david. larry, thank you for being here. >> this is it for us >> yes >> it's weak >> it's a pleasure to be on with you, two of the best in the business >> you have been -- it's hard to go back to the farm, my friend >> it's more this week because of the french tariffs. >> you've had the best >> you will be back here. >> now you go back to the rest >> we will be back with more "squawk on the street" [ music playing ♪ i feel like bustin' loose >> good thursday morning, welcome to "squawk in the street". i'm carl quint n-- quintanilla retail, oil, biotech and more. 23 will get to all of that europe has been mixed this morning. watch bonds, claims come in at $203,000, that is the lowest number since april the roadmap begins with trade

tea leaves boosting stocks china says trade reps are in close contact with the u.s futures do point to a second higher open. >> plus, putting mergers on notice elizabeth warren drafteding legislation to reverse mega mergers. and a shakeup at united airline, oscar munoz stepping down president scott kirby will take over next spring we do have breaking news on gm for that we will go to phil lebeau in chicago. a busy day, phil. >> reporter: it is a busy day, phil general motors announcing it is forming a joint venture with lg chem the two companies will be creating an electric vehicle battery plant in northeast ohio. it may be if lorn lordstown or outside lorsdtown where gm used to have a plant. they sold the plant earlier this year gm will invest up to $2.3

billion into that joint venture with lg chem located near lorsdtown, ohio and create up to 1,100 new jobs this is a move many expected they talked that it had plans to add jobs in northeast ohio we will talk first with gm ceo mary bar >> reporter: that is coming up at 9:35. you don't want to miss this interview. we will talk about this and gm's effort to really jump start it's electric vehicle program because it has while they put a lot of money into it it has not taken off we'll see what she has to say about the future western it comes to these guys, back to you. >> phil, i had ppg on the other day, michael mcgarrion. >> reporter: yes >> it was interesting, he was talking about the batteries are harder than people realize they have to be coated and coated and coated again and the technology isn't good for anyone, do they have break through technology that can be different from what tesla has?

>> reporter: they are getting closer in terms of bringing down the kilowatt per hour. that's really the metric everybody focuses on and the magic spot the point where you can say, look, it's equal in terms of costs for an electric vehicle versus an internal combustion vehicle. you want to get that kilowatt per hour under $100. they're closer to 150-160. tesla, by the way, is the lowest in terms of kilowatt per hour battery costs. but they're getting there. they are making these strides. you got to make this investment, jim, because eventually, there will come a tipping point. is it next year? >> no. is it four years down the road eh, who knows? but you do need to make these investments. that's the significance of this for general motors >> clearly not the only story on your beat, phil, as we got news at the top of the hour at 8:00 that munoz is leading you on top. do you want to tell people who scott kirby is

>> reporter: if you are not familiar with the airline industry you might be saying, who is scott kirby scott kirby is viewed as the best structure, route performs, growing profit margins, growing revenues in the airline industry hands down he has long been viewed that way when he was at america west then u.s. air then american airlines, he was doug parker's right-hand man. united brought him over if 2016 and he has been the architect behind the rebound over the last two years. remember guy, he said at the end of 2018, we will add 4% capacity in '18, '19, '20 everybody said, no, terrible move guess, what it has paid off in spades for united airlines, they have boosted their revenue, boosted their profit margins kirby is by all accounts, he is the person to watch in the airline industry so from united's perspective, it was time to bump him up to that ceo job. oscar becomes executive chairman

in may he stays in that role a year oscar munoz can take a bit of a victory lap here jim, you talked to him a number of times they were in bad shape in 2015 >> that is not the case anymore. >> that is largely due to oscar munoz the moves he made as ceo and in particular bringing in scott kirby saying fix us, fix the route structure. >> phil, i was in shock i interviewed oscar a couple peeks ago in san francisco i spoke to him this morning, he said look the thing i did is transition the guy is the right job the new guy is trivenlth he's been around forever. one of the things off his legacy is employees they had a terrible situation. i think oscar works miracle with employees. >> that won't go away. >> that will help them maybe you can speak to the culture he was able to rapidly change things. >> reporter: oh, it was

terrible i don't know if i'd call it toxic back if 2015 look, united space here in chicago. i fly united a lot when i'm traveling. back if 2015, you used to have flight attendants who would say from your continental based crew, thanks for flying this flight they would openly say to passenger, well, i'm a part of this airline but i like being a part of continental. i don't like being a part of united they would openly say that that has changed >> that has gone away. oscar munoz set out to see if employee relations improved. they have dramatically that's reflected in the performance at united. >> i think in terms of people saying, wait a second, sudden departure. as you mentioned, he's going to be executive chairman, not chairman he will be very, very active he says you will be the face of the place and this is as of 8:50 this morning he's just saying to me, look, you are not getting rid of me yet. i think that's important to point out. >> i agree >> in a year, we will be seeing executives, this is not one of

those cases. >> reporter: and it's not health related. ive had a number of people ask about this because he had the heart attack in 2015 the heart tran plant in '16. he's in great shape. you know, he is not hurting right now. and i think for oscar munoz, this will be, if youwill, the feather in his cap if he can make a smooth transition here to scott kirby, he can say, you know twharks i came in, i left they were here we had a smooth transition >> are you right if terms of good times my wife sent me a picture of oscar and i having a good time at the fleetwood mac concert going out on top that's the way you want to go out. you really do. >> phil, we'll see you at the bottom of the hour with mary barra. meantime, a day after snapping that three-day losing streak, stocks are poised to open higher on optimism around u.s.-chosen talks. the s&p is on pace for the worst

weekly performance since late september. jim. we got a slew of news today, rather it's tiffany, rh, costco, five below and a lot more. >> look, i've come back to the claims i mean, my big worry was adp was bad. maybe we will have some sort of sudden falloff there are two companies that are really important for today's narrative in terms of what retailers are doing. rh, terrific number, where, the agreement said, look, basically we've mitigated the tariffs. the one point our customers are willing to pay, way up and then five below. this is the first company that actually is making the main off the tariffs. they have more than mitigated. they've raised price it's not just five below, it's sticking we keep thinking why isn't the xi falling apart from the tariffs? you talked to five below they have the best numbers they've had. the answer is, it's a great suspension. >> what if we have to change the

name to 6 below? >> he is doing a 10 below. >> i asked this question of the number of executives we've had on, in the retail industry because they have taken costs out of the business. >> right >> they've garnered efficiencies they might not have gone over, how they had to do it. if, in fact, you had the tariffs come off the margins are still going to be there and they're going to be even stronger than they are right now. >> that would be just like when we saw plastic go up a lot of the companies raised prices, and plastic went down. did anything go down at the' urmt >> no. >> it's by procter & gamble. transportation costs went down, stocks will point to the strength that they had price increases and stu and it cost them pretty amazing >> meanwhile, people have taken note of china stocks with relative calm given all the trade uncertainty, some are beginning to suspect state sponsored help, right?

