>> it is 5:00 a.m. at cnbc global headquarters. here is your five at 5:00. the dow risk a four-day winning streak. >> and xi jinping says a phase one deal seems less than likely. >> vaping under fire president trump holding court as one major u.s. city looks to ban flavored ecigs entirely.

elon musk unveiling his latest at an event last night retail wraps up a busy week as "worldwide exchange" begins right now. ♪ >> good morning, happy friday and welcome to the show. stock futures are moving slightly to the upside the dow moving up the longest losing streak. the s&p seeing the longest losing streak since september. the dow is at risk of snapping its winning streak as future gains hold, the dow would open up by about 59 points and the s&p by about seven points as well if you look at the 10-year, we

are slightly lower on the day, about 1.755% two-year about 1.597%. japan did finish off in the green up 0.3%. china, you can see closing up as well a half of one percent main land china up 0.2%. in the european trade, we are seeing a little mix there. german dax up 0.25%. those trade tensions continue to be front and center. chinese president saying china wants to work for a trade deal but is not afraid to fight back. our own eunice yoon is with us

put those comments in context. >> it is interesting this is the first time we've heard president xi jinping commenting on the interim phase one trade deal he said he does want to see something worked out but that this deal would have to be negotiated with the understanding that u.s. and china are both equals and that it is conducted with mutual respect. some other points he made such as henry kissinger was that the trade war wasn't something china wanted but something china would fight back on when necessary the markets here didn't seem to be heartened as a tense relationship today, the ministry blasted the united states on another issue

that is the u.s. sending more warships into the south china sea skirting islands, which beijing claims asits own this comes after the u.s. congress had passed the bill seen as supporting prodemocracy activists in hong kong the other development was that he hinted at some pensions saying china wanted to ensure its financial sovereignty. this is even as china continues to open up its financial markets. what was interesting is how this is being interpreted as a signal that, yes, we are in this trade war, this tech war and maybe now soon to be in a financial war. >> outside of trade, there is some expectations of major news coming out of hong kong. we know there are elections

taking place there take us through that as well >> what is interesting there will be four million people heading to the polls in hong kong on sunday. this election is not something for the local top leaders but actually for district elections that are normally quite local and mundane. they are expected to have record turn out just because of the back drop of the protests. they are hoping take more seats or take advantage of the current temperature of the city. but the overall seats are stacked with pro beijing loyalists. the other thing people are watching for is concern whether it will bring more protesters and violent clashes.

security is very tight and people are worried about what they might see a lot of people are worried if the clashes get too bad, the elections could get suspended. plenty of analysts say that would even enflame the protests even more. >> thank you so much joining us now, a cnbc contributor. larry, we just heard eunice talking about some flash point issues in china and hong kong. we know the markets in the u.s. are still hovering near record highs. is this a scenario where the world economy and market is all con continuent on what happens in the united states >> think about it, 12 years ago, everybody was talking about what was called decoupling. there was problems in the u.s. and globally, there was

strength now it is the opposite problems globally, strength in the u.s., strong dollar. i think that will happen in the next six months. big, big trade a rebalancing of the global economy. where the global economy strengthens relative to the u.s. and capital that will flow >> so if this is the case, how important is what is happening in hong kong with china and the tensions there going to play into this narrative overall. is this a scenario where you could really see the down side event trigger globally it is really going to trigger a problem in the u.s you've got senators and congressmen taking the wheel out of the white house hands president trump trying to do a

trade deal net net the pressure coming from congress and democratic candidates there is this effort to lay the hammer down. that creates uncertainty for the u.s. markets >> one of the reasons why the fed did take the actions and cut interest rates three times the interest rate environment is still supportive of what is happening in regard to the united states. if not, what needs to happen and where could we see some flash points there >> you and i were talking about a year ago i made the point that beast in the market was going to break the fed over its knee. credit risks was really rising that's what happened the fed not only caved onra rat

