dow down by over eight points. losses in boeing now after that interview with faa make sure you join us tomorrow right now time for "squawk on the street." ♪ good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. decision at 2:00 eastern, followed by powell's presser lots to watch, though. saudi aramco, boeing, home depot, waiting for clarity on china tariffs. europe is mixed. uk election tomorrow cpi just ahead of estimates. core rate up 2.3 year on year. road map begins with an historic ipo. shares of saudi aramco surged

10% in its debut, valued at 1.9 trillion the largest listed company in the world. >> plus, the fed and a trade waiting game stocks poised for a muted open as investors seek further tea leaves on trade and the fate of -- >> monopolies aren't bad if they are not abused tim cook coming to the defense of business but said apple isn't one. saudi aramco strong public debut. shares jumpedon the open, the maximum 10% on the stock exchange in riyadh limit up. the state owned oil giant is the world's most valuable company list at 1.9 trillion, that's about 6 exxons and above apple which has a market cap of almost 1.2 trillion. >> well placed deal. a lot of people in saudi arabia decided to buy this stock. and that boosted it. i think sometimes you get deals and they pretty much determine where it is going to be.

so now the question is, yield. and whether the yield exceeds what mike worth is offering on chevron. i think it will. i don't think it makes people suddenly all excited about the oil stocks, but it does say that there is appetite for equities at least in one country. >> definitely true all the hand wringing about esg, and how that might weigh on demand has not turned out to be a story today. >> no. and yet -- talk about esg for a second, a piece from morgan stanley -- >> evaluate -- very serious, evaluating our information technology, hardware coverage to an esg lens. do you know there are machines, actual software, dedicated to find out how many times you mention esg it a conference call and if it mentions a huge number, then the stock gets bought >> it is -- listen, it comes up here in a way that we, a year ago, you could measure it with us what is still awaited, i think,

largely is a ability to compare across industries and even within industries, metrics that can be used to measure progress that companies are making on their sustainability goals that doesn't exist. think about a fasby but for esg. they are working on it there are efforts being made for essentially what we call sasby, sustainability, and then be able to look at and believe all the different numbers you're getting to measure this because it is becoming such an important input for investors. >> 10 million people have accounts in robin hood and before they look at how the earnings are, they look at how the esg scores are >> time's person of the year this morning, greta thunberg. >> i was there had they picked her. >> you were where? >> it was -- didn't really happen, because it was, you

know, background but what i thought was amazing, it was almost by -- >> unanimous >> unanimous one guy said tim cook. >> they do have -- they do have business person of the year. ended up being iger this year. >> i like that that good book he wrote. really good book. >> really good. >> should have retired before he wrote that book. it is very critical of certain people. >> very well, nice -- >> did he mention viacom >> no, he didn't keeps going down back to oil for a second, back to chevron. >> okay. >> and saudi by the way, the saudis, if you're an individual investor, you buy ten shares, you hold it six months, you get one addition additional. >> do you really that's fantastic. >> not bad, right? >> yeah. >> it was not sold around the world. >> goldman did that. >> it was sold largely in the saudi market it is up 10% it is the most widely -- highly valued company in the world. >> how is that versus uber in

terms of big ipos? >> what do you mean? >> one did better than the other. unicorn versus -- did you know there were no financials to this company until recently no financials. >> on aramco >> yes >> you mean prior to the s1? >> yes we didn't know if they were doing well or badly. how do we know they do if oil go down >> so amazed that attack happened, and never responded to >> what are you some sort of -- >> just fascinating to think about it can you imagine if one of our oil facilities was attacked in this country, what we would do. >> it would be different >> yeah. would be different but that continues to be a concern for investor as well, but not within the country they have equity they can buy this saudi arabia. by way, not dissimilar from aliba alibaba's listing in hong kong where the main customers of the service were able to buy the stock. >> it is funny, i initially

thought maybe they'll use this equity to be able to make some acquisitions a lot of times people just tell me they use it to be able to diversify away from oil. >> right though that doesn't always work in the case of chevron, for example. diversifying it to natural gas or exxonmobil, not necessarily the best move. >> remember when exxon diversified into -- >> no. >> they diversified into information technology. >> when was that >> 1983, 19 84. >> that withonei missed. >> before our time. >> i was in college. >> 10 to 11 billion, charged this quarter down the value of some assets. they're citing lower commodity price and michael worth was on squawk "few moments ago. >> business is good. we're leading our peers in total shareholder return this year, we have seen record production and free cash flow is growing. but good isn't good enough we're setting the standard higher for ourselves

we're streamlining our operational footprint, we're harnessing technology to drive efficiencies in our business and we're simplifying our organization to get the right people on the right work all of which are actions that will deliver even better results. >> simply not counting on a structural lift in prices. >> no, i like mike very much i would have done it different subtext. first of all, we were not so stupid to buy anadarko >> right or xto. >> or xto. >> not allowed to talk about that they get angry when you talk about that, both sides >> why >> exxon doesn't like -- >> tough >> it is about friends, not money. >> i see well, a terrible deal. >> terrible. natural gas was $9 >> $9. now it is $2.50. >> it is minus 1 they would rather flare it than send it. i think we got to focus on the fact that this man dropped out

of the bidding for anadarko. >> yes, he did. >> and that showed shrewd behavior he actually represents, i think, the traditional people who run chevron. worldly, also scientific. >> talking about the future. like, okay, listen, the past is the past 10 billion to $11 billion, it is not impacting the stock price. you can see it there it shines a light on the challenges of northeast gas, the appalachian shale plays, they spent over $5 billion, chevron has, probably worth -- who knows what those numbers are at this point, which is why they need to write it down. when it comes to the permian, they go to $4 billion in terms of what they're going to actually spend there that's up 11%. >> yes >> where the money is. >> that's why i think anadarko -- there is oil there there is natural gas, take a look at apache if you want to know what natural gas looks like they had a -- write down one of their assets in the gulf

but they did pretty well in the gulf they were the first ones to come in, never gave up. they're a very smart company and the industry is very terrible. a lot of people saying, now the copper is moving up, oil is next i don't know i don't see it aluminum is not moving >> what's the play on natural gas' dramatic fall is there a way, shorting or some way to -- >> semper is good. con ed, these are pass alongs. the reason why i like sempra is because they have camera, liquefied natural gas. that's the way you make money. if you say liquefied natural gas, our price is zero, you get countries beholden to us, start taking our natural gas, you mack a lot of money. >> it is going to take a little bit of a pause, by the way, same thing with mexico, that's the other guy. mexico is more natural gas than almost any other country

