"squawk box" begins right now. good morning welcome to squauch we are live from the nasdaq marketsite in time square. we'll start this morning with the markets. the dow closed 100 points higher logging the 16 record close of the year year to date, the down is up 21%. the s&p and the nasdaq are on track for the largest gains since 2013 but the s&p could post its best year from 1997 if it just gains two more percentage points by the end of december not a long way to go to see the best year since 1997 look at equity futures this

hour dow down by about 40 points, nasdaq up about four points. watching the treasury market, you'll see the yield for the 10-year is at 1.875% we have a big dip in the bri british pound. it fell more than 1% the government is looking to make it illegal to extended post brexit exit period they'll have to the end of 2020 for the transition period. that's the time the eu will continue to apply if still a member boris johnson wants to cap that period to just one year to help fast track a trade deal with the eu >> looking past you phil to phyllis here boeing is down five, so it is flat again yesterday, we would have been up a lot more

boeg is suspending production. boeing plans to reassign workers and doesn't expect furloughs or layoffs but it will have ripple affects and impact thousands of jobs over a ripple across the supply chain it is not going to hike. phil is on set with us it is better they can save some money. >> i can't believe you could build four of those in a month, which tells you the size of sthoez >> it really is the effect on the u.s. economy >> how do you save money if nobody is furloughed

>> you are not building aircrafts. they are estimating about $3 billion and estimating down a billion. it would be cut down >> i've heard they would offer assistance the concern for boeing is if they have to go through layoffs, ramping it back up it will be choppy, messy jp morgan is out with a note, not to expect a clean year in determines of deliveries and

data from boeing follow 2022 >> you have to store those >> they have more than 400 that have been sitting. >> a lot of them there are in washington you've seen the pictures they are in a packing lot. people are showing up at work and parking next to the 737 max. they could lend us one but we probably want one that is a little saver >> is there any chance that the fix is more than software and what would that mean >> are you talking redesign it >> i think it is software. >> i've seen people say that going back to retrofit the 400

that are sitting there >> right it is software not like they are going to go back and tear open these planes. not to be labor the point about management but where are we? >> low they have made assumptions that they made in terms of when we redesign the 737 this is what we are going to do and how we'll operate. those assumptions were wrong talking about how long it will take to fix it dealing with the faa way off. way off. they miss played the faa horribly all of those factors come together in terms of management's credibility being really low >> when you said displaying the faa, there is a new sheriff in

town new administrator. >> the die was cast a couple of days after the accident when the faa stuck with them. the rest of the world said shut it down. the rest of the world sathey sa the data we are getting, it is all good now the faa says, we have egg on our face >> we had a boeing an lealyst on yesterday with a price estimate on the two-year. two years from now, maybe it is a different story if they can get things back up and running >> saying below 300 is a possibility. in december of last year, it was below 300. >> then it had a massive run

upaft >> it's like like $2 billion a month. >> that is also factored into delivery they haven't been delivering for some time. >> it is hard to do 3% >> what happens if they allow it to go back up and deliver 400 planes in a month? >> they won't deliver 400 in a month. two weeks ago, the faa came out and said we are not giving you designated authorization in the past, i would say, becky, you are good enough. i've seen what you can do. you certify these on your own. the faa is saying, we'll do it one at a time. that's why it is going to be a slow ramp up that might change. a couple of months down the road, if they feel comfortable,

they may say, okay, you can go ahead and start certifying and seeing deliveries increase from there. >> phil, we'll see you later did you come back to be on "squawk box" or other things >> joe, it is all about you. >> about the show. >> i got on the plane they said why are you going to new york. i said to see joe. >> have you seen the doing shows? have you seen the military dogs. jump 15 feet in the air. why do i get teary because they are military dogs >> because you like dogs better than people? >> that's what i said but i took it back because it sounded terrible >> not because it is not true. we'll see you later. consumer goods giant warning

it is going to be missing the full-year revenue growth for the year blamed a slow down in south asia and weakness in north america. expecting the lower end of the range. shares down around 6%. roku shares falling as well. the ceo plans to step down after helping to find his successor. he helped oversee the transition to a public company and new areas of streaming shares have been up about 30%. now down about 3%. we have a data dump from netflix. revealing that subscribers in europe, middle east and africa have now doubled since the start of 2017. latin america also posting strong growth. asia still a small portion of the business facing slower growth in the u.s.

as the market picks up grouping u.s. results with canada the effort here by doing this data dump, is to try to get investors to refocus how they think about this company to get them to spend a little more attention on the international piece and focus a little less on the u.s. piece. >> was it a big dump a lot of stuff, the data dump? >> are you a child he's a child he laughs at his own jokes go to commercial tease what we got here >> just when we have concern -- look at her. you have certain little phrases. >> i'm in kindergarten now you are about to cry >> it is because of your

reaction how old are the boys >> the boys are nine >> they would like that. >> this is a children's show >> netflix did coming up, what should you buy at all-time highs. we'll talk about market areas of opportunity. later, bonus season. just how merry christmas is going to be on wall street "squawk box" coming right back >> announcer: today's big number 29 that's how many record closes the s&p 500 had this year. stocks are on pace for their largest yearly gain since 2013 johnsbut we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company.

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♪ markets continuing to make new highs but are they running too hot? michael tyler, chief investor officer. and on the set, debbie cunningham, officer of global liquidity market we respond to news here but a

lot of these -- you know the business media, they assign stuff to people every day. here is the one i saw this morning. from some silly. why wall street thinks the stock market is on the verge of a melt up >> where did they get that what are the chances >> why wall street thinks the stock market is on a verge >> not a melt down but a melt up >> so this is positive, not negative >> that's what they are saying >> we have had two months of leading up a lot of positive factors. we have global issues. brexit is not completed but in a pretty good phase. china trade negotiations that at least the phase one aspect is

completed. expectations for slow but steady movement in 2020 is high interest rates are low a consumer you are positive about next year slow but steady. >> slow but steady >> three months ago, there were times we were down under 2,900 and thinking these guys were going to be right about the 2,700, 2,500 targets they have you see where we are today almost 3,200 on the s&p. i don't know whether these guys throw in the towel at this point. >> that haeeadline makes you nervous? >> doesn't make me nervous all of the stuff about trade and brexit, the market you think it is the fed. we've seen people draw the line for qe 4

everything even in the reap owe market everything is supported. does that correlate with that move is that the fed? one part of it, absolutely everything has gone well to me, that is the biggest thing i worry about. we are in the middle of one. these things are going very well i worry how much more good news is there that we are waiting for. maybe we'll get phase two of a china deal we are looking for 8 to 10% earnings next year there are a few things to worry about. the list is getting shorter. these accomplishments, these good things happening, the spending deal right through the election, these are all good

things too much might lead investors to be a little happy. >> i don't know how long the market looks ahead the election may be quite on the radar. we have an impeachment vote. >> you look at the betting lines. that is at 47 cents. there is always a tail risk as you describe it. >> a bernie tail risk. bernie is almost tied with biden. what would happen with a bernie an a warren. the chances aren't zero bernie sanders could be president >> there not zero. probably not over 50%. >> are they over 20? >> the likelihood of that happening is less than 50%, even in a best case scenario.

>> what would that do? would that get you more defensive? >> definitely more defensive less upside. >> less upside is that how you would characterize a bernie presidency less upside? i would put everything in my mattress >> i'd like to know who is going to win in congress and the senate too there are checks and balances. i don't think there is an upside at all i think the markets will go down the way to look at that. next year, we have a much higher probability of small gains there is a much smaller probability of a negative year if it's because of sanders or warren or other things that could happen, the down side magnitude is bigger than the upside it is much less likely inin the case of a democratic

presidency, you end up with something that is a recession risk not in 2020. there is nothing that indicates that would be a slow down. >> exactly exactly. it is just weird i guess it is not a constitutional crisis, right >> if it was a constitutional crisis, usually you have a series of new highs in the stock market >> when is the last time we had a constitutional crisis? i don't know if clinton rose to that i think it did once it -- you know jerry came in. >> don't you think markets look at earnings and cash flow. they don't look at who is president. if trump is impeached and if he's thrown out by the senate, which is unlikely. then you get president pence

which is basically the same economic policy but less baggage. >> some people think it is more baggage. thank you. coming up, more on squawk. get ready for disappointment on wall street. this year's bonuses expected to fall short of last year. take a look at the gains in asia overnight. each up more than 1% squawk returns after this.

welcome back to "squawk box. each year around this time, wall street bankers celebrate more than just the holidays it is bonus season computing that this year won't bring as much cheer as in year's past cofounder of the options group good morning is this like a lump of coal or okay >> it is not a lump of coal but not the grinch either. we've seen revenues go down a bit. we see this year to be a plateau year in terms of compensation. our speculation that comp this year will trend towards the down turn in all different products >> if i am a winner, who is the big winner what group do i have to be in?

