it is 5:00 a.m. at cnbc global headquarters and here is your "five at 5:00." a regard rally in the stock market rolls on after short stints on the sidelines, the buyers are back in business. helping stocks hit some new record highs, some $56 billion worth of new deals being sealed this week alone. talk about a holiday appetite for some deal-making there more progress on trade talks top officials holding yet another key phone call overnight as the december 15th deadline for tariffs looms. and a baba boom! hong kong-listed shares in the chinese e-commerce giant surging on their debut a live report in just a moment

and blame baby yoda. fresh numbers this morning on disney's new streaming service coming in as "worldwide exchange" begins right now ♪ i need a hero, i'm holding on for a hero till the end of the night ♪ ♪ he's gotta be strong and he's gotta be fast ♪ good morning, and welcome to the show i'm dominic chu in this morning for brian sullivan it is tuesday, november 26th, 2019, and what a difference a deal or two or three makes stocks coming off another record-making day with the s&p and nasdaq both hitting record highs. the dow surging triple digits early in the session and really never looked back, partly in thanks to a huge merger monday more than $50 billion in deals sealed in one day alone. topping that list, a $26 billion deal, a tie-up between charles schwab and td ameritrade for that retail brokerage business on the heels of those numbers, here's how you and your money are looking this morning

stock futures indicating the dow will open marginally lower by just about 17 points, again, from near record-high levels the s&p off about two points and the nasdaq down by about four. the bond market also key, a tick lower across many parts of the yield curve. maturities on for treasurys down to 1.747%, two-year as well. let's go worldwide in the asian trade, a bit of a mixed session there. you can see a little bit of green here one-third of 1% for the nikkei, the hang seng off 0.25% and relatively flat here in the shanghai composite in european trade, a lot of that same sentiment carrying through there as well, marginal gains and losses generally, though, red the german dax off 0.25%, the cac off 0.1% and the ftse 100 just about flat in today's trade as well. let's look at some of the other top stories we are following this morning. new progress on the trade war front. china's top negotiator, liu he, speaking with treasury secretary steve mnuchin and trade

representative robert lighthizer overnight. according to china's ministry of commerce in a statement, china says both sides discussed resolving core issues of common concern and reached consensus on how to resolve related problems ahead of a phase one trade agreement. in hong kong, chief executive carrie lam making her first weekly briefing since this past weekend's elections, appearing to offer no new concessions to protesters, despite the overwhelming pro-democracy electoral victory over the weekend there. and fed chairman jay powell speaking yesterday evening in rhode island, signaling that interest rates are unlikely to rise any time soon and that the bank remains committed to its 2 porti2% inflation target >> monetary policy is now well positioned to support a strong labor market and return inflation decisively to our 2% inflation objective. at this point in this long expansion, i see the glass as much more than half full with the right policies, we can fill it even further, building on the gains so far and spreading the gains more broadly

to all americans >> all right, for more on this, joining me now is chief investment officer rob morgan. you heard the comments from fed chairman powell about this idea of trying to get things moving in the right direction what exactly is the holdup here for the fed in getting that real economic growth and that real inflation stoked a little bit more >> dom, i tell you, it's a real conundrum as to why inflation isn't starting to move higher, which the fed would certainly like i mean, in the last pronouncement, and of course, in chairman powell's comments yesterday, you know, there's definitely a high bar for cutting rates anymore, but there's probably even a higher bar set to raise rates, because the fed wants to see inflation consistently at or even slightly above 2% and it's a real mystery with the strong economic growth wage growth is starting to pick up a little bit, but inflation growth has not and it's kind of -- i'm sure

you've used that term goldilocks economy many times in your career, and that seems to be what we're in right now. >> so, rob, as you look at the balance of economic data, the markets, and the dynamic developing here and abroad, is the fed's more likely move the next time around going to be a rate cut or a rate hike? >> i think, dom, the next move -- and it's not going to come any time soon, as i said, but it will be a rate cut. and that certainly factors in to kind of our overall investment thesis >> so, all right, so a rate cut in play here what exactly does that mean then for a market that's near record highs right now? there are places that have been left behind. they're playing catch-up a bit we saw a nice move higher in small-cap stocks yesterday so, if there is a trade that's going to reflate the overall market towards record highs, like we are right now, where is it that investors can still find some of that catch-up value if they've missed the move thus far?