they get more aggressive on stimulus >> i think they have to. there's been when i was talking to ppg, i mentioned it with phil, their biggest, best market is chinese cars. they've seen a bit of a hiccup cars are the leading indicator of how they are doing. we saw with nigerian options, you call it, today is minerals minerals, that protect remember, david, we did a differing alpha and hedge fund like china like tec, teck. not tech teck >> a couple years ago. i thought there was some concern at ppg in terms of you a on the pus cars eventually and what that will mean for the coatings business >> it's funny. >> for example, exalta that's been for sale. >> some think they will buy them >> we heard there was concern about that part of the business. what autonomous will be in

overall car buying and what that will mean. >> i was hoping he would be more bullish. and autonomous, i was hoping nvidia would be autonomous and the new google autonomous is being pushed back, in terms of ppg, i mentioned to phil, let's say you have slush and you have sals in the east. remember a lot of teslas sold in california let's say you have bad weather those batteries are suspect to lots of coatings that's what michael mcgarish was saying to me phil said they haven't worked it out yet. now, tesla's got something cooking, no doubt about it but gm sure hasn't worked it out. a lot of it has to do about the cost of the battery. >> just if terms of covering the battery properly so it doesn't get corroded >> right >> that of course is mr mr. mcgairish is going, one of the issues you don't want is fire >> fire would be boyhood >> fire bad. right. >> it's kind of interesting we

are looking at g with this announcement on evs at the same time we are getting reuters with sourcing on the pricing of aramco right? how is oil going to exit into our lives over the next ten, 15 years. >> i think the cars are using less oil, which is one of the reasons why oil is not going remember, we were a net exporter for the first time oil-related products >> right >> and you know, i think that the long curve, five years is not changed. it's still $52 so they can raise, that i can cut. but it's $52 a lot of that, there is a lot of false, fake news yesterday about u.s. and how much it can produce. u.s. can produce much more it's just not economic >> but to carl's question, we spent a couple years ago, a lot of time talking about autonomous we haven't talked about it as much it has certainly fought lived up to what had been at the time the expectations that it would be here soon. autonomous vehicles. but it's still coming. >> it is coming.

>> and there will be a day when you conceivably, certainly in china, which is moving fast and can make a city in order to make it hospitable for autonomous cars even if they don't have the technology, like the lighter technology we won't give them. they'll figure out a way my point is it will come there will be fleets of these cars conceivably it will have a dampeningesque for overall automobiles. >> ppg was saying in china, they can wake up tomorrow and say you know what, every car has to be electric so they can wake up and say every car has to be autonomous the accident the fatal accident with you autonomous that sets back that industry - >> if there are pure accidents, do you need coatings guys who are getting that, repainting that you need. every time you bump a butcher? >> remember what maymo says -- waymo says if you have autonomous technology you would

never have humans drive a car. autonomous doesn't get drink they don't get drowsy. >> texting this is the main thing, you drive a highway, it's unreal how many people you see watching a movie. >> the autonomous cars are dramatically safer but the publicity on a death is so horrendous. it's the right now the fatalities are it's like the equivalent of a 747 crashing every month. but we found one fatality and it set you back i remember they went to nvidia, they owe owe nvidia does great simulations. you have to simulate 5 million times what happens in a snowstorm. it's a big setback it's going to happen >> if tesla piles up the data that those cars are driving. >> we are getting speaker pelosi on the tape asking house judiciary to proceed with house impeachment. >> reporter: that's right, house speaker nancy pelosi now

announcing she will ask lawmakers to draft those articles of impeachment, speaking to reporters, she said that the president's actions amount to a violation of public trust and of the constitution. >> sadly, but with confidence and humility, with allegiance to our founders and a heart full of love for america, today i am asking our chairman to proceed with articles of impeachment i commend our committee chairs and our members for their somber approach to actions which others, which the president had not made necessary in signing the declaration of independence, our founders invoked a firm reliance on divine providence. democrats too are prayerful and we will proceed in a manner worthy of our oath of office to support and defend the constitution of the united states from all enemies, foreign

and domestic so help us god >> so pelosi there framing this in the historic am context of the constitutional convention referencing the founding formers, which she did not outline specifically what those articles of impeachment will be, appearing to leave that to the judiciary committee to decide. however, we have a sense how they may draft those articles based on the hearing held with legal scholar, they talked about abuse of power obstruction of justice as well as obstruction of congress. so we will see what the time line for additional hearings and for when that vote will actually happen for lawmakers to decide whether to move forward with articles of impeachment guys. >> we should note the president did tweet, if you are going to impeach me, do it now, fast, so we can have a fair trial in the senate and so that our country can get back to business

we'll keep you apprised of further headlines as we get them out of capitol hill. we have upgrades of nike, some price target increases only a that bet and apple, sage down 64%. more "squawk on the street" from nyc straight ahead we made usaa insurance for members like kate. a former army medic, made of the flexibility to handle whatever monday has in store and tackle four things at once. so when her car got hit, she didn't worry. she simply filed a claim on her usaa app and said... i got this. usaa insurance is made the way kate needs it - easy. she can even pick her payment plan so it's easy on her budget and her life. usaa. what you're made of, we're made for. usaa ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud.

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welcome back to "squawk in the street". time to squeeze in a mad dash. we have about ten minutes at the opening bell nike is a feature for you. >> wow, what a great piece from goldman sachs, upgrading to a conviction buy list. they're talking about they're on the cusp of a sharp acceleration in earnings per share with china being the key driver so a lot of people would say, listen, i'm worried about china trade talks. maybe i should sell nike wrong. i remember, john donahdonaho, iw the ceo. i happen to have bill thurman to introduce him, first taking over ad service now. >> he is taking over at service now, donaho has moved over to run nike parker is -- >> parker stepped up but i have to tell you, a 112 price target this is going to be the big mover in the dow i think it will remind people

once again, don't panic over china. the companies you think are impacted aren't being hit. remember, there was a note about apple being strong like this nike piece will control the dialogue of how companies in retail are doing today. not individual retailers >> there is a applause there means somebody in the unicorn. marines toys ftots all right. coming up right here, gem motors ceo mary barra and the ceo of lg on a company joint venture stick around

future study here as we juggle all kind of headlines a new stimulus package in japan. watching reports about opec and production cuts. the speaker telling judiciary to move ahead with articles of impeachment. futures pretty steady here the opening bell is a few minutes away, followed by the ceo of general motors mary barra. don't go away.