cuts they've undone about 400 billion of that. here is the thing, everybody says don't fight the fed how many times have you heard that i have a question for you and people watching now, why are people in the bond market especially in the junk of junk bonds, why are they fighting the fed? the first time since lehman wen down, you have bonds in high points >> one final point here. i can understand what you are saying about the general tone of the bond market and the high yield. but those are only in certain parts. generally speaking, take a look at the etf that attract

high-yield debt. is this really a scenario where we think the credit markets are signaling something bad ahead? >> we saw this in 2007 there were pockets of risk one by one by one, as they grew. it was a credit spread contagion. just in the past month, this was moved from tightness, loans now dipping into single bs they had to cave on the balance sheet. the ability to finance bad assets and all of the problem with wework. right now, this is the most important part of the interview. we are seeing underperformance of u.s. banks cds.

it is starting to widen, that tells you, it is some type of credit contagion spreading through. >> thank you for joining us. let's look at some other top stories. tesla ceo elon musk unveiling the all electric pickup truck dubbed the cyber truck unveiled in l.a hard angels and sharp lines there, will start under $40,000 and will have a top range of 100 miles on a single charge also watching, apple reports demands for the air pods pro is shocking higher than expected people familiar with the plans reportedly say apple expects

shipments to double adding that demand is straining supply chain capacity and xerox giving hp an ultimative threatening to go hostile unless the company agrees to pursue a friendly combination. hp had turned down xerox's offer saying it, quote, significantly undervalues the company. when we come back, president trump holding key talks on the future of federal vaping administration and we'll talk to someone who has an inside glimpse. and pure pain, why these shares are falling off a cliff. later on, casting out a federal reserve independent will be there. a very busy hour

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>> a live shot of our nation's capita capitol. it is a hot spot right now new york city is moving forward with plans to ban sales of e

cigarettes as today, president trump will hold court over the usage of youth usage you name them, all the groups are expected to be there today one group that has curried favor is groefr norquist the group had an editorial out banning favored e cigarettes might cost trump the reelection. >> joining us now, director of strategic initiatives, paul blare. i got to say when i saw the headline there, i thought how could vaping really swing the election why is this such a key issue for president trump? >> a great question. for viewers who are either not

smokers or never used e cigarettes, it might sound really weird that this could be a key issue either in 2020 or in state or federal races in 2016, when we first conducting polling among adults, we found three out of four adults who use the product three out of four of them were single issue voters. their vote moving issue was where a politician stood on access to vapor products that poll has been advocated showing essentially the same thing. more than 80% of the adults when use these are single-issue voters we have data from the fda and cdc that shows at least 13

million american adults use these. when you add up the number of adults who feel deeply passionate to using these because they've been able to transition away from cigarettes to lower risk alternatives in a state like michigan where president trump won by less than 700,000 votes and there are over 400,000 who use these, it is an issue especially in swing states could have a major impact on the outcome next year. >> fair enough i understand the adult usage issue. the issues around the vaping epidemic have centered not around the adult side of things but around teen usage of these that's the reason president trump has turned his attention

to this. how does that play out because teen usage is a key issue here >> it is important to note usage fell at the largest decline at the american history 28%. it is certainly important to look at what teens are experimenting with the problem and the question is do we focus on the experiment at the cost of restricting adult access there are products applied that could address the teen use question you already have to be 18 to buy these. senator mcconnell is pushing to raise that to 21 that is endorsed by the president as recently as two weeks ago. there are a push to restrict marketing to make sure there aren't silly brands or the use of cartoons and silly things

like that. those are all reasonable restrictions the government can place on these without removing them from the market it is important to focus on teen experimentation but it can't come at the cost of adult access >> let's talk about whether we can button this up here. we talked about the number of stake holders that will be present at this particular meeting, are they going to be able to address the numbers the cdc puts out with the increasing number of deaths and illnesses tied to vaping when the center for disease control still doesn't know what is causing all the illness. >> a meeting provided the clarity in this space. they found all of the cases they tested products where

individuals got sick or an individual using a product ended up passing away. they found vitamin e acitat. that is an additive in marijuana or cbc it is not flavored e cigarettes. it is marijuana and thc products people get from friends on the black market and drug dealers. it took a while to get there it is an important issue to address. it goes to the issue of conflating the use of two different products and overrating one industry because of a misconception about the use of one >> paul blare. following those closely. still on deck, breaking

silence about his public dispute with taylor swift. and baby yoda may be the next hot holiday item it is trending when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.