but mexico has been underinvesting we send our natural -- >> you say country beholden to us, which ones >> poland is buying some natural gas, korea, countries that have had good trade, have had the run of the table of trade with us. of course, merkel continues to buy -- >> japan also is a buyer of our -- >> everything. >> we got the -- yes, i think it is one of thegreat export stories of all time. no one likes to talk about it. i think it is just really boring but there are some new gigantic train they call them of camera, sempra, starts in january, one more huge amount of natural gas. we have so much natural gas in this country, everyone felt the sagists said if we start exporting 8 billion, the price would go up. as you heard from chevron, marcellus, utica, aubrey mcclenen said ohio would be the biggest source of natural gas. everyone laughed

no one is laughing now. >> no. big picture, sometimes we talk so often about technology companies, but the technology that has been brought to bear in the oil business over the last 20 years in terms of fracturing and horizontal drilling has dramatically changed it in so many ways. and it is funny, also, again, technology, talking about biotechnology lately all part of -- >> it is >> part of the advances in tech that are reflected in various movements. >> that's why the rig counts, we used to -- i was at goldman sachs, i mentioned constantly, i don't know why, they used to look at the rig count of baker hughes now the count is irrelevant. frankly we get so much more oil and natural gas out of a rig than we used to. i think it is great that you mentioned the technology it is an underlying theme that -- technology is made -- >> remember how many people say peek oil, 15 years ago >> by the way, chairman greenspan was talking about peek natural gas, turns out that's

when we were thinking we have to become an importer and then fabulous -- fired, engineer, became -- i'm talking. >> sorry i apologize. i know, occasionally i like to consult my texts because i do have more people -- know more than i do. >> i know, but in the middle of when i'm talking, sometimes i find it humiliating. >> well, i think you should get a thicker skin >> okay. thank you. anyway, what we were saying -- >> stocks, on track for a modest open, got some retail names under pressure today a trio of disappointments if you count home depot. >> i'm getting tired of home depot. >> children's place and aeo. >> children's place, they had some -- they lowered the boom on themselves, just saying, look, the mall, children's place is interesting. jane says basically that well, let's just say the mall is going to keep us from making a lot of money. not as bad as game stop. that may be the benchmark of

bad. but i don't like what children's places do. weaker than planned mall traffic quarter to date, we're long on outlook for q 4. home depot, i said -- my travel trust owns home depot. i was critical of the last quarter and they were critical of me. he who laughs last laughs last they lowered their estimate. i think it represents great value. >> they didn't like when you were so praising ellison so much at lowe's. >> that's probably part of it. >> marvin ellison is doing great. >> not a dramatic -- similar spread on comps. not that far of what they said. >> we have to hear more. i don't really think that they're guide can be that quickly down from when they were reported last time marvin ellison is back, he worked at home depot -- >> brief stop at jcpenney, decided that was not going to turn. >> jcpenney is problematic

retailer in the mall. >> yeah. >> i'm getting a lot of good report in my twitter feed about the kohl's/amazon deal, you can return things to amazon, from kohl's get kohl's cash, a discount, people are talking about kohl's as being a destination once again. chiefly to return things from amazon. >> people were looking for some sort of return on that deal. you're saying it is -- >> questions on the call and -- >> michelle goss, so far, disappointing. i think my twitter feed, which is anecdotal, does say a lot of people like to return things there. i don't know i'm looking for retailers other than walmart, amazon, target, costco that are doing well >> you want to bring others into the watch fold. >> yes i think lowe's is. i would like to do kohl's. i can't. because it is brick and mortar ma macy's no, children's place no, american eagle, no game stop, did you see the numbers at game stop. >> gap, no. >> gap, no

game stop, people are looking for 1.15 to $1.30. it will be ten to 20 cents same store sales down 23%. >> game stop. >> web bush, michael packer sticking by it. >> wow. >> what? >> i haven't looked at game stop in a while it is below $600 million market cap going lower today. >> the end of cycle on hardware and then the broader move to digital, a lot of people in my travel -- home depot, you guys -- geez, home depot where is carol thome when we need her. >> retired. >> we need mel torme at this point. >> game stop, i don't know i think it is too early to buy >> i liked mel torme. >> yes >> got to meet him once. >> did you really? >> yes, just a prince. >> really? >> amazing man >> was he really did he write that christmas song >> yes, one of the hottest days

of the year. makes a fortune every christmas. >> i met vic damone. who have you met >> nobody. >> thank you >> even barbra streisand >> never met barbra streisand. >> i met barbra streisand. >> back in the day when she used to watch "squawk box." >> fantastic >> big morning on tap. exclusive interviews with the co-ceo of carlisle group, the ceos of u.p.s., cvs health, b of a. we'll get cramer's mad dash as we count down to the opening bell on this wednesday don't go away. at fidelity, online u.s. stocks and etfs are commission-free.

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it is hump day, what we like to call wednesday here at "squawk on the street. opening bell 11 minutes from now. let's get to a mad dash. where are you headed >> mkm partners, i don't mention them enough, they are saying be careful of cannabis, that the little cushion to cover payables, capital raises needed. the only two they're highlighting being okay, canopy growth and kronos. when david kline runs canopy, he's -- >> where is he taking the money?

>> yeah, higher. david kline, very good cfo, constellation coming in there, when the smoke clears, they will be the winner. i like that. >> that was a good one. >> like one of those teases in the business, but really funny things on our outthrow to commercials. >> i don't know they want the smoke to clear. >> they don't. if you insist on being in cannab cannabis, i would recommend canopy growth, they have a flight path so to speak. >> the bloom came off the plant for all of these -- >> oh, my. what happens, they planted too much apparently there is 100 year supply of cannabis in canada >> like natural gas in our country. >> it is wow. that's good. >> maybe there is something -- >> i remember when my daughter lived in o ed ioregon, they ripl the great pinot noir grapes and put cannabis in. they should have kept the pinot noir, but the northern is bert than the southern pinot noir. >> you're saying if you want to

bottom fish, canopy is the name to go in >> yes, and also kronos because they're capitalized. the one that is a little bit suspect is tilray. tilray likes to come on tv i would like to see tilray's response because they're saying that all tilray may have after everything is $20 million available for inventory,the promise of port dpal operatiuga could help raise a spike up. >> you couldn't borrow the stock. people wanted to short it, but borrow was so prohibitive. >> that's the one they say could be questioned. i pass that on along with home depot. >> okay. i'm just -- >> yeah, funny, sometimes you lose sight of how bad the moves have been. >> versus the drug companies. >> the traditional drug companies like merck. >> the move up, warren's poll numbers and the drug companies,

boom we're coming right back. we'll take a look at some of the pharma companies we're talking about. "squawk on the street" counting down to the opening bell we're back after this.