>> well, dom, i think you know, assuming that there eventually will be a rate cut, that should nudge the dollar lower, which from a very large macro scale should help big-cap multinationals they benefit from a lower dollar so, i would suggest, even though small caps did well yesterday, i would overweight the large-cap growth stocks here for u.s. investors, i'd overweight the international space. and then, of course, if you'd like, we can get into the individual sectors of the s&p 500, but i think that kind of sets a big-picture background for where things might be going. >> are there key sectors or industries that you think would be within that side of things better positioned? you mentioned the large-cap growth side of things. is it technology, communications services we're talking about names like, of course, facebook and alphabet, the parent company of google, amazon, or is it more down the lines of the industrial-type names that have been beaten up, maybe like a 3m or names like that

>> yeah, well, technology, dom, is certainly -- it's one of my three favorite sectors i also like financials with the resteepening of the yield curve. should benefit from that as well as utilities and would underweight here health care, consumer discretionary, and telecom >> all right those overweight and underweights rob morgan at sethi financial, thank you very much. appreciate it. >> thank you. hong kong-listed shares of alibaba soaring in their market debut overnight. emily tan is there with all of the highlights and emily, this is a strong debut and we're just off session highs right now. we got as high as 8% at one point, didn't we >> yeah, that's right, dom we are still at the hong kong stock exchange watching the biggest ipo this year to come on to market. we're talking about alibaba. the most heavily traded stock on the hong kong market today with $1.8 billion worth of shares changing hands it was up 6.6% on the close at

$187.60. that's against an issue price of $176 hong kong per share that allowed alibaba to raise $11.2 billion, pregreen shoe, making it the world's biggest ipo so far this year alibaba listed in new york back in 2015 because the market did not support dual-class shares here in hong kong at the time. one new york-listed a.d.s. now translates to eight hong kong shares, and based on the close here in hong kong, we are traded at a slight premium to the a.d.s. chairman daniel jong was speaking at the listing ceremony this morning, and he said, hong kong, here we come there are i especially want to thank hong kong, thank the hong kong exchange. in the past five years, hong kong's innovation, capital market reform has allowed for what was a regret five years ago to become a reality, to be able to achieve what we said five years ago, that if conditions allow, we will definitely return

to hong kong >> alibaba now joins the likes of xiome with weighted shares in the hong kong market with this alibaba listing, hong kong jumps to the top of the league tables, overtaking that of the nasdaq in terms of funds raised $34 billion now in hong kong with alibaba listed in that hong kong market. back to you,.com doom. >> does this mean at all that the hong kong markets are back to normal? i mean, they've got months worth of protests to kind of work through. is this an adequate sign that the capital markets there, the business environment overall is constructive, given what's happening with the recent elections, and of course, all of the protests in the weeks and months before that >> we can hope so. we've seen, of course, a couple of days of calm now leading up into the elections yesterday was largely calm and a similar situation today as well. no major flare-ups and the performance on the

market also showing that the hang seng index was weaker on the day, but the newcomer to the market, alibaba, showing a very strong debut, as we've been talking about, up about 7% at one point in the morning session. we've seen companies try to come to market. they shelved them in the summer only to revive them and come to market successfully. budweiser apac was one of them, esr cayman was another and alibaba today, all signs that the market is trying to work as business as usual, and so, i guess that would be bringing confidence to the market >> all right emily tan live in hong kong with the latest on alibaba's listing. thank you. when we come back, reports on new subscriber numbers for disney plus. seems like everyone wants to take a look at that baby yoda buzz plus, why shares of this cloud giant, this one right here, are surging this morning. and then later on, an impossible valuation the plant-based burger craze climbing to new heights this morning. we speak with an early investor

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it seems kind of odd that we'd be showing a christmas tree right now because it's not thanksgiving yet, but that is a shot of rockefeller center, the christmas tree, everything getting prepared, the ice rink it's a glorious time here in new york city. fresh numbers coming in for disney's new streaming service frank holland is joining us now with those is it a hit?

>> number one, the publicity alone has made it a hit, but the numbers say the same thing so we're getting new data from a company reported by the "new york post. according to the research firm, it's off to a blockbuster start. they say the streaming service is averaging about 1 million new subscribers per day. the disney plus mobile app has been downloaded more than 15.5 million times since launching on november 12th. the data also shows many users are paying $6.99 a month for disney plus, rather than just taking advantage of a free trial. the service has generated more than $5 million through in-app purchases. important to note that apptopia does not track people who pay for it through the disney plus website, so could be more. for comparison, netflix has about 60 million subscribers while hbo has 34 million disney says it topped more than 10 million subscribers for disney plus on the first day, despite widespread glitches and technical issues they beat estimates and it really gave the stock a big boost. disney also offers a bundle option for $12.99 that includes