you are watching cnbc "squawk" open the street the opening bell is coming up in under 3 minutes on a busy thursday we've covered some of the retail news, we will talk to mary barra. >> it's funny. they're saying they had too much revenue growth turned around. and maybe that's a signal that

this incredible cloud stock, could be trying to find a bottom work day being the worse i don't know this is a shock tore me. it's really good >> but there the a concern microsoft will eat them up buy them, eat up tear business because it's a canadian product that owe time will overtake. >> a lot of people think microsoft is going to shut down the cyber security industry and they haven't yet aagree with you. >> they do have a product out. by the way it's a little like drop box you are right, that is the big achilles heel. >> the question, i guess he was addressing it this morning on "squawk." >> we will benefit from stifel

upping the alphabet. they were at 132005 and crititi. >> he tried to trade it. too cute by the way hsbc comes out with the anti-facebook piece and we didn't get to talk, speaker pelosi starting to talk about the idea of regulating facebook. this is that whole sasha baron cohen the speech >> it's all platform >> 1996 law. it goes back to 1996 the beginning of the internet as you know it. 30 >> it is literally the great margin enhanceer if you can run anything your plans, your client is the advertiser. >> we'll get the bell here

the s&p 500, it is the toys for tots celebrating the 72nd anniversary. stephen colbert. trevor noah. john cri zin ski, i believe. >> do you see prophets there six times earnings >> it is trading in the s&p. it is cheap, many would would say, today is the first day the trade will trade viac five or 60 million shares out. there's continued concerns, of course, ability their ability to well, john malone talking with me about sport rights. how dependent they are on the

nfl in a world where everybody has a direct-to-consumer platform they are kind of taking a more hybrid approach. >> correct. >> a lot of content for other platforms and to support their own. do they have enough international reach. enough scale >> my travel trust owns it, because it is a cheaper stock. >> we know what's happened since they announced the deal the synergies were not what many investors had anticipated in terms of the number then you had cash flow projection, when we saw the proxy that were below sort of what people anticipated at least in terms of what they were going back and forth. to your point, it's very cheap >> inexpensive they were not happy with john malone's view that they're not good at international. >> no, they were not. >> i believe that the combination is going to have a lot of synergy, but i understand that it is in the content

business where they have football content they come back and say nfl loves the quality of our production? they do let's fought forget, fox is not this small company. fox has a 21 billion market cap, sports and fox news and fox business and there as well and the network, it's incredibly important as well. so the nfl the question of will amazon come to play? will there be deals that are different in a way that they hide off certain things and you have to pay a lot more >> this is not something that is

a declining asset. >> that's what some who are critics say it's still about cbs and viacom's ability the ncaa also. >> don't forget. the masters is here. i saw it >> yes, it is. >> look i think the quality of nbc, cbs and fox football is they represent them the way nfl loves. >> the big blowup, of course is sage, their ra putics. this is a depression druchlth it d ing /* dug -- depression drug. >> i've had dr. jonas on several times. this is a very important drug and can i just say that major depressive disorder, mdd

along with suicide may be the topic other than alzheimer's, may be the toughest. i know allergan and being bought, but this was supposed to be the magic bullet because they had some stuff against post-partum depression it's a bad blow. people need this it didn't do the job. hard, hard illness the allergan one is good it's real, people should watch it >> this will take you back to october of '17 before they got a approval but biotech is not for amateurs. >> at the same time david didn't even get to tell a story about a $3 billion deal. it was actually a very significant deal it's one we are hearing over and over again, biotech farm team. >> stillis purchase 100 premium. >> when your company gets taken

out it's premiums you can't imagine and it is punishing. particular when it's one drug. >> a lot of people feel that we don't know whether they told them to go ahead major depressive, suicide is an epidemic in this country unlike opioid and suicide also involved and this was a hope. it didn't pan out. >> we started the morning talking atmosphere about oscar munoz leaves as the head and at expedia and today macy's >> we had help on this hal lortop, one of the great what, what >> earlier, you were like, huh >> even frank blake. the number one retail. if you go back to the macy's comps, which, by the way was not well applauded. >> no. >> the numbers weren't that

good gannett actually at one iton the turned it over to lawton he's the man behind the initiatives that will save us, destination businesses, backstage, he gave it to lawton to talk about. >> he's selling tractors >> david, tractor supply when i go to my tax supply on route 202, you will end up buying carhart clothes you will wear on friday along with will when he takes his tie off. >> that's frost. wilfred. >> i just tell you that tractor supply is far more than tractors it's what you do see you don't go outside it's gloves. it is amazon proof >> it's a good pair of socks >> you know what they do they have vet narns. -- veterinarians c. chris -- in my -- >> in all seriousness, it is a

far larger cap company than macy's >> some say it's taking a sip. >> it's the key to this market tractor supply i remember those days. >> those were the great days i can tell you the compliments that connect them make you feel like uh-oh. >> only been a couple years. meantime, gm joining forces as we said earlier to build a new battery plant near lords the town, ohio phil lebeau has that. >> good morning, let's bring in mary barra, chairman and ceo of general motors as well as the ceo of lg chem they join us from the gm battery lab in warren, michigan. mary, let's begin first off with you. this joint venture, you guys talked about it with the uaw, you were thinking of building this how important is this to the transition gm is planning for electric vehicles? >> well, i think this is

incredibly important to the transition to electric vehicles. as you know general motors believes in an all electric future this is an important part to make sure we have high quality electric vehicles that are also affordable we're very excited the deal came together quite quickly because of the long relationship we have with lg chem we're very proud of that and honored to be anouvensing the great venture today. >> where are we in terms of the industry moving the costs of electric vehicle batteries lower to the point where it's not a huge difference between an ev and an internal combustion vehicle? because many people believe, we're not going to get there until 2024, 2025 at the earliest >> you know, first of all, we are pleased to be launching with general motors to launch this joint venture. i think we can bring the best battery technology known no monkind to general motors

together i think what that does is to help gm and by working together to create all future electric vehicle a dream. i think we can do that by way of bringing innovation and research and development, to bring the costs down, as you mentioned i think there is a technology solution to enable that. and there's obviously a component of productivity element of making things happen through joint venture with gem motors. >> i have to put you on the spot would you target a date when we see these db batteries bring the costs down under 100 kilowatt per hour >> we are working together i think one of the objectives of the general motors is to bring the costs down i think within a couple, three day, we will be in full operation, we will see a lot of progress in the areas that you mentioned. >> mary, you got an all electric pickup scheduled to come out in

2021 your competitors across town ford are planning to roll one out. you saw tesla roll out its cyber truck a few weeks to ago how big will the electric pickup be in your opinion >> i think it can be significant if we focus on the customer. we have to understand what an electric pickup truck driver is looking for and that's what we're intent on dock, building on the tremendous knowledge we have of the pickup truck mark. so, really identifying and focusing on the customers the way that i think that market can be very significant and we're excited in the not too distant future to share what our entry will be and as you know, we've confirmed that we will be launching in the fall of '21. >> i know i usually don't ask you to comment on competitors. you seen the cyber truck you saw the unveil what's your reaction what did you think of it >> well, i think you know it's the customer's decision to decide, not general motors certainly not me as the ceo of gem motors what i can tell you, though, i

couldn't be more excited about our battery electric truck and i think it really, it capitalizes on all of our knowledge of trucks. so i'm excited to get the reaction from them >> one last question, with regard to pickup trucks. alex potter, analyst from piper jaffre out with a note talking about the future of electric pickup trucks. he says this, the more we dependant considering that possibility, talking about electric pickup, all other pickups trucks might be pretty fronty he is saying your silverado, it's a crummy truck, in his opinion and fought just you but all other internal combustion drugs. what's your reaction to that statement? >> well again, i think we have to look at what the customer wants. and the customer has shared with us that whether it's the chevrolet silverado and sierra light duty and heavy duty, it is meeting tear needs from a functionality that a truck provides we are also seeing people wants

to drive trucks because trucks are cool so i think there is a world where both will exist for a very long period of time and we're excited to be in a leadership position as it relates to the overall truck mark and we think we have a very strong battery electric truck that will meet consumer needs and i think that's how you win. >> that's next 2021, correct >> correct >> mary bar remarks and hak-cheol shin joining us, the lg ceo joining us. the first from the gm battery lab in warren, michigan. they will be adding 1,100 jobs in northeast ohio for this new battery cell production plant. guy, back to you. >> we appreciate you bringing that to us our phil lebeau. jim, does it alter your view of gm in the near chart >> i think this is 21 of those you are guilty until proven innocent now in this industry. i think that's a shame, because it's a great industry. comprised of poo lot of jobs as you mentioned a thousand jobs i don't know a lot of people in that area.