>> fixed income is a winner this year their comp has been trending down and this is the first time we see credit and mortgages within fixed income will do better with other products like rates, emerging markets, et cetera >> it says down 1.1% >> is there any group where it will be up >> fixed income credit >> i see it looks like the biggest loser might be anyone living in the equities world if you look at where we are in terms of revenues, you see the stock market at an all-time high equity is taking a hit this year because as many money wasn't made look at what is happening in asia >> can we talk structurally what

is happening on wall street. what we haven't talked about is the kmodization of so many business units ai and machine learning being implemented and what that is doing to comp across the board >> a lot of people talk about ai and machine learning has it correlated -- >> not yet >> it is still to be seen. data science and analytics is being instituted a lot of hedge funds are looking at ai and machine learning very view have figured it out. >> if i'm a rain making m&a banker, how am i doing this year >> superstars always find to get paid if you are a great m&a banker, you should be all right. >> how much am i making?

i'm an md and killing it this year >> you could make $2 million or more >> i'm looking for 10. >> 10, those days are over >> cry me a river. >> a few people might trend into those levels. >> what if i'm just an xl monkey >> you'll sit on a seat and be happy getting a paycheck >> what do i get >> you get a base salary an md is getting $400 base a director you are getting $250 base salary. under that, $125 base salary the bonus pools are not that large. >> you are going to have a hard time ginning up sympathy to us, six figures is six figures. it is a lot of money wall street

gets paid. you can't focus on short-term greed. you got to look at long term to see where it is going. >> you got it backwards. short-term greed what was the motto, you don't get out of bed for less than 10 grand? >> new surveys coming out. with the millennium group, compensation is not where they want it to be. it depends on what direction you want to take in your life. >> i was just joking making a private joke. the boomers. joe is here. thank you, mike. happy holidays when we come back, congress working to pass a spending bill. we'll tell you what is essentially in that bill a measure to curve teen smoking. a look at yesterday's s&p 500

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good morning welcome back take a look at u.s. equity futures. dow looks like it will open off by 35 points news just in from southwest airlines it has removed the grounded 737 max jet from its schedule

another five weeks following a similar move from american airlines. talk about the dominos falling from this decision the move bibeauing to halt production we are starting to see the ramifications of that trickle throughout industry. >> the few interesting provisions to tell you about in the massive government spending bill out yesterday hoping to pass the bill before current government spending runs out. the bill denies president trump the full $5 trillion he had requested to help build a wall along u.s./mexico border keeping the fund stat tick and raising the cigarette purchasing age from 18 to 21 and refunding several taxes that were meant to help obama care and the 2.3% tax

on the medical devices and the cadillacs tax. >> there are also places where you see some good medical plans. i wonder what this means for employers. they were pushing up the co-pays and pushing out the cost back to employees. >> you think now they like it? >> i don't know. i wonder if that was true if they started picking up the cost my thought is no unless it is such a tight job market, you need to offer better benefits >> hadn't thought about it the shackler family transferred more than $10 billion to the trust and holding company over 10 years. it adds further scrutiny over how much the family should pay

to resolve lawsuits over the opioid epidemic. they filed for bankruptcy production for the company worth an estimated $10 billion the family has offered to pay about $3 billion or more to hand back some of the profits they've taken. this report shows the accounting from 2007 on, they were taking out a lot of money putting it into off shore accounts, trust funds and other stuff. >> a lot of money. >> the implication is that they knew >> because of the money they were taking out ramped up greatly over a 10-year period. >> that they knew? >> they had to get it out. >> they knew it was coming >> it was too good to be true. >> honestly, the money was probably piling up larger than previous years the idea that they would pay $3

billion and still have billions left that they had taken out from the sale of profits of opioids. >> for a while, anyone who had any skin in the game would try to convince themselves that chronic pain is something we are trying to deal with here they could fall back on that it became increasingly clear how addictive it was and the opium polypops that were supposed to be used for cancer patiences suddenly became not just used for -- >> there is no way you can rationalize this is all going for those causes >> something highly addictive is a pretty good business model >> i saw a headline. some company involved and making profits on the sales is now making profits on the drug to

wean you off the opioids >> it is like corporate dealers. there is a lot of people -- we saw what was the name of pablo or whatever. saw how much money he made >> pablo escobar >> narcos. wasn't enough land to burry it it was blowing around in the wind when we come back, the house is set to vote on the impeachment of president trump this week. how that will impact your money next >> and talking about safety in the apple app store. stay tuned you are watching cnbc.

welcome back the house of representatives is posed to vote on the impeachment of president trump this week for a look at this and other stories, let's welcome alaska governor, an ally of president

trump. >> you sat down and what did you learn? >> we talked about regulations and what is happening with the trade agreements we had an overview of what is happening over the past several years and economy. things are looking perfect ety good >> what do you think about trade in particular. that has been front and center for our viewers? any insight to how he's thinking about china right now? >> he's still thinking through this process there on the verge of working through this phase one agreement which will be good for alaska and we ship a lot of sea food to the far east we get this first phase wrapped up and then we dive deeper into the rest of the agreement. i think it will be really good for this country >> the house is posed on voting for impeachment this week. what are you hearing in alaska

>> in alaska, we support the president. he's been very good for this country. when he was elected the dow was 26,000, now it is about 28,000 all the numbers are looking good for alaska unemployment rates are record lows. >> it will be hard for folks on the left to convince the rest of the country that this president should be impeached. the economic kahe can nommic ine hard to beat >> you yourself faced a recall in your state. how do you work with this and try to find a way to build consensus on both sides? >> the impeachment was being talked about before the president even took office

we know it started after he took office in my case, into my first term, there was talk about a recall. this was spurred by folks on the left who are not happy about the recall making sure we get out and speak to all in this session and talk about the good things happening and get input on how we can fix some of the things we could work on >> do you get the sense some of these things are more divided? >> i think to an extent. folks are, as you say digging in in certain respects. the average american and alaskan want us all to work together and move the country forward, the state forward. that is my intention speaking with the president he would love to be able to work with the other side, the democrats on a whole host of issues but this impeachment and

the recall effort in alaska is a distraction for people in alaska and this country >> you tweeted to elon musk recently about the cyber trucks and you'd love to have him come build them in alaska did you hear back from him >> not yet we are going to reach out again. we believe our rare earth and minerals here are great. we take care of the environment. mr. musk and other manufacturers are going to need our rare earth, our minerals. we'd like him to come up and look at alaska we know he has a proving ground here for his vehicles. we'll talk to a number of folks about the good things they can do for them. >> we like the evs but keep drilling drill, baby, drill you keep doing that.

you got some good hydra carbons in alaska too. that's a lot of the economy. >> absolutely. we used to be producing about 2 million barrels a day. a few days ago, we produced our 16 billionth barrel of oil we are looking to be part of the energy dominance from this country. we are doing our part. >> thank you for joining us this morning. >> thank you have a good christmas. >> you too coming up, the boeing ripple effect they will halt the production of the 737 max in january coming up, what does it mean for management, the economy and other companies affected first we'll look at what it means for boeing share holders "squawk box" will be right back. >> announcer: don't forget to subscribe to our podcast you'll get interviews, original

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boeing shares under further pressure this morning after the company confirmed yesterday it would suspend production of the 737 max. getting wind of this the stock is now negative for the year joining us to discuss what's next, seth kaplan, principal at kaplan research. i was channelling you with the worst case scenario when i posed the question to phil about whether there's any scuttlebutt with something above a software fix. you said that that at least has

been murmured, but that would be bad? >> exactly no indication now. there have been talks over the months about various other concerns about the aircraft. right now looks like still flight control issues, which are software issues. those issues that we're all too well familiar with with the mcas system yeah, as boeing continues to produce airplanes it has to hope that that's all it is. that it's a matter of bringing in the new software because otherwise it would have turned out to have produced planes that are obsolete, that you have to go back and retrofit again that's something we have to consider, a non-zero risk. >> non-zero risk let's hope it is a zero risk great company. want them to get back on their feet, but the minute you realize

the old planes didn't have an mcas because they had a different structure, didn't need it, they worked fine, of course you'd ask whether the structural differences really were necessary and whether you need to reverse them. you save enough fuel you know what i'm saying the mcas was created because of the new placement of the engine. >> yeah, it's an unusual airplane you design an airplane physically, right. aerodynam aerodynamically first, joe then the technology helps. because of the need or what boeing decided was the need to make the plane feel similar to the old plane as possible, you know, they put new engines on the old airframe they were less lucky than airbus airbus was able to put new engines on the old plane and it would fly the same boeing couldn't do that. all of these airplanes were designed decades before this was envisioned unlucky for boeing when you put

the new engines on you had to move the engines for them to fit on the wing. when it did that, in order for the plane to feel like the old plane and not sort of pitch up and perhaps go into a stall, that's where mcas came in. here we are. >> we keep talking about the management and the credibility of the company to me they -- it made a lot of sense for dennis muleberg to st - mule lenberg to stay at the company. taking somebody out of the seat in the middle of the game can be difficult. the question i have for you now given where we are is whether you think that changes >> yeah. so i guess what are we, about two months since kevin mcallister was the head of the commercial division. obviously a high-level official there was essentially sacrificed muilenberg stayed in i think at this point --

obviously boeing's board at this point feels that the continuity is important you can understand investors feeling that, too. at some point it starts to become a valid question that when change for change sake obviously not always a good thing. whether the unknown becomes better than continuing down this same path and you can't blame people for asking that question. >> i'm asking the question, what's your answer though? >> yeah. no, i mean, at this point i don't know who quickly comes in and gets their hands around it, who understands better and has the institutional knowledge better than he does. i would rather right now see if this is a first quarter event. i think the fact we've seen the shares pounded, boeing would have to suspend, boeing would

punish them not just for the news -- it's not a lack of candor, just a lack of ability to foresee what everybody else thought. a week ago boeing was still saying this plane could fly when basic math told you it couldn't. i would say if the plane isn't up and flying and at least close to certification by the end of the first quarter, that's when i would expect and hope to see a change at the very top of the company. >> when a company does switch the ceo, then the media can no longer ask about the ceo obviously. you've been asking that question the entire time, andrew, and they're sick of hearing it i do it for that reason. i'm not sure that makes sense if he is an engineer and if he is a person that can have the best chance of bringing it back online >> that's the question >> it's because of you know the media's going to do that, why do you think he should -- because someone's head has to roll or he wasn't in tune with the -- he

wasn't as empathetic as he should have been >> no. >> what reason are you sort of thinking that he should be gone? just so it's no longer asked about anymore? >> look, i'm not advocating for him not to be in that role. >> it's just a question you ask. >> i'm asking the question, kneel once, fool me twice -- >> in terms of what? what did he fool you >> he has told the public and the company has told the public one thing multiple times about when this plane is going to get back in the air. the relationship with regulators matters. >> you think he's had enough strikes against him? >> i'm not making the argument, i'm just suggesting to you that once you get into these very complicated places -- >> sorry, seth, thank you. >> that's the issue. we look forward to hearing from our next guest talking about apple's app store and whether it's full of dangerous and fraudulent apps right after this

