreement over price. cramer's up. jim cramer is up and about tweeting about the market at 4:48 a.m he tweeted, talk about classic bear market behavior we crater all week and then we open up huge on nothing, but because we are so over sold it is thoord let things go. i -- you know, i was sitting there when i got up look being at my phone, which i tend to do, and i was happy. i was happy. >> just seeing the futures >> yeah. i was happy. so i'm naive about -- >> rough crashes last week. >> i'm hoping in another day when we were down 250, before you know it it's 500, 600.

i'm hoping it's up 500, 600. i'm naive that way i expected cramer to be -- i saw other tweets he went to gino's cheese steaks. >> after the game? >> after the win for the eagles? >> yeah. they were down 19-3 or something and they came back and beat the poor giants that needed the win. >> some giants fans may be okay with that. if you have a respectable performance against somebody who's a big rival like that? >> no, no, no, they need to win out. >> better for draft choices. >> everybody was ready for the giants they got barclay, odell in there. >> odell was complaining after the game. >> very restless over here i was at the jets game. >> were you? >> that looked promising initially but you know brady like a robot almost. anything he throws they catch. the end of that game and the result was obvious. anyway, more on the markets

let's bring in jody gunthrop and doug i want to start with you, doug there were things i thought were interesting in your comments first time we've gn to quantitative tightening to quantitative easing. tariffs. something to worry about you can't help but think this market is much cheaper than it was six months ago or a year ago. >> yeah, i think that's right. as mark twain said a long time ago, history doesn't always repeat but it does rhyme here there almost is no playbook we've had such incredible quan at this -- quantitative easing we've moved away from it in the u.s. here. we'll probably end up with four tightenings plus a reduction in the fed balance sheet. that's a lot i think we've absorbed that. i think going forward there really are two events to watch and they happen to be this week.

with all due respect to jim cramer when he says the market has rallied this morning, futures are nothing, i would actually argue there is some anticipation of realistic good news both with powell's comments which are scheduled on wednesday. it's an opportunity for him to walk back a pretty significant statement. i think you'll see a continuation of some trend rhetoric who knows, you're dealing with president trump. she has peter navarro, larry kudlow, he's all of our larry kudlow. >> in our hearts. >> deep down a free trader trump may not know until he gets in that room with xi, but the fact that they're going to get together at the g-20, which is a significant global event, it was one of the things two years ago, the g-20 meeting helped change the whole trajectory of the market it's possible you could get a

cease-fire. >> one hike next year. one in december? >> one in december almost has to happen next year i'd say it's 50-50. >> on one? >> you might get one i don't think you'll get more than that. >> jody, you have a lot of comments on both of these. mostly on the trade impact on the dollar >> well, the two key things that we're looking at from the g-20 and brexit are the growth and the dollar and the growth is really important it's more powerful than the dollar, but what we see is if the trade tensions escalate then the worst impacts actually happen for south korea and china whereas the least impact happens in the u.k. and japan. in the u.s. small caps benefit most from any of the growth. they're more sensitive for every 1% of growth we see average 5.2% return on small

caps whereas, for the dollar every rise gives us 95 basis points. if the tension is that should help the industrials and materials. if they escalate, that should help the utilities, the consumer staples. >> all right you follow commodities can you think of what happened with oil is that a dollar phenomenon or is it supply phenomenon? what is it >> all of the above. oil is priced in dollars seasonally it's a bad time for oil. in the fourth quarter we've seen that the gasoline demand goes down in a lot of refineries, but repairs happen and we typically don't see oil bounce back until maybe february, but energy sector in equity goes ahead and as well in december. in december it happens to be a very good month for equities

across the board sector style does well in december small caps have their best month in december. they gain on average 2.8% and the materials as well as the energy's, financials. >> to doug's point, could this be different this time we haven't seen this >> energy is cyclical, i wouldn't be surprised to see it pick up especially with the interest something without a rise in energy i think it would be tough for energy to stay down forever. >> doug, if in conclusion you think 2019's going to be a lot better for stocks than this year >> it's hard to imagine it's going to -- well, i shouldn't -- it certainly could be worse. the s&p 500 is flat the basis points for this year, however, i

think deutsch bank had a really good report quoted in the journal today saying if you go back to the early 1900s something like 90% of asset classes are down this year that's the most of any year, even worse than 2008 and worse than the years during the depression for u.s. equities i do think we've come a long way down in terms of multiple. down from 18 times to 15 times i think the fear, the prominent fear -- two fears, one, fed raising which we talked about which will be relative and moderate the second is that earnings have peaked and while we will cycle through the tax cuts, i think you will see that interest rates are not going to spike up. interest costs won't be as high as perhaps some people fear and in my view there's very little indication of inflation and that's the biggest thing that gives me comfort, we won't see the multiple compression that we've had and that earnings will be okay. >> you go into that it's a risky business do you have a feeling for 2019 are we up or down? better this year for equities? >> i don't know what will happen

in 2019, but what i do see is a lot of volatility. we're seeing from all of the international uncertainties, a lot of volatility. the large caps are just as volatile the small caps might be a good time for general u.s. equities, not just the volatility but the down side protections. the correlations are a lot lower. >> when we were at 10,000, everybody got bitcoin. >> yeah. >> now it's like you've never heard about it. >> we're going to be talking about bitcoin at 6:50. >> you finally talked me into buying it. >> did you buy it? >> no, i tried i wasn't able to. >> tried to buy some at 6500 >> no, 8500. >> based on your recommendation. >> they were under 4,000. >> yeah, based on your recommendation you were going to buy it under

six. >> i was. >> under five. >> yeah. it's under four. >> you still haven't honestly? >> i -- >> what's your price target now? >> lower will you buy it at $100? >> yeah, i would i would. i would. >> is that -- how about one fifty? >> now you're -- >> now it's too much >> unbelievable. that's the psychology of investing. everybody can learn from that. >> bitcoin there's a specific psychology. >> why would i listen to you on this when you talk -- i'm just glad i was unable -- >> i didn't tell you to buy it. >> you talked about it so much -- >> and it's like -- it's like the investment of the future. >> it's like digital money. >> it might be. >> digital world you and tom lee, 20,000, $1 million. >> might be worth $1 million in bitcoin in -- not in your lifetime. >> >> i'm glad they locked me out. >> you guys have been fortunate enough to have warren buffet on the air, charlie monger, jamie

dimon. they've all warned people this is dangerous stuff. >> i think it's hard -- you're coming for the valuation based on what? >> i have -- i'd defer you to sorkin on this i'm just glass you weren't there. >> think wanted me to wire money. my debit card is not good enough for snem. >> because the debit card -- credit card companies don't allow you to buy bitcoin. >> jodie -- >> they protected me doug cohen coming up when we return, tesla's ceo elon musk out with a new warning about the dangers of ai he's been talking a lot about this over the past couple of years. we're going to talk to mike allen from axios about his interview with him. >> do we worry about what names

somebody calls somebody else rather than whether a.i. will destroy things >> that's ridiculous. >> like children in a playground. we'll talk with mike allen the biggest premarket winners and loss eers. osers. obvious.

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saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $200 back when you when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. welcome back to "squawk box. tesla's ceo elon musk making headlines overnight with an interview on axios on hbo about how close tesla came to the failing during the ramp up of model 3 production. >> tesla faced a severe threat of death due to the model 3 production essentially the company was bleeding money like crazy and if we didn't solve these problems in a very short period of time, we were done it was extremely difficult to solve them. >> how close to death did you

come >> we were within budget weeks. joining us is mike allen, axios's executive director happy thanksgiving. >> thank you. >> great interview and final episode of your four episodes on hbo. the question about the interview, fascinating one with elon musk last night, after you asked that question and he said effectively we were just, you know, effectively weeks, single digit weeks away from failing, what i wanted to know was did he say more was there more about what had happened because during that same period i think he was very positive, at least on twitter and other places, to the markets about what was happening. >> you're right. he's making clear that what we suspected behind the scenes was happening as they tried to ramp up the production of the model 3 3, the mass market version, that it was as difficult as it

looked we asked him at the end. we said -- it was almost a throw away question. i said, what do you do that no one should do? and he said no one should work this hard. he said that he is almost constantly in the factories. the chief engineer, the chief designer underscoring what's worried the market at times, and that is how much this is a one-man operation. and such an amazing brain. the co-founder of seven companies. currently the ceo of four companies, and if that isn't enough, he now in his late 40ed. he predicts a 70% chance that he will go to mars. >> real quick on the mars comment. he's been talking about mars there was one distinction. he's talked about mars being the escape hatch for the world that effecttivelily wants everybody to escape to mars.

it might be an escape hatch for wealthy people he said it wasn't wealthy people that were going to get there but you had to be brave and courageous because he said the chances of it actually working were not as high as i thought he would say. >> and he said the chance of death is high. he said he is still eager to do it, but he knows that he could dion mars. he said, even if you get there, then you're going to be working hard you'll have to build a civilization that doesn't sound like -- >> real quickly, mike. just on this idea of being weeks away, single digit weeks away from death, did he describe how or what happened i mean, what was the -- we all knew that there was problems there, but the idea that he realized he was weeks away from death. what would have happened what could have happened >> axios took a look at it

what he means is he was weeks away from needing a new capital injection. so this is partly financial, but it's also personal partly personal. i asked him about the toll on him and he said this hurts my brain, this hurts my heart so we've seen -- >> did he talk about the tweets, by the way did he talk about the settlement >> he didn't say anything new about the settlement, but he did talk about how he likes to tweet and something he has in common with president trump he doesn't plan to back off it also, interestingly enough, just in the last week or so endorsed president trump's space program. >> let's talk politics i want to talk about saudi, what you think is going to happen in the next week or two there clearly there are members of the senate and congress that are saying that they want to put some kind of sanctions together. obviously president trump has backed mbs what do you think is really

going to happen? >> andrew, this is a surprise. the white house thought this was going to kind of fadeaway. so many things do right now, but this is clearly not. you have that astonishing comment yesterday by representative adam schiff, democrat in california, incoming chairman of the house intelligence committee saying yesterday that he can't say what he's got cannen in his intel briefings about the saudis he said what he will say is he tows not think the president is telling the truth. the clear implication is the intel briefings he's getting, the cia has confidence this was ordered by the crown prince. >> the cia is not allowed to tell congress this >> so it sounds like they did tell congress this in a confidential setting adam schiff there giving us one of the bigger hints you'll ever get out of an intel briefing here's the new part. a surprising part. yesterday in a phone interview

with jonathan swan, senator lindsey graham said he is going to push for wider briefing he said if it turns out that it's true that the media reporting is accurate, that the cia has high confidence that this was ordered by the crown prince, he said he's going to push for sanctions on saudi arabia he said we can't do business with someone who's that crazy. >> and what do you think the prospect is that that moves ahead? because there are a lot of businesses obviously in the united states that do business with saudi that would be huge implications for the future of saudi and oil and everything else. >> absolutely. the chances of intel for congress are high. the fact that there are republican house and senate pushing for this is the surprising part. so president trump has a lot of work to do either to recalibrate what he's saying publicly or to

convince the house and senate not to leave. >> mike allen, thank you >> thank you. when we return, crude prices ticking higher this morning, but still down more than 20% just in the last month. we'll talk about the fallout from the markets next. right now though as we head to break, take a look at yesterday's s&p 500 winners and losers ♪ they call me heat miser ♪ whatever i touch starts to melt in my clutch ♪ ♪ my friends call me snow miser whatever i touch ♪ turns to snow in my clutch ♪ i know you want to leave me for schwab, but before you do that, you should meet our newest team member, tecky. i'm tecky. i can do it all. go ahead, ask it a question. tecky, can you offer low costs and award-winning wealth management with a satisfaction guarantee,