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like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. coming off two takes of losses for the major indices it is fed day. a presser with jay powell at : 2:30 the opening bell in five minutes.

you're watching cnbc's "squawk on the street" live from the financial capital of the world. opening bell in two and a half minutes. busy wednesday morning as we wait for the fed decision at 2:00 dow will have to operate without the benefit of boeing, jim, as the faa administrator told phil lebeau that certification for the max not going to come this

year as boeing had hoped. >> boeing have to be careful they had to make this determination because of the way that they do accounting. about whether it would be certified. but when i was watching phil's interview, once again, i was struck by this discord nature of hope at boeing, versus reality with the faa and think about all the airlines that are owed money and phil's been doing this reporting that basically says, you may think boeing will come out unscathed, but not yet. not yet. >> journal has this piece about an faa analysis which might be released today in which they found given the initial problems after the first crash could have averaged a crash every one to two years without agency intervention >> well -- >> you hear more about that. >> breathtaking. boeing's going to come through this, come through this. you're going to want to-- you're going to fly one of the planes but they're in the going to be

done until everybody is sure that this thing is the most -- like the safest place on earth a lot of the chatter is, well, the military would never have allowed this, like, the pushback was, but we're commercial. my friends who i have a friend who is in the -- involved with actual redundancy in the military, who would tell you, look, they're going to have to end up being like the military and if that's the case, well, it is going to take a little while. and also retraining, retrain, which they mentioned, after you do simulation work, nvidia is the way to invest in simulation if you want to be in how to do simulations. nvidia does simulations. >> they do. >> nvidia is running millions of car crashes a day in simulation in order to figure out what autonomous vehicles will do. i think nvidia keeps coming up as a way to talk about all the good things that keep happening. >> to the opening bell here, with all that in mind, the s&p 500, the cnbc real time

exchange, the big board, software analytics company new relic celebrating the fifth listing anniversary. nasdaq, brazil's xp inc. >> new relic is an anagram for the ceo. if you google the letters, it is new serny, new relic like rosemary's baby you probably don't remember. >> what movie? rosemary's baby. >> i watched it recently scary. takes you back. >> roman castabyes, the an gram. >> john casavedes.

>> did you ever meet him >> you could own an apartment at the dakota for nothing onward and upward. >> as far as u.s. china trade, kind of quiet, bloomberg does have this piece that says the two sides are talking about maybe a reduction in the overall rate, rather than rolling back or deferring december 15th completely. >> i did a piece last night on "mad money," just saying, let's wait to see what happens too fluid and i feel like that what people should be doing is thinking if something good doesn't happen, are you ready with domestic stocks that do well anyway? just in case the futures take everything down. >> reuters has a piece up. citing a source saying that if the december 15th tariffs do happen, that talks are likely done for the remainder of the president's term does that make sense to you? >> it does there are people in the administration that just say why

don't you walk away, given the unemployment number. that was a fulcrum number. that number was very good, i think the president felt embohdaned to say, look, we don't need the chinese just like usmca, the people who love deals, they want to see a deal, want to see a deal i remember speaking with ceo of united parcel saying that's a far more important deal than anything with china. that's interesting because fedex has been saying what's important is the china deal. u.p.s. continues to astound me as being the company that spent a fortune in order to be able to make money i like the company >> we mentioned at the very end of the mad dash the move that healthcare related stocks have made toward the end of the year here, which continues. whether it is the insurers like unh or the big pharma companies. >> yes. >> including bristol-myers. >> up 20% for the year earlier this year in a bad

place. >> dr. cafario made an amazing acquisition. people were like that costs a lot of money. >> that was the bottom she came out and said, it will be the third year of my term you had to buy everyone. will you look at that bristol-myers chart. >> you can see a little dip and that latest move up and that's -- that's the same for many of these healthcare related companies. >> merck, abbvie is doing so well i don't know if you know the abbvie/allergan deal, a prescient deal they have the cgrp, one pill, acute pill for migraine, as a spokesman for the american migraine foundation, not amf like the bowling company, this is the -- this is the holy grail to be able to take the pill for migraine and that allergan has it and will be introduced the first quarter. very positive. >> look at abbvie, they're waiting for various approvals there.

>> closes for the second quarter? >> i don't know. i'm not saying that. still waiting. >> i think these mergers were proving to be very strong and they were done during the period when elizabeth war wanz cleren front runner >> her numbers have come down. >> what is that? >> we'll see. >> it's early. >> mayor pete, what were some of the companies mayor pete did work on? >> he was in his 20s what do you mean work? >> best buy. have you seen that stock you think you can relate his work to strengthen best buy? >> no idea. >> the answer is no. >> i don't know. >> no. >> how about tesla >> we'll talk to adam jonas later -- >> we are? >> yes, we are, the royal we. >> he's terrific legendary wall street funny man. analyst. sorry. mistake. >> you had your complaints with the way morgan stanley structures their research. >> 1 or 500, like 00 or red or

black, i don't know. go to a casino with that guy versus packer. packer still in the game stock. >> segue here. >> thank you for that. we -- the ubs having their media conference and yesterday we talked about at&t and also comcast. comcast down another 1.5%. our parent company its per foreign ministformance after having outpaced the s&p the entire year. only thing i can point to, that $2 billion number they used on peacock. i didn't think it would be a surprise but stock has been down ever since, cavanagh, the cfo, a couple of days ago, talked about 2 billion over the first couple of years for peacock five years to break even but netflix is up about 1%, the chief content officer there yesterday, they're doing a few new things they talked about 26.4 million

people having watched the irishman at least in week one that's 70%, that would be the include me and my family we have 50% through. we're still going to watch. >> my favorite moment, in the casino, where, by the way, jackie wilson passed away. >> really? >> yes >> more importantly, they also talk about providing more transparent number to producers of programming for them. sarandos saying we're doing more transparent numbers by numbers, we informed all of them of the watching behavior of the show in the first 28 days for seven days as well. so they know exactly how they're performing on netflix, and then we have been able to release the numbers more publicly. that was a criticism of the company that i heard from producers, we have no idea how things are doing, and when it comes to renewal time, they have all the information and we have none. >> have you seen yesterday, needham has a pace iece i have n