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numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. boeing suspending production of the 737 max the stock trending lower what it means for executives of the company is coming up. from impeachment to the budget to trade. get ready for a big week in washington what investors should be

watching all straight ahead. plus a new report on fake apps how to spot them and keep your kids safe as the second hour of "squawk box" begins right now. welcome back to "squawk box. i can't even tell you folks what's going on during the commercial break i'm andrew ross sorkin joe kernen happens to be here. becky is here. >> i'm trying to help. >> says he is trying to help we'll see about that u.s. equity futures at this hour take a look at what's going on dow looks like it would open off 20 points. nasdaq looking to open higher. 8 points higher. s&p 500 up 2 points. becky has some big headlines this morning. that's right boeing is temporarily suspending

production of the grounded 737 max jet. that comes as regulators make it clear that they will take their time in approving the jet's return to service. just a few moments ago southwest airlines announced it was taking 737 max flights off its schedule through april 13th right now boeing shares down by 1.6% this morning. amazon is temporarily blocking third party sellers from using fed ex's ground network. that's covered by amazon's prime program. they're trying to fulfill the promise of one day delivery during the holiday season. the company did not say how long the new restriction would last this limits the number of options that third party sellers have at that point in terms of trying to get the packages to you. it comes as a public dispute where fedex says, forget it, we're not delivering your stuff anymore. amazon said, fine, we'll build our own. the boards of fiat chrysler and peugot will have a meeting

today. a record close for the s&p 500 and nasdaq i want to talk about markets right now. joining us is gabriella santos and jeff is here good morning to you. two weeks left >> two weeks >> so can we speak about the -- should we care about the technicals of the last two weeks of the year or is that relevant? i know that's such a short-term way to be, but i know there are people -- look, i was having this conversation with somebody yesterday who was saying do i want to put any money to work the last two weeks because they have a little bit of money on the sideline someone is talking about a bonus. there's stuff happening. the question is what are you supposed to do in the moment what do you say? >> we've been talking to a lot of our clients who have had a great year and frankly a really great ten years, right, about taking the time to actually right size a little bit here towards the end of the year,

right. >> right size, you mean, sell? lighten up the load? >> if it has gotten a little bit over your allocation that you would like to have going into 2020 we think it makes sense to be a little bit over weight the equities take a moment to look. make sure you're positioned properly for 2020 and maybe that involves selling some of the winners. it's been a great year >> i think technically are you getting information that there is longer term appreciation going forward. last year we did have a santa claus rally because the market advanced after it bottomed on christmas. >> the vix is at ridiculous lows you have the view that the fed is going to do nothing next year there's part of me that would think would you do the opposite, not to lighten up but think this is better than you can expect or

is it so built into the case >> that's the problem. the good news is we have had a good year. the bad news is we've had a good year valuations, especially for u.s. equities, are already at 18 times. as much as we can have a positive view on the fundamentals, which we do, the valuations are a headwind to the returns you can expect the risks haven't gob away it is likely, of course, to have moments of volatility. you want to be positioned appropriately for that >> we've had pullbacks >> we're still waiting for one. >> with the pe at 18.7, remember back to january a couple years ago we were at 19.3 and then we ended up having a pretty meaningful decline but i think we have to really start to worry about interest rates, inflation, et cetera for us to go deeper than 10%. >> okay. if you have to keep your money in u.s. equities, where do you

want them then >> this is a bit of an unpopular view, but we would have value and growth this is our focus. a little bit less than 2020 -- >> seems like you're having your cake and eating it too. >> let me explain. it's around the idea of a theme around income. given that valuations already at over 18 times, focusing more on total shareholder yield. what are the sectors that can give me a good dividend and buy back yield you find them in financials and energy and tech. >> are you looking for those that yeelield north of 3% or ar you happy with a more modest yield? >> if you combine dividends and buy back yield, you can look at financials and get a 7% yield. >> wow which financials >> the large cap banks and that includes the buy backs as well that's a crucial component we also look at the energy sector which has been completely left behind this year, shall we say. >> you think that's a value

play >> with a dividend yield of 4%. >> make this interesting tell me you disagree with it. >> well, i guess i can't say i totally disagree with it. >> it's already very important thank you. thank you. >> i appreciate that. >> no, but just looking at the technicals for the value, s&p value over the market itself, it is turning around from a more than one standard deviation low. so we're above the ten week, above the 40 week moving average. you're also looking at -- i wouldn't be going for high yield, becky, because take a look -- >> there's a reason that it's high yield, right? >> oh, yeah. utilities were trading at a 26% premium to their long-term absolute and relative pe so utilities, consumer staples, real estate have exhibited the glide path of a crowbar mainly because investors are saying, okay, i don't really need to be driving into them because the fed is on hold and i can probably find income elsewhere.

>> gabriella, the financials in this past week finally got back to the levels they had seen in 2007 the highs they had hit does that tell you there's more room to run? we've gone a long way, we're finally back if you're betting on it thinking it's a 7% return if you include the dividends and buy backs, what does that tell you? >> i think you can rely on that 7% and then as sentiment continues to improve in 2020 maybe you get a little bit of a cheri on top with capital appreciation. >> you don't think we're headed towards a recession in the next year or longer >> we don't in 2020. we've established a soft landing and you can continue growing around 2% in the u.s if we want something more high octane, more exciting -- >> yes yes. >> let's do it more exciting? >> more exciting. >> i would be taking more opportunity to focus less on the u.s. and get back into markets

the up side is not for the u.s the u.s. equity market is for emerging markets, especially emerging asia. right size the u.s. and focus on more on the laggards like e.m. >> sam >> i think international looks very good. i hate to not disagree but my feeling is if you look at price performance on a trailing 12 or 60-month relative strength, the international markets are trading at more than a standard deviation below their mean. >> five years. >> it's not a value trap because if you look at s&p capital i.q. consensus for the international marketplace, the pe ratios on a relative basis are also trading at an extreme low. the feeling is if you are a believer in reversion to the mean, i think this is an opportunity. >> okay. we're going to leave the conversation there thank you, guys. appreciate it. >> thank you. >> what street is this nkts you know -- >> no, right here. >> undisclosed location where we

are. >> this is 43rd. >> nasdaq. there is -- i can't believe this, a crystal healing center the next block over. i swear -- >> for me? >> yeah, for you but i'm just telling you you've tried it the os osteo -- >> are you saying andrew's a gem. >> he's definitely a gem. >> sam is getting invited back. >> i can't believe you don't know anything about this people sleep under a three-pronged pyramid. you use becky's vitamins >> i take them they help me but then i'm sick so i don't know if that helps. >> but i was looking it up -- >> guys, we're talking about all of this homeopathic -- >> because of your shoulder. >> right. >> cbd gummies >> i mentioned osteopath he didn't hear me. sublimbally you went to one. >> i went to one and he cracked you like a lobster but you haven't seen any progress.

>> he didn't say he would see it. >> give me a week. >> you've done the cbd stuff, right? >> i tried that. >> you got the thing put on, right? >> what. >> the aspirator or whatever it is. >> no, i don't have that. >> that's not for the shoulder >> no. separate -- >> that's what i'm talking about. >> i've told you how many times. >> what's that >> buy a dog buy a dog! all your problems, gone. germs, friendship. >> gabriella, thank you -- >> what? the shoulder, a dog for the shoulder >> what does a dog have to do for the shoulder. >> you just called sam more interesting than gabriella if you want to know where you stand. the future -- >> sam, i think you're interesting, too >> i just miss you i just miss your father. as you know that i miss bob tell him i said hi. >> i will. i will the 737 max, the production has been halted, big pharma in fo s focus. it's on the east side, what is that two blksoc

come.

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welcome back to "squawk box. we have a couple of stocks to watch this morning pfizer says that the fda has

approved the drug xtandy for hormone sensitive prostate cancer pfizer says this reduces the risk of cancer spreading or deaths by more than 60% in men with that disease. that stock is up this morning on the news by about 1.1% keep an eye on shares of eli lilly today. they will hold a conference call at 9 a.m shares of eli lilly are up about 6% for the year to date. they're up another half a percent this morning. some corporate news overnight to tell you about. consumer foods giant unilever warning it's going to be missing the full year revenue growth for the year claiming a slowdown in south asia and weakness in north america. it says a recovery will take some time and expects the growth rate to remain at the lower end of the guided range for 2020 roku shares are falling. the company's cfo, steve loudon, plans to step down after he helps find a successor for

himself. he joined roku in 2015 and helped oversee the transition to a public company and into some new areas like streaming roku shares have been on a tear up more than 330% this year. cfo's leaving. don't know whether there's anything to that or not. coming up, spotting fake apps before your kids do apple says it goes out of its way to protect the safety and security of young users, but developers have found an interesting way around it. the founder of the verge and outle.incom tell us what you should be looking for. we'll be right back.