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♪ ♪ welcome back you're watching "squawk box," live from the nasdaq market site in times square. good morning welcome back to "squawk box" right here on cnbc among the stories front and center, e.u. leaders backing theresa may's brexit withdrawal setting up a parliamentary showdown in the u.k. passage is crucial for may as failure would lead to her being ousted as leader people in europe waiting to see what happens there. mitsubishi's board has voted to remove carlos ghosn last week for alleged financial misconduct

he's reportedly denied those allegations. campbell's soup working on a deal, settlement perhaps with third point and a firm that would add two of the activist funds nominees to their bond they have a 7% stake in campbell it had pushed for a slate of the soup company saying it would accept other strategic groups. u.s. equities groups at this hour, we are looking in the green after what was a very difficult week last week dow opening up 241 points. nasdaq up 107 points s&p 500 looking to open 28 points higher. we will see in about three hours from now whether those numbers stay. morgan stanley is out with two big calls on the market. strategist andrew sheets is downgrading american stocks to underweight and issuing a rare double upgrade from global stocks going from under weight to overweight here's what he said earlier this

morning on wor"worldwide exchan. >> slower back drop, weaker growth you couple that with continued tightening from the fed and i think it's all a cocktail for a much more difficult outlook for u.s. equities relative to the rest of the world. >> putting this in my brain to remember talked to a top citigroup strategist tobias levkovich. energy markets, crude oil sliding 30% since the start of october. joining us to talk more about it is matt smith. he is director of commodity research matt, there is a little bit of a bid for oil prices today, maybe because of what we're hearing of a potential saudi production cut. quiet one. they say that they're going to be going and sticking with their normal production levels that they set back in 2016 but that would imply they are pumping much less than they are now because they've been pumping additional barrels at the behest

of the president where do you think we're headed with this? >> i think with saudi, becky, they're trying to walk a tight rope they're essentially trying to find the balance here and keep everybody at peace on one hand production is strong there's talk of it getting up to 11 million barrels a day which is a record. we're seeing november finishing out at a record. so at the moment production is strong, but on the flip side of that they're trying to rein in flows to the u.s. to try to keep those inventories in check we have the opec meeting coming up at the end of the week when they're going to be looking to have a cut coming through. really there are these opposing factors at play here why they're trying to apiece president trump but at the same time as well they want to cut, they want a higher price than where we are now. >> old saying is that the solution or the cure for low

prices is low prices because right now you also have drillers in the united states, north american drillers, who are looking at this saying how much money are we going to spend to pump out oil next year they're setting their budgets for next year and based on wti sitting at $50 per barrel there will be more money going into that than a month ago. >> absolutely, becky another thing to consider is there is that wti bench mark, but there's also the wti midland benchmark which is similar to the permean basin. prices there are considerably lower than wti they're like 6 dsz lower a barrel or something like that. it isn't just that 51 that we're looking at here, it's 45, perhaps even lower than that at other regional price points. yes, even though we may be seeing lower gasoline prices, we're also seeing these producers going to really get hurt as well. >> well, the production, we're just looking at the supply on that level of things, how much do you think is supply and how

much do you think is demand, slowing demand happening around the globe? >> one of the things that we look at becky on a macro basis is oil in transit. oil that is on the water at any one given time we see that at extremely elevated levels and that isn't because of demand. we think that is because as this availability increases from latin america and west africa but from the middle east as well there is an influx, a surplus of supply when there's this lack of demand from a seasonal basis really it's a bit of both. really there is a surface of supply and that's why we've dropped this 30% in the last two months. >> matt, that's interesting. i thought when you set it up with the amount of supply on the oceans, that would be somewhat an indicator of demand people are there to be buyers on the other side of it >> it can be viewed in one of two ways we're seeing a lot of product on

the water as well. another thing we see is flow through storage building up so that is an indicator that they just did some -- a market. the oil or the products to go to that's a real concern from that perspective. yeah, you're right in some cases when you look at this it could be viewed as bullish but in this case because of everything else we know it really signals a bearish case here >> we have seen oil prieces come down so far so fast. you're telling me you still wouldn't be a buyer at these prices >> well, i think going into the opec meeting here we're going to see a bit of a bounce. saudi with russia as well trying to push for a cut here so i think we should be seeing prices leveling off around this level but as we mentioned, if we see the supply continuing to come to market here, then by all means we could see prices even tick lower from here especially if the economic news continues to worsen as well. >> what would you bet by the end of the year? what are we looking at for the last month of the year

>> potentially just getting up to over 60 again for the wti should these cuts be signaled that they are going to happen. if we don't really get anything out of opec, then we could see them moving towards the lower 50s. >> matt, thank you for your time today. matt smith joining us from clipper data. coming up, the slide in bitcoin dipping below $4,000 we will talk to a bitcoin investor as prices are heading lower. then stock strategy as futures rebound. citi stock strategist tobias levkovich. you're watching "squawk box" on cnbc alpha seems more elusive today. is it because so many go after it the same way,

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welcome back, everybody. let's take a look at the u.s. equity futures you're going to see that things are in the green after a rough week, rough sledding last week last week the dow was down by 4.4% the nasdaq was off by 4.3% this morning you are seeing these green arrows with the dow futures indicated up by 240 points s&p fewer tuesday up by 47 and nasdaq up by 102 points.

as 50 million americans tried to head home this weekend, a winter storm snarled travel all over the place wreaking havoc from the great plains to the great lakes. more than 1200 flights were canceled nationwide yesterday and nearly 5,000 more have been delayed this morning speaking of travel disruption, a highly flammable chemical leak from a plant next to the delaware memorial bridge shut it down yesterday for hours creating a traffic nightmare during the thanksgiving holiday travel rush home the bridge was finally reopened around 11:30 p.m., more than six hours after it was closed. traffic backed up for miles on both sides and delaware and in new jersey fire company spokesperson said that if anything had ignited the gas cloud, it could have been catastrophic. time now for the executive edge automakers joining forces to lobby congress to extend the sales threshold to allow electric car buyers to get a lower federal tax credit phil lebeau joins us now with that story, hey, phil.

>> reporter: hey, joe. the federal tax credit for electric vehicles is something that was put in place early in the obama administration and they set the level at the first 200,000 electric vehicles built by a manufacturer. at the time people said, that's a nice little start. we're finally at the point wherefore some electric vehicle makers like tesla, general motors, nissan is another one. that $7500 federal tax credit goes to the buyer. the buyer after they buy the car when they buy their federal tax credit they can get that tax credit 7500. it's for the first 200,000 e.b. sold in the united states. then it is phased out as sales growth from there. for tesla, that means it will be phased out after january 1st the company has sent out e-mails to prospective buyers saying, look, if you're interested in buying this is the time to do it because it's going to be cut in half after january 1st they are pushing for the federal tax credit to be part of the reason that they boost sales before the end of the year

as for general motors, as you take a look at shares of general motors, it is facing the possibility of the e.v tax credit, whether it's applied to the volt or the bolt, that will start to be phased out sometime early next year. it will hit that 200,000 sales threshold. as you also take a look at shares of tesla, gm, tesla, nissan, all of their lobbying groups are working together in washington to convince members of congress that you need to raise that threshold, whether it's to 300,000 or 500,000 or to make it potentially indefinite, although that's unlikely to happen here's elon musk happening last night on axios on hbo about how close this company came to really perilous times if they did not make increased production of the model 3. >> i mean, tesla really faced a severe threat of death due to the model 3 production essentially the company was bleeding money like crazy and

just if we didn't solve these problems in a very short period of time, we were dying it was extremely difficult to solve them. >> how close to death did you come >> we were within single digit weeks. >> within single digit weeks coming close to death. some people will listen to that and say, oh, come on now, you could have borrowed. you could have made sure the company was not going to fall apart and completely collapse, but that's an interesting comment in terms of the importance that the company put on meeting that model 3 production threshold. >> we spoke with mike allen and he said when they went back and analyzed it, what it meant, near death, meant they would have to come back for another capital raise. i don't know if that would have meant death for the company or really bad for elon musk personally because of how much he has on the line for this, how much he's borrowed and if he would have had margin calls on some of those things. >> reporter: sure. what's your interpretation of near death