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>> welcome back to the show. what is happening now in the future market. the dow up 58 points and implies the open if these future points

hold the futures will open up making headlines outside of the world of business today. house lawmakers are heading home after a dramatic close to this chapter of the impeachment inquiry. wrapping up with the testimony from former national council fiona hill president trump is looking ahead. officials tell nbc news, he met with republican senators to discuss impeachment strategy >> an investigation of how two air men died in oklahoma two tallons went off the runway while landing.

one of them was upside down. the military is expected to identify the two airmen that were killed later on today >> a connecticut man is hailed a hero after rescuing a stranger from a burning car the video captures the moment the vehicle burst into flames which may have been started by a burning cigarette. the balance in the same spot at the same time and rushed the driver to the hospital to be treated for burns. the hidden deals that may be hiding in one red hot sector and microsoft gets the okay to do business with huawei and moves they are making to halt those. that story coming up >> announcer: today's big

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and expose him fo what he is: a fraud and a failure. >> the haves and have notes. we are breaking down a stark contrast a rocky rollout as tesla suffers

an on stage snaffo and breaking his silence music manager speaks out over the public feud with taylor swift as "worldwide exchange" rolls on welcome back to the show thank you for being with us here on the show. here is how your money looks as we are half way through the 5:00 a.m. eastern hour. the dow down three days in a row. the s&p seeing its longest losing streak since september. the s&p would open up by about seven points if these gains hold into the opening bell. trade tensions front and center for investors.

president xi jinping saying china wants to work for a trade deal but not afraid to fight back adding that they should strength enconversation on key issues to avoid misunderstanding as well microsoft says it has been granted a license from the u.s. government to do business with huawei that move is beg met with option in a letter to president trump, a bipartisan group is calling for a halt to those licenses facebook according to reuters, they will respond to requests by tuesday. the state announced its investigation into the company earlier this month president trump's nominee to the

see on the government board is facing scrutiny on her apparent recent comments. judy shelton requested whether the fed should operate free of political expressions. she did express support for the fed working more closely with the white house and congress her remarks come amid continued criticisms of the federal reserve. a coalition could be in the works to make a bit for some coty's most popular beauty brands unilever and henkel are talking to coty. the company is expected to kick off an auction process next month for a portfolio of hair and nail care brands a busy week wrapping up. the latest stand outs include gap. coming in above estimates and ross boosting higher

and nordstrom delivering q 3 results that beat estimates also raising the bottom part of the 2019 forecast. joining us now is director of consumer research, what is the take away. a big week of earnings what is the key take away you have this week >> it is interesting there is clearly a divide between the winners and losers they are giving them a fast and easy way of shopping the value is the focus we are seeing nordstrom beat expectations because they have the rack that did very well offering the consumers the value proposition. ross, tj maxx, target and walmart. the value proposition is so important. >> i've been trying to weave

together a theme home depot diving after earnings but lowes hitting record highs then the luxury side of things rh, yes, some warren buffett involved in that it is not necessarily one thing. not one part of the income spectrum or the price at all what can investors do with that? >> i think it is important to dig deeper into the data you mentioned home depot target, this week, they knocked it out of the park and stocks surged this has not always been the case target vest target invested a lot of money same with home depot they posted a growth from a year ago. they are now investing, the stock took a hit what we are seeing also is omni