the unemployment rate is so low in some parts of the country no, i can. i hope, remember pan a sonic had built a battery in 2008 for tesla. they have been the best in show. i need to see a step function, not just in price, but somehow in distance. because it's still the biggest bug-a-boo for people that want to take a from infrom new york to washington, new york to philly >> right get that miles per charge up. >> they don't want that -- >> range anxiety >> i have road rage and range -- remember the road rage incident i had driving -- never mind, it's in the book in the glove compartment no, i'm the guy. look in the glove compartment. it was a different time. >> dow is up actually 3 points we lost to some of the early gains. bond market's active as well let's get to rick santelli at the cme. hey, rick. >> good morning, carl. you know, we were all highly a way they're today initial

jobless claims and continuing claims would have distortions due to thanksgiving holiday, especially so late in the month. but having said that look at interday of 2s you see the way it bottomed? well, it bottomed, yields started going up right after the release of initial jobless claims it was a good number 223,000. that's next lowest since april when we were at the lowest levels since 1969. so it is good news, most likely there will be a revision pretty much the whole curve looks like that two-year note chart and it's basically a parallel shift on the curve, meaning you know we are up about 3 basis points from 2s all the way out to 30s the ten year in particular really gives us a nice glimpse of what we should be paying attention to in a market that really seems to have a hard time, a struggle to push yields higher as we go into the end of 2019, so this chart starting in late october gives you a nice view you know, we're buffeting up

against that 169 close which you know it's obviously good support because we're holding it that was on halloween. but it really isn't that big of a technical level. we are consolidating in the range. we kind of circumvent in that one and three-quarters area. finally the dollar index right now, it's down exactly a fifth-of-a cent. this looks to be the fifth session the dollar index will close lower. even though the moves aren't large. another three-quarters of a cent and it's really going to break down below a zone we haven't seen in several plus months. carl, jim, david, back to you. >> thank you for that. rick santelli. bob pisani as well >> happy thursday. it started off kind of flat irk right now. early on the cyclical sector is doing well banks started in the positive territory. yield pab up two days in a row retail is bouncing a bit again these are cyclical semis transport, leadership group. oil and gas is having a good day. remember they had have opec

meeting. they are waiting output cuts that's helping oils up 1%. what's moving the markets? remember the four factors that have been moving thing the fed is buying, don't call it qe the consumer is strong the trade outlook a little your honor certain. two big positives here one sort of stale bit of a question mark. global economy bottoming we don't have the answer to that so two uncertain ones. two powerful ones here i want to concentrate on the fed and buying fresh rtreasuries a lot of people feel actively going out 60 billion a month has been a major factor. here's where they started. this is october 11th you notice the market essentially has drifted up since then correlation is not always causation. there are other factors. trade lines matter or the perceptions about the global economy matter. >> that is not a complete coincidence. a lot of people feel the fed is lifted since that okay 11th data if you look at bank stocks, for

example, yields have generally been higher. here's the kbe bank stocks moving up. plateauing technology stocks in particular, big important part of the market has also lifted so tech is up about 8% again, same pattern here and you look at healthcare, it's still the whole market has moved and that's why a lot of people feel the fed movement here is a very important factor in the rallies that we have been having we had a great year, not a good year, a stem lar year. the s&p is up 25%. that's a stellar year. this is the best year for the s&p since 2013 where does that fit in the overall history of things? this is the eighth best year since 1957 why am i picking the 1957 in that's when the modern 500 as we know it came into existence. eighth best. we keep talking about it apparently a lot of people don't. financial times did a great story, did a poll with 800 voters they asked a simple question is the stockmarket up this year,

down this year or flat a simple question up or down here's what they found out 40% of the voters thought the market was up this year. good guess they're right on that 42% said the market was unchanged 18% said the market was down now this is sort of hard to believe 60% of the voters think the market is flat-to-down on the year you wonder what kind of rock is everybody living under here in the subsetext ob sub text is thn tweets about it. we think it's important, obviously. a lot of ought people may fought be this goes to all sorts of questions of what really matters in terms of what people's lives impact them. we think this is important a lot of other people aren't aware of what's going on, guys, back to you. >> interesting, bob. you see the market in the same way, jim >> wow, i know i got to tell you, i had robinhood on the other day i got them a couple years ago. they had a million accounts.

>> boy, there is new interest. millennial's one to own stocks. i think they were talking about 2008, a whole new group coming out. they like it they want to buy amazon. >> we're talking not just cannabis names >> they're buying amazon, facebook, fang, it's well thought out. they're buying stakes in earthquake many. robinhood, gave me hope that there cob a lot -- >> focus on sustainability >> very much so that's key to their insight. i have a company tonight that sustainability they love to buy the stock of people >> all right by the way, be sure to check out our podcasts you can listen to the opening bell hour of this hour of "squawk on the street" where ever you hear podcasts the dow is down 8. we're hanging on 3115. is the monolithic view of emerging markets obsolete?

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s&p hanging on to gains by just about 2 points or so. as we get a break more or less from the roller coaster of trade headlines the last couple of ys we'll get stock trading with im, after a short break. gold! nice rock. it's time to drop gold. go digital. go grayscale.

time for jim and "stop trading. >> marvin ellison great quote talked about the standing relationship with yeti, talking about yeti being the best in class brand for a series of things, goldman runs with it today and takes it to a buy. what's significant about this? 37% short, yeti didn't have a great balance sheet at one point, a lot of people thought yeti could be a commodity. gold mapp is saying this is no commodity, it's breaking out the old rubbermaid, you go into walmart with the products, yeti it's a buy, goldman probably works, given the short position. >> interesting tooey, yeti and nike >> nike being the leader great piece. >> tonight on "mad"?