>> this is a company that in the markets in the past. >> my take on it was slightly different. >> at certain points it was a tough time but at the same time i think if you were to go back to a lot of the public statements he was making during that time, if you projected a sense of confidence in what was going on that might be different than what was actually going on so when i was listening to him say that now i imagine, and i've already seen it actually online, there are short sellers and others often who have been trying to pick apart things he said in part because they think there is a case to be made that he hasn't been forthright with shareholders. >> how do you know in the future >> reporter: right. >> how do you know in the future if he's not near death again, no

one's going to know. >> what's your take on that? >> reporter: i thought the same thing that you were thinking i don't think there's a case for the short sellers. look, i don't think there is anything nefarious that he was deliberately hiding at that time i think looking back now he says, look, you know, we were within a matter of weeks of what i would call near death. you and i both know that they weren't near death because they were not going to completely collapse they could have gone to the capital markets and the company would have stayed in business. >> phil, he said similar things about he needed -- you know, they couldn't get that launch -- a successful launch with space -- the same thing was close. we were really close to where that would have gone south in some way as well and then they got a successful launch. he's said this a few times. >> a >>. >> reporter: and he has said himself. you should take his comments with a grain of salt those are his own words. you should take his comments with a grain of salt he said that at the annual meeting this year. part of me is like, likook, wha

you get with elon. you have to sit there and listen to it and go, okay, how much is 100% accurate, how much is elon portraying things? >> what's your biggest fault i work too hard. that's one of mine, too. i think my humility is the biggest fault of mine, i think, you know what i mean to always be so humble about it. >> and you're too nice. >> imi work too hard, too humble, too thin all of these things, right >> thanksgiving. it was thanksgiving. >> like the job interview when somebody says, what's your achilles heel? i'm a perfectionist. >> xactly. and i'm too humble about it. i should take more credit for how great i am thanks, phil you, too, phil you should in my opinion okay see ya. coming up when we return, we'll dig into the slide in cryptocurrencies plummeting below $4,000

we'll talk to a bitcoin investor who says the coin has a lot further to fall if you're in the world of crypto your a going to want to hear this. a quick check of what's happening in european markets back in a moment at&t provides edge-to-edge intelligence, covering virtually every part of your finance business. and so if someone tries to breach your firewall in london & you start to panic... don't. because your cto says we've got allies on the outside... ...& security algorithms on the inside... ...& that way you can focus on expanding into eastern europe... ...& that makes the branch managers happy & yes, that's the branch managers happy. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & when this happens you'll know how to quickly react...

welcome back to "squawk box. talk about a tough weekend bitcoin falling below $4,000 for the first time in over a year on sunday went as low as 3,500 bucks before a slight rebound. but our next guest says don't get your hopes up. it could be headed down all over again. he is the founder and partner at morgan creek digital assets. good to have you >> thank you for having me >> you think the carnage is not over >> bitcoin's experienced two previous drawdowns over 80%. we think about 85% from the all-time highs is about where we'll end up probably got a little bit more to fall. >> so my question, though, is -- and let's say it goes down to $3,000 let's say it stays where it is there's been so many people who've lost so much money and this is a belief system. if you really understand it -- by the way, money is a belief

system but this is truly a belief system for those same -- for any of those same people to come back to this in the future, if you ever want it to go back up again, they have to believe all over again and i'm just wondering how many people have just said i can't do this ever again. >> look, i think bitcoin is overvalued so price goes down there's three things to really remember first is, this is a transaction settlement layer it's got to be worth something it's the most secure transaction settlement layer it's the best performing asset class over the last ten years. it's outperformed s&p, dow, et cetera during the longest bull run. it experienced two 80% drops during that time but the s&p is up 400% in that time that was all driven by retail. >> you personally are in at prices lower than this, so you can't to be bullish on this. if you bought in $19,000, i'm not sure you'll go near this for the rest of your life.

>> you may not. >> so where is the incremental new buyer if you've washed out a whole ton of them in the last minute >> joe, if he can figure it out. >> i think -- if it comes down as interest rates are going up with the speculative parts of the stock market, why is it different than any other tulip mania we've seen in the past what differentiates it from that just acting like a crazy bubble tulip. >> it's highly speculative. >> that's what it's acting like, right? we've seen this movie before >> i think through 2017 all of the buyers were retail now what you're seeing in '18 is you're seeing institutions come in one thing that doesn't get talked a lot about is most of these are not buying on these exchanges. they're buying in the market that we don't have great transparency to or insight i think you're seeing the washout of these retail investors. now as fidelity, et cetera -- >> if it costs so much more to

mint these coins, to actually make one than it actually costs to buy them, doesn't that just undermine the entire basis and trust of the system? >> what you're talking about is the cost to produce bitcoin in the mining process it all depends on your energy costs. so there's tears to think about. most of the people in china and these low energy cost locations, they're producing bitcoin for $2,00 $2,000, $3,000 you're seeing people spending $6,500 to create bitcoin they're under water now. >> if it hits $3,000 are you buying more? are you buying more now? >> we've been pressing into it the whole way down. >> from $20,000. >> we've got deep conviction in this >> all the way from $20,000? >> all the way down. >> looking forward to see more of you hear where this is ahead thank you so much. when we come back, market rebound. we will talk about today's big

move in the futures with citi chief u.s. equity strategist tobias levkovich and then fanatics chairman michael rubin is here. he's also part owner of the philadelphia 76ers "squawk box" will be right back. ♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud.

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green arrows around the world, but is this rally for real >> a "squawk box" house call fda commissioner dr. scott gottlieb will join us on set and he is ready to answer all our questions. everything from drug prices to vaping to the safety of romaine lettuce. plus we're going to introduce you to an under the

radar company that's getting a big endorsement investment from softbank why you might want to put coupang on the list. as the second hour of "squawk box" begins right now. live from the beating heart of business, new york, this is "squawk box. >> good morning. welcome back to "squawk box" here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. happy thanksgiving, everybody. hope you had a great weekend we're watching three big stories. one, the dow set for triple digit rise at the open we'll see if it does would follow the worst thanksgiving week since 2011 two, the holiday shopping season is officially open for business. consumers spent a record $6.2 billion on black friday online but foot traffic was down compared to last years and three, a major midwest

snowstorm on one of the busiest travel days of the year. >> yes, that was pretty notable in the -- we didn't see it here. we just said, more rain, more rain making headlines, kor lcarlos gn is out at mitsubishi motors. ghosn has denied the charges against him. but it's a real number we talked about this you know, over-pay yourself a little bit, do a couple of things here. but it was a hundred million, right? >> they were saying it was deferred compensation. his defense, i guess, was saying it's deferred compensation so he didn't have to report it under some of these things >> it really did add up. a hundred million, i might have a problem with that. you can get away with what do you think? $10 million? i mean, all those guys, right? but a hundred, that'll get the attention of people.

tesla ceo elon musk says the automaker was close to collapse earlier this year. he told axios they were bleeding money like crazy and was within single digit weeks of death due to the cost of ramping up model 3 production and he wants to go to mars i'm staying. definitely anyway, i've seen what happens up there eating potatoes you grow in poop i'm not going up >> there's a chance you would die if you go. >> i still like it here pretty good i mean, right? is there a golf course on mars >> there's not not that i've heard. >> i'll play any course. >> it's like a big sand trap >> play a par 3. but there's nothing up there, right? >> i don't think the greens roll up there >> on the moon they tried to play a little. >> did you see russia is going to go to make sure we were really there to verify whether we actually went to the moon >> fact checkers. >> yeah. fact checkers. anyway, president trump is dismissing reports he's upset

with steven mnuchin. "the wall street journal" had reported that the president blames mnuchin for the hiring of fed chairman jerome powell with the fed subsequently implementing several rate hikes. he's also reportedly upset with mnuchin over recent stock market turbulence the president tweeted he was happy and proud of the job being done by mnuchin. he called it fake news but i've seen it in a couple of different places not just "the new york times." but "the wall street journal" as well >> and a lot of it tied back to his choice for fed for the chair. let's talk about today's stocks to watch too. one stock to watch, campbell soup is near a deal with activist investor dan loeb to end a bitter proxy fight campbell will add two of third point's nominees to the board and give the hedge fund a say in naming its next ceo. that settlement if it comes will be just days before campbell's annual shareholder meeting loeb's third point had been pushing for five of its members,

directors to be nominated to the board. also, we're watching oil prices this morning. take a look right now and you'll see that oil is up wti up by just over 1.1% but still sitting at $50.99 a barrel dom chu joins us with more this has been a big slide we've been watching rapidly. >> it's a big slide and many dynamics over the last couple of months the idea you could have market catalyst to the downside and oil could be one of them this morning two of the biggest moves to the upside, probably the idea you have european banks up on this idea that italy could be getting some kind of a deal done for its budget that could be palatable to the populist government there as well as what's happening with the european union it's why european bids are higher also that buying the dip of oil. it's not happening pervasively right now, but there is a sense out there some investors are trying to find some deep value there's a reason why if you take a look at the crude

oil sector, every stock within the s&p 500 energy sector was lower last week. it makes sense the market was lower all of last week as well but every stock in the sector now is pulled back by at least 10% from its recent highs which has put every stock into some kind of a value buying list if there is any kind of a case to be made for buying oil it is also the worst performing sector so far this quarter so just since the end of september. it begs the question are there opportunities to be had. there are two places right now within the oil market that are getting a lot more attention from an industry point of view and that is what's going to happen with oil services which have been crushed a lot more than exploration companies even if the oil prices have slid more oil companies see more perhaps levered with capital expenditures for the oil patch as well. and then the other place to look at right now is the oil majors specifically within the dow

components chevron and exxon these stocks have underperformed no surprise there. given the drop in oil prices you can see chevy von down about 9% exxon down by about the same amount as well the price declines have put dividend yields for these two stocks in attractive range chevron is yielding 5.9% both of them are in excess of what 10-year treasury yields are. obviously dividend health is in question right now because you wonder whether or not you can sustain the dividend but there is a sense the oil slide has eaten enough into the oil majors to put that dividend in question. but if there is a case to be made, it's whether oil has slipped far enough you'll see strategists maybe start looking at oil as being on those buy lists, those shopping lists. because they follow them so much and the dynamics there are relatively healthy at least for the big ones out there