front of me, talking about domestic numbers going down. this morning piper comes out and says domestic numbers going to be up. preliminary search index says that there will be subgrowth of 6% domestic. you have a real disparity here. >> the battle is -- needham says 260. piper reiterates 400 >> isn't that something? you usually -- that's a very wide disparity in terps of people wanting to own netflix versus wanting to shorten netflix. i think one thing they did was they talk about netflix, the new metric netflix originals, how many they have and they're up 3% year over year, signaling a more engaging content slate. so this is really kind of institutionalized in the notion of what drives netflix stock, original content, i don't know if you think that matters, i do. >> yes >> very much >> i watched -- >> not there for me and us, we watched -- >> our street was closed for a week, for irishman

and they had all these cars, the segment that was actually -- an assassination and it lasted maybe seven seconds, just shows you how extensive it is to make a movie. >> 175 million, that's the number, right, on "the irishman". >> yes, very close meanwhile, a report that disney has 22 million downloads >> i saw the stock up another dollar by the way, if you want to play that, you can also not just roku, trade -- ttg. >> yeah, that's mobile apps. >> not bad >> no. >> a lot of people. >> enjoyed in our home. >> yes >> thank you, verizon wireless for first year free. >> you're welcome. >> street is a lot more unified on apple as bamle goes to 290 and evercore to 305. i think that might be a street high. >> i was -- boy, people want to get ahead of the next quarter. i hope they don't pump it too much there is good stuff about

qualcomm and how you might want to own qualcomm because of this. look, 5g is a gigantic theme but the 5g could drive three years of 200 million plus iphone units. this is this bam piece the cycle could be smoother. you can't help but feel great when you read these. and remember this stock, where it was, in january, $120 lower >> apple >> yeah. >> it is stunning. 70% increase this year for the largest -- >> for the second largest company. >> it was the second -- >> the numbers, though, is it really that easy, coming to buy apple, microsoft and facebook. >> not facebook, but the others. >> why not facebook is up 53%. >> facebook lowered the boom in the third week of july last year, horrendous. >> if you just took the pain and here you are. >> okay. but that's not been a great

stock, facebook, there are better stocks. >> really? i take 53% every single year. >> double the market, no >> what is better. >> smooth year over year. >> smooth it >> it has not been a huge winner if you look at some other stocks that have been huge winners. roku >> okay. >> i'm losing you here. >> i'm saying there is -- >> would take a 53% move. >> go back to the drug stocks, you were doing so great with those. that's the ones that had to be bought >> okay. >> j&j breaking for 140, opioid. >> your point is good, over two years, facebook, is actually underperformed the s&p. >> versus lam research, recommended again today. look at lrcx i don't know if you follow lam. >> only for you. >> it is amazing stock lam research play on capital equipment. that's what i'm talking about.

lam research >> all right >> that's what i'm talking about. >> chipotle, cmg, have you seen cmg. that is something. >> yes. >> carne asada. >> two years, chipotle, 160%, s&p 17%. >> well, there you go. that is -- that's just brian nichol, just crushing it double digit gains, same store sales. >> we mentioned apple earlier. and tim cook did come to the defense of monopoly in business, saying apple is not one, said monopoly by itself isn't bad if it is not abused the question for the companies is do they abuse it and that's for regulators to decide, not for me to decide to we think apple is -- samsung's play. >> i don't know. no geez, if you add in all the different flavors of cell phones in china, cell phones are -- that's -- the best -- it is a

duopoly at some places, but kind of a dog eat dog world so i don't know, monopoly is really in play there i just don't i think that it is very competitive world. >> in what >> cell phones. >> yeah. >> yeah. >> it is >> i agree with you. >> do you? >> well, more or less. >> yeah. >> above a thousand bucks, good. make it a single word show good. >> okay. >> let's just touch on banks we did get some comments yesterday out of the goldman sachs conference jpm, trading revenue looks like it is going to okay this quarter. up front, meaningfully. >> these stocks are up 34% 33%, 34% remember when if you were so worried about that flat yield curve, people wanted to sell them, wow. they are doing so well, yesterday there was a downgrade. saying it is time to swap out at jpmorgan, to where to where

>> they didn't say. >> no. i just think these stocks are -- bank of america has a good mobile download. bank of america is -- >> 10 million? >> yes that is the -- remember, it is not just millennials you have brian on, it is not just millennials >> he's coming on. you know that. >> moynihan is coming on, with adam jonas. >> and frost wilfred frost. >> what is that, like bond james bond >> how do you like your martini? >> shaken, not stirred >> thank you >> is that how wilf likes it >> he's already wearing a tux dough t edo, underneath his suit. >> underneath the wet suit >> yes. >> when he goes up and blows up the enemy? >> yes. >> boeing was dragging 60 points off the dow. as you see, dow managed to claw its way back to the flat line. hanging on to 3137 cannabis fun to watch.

>> yes. >> she points out the top six public cannabis companies this year have lost 25 billion in market. >> 25 billion. we had one of those, we do thing at the 5:00 about the big number and the big numbers, like cannabis, 50 billion in sales, supposed to be next year, by the way, just get this, i've been trashing home depot, 2020 is the peek year of investment, could be fine. i've been -- this is my fourth mention of home depot. wanted to throw one positive in. there we go. on the cannabis, once again, before we write it off, there is a company run by david kline, a real executive, and that's canopy and it is -- >> we spend a lot of time talking about it. >> jane wells will go out there and do some pretty good research. >> i was listening. >> okay. >> fine. >> let's get to bob pisani, see what's moving on the floor. >> happy wednesday and sort of an indeterminate day

of trading take a look here materials on the upside, consumer staples, healthcare, little weakness in consumer discretionary, home depot down a little bit, disappointment there. it turned positive despite fact that chevron was weighing on the markets. important thing about today, fed meeting, but, boy, what a different fed meeting today than it was last year remember last year's in the time, december 19th, later than normal this is the s&p for december of last year, what a mess that was. here you go, this is the december 19th fed meeting. they raised rates for the fourth time, 2.5% as i recall we had this whole cascade down to the close on december 24th when we were down, what, another 2% or so on that day, 2.7%, the worst christmas eve ever we had the fed raising rates we are concerns about the government shutdown and the trade issues remember, december 4th, when the president came out and said, i am tariff man, we dropped

another 11.5% on that day. by the time we got down to where we are today, what, december 11th or so, bottom line, down 5% for the s&p already. we're flat going into december right now, for 2019. the point is, this is a completely different december than we were seeing -- who knows how it ends, different numbers overall. talked about aramco. i sturuggled to describe how bi it is. they did get it done this 10%, that's not a typo there. that'shappening because that was the limit for saudi arabia for trading individual stock they got the deal done the bottom line, it was the largest ipo ever that was one of the goals here they pulled that off there is saudi arabia. alibaba, 26. softbank, 23 ing agricultural bank of china, notice the american companies there, we had gm, visa, and you had facebook they're all 16 to $19 billion