hulu and espn plus over the past two weeks, downloads of those services have increased by more than 50% put that together, it looks like people are willing to not only pay for the app but also for the bundle great news for disney. >> all right, so full disclosure on my front. i downloaded and did it, signed up, the first day, probably like 6:00 a.m. >> like a lot of parents. >> like a lot of parents i have a small child and i signed up for the bundle, the espn plus, plus the hulu now, they gave me a break because i was already a hulu subscriber, so they just cut my bill for the espn plus a little bit to make up for it. but this is a sense here now that we're getting that perhaps there will be the haves and have-nots in the streaming wars, right? >> absolutely. >> between netflix and them and hbo. >> well, you have to look at a company like disney that has such a library that's an advantage over some of the streaming services then you have amazon with amazon prime tv they just have a subscriber base for their prime delivery service, so of course, at some point, that's going to reach a zenith where these companies are competitive and maybe some others fall off like you saw in the rideshare space and like

we're seeing in the food delivery space but important note for you, dom, you may have saved on the bundle, but you're going to lose on baby yoda toys this christmas because you're going to have to shell it out. >> we're not going to tell you any more these are spoiler alerts. >> well, everybody knows about baby yoda. >> if you haven't watched "the mandalorian," that's what we're talking about. thanks. if you thought original monopoly was a long game before, hasbro has a brand-new version just in time for your next holiday family gathering that's sure to stir up a few negative feelings, to say the least we'll talk about that. and as we head to break, today's big number -- $1.6 trillion, the amount of north american merger deals through september. pitchbook expects the total activity for the year to now pass $2 trillion "worldwide exchange" will be back ♪ as a principal i can tell you this. when one student gets left behind, we all get left behind. this is a problem that affects each and every one of us. together with ibm, we created a whole new kind of school called p-tech.

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welcome back to the show let's get a check on some of the other big stocks on the move today. hewlett-packard enterprise reporting a bigger than expected drop in fourth-quarter revenues, citing a longer sales cycle, especially for large deals amid trade tensions between the u.s. and china, but the hpe company overall expects to return to revenue growth later this year but shares are still off 4.5% premarket. palo alto networks first-quarter results beat estimates, but shares are down sharply today as the cybersecurity firm forecasts second-quarter profits well below analyst expectations as it deals with rising cost and

competition. shares off 8% premarket. then, nutanx is spiking higher an a lower loss in expectations. they beat forecasts thanks to a rise in billings and jump in software and support sales for the maker of cloud storage software as a result, shares up 22% in premarket. still to come on the show, far from over as another trump ally is called to testify in the house impeachment inquiry. we are live in washington with those details next. plus, why former bond king bill gross says stock gains in 2020 will be hard to come by "worldwide exchange" is back right afr isteth ndown vitamins l non-gmo, made with naturally sourced colors and flavors and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time.

that is a live shot of our nation's capitol right now 5:23 a.m. eastern time on the east coast of the united states. a very big deal and a hotspot, for sure a major blow to the white house after weeks of asserting quote/unquote absolute immunity in preventing key witnesses from testifying in the house impeachment inquiry. nbc's tracie potts joins us now with the latest from washington on that impeachment inquiry and a big name is going to testify, right, tracie? >> reporter: hi, there, dom. good morning, everyone we think that person may end up testifying and interestingly, this is actually a ruling about a former white house lawyer's testimony in the russia investigation, but it could have big implications

for impeachment. a federal judge has ruled that former white house lawyer don mcgahn must obey a congressional subpoena to testify on russian election interference, but he can claim executive privilege to avoid answering certain questions. >> the judge appears to have done is say, uh-uh, not in america, you have legitimate investigations by the congress of the united states >> reporter: like impeachment hearings mcgahn's ruling could compel testimony from current and former white house staff who've ignored congressional subpoenas, like former national security adviser john bolton. >> he said he wanted an opinion from the court as to whether or not a presidential aide had to go in and testify. well, mr. bolton, here it is. >> reporter: even with the possibility of more hearings, the intelligence committee expects to report shortly after thanksgiving the senate is preparing for a trial, if president trump is impeached, but they don't know when. >> there's really no way to

know there's no set time. >> reporter: republicans say that trial will include testimony about joe biden. >> we're not going to have two systems where you just look at the republicans and you get a pass >> reporter: meantime, the president is defending his personal attorney -- >> rudy's a great person. >> reporter: -- as impeachment moves forward. in a letter, intelligence chair adam schiff has told lawmakers that the white house blocking people testifying, he calls it stonewalling, could actually lead to a separate article of impeachment. dom? >> all right nbc's tracie potts live in washington with the latest on impeachment. thank you very much. let's check on this morning's other top headlines. phillip mena is live in the newsroom with the latest good morning. >> dom, good morning at least six people have been killed and over 100 injured after an earthquake hit albania. the quake was measured at a magnitude 6.4. it struck near the coastal city