>> a lot of these companies are not going to be investing a lot of money that you would have expected a month ago >> right but that's -- so that might affect, say, small and mid-market oil companies much more especially those ones that are levered towards motorbike leverage loans to finance much of their operations. if that is the case, that might be where you start to see the stresses happen. just in the last five years, we've seen that happen at least once before. oil prices have fallen by enough it's put some stress on lending markets tied either to the lowest or lower credit grade or credit qualities within that oil and gas patch out there. >> stay right here let's talk more about this joining us now is tobias levkovich. you hear the case for oil. do you think oil is actually a leading economic indicator in this point that is telling us there's problems with demand around the world and that's a sign of what's to come next year >> there are two or three elements in there. first of all, once you're

closing around the $50 area and they've already been having problems you know, let's put that element, the price of oil will determine what's going to happen in terms of emp activity number two is the idea of the iran deal and the exemptions not expected by the market 37 and lastly, there has been sluggish demand but primarily out of non-u.s. market places that has been the incremental driver for more. the lower price is a clearing mechanism, is it good for consumers? yes. is it bad for texas economy? yes. it's a bit of a push either way. >> the weird thing about that is demand, the picture has been weak in areas but not in the united states. we had an analyst on earlier

this morning on "worldwide exchange" and he made a pretty big call he is taking down his weighting on u.s. equities taking it to underweight at the same time, he is double upgrading his view on other stock markets. equities around the globe where he's now saying he's overweight on those situations from an underweight situation. is that something that you agree with >> our global view is emerging markets has some opportunity as well you know, u.s. has been a bit of a safe haven in the market relative to the world. the economy is stronger here we got the buyback activity here we've got a stronger economy here all those are very important dynamics what i would suggest to any investor is look at the dollar if you have a strong view on the dollar going higher, u.s. tends to outperform everywhere in the world. as money gets strong here. now, i'll come back to that in a second what's strange is that the

absolute level of the market is not tied to the dollar there are periods where the dollar is strong and the equity market goes up and there are periods where it's weak and the u.s. equity goes up our view as a furm irm is the da will move up modestly from here. >> meaning the fed is likely to moderate its fed hikes we continue to raise rates and others can't keep up with that >> so the other central banks are kind of moving even the eu which is viewed as the most dovish. they've indicated they're going to reduce their activity so it's a relative move argument, not just we raise rates alone. and that's been the most important dynamic. if you look over time, just look at the difference within the 10-year treasury yields in the bund and germany and look at the dollar/euro. you have that relationship

consistent over 20, 30 years we can't look at them moving in a vacuum again, i'm not going to make the strong dollar call it's not my -- you know, it's not my view. but the idea of if you believe the dollar is going to get meaningfully stronger because you're worried about crisis, trade wars, you know, those kind of things or the u.s. economy doing that much better, then the u.s. market will tend to outperform that's not really our view >> all of that is subtleties what would you tell people to do right now? people having seen not only the devastation in their portfolios from the month of october but watching this kind of pile on. >> now it's giving us a signal

of the 90% probability of an up market with this correction, we've seen a significant change in sentiment and implications to the market number two, there's been a lot of pain in the faang world and the tech world we've been arguing over for a long time. we're finally starting to see that happen. people were chasing the momentum of the stocks opposed to necessary fundamentals the momentum of the stocks are carrying them beyond where they should have gone and number three, you're in an environment where there is inflation, higher rates. yes, have a higher quality balance sheet portfolio. probably a better place to be today. doesn't mean buy everything and the term quality is one that's very iffy. >> is that a hillary clinton election 90%? or is that -- what kind of 90% is that 90%? can i put my -- can i bank on

that 90% 90% that stocks go up? >> 90% probability >> well, 90%, doesn't that make you feel better? >> makes me feel better. this also speaks to the idea that investors are looking for a reason to buy this market. if the sentiment -- >> that would give me reason as long as it's not that other 90%. >> just keep this statistic in mind i tell people you got to understand the numbers 78% of the time the market goes up >> yeah, it does >> because we grow earnings, grow the economy what we're looking at are -- with when we got that signal in september, there was a lot of pushback >> do you think that people sat around the thanksgiving table this year and said, like, we should all get out of the market now because it's a disaster? >> or stocks are really cheap? >> or do you think people sat around saying stocks are really cheap? i happen to think retailers are much more anxious and sitting around the table going, oh, my,

what's going on? what do we do? do you know what i mean? >> considering that 50% of americans don't own any stock, you already have half the people who are talking about that they're probably talking about football >> all right take them off the list. >> also the other 50%, i would probably say half of them never talk about stocks either we live in a bit of a bubble in our world and we talk to each other. yeah, we talk stocks all day long but the average person doesn't stocks never came up at thanksgiving for me. >> we didn't stotalk stocks at l at our thanksgiving. >> will there be a justin thomas/jordan spieth something like that? did it work? >> it worked because it was tiger and phil i'm not sure right now -- >> i'm not sure it worked at all. >> they're not making any money on it. >> they're going to refund all kinds of money for the pay per view, right? i was one of those folks who got home late, started streaming it

and it was for free. but you're a comcast customer, right? >> i certainly am. proud comcast customer >> you're going to get a refund. >> but all of the things this was supposed to do, supposed to change the way people -- other sports leagues were looking at whether betting was working, putting mikes on everything. >> but i think those worked. those things worked. the logistics for pay per view worked and to watch the realtime betting lines move based upon what's happening -- >> and it's going to charity and these guys can afford it. >> they got viewership out of it they got viewership that wasn't die hard golfers >> never seen tiger putt so bad. >> justin thomas had a great tweet midway through that front nine he said phil would be up six holes right now if he could get a hot putter >> phil was leaving them shot. like that putt you just looked at right there and he was so nervous on the final putt did you see that i've never seen phil so nervous

for it because it was a $9 million putt it was cool though there was one tiger would have had to make a five or six footer phil said i don't want to win this way pick it up there were some neat things that happened anyway, coming up -- 20 bucks. within a half hour, i had my money back >> better than my $20 -- >> i was just watching barkley he's a nut anyway, the monday after thanksgiving is traditionally a big day for online shopping. we'll talk about with the executive chairman of fanatics stay tuned you're watching "squawk box" on cnbc xfinity mobile is a new wireless network

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things >> like the ugly sweater with the lights on it i thought you'd look good in it. >> no. there are some high end things now you can get from the nfl right? i thought about christmas. >> we have a million skus we sell fanatics. and from the most entry level t-shirt to the highest end sweater to an arcade game to a couch. the point is to have the most broad assortment so any fan can get anything they want >> business has never been better you were right about the nfl it's one of -- you know, there are some other things working on tv >> i appreciate you acknowledging that >> there are some other things on tv works. but nfl is working >> our business this year, i looked a the numbers this morning. we're up for thanksgiving weekend 25%. sales are incredible but nfl is actually outperforming that so nfl has been great. >> i want to know about the customer acquisition costs right now in this environment. is it social media for you

you have probably a lot of people googling certain teams and things and finding you there. i assume you're paying google for that too >> our marketing costs continue to get more efficient each year. what's different this year from previous years is paid social media is really working. so that's a double digit percentage of our revenue this year last year it was very small. >> what's the budget look like in terms of how you divvy up the money between facebook and instagram versus twitter versus google versus -- >> so if i keep it real, i'd say the two big expenses would be facebook and google. i'd say -- >> instagram, nothing? >> growing quickly, but still relatively small >> snap nothing? >> very, very small. >> and twitter is nothing? >> correct what's interesting is two years ago it was mostly google and little facebook. now facebook is as big as google both are performing well

it's diversified the split between the two. >> let me ask you. the stocks of all the broadcasters, the companies that actually have the rights to broadcast nfl right now were hit recently on a report that amazon is going to be getting into the bidding to try to buy more sports rights and the sports networks >> yeah. >> does it matter to you if the nfl is actually broadcast or if it was done exclusively on an amazon or another website? >> so i've been firm for the last several years that my thesis is traditionally you've had five broadcasters bid for rights say you've gone from five guys to ten guys for the rights i think amazon's done a great job with the package that's been their test everything i'm hearing is they're really excited about how they can grow the nfl. i'm hearing the same things out of some of the other big digital media companies. as we look forward when the new tv deals come up, i think you'll see them be a major player for those rights they're never going to go away

>> how does it matter just from the viewer experience? >> it matters for us we're a big proponent of the more distribution, the more games that get out there, the better it is what we really want is the games distributed to as many people as possible that's how you really get more fans so a digital platform around the world will get you more fans >> what do you describe as integrated retail? if google starts broadcasting football, could be great for you in some ways but could be more complicated for you in other ways >> i think it's only great for us most of what we sell -- and you have to keep reminding yourself most of what we sell, it's exclusive to us. and if you go to amazon, they tell you you can't find 90% of what we sell at amazon because it's exclusive to our sites online >> why wouldn't they eventually get into the bidding rights for your rights too. >> our business is so complicated, it's so complicated. >> i love you but that's what

people used to say about these other businesses they'd say we're specialized we do tv amazon says we don't care. we can buy that. >> so look we believe that digital companies are going to be great for us sell more merchandising and we believe what we do is very complicated we have warehouses all through the world. we have manufacturing all through the world. we have -- again, just a complicated one. >> go ahead. >> they're playing us out. i just need to ask you who -- 14-8 now you're doing well. the 76ers. who are you afraid of right now? who's the other teams that worry you? >> i'm a very paranoid individual, so i'd be afraid of the other 29 teams by the way, we showed that when we lost against the cavs on friday night i said that i was joke with the guys before the game, we haven't lost at home since march of last year and the cavs have the worst record in the nba. what happened? the cavs look at us like it's

our super bowl they play up to us >> i don't have a team i like the 76ers and bucks too you're closer. you have an advantage with me. >> you keep trying to show your loyalty then take it back away we need you to get a sixers tattoo to show yr oureal loyalty to us. >> michael rubin

. coming up, dr. scott gottlieb making a "squawk" house

call we'll ask him about romaine lettuce when we come back. takes things to the next level with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails. can i get his email address? oh... i don't feel comfortable sharing it. buy the latest iphone, get iphone xr on us, and get the unlimited plan and the best of entertainment. more for your thing. that's our thing.