>> we have mcdermott and the premiere chipotle, i mentioned topochica is a prop, not an endorsement. what is going on is remarkable, fastest turn around from the depths of despair and then i've got a company that people do not talk about enough average life science. they have made people's lives so much better and lengthened lives. they have the thing that says you don't have to crack the chest cavity to fix your heart this there is an innovation. which would you prefer, dave, cracked chest cavity or little thingy >> i like the little thingy every time >> that's a lot to chew on see you tonight on "mad. we're eis enshlly unchanged s&p and dow. when we come back, france vowing retaliation as the white house proposes new tariffs on french goods. we'll talk to a leading u.s. importer of french cheese and also santa is here back in a minute

welcome back to "squawk on the street." rick santelli with the last of the breaking news. october read on factory orders up 0.3, exactly as expected though we lost 0.2 on revision down 0.6 to 0.8.

strip out transportation a solid up 0.2, same seen e scenario lost 0.2 in revision minus 0.1 stands now at minus 0.3. when it comes to durable goods we're replacing a mid month read so this is the final october read and it's up .5. the up 0.6 placeholder gets moved down 1.4 so it is a solid number sequentially. ex-transportation it's up 0.5. the mid month read was up 0.6 so a little give back there and finally capital goods orders, nondefense aircraft, proxy for business spending, and this is an important one, because our mid read was 1.2 now it is 1.1. so it really held a good chunk of the gains and the most fascinating part about that is sequentially now it follows up half of 1%, so over double on the proxy for business spending,

which is really part of the secret sauce many believe the economy is missing carl, back to you. >> all right, pretty good, rick, thank you, rick santelli good thursday morning, everybody. welcome back to willard scott. i'm carl quintanilla with david faber and leslie picker in for sara eisen last some early gains, dow down 20 points, s&p down a point to 3111 headlines from retail, oil, biotech and more >> market volatility, stocks moving lower with the strong open with the s&p on pace for its worst week since september the opec summit is kicking off in vienna with big implications for oil in play and elizabeth warren taking on mega mergers. we'll have the details behind her proposed legislation that would have bigimplications for american companies as we said, stocks moving lower this morning as investors continue to closely watch the trade tea leaves chinese officials remain relatively quiet amid this growing uncertainty about

whether a phase one deal can be reached before year end. charles schwab investment management somar aguilar and brent schutte. >> thanks for having us. >> coming off this nonoffense ex-aircraft order, sounds like your thesis of global stabilization is playing out >> sounds like so far all the hard data seems to be supporting what the central banks have been working on all year of keeping the manufacturing weakness away from a potential recession and so far, the hard data on the economy seems to be solidifying those things that so far that hasn't affected the labor market, hasn't affected business spending as much as it used to, or the people thought it was going to be, but overall, seems like the hard data on the economy seems to be pretty resilie resilient, consistent with what is called a soft landing of what the fed and the other central banks may want to have for the global economy >> do you believe that kind of stabilization can survive if

phase one is pushed out to say the spring >> well, i do think that that's the key component, and clearly trade has become a bigger component, because it does have an effect not only on certain parts of the manufacturing part of the world, and clearly will affect potential wage growth, but also affects what is the critical part of where we are in the market today, which is sentiment. the sentiment component of reaching a potential deal to coactually be a big tailwind for the markets going forward. i think consistent with hard economic data, you know, a potential deal, i don't necessarily think we'll get to a big deal but certainly a progress could actually be tailwind that will take risk on markets further up on the other hand, if there is no progress or potentially a break in negotiations that could put us to the other side we're in that part of the market where because we have had a solid year, it could go one way or another so i think looking for that december 15 and potential phase one progress is

going to be key for where the market goes at least in the short run. >> brent, do you expect to that point to see higher volatility as we reach year-end >> sure, i think in general ther's usually higher volatility as the trade uncertainties unfold and so december 15th is a big date on the calendar and i actually do think you will get a phase one deal a the lo of the news about the president suggesting that he would be happy putting this off to the election, i think that was for phase two, and i think that gives him some room to suspend negotiations next year to tamp down the volatility from the negotiations, but i do think he needs phase one done because i think he needs something for his constituents, see the farmers, he needs to take to the election to give them something otherwise they might wonder what this was all about >> so ten days he has to get this phase one deal effectively completed. how much do you think the markets are pricing in that that will actually occur, and what is the downside risk that you're seeing if that doesn't come to

fruition >> sure, i think the markets have certainly priced in positive news on the trade front so i think there would be some downside i don't think it's nearly as much as people imagine because as omar mentioned the opposite side of the coin which happened last year is happening this year you have all the central banks around the globe pushing down with trade war last year are pushing back up and i do think they hold the upper hand in that battle because they are much, much bigger and much more important than the smaller trade war that may occur it's a detractor to growth but not an absolute negative and not a recession causer >> omar, in terms of sectors, assuming, given sort of the bedrock we just established with both of you, how do you play it both within sectors in north america and when you compare u.s. to say europe and asia? >> well, you know, i certainly think that this is a great opportunity for people to look at their portfolios and start think being rebalancing strategies we're coming off of very good solid year for the equity markets. we actually see the consistency

in fixed income markets as well, where things seem to be very stable so what we have observed over the last couple months is these natural rotation this part of the cycle going from a very defensive, you know, momentum type sectors to a more, you know, potentially cyclical, i would not necessarily say we're at the point where value starts to work harder and you can go there with your two feet but it's an opportunity to balance strategies going into cyclical areas like industrials, materials like consumer cyclicals you've seen underweights potentially on the year, sectors that could potentially expand condition on the fact that the economic data continues the way we laid out. so moving and start rotating away from defensive into cyclical is something we continue to encourage people to do >> brent, similar rotation with you? >>. >> yes we moved from large caps

to small caps and shying away from reads the thesis last year the central bank was tightening. we were at a point small caps were overloved thought to be a defensive play against the trade war and the macro environment was turning against them with real rates becoming positive they underperformed for a year dramatically the ma to reenvironment is turning positive where i don't think there's any chance next year, even if the economic data improves the fed would ever consider hiking rates given the president and bill dudley's back and forth. i think that's small caps and one thing underappreciated is the world is getting better. chinese oecd lei turned back in february, you see that show up in the data. if you have better global growth next year the world will outperform the u.s. which we think is likely. >> where japan launches $100 billion in stimulus. thank you very much. >> thank you our phil lebeau spoke with

gm ceo mary bauer on the battery joint venture announcement he has some of the highlights from that interview. >> this is a move general motors talked about during the uaw negotiations here is the joint venture details, a joint venture between general motors and lg chem, locate a battery cell production facility in north southeast, ohio close to lordstown, invest up to $2.3 billion, add 1,100 jobs here is mary barra talking about the importance of the plan >> this is a critically important part to make sure we have high quality reliable electric vehicles that are also affo affordable >> as part of that all electric future, there will be an all electric pickup truck coming from general motors by the end of 2021. i want to shift gears and talk about united airlines, because there has been a transition announced when it comes to the

ceo job, oscar munoz, been in a n that position since 2015 will be moving into a new role in may of next year, no longer ceo. he will become executive chairman, replacing oscar munoz is scott kirby, current president of united airlines he was hired by munoz to come in, really start fixing their route structure and improve their profitability starting in 2016, so scott kirby will become the ceo starting in may of next year as you look at shares of you night the airlines, keep in mind that among all the airline stocks this year, while this may not look like the most impressive chart relative to a number of the other airlines, guys, united has had a pretty solid year, relative to their competitors. guys, back to you. >> so much going on in airlines this year, phil. thanks very much, phil lebeau. still to come this morning we'll tell you what's behind this massive drop in sage therapeutics, down more than 50% this morning first, our brian sullivan live

in vienna with a look at what else is ahead in the show regarding opec hey, brian >> hey, carl you know what airlines need? airlines need oil, by the way so we're going to talk about oil and coming up after the break, i give two reasons to watch. number one, we're going to lay out the three opec scenarios and what they likely mean for pricing. we'll lay it out say here's what's probably going to happen and number two show you the world famous opec stairwell, has its own twitter account. the rumors are flying fast and furiouanwel ha ials d 'lvet l for you, right after the break a. we offer commission-free online u.s. stock and etf trades. and, when you open a new fidelity brokerage account, your cash is automatically invested at a great rate -- that's 21 times more than schwab's. plus, fidelity's leading price improvement on trades saved investors hundreds of millions of dollars last year. that's why fidelity continues to lead the industry in value while our competition continues to talk. ♪ talk fidelity.