channel is a necessary evil. it is a big investment home depot saw 22% growth on line and 50% of that growth is derived from consumers ordering on line and picking up in store. for that, it is urgent to really invest in that omni channel. >> it is key the digital side of things is a massive undertaking. we saw the same thing happen with target. there was a time they said they are not making money but now walmart and target are surging fr surging. it is driven sometimes by 30% to 40% gains. >> even west elm saying sales grew that made up for 57% of their

revenue. again, underlining why it is so important to vest in the e commerce experience. it is important for investors to dig deeper and not just judge a company just because they are telling us we are going to invest a lot of money in the long term growth like we saw with target, it does payoff >> thank you for bringing us those consumer thoughts. we appreciate it tesla unveiled the highly anticipated truck in los angeles but it did not go according to plan phil, what did you think i can only think of the armored glass. >> we'll show you that this is a polarizing vehicle that is an understatement. tony who we had on the air, i

love this quote. tesla's cyber truck looks weird, like really weird. it does look futuristic. $39,900 is the base price. they are offering three versions by the way, the range between 250 and 500 miles. toeing capacity 7,500 to 14,000 pounds and 0 to 60 between 2.9 and 6.5 seconds. three different versions based on the battery capacity. the trimotor version will go up to 500 miles fully charged then there was the window demonstration. they were trying to show that this would be more endurable than any other pick uptruck. they tried to show that this

glass would not shatter. you see the reaction after the first toss they are going to do it again. elon goes give it another shot watch this didn't exactly go as planned didn't completely shatter. here is elon musk after both of these demonstrations failed. >> we through wrenches we through the kitchen sink at the glass, and it didn't break weird reason it broke now. i don't know why >> if you take a look at shares, a couple of notes out, almost everybody says the same thing. not really sure who the core customer is going to be. not expecting this to come out until late 2021. >> the pickup truck will round out a product portfolio that already has an suv, smaller

sedan maybe a roadster down the line will it maintain its lead and first mover because there are so many options for consumers at that point >> i don't think this moves the needle where tesla is. this is a very niche pickup truck if it is built and looks like this. i'm telling you, this is just not going to sell well beyond core urban markets and where people want to make a statement about the future of vehicles this is cool in terms of functionality, there are more questions than answers. are they likely to look at this vehicle? nope i don't think so will there be urban buyers remember when the hummer came on and they said nobody is going to buy the hummer

there was a small niche. i see the same thing here. in terms of tesla and the advantage with electric vehicles, their volume is going to be very low on this remember, the others who build pickup trucks, the big three as well as startups, they've got electric pickups, likely more traditional looking coming out late 2021, early 2022. >> i don't know if i would buy one. that's just me thank you, phil. coming up, what united airlines ceo is saying about the safety steps his company plans to take when the boeing 737 max yet returns to its fleet plus congress looks to crack down on how concert tickets are sold to you. details about the unfair practices lawmakers are trying to take a look at. that's coming up

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>> let's find out what else we are talking about today. turning to rahel >> the house is launching an investigation into the live entertainment ticketing industry being looing at places like live nation, ticket stub launching a probe into unfair practices. where scalpers sellic ets they don't already own and third party ticket sales stub hub welcomes the investigation. >> this is tackling the investigation with all the

things happening i have purchased tickets before. this is a consumer topic that resonates with the population. >> have you paid a little more for taylor swift concert >> i haven't been to a taylor concert. >> speaking of taylor. a breaking of silence. brawn highlighted a desire to sit down with swift and has no intention of airing things out via social media swift is scheduled to perform where she will be awarded artist of the year. i thinks it applaudable that you don't want to have a public dispute over a contractual

dispute. >> i'm old fashioned that way. it seems as though these days with social media, people use it as a megaphone perhaps right fully so at times. but these are things that should stay behind closed doors and should stay that way >> for fans of star wars disney will soon launch baby yoda mercedes. t-shirts are already listed on amazon more apparel will be available today. more to be seen at kohls and target when the story broke, the news room was a buzz. >> are you a star wars fan

>> i'm not >> i'm wearing darth vader cuff links right now. i'll show them there i also have chewbaka ones as well so i'm a fan thank you. coming up on deck, the moves you need to make in the trading day ahead including plays in the industrial sector and the steps softbank is playing out. >> announcer: elon musk, a game changer for the industry today.