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a new report is raising questions over the safety and legitimacy of apps in the apple store. digital group's new tech site input says there are fake apps that lure children into games that contain offensive material. joining us is josh tapolski. he is the editor and chief in

input. josh, this is pretty concerning for anybody with kids. >> yes. >> we assume you see safe signs like disney characters and it's all good to go. >> it's actually pretty crazy. we did -- the same writer, my wife, did a story a couple of years ago about youtube videos, fake pepa pig videos now the app store and apple are having the same issue. there are apps there that are literally labeled -- >> are they stealing the disney characters it's not only offensive material but they're stealing the copyright. >> it's the i.p. of disney vamparina and it has nickell loadian and paw patrol some of them are disturbing. there's a vamparina app where

you pull teeth it's aged for 4 plus in terms of the age. >> i always thought of the apple app store that would be one tough place to get into. youtube doesn't surprise me. >> with youtube anybody can upload a video the app store, apple says that some human being reviews every app that goes in there the app store has ballooned in size over the last few years so there obviously is a lot more to moderate there. the real question is how do you, one, get the stuff that has the bad content, teeth pulling, bad ads, that's one set of issues. the other is for the disney and nikelodian -- >> how do you protect my copyright? >> the characters have nothing to do with their owner. >> what was apple's response >> so apple hasn't responded look, this is a complicated issue. i think there's a lot of levels to it, right if it were just copyright infringement, that's one level if it were just bad content, that's another level hey, the stuff isn't appropriate

for 4-year-olds, maybe it is for 8-year-olds, that's a different level. i think what i heard from people that i know at the company, there's a lot of conversation going on right now they're trying to figure out the right way to solve the problem we haven't heard an official word they're going to have an official position. >> can i ask you a medical question they've often said, look, we control the app store. we run it the way we want to run it we advance certain apps of other apps but we are effectively the monitor, in this case not monitoring it the way you might want them to be, but if they were to take a very aggressive stance about monitoring things, then they get the flip of all of this. >> right >> right >> all of the app makers start screaming and hollering that somehow this is some kind of antitrust kabuki theater situation. what's the answer? >> well, it's funny. in the early days of the app

store there was a whole controversy about them removing dictionary apps because they had four-letter words in them. apple wasn't sure if they wanted swear words in the app store the answer is if you say there are people looking at it there has to be people looking at it. >> right you think that's not the case? you think it's slipping? >> they must be looking at it somehow because you hear these horror stories from other people who bring them to the app store and they get shot down. >> that's exactly right. jessica from the information -- >> just wrote that piece. >> had a huge piece about how they scrutinized her app, they scrutinized the color of the fonts and the way they priced things clearly in some places -- >> some back door that some of these are sliding in it is going through some gate. the question is who's looking? how hard are they looking? >> it concerns me as a parent because i've given my kids kind of free rein to the app store. that raises issues. >> that's the expectation. what the article points out, we

expect companies like disney or, you know, nikelodian. >> that they will have vetted this. >> i'm not going to dig through everything going through the app if that's what i think it is. >> apple standards have been insanely high. they are reliable in almost every case which is why this is so surprising. what was shocking about this, wait a second, this is apple, how does this happen i think it's a problem everybody is dealing with. you see the stories about google and facebook moderation is a problem for everybody right now. >> do you think there will be regulation that steps in to do this or do you think the companies will step up to the bar themselves >> i think the danger for a company like apple is if you don't do it right, eventually somebody is going to make enough noise that you start talking about regulation, right? nobody has said we're going to regulate what's in the app store. there are antitrust questions. there are questions about monopoly apple has to figure out what the strategy is. >> solve the problem. >> i'm curious philosophically where you stand.

do you feel it should be fundamentally open do you think it should be closed and monitored. do you think there should be other opportunities? the spotifys of the world say there should be almost a separate app store and there should be a competition in the app store marketplace. >> yeah. i'm for -- i'm for the more of an open market, more of a free market concept. >> then you have a wild west of these things. >> well, you could have -- apple could say listen in our store -- look, you own the store. this is what we want in our store. this is the official apple store. someone says we're going to put whatever we want in our store over here. if you want to download that and get access to the apps, you're kind of like play at your own risk i think what google's done actually works they have a fairly open space for people to go and put stuff in the play store. they have problems like this but they deal with it. they have people looking at it. >> are they better than apple in this regard? >> it's a different strategy

samsung has its own app store. i like the idea that people can get their own apps onto the device i think apple has the right to police what they put in their app store. the question is, how good are they at policing it. if you trust them, you are more likely to use their app store than somebody else's. >> thank you for coming in, josh something to think about for sure. >> happy to be here. >> happy holidays. a lot more on "squawk" coming up. the impeachment impact what you might want to take away from this week's vote. boeing's fallout from stopping production of the 737 max. could have impacts across the industry what does it mean for the executive team key economic dataset to hit the wires. housing starts data and we'll discuss the state of the real estate market when "squawk" returns.

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democrat chuck schumer is now demanding that senators be able to hear from key witnesses from the white house during the trial. >> to conduct a trial without the facts is saying we're afraid we have something to hide. to conduct a trial without

relevant witnesses, to just rehash the evidence presented in the house just doesn't make any sense. >> you'll need them on the rules for any file mitt romney could have a big say in how this all goes down. >> i'm going to be talking to colleagues, listening to the leadership and i'll take in that information. >> majority leader mitch mcconnell has signaled he might have information >> joining us to talk about past impeachmen impeachments, paul hickey. we spoke about investments >> good morning. thanks for having me it was interesting looking at some of your notes hard to believe the partisan

divide is not there. it was higher during bush, too 45 points. 45 percentage points there's a lot of people on the left that hated w. they totally recalibrated their hate for trump it's not quantitative. they like w now. they think he was harmless. >> you know, michelle obama and bush are friends. >> it's really -- >> yet michelle obama has to defend she's friends >> ellen >> we talked about it earlier. this is the most tame constitutional crisis, at least in terms of the market >> futures, dow's down seven points >> it's up too high. >> why >> well, i think in the words of

james carville, it's the economy, stupid. from watergate to the time he resigned, the s&p was down 25% the u.s. economy when it was in tatters then, oil was spiking, we had inflation rampant so i think -- then you go to the late '90s with clinton who, you know, you look at the politicians, a lot of them are still there today who is on one side of the aisle back then is on the other side now and vice versa. the economy was doing very well and market was up 28% from the time the lewinsky affair broke to the time clinton was acquitted. that included the long-term capital. >> there are people saying the person sitting in the oval office has very little to do overall with the economy you would either have to think that or you'd have to think that trump really isn't getting that -- president trump is not getting that wounded at this point because we're not that far from a sanders or a warren or a biden presidency if that's going to happen. and, what, the economy is going

to be fine under a sanders or under a warren >> no. you look at the poll numbers from the day warren's poll numbers peaked was in early october. health care has been straight higher since warren's numbers peaked if you do a chart of it. if you inverse warren's numbers to the health care sector. >> now it looks like biden and biden would be okay for the economy, is that what you're saying >> i think he would be more tolerable than a warren or a sanders. at this point if trump gets through all of this, which it's looking likely he will -- >> he wins. >> wins what he can win in 2020 even with all of these horrible things -- >> yes because, look, the -- >> whacky deplorables? >> look, just straight economy, straight economic numbers, nobody -- >> i understand that >> no matter what side you're on -- >> andrew -- >> this is a referendum on his character, which is a different

issue. >> no, andrew, it's really not then you must take everything that the democrats are saying in terms of being a huge threat to democracy and to the constitution and an abuse of power. >> that goes to character. it doesn't go to character -- >> for better or worse. >> it affects all of it. >> americans don't seem to be interested in character, they seem to be interested in the economy. >> you're making it too simplist simplistic if he is putting the national security at risk the way schumer are talking about it, then it's not character. this is an important thing i can't believe you think americans are sociopaths if they don't care what he's doing. >> it's short-term thinking, i do think that's true >> not looking down at the american public. >> oh, i'm -- >> for electing this guy >> not for -- i'm not making a comment on the election. what i'm making a comment on is

that people aren't looking or seeming to look past -- >> careful careful. >> i'm staying out of this one. >> the in favor of the economy. those 63 million are deplorable. >> they are pretty deplorable. >> not a commentary on who's voting for who. >> what do you think, paul >> the average american when they vote is going to look at how their standing is doing. are they doing better or worse trump has a lot of character flaws that you can bring out, but at the same time we're in such a trans parent environment now. are we saying every politician before him was an angel? >> that's true, too. i look at the way mainstream media -- >> on that front life is relative. >> andrew, look at the way mainstream america is characterizing the republicans that won't throw trump under the bus. >> that's true, too. >> they are headed down the degreesy chute to live the rest of their days with satin, the republicans that are not abandoning trump, according to

the mainstream media they have no backbone. they have no conscience and they're enabling this guy, right? isn't that what you see? >> i see it -- but i'll say one thing i have always found troubling about all of this, from the beginning, irrespective of what you think is happening in ukraine or anywhere else, the republicans historically, during the trump administration, have been unwilling to criticize the president virtually at any level for all of these things which are obvious character-related issues. >> it's obvious to andrew. >> it's obvious to anybody who is -- >> the characteristics of every previous president we've had almost except for jimmy carter. >> all you have to do is look at bill clinton and the impeachment. >> jfk, lbj, grant was in the bag the whole presidency. >> who's brandt and -- >> brandt and his wife >> what i don't understand, number one is that we hear about