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the eyes of the energy world focused on vienna, austria brian sullivan has more on where everything stands right now. brian? >> reporter: yes, hey, david you ever see the movie "there will be blood" with daniel day-lewis, the opec movie would be there will be rumors. somebody said this, this delegate said that i'll lay out exactly what the three scenarios are and what is likely to happen with oil prices a current production cut deal of 1.2 million barrels per day that expires soon if they keep that along oil will probably fall. if the status quo stands you'll probably have oil prices fall. scenario number two, you extend the current 1.2 million barrel a

day cut through the end of 2020, so it goes all next year that's probably neutral to also bearish. i'll get to why in just a second and option three floated around, which is deeper cuts, maybe 1.5, 1.6 million barrels a day through next year or the summer, that's probably mildly bull iis. that would likely be the only scenario you see the price of oil after today's meeting go up, 1.5, 1.6 and for at least six months, anything other than that, oil is probably going to be flat to slightly down why? next year 350,000 coming online in norway. the u.s. production continues to rise this is the world famous opec stairwell we get jammed into it's got its own twitter account. why are these people lined up? i don't actually know. there's not a press conference every year there's usually a scrum. they canceled it on it i don't know why everybody says the sawed eaudist

want to talk we gather in the stairwell, you don't know what to do. you follow what everybody else is doing and get in the stairwell. if there is a scrum we'll be there, otherwise right here for you covering oil from a stairwell in an office building in vienna, austria where else >> brian sullivan, questioning some of the key mysteries behind the opec meeting in vienna, including why everybody stands in a stairwell brian, thank you we are joined for more on this by jeff curry, goldman sachs global head of commodity research i won't ask you about the stairwell. that was quite funny but i will ask you, what are your expectations in terms of what we'll get out of the meeting >> well, i think that the current agreement being discussed is really formalizing our base case as well as the rest of the market's consensus base case. one component, they're likely to adjust the quotas to current production second, that's going to be contingent on better compliance from the producers primarily

iraq, nigeria, kazhakstan and russia russia and iraq already agreed or have moved their production to their quota levels in november so i think we resolve that kazhakstan has maintenance going on the third is the extension of the cut brian was referring to, likely to go through at least june of 2020 and further now, why is that important i think as brian alluded to, you have a big surplus coming to this market during the second quarter, primarily driven by production that doesn't have much following behind it later on why? because capex is down in non-opec u.s., those are legacy projects from 2014 when we had $100 oil second, capex in the u.s. shale patch is going down so there's nothing behind that. if they can weather that storm in q2, they can get to the back side of it, things look better and they can talk about raising production after that. what does this mean to prices?

can't go that high because this market is not that tight right now. they need to force that rebalancing and that drop in capex is what they want. cape the capex low in declining and free sailing on the back end. >> how about the demand side of the equation you look at what's going on with the u.s. and china and back and forth every single day and does that factor into the calculus at all? >> when you look at the demand for xhodily, onex demand is tied to the new economy and capex tied to the old economy. capex is hurting and opex is going well like the global economy. oil is an opex commodity, jet fuel, gasoline and so forth. as a result the outlook for oil is much more positive than it is for something let's say like nickel or zinc >> as an s&p sector, oil is on the verge of going negative today for the decade >> right yes. >> since new year's eve of '09 do you think that's different in ten years?

>> i like to point out you take apple, has a market cap bigger than the entire energy sector. guess who was the first trillion-dollar company? petro china. these go in cycle. the odds of you getting back to that in the next ten years are difficult. we're talking way out there but it illustrates an important point in the commodity space capital to this sector, the old economy, is shut down right now. why? because i like to point out, the old economy while it represents 35% of global gdp, two-thirds of corporate losses, 90% of the nonfinancial leverage in the system, 80% of global emissions. so it is overbuilt, overlevered, and overpolluted and what we're seeing right now is the rebalancing that's really needed so when we look at the decline in the ism, the manufacturing declining, this is that rebalancing. i like to say embrace the decline in manufacturing, don't fear it. >> you mentioned trillion dollar companies. there's another one i can think of that will be very soon, saudi

aramco, which will be pricing. is it now, leslie? >> today >> today >> before noon today >> how important sort of is that in the overall view of what the saudi also have to do in terms of opec, and how important it is to have a public equity out there for them, even if it only trades in saudi arabia for now >> well, i think it's a milestone in terms of their ability to diversify the economy and go after the vision 2030 now, in terms of the, linking the two, it's more of an end of year issue because what happens to this opec meeting and oil prices in the near term is not going to change investors long-term view on xhoitdcommodi. the bigger issue is the fact that old economy equities, whether if it is energy, metals and mining are out of favor and the one thing that is a big driver of that is not only the poor returns but esg factors are very important right now, and in

terms of thinking about the esg factors, what is the easiest target to go after fossil fuels, metals and mining, and when we think about esg in 2020, in june of 2020, the unpri, which is principal responsible investing is going to suggest, it's not a law, but suggest that 50% of the signatures incorporate esg strategies into their investing. that's going to impact $45 trillion of aum, that is up from 22.5 this year again to 45 trillion >> it's the i'm glad you're brazen, enormous issue we have to cover more closely. who will be the first fossil fuel company to do something dramatic in terms of responding to that? >> when you look at some of the producers out here, they're making large efforts norway field brian was referring to has a 4% carbon emission, 4% of what the other fields do. you see the response out there >> they're really good at that >> very good, big strides. i think you're going to see

that i've had talks with miners suggesting green copper. it's going to be expensive but you are seeing an emphasis towards that and i think the bigger issue there really is how long does it take to create that environment to absorb that capitca capitca capit capital? as difficult for equities, we like the commodities and the reason we like the commodities, drop in capex takes supply out of the market. metals last year had the worst demand environment since 2008, 2009 yet inventories are normal because supply is dropping faster than demand >> jeff, interesting conversation thank you. >> thanks for having me. >> jeff currie from goldman sachs. elizabeth warren taking on mega mergers we'll look at her potential plan with big implications for american companies and investors, when "squawk on the street" comes back dow is down 55 most people think of verizon as a reliable phone company. but to businesses, we're a reliable partner. we keep companies ready for what's next.