range. so american companies kind of further down on the overall list i struggled to try to describe just how big aramco is compared to every other company that is out there. certainly every other energy company. i think the fair comparison is just look at the aramco deal, 1.88 trillion, total market capitalization that includes the government share. but the s&p energy sector, all energy companies in the s&p 500, everything including exxon chevron, 1.1 trillion. saudi arabia, aramco, saudi aramco is 50% bigger than all the energy companies in the united states put together i think that gives you an idea of the scale of this company another important thing is to remember if you're a global investor, you own saudi arabia, we keep saying there is an etf for that the emerging market etf, the eem, one of the biggest in the world, saudi arabia is already 2.5% of the market capitalization of that particular etf and that particular index this is going to go up

notably as a result of the aramco deal. saudi arabia is also in the old world index, all the big stock markets in the world 0.3%, that will rise the point, doesn't mat wler yte whether you want to own aramco or don't, if you own global etfs, chances are you own it in the future carl, back to you. >> thank you very much. to the bond pits, rick santelli at the cme in chicago after getting cpi an hour ago. hey, rick. >> talking about cpi, carl, if you look at the headline year over year, which is up 2.1, to a chart, that is exactly a one-year high. so going back to november of 2018 the reason i mention it, i don't think it is hot to the point where it is going to get any major notice by the fed or the federal reserve board. but nonetheless, it isn't lower and it isn't dropping, but it also isn't the preferred gauge of adjusting inflation to the federal reserve. look at one week of two year

note yields. notice how they climb steadily higher the short end has been much firmer of late been a bias to the flattening of the curve. one week of 10s, maybe only being a little too delicate here, it flattens out, that has been an important feature of the long end of the market, not only here, but sovereigns in general. if you look at a one month chart, you can really see how we are flattening out on the right side of that, very similar to the next chart, but for a different reason this is the dollar versus the chinese currency look at how that's flattened out. in the past, you could almost handicap how trade negotiations were going by the volatility and direction of this trade. but it is really flattened out maybe that means something different and different can only mean maybe we're getting closer to the promised land carl, jim, david, back to you. >> rick, see you in a little while. rick santelli. still to come, quite a year for the carlyle group.

shares up 90%. stay tuned for an interview with the co-ceo we're right around 3139. donald trump failed as a businessman. he borrowed billions and left a trail of bankruptcy and broken promises. he hasn't changed. i started a tiny investment business, and over 27 years, grew it successfully to 36 billion dollars. i'm tom steyer and i approve this message. i'm running for president because unlike other candidates, i can go head to head with donald trump on the economy, and expose him fo what he is: a fraud and a failure.

between boeing and home depot, you are dragging about 74 in the dow the two worse components, chevron and walgreens. don't go away.

a couple of things are coming out bio is ahead. i think he's done a remarkable job and this stock is up 34% that could be a break out if they report good numbers >> all right, jim. tonight we got trade desk which is one of the most exciting story of the world vmware has been kind of held back by dell les let's find out what it is doing there and nikesh

it will be an exciting show. i like this. i like this show >> it is a great space to watch it right now >> when we come back, exclusive with carlyle group of ceo and b of a to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

. good morning, welcome back to "squawk on the street," i am carl quintanilla with lesley pickers and david faber. market is 50 points in the red our road map today starts with the world's most valuable listed company saudi aramco we'll take you live for more on its debut. what investors should be looking for heading to the last decision of the year. more head winds for boeing, testifying on the 737 max.

>> we begin with aramco. hadley gamble is live. >> reporter: a long day in saudi arabia the saudi government is saying i vindication, vindication for all of the talks the last four years. the ipoar aramco, i got to tell you from the start of trade this morning at 10:30 local time. we saw the stock up 10% and it did not fall from there. that's just over $90 per share a lot of them spoke to us at the aramco conference this morning when they rang that bell telling us how thrill they are we can see saudi aramco opening

higher tomorrow, trading up as much as 10%, possibly getting above $2 trillion. guys >> hadley. what does today debut means for potential future, secondary listing asia some where. do most people believe today's is successful enough to accomplish that? >> it is interesting because the folks that we have been speaking with the last several months, a lot of momentum following those attacks on saudi aramco. remember at that time this was really used to gallivan neuroscienvanigalvanize. when you look at the possibility in asia, for example, as we seen reported lately in the past, china and japan. japan is looking attractive. it is interesting to know as well as the retail portion of

this we are talking about .5% 5 million saudi individuals decided to buy aramco. that's 13% of the population that's a signal in spite of the report we heard of the last 24 hours that so many folks been involved in the ritz-carlton round up at least 5 million saudis decided to buy in. that's confidence in the leadership >> certainly on day one, hadley. >> interesting contrast for day one pop and limit up on aramco along with the warning coming out of chevron >> that's a very good point. you start to see value of share and how people are assessing the assets and oil in the industry a lot of people state side and europe looked a the valuation for aramco, one of the big reasons with this deal, it is only 10.35% of the aramco ipo

which made of foreignin vestinv. it is interesting when you see the 10% jump whether that indeed was true from those who did buy in >> we'll watch it closely obviously. certainly the way it is listed in public markets. >> indeed. >> in the meantime, investors are waiting for the fed's decision later on this afternoon of any details of china/u.s. trade talks. >> joining us, our sun trust advisory, good morning, guys, good to see you both keith, let me start with you to talk about the price action of where we are, leading into the binary effect of today's fed decision but whatever we are going get on this sunday's tariffs. >> well, i think the first thing, some perspective since

october when we are on the show, we thought it was a nice rally, markets co marke markets co markets consolidated ahead of this announcement. now on the tariff front, there is a lot of uncertainty and unpredictability over this i think over next year there is an incentive for the white house to have a cease-fire because the last two presidents that were not reelected had something in common i don't think the administration will want to see trade over hang for the economy. >> i guess from an economic standpoint, we know the basic narratives, consumers relatively strong, seemingly affected by - it is corporate that's more anxious. >> we have seen business investment trending negative which is one of the beg red flags i would say for the economy heading into 2020. the fed seems optimistic that we are going to maintain this 2%