all of this stuff and people acknowledge that there could be a big win in 2020. there's a disconnect there is that why the market keeps going up, because it thinks trump is going to be re-elected? >> no, because it thinks elizabeth warren is less likely. >> biden would be okay >> look at the outliers. >> where you have more tolerable candidate most likely getting in but you also have right now -- look at the fed. the fed is basically came out in october and said they're not cutting rates. then they came out last week and said, we're serious. we're really not cutting rates any time soon. >> right. >> i think that is being coincided with -- >> that will help the president. the fed usually stays out of the picture. if they don't do any moves in the first half of the year, it would be hard for them to make a move in the second half of the year even if the economy is doing well. >> could we at least acknowledge that these are crazy times -- >> yes. >> -- that we're in right now? >> yes. >> crazy times, but this has been the most tranquil decade in the u.s. market history. we haven't had less volatility

than this decade. >> think of the decade we were coming from. that's why we were coming from the depths of -- >> you had hope after the plane crash there's not another plane crash. >> we were coming from the depths you've got to remember that, too. >> it came after the second worst decade. >> the s&p 500 was up 666. >> thank you. >> thanks for having me. when we come back, we have more of this morning's market movers and then boeing's reputation and stock price have been battered. what the decision to halt production of the 737 max means for executives and investors is straight ahead don't forget to subscribe to our podcast. you'll get interviews, original content, and behind the scenes access look for us on apple podcasts or on your favorite podcast app and subscribe to "squawk" pod today.

gentleman dow off six points nasdaq looking to close 10

points higher. time right now for a look at this morning's market movers dom chu is here. he's got much more of what we're watching today what's up, dom >> becky, good morning to you and the gang let's kick things off with shares of dow component. the pharma and consumer products giant is up a percent and a half helped along by the upgrade over analysts at morgan stanley to an over weight rating that's up from 145 they think that more clarity about regulatory prospects, better drug pricing trends in the industry and a more balanced product portfolio will help drive more market share. next up we have shares of micron which are up 1.5%. roughly 75%. the computer chip getting upgraded to outperform from a prior neutral rating they get up 65 bucks from before

key memory chip products and more demand for those products in the course of the year in 2020 those shares up 1.5% we'll end on shares of groupon dragged out by a downgrade over analysts at goldman sachs from a sell rating at a prior neutral the target goes to 2.40 cents. they cited deteriorating trends and broader macro economic challenges additionally to those as well. those shares up 2.25%, joe i'll send it back to you. >> dom, thanks boeing's announcement to shut down production of the 737 max could have a broader effect on the economy with the company unable to win approval from regulators to let the plane fly again, it's one of the most consequential decisions c-level executives have made we'll discuss that after the break. later, an exclusive look at how the 57,000 branded amazon vans are part of the company's shift

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boeing is going to halt production of the 737 max but no jobs are going to be lost in the process. phil lebeau joins us to tell us how that's going to happen. >> it will be a rocky first

quarter. no layoffs planned i hear this question in the last 12 hours people saying how long are we going to see the shutdown last in production? most believe it's going to last for most of the first quarter. again, that's an estimate. boeing is leaving it open ended. they're not giving any clarity there. no layoffs are planned which helps lessen the blow, if you will, for the people who are out in roenton, washington the real question is on the 400 or so people for the 737s. they're parked all over the place. they want to start clearing this out and as they clear those out, expect those deliveries likely to start maybe in late february, early march. again, that's an estimate. depends on what happens with the faa. so if you were game planning this, and this is strictly based on conversations with people at boeing, people at the faa, people with the airlines, here's what we're expecting you are likely to see certification early to mid

february that's if everything goes as planned and, again, that is not written in stone max deliveries might resume by mid to late february max production then resumes mid to late march. they're not just going to fire it up right away and it will be a gradual increase take a look at shares of boeing. on pace, at least earlier today, pre-market they were on pace to open lower than they were a year ago. so go negative for all of 2019 whether or not it stays there remains to be seen also want to show you shares of southwest. southwest saying earlier today it has pulled the max from its schedule through april 13th. that was expected. we'll likely hear from united in the next couple of days as it joins american and southwest in terms of pulling the max from its schedule that's basically what we're expecting when it comes to the max. >> phil, stay with us. thanks for joining the table for more on the challenges ahead for boeing, want to welcome crisis management expert, eric

dezinal and also dennis tazer. thank you for joining us dennis, this is your world you live in it what's your time line for when these planes get back in the air? >> well, long ago we put the calendars in the drawer and took our watches off. we're going to stand with administrator dickson and let this process run through the process right now i think is being slightly overlooked. the mcas software has been addressed. we're still looking at that. flight control computers right now the faa is deeply involved in testing the human factors of it making sure that the pilots, how they react to these newly designed systems and in looking at checklists so there's a lot more to go in this >> when you say a lot more to go, it seems -- and i don't want to put words in your mouth, but are you suggesting that the time line that phil even just talked about is too aggressive?

>> well, we've learned to just ignore guides that go to the time line and just focus on the process. so it's got to be done right and it's got to involve pilots. >> for the viewers, and especially investors trying to figure this out, what are the component parts with which you think things still need to get addressed and figured out? >> just last week the faa concluded what is called a 1302. that's taking line pilots in and seeing how they react to the newly designed system. then we'll go to a joag, a joint group. we'll go to the training and test it with pilots. then that will be forwarded to the faa internally to what is called an fsb. then they will make a recommendation for pilot training all of these steps are happening -- have yet to happen. some of them just happened last week so there's still miles to go but, again, we're not going to let the tick of the clock guide this we're just focused on making sure it's done right and the

pilots are ready. >> phil, just listening to that -- >> yeah. >> -- and i'm looking at the screen, it says early recertification early mid february if you have to bring in pilots -- >> they've done the 1302 dennis was talking about. there's a public comment period for a couple of these steps here one is for 30 days that they're in the midst of. another one is for 15 days is it possible by mid february yeah, it's possible but nobody's -- and, again, that's why we put that up there >> right. >> that's just the best estimate people have right now. nobody is comfortable saying that's certain. >> by the way, the airlines have been better about estimating this than boeing has they've been moving it back on their schedule. >> well, yes it takes the airline anywhere from 45 to 60 days to comfortably start planning ahead because of the pilot schedules, et cetera. >> right eric, you've long talked and we've had this conversation on the air about the credibility of ceos, what you do in the midst of one of these things and whether consistency in trying to keep the management team in the seat actually makes more sense

given some of the complicated nature of just trying to get this thing off the ground versus the credibility issue and whether you think it matters to -- or whether you think they need more credibility either with the public or regulators. have you changed your view at all about where things are now >> well, a little bit. crisis management is an improvisational game you try different things to see if it will knot the crisis into remissi remission. so far nothing has worked. so that leaves you with two options. one is company operational decision that's what we've seen as of last night to suspend production the other is a management shakeup and the problem with the management shakeup is it is one of those things that -- no offense, the news media and observers tend to think is an answer but i tend to be skeptical that it is -- just because people think it's the answer, that it is an actual

answer a head rolling contest, unless you are dealing with provable negligence at the top, is not always as constructive i think one of the challenges here of total communications perspective is complexity in terms of a cause is not your friend we're hearing it's the mcas system, we're hearing it may be an interaction between human beings and the mcas system we're hearing about the role of regulators as a general consumer, none of that is comforting even though life we understand is complex. >> let me ask dennis then straight up and down right here, right now. do you support and does dennis muilenburg, the ceo of the company, have credibility with you and your group of pilots >> well, obviously there's been a crushing of the trust relationship, but we're going to focus on rebuilding that with facts and not quickie slogans.

we want to see the actions and right now administrator dickson, becky had mentioned there's a new sheriff in town. there's a new captain in the cockpit and we know how he's reacting to people pushing him it's what we do and what i do in acockpit when my crew is being pushed it's to reaffirm this needs to be done better. >> you feel comfortable with all of it? the reason i'm asking you is clearly investors yesterday after the decision i spoke to a number of them or enough of them, i should say, who suggested, look, we've been waiting and waiting. we've been given deadlines they've missed they haven't reached they told us one thing something else has happened and the question is now i think being asked in a way perhaps differently than it was being asked before >> well, clearly these guides that just keep falling through, it's like in the cockpit, it's like the market. we don't like uncertainty. we tend to ignore these false deadlines so we're going to -- no matter who's in charge in the

cockpit, because of what we do and the serious consequences of it, we must have full disclosure all the facts and we'll let that guide us. >> eric, what would you do right now? if dennis is watching, what would you tell him >> i would tell him that the inside game is more important than the outside game and the inside game is defined by how the faa and how the pilots and how the government react and that views from the cheap seats in terms of head rolling are not the answer focus on the inside game this is first -- the solution to this crisis is getting the planes in the air without incident it is not pleasing the mass consumer right now >> okay. eric and dennis, thank you phil, thanks for hanging out. >> good to be here. >> in jeans. >> i got in the covered wagon in chicago yesterday and started coming here. >> did you know you were going to do -- people are jealous. phil has some juice. he's wearing jeans. >> you're wearing yoga pants

he is. look at him. they're lululemons. >> they're abc pants. >> people in glass houses. >> they're abc pants >> all right >> phil, we're glad to see you thanks for haki ingmaking it do. what matters to investors? impeachment or trade this week's impeachment vote market uncertainty, we'll do that next. later, amazon saying it will no longer allow third party sellers to use fed ex ground between now and the holidays we'll have more on the ecommerce push and what it could mean for the stock. "squawk box" will be right back. tom steyer: i'm tom steyer, and i approve this message. climate is the number one priority. i would declare a state of emergency on day one. congress has never passed an important climate bill, ever. this is a problem which continues to get worse. i've spent a decade fighting and beating oil companies,

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around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. a shutdown with global consequences how boeing's halt of the 737 max production could ripple through the worldwide economy. what to vote on the impeachment of president trump means for your investments we're going to dig into the potential market impact. and the holiday shipping battle heats up. we go inside amazon's next-day delivery operation as the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc. live from the nasdaq market site in times square i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures at this hour are down about 19. boeing's down. earlier it was down three, four, five points. the dow might be in positive territory if boeing were not pulling that average down. the s&p is actually green and the nasdaq is up almost 4. treasury yields, creeping back up a little bit higher as the global growth slowdown may be weighing a little with all of these things getting settled, china, usmca and brexit. right now at 1.86.