♪ good morning welcome back to "squawk box" here on cnbc we're lye at the nasdaq market site in times square homeowners, they are pulling cash out of their houses in record numbers

this is according to to numbers provided by freddie mac. $14.6 billion was withdrawn in the quarter. 80% in the quarter used a cashout option where they trade their old mortgage for a new one with a higher balance. they then pay off the old one, pocket the cash difference by the way, in terms of where we are in the cycle, we're now at the highest level we have been since 2007 so if you're trying to measure things and measure up in terms of where we are, cashouts not typically a good thing in the long-term. also, two sequels topping the weekend box office "ralph breaks the internet" finished firth over the thanksgiving holiday weekend the movie is the follow-up to "wreck it ralph. "creed ii" collected $55 million. we are in the green after a very difficult week last week we look like we'll be up 139

points on the dow. >> you see "green book" yet? >> i have not. >> i saw it. >> good? >> fantastic phenomenal it's universal picture too yeah it's getting a lot of accolades. it was really good all right. let's get to our news maker of the hour food and drug administration commissioner dr. scott gottlieb who is here with us on set today. great to see you thank you for being here >> thanks a lot. >> first want to ask you about the romaine lettuce recall nobody ate salad because all of the romaine lettuce was recalled it was unprecedented do you have any better idea of what happened or where the breakdown occurred >> yeah. it was a tough time taking that action before the holiday. we've isolated it to california. we'll have an announcement later in the region in california we think it's coming from and we're also going to make an announcement today we've struck with the industry to label all future romaine for where it's grown and the date in which it

was harvested. i think that'll help cut down on these broad recalls and withdraws. >> is the industry on board with it given what they just went through? where every bit of romaine got thrown away throughout the entire country >> that's a good part of it, i think. recognizing we had to do this broad type of market withdrawal. at this point in time all the romaine on the market is from california that was the only region that's harvesting florida is going to look to harvest. and without packaging that says when they were harvested and where from, it might be hard for them to re-enter the market. putting that on the packages will be able to restock the market >> can you pinpoint down even within california where it's coming from? >> we think we have. we think we know the region where it's coming from what we're doing is tracing back isolated cases, individual people, not clusters right now sometimes that's less reliable i think by later today, we'll be able to announce the region within california. but most of that product is now off the market

california already harvested that was the product on the market that's the product that's been withdrawn. now the market is going to be restocked with product coming online probably from florida and yuma different regions. >> this is something a long time coming these people were getting sick the beginning of october is there a way to fast track the process and pinpoint more quickly? >> this was quick. if you remember last december, we didn't say it was romaine canadians did. we found out so late, the product was out of the market. while we issued the advice before the holidays is because we were earlier in the process so we were able to actually affect more people becoming impacted so we're getting better at this. but i think having information on the labeling that's going to identify where the product's from is going to make it easier to pull it off the market. >> do wuf the right laws in place for this there have been debates about clean water in places, things like that. >> we're putting in place agricultural water rules we don't have all the tools to

do effective track and trace in the system we have a guy starting today, the former head of food and safety at walmart coming to fda to help us put in place better track and trace. using tools like blockchain, maybe, to do tracing >> commissioner gottlieb, just last week the fda made some announcements about different rules for medical devices. different safety rules and guidelines going forward makes a lot of sense because when you recall a medical device, it's a lot harder than a car recall this is something that's implanted in someone's body. what are these new rules, what's the point? >> well, last week we announced new rules around safety. new efforts we're making around trying to ensure safety. active surveillance of medical devices in the marketplace and, you know, declared that fda and the u.s. should be the first regulatory agency to be able to spot a safety signal today we're making an announcement about a significant modernization about the device approval process a lot of devices come to market

by basically demonstrating they're equivalent to an existing device. but the devices they're comparing to a device that sometimes is many decades old. what we're saying now is we're making it easier to have new predicates we're also looking to retire some of the older predicates some companies have been using as a basis for their approval. >> are these predicates no longer on the market >> sometimes when the law was put in place in 1976, congress froze all the existing devices and said these devices are currently on the market to serve as predicates for future approvals that's more than 40 years ago. >> that's been completely changed. >> what we want to do is constantly try to push the market in the direction of incorporating better technology, better cape accounts and always looking forward so that the sort of compliment of predicates that device companies are using for approvals are constantly incorporating newer technology to make the devices better and safer. >> i'm trying to think to the

downside of doing something like that is the risk you're dealing with predicates that don't have a long history in the market don't have, let's say, a decades' worth of experience or a decade's worth of advice >> if you're looking at a predicate that's been on the market for ten years, that's a lot of experience. the concern is going to be on the side of the industry where they say all of the products on the market got to the market by comparing themselves to older devices. might have been easier now it's going to be harder for us there's going to be concern it could be raising the standards for approval making it harder. i don't see it that way. if you're bringing a new technology to the market place and you compare yourself to a technology that has more market capabilities, you'll come with a better label and it's going to make you more competitive. that more closely approximates what your device is doing. we have x-ray equipment coming to market that has capabilities. they're still compares

themselves to an x-ray machine in 1980 that emitted a lot more radiation. >> let's talk about drug prices. it's been a huge focus for the president and you too. pfizer came out and said it's going back to raising prices in 2019 that's ian reed kind of signalled that in the latest conference call that he held we saw drug prices kind of hold steady, pfizer in particular, saying they would not raise drug prices while they were kind of negotiating with the administration and president about what to do going forward what do you think happens? is this something that can be addressed? sit going to be a problem? >> well, if you look at what's actually happening in the marketplace across the board, the overall rate of inflation in the drug sector, the branded drug sector has been largely flat so drug prices overall have flattened out. obviously some individual companies are taking price increases on selected products, but a lot of the generic competition in the market is depressing the overall

inflation. prices haven't come down you haven't seen price cuts, but you haven't seen the kind of inflation overall across the market that we're seeing year over year. >> last week "the wall street journal" had an op-ed directly tied to things you've been doing at the fda in terms of allowing new competition, making it easier for for new competition to come in they say you've saved billions of dollars by doing that >> well, we've increased the rate of generic entry into the marketplace. "the wall street journal" commented on a study done by the council of economic advisers kevin hassett's team at the white house. i think they estimated that we've increased the number of je anywheric approvals on a monthly basis by 18% saving $26 billion so the pace of generic approvals has gone up. that's had some impact on the overall spending on drugs. >> i have two questions. one relating back to pfizer. a talking to about the president

about freezing prices through the end of this year how much do you think that actually had an impact on the freeze and the decision to then raise them afterwards? >> i'm just not privy to those discussions. >> do you think it had anything to do with the midterms? >> i haven't been involved in those discussions. i don't know what the interview is calculating >> and the other report in "the wall street journal" last week was the report of a tie up in terms of equity stakes between walgreens and humana and how you think about transactions like that >> i think when you look at what's happening we the vertical integration in the marketplace, the whole idea of the middle man is they get paid to the pbm and then passes onto the health plan now they're going to be planned by the health plan that rebate scheme is going to look different you're effectively going to be rebating to yourself my experience in health care generally is vertical integration hasn't worked out well we'll see if it works out better for these guys >> will it work out for the customer though? >> remains to be seen. i think some of the

consolidation in the marketplace, sometimes it's provides new to customers but creates fewer choices and less competition. all health care is local, remember if you get rid of local competition in health care, you can drive up local prices a lot. >> when you read a headline like that, do you go, i wish they weren't doing that or this is what needs to happen? >> hard for me to judge how that's going to affect what i'm focusing on. some sectors i've worked in has had some adverse effect. drug manufacturing which i think contributes to some of the problems we see with drug shortages. >> interesting >> scott, watching what you've done with the agency and your twitter feed and own pet projects, things you try to shed light on over the weekend, you tweeted a strain that was the mother of a cancer -- a child with cancer talking about how her child had been exposed to measles by simply going grocery shoppingo something. and her message was one kind of a plea for parents to vaccinate

their children what happens when you don't. how important is it for vaccination? how much of a pet project is this for you >> it's not a pet project. this is a public health mandate for the agency and the cdc and the government more generally. vaccination rates have come down if you're look at what's happening now, vaccination rates among the flu vaccine is coming down a little bit. and this is a real problem i think people are becoming fearful of vaccinating children based on information that i don't think is accurate. if you look at some of the data around childhood vaccinations, these are some of the most carefully studied products on the market and the link between the mmr vaccine and protthat they could cause problems that's one of the most studied questions in modern history. i think it's been thoroughly debunked so people should have confidence in these products. that doesn't mean they're risk free

there are risks associated with any product, but it weighs heavily in the direction of vaccinating your children. >> measles outbreak, i know it's in new jersey and other places subpoe is there recent incidences >> there are this is highlycontagious one of the most contagious infectious diseases. and it was mostly eradicated if you don't vaccinate a certain amount in a community, you create the situation in which that could spread and you have a local epidemic that's what we're seeing in certain communities. you know, a lot of times it's a community where people should know better and they're making a conscious decision not to vaccinate. >> all right what can the fda do about that >> i think we can continue to talk about what we do which is look at the safety of these products and try to reassure the public when there were questions among the mmwr vaccine even though the science was shaky, we invested

tens of millions of dollars to study that to thoroughly debunk that question i think that was an important exercise to give people confidence but we did that. we have that information and people still aren't acting on it. they're still not thoroughly reassured. i think because a lot of folks are too cavalier in problem gating these conspiracy types of theories these are associated with risks that they're not. >> thank you so much for coming in today we always appreciate seeing you. dr. scott gottlieb, commissioner of the food and drug administration >> coming up, most u.s. investors probably never heard of coupang, but it's one of softbank's most high profile investments of 2018. the ceo will join us next.

welcome back to "squawk box. retail start-up coupang is looking to dominate south korea's booming e-commerce market now with a new round of funding from softbank's vision fund. i want to introduce everybody to him from "squawk" last year. bom kim. the founder of coupang i think this is a company that's probably going to end up in a place like nasdaq one of these days thank you for being here >> thanks for having me. >> you just got a big

investment this is your first tv interview talking about it money from softbank. what are you doing with it >> we made enormous investments in the last years. supply chain payment data. search and discovery and we are now in a position to leverage these technology investments and make our customer experience a hundred times better and it's excited because we're just scratching the surface. >> would you ever expand outside of south korea having been there and seen what's going on, it's like you can't buy anything without this company. i don't know if it's a -- i don't want to call it a monopoly but literally, one out of every two diapers in this country sold by this company. would you ever expand outside of south korea? >> the constraints we're solving for are shared by a lot of markets in asia, but korea is one of the largest and fastest growing markets in the world it's the fifth largest e-commerce market in the world

today. it's on pace to be the third largest e-commerce market in the world in three years just behind china and the u.s. so there's a lot of opportunity in the home market and we're focused on the home market today. >> how often do you get calls either from jeff bezos or walmart? >> no, i -- you know, i can't -- we're not talking with either of those parties. >> would you think of selling the company? >> no. we have such a long-term vision for the company. we're in a position now to expand i mean, we've rolled out numerous services over the last six months a the rate of innovation is accelerating approaching $5 billion in revenue this year. that's 14 times what it was in 2014 as our scale has gotten bigger, the rate of growth has accelerated. we're about to exit the year at 7% year over year growth so this is an exciting time. we have all the plans in the world right now to keep investing where we're investing.