growth trade with inflation back to 2%. i don't know if the data supports that rose y outlook. the fed clearly wants to move to the sideline, i think we'll need more confirmation in the data before the fed can really breathe easy that they are done easy >> really? wh . >> the fed set the bar relatively high, 2% growth and 2% inflation inflation is 1.3% and growth, if we see begin to falter it is relatively strong for now but if we start to see business is pulled back in terms of investment and hiring from the wage pressure, that could derail consumers which is the soul support of the economy >> of course, we got tariffs on you know the potential risk for a hike on tariffs this weekend. >> absolutely. >> there is so much expectation that's built into the market

people expect kind of a fed policy more of the same at today's meeting. is there a risk that there is all of this consensus kind of built into the market for factors on the surface are by nature >> i would like to hear from the chairman during the press conference addressing how much of the fed's forecast. 2% growth and 2% inflation is based on the realized assessment of the data for improved outlook particularly base on some sort of near-term agreement between u.s. and china >> we'll get a take on that. keith, i wonder, we started to see some macro desks talking about repo disruption and possibility of further repo disruption going to the last few week s of the year. how well is that into your short

term model >> the fed is going to do whatever it takes and not be an issue. it is not a big impact in our view i think we are more optimistic of the u.s. economy as we head into next year we have unemployment rate at 50 years low. now home sales are at a cycle high these are not things tend to happen right before the recession. growth is moderate that's relatively good enough to help the market move forward. i think it is going to be two steps following one step back especially some of this policy uncertainty into the new year. >> keith you also like high yield right now. you are not turned off by being too expensive? >> well, more portfolio context. we kind of push and pull between demand for yiels or yields. we are focusing on quality,

yield pick up in the high yield space. i would say in the portfolio context, general advise is equity relative to fix income. >> we'll get the u.k. election tomorrow do you think the pound is done doing what it is going to do >> we have seen volatility heading antonio the mohea heading most recredential analysis which shows johnson may be losing. more volatility. >> how does that affect what as a lot of the macro does, you have to make choices about 2020 play book. u.s. verses europe >> we are still leaning the u.s., the performance differential is narrow for someone. we need the global economy to recover and we need interest rates high in europe, the financials are the big part of that market. they'll do better. we are skeptical that the global

recovery will be as strong as consensus next year. >> lindsey, we were chatting of chevron paving a $10 million charge relating to the over supply in the asset of the shell arena. is that a concern for you especially as it relates to this over abundance in the u.s. and how it can potentially spill over >> i think that's absolutely a macro concern. the chairman of federal reserve pointed that out, that's one of the concerns he had going forward if it is a bubble scenario which could be the next shoe to drop and derail the u.s. economy. it is something we keep a close eye on but not something we are factoring our base forecast as one of the primary risks to the downside >> even though it means oil prices may bel lower, it is a potential - >> the fast way to derail consumer is heighten energy prices, lower energy prices can

help sustain consumers >> below 60. lindsey and keith, wie'll see what powell says this afternoon. thank you. >> when we come back we'll go out to the golden financial service conference get an exclusive from the ceo of carlyle group. first, a look at what's still ahead on our show. good morning jane. >> good morning. there is still a gaping hole in the business model now a serial tech entrepreneur in he has a solution we'll have that story when we come back.

let's get out today two. our special guest. >> hey, lesley, thank you very much thank you so much for being here >> i am glad to be here, thank you for having me. >> we want to start the macro sentiment. overall the upbeat tone, particularly the upbeat tone of the u.s. consumer. do you think it is just the consumer is strong >> the consumer sector is strong it is offsetting some of the business we see for industrial when you take a step back in a period of time, we are seeing

slower growth globally, it is not negative, we still have positive work but the whole world we are seeing it slowing down the number one question we get is do you see a recession of 2020 our data would say probably not. the real question to ask is longer term. >> only probably not >> my confidence level is not as high as it was a year ago. i do think there is still possible mentions from the consumers that you pointed out that we'll not see a recession the morrell vant question is there is a lot of secular structural forces which basically creates an environment in an extended period of slower than ideal growth. a lot of volatility quite frankly. in that environment it is going to be a slow sideways grind for a lot longer than people may think. >> one of those issues is the trade war with china as you assess the current state

at play, do you think there is a genuine incentive on both sides to get to a deal soon? >> well, i am not in the prediction business anymore whether we have the phase one or two. if you take a step back, we are in a period of time where two large economies and ecosystem are trying to figure out the right way for each other i think we are in a period of time where construction engagement will be needed, maybe on a multi lateral bases to find their standards on an international standard we have free flow capitol and smart regulations so these ecosystems can learn to coexist. to get to that, we'll take a lot longer than people think i am hopeful, i am not predicting if there will be a phase one deal

we need phase one to get to phase two or three there are a lot of structural issues at work here. i think we should all be prepared thprepar prepared for a long period of time there will be a lot of bumps on the road as these two ecosystems learn how to coexist with each other. >> you have been co-ceo for a couple of years and made a number of changes. i wonder how difficult it has been when you are taken over from infamous successful founders who are still sort of involved in the business if not operationally in charge. whether it is the credit business, has it been hard to make changes, what do you think is the biggest charges >> the industry is growing, competition is tough the world is changing. transition happens two years ago and we have been very focused on our priorities we are driving earnings and prove margins, we got important

issues going on and certain s segments like global credits cab finally we wrapped it all up with changes in our corpus structure where we'll have the most transparent and the most aligned governance structure in the industry move forgward these are the all corporate initiative i have to point out culturally we have made huge strive in pushing diversity and division >> we are already one of the leaders in diversity 50% of our new employees are women. and, the essence of our business is to make great investment decisions. we are in the judgment business, we want to have the best diverse and the most experience viewpoints around the table when

we have complicated issues we are leaders in the industry on this respect, quite frankly, we have a lot more work to do. >> what do you feel of market valuations we don't talk about it a lot it was an extreme example. was it representatives also of other examples >> it is hard to say market valuations are not high. valuations are high pretty much across all axis, you name it you are going to see asset valuations like you see everywhere, when you have a business like ours which is very diverse, all regions of the world looking at all different industries, the issue for us is not to say how can we buy something and hope that the multiple valuations expand everyone moeven more for us, how we create value is to make the business better, we

have to create ways to help them grow, improving margins. we are in a world where i am not betting on valuations coming down you may see dislocations in periods of time where values are reset. we have to prepare ourselves and invest with a view that we have to create values not by trying to make valuation multiples higher but by improving the businesses fundamentally so that they can earn a higher rate of return through just good, old fashion, block impact. >> do you fear a twice pressure going into your business in the way we see active management whether it is shipped into >> our industry is not immune to sophisticated customers trying to ask for a certain type of price. we have been quite fortunate our funds have been in demand