>> here are some of the other stories that investors are going to be talking about today. boeing will be suspending production of its hugely popular 737 max jet in january that move comes after boeing saw repeated delays in its efforts to get approvals to return the jet to service boeing says it will reassign workers and does not expect furloughs or layoffs at this point. jpmorgan is estimating that boeing will still burn more than $1 billion a month during the production halt. analyst seth sythen says layoffs will remain the same as they are now. we'll get an update later this hour. shares of drug maker eli lilly is rising in the pre-market trading it points to growing demand for treatments like its diabetes drugs true llicity a leadership shakeup at bed, bath&beyond. they're saying that the move would streamline the company's

decision-making process. take a look at shares of bed, bath & beyond. the stock is down by half a percentage point. a few stocks on the move to talk about this morning. check out shares of streaming device maker roku now. steve loudon, cfo, will step down loudon will remain until a successor is named that stock up close to 3% this morning. also, take a look at shares of spark therapeutics. roche's acquisition expected to be completed today the ftc approved a $4.3 billion purchase british regulators gave their okay earlier yesterday and that stock up just about 1% joe? >> the house is moving closer to impeaching president trump we're expecting to see some voting taking place this week. leading up to that, markets have seemed to care much more about progress on the trade front but the uncertainty surrounding impeachment still has the potential to rattle investors. to talk more about this, let's

welcome dan clifton, head of policy research and james petacuccis he's an american institute fellow and cnbc contributor. there's a lot of new ways to explain the series of new highs. >> yeah. >> i don't know, i use predict it i know it's early. i look at thebetting sites >> yeah. >> i know that the removal by the senate is at about 9 or 10 cents. is it that simple that they figure that it's going to be an impeachment in the house and it's not going to go any further than the senate, dan is that why the markets are okay or is it the election just too far off to worry about it at this point >> joe, thanks for having me on. the s&p is up 10% since nancy pelosi started the impeachment proceeding as the evidence started coming out and we had public hearings, you really started to see the polls not really moving in the democrat's favor i think that's why you're seeing the senate odds so low

based on the current information we have, investors don't see impeachment as a real threat and look at what has happened since the impeachment proceeding started. a deal with china, a deal with naf nafta, a new budget deal that includes border wall funding without restrictions repeal of obamacare taxes. the president has been more successful under impeachment than when he's not under impeachment. those issues are going tore more important for the equity markets. let me make one caveat here though at the end of the process, justice kavanaugh's hearing, that's when you begin to see new information emerge as you start to see new information emerge, investors may get more nervous based on the information we have and the polling in the swing states, it seems unlikely the president is going to be convicted. we'll have our votes we'll move on. then we'll get to the 2020 election >> jimmy, this is not without precedence remember the kind of games we had during the clinton impeachment, but what do you

attribute it to? unlike other impeachments, this guy's in his first term. can we glean anything from the market reaction to what the november next year election is -- how that's shaping up right now? is impeachment going to hurt or help trump >> well, listen, i think that's exactly the point. i think that's exactly why mitch mcconnell does not want a long, newsy, unpredictable trial with lots of new witnesses. he wants to get this thing -- he doesn't care about acquittal he doesn't care about what the second line in the president's presidential biography is. he wants to get this thing over and put as much distance as possible between impeachment and that election. let people focus on the economy. mcconnell wants to keep the senate president trump winning re-election will help him keep the senate he wants to get this thing over. he does not -- he does not want -- i know a lot of good things happen during impeachment and i don't think dan is saying,

hey, set a trial, maybe we'll get a capital gains tax cut. they want this thing over asap >> go ahead, dan >> yeah, you know, i would just add to that is that you've got a lot of moderate democrats that will have to vote on this in th house. will there be political fallout before the senate trial starts it's a pretty fluid process but i think both sides have an incentive to get this out of the way and move on. one interesting point though, joe, is that this could actually impact the democratic primary more than the general election, particularly if there's a long, lengthy trial. it would keep bernie sanders, elizabeth sanders and others running for president out of the key swing states and in front of the most important time that they need to be campaigning. all odds point to a shorter trial. >> sorry let me say one thing if you think the president has been good for the market and if you think more trump is good for the market, you don't want to be

sitting there in the middle of february listening to testimony from rudy giuliani in a senate trial. >> do you think that the market would be rallying to the extent it is if elizabeth warren was still topping the polls, dan >> well, i do think that the democratic primary has impacted the equity markets more on a sector basis, joe. you saw a big multiple contraction in health care, student lenders. all of the industries that you think would be negatively impacted a lot of that multiple traction has reversed since she peaked in the polls on october 9th second quarter, that's when it starts impacting the overall equity markets. to your point, the president's position has improved over the last 30 days i think he's a stronger candidate today than he was before the impeachment process started. he seems to have a little bit of a tailwind behind him. >> why do you say we know second

quarter? i thought it would be third quarter. >> who the democratic nominee is super tuesday is 40% of all delegates. >> you think by super tuesday we'll know the answer? >> no, you'll know who the democratic nominee is. that's when it starts impacting markets. andrew, let me make this point the s&p 500 has predicted every presidential winner since '84 and 87% since 1928 and it's august in the last 90 days of the election once they come out of the convention if stocks are higher, the incumbent party wins if stocks are lower, the opposition party wins. it's been a very good predictor. those last 90 days of the election are the most important. in terms of understanding who the candidates are, that will be a second quarter story and that's when it starts impacting stocks. >> gentlemen, thank you. >> thank you. >> live in interesting times that's all we could ask for. >> that we do. when we come back, we'll talk about amazon taking on a heavy lift this holiday season free next day shipping frank, what do you have coming up for us?

>> reporter: good morning, andrew coming up, we'll give you an inside look inside the blue amazon bands and how they make the next day shipping happen free we'll talk to the drivers. "squawk box" coming right back mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

welcome back to "squawk box. take a look at futures show you where they're headed. dow off 2 points nasdaq looking to open higher and s&p up 3 points. the shipping wars taking another turn amazon will no longer allow third party sellers to use fed ex ground. it will only impact a small number of its shippers that brings us to our next story. frank holland joins us from kemp, washington more amazon's free next day shipping for the holiday season. hi, frank. >> reporter: good morning, becky. this is just the latest battle in the shipping wars amazon appearing to get its advantage over its one-time partner fed ex amazon is expected to make 2 billion residential deliveries in 2020. 50% more than fedex. one-time partner the blue and red branded amazon

vans they're making free next day shipping possible. they're a big part of the company's program to push free next day shipping. the global fleet has grown 150%. delivery service partners began in june of 2018. we spoke to maria rent she is the head of global delivery experience. former top advisor to ceo jeff bezos. the vans are important for logistics and for innovation and branding. >> they are an important first impression on that last mile delivered for amazon after moving to one day this year we have seen an acceleration in both revenue and unit growth. >> reporter: so we saw exclusively how the amazon vans play a key role in next-day shipping they have 40 delivery stations in 2019. 30% increase over 2018 part of an estimated $3 billion spend to make free next day shipping possible.

this is where your drivers get your package before they drop it off. former army captain chris lily has 60 drivers your on time free next day delivery is in his hands >> delivering the package to the people's homes might be the easy part, but when you do multi-tasking throughout the day, ten hour day delivering, stopping, parking the van, it can be tedious both mentally and physically >> reporter: amazon says the blue vans deliver a majority of it the prime service memberships are expected to double in 2020 over to you. >> thank you very much. joining us to talk more about amazon stock heading into the holidays is tom forte. senior research analyst at d.a. davidson. >> thanks for having me on, becky. >> to see amazon investing like this, we've known for a long time what jeff bezos plans were. they're continuing to ramp up

and continuing to put money into the project. what do you think? >> i definitely think the longer term opportunity for amazon is to turn what is a duopoly in shipping in the u.s. with fed ex and usps -- ups, rather, to a triopoly with amazon being the third much like they're doing in digital advertising with facebook and google. longer term i see this as a big opportunity for amazon to expand beyond its efforts today which is primarily shipping products for its own sales. >> we heard in that piece that when they've increased their spending on the blue vans and other things, they've seen both revenue and unit growth increase as a result. do you think it's bows of those investments? >> the answer is absolutely. so in the last two quarters since they've launched one-day prime shipping in the u.s., they've had a reacceleration in u.s. unit growth and umpt s. sales growth this has definitely been a needle mover for amazon, which is very encouraging.