>> tell us about the new technology you're investing. one thing amazing is when they actually -- it's all end to end. i'm sorry to -- i'm telling the story. they do the delivery too so when they deliver the product, they know who you are and they actually talk to you. there's little notes in the system to say things to you. >> that's right. we've invested not only in the fulfillment space which many people are familiar with in e-commerce we built three soccer fields worth of fulfillment centers we built out our own logistics especially a u.p.s. for e-commerce and that allows us to customize and personalize it for our customers. >> that's expensive. >> very expensive. >> again, this is infrastructure people think that just because you have a pure marketplace doesn't mean that those physical goods aren't being handled by someone. so they're being handled whether it's by us or another third party. if you have an integrated platform which integrates all the way from the customer's mobile phone experience to the

customer's door and you can build economies to scale and leverage technology, the efficiency can be much better. >> i got to ask you because you did just take money from softbank and there are questions about softbank given that it's backed in large part by saudi arabia did you have any concerns about that given all of the news >> this is not the first investment we've taken from softbank they invested a billion dollars with us in 2015. we've seen the power of the billion dollars to change customers' lives we now have millions of customers who are purchasing over 50 times a year in part because of the partnership with that investment. we're really excited about the $2 billion now that we're receiving and the power of that to continue to change customers' lives. >> you've got to tell us about one of your first early investors. bill ackman. how did he become an investor in this thing >> bill was an early investor. you know, he believed in the vision that we had and we have, again, a long-term

vision to have a profound impact on customers' lives. we're very fortunate to have a large group of long-term investors. >> bill says this is like one of his best investments didn't even realize when he did it you had just been finished running that magazine, right >> that's right. i was in business school at the time i was dropping out after my first year approached bill among other investors. i moon, we have along with softbank we have t. roe, wellington, blackrock. we've been fortunate enough to get a lot of investors >> good luck i'm sure we'll see more of you thank you. >> thank you for having me this morning we have the morning's stocks to watch. before we head to break, take a look at the equities dow up by 243 points you are watching "squawk box" on cnbc alpha seems more elusive today.

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at an attractive entry point even if earnings drop to the worst case scenario. and cleveland cliffs, the shares are rising this morning. the iron ore mining company announced a stock buyback program. it's up 17%. that's 2%. coming up when we return, president trump is backing steve mnuchin denying comments he's unhappy with his performance u'ay tuned yore watching "squawk box" on cnbc a big hour ahead we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

and then, more jobs robegan to appear.. what started with one job spread all around. because each job in energy

creates many more in this town. signs of life from stocks. we've got green arrows ahead of the open but we're still a long way from clawing back last week's losses. cyber celebration. we are eight hours into cyber monday and shoppers are already shelling out big time. and should mark zuckerberg be the chair of facebook we're going to introduce you to a big investor who's questioning leadership at the social media giant. the final hour of "squawk box" begins right now live from the most powerful city in the world, new york, this is "squawk box. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin

the futures this morning are solidly higher so far up 237 on the dow earlier the nasdaq was down more than a hundred it's up 97 right now and the s&p is indicated up about 26 or so this comes after a pretty rough week for the bulls last week there is the 10-year note now 3.06% is next month december it is, right >> yes, it is. jobs report. >> and the holidays. >> and the holidays. >> and the fed they're supposed to do it again, right? >> well, is it going to be one and slow down? or one we are data dependent >> it is definitely going to be one, isn't it? >> it is it's baked in. if they don't, it would almost disarm the market what do they know that we don't >> exactly we are watching three big stories this morning one, green on wall street. after the worst thanksgiving week for the major indexes in seven years, we are pointing to a strongly positive open for stocks today two, consumers adding online for cyber monday as a weekend of shopping wraps up.

web sales on black friday broke records this year at $6.2 billion. though foot traffic in physical stores decreased and three, holiday travel nightmare. a major storm across the midwest canceling flights on a key day for airline passengers and other travelers. >> everybody's trying to get home or something. >> hmohamed el-erian is one of them he's supposed to be here tomorrow we'll see. he flies coach. >> he says that. >> he does >> well, if he does -- he doesn't need to. >> but he does >> have you googled a couple of the -- >> you know, i like him too much >> i thought you hated ceo huge compensation and stuff because of the income inequality you don't -- >> i do. i do >> it's okay for him to have raked in that kind of -- >> not a public traded company >> okay. but does anyone need that much >> no, they don't.

>> i know. hence my pushing for the wealth tax. the 90% wealth tax >> good for you. here are some of the stories investors are going to be talking about. general motors planning a major announcement today that's according to canadian union officials. they've been quoted by reuters the union says the news could involve is shutdown of a major gm assembly plant in the province of ontario. campbell soup is close to a deal with third point they would add two third point nominees to campbell's board of directors. although the source says the deal has not been finalized yet. and golf fans who shelled out $20 each to watch tiger woods and phil mickelson battle it out getting somewhat of a mulligan at&t, comcast, charter communications, and dish networks are among cable and satellite providers who will give refunds to fans who paid to

watch friday's match it comes after a technical glitch with at&t live streaming service where a lot of people got it free. prompted at&t to offer the match for free and that caused complaints from others who had paid to see that some people didn't see it that paid for it. some did >> who is really going to pay? is at&t going to have to pay out everybody else for the messup? if comcast is going to refund the money, is it really on cam cast or does it charge back all the way to at&t? >> i'm not sure how that's going to work. i will tell you that the winner was shadow creek, i think. you didn't get to see that >> i didn't get to see it. but i read everything about it >> i've never seen -- i've known about it since steve wynn built it but watching it -- they cut it right out of the desert. they moved earth to make every mound, every bunker. i mean, there was nothing there and it turned into this shangri-la really cool. >> go phil.

>> yeah. he looked good president trump coming out and publicly backing one of his original cabinet members eamon javers joins us now with more eamon? >> yeah. good morning, andrew treasury secretary steve mnuchin is the man who is now being backed by the president. this coming after a report in "the wall street journal" over the long thanksgiving weekend that said the president had soured on steven mnuchin as he has so often on other aides and cabinet members during the course of his administration "the wall street journal" suggesting that the president had soured on him because of the stock market's performance suggesting that if mnuchin was so good, the stock market wouldn't be as flat as it is the president responding on twitter. here's what he wrote over the weekend backing mnuchin saying i am extremely happy and proud of the job being done by u.s. treasury secretary steven mnuchin. the fake news likes to write stories to the contrary quoting phony sources or jealous people. but they aren't true they never like to ask me for a quote, because it will kill their story.

"the wall street journal" we should say responded to that over the weekend as well and noted they requested comment from the white house several times in the preparation of their story. so we'll see where that goes on this week in which the president is going to be going to the g20 in argentina where he's going to be negotiating with the chinese. mnuchin, a key player in all of that as well this week and a reminder for the president over the weekend if he was watching the sunday shows, of some of the difficulty he's going to face now with democrats in power up on capitol hill. adam schiff, the incoming presumed leader of the intelligence committee on capitol hill suggesting that the president is not handling the relationship between the united states and saudi arabia appropriately. here's what schiff had to say over the weekend >> the president -- it's one thing if the president were leveling with the american people and saying, okay, this is what happens this is what we know this is what took place. but nonetheless we need to

maintain a relationship with the kingdom. but that's not what he's doing and i just think that it causes our standing in the world to plummet. it telegraphs to despits around the world they can do what they want as long as they do business with him potentially. >> empowered democrats up on capitol hill investigating and questions this president each step of the way. that's not something that president trump has had to deal with in his first two years in office next year could be a very different look for this administration back over to you >> okay. eamon javers one question on the steve mnuchin back and forth there have been instances, of course, where there have been reports about somebody that was supposedly in or out of favor with the president the president then would go on twitter, say how much he loves that person. and then, you know, a week or two later, it would be clear

that they really weren't in good graces what do you see here >> the president says he'll back the person in the press even though that person is out of favor. it gets kind of busineyzantine this administration from time to time thiswobbliness in mnuchin, i have no reason to question "the wall street journal" on it that gives you pause going to the g20 this week of whether or not the president is reconsidering his approach on china. the two things the journal reports that the president is frustrated about is the stock market performance and the other is the fed and jay powell or and mnuchin for suggesting jay powell you wonder if the president is looking for somebody to blame here >> it also raises the question that if you're sitting in beijing this morning trying to understand all this and who you're going to be negotiating

with over the weekend, who you should be pressing who you should be trying to befriend, that's where it gets complicated. >> right presumably folks in beijing looking at this administration saw mnuchin as somebody that they could do business with somebody who was sort of a global business leader, had an experience around the world before this administration and now they look at this and say, sort of scratch their heads and say who's the guy. >> is there somebody in the white house on the other side of mnuchin who's trying to undermine him? >> i guarantee you there's somebody else in the white house trying to undermine him. absolutely, yes. this white house has been the classic team of rivals times a million. this is a white house in which people have different ideas how to proceeds. and they work across purposes all the time you could be seeing that this week as well >> eamon javers in washington. good to see you. >> thanks. will we see investors

panicking? our guest is from strategas. when you tell trenert that you're bearish, it sounds like the white house. are there people arguing at strategas. but trenert must not like what you're telling him he didn't tell us anything of what you're saying >> i think we need to separate from the strategic call. one thing i'm uncomfortable about is we haven't seen that clear sign of panic that presents itself. >> jason was just on he's very bullish. you say in the quarter, it's going to hit there it's down 15%. that's in stark contrast to what jason told us last week. >> it's about five or six lower from here. we put in the likelihood of -- >> so you disagree with him. >> yeah. >> you can admit that. he's not going to fire you for this he could be like mnuchin or powell we just don't know how trenert feels about you right now. >> my guess is jason's not going

to tweet it. >> he won't tweet it and who knows if he'd actually verbalize it but we know president trump -- there's not a whole lot of unspoken thoughts. i can just hear him saying where'd we get this powell character? you know, mnuchin, he said -- exactly. i can just hear it and then, you know, it's like wildfire it's like throwing a match into tinder we need more panic in your view. we're down nine on the -- >> we're down nine from the high >> and you're looking for down 15 that's not a bear market. >> that's not a bear market. but what we need to remember is most stocks have seen a lot of damage over the last three, four months it takes time to repair that damage one characteristic of a low is almost always a put spike in volume we haven't seen that yet that can come quickly, but it's necessary to putting in a bottom i think the other thing we really need to see is the leadership around this market shift. perhaps the silver lining is some of the laggards have started to act better. home builders quietly

outperforming. em even hasn't been the center of this weakness i think those are the type of groups that probably need to carry the flag of leadership going forward. >> so it's not going to be technology it's not going to be the faang names that have suffered so much and are slightly starting to come back a little >> i think it's difficult to say we're on the prep sis of the advance higher if it's the leadership we need the home builders, em to carry the flag moving forward. >> so it's just going to be a malaise into next year do you expect a rebound move to 2750 in the meantime before we go to 2450 >> sure. i think it's likely you rally here the next three weeks. you want matly we need a good flush here 37 we're missing that moment that hasn't presented itself >> cramer is very suspicious of

this rebound from last week. there's nothing to attribute it to there's no foundation for this >> we're going to let price dictate that for us. what we tend to see on good advances, advancing stocks overwhelm declining stocks that hasn't happened on these other rallies over the last month or so. one of the great indicators we've ever looked at, when you have about half of the market making a one-month high, that's a very good sign you're on the verge of a very long move. we haven't gotten that signal over the last couple weeks so look for the number of stocks making a one-month high above 50%. look for advancing stocks, overwhelming declining stocks. those would be the signs that frankly we're wrong and this is off to the races we haven't seen it yet >> where would -- what would the high in the vix be between now and then, do you think or is it -- >> you know what's interesting about these corrective moves, they tend to come with a bang and then a wimper. i think you can look back to mid-october and say maybe we had

the bang i want to see a lower low with lower vix. i want to see a lower low on the s&p with fewer stocks breaking down that's auchboften what presents itself on the bottom >> all right and we will know panic from what indicator? >> i think the put call data is among the most timely we want. we want days where put volume spikes we haven't seen it yet and now you can argue that maybe market structure has changed but ultimate every good bottom -- we've looked at this data back 40 years that hasn't presented itself yet. >> you're a technician but do you think this puts the fed on hold? or does it moderate the rise in the yield on the 10-year >> let's talk about this from a price standpoint we've seen 2-year yields go from