about 13 miles from the capital. officials say that one man jumped to his death to escape the shaking while another died when a building collapsed. emergency crews are now frantically searching for survivors. schools in the area have been closed until further notice. police in germany are on the hunt for a pair of thieves who they say broke into one of the world's oldest museums and carried out a brazen heist officials say the burglars smashed their way into one of the glass cases in the green vault museum in dresden and made off with priceless jewels, including diamonds and rubies. german media report the haul could be worth more than $1 billion, a figure officials will not confirm. need bread and butter. this year's candidates for a thanksgiving pardon from president trump have been resting at d.c.'s intercontinental hotel before the ceremony this afternoon. there's still time to vote online in the white house poll to decide which bird will get the pardon the loser will be just fine, too. regardless of who gets chosen,

both birds will live out their days at gobblers rest in virginia, dom, presumably with gobs of survivor's guilt. >> just -- i'm just looking at the hotel room that they have right now. it's probably better than anything -- >> pretty plush, huh >> yeah, better than i live right now. phillip mena, thank you. i appreciate that news update, and of course, the turkeys in the hotel. straight ahead, shares of alibaba surging in their hong kong debut overnight we speak with one investor who got in before their original ipo in 2014. plus, another city set to vote today on a total flavored e-cigarette ban as the industry continues to come under fire lddexcng ibas ck right after this i'm a regular in my neighborhood. i'm a regular at my local coffee shop and my local barber shop.

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keeping me from the things i love to do. talk to your doctor, and call 844-214-2424. stocks fighting for gains this morning after regaining their momentum with the s&p 500 and nasdaq hitting all-time closing highs. shares of alibaba getting a stellar start as the e-commerce giant makes its hong kong trading debut. and it's a battle of the trucks ford demands a fair fight in the f-150 and cybertruck face-off, as "worldwide exchange" continues right now. ♪ oh domino, all right ♪ welcome back and thanks for being with us on cnbc this morning. i'm dominic chu in for brian sullivan on this tuesday, november 26th, 2019. stocks are coming off another

record high-making day with the s&p and nasdaq both hitting those rarefied levels. the dow surging triple digits early on in the session, and it really never looked back, as you see here in that time lapse, partly due to a huge merger monday more than $50 billion in deals are sealed in one day alone. topping that list, a $26 billion deal between charles schwab and td ameritrade in the u.s. retail brokerage business on the heels of those numbers, here's how your money looks as we are halfway through the 5:00 a.m. hour in new york trading. stock futures right now showing what could be just a marginal loss at the start, again, coming off these record-high levels the dow would open down by 11 points, the s&p off about one and the nasdaq off two to three points as well on the bond side of things, we're seeing a slight tick down in yields. the benchmark u.s. treasury note is currently yielding just below 1.75%, and just a little above 1.59% for the benchmark two-year treasury note yield. let's check on the asian markets now, ending mostly in positive

territory. you could say that the nikkei in japan up one-third of 1%, the hang seng off 0.25% and the shanghai about flat on the day. it's happening in the early european trade is mirroring some of that, although we have some losses german dax off 0.25%, the cac in france 0.1% declines and ftse 100 in the uk 0.1% in gains. now to the latest on the u.s./china trade talks china's commerce ministry says vice premier liu he spoke with steve mnuchin and robert lighthizer overnight officials say both sides talked about resolving core issues of mutual concern, also reached an agreement on how to resolve related problems according to a state-run newspaper, china and the u.s. have reached a broad consensus on a phase one trade agreement that includes removing tariffs but some key differences still do remain. meanwhile, house speaker nancy pelosi says the approval of the trade agreement between

the u.s., mexico and canada, the usmca, is within range in the house. pelosi adds that democrats need to conduct a final review of the agreement following a report from trade representative robert lighthizer the two sides have now been at odds over the enforcement of certain labor provisions. for more on what these latest trade developments mean, let's bring in head of ethics strategy, jane foley jane, as we see some of the volatility not exist on the stock market side of things, we are seeing some churning happening in the fx markets. where have there been the real hotspots in reaction to the trade developments we've seen, not just in north america, but in asia as well? >> i think it depends whether or not we're looking at like the one-day view or whether or not we're looking at it over the last few weeks, because i think it's fair to say over the last few weeks that there has been a boost to risk appetite because at least the trade talks are still continuing, at least the two sides are still at the table, and that certainly has been enough to push up hope, really, to push up risk appetite but at the same time, i think if