>> this battle that's taking place between fedex, ups and amazon in terms of who's doing the shipping, i don't know if you understand the latest move where they're saying you can't use fed ex ground if you're a third party shipper. does that make sense to you? >> it makes sense to me but i think it's from a quality in service standpoint why did amazon ramp its own first quality -- >> because they couldn't get the packages there. >> ups couldn't maintain the pace required. they had to scale back new signups for prime. amazon initially did it to increase their ability, their capacity during peak times now i think this is an effort that they're going to expand for all of the -- all 365 days of the year. >> look, i realize you may not cover fed ex and ups, but as i've watched this battle play out, i've kind of thought all companies, the moves they've made have made sense for fed ex it didn't make sense to do these deliveries because the margins were too low

for ups it makes sense because especially if fedex steps out of the way, they'll have a huge number of packages they can deliver. for amazon it makes sense because they want to build up their own sort of force on the front. is there any way you look at this and think there's a loser in this battle or for everything that's happening it's rational. >> i think there's a huge risk for fedex and ups to the extent that they were historically able to raise prices with impunity. so if you look at the great recession of 2008, 2009, both fedex and ups raised prices on shipping my view is over time retailers like qvc will warmly embrace the opportunity to have amazon deliver their packages at a materially lower rate than what they're paying ups and fedex it could be amazon delivery service. it would be separate like amazon web services from amazon retail. >> wait a second what's the answer here

should ups say forget it, we're not doing it anymore never minds, we'll come back to the table and invest more. they can't both be wrong ups is sticking with them, fedex is backing out. >> too much volume for them to pass up amazon entirely. i think fedex is trying to take the approach discontinuing the less profitable shipping efforts for amazon there's too much volume for the two giants to lose if they completely cut off amazon. >> all right tom, wanted to thank you for your time today. real quickly, just what would you do with amazon shares? if you think this is the right move, you'd tell people to buy here >> yes if you look at the reacceleration in sales growth because of one-day shipping, i think that makes shares compelling today. >> okay. thanks for your time >> thanks, becky. the dow is positive. but it has moved out of negative territory. >> despite boeing. boeing still down 5 bucks. >> almost 30 points down

the rally in the dow boeing down 14 and the dow was up 100. >> down $14. >> 14 times 7 is 98 points up 100 up almost 200. today it would have been up 32 coming up when we come back, breaking housing data and instant analysis on what it means for the real estate sector stay with us. still to come, the widening financial fallout from boeing's 737 max grounding. which key suppliers are at risk? and could the whole u.s. economy take a hit in the new year a live report with the latest developments for investors is coming up when "squawk box" rern tus.

welcome back to "squawk box," everyone the futures this morning are indicated a little bit higher. we started off this morning the dow was down by 39 or 40 points. dow futures indicated by up 6 points s&p up by 4.5. the nasdaq up by 15 points this comes after all three of the major averages set records once again and i think at this point there is a row of gains. that's the first time that has happened in a while. we'll be watching that as we get closer to the opening bell >> we're getting a better picture.

big dump since the start of 2017 asia is still a small part of the overall business netflix is facing some slowing growth in the key u.s. market as streaming competition picks up company will group the u.s. results with canada's in financial ports. tell me about this morning show thing. does pilar watch with you? >> episode 8. >> searching for a show. >> i am a big fan. >> have you seen "crown" >> she doesn't like "crown" as much. >> rece witherspoon does a good job. >> it's billy croda. they do a terrific job it's a good show by the way, just on the netflix news, we should explain because we tried to mention it earlier the reason they're giving out

these numbers is to change the focus of the way investors seem to think about the company because there's too much competition domestically so the whole idea -- >> the middle east -- >> don't look over here, look over there that's -- >> nothing to see here. >> pay no attention to the man behind the curtain. >> only because as you said, we have apple plus, we've got disney plus. >> right. >> everybody in their brother is trying to compete over here. there's less competition -- >> how hard is it going to be for me to get episode 8? >> apple plus. >> first two episodes are free. >> am i going to be able to stomach watching it. you said it took you until the 8th episode before you liked it? >> no, no, no, no, no. you have to hang in for the first two or three episodes. >> that's three hours. >> no, i'm not saying it's a problem. i'm saying it ramps. there's a great sort of ramp -- >> then it takes off. >> i got really into it. >> there was some stall speed in the first two or three episodes? >> you just didn't know where it was going and then all of a

sudden -- >> morning tv, but nothing like this here, right >> no. we should hope not we should hope not basically. >> really? >> yeah. that's a tease it's another reason to watch the show "the morning show. >> ben cook is in it. >> he should be. >> a lot of product placement in "the morning show. they're constantly on the iphone and they never seem to have an android phone, ever. >> no way. >> that's still not that far from reality. >> i never see androids either. >> in fact, in a weird way the show is even more realistic because they are constantly on their phones and that's sort of, unfortunately, how we all are. >> never had an android phone. hemorrhoids. >> a key read on housing starts all next stay tuned you're watching "squawk box" on cnbc. >>ou y're talking over me. >> i am talking over you yes, i am.

♪ ♪

welcome back to "squawk box" here on cnbc we're live from the nasdaq

market site in times square. we are just a few seconds away from the latest data on housing starts been watching the futures ahead of that. all three of the major averages in positive territory. the dow just barely up by 1 point. nasdaq up by 14 points s&p futures up by 4 points rick santelli is standing by at the cme in chicago and, rick, we'll hand it over to you. >> all right our november read on housing starts 1.365 million seasonally adjusted units and that is a little over 3% it is definitely better than expectations and sequentially big, big pop from 1.32 and change let's look at what lies ahead. 1.4 million. 802,000. 1.48 million up 1.5% or slightly less these are really solid numbers and the revisions are solid as well we still, of course, have industrial production and capacity utilization

the easy way to tell if interest rates are getting any real horsepower, look to see which side of 1.90 a ten-year note yield is or which side of 1.60 a two-year note is very consolidated or slightly at the 1.90 seems to be crypton and we'll continue to monitor the data joe, back to you >> okay, rick. >> he's glad you didn't say hier. >> because i was waiting for it. you said every -- i think you're waiting for me you said it every other way, above this every way that you could say it without that steve liesman joins us now and -- and diana olick from washington oh, my god there she is diana, let's go to you first because there's a lot of housing data rick was impressed were you >> reporter: i was very impressed, joe, really i love separating out the multi-family versus single family this is a big report with a lot

of numbers still doing very well. we don't need it quite as much as we need the single family we saw a jump in single family starts we know that we have a housing shortage on the existing side. we saw home builder's sentiment reported up to a 20-year high the only issue continues to be constraints on land, labor, high costs for regulation, materials, et cetera. otherwise they would be putting up more homes. we're still obviously not where we need to be. seeing a 16% jump year over year is great on the single family side >> thank you, diana. want to talk to steve. >> i just want to say real quickly, i think this is a good example of the long and variable lag of interest rates. >> right >> you have -- these are quite astonishing numbers, especially the permit numbers. >> astonished? >> permit numbers. you know that i came up, by the

way, my first job was covering real estate? >> right. >> the rule was -- the question was not if they would over build the market but how much they would over build it. what diana said is very interesting. we are still making houses at a demographic rate that's way less than the growth of households. we still have a housing shortage out there. >> right. >> i am not at this point worried about the over building kinds of problems we saw in the late '80s, we saw in 2007, 2008. i don't think we have the financing problems that created the financial crisis this is good news. it looks like we're at a place whereinterest rates are at -- along with the general business environment that seems to encourage builders. >> steve, we are going to change gears a little bit. >> yeah. >> want to talk to you about this other issue which may have a bigger impact on the economy but an impact on the economy which is boeing. yesterday the stock down more than 4% on news that the company

would suspend production of the 737 max. today you can see the stock is now off we'll call it 1.5% don't want to round up too much. we understand you've been putting up numbers on how the maxim pacts the american economy. >> economists we talked to that crunched some numbers that said the halt of the 737 max will have a measurable result on the gdp. that will be worse than the government shutdown. this will hit and slow further in the first quarter creating scary but temporarily weak growth numbers the good news, it should diminish and reverse this year boeing kept making the 737 max at a slightly reduced rate but it didn't deliver them. the result was a decline in aircraft shipments but an off setting increase the result was a modest 0.1% gdp. now boeing is halting production altogether the impact will be more meaningful here are the estimates that we garnered yesterday jpmorgan said the biggest 0.6%

oxford got a half a point. 0.4% remember how gdp works the quarter to quarter change analyzed it's to the fourth power it looks a bit worse jpmorgan wriettes to me, u.s. annual economic output over $20 trillion so challenges affecting one company, even a very large one like boeing, rarely leave an overall impact importantly, boeing is not laying off workers the impact will not be seen in the jobs numbers though it's unclear what happens to jobs at boeing suppliers bottom line, a big first quarter hit but likely a temporary one maybe we're looking at 1 percentage first quarter gdp if the numbers are right. we had previously tracked a 1.6, 1.5 number for the first quarter off of 1.9 in this quarter depending how things go. >> phil's made the point, when

they recertify it will take time when they recertify for that s. there an assumption they could be back on track the full year gdp looks better >> phil and i were talking about that offline because of the recertification process, he knows more than he should, it's ridiculous how much he knows -- >> has the government fixed the way it reports what did we finally call that, the liesman coefficient? >> i did not personally name it for myself thank you, joe, for doing that. >> did they fix that >> it looks like it's being fixed. joe, you know when we'll know? >> no. >> like five years from now because how many first quarters are there, right there's only one a year and so their ability to -- >> i wonder if it's going to be named after you. only one first quarter every year >> it's that kind of information that i spend an awful lot of time so when you think about the number of times we have that if it's right, it's not that many.