3% back. so the market is suggestive there is some reconsideration at the fed. i think maybe the 2-year yield is the most important in the world. so we want to look at every major draw down. yields go down, not up what the bond market says here is going to be important in how the outlook evolves going forward. >> do you know robert varone >> not related i don't know him, no >> i just wondered i think it's spelled the same. anyway, thanks, chris varone i mean, thought i might hear from trenert this guy's full of beans or something but he didn't. >> not his style. >> no. not his style. but i'm going to ask him next time >> please do >> really? you want me to >> sure. >> i think you're safe it's not always bad, andrew. like here or the white house >> jason is not somebody who

likes to be a yes man. >> right and you can have -- >> yeah. >> we don't always agree we don't always agree. >> it's true when we come back, it is cyber monday after a record-breaking black friday, shoppers are jumping online for deals today what is turning into capitalism's biggest holiday when we come back. stay tuned you are watching "squawk box" rit ren bc ghhe ocn

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welcome back to "squawk box," everybody. happy cyber monday we've been watching the futures this morning and so far you are looking at strong gains at the open dow futures indicated up 230 points this comes after a decline of more than 4% for both the dow and the nasdaq last week s&p 500 closing at its lowest level since the beginning of may on friday. the dow closing at its lowest level since july on friday you can see this morning the dow futures indicated up by 235 points and the nasdaq up by almost a hundred points and a very big weekend of holiday shopping leading up to cyber monday today the online extravaganzas are already underway courtney reagan joins us with more good morning >> reporter: good morning, andrew i am here in chino, california,

outside of walmart fulfillment center today is expected to be a very big day extending the records from the weekend for online. adobe says to expect $7.8 billion to be spent online today for cyber monday in total. that's up about 17% from last cyber monday but actually a slower growth rate than what we've already seen on thanksgiving day, black friday, and even small business saturday 76 million americans are expected to shop today that is down a little bit from last year. about 3% according to the national retail federation 10:00 p.m. to 1:00 a.m. eastern time is actually expected to be the busiest time because americans don't need to get to work to use the high speed internet access anymore. we have it all the time with us. this walmart fulfillment center is one of many working to ship millions of items ordered over the weekend and many more today. thousands of associates work at this facility. it covers 1.2 million square feet and there are 12 miles of

conveyors. according to edison trends, they say that walmart's online trends grew 20% this year compared to last year. walma walmart-owned jet.com, however, dropped 6% over that time period amazon sales grew 25%. target's soared 48% online edison also finds that walmart.com's market share over thanksgiving and black friday online was about 18% for the big box players. that's a slight increase over last year and about on par with target more than best buy but much less than amazon's nearly 49% share walmart has about 4700 locations in the united states so that could be a big advantage for a day like cyber monday as more americans are using the idea of click and collect. adobe says that actually grew 73% just from thanksgiving to black friday in total. so americans want to order from the comfort of their couch but

also want it quicker even than a same-day delivery. they can go to the store and get it in a couple hours back over to you guys. >> okay. before you go, i need news you can use. who's got the best deal going? what's like the one item or two that has some kind of crazy deal available right now? >> reporter: so you got to do your homework, andrew. because deals are going to be different from black friday to thanksgiving to cyber monday toys in general are still going to be pretty hot across the board. but so, too, are things like electronics or a vacuum cleaner. don't buy it as a gift, but if you need it for your house there are some good deals on those items across the board at a number of retailers. everybody is competitive with price transparency these days. >> hey, court, how are those online sales trends? or the traffic trends? how are they measured? nobody really gives away any of that information

it's always third parties trying to mention it. i always wonder how accurate it is >> reporter: so it's really hard to always know, becky. we get these third party informations we have folks like captify but we don't often hear a day by daybreakdown they've give us a trend for the overall season and those end up being fairly close it's hard to know over the individual-day spikes. but there are different analytics these companies are able to use. even the third party companies aren't going to get into the details of how they did that if they tell you how they do that, anybody else could as well >> okay. courtney reagan, okay. great to see you >> thanks. coming up, facebook has always been mark zuckerberg's company. but at the end of a tough year for the social media giant, we're hearing questions whether he should remain the chairman.

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e*trade. the original place to invest online. welcome back to "squawk box. take a look at the futures we are in the green this morning. up triple digits dow looks like it would open 238 points right now nasdaq 101 points. s&p 500 up about 26 point. and a developing story from japan.

carlos ghosn is out as chairman now for mitsubishi motors. he was arrested last week on suspicions that he underreported his income by millions of dollars over several years and nissan already fired ghosn as its chairman last week. company says an internal investigation found ghosn used company money for personal use he is denying the charges against him. when we come back, black friday is done small business saturday also in the books. now come cyber monday. everyone in the retail world is watching we'll look at that after this. as we head to break, take a look at u.s. equity futures up sharply after a horrific wick last week. dow futures up about 240 points. nasdaq by 102. our new, hot, fresh breakfast will get you the readiest. holiday inn express. book now for at least 20% off during our annual sale.

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site in times square mong the stories front and center this morning, venmo was hit by a wave of payment fraud earlier this year. this is according to the internal documents reviewed by "the wall street journal." venmo had an operating loss of about $40 million for the first three months of the year about 40% larger than paypal had projected. both the pound and euro are hedging higher this morning after approval of a brexit deal over the weekend by the eu the agreement still faces a tough path through a divided british parliament and "ralph breaks the internet" tops the thanksgiving weekend box office represents the second best thanksgiving weekend opening on record behind disney's "frozen" which hit theaters five years

ago with sales of $93.6 million. let's get a check on cyber monday sales it's been eight and a half hours since monday began, and numbers are coming in realtime these numbers reflect customers buying products from the 600,000 merchants using shopify's platform and joining us now is harvey finkelste finkelstein. thank you for being with us today. >> thanks for having me. pleasure to be on. >> i've seen the black friday numbers. looks like they were strong numbers coming in at $20 million an hour at the peak. $86.40 was the average shopping card order for what you were seeing how is cyber monday shaping up >> so we'll see how cyber monday goes, but friday was pretty incredible we did about $570 million for the entire day at its peak we we saw about $860,000 per minute or about 11,000 orders every single minute which was amazing something else that's really

interesting is that by 2:30 p.m. on friday eastern standard time, we had seen effectively what we saw the entirety of black friday in 2017. so we're seeing amazing growth certainly a couple of interesting trends came out of friday we'll see what happens today >> harley, how would you measure what happened? enormous growth you've seen. is that because people were spending more or is that because shopify now has more businesses it's tracking? >> there's a couple things happening now. black friday and cyber monday, that weekend is beginning earlier on we started seeing sales from our 600,000 merchants start as early as monday of last week so it is definitely extending. we're also seeing that the black friday, cyber monday trend is expanding beyond the u.s so other countries are also participating from a consumer perspective. but the other i think more interesting piece of this is that while amazon will always have a place in e-commerce and will always play a big role for

the things you need to buy, your shampoo and your toothpaste and your tool et paper and your detergent, people want to buy the products direct to consumer is a fad, that thought is ridiculous i think people will want to buy products from the people that make the products. and most of those stores whether it's all birds or kylie cosmetics or kanye west or any of these brands, they're all being sold using shopify that i think is a trend we'll see continuing on for a long while. >> i like how you did that you kind of set amazon on the sidelines. you said there'll always be a place in e-commerce for amazon right now they're the giant. they're the ones to compete against, no? >> again, amazon is a wonderful marketplace. i think they focus on convenience and price. but i think more and more what people liked about amazon. for instance, the one-click checkout, that's available in every shopify store with apple

pay and android pay. what's happening is these makers, these creators of real products, they're finding a lot more success going direct to the consumer they get to own the entire profit margin and customer experience i think from a consumer perspective, consumers are looking for that sort of experience i think that will be steady going forward. >> what were the most popular items you were seeing? >> so generally, i mean, because we have so many stores on shopify, we see products sell across all categories. certainly apparel and fashion seem to be a big one in general. but two of the hottest selling products for black friday, one was sneakers the sneaker market seems to be really heating up right now. and the second was toys. it's really interesting. if you think about the toy market, you tend to buy toys for other people you're seeing people are getting their christmas shopping done on black friday >> that's because there's no more toy stores. >> also they can't walk into a toys r us the way they used to a lot o the toy makers whether they're big companies or smaller

companies like goldy blocks which is an amazing toy to teach girls how to be inspired to become engineers, they're having phenomenal success using shopify. >> we've been talking a lot today over the last week and customer acquisition costs is there anything unusual this year in terms of what's working and what's not >> yeah. i think the one thing that social media continues to provide is a blit of democrat e democratization for small businesses i was one of the first merchants using shopify more than a decade ago. so the store with the highest capital, the most amount of money was able to spend the most and acquire the most amount of customers. that's not really the case anymore. now creativity is trumping capital in terms of the main ingredient for success and customer acquisition we are seeing a lot more we're seeing product demo videos of course we're seeing a lot of influence for marketing. but what we're seeing isn't