we look over the one-day view, i think you could probably identify signs of fatigue. maybe the markets are beginning to think, we still don't have a date, we still don't even have a location, we still don't even know whether or not this trade deal is phase one trade deal will be signed this year, and even if there is a phase one, what about phase two and perhaps that's even going to be impossible. so, perhaps on some level there are a few doubts creeping in, but i think it's fair to say, generally speaking, as long as those trade talks are carrying on and that there is signs of risk appetite being elevated and yesterday, of course, we did see that in the stock markets, but then again, i think we can go back to really a story that ben bernanke's been talking about for years, and that is the savings glut there is so much money chasing very little yield, and i think ultimately, that's one of the really big factors that is really supported stock markets this year. >> so, with that in mind, the interest rate differentials, everything else that's happening with that complex have led us to a point now where we are seeing activity with regard to capital flows and everything else, and

certain strength in currencies i look right now at dollar/yen it was just a few months back we were on a 1 0i7b 05 handle and now we're shy of 1.09. what exactly does that tell us you mentioned the that of risk appetite, but is there also a sense that capital movements are perhaps starting to show at least a little bit of the trade influences as well >> i think they are. again, 1.09 for dollar/yen immediately says to me that the risk appetite is quite high and you see exactly the same in the stock markets as well. but of course, that doesn't mean to say that the markets are without risk certainly, if you listen to what powell said, if you listened to his speech yesterday, you'd think yeah, the glass is half full certainly that goes in line with dollar/yen at 1.09 but if you look through the u.s. manufacturing data, there are certainly signs of weakness there and signs that the consumer potentially could be back to bend to slightly weaker levels, too. so i think the rest of the economic data that's going to be

squeezed in the next few days will be interesting and the economic data for the u.s. going forward will still be highly interesting, because essential from these sorts of levels, if we get the market changing its mind about the relative health of the u.s. economy, i think certainly we could see risk appetite really take a dive into the early months of next year. >> all right so, with that in mind, you mentioned the idea that there could be risk appetite moving one direction or the other where right now are the biggest hotspots right now, the biggest flash points where could we see the most activity given what could be developments on the trade front or elsewhere going into 2020 >> well, certainly i suppose that the stock market as you say has been unpinned by a lot of m&a activity, too. foreign exchange market over the last couple of months has been relatively quiet but if you think that there is going to be more good news potentially from trade in the shorter term, could perhaps get a lift, although it hasn't today.

but i think into new year, we do think the tensions with respect to trade will come back. we do think phase two is probably, maybe even impossible. phase three potentially impossible and to be honest, the reasons that you have these different phases are because it couldn't all be squeezed into phase one it seemed too impossible to get some parts of that agreement with china through so, still we think next year is going to be a year where there's lots of tensions between the u.s. and china, a slowdown in the u.s. economy we think that's on the cards as well so, next year i think there could be a real turnaround and dollar-yen could still be going lower as money flows back after merging markets and higher risk currencies back into safe havens. >> jane foley at rabobank, thank you very much. new this morning, a strong debut for alibaba's secondary listing in hong kong, shares rising more than 8% before closing 6.5% to the up side. the offering of 500 million shares raising more than $11 billion hong kong's biggest

listing since 2010 and the largest ipo year to date, a rare boost for the city after months of civil unrest. joining me now is the partner and head of research at manhattan venture partners, which was an early investor in alibaba back in the day. are you feeling pretty good about the way things went off for that hong kong listing today? >> absolutely. i think this was great for alibaba. it validates their business model, their business. it validates the hong kong exchange for the liquidity i think net-net it was good, a good strategic move on alibaba's part, to hedge against the turbulence in the trade wars and all that, provide liquidity and access to the mainland users so in many ways it was a good move and getting $11 billion doesn't hurt, so it's great. >> jane foley just mentioned this idea of what's happening with risk appetite around the world. risk appetite involves investing in ipos. there's a sentiment that has to be there present for people to want to wager on some of these big public offerings is it fair to say at this stage

right now that unless you're a big brand name like alibaba that the window for ipos has closed >> i wouldn't say that i mean, it's not such a clear way to say that. i think what's happening is the market has spoken. unless you have a good, sustainable model with a clear path to profitability, you just don't come to the market, okay the markets pretty much said that up front. so, i think it's still open. if you have a good model, i think companies will come there. it hasn't shut down. it has slowed down it's become more rational, which is good overall, overall we like a rational ipo market more than a rational market. >> that's an interesting point that you bring up. are you saying now as a venture investor yourself, are you saying that the sentiment has now shifted enough to where investors in the public markets now want to see defined profitability metrics in order for them to want to invest in the company? >> absolutely. the benefit of doubt premium that you got before that you will get there, i think that should come down, come back,