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the organization was russian, it was called evil corps and the treasury department says it was up to no

good they say this was a cyber criminal organization, they're announcing sanction this is morning against the organization, they say evil corp. is closely linked with the russian government, developed the dridex malware that infected computers and login credentials to go after banks and banking customers around the world, it impacted hundreds of banks in 40-plus countries. they say overall it's responsible for more than $100 million in thefts. this would make it one of the biggest cyber crime sprees in history and leslie, this is not just the department of treasury taking action today announcing sanctions against evil corp. and its members but also the department of state issuing a $5 million reward for information that would lead to the capture of evil corp.'s leaders, so ongoing effort by u.s. and uk authorities against a russian entity called evil corp. engaged in cyber crimes against banks

and individual led to thefts over $100 million over the years. >> eamon, staggering number. thanks for bringing that to us looking at xrt continuing to trade higher this morning, after breaking a three-day losing streak you can see they are now up about 0.2. now, looking at nike, that stock has been trading higher today, up about 1.5%. the company receiving an upgrade from goldman sachs saying nike is expected to show significant earnings growth with china, guys, china being a key driver despite those trade tensions but moving on to tiffany, and its first quarterly report since agreeing to be acquired by lbmh that stock traded lower today down about 0.2%. results were weaker than expected, hurt in part by business disruptions due to unrest in hong kong. >> meantime sage therapeutics

down more than 50% today meg terrell can explain why. >> good morning, carl. expectations were sky high going into sage's phase three results. the market cap was nearing $8 billion and the depression drug was successful in earlier studies. the drug sage 217 to change the way depression is treated instead of taking medicines chronically for long periods of time their goal is to treat acutely similarly to an antibiotic take the drug when you need it and stop taking it when you don't but the study failed to reduce depression scores after 15 days of treatment, compared with placebo the company says there are a couple reasons for this and that without them the study would have worked. first, it says 9% of patients appeared to not have taken the medicine second, the study enrolled patients with milder depression than previous trials of the drug which succeeded. the ceo jeff jonas telling analysts the one takeaway from the study, if you don't take the drug, it's not going to work the company is bullish on the medicine's prospects saying the

overall data are supportive of the medicine's activity. jpmorgan points out three additional phase three trials ongoing, two of which will have results available next year. guy, the street clearly extremely disappointed leslie >> absolutely. meg, thank you so much now let's send it over to sue herrera for a cnbc news update >> good morning, thanks so much. here is what is happening at this hour, speaker nancy pelosi announcing the house is moving forward to draft articles of impeachment against president trump saying "our democracy is at stake and the president leaves us no choice but to act." >> -- sadly, but with confidence and humility with allegiance to our founders and a heart full of love for america, today i am asking our chairman to proceed with articles of impeachment >> trains stood still, schools across the country are shut down and the eiffel tower is warning visitors to stay away as unions

held nationwide strikes and protests over the government's plan to overhaul the retirement system the reforms are seen by the workers as threatening the french way of life and a fire broke out at a luxury hotel in athens, greece, injuring at least three people fire crews evacuated the palace and used ladders to rescue several people it's not clear what caused that blaze or how many people were inside the hotel when the fire broke out. you are up to date busy news day. leslie, back downtown to you >> busy news day indeed, sue, thank you. when we come back, trump's tariff tactics, we'll speak with the president of the leading u.s. importer of french cheese how he's preparing for the president's proposed retaliatory tariffs on french goods. rwkn e re" enstetwh weeturn.

the u.s. government saying they may place a 100% tariff to french imports in response to france's digital tax some nop-tech companies are feeling the pain a production facility in lakeville, georgia, president tom gellert. how the proposed tariffs impacting your business? >> well, it's pretty scary and debilitating having these threat of tariffs we're already under punishment from the airbus tariffs, 25% tariffs on all imported cheeses, most important cheeses from europe, back in october, and now they're threatening to increase those even more or add other ones to the list on top of that, as you mentioned earlier this week, you know, the administration is threatening to put 100% tariffs on all french

cheeses. that will be just crushing to our business as you can see in the background, the facility here that was packaging value-added cutting and wrapping on cheeses from all over the world, including france we have 100 good paying jobs here and we can't absorb, i don't know what business can absorb a 25%cost increase, let alone 100% cost increase so it's debilitating for our business >> so what would you do? do you plan to pass, if it gets enacted do you plan to pass those extra costs on to the consumers and do you expect to see consumers really paying twice for cheese from what they paid before? >> sure, well here as i stand in my facility, we just completed this $12 million renovation and investment in this facility down lakewood, new jersey, where i stand today. we had plans for an additional $5 million, $6 million investment in the facility right now that plan is on hold

you can't sort of justify pouring more money into this facility and hiring contractors if with the uncertainty if our cheeses will be able to excel. there's no way we can absorb those costs. we will very to pass it along to our consumer all companies that touch the products, trucking, retailers, restaurants, they're all going to be impacted and eventually consumer this is something that's impacting the tech companies, the big billion-dollar tech companies, google, amazon, facebook the companies are worth tens of billions of dollars, and it's a family business like ours that's really going to bear the brunt of it, so no, we can't absorb it >> tom, what do you tell people who are in charge of investing for their businesses, capital expenditures, when they're dealing with tariffs or potential tariffs that could easily go the opposite direction tomorrow >> literally via tweet how does the calculus work in

those cases? >> how does someone plan forward for their business here it is end of the year, in our budget process for next year we're trying to figure out how many people we're going to hire. marketing campaigns we have a french marketing campaign planned. all this investments in business, we have a capital investment plan for this building all that is on hold. how could anyone sort of go forward? we're all paralyzed here by the uncertainty, and you know, the impact of tariffs are real, and have the financial impact to our business, but the uncertainty is really paralyzing to the business i just want, to you know, go out there, hire people, talk to my customers, talk to my vendors, do the everyday business i got to be worried about what's happening next it's sort of things that are out of our control, but they're controllable, you know, wise

decisions in washington. >> i hear a number of similar concerns from businesses like yours. i'm curious, it's been a few weeks since the 25% tariff went into place are you seeing a reduction or a significant reduction in demand for your product >> well, this is the busiest season for cheese during the holiday season in entertaining, so typically the fourth quarter is good for us, and anticipation of the tariffs, because we were uncertain if they'd come or not, you know, we bought a lot of inventory ahead of time, so certainly the suppliers overseas, those are the ones that the government was looking to impact, but we bought the goods. it impacted us financially, we have a higher carrying cost of inventory, more storage, more warehousing costs but we were trying to do that to mitigate any impact on our customers at this important part of the

season we'll see how things bear out as we go into next year obviously when it comes to cheese, you can't build up too much of an inventory, it has a shelf life i think the scotch importers bought another year's worth of scotch to mitigate that, that stuff holds. we've certainly made major investments on our cost structure at least to maintain t but that's not sustainable come next year we'll have to pass on the increases for our customers. >> your distributors include walmart, aldi, whole foods what has been the discussion with retailers like those about pricing discussions and pricing changes for imported cheeses >> sure. now we've been open and honest with our customers, as you mentioned, many retailers, yesterday i was down in florida at a publix store. you look at their deli case and cheeses and through the tariffs

half the items in that case are going to be impacted they have labored at the store, it's going to impact the sales at stores like that and impacts those companies. so we've been trying to get them educated, get them to speak to their congressmen and people in washington, so they don't have the taxes basically food taxes impacting everybody along the supply chain >> so do you plan to change some of the supply chain that you're operating with, maybe looking at retailers outside of the u.s. in order to diversify away from the potential for these tariffs? >> well, our business we're an importing business it's a third generation family business by my grandfather next year will be our 75th year, and we're in the foreign business, we're sourcing products from overseas, selling to american consumers, as i said, for 75 years, products you typically can't find here and

products that customers demand, so we don't really have a network of customers in other countries. we do some business in canada. it's a good market but it's a relatively small market. our business is here we have 600 employees here, customers here, and we're here to focus on those employees and those customers. so you know, we're just going to make, try to make the best of it and hopefully the tariffs don't last, and cooler heads will prevail, and we'll be able to go back to normal of our just operating our business >> tom, thank you so much for sharing your story with us we appreciate it >> thank you >> you see that thing, not gouda, that was pretty funny i like that. billionaire hedge fund manager steve cohen is nearing a deal to purchase a majority stake in the new york mets.