necessarily just pay some big celebrity to endorse your product. we're seeing more microinfluencers there either they get a product they try for free or they get a benefit to talk about the product. that seems to be going well. but also generally brands and merchants on shopify, they're finding customers in all types of different places. they're finding customers on places like pinterest and snapchat and instagram some of those obviously have a cost to acquire attached to it but some of those are just using sheer hustle and perseverance and grit to find people to buy their products >> what is return rate looking like at this point and what do you put the average cost of a return at? the reason we ask is we were talking about this last week it is not inexpensive to take on a return >> that's right. if you're going to compete with some of the big market places and the big retailers like the department stores, a good return policy has to be part of your business strategy. the one thing quite different is

companies like ours, we are going to the shipping companies whether it's dhl or u.p.s. and we are negotiating on behalf of the merchants to give them way better rates than they could get on their own we're trying to use economies of scale by aggregating all of our stores and approaching the shippingcompanies to get these rates that traditionally only the biggest retailers and the biggest department -- >> i'm not just talking about the shopping costs the actual handling of the item. we were talking to a retailer last week who was saying it could cost us $5 to $10 just to take it back and deal with it. right? in a way that i don't think people appreciate when it comes to e-commerce. >> that's true it is not inexpensive. it is not easy to do returns, but it's something most retailers have to do where i think there is a little bit of relief here is with things like the new ios 12 comes with the augmented reality kit a lot of retailers are leveraging technology to reduce the amount of returns. so, for example, if you're

buying a piece of furniture off a shopify store like magnolia, you're able to see the way the furniture is going to look in your home. but there's no doubt about it, returns will continue to be a costly issue for merchants but it will get cheaper over time as a lot of the shipping companies begin to realize it's part of doing business even for the smaller guys >> harley, want to thank you for your time today. we appreciate it >> thanks so much. >> harley finkelstein. coming up, mark zuckerberg has been synonymous with facebook since the company's founding but not everyone is happy with that ar're going to hear from a lge shareholder who is calli ining change when "squawk box" comes back ture was stirring, but everywhere else... there are chefs, bakers and food order takers. doctors and surgeons and all the life savers. the world is alive as you can see, this time of the year is so much more

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welcome back to "squawk box. mark zuckerberg announcing he has no plans to step down as chairman of facebook but company shareholders are pressing for an independent leader to control the board. joining us now is management senior vice president jonas crohn. trilium is one who has asked for facebook to bring on an independent board chairman >> thanks for having me. >> do you think there's any chance this is going to happen given the control that mark zuckerberg ultimately has over this company >> well, certainly he controls about 60% of the shares there's an uphill climb. but i think it's worth thinking

about the fact -- what it is that has brought us to this point. it really comes down to two things one is that it's basic good governance and facebook is no different or special in any regard. it's not any -- it shouldn't be treated any differently. and most investors think an independent board chair is best governance practice. beyond that, looking back over the last two years, it has just been a giant game of whack-a-mole lurching from crisis to crisis and i think if we've learned anything in this time period, it's that mark zuckerberg, he can't do this alone. he would really benefit from having an independent board chair. independent board chair would bring in a lot of improvements for the company. >> so jonas, let me ask you. is there an alternative? could you have a lead director that's not him would that work? >> there currently is a lead director >> but you want a stronger one i mean, it's funny you look around that board and there's a lot of strong people including ken chenault that just

joined last year and yet they're still in the same place. my question is do you think there's a fundamental difference between naming somebody the chairman, having that title, or a lead director or something else or is this just about having the right people around the hoop and are strong enough to tell the controlling shareholder something they don't want to hear >> yeah. well, i think you're exactly right. i think we've seen what's been happening so far i think we've seen the board, you know, kept in the dark and something that a chairman has, the power that the chairman has is that they are the leader of the board and they have the ability to set the agenda for the board. and so by having somebody in that place whose job is really to make the board functioning as best it can, optimally, that really enables it to provide the oversight that is necessary and that big picture view. so yes, i do think it really does make sense to have an independent board compare. we see independent board chairs at apple, autodesk, alphabet, microsoft, intel all of those companies very

successful technology companies. >> all of those companies don't have a controlling shareholder in the same regard that facebook does there is an argument to be made that shareholders or investors, rather, who took a stake in facebook knew going in eyes wide open what the deal was which was that you were going along for a ride with mark zuckerberg >> yeah. there's no doubt at all that that was, you know, the -- what was presented and that was what was on the table but we've been through the last two years. we've been through all of these controversies, and we've been, you know, and mark zuckerberg has had many years to address the situation. you know, let's not forget at the beginning of this year, mark zuckerberg set his personal goal to fix facebook. we are now in late november. you know, whether having a duel class structure and whether it was on the table was one thing but this is where we are now >> if you had your druthers, would mark zuckerberg still be

the ceo of this company? >> i think he should be the ceo and we should bring in an independent board chair. >> and where do you stand on cheryl sand be erisheryl sandbe? >> i think there's been a lot of focus on sheryl sandberg and obviously she should come in for some criticism, but in terms of making the hiring and firing decisions, what i'm focused on right now is the independent board chair and whether we can get a governance structure in place -- >> who would be your perfect chairman >> well, i don't really want to get into the naming names. sort of that parlor game but i think we know the kind of person that we want to have. you know, i think we want to have an independent board chair that has gravitas, that has the skill set with a variety of different kind of companies. somebody that has time this is a time that's going to require a lot of time and energy over the next two years. and somebody obviously that is able to provide that big picture oversight. >> is this an executive or non-executive chairman >> this would be a

non-executive. this would be an independent board chairman someone who has genuine independence from mark zuckerberg. >> is there anyone on that board you would take >> again, i think we need to bring somebody from the outside. i think we need to get that fresh voice, somebody that doesn't have that sort of history with the existing board. >> hey, jonas. >> yes hello, becky >> i know you don't want to name names. but we had jeff sonnenfeld on last week and he suggested don graham he retired because of the retirement age is that someone you would consider independent or has he been too associated with the company? he has a lot o the characteristics you just listed off. >> yeah. absolutely you know, again, like -- and i don't mean to be coy, but i think right now what we really need to focus on is that basic question, do we need to have an independent board chair. because as a structural matter, it really makes the most sense it's basic good governance

>> if you don't get it, are you going to sell the stock? >> well, we'll have to see where we stand you know, it'll come up for a vote in may. there's a lot that can happen between now and then we are long-term investors three to five-year time horizon. we don't hinge anything on one specific fact. so we'll have to see where we stand. >> could you ever see what might be described as a travis kalanick uber situation at facebook that was the situation where you had a holder -- nobody thought he was going to be ousted. yet somehow the investors coalesced around him where it became untenable for him to remain in that role. >> well, i do think there's the hard power question and the soft power question the hard power question is who has the actual votes obviously mark zuckerberg has it but i think as we all know, that there is a soft power that comes with the voices that mark zuckerberg can respect and from investors on wall street and i think that's what this is really about it may be a situation where this

seems impossible until it was inevitable >> jonas kron, trillium investment thanks >> thank you very much when we come back, jim cramer live from the new york stock exchange meantime, take a look at the futures. they've been sharply higher this morning. not so much now but the dow still indicated up 215 the nasdaq up by 89. "squawk box" will be right back.

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welcome back everybody, we have some breaking news on air bnb. deirdre bosa is joining us >> david stevenson will take up the role stevenson is a 17-year veteran at amazon. he most recently had been v.p. and cfo. he has been responsible for all global website sales now, the company is announcing the news this morning to its

employees. cofounder and ceo is going to be calling for stevenson for long-term growth and set air bnb up for an anticipated logo the company has not commented. this is the second amazon executive that air bnb has hired over last year >> all right, deirdre bosa, thank you very much. >> let's get down to check with jim cramer with the new york stock exchange what you are looking at was nothing that this rally is based on and therefore you don't think it is going to last long >> okay, fair market value you go down really hard last week and then you come in on monday and it is up a lot and people come in and buy it and they lose money. i think that wednesday jay

powell can easily say this for cyber monday proves that we are way too hot. he's going to do one and wait, the president i think will try to say something good in china because he's going put on his good face but he does not want any sorts of resolutions we have all these things happening for a couple of days it is not a good time. >> 24/50 on the s&p, do you think that'll do it? >> who cares about the s&p, individual stocks are down i was waiting for clorox and coca-cola, they're not going to lower. they're good they're expensive. tremendous contempt at this point. every time you try to make money with it, it kits your heart out. that's bare market people don't want to call it bare market, what do they need

hey, let's get involved in nvidia is that a correction so yeah, certain stocks that are up a lot that's great it is only clorox at this point. >> really. >> facebook is almost down 50%, too. >> i hear you. we are talking about who's going to be removed. that sounds like a democracy i am waiting for the snap guy to be moving in, is it a democracy? they can do whatever they want it really does not matter. cheryl sandberg, we act like these companies are congress there is no real democracy people come in 250 they get their heads cut-off and i feel ashamed people say you are bullish

i am embarrassed now judy woodruff? give me a break, jay, pence is declaring war geagainst china. let it go up to three or four days and sell something. honestly, what do we want? how much do we have to go down on individual stock that is were important before we say it is not a correction that it is something deeper >> how much? >> all right, tim. apple, hey, it looks great the chart looks great. >> we'll tuned in for more a final check on the market right on the other side. "squawk box" will be right back.

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welcome back, everybody, news alert, cbs health says it has received final approval for aetna. both stocks are up on the news aetna is up by 1.5%, cvs is up by 1%. >> general motors plan to announce to cut car production

in north america reports say the company will stop building low selling models campbell soup, ending a bitter proxy fight. campbell will add two of their nominees to the board and will give the hedge fund a say of the next ceo it will come just days before the shareholder meeting. there has been a big battle on that >> all right, on the dow, let's take a final check here. 236 now on the dow the nasdaq is indicated around 92 points. the s&p 500 indicated of 25 or so we'll take a look at some of the other things that are being affected in this crazy market environment, wti is up almost 2% after the big sell-off last week that accelerated on friday, the day after thanksgiving who knows?

it is not always the most volume at anything. >> just to put in perspective, the dow lost about 1700 points over the last two weeks. >> no, but if you are looking just over 200, you are not getting back everything. >> no, you are not maybe or maybe not make sure you join us tomorrow "squawk on the street" is next ♪ good monday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber. future bounced at 230 right hereafter losing 1600 dow points big week as we get to earnings the g-20 summit. europe's green, oil is back above 51 road map