come down, pull back quite a bit now. so, people want up front, right off the gate, they want some clear sign that it's a sustainable business model with a path to profitability, like i said and it's just a good addressable market as well so, i think all that speculative element of this ipo market has come down or gone already. i think now you're looking at more rational market. >> all right, let's talk about addressable market because those words are tossed around quite a bit when it comes to plant-based meats. we talked about beyond meat and their ipo boom and then bust since then let's talk about impossible foods. i mean, if you take a look at this, it's reportedly now in talks with investors about a new round of fund-raising. according to reuters, the company's looking to capitalize on growing consumer demand for those plant-based meat alternatives, given rival beyond meat's success reuters adds impossible's looking to raise between $300 and $400 million to raise its valuation to between $3 and $5 billion, but the report cautions

that plans may change based on investor feedback, and that investor feedback is what you just addressed, right? >> that's a key point. you're not just going to get any valuation. i think even private valuations have come into focus now because i think they have to get more rational, which they will be i think it was never irrational for smart investors or careful investors, people who looked at it very carefully like we do but i think it always gets out of hand sometimes, you know, the frenzy and all that, because the products are good. the addressable market is great. it's very enticing to get in there. you want to be in it right from the ground level so, i can see reasons why you want to get there. but impossible foods is a huge market they're going after the meat-eating market, which is close to 1.3 billion globally, a huge -- $1.2 billion market here so, but it's going to be very gradual. there are some issues that need to be solved -- pricing and all that and nutrients and all that, but it will get there. but there is a huge market a lot of non vegetarians, a lot of vegetarians who can actually

come into this space so, addressable market is big. there's no question about it and impossible foods is a good player in that market. it's a soy-based product, but it's a good product and there's a good market for it. >> let's talk about another alternative that's out there and i mentioned this because one of the new york tabloid newspapers, the "daily news" is out this morning and the front page says "vaped crusaders," new york poised to become the largest city in the u.s. to ban flavored e-cigarettes. city council will vote later today on a ban of all flavored e-cigarettes except the tobacco flavor that measure cleared the council's health committee yesterday in a 7-0 vote. stores in the city will be banned from selling flavored e-ce- i e- e-cigs and liquids that go into any vaping device. you have been an investor in this vaping industry as well take us through how this is developing from an investor point of view. is it something you're scared of or something you're looking at saying, hey, we need to evolve this, and as an investor, we think the company can evolve with the times >> yeah, just to correct you a

little bit we have not been investors in there. we have facilitated a few trades here and there we haven't taken a principal position in there. so, that aside, i think overall there is a threat to this whole business all the regulators are on their back and for good reasons, health reasons and all that needs to be sorted out. i'm sure there's going to be some back-and-forth. and you have debts and all that, and you really have some big issues that you need to go over or resolve them. so, i think you're going to see some big headwinds, strong headwinds against the company. but overall, i think the fundamental business of tobacco addiction and all that, that's what they want to address. it's there there is a market for it but it has to be much more healthier track to that end. >> just a few moments left here. what's your quick outlook for the ipo market in 2020 >> 2020 is going to be good. i think it's going to lead off with airbnb, which is a big one. that's a good company, profitable already, growing very well, well diversified, other

than the core rental business. so, i think airbnb's there there are other tech companies, b-to-b companies so you will see a healthy and rational market in 2020, which is good. >> thank you very much for joining us, santosh rao. >> thanks for having me. shares of cvs getting a boost on one activist investor taking a stake in the country, the name taking an interest in the giant. plus, just in time for the thanksgiving holiday, an even longer version omopof noly that and other stories you will be talking about next. so, today you're going to leave your phone with a guy named flip. (ding) but it's more than your phone, it's your business, your customer data, your sales figures. and who can forget, those happy hour selfies? not flip. (honking, gasping) this isn't working. introducing samsung business security solutions, with knox software. with the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isn't.