>> time for your executive recap. headlines you need in 60

seconds. the ceo of united airlines says he's handling the 737 max yet with care. once the airlines begins to use the planes, it will use its own process to calm customer's safety concerns. >> we have to be very transparent. when you book a flight with us and it involves a max, you will know if you miss that point, we'll reaccommodate you, rebuke you. we won't charge you a fee. we have to be that lenient and flexible to ensure everyone is comfortable. >> uber's former ceo appears to be cashing in on the company following the post ipo lockup. he's sold $1.5 million since the expiration earlier this month. the most recent coming this week

even after the sales, he still owns just under 4% total outstanding shares of uber executives at softbank are looking at wework stock as part of the are es cue package. talks are focused on shrinking the $3 billion share offer in part to limit the pay out for adam neumann they did announce it is laying off about 2,400 employees. >> investors appear to be hungry to cash in on sales. are there still deals to be had. a look now at those industrials. >> for the first time in a long time, they seem keen take a look. signs that investors are more

sang win about the health of the u.s. economy enclose es to 20 times their expected earnings. that is higher than the five-year average. take a look at some of the undertunde the radar industrial names also outperforming this year really the number of equipment manufacturers. johnson controls makes the heavy duty truck maker look at united rentals as well up nearly 50% so far this year to get another sense we looked at stocks in the sector and screened for two features the minimum yield just above 10%. positive performance in the short and long term. what we found were a couple of

names. emerson, cummings and fasten all. >> let's bring in phil orlando you heard seema talking about attractive places. is it attractive for you right now? >> it is industrials have been sort of struggling in terms of some of the macroissues. the ongoing china trade issue, the gm issue and stuff with boeg we are coming to resolutions in coming months with some is hope. investors are looking through into 2020. what are the prospects if we can get those issues behind us stocks are enjoying the rally in the last couple of months.

we've been right in there with them. >> what is your favorite part of the market right now what do you like right now >> we've had this 3,100 call that's worked. the stock market has been up about 32% from the bottom of the market on christmas eve to where we are now the two areas that have sort of underperformed there is still more room in value. growth has outperformed in a number of years and small cap versus large cap >> you mention the u.s./china trade talks. the markets have been trading on every headline let's assume there is a resolution that happens with the phase one agreement this month or this year if that were to happen, is it

the sell the news type of scenario >> i don't think so. we look at our forecast for year 2020 you've still got another 10% to 15% to go. december 15 is the key date. both of these need the deal. december 15 is the next date at which the tariffs will ratchet higher we need to calm the rhetoric and get the skinny phase one deal in place and allow the market to price in spl positives for an extra $2 billion worth of stuff. >> what is the place in the market you would stay away from? >> i think treasuries. if the economy does better, treasury yields should continue to rise. you've got to be vested in the equity market and stay out of

the way of the treasury market souns like a risk on phil orlando. >> absolutely. take a look at the markets they will be posed for gains dow up by 53 points and s&p up by six and nasdaq up by seven. "squawk box" picks up right now. >> good morning, futures pushing higher this morning after president xi said he wants a trade deal but also gave a warning. >> elon musk unveiling tesla's new pickup truck the water cooler talk will be about an unbreakable glass demonstration that went horribly wrong. >> we'll share with you big news from nordstroms, the gap and williams somona. it is friday, november 22, 2019.

"squawk box" begins right now. >> good morning. welcome to "squawk box" on cnbc. we are live from the marketsite in times square. i'm becky quick. let's look at u.s. equity futures. you'll see green across the board. dow is indicated up about 53 points just about the amount it fell by yesterday. it was down 55 points yesterday. the dow is now sieeeing its longest losing streak. the s&p indicated up about six points and nasdaq up by 26 treasury yields look like the 10-year is yielding below 1.8%,