and we have been over subscribed we have a terrific track record. we have been able to maintain pricing. it is clearly an issue that's going to continue in the industry basically there are head winds to our industry, it is a $62 trillion business. i am hopeful to maintain prices. >> i want to move on and talk about taylor swift >> she's a performer we have a strong team at carl e carlyle, working in partnership with management. i have got every conference in t in -- confidence in the world it will be successful >> does carlyle standby and the legal terms of investment that's been made. do you understand some of the

more emotional human arguments that also applies. >> in every business there are risks and every industry, there are risks. when you are in an investing business, you have all sorts of risks from regulatory to financing and these risks are no difference they're peculiar and particular into this industry we are well experienced in terms of managing through and working with our management teams to take it to great outcomes. >> senator warren tweeted about this issue taylor swift is one of many who he is work has been threatened by a private equity firm >> i think private equity -- we have anenormous value added function in the economy because of the returns that we are

providing to first responders, teachers, folks and unions and we provide the return that isolated rain i believe people, grandmothers and fathers to retire comfortably that's a little understood, what's not really understood is the role that we play in our company. we help businesses becoming better everything we do is to invest for impact it is not only about looking for financial returns but we are in there helping and improve the issue policies and create and drive diversity, not only at the board of these companies but within the company itself. figure out how can we invest more in our r&d, capitol expenditure to drive growth and create jobs. there is a whole aspect to the industry that's not as well understood but it is darn value added. that story is probably something that needs to be better. >> you mentioned your returns

long-term and how impressive they have been and we talked about the change in corporate structure. to finish on this, whether do you this i investing in the next carlyle productive fund or buying stocks? >> both. >> our stock has a great run, it is up 80%, 90% this year in large part because of all the initiative that we have been putting in a lot more work to do and hopefully we got a great team in carlyle and we'll be successful on the front >> thank you so much for joining us, mr. lee, it has been a pleasure >> still to come, pot smoke is going up spot stocks going up in smoke.

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now time for our etf spotlight. >> taking a look at the consumer discretionary etf, xly, it has experienced a roller coaster ride over the past three months currently trading a 0.1% disappointing investors, amazon, mcdonald's and nike and starbucks. modest move this morning xly is up more than 22%. they're still under performance overall. s&p 500. the country's largest marijuana business conference kicks off this week. our jane wells is live with more of the challenges facing the industry we know there are many >> reporter: carl, door opens about three hours.

i want to show you something nearly as big. a mile from here is the largest marijuana store in the world take a look at it. it is called planet 13 it is over 5 million sales a month. mostly in cash one guy thinks he can cash in on he made his money at yammer and sold to microsoft a billion of dollars. a year ago, he and partner put in $5 billion to start wayv, a digital platform to handle their logistics for online sales and delivery now it created a b to b digital system for cannabis. what's taken so long >> it is 100 times harder. >> retailers like los angeles

are going to use wayv payment. >> you risk getting a shutdown >> do you have a bank account? >> yes. >> do they know what you are doing? >> no. >> the fin tech company is using hyper which is spending $38 million to create it and build relationships with a banks and credit unions. >> we'll run through one of our institutions or cross our payment network by the end of 2020 >> it is a big goal to fill a big hole in the business model to get everybody on board, wayv is not going to charge any transaction fees >> i wonder how much is being held back by capitol hill.

>> oh, huge, the call back can happen and then you would have more banks coming in, then it would be everybody taking off. wayv hopes to do this first so they can get that advantage over everyone people will leave with impeachment and at an election, that's not going to happen for the next year. >> jane, i hate to ruin any pric pri surprises you may have for future experience. but what is that thing you are standing in front. >> this is the future, my friend you should look at how huge this place is i go on and on of how big this is it is all about extractions for the edible and vape even though

vape is getting a hit. you need these you see companies that are not touching what they sell -- what they sell does not touch the plant. they cancel you sell you a macho do whatever you want with it so a lot is going on. >> all right, jane, looks very interesting. we look forward for more reporting from that vegas conference >> jane wells. the suspect in the jersey shooting published anti-semiti posts online the mayor of jersey city the target was at the market where most of the shooting took place. >> it was a targeted attack on

the jewish kosher deli across the street here. the perpetrator opened the door with two rifles, him and the other perpetrators began fighting over the street . >> the prime minister says the minimum retirement age will remain at 62 workers will have to work at 64 to get a full pension. it comes on the transport strike and there are hundreds of thousands of protesters marching nationwide i i i baseball, a nine year contract the largest contract in history. quite a few mega deals this week in baseball. that's your cnbc update for this hour carl, i will send it back to you. >> still to come joining us later

>> yes, we are >> well, the royal, we >> legendary wall street man >> jonas will join us on the investor's space race when "squawk on t see ces ba ckhetrt"om

steve vix testifying on capitol hill on boeing 737 max planes phil lebeau speaks with the administrator, that was the latest this morning. he has the latest in d.c. >> this hearing is about half an

hour in. representative fazio is about to question the faa did some analysis and their analysis came up with the prediction there would be more 737 max crashes. he's going to be hitting administrator dixon about that why were the decisions made by the faa when it comes toto ce y to certifying the 737 max. earlier today, an exclusive interview, administrator dixon made it clear, this plane will not be recertified this year here is what he had to say >> if you do the math it is going to extend into 2020. >> it won't be recertified this year but do you expect it by the

end of january or february what would you say it is realistic? >> it is impossible to say, phil if i had that kind of a crystal ball, i would certainly be able to share it but it is important that there are teams that are working closely with the international authorities that have been working with us and with the boeing team to do this right. >> and you take a look at shares of boeing under pressure today we reached out to boeing because its guidance all along has been recertification and grounds being lifted by the end of this year and potential returning to surface by the end of january. the recertification part won't be happening by the end of this year boeing has not changed its guidance i think they want to get through the stirring and potentially, david, we may hear from boeing what the faa is saying today, what they told us runs parallel

of what boeing have been saying, we are close seeing this plane being recertified and potentially at the end of this year that's not happening david, back to you >> phil, what accounts for, well, miscommunications so to speak between boeing and the faa? >> you got to read between the lines here this comes down to boeing has been putting out statements that clearly have irritated not only administrator dixon but members of the faa who have said all along this process needs to go slower the boeing perspective has been look, we think we have been completing these steps the certification should move at a quicker pace that's why you have a slew of statements from the faa between november 11th and last week. you don't call the shots in terms of when this happens we call the shots. right now we don't have a timeline that friction is clearly there