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non-gmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time. welcome back to the show let's check some of the other stock movers of the day today. you've got right now starboard value taking a stake in cvs health the "wall street journal" reports the activist investor has held talks with management the stake appears relatively small and "the journal" says the talks held recently were friendly those shares right now in

extended hours trading about flat pbh with better than expected results, seeing higher demand for brands in europe pvh raising its full-year outlook and up 0.5% in extended trading. and revenue rose by 19% for the maker of video compression and image processing technology ambarella, says it's ramping up the automotive and security camera markets shares are up 5% in premarket. let's find out what else you will be talking about later today. top for this morning's top trending stories and we turn to mr. frank holland. frank, i've got to say, i'm still having some visions of the f-150 versus the tesla cyber truck. >> there's images and video out there, dom we'll get right to it. tesla's cyber truck is in the middle of a truck showdown things started during the cybe truck's reveal ceremony when elon musk played this little video of a vehicle pulling an

f-150 in a tug-of-war battle, but critics, including neil degrasse tyson, the astrophysicist, were quick to point out the competition may not have been entirely fair. one ford vp challenged musk to a true apples-to-apples challenge. his reply -- "bring it on. you know how he gets. >> all right, this is also fun because if you watch that video, what you're seeing is that f-150 with only the rear tires spinning -- >> yeah, it's a great visual for tesla. >> so, i'm trying to figure out whether or not both vehicles were engaged with all four of their wheels at the same time -- >> that's the important distinction. >> or not. >> that's the apples-to-apples. >> if you had a fair competition, i'm curious as to whether or not you do this and you have the top-end ford f-150 versus the top-end tri-motor cyber truck and who would win. >> a couple factors. it looks like this is a rear-wheel drive ford f-150 with nothing on the back. also, the tesla pulls first and pulls the slack, so that kind of

gives it the advantage number three, the tesla is a lot heavier, so it has a lot of advantages in this format of a test that's why everybody says apples-to-apples for example, if you're towing a truck out of a ditch, then you have the slack if you're doing a tow-off, for lack of a better word, no slack because you want to start off on even. >> or put a bunch of weight on a sled and see how fast they can go >> exactly that's the apples-to-apples. all right, holidays are coming time a lot of families play games. i love monopoly and we all know a good game can last for hours, but hasbro apparently just doesn't think that's long enough the game maker announced a brand-new version of the classic board game called "monopoly longest game ever" edition, appropriate name this version will take at least a full day to finish, and the only way to win is to own every square on the board, and the number's been bumped up to 66 properties from the original 28. and now there's only one dice, meaning it will take longer to get around the board you can't roll doubles and get another turn i don't know how you play in

your house great game i love to play it, but it probably shouldn't be extended because it already takes a long time. >> monopolies take a long time to construct. >> long time. moving on to pop culture news taylor swift's public spat with music executives is shining a light on the struggles most musicians face to gain control of the ownership rights to their music. rights typically go to the record label for a specified length of time however, a few artists have been able to regain those rights. hit-makers like prince, rihanna, u2, jay-z, stevie wonder and ll cool j. own their own masters. michael jackson owns the late singer's music as well as a sizable chunk of the beatles and taylor swift have looked for future rights to their music. >> this is a big deal and taylor swift has shined a light on it recently, but this idea that there is so much logistical and legal, i guess webbing that goes into how these artists actually get their money, get paid, perform, what they can, what they can't, and so this is obviously a big story for a lot

of folks out there in the recording industry. >> yeah. decades-old situation. have you ever watched the movie "ray"? that's a big part of the movie, trying to get his rights and believe it or not, music sales are up year over year, double digits, including cds and vinyl. >> frank holland, thank you for the trending stories. in sports, the baltimore ravens looking to keep their hot streak going, taking on the los angeles rams in "monday night football." first quarter, lamar jackson connects with marquise brown to put the ravens up 7-0. minutes later, the duo repeats, adding to baltimore's lead ravens head into the half up 28-6 and in the end the rams don't recover at all baltimore pummeling l.a. the final score, 45-6. the baltimore ravens going into los angeles and putting the beatdown on the rams. well, on deck for the show, the moves you need to make in the trading day ahead. plus, famed investor bill gross warning of troubles ahead for markets in the year 2020 the challenges he says stocks will face. and then tomorrow, join us right here for a "worldwide

exchange" exclusive. former sears chairman and ceo, former abercrombie & fitch executive chairman and former chicago fed chairman arthur martinez his take on the retail biz, amazon, the consumer, the u.s. economy, all of those when "worldwide exchange" is back righafr ist teth

listening and observing are critical skills for scientists at 3m. one of the products i helped develop was a softer, more secure diaper closure.