he would remain ceo of the mets for five years before transferring full of the team to steve cohen, from fred wilpon. cohen has been talking to the wilpons on and off for years and now a number of people have said yes, he indicated finally the wilpons finally said it might be the time from their perspective at least to part with the team, but not right away >> not the time right now anyway 2025 i don't know -- i know the financing and all the different valuation metrics sounds like it has to be worked out at this point but how do you purchase something with an option for five years from now? >> right is it clear would he take

economic control prior to that but still contractually give them management control? >> according to the press release, and i spoke with some people in background to get more clarity on this, he will not take control until five years from now once you see wilpon step aside and cohen will step in, but it's unclear whether you'll see a sliding scale, maybe an increasing stake over those five years, where gradually he'll obtain more and more control, but it's certainly, yes. >> valuation won't change, $2.6 billion valuation on the team as part of the deal, that's what's been reported. is that your understanding i haven't done reporting on it per se >> i have not been able to confirm the $2.6 billion valuation. "forbes" valued it at $2.3 billion in april so slight step up from that but yes, you can't imagine, any kind of asset you purchase, would you hope that it appreciates over five years so it would be surprising that someone would sell -- >> not the first

multibillionaire hedge fund manager to buy control of a sports team, there are quite a few of them at this point. he is a mets fan, grew up in breakneck, long island tried to also be a part of a buyout of the dodgers a number of years ago does own roughly 8% of the mets, part of the previous deal. talked often through the years about the wilpons being hurt by the madoff fraud and how willing they have to spend money, although to be fair to them, they have spent plenty, not necessarily in the right places. they were 86 and 76 last year. >> spending money hasn't always been the key to victory. >> no but it would be interesting to see mr. cohen running or overseeing this five years from now also always interesting to wonder how his limited partners, remember he's not just managing his own money anymore. he went back out for some reason to raise capital again from investors at 0.72, leslie, and you always wonder when your manager is going to be focused on his team.

>> it's a distraction. and you've seen tepper move the opposite way purchasing the panthers, shortly thereafter he decided he would run money to investors and manage a select group of investors money but kind of do the pseudofamily office/lp structure that is a change for him i don't get the sense that steve cohen will be doing this it's important to note that the purchase of the mets would increase in his stake would be done through his family office >> right >> but you're right. he opposite. you wonder if you're an lp how someone can be, some of the tension -- >> always a question but the guy has apollo also and stuff. so much money. why not buy a sports franchise >> yes how hard can it be to run? >> rainbow in advance. >> thank you, going to spend money like drunken sailors when we come back we'll look at the markets here. dow is down 50 points as it's turning into a pretty range

bound day so far we'll see what the afternoon brings more "squawk on the street" is back in a moment turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

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an exciting day for me, and i'm sure for you peter bookfar, chief investment officer, blinkley advisory group and favorite of cnbc peter claims 203,000, second lowest number since the 193 in april. ism yesterday you know, 53.9, not impressive but over 50 capital goods orders nondefense aircraft today and final read on durble goods up 1.1, not too bad. what do you think of all that? put it together in a nice snowball for me. >> well, claims the data, we need to look at the four-week average. early quarter november we saw a jump in claims, there was some

concern. we could maybe attribute that to the seasonals. the lefrl of firing is still tame and the pace of hirings in the adp report friday has slowed president ism service number is key, that's a big chunk of the u.s. economy and i do believe that the weakness in manufacturing has filtered into softness in services it's still growing, still a key part of the economy, but it is not immune to the weakness in manufacturing since a lot of service companies do business with the manufacturers the last point with capital spending we did get a month to month increase in the core rate of durable goods which was important but a year over year, it's still rather flattish, as companies because of the limited visibility in their businesses if they do business overseas are sort of waiting to see how this trade stuff plays out before they commit dollars to capital spending >> you know, we continue to see what i deem as cryptic positive stories, actually emanating more out of china regarding the trade

issue, and potentially signing it and coming up with an agreement on pro rata tariff lowering based on this deal that they're going to sign. how much credence do you put in that, and why is that so important in a market? >> you know, peter, i hate to

bring this up. i hate when politics has market implications, but as smart as that sounds, to me the chinese could be making a huge tactical error. if trump gets reelected, i am started to have a growing feeling he might, why am i getting that, when the democrats want to do impeachment 11 months before election, to me it means they're afraid he could win. if he wins a second term, chinese will be behind the 8 ball your final thought >> the chinese will have a tough time negotiating with trump if he is reelected, the democrats have taken a hard stance too towards china. i think china is in a box either way, regardless who wins therefore they're trying to get as much as they can now and not rely on what they can maybe get next year. >> excellent synopsis. thank you, peter david, back to you >> thank you, rick. let's send it to jon fortt for a look at what's coming up on "squawk alley." >> in part, we're picking up some of that conversation rick was having about trade and its

implications, this time for tech, whether it is semiconductors, software, services where should you bet if you think there will be a deal or no deal that's coming up on "squawk alley. ents available now.

legislation to take on mega mergers. ylan mui has the latest on the effort >> this proposal would hit the biggest companies, not just tech but across the board it would ban mergers or acquisitions when one of the companies has $40 billion in annual revenue the ban would apply if both companies have at least $15 billion in sales the proposed bill makes it easier for workers in the big economy to unionize. the bill hasn't been introduced, also facing blow back from conservatives. grover norquist, founders of americans for tax reform, calls it a publicity stunt. >> the numbers of 40 billion in sales, what decade does she

think we're living in? how large does she think international companies are. we are not giving in a time with small companies competing in the world. american leadership has larger companies. it is really an odd 1910 world view >> i should point out the bill is a work in progress. the 40 billion and $15 billion threshold could still change, and time line for introducing the bill is also unclear i am told warren's office is working with david cicilline on this the underpinning of the bill, drawing bright lines for shifting mergers, shifting the burden to businesses to explain why a merger makes sense, guys, those aren't going to change. >> big implications there. covering a couple of beats politically. the controversy surrounding

peloton's holiday ad that continues to get a lot of attention. dow down 37. "squawk alley" starts in a few moments. let me tell you something,

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good morning it is 8:00 a.m. at the steve jobs theater in cupertino, california, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ good thursday morning. welcome to "squawk alley." i am carl quintanilla with leslie picker, jon fortt at post nine of the new york stock exchange morgan brennan has the morning off. busy morning the street making big tech calls, including upgrade