between boeing and the faa publicly, they'll say we are working with the faa, they call the shots but there is friction there. >> all right, phil, thank you. phil lebeau. >> we are getting news alerts from the roundtable, let's get to kayla tausche >> major multi national companies plan to hire and invest less over the next six months they still expect sales to rise. the 140 ceo were surveyed from november to mid december josh bolton is the president and ceo of the business roundtable he says quote, ceos are justified in their caution of their state of the u.s. economy. uncertainty surroundings, trade

policies and lower growth are creating head winds for business lawmakers should expand and not restrict trades. the group sees the deal as a positive development and while the survey results show an expanding economy, it is worth noting this is the seventh consecutive decline and optimism among ceos that decline nears the period of trade tensions here in the u.s., though we should note that when the ceo were surveyed of the biggest cause pressure facing their business, half of the ceos said it was labor and not trade. >> we talk a lot about corporate confidence appreciate that, kayla tausche with some numbers. >> as we go to break, do not miss an exclusive with jeffery gundlach talking about where he sees the next clues to a crisis is coming.

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a handful of 2018 biggest losers have gone for first find out more on cnbc.com. >> more "squawk on the street" is coming up

government involvement increasing and private investment is booming. investor interest is skyrocketing the outlook is optimistic. adam jonas, it is great to have you. >> thanks for having me, adam. >> is it private or public that's driving the train right now? >> both, all of the above. the key take away, morgan

stanley, from a government perspective, the national security interest at the highest level in the executive branch is very high and under estimated by the markets. space is not a nice to have, we have to get this right that was a theme from our summit yesterday. at the same time, you need the investor interests, it is really pair bott parabolic from a low level that combination of government priorization, absolutely no exception and we think investors have to pay close attention. >> you are seeing financing and think a little bit more of what we have seen in the public market of people not generating the irrs they were hoping for.

are you seeing that spill over into the space investment as well >> that was one of the themes from our private capitol formation panel at the summit yesterday was while there is not a lack of available capitol. you have to have the right business model you can't throw asset in space and hope that you are going to have a contribution margin in five or ten years. there is some business that can't afford to lose money into that for r a while things like analytics and data and sensing, certain technology that can build on. and evthe space tourism business is fundamentally grounded on technology that's been around for many, many decades and many ways it is not science fiction >> how much does it matter now there is a public equity of virgin galactic.

is that a catalyst for more interest >> absolutely. >> when we use the morgan stanley space team the cross sector efforts that we have with the strategic of backing of morgan stanley. the big markets are communications and transportation and observations. the human exploration part is critical to increase public awareness and public support shortly before neil armstrong died, he was asked are you disappointed of the pace of this space program? he said, "yes, i hope we could have done more." when asked why, when we lost our rival, we lost the public support. that's going to be exciting thing for the capital market of that innovation. >> when you think of trillion

dollar deficits and interest spending, making cuts to food supplemental programs, how much of that is a push back on the national security interests and sort of putting a flag instance. the emphasis is duo purpose. the difficulty of putting a man in the moon, bringing them back alive, the secondary implications for compute, internet, sensor have affected and we have been monetizing in the philosophy commercial of activities and so every step of the way, that interplay between government and national security which may have an unpleasant under tone, that application, that's what's different this time so when you get folks like bezos and elon musk involved, you could have scary national military type conversation, these technologies have direct

applications growing access to the internet and communications and many x bytes of data that we need to move around the world. >> it is not just national pride. >> this is building the future of our world including as we get distance from earth, we suspect as w they're going to come back and come on your program and be climate advantaevangelists. >> greta thunberg is on the cover of "time." >> we can take a view right now and show people the picture, adam, and get the idea. >> there's no substitute to getting someone live coming back and saying i was there and i saw it so, you know, and again, from director kevin o'connell, director of the office of space at our summit yesterday, he said this is bipartisan there is very little debate on a partisan line of the importance

of space at the government level. >> really quick on tesla, we follow your coverage so closely. last week, earlier this week -- >> i believe it was last week. >> why not get rid of the bare case number? why not just jettison it out of the research. >> if you looked at the fixed income markets and if we were having this conversation just a few months ago, their bonds were trading in the 80s they have debt equal to not quite one times their trailing prior year revenues. it's a very indebted company we have a lot of unproven economics and volatility and competition. so i would argue the combination of the leverage and uncertain outlook, we want to make sure we covered that we could debate whether 10 is too aggressive or if it was 90, whether that would be a conversation leverage works both ways here. i would remind you when we first initiated on tesla in 2011, we

had a -- stock was 22. we had a $70 target at that time our bull case was 150. our bear case was 0. so you could have just as easily gone back and said, hey, you're adding no value. perhaps we got lucky along the way, but the emphasis is leverage we had to get that risk out there for our clients. >> and we don't expect, unlike what he did with solar city, that he's ever going to merge spacex into tesla, right >> i would never say never i don't know anything -- >> other than launching a car into space. >> we've written about this in our research, about the ecosystems and how tesla's cars are producing and consuming massive amounts of data and iot. the internet of cars is the mother of all iot markets. now having a cyber secure redundant resilient pipe in space may have this some benefits i think elon musk is really sick of us asking about that on conference calls

i'll let you draw your own conclusions. but there's room to cooperate and you could ask glenn shotwell and others that question and have your own discussion thank you for having me. happy holidays >> adam jonas. let's send it over to jon fortt. >> we are going to check back in with the goldman sachs financial services conference and wilfred frost. ceo of bank of america, brian moynihan, will join us in just a few minutes on "squawk alley." t to buss, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready.

welcome back to "squawk on the street." i'm dominic chu. markets largely in a holding pattern ahead of that big fed rate decision later on this afternoon. we are keeping a close eye on the consumer discretionary sector, as you can see here showing a bit of weakness. one of the big laggards as we head into the all-important holiday shopping season. as if we look at one of the etfs that tracks retail names, we see big movers to the downside the worst performers out of the s&p 500, you've got children's place, gamestop and abercrombie and fitch. american eagle another big laggard after forecasting weaker-than-expected holiday

profits citing softer demand keep an eye on those and other small retailers, carl. now i'll send it back down to you at the new york stock exchange. >> when we come back, an exclusive with the ceos of u.p.s. and cvs health, announcing a new ptnsharerip "squawk alley" starts in three minutes. don't go away. - at southern new hampshire university, we believe in education built for all people. - [woman] snhu was the best experience of my life.

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