as a mom, i knew it had to work. there were babies involved... and they weren't saying much. i envisioned what it's like for babies to have diapers around them. that's what we do at 3m, we listen to people, even those who don't have a voice. at the end of the day, we are people helping people. a live shot of new york city right now. 5:54 a.m. eastern time time for your executive recap, the headlines in 60 seconds. google says it's fired four employees for allegedly sharing sensitive information on the company. if a memo sent to workers yesterday, the company says it made the move after investigations concluded the employees made clear and repeated violations of google's

data security policies the terminations come after employees held a rally friday to protest what they claimed were retaliatory investigations by google fiat chrysler and puget owner are moving forward with their merger, according to reuters. the automakers have told employees they would sign a binding agreement on the matter in the coming weeks. once finalized, the company will become the fourth largest automaker. and bill gross' warning that the u.s. stock and bond markets may face a tough road ahead in 2020 gross tells the "financial times" the struggles will be a result of fiscal and monetary stimulus losing their oomph. he adds that gains will be much harder to come by because central banks are becoming more cautious about the impact of continued low interest rates well, for more on bill gross' take, patrick palfrey is senior equity strategist at credit suisse. those are some fairly pessimistic words from the former bond king is that an environment that you think is going to develop in 2020 are we going to be doomed for mediocrity in the stock and bond

markets? >> we don't think so we see the data somewhat similar to how he sees it. we believe the fiscal stimulus was really the catalyst for the economic growth that we saw in 2018, and the reason we're seeing the deceleration now in economic trends. but what's interesting is the industrial data is in the process of bottoming that's really where you want to focus. the bounce in ism manufacturing, in industrial production, is going to propel stocks higher in 2020, and that will be the driver of market success. >> what do you say to those people who proffer that the industrial cycle is not bottoming out, that we do see still these ism and pmi numbers coming from all over the world that still are languishing at levels below 50 that are going to hold there for a while and that the interest rate environment is bearing that out? we have seen the tick lower gradually over the past few weeks in the ten-year note yield as well, signaling maybe people aren't worried as much about growth or inflation down the line. >> looking at economist estimates, what they see is the

industrial production bottoming late 4q/1q 2020, so we are in the process of witnessing that now. many of the readings are pointing to stabilization. we're not quite in the bounce, but we are in the process of stabilizing. that's really going to be the opportunity for the data to move higher and i think it's important we're not going to see a tremendous jump in industrial activity rather, a mere stabilization and tick higher in some of those measures will be positive enough. >> what is the strategy then in that kind of environment where you are not seeing this v-shaped bounce in manufacturing or global economies, but this kind of bottoming process, how then do you kind of go into positions? how then do you get invested and where? and do you just leg in little by little, or do you try to find defined points to get into the market >> so, i think you need to get in now to that trade so, we recently upgraded a lot of the pro cyclical sectors -- industrials, materials, financials those are areas which are going to benefit from the bounce in industrial data. it's going to be too difficult

or too late to see it when it actually happens you need to get in as it's happening now. so, the stabilization in the data provides you the entry point that you need, because when you see the data actually move, the trade will actually already be over. >> all right, so, if the trade is over then, where exactly will we see some of the value creation i mention this because we mentioned earlier in the show, small-cap stocks have been range-bound for a while, haven't been validating i guess the record highs elsewhere in the markets. transports are still trying to find their way a little bit back towards the highs. what signals are you watching for in the coming weeks and months to show that this market really does and has the legs to continue the bull run? >> yeah. so i'll give you two signals fall ism manufacturing is the most best and timely indicator comes out at the beginning of the month, gives you a sense of future expectations for industrial activity. the second is interest rates to the extent we see the ten-year continue to move higher, that will be the sort of catalyst that also corroborates what we're seeing there. >> all right so, interest rates as well big picture there. patrick palfrey over at credit suisse, thank you very much.

we appreciate it. well, that does it for "worldwide exchange" this morning. remember, stocks hit record highs yesterday. the dow industrials would fall by about 10 to 15 points if the future moves hold into the opening bell and down about seven points now "squawk box" picks up that markets coverage and it begins right now. good morning stocks coming off another record-breaking session. today's dose of china trade news, a phone call between top negotiators. details straight ahead a new report on disney plus says that the streaming service is adding an average of 1 million new customers a day. plus, activist activity in cvs. we're going to show you how the stock is reacting. it's tuesday, november 26th, 2019, and "squawk box" begins right now.

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. and this morning, the u.s. equity futures are basically flat this comes after a big day for the markets across the board yesterday, though. the dow wasup by almost 200 points yesterday, a gain of about 0.7% the s&p was up by 23 points, and then the nasdaq was the big gainer yesterday it was up by 112 points, which is a gain of 1.3%. it was the best day for the nasdaq since october 11th, and it means that all three of the major averages closed at record levels once again. this morning it looks like the dow is indicated down about 8 1/2 points s&p futures down by less than a point. nasdaq is barely lower as well then if you take a look at the treasury market, the ten-year note this morning, looking at yields slightly lower than yesterday at this point. 1.745% as we said at the top of the show, top u.s. and chinese trade negotiators held a phone call last night, according to