>> they're aware of it and they may have -- >> they did alter it they did fix it. >> too low >> first quarter, it was low for 30 years >> phil, you want to jump in here >> on the liesman coefficient? >> let me tell you real quick. >> liesman uncertainty principle. >> the hit in the first quarter -- >> right. >> -- and that's all one, but the way that it comes back -- >> it'll be gradual. >> not going to be all one >> i've had people ask me, they have 400 of these. will they deliver 400 by the end of the year? no, not even close it will be gradual because the faa has not given boeing designated authorization reps. in other words, if joe were boeing and i were the faa, they work for you, she's good, he's good, they can authorize these planes, give them their airworthiness certification. that's not happening now i'm saying, let me go around one at a time, my people, there's not a ton of faa people. it's not that they're going to drag their feet, but it's going

to be a much slower process. eventually four months, five months down the road if they're comfortable with the process, maybe i'll give designated authorization for you guys it will be slow in the beginning. >> let me do some reporting. we'll talk offline let's do it on the air the way we normally do it. what's the chance they'll be able to hold the line on employment are suppliers going to have to layoff workers are we going to start to see any of this effect in the jobs numbers? >> i think some of the suppliers will feel the pressure that if they are not able to keep at the current production rate, they will have to do some furloughs now how many remains to be seen. some companies are more vulnerable than others. >> they do the fuselages >> they have a lot of exposure to the 737 max they make them in wichita. they've been able to mitigate any huge impact by keeping production at 52 per month and making some other changes within the company. they've done a nice job there, but the question becomes will they be able to keep at 52 per

month? will boeing say to them, yes, we'll be able to compensate you, to work with you, or at some point do they sit there and say, look, we've got 100 of these fuselages sitting around, there becomes a cost component to them as well. >> this gives me -- finally gives me an idea of just how big boeing is. >> oh, gosh, yes. >> can you imagine putting one of those together in a month >> no. no but they do -- >> how many do they do in a month? >> 52. >> they are's also doing the 87s -- >> they were planning on going back originally thought they would be at 57 a month. >> mind boggling. >> when i was in moscow, i was hanging out with the united airlines engineer and he said to me, i would give the russians the plans to the f-15. they can have it what i won't give them is the plans for how we put it together it's that which is the unbelievable sort of eternal corporate technology. >> me trying to put my kids'

toys together at christmas disaster. >> sort of. >> it's like i'm lost. give me a map, you can give me everything >> i know. i'm trying to think of -- i like it when they say, easily assembled. >> right. >> whenever they say that and it's been six hours -- >> clearly it's not idiot proof. >> exactly find the people that said this but, i mean, to be .3 of the gdp it has -- >> to be able to knock it off. there are some -- going back, joe, there's a small list of companies that move the aggregate economic data. there was a big microsoft dividend, remember that happened that spiked the dividend data. >> right >> apple, every time it introduces a new phone it spikes the electronic appliances data. >> that's amazing. >> that's one of the things. >> nbc spikes the international service import data every time it gets a payment from the international olympic committee for the television rights, and

this will be like the fifth or sixth one i can think of where an individual company will move the aggregate economic data. it does show you how big and important and by the way, one other thing, phil, i found out in my reporting, the 737 because it's an older plane is one of the more labor intensive planes they use each generation has used less labor for the plane than the 87 and the 737. if we do get into this point -- phil, i will push back a little bit. it is true that the outcome of the 737 max at each juncture has ended up being worse than initially believed is that fair to say? >> you mean each version of the 737? >> no, no, no, no. >> >> right. when this first happened -- >> the bears would say, hey, this could happen. the bulls would say, hey, don't worry about it. >> they're not going to stop pro tux. >> always more optimistic than -- >> i would agree the optimism was clearly much greater than where it should have been. >> way out of whack.

>> steve, thank you for that people keep writing in and saying why are you talking about boeing all day >> it has far reaching implications well beyond one company. it affects the entire nation on this thank you. joining us right now to talk more about this is ken herbert managing director at hanacor ingenuity. let's pick up where we ended this conversation. talk about, ken, why this would be a situation if it's been worse than all the optimists had thought at every turn, what do you do at this point how do you reassess? >> yeah, hi. good morning the one thing you need to remember is boeing, because of how they do their accounting, needs to be coming out with assumptions on when they assume the max will return to service that's part of the guidance. the ball has continued to move to the right at this point we're facing a situation where you're going to have boeing continuing to

produce the airplane in process. rates at spirit and other suppliers will step down i don't think boeing in their desire to preserve cash and divert some of the work force certainly will step down i think the impact will be more than just the risk of 12,000 workers boeing has at the roenton facility and other parts of the country i would be very surprised if boeing kept wichita at 52 a month. it's a fair assumption it will be stepped down but it's difficult to see at which level. i'm talking a line and once you get it here, they still have to act. while we assume europe might be soon after the united states, who knows when the chinese and other major markets may look to obviously fall in line. >> this is maybe a dumb question if it's authorized by the faa, does that mean airlines based in

america can fly them anywhere or airlines wasted based in americn only fly them in america and couldn't fly them overseas or no >> yeah, so they would only be approved to fly in the united states that is -- when you look at american, southwest, united, the route structure, that is the majority if not all of the current use of the max. >> you have a $370 price target to hold on this stock. stock is trading this morning at 3.70 is the price for the next few months >> yes it's fair to be cautious right now on the timing on the return to service, on eventually what boeing might have to do to the portfolio which will be the next major question we all start to ask is they ask what's next for the max once the plane returns to service we're cautioning clients to be cautious on boeing and the sector until we get better visibility on the timing of the

return to service and the actual work down on the inventory. >> ken, thank you for joining us today and, phil, steve, it's good to see you guys >> thank you. >> stock's coming back >> yeah. >> that's helpful. what a great tie >> thank you, my friend. >> that's the same tie, different color, isn't it? >> it might be. >> is that why he likes it >> yeah. >> let's do a cup of coffee and talk ties after this. >> maybe we'll try those jeans, the abc yoga deal. >> that's a little more than -- >> okay. coming up, strategy for the next wall street story line as the year wraps up and u.s. officials claim a phase one deal with china is finished, what market drivers should investors care about next year. you miss this china stuff. you will miss this valuable portfolio insight straight ahead stay tuned, you're watching "squawk box" on cnbc don't forget to subscribe to our podcast.

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welcome back to "squawk box. amid the trade volatility we've seen lately, the three major indexes are still positive for the month of december. mike santoli has been looking into the similarities between this year and rally and another

recent one mike >> yes, andrew 2017 actually. as a matter of fact, if you look at the four-year chart of the s&p, it does not seem like there's been all that much volatility you see some choppiness this year this little spot right here is december of 2017 we had this very calm rally all year up more than 25% going into december very much like this year then there was this acceleration, december 22nd of that year. the long anticipated passage of the tax cut bill that created this real stampede to the up side we're not seeing something similar although a little bit of an acceleration. the trade agreement not as economically consequential not sure you necessarily want to see that huge pile in of stocks because usually that's what makes a rally unstable you have this tremendous kind of climax of optimism and then you have a break right now it's a much more gentle slope and we have to keep watching to see if the public gets excited euro stocks, the broad european

equities euro stocks. 20-year charred. if we wanted to draw a line all the way across, you just made a new high in 20 years the rest of the world is also playing and catching up with this move we've seen in the s&p, guys. >> join us, join us. we want to add another voice to the conversation right now, talk about what could move markets in the final two weeks of the year. joining us right now to talk with that is christian mamani at invesco. you have long been an emerging markets guy. >> yes. >> like your story and we just had a guest on who said, don't put any money in the u.s. markets now. things have gone on a nice little tear, nice little run the real action is going to be in emerging markets. is this your moment? >> well, i'm sure as i'm hoping it is finally my moment. the challenge with the emerging markets has been two things. one, the fact that the u.s. dollar has done as well as it has, over the last few years

and when the dollar is doing very well, the likelihood that emerging market equities do substantially better than the u.s. markets the other really has been the trade issue. i think both of those issues are getting resolved so the outlook for emerging markets, from equity price standpoint, from a debt return standpoint, as opposed to just economic activities, looking much better. >> the reason i raise the question, you look at what mike just showed you on the screen there, but you look on the screen there, both on european -- did the little line on european stocks, then also look at where u.s. equities are, would you invest more right now if you had a little extra cash on the sideline, what would you could? >> i would buy global equities i would have a fair allocation into u.s. equities for sure, because they're going to do very well in 2020 because everything is coming together from an economic standpoint, from a trade standpoint, from a fed

standpoint i think relatively speaking, i will probably allocate more than my fair share in internationgtil equities finally the dollar is going to roll over. it won't roll over a lot, but it will roll over the outlook for emerging market -- you see the data in china, it is definitely stabilizing valuations much more attractive. >> are you buying a basket or are you doing something more nuanced than that? >> approach to emerging markets has to be company specific it really can be a basket driven, because the difference in outlook for various companies is far more dramatic than it is in the u.s i think even if you can get away with doing a basket in the u.s., emerging market investing -- >> now that you have this formal title, can you give us names >> i think, again, if you look for emerging markets, the place to be is consumption and technology. >> okay. >> those are the two drivers

don't want to be in the old industries, has to be in companies like alibaba, companies like tencent healthcare companies thoechy cos those are the names you want to look at. the trusting of the numbers that we really have to -- even if you haircut the numbers some, the multiples relative to what you see in the u.s. is provides you plenty of cushion. so trust, verify, but at the same time, recognize that valuations are extraordinarily attractive. >> okay. what about latin america >> latin america is kind of -- more questionable issue because i think turn it around, valuations are attractive. the turn around of the economy is really not as certain as it is in asia. >> thank you happy holidays >> same to you >> jim cramer, let's get down to the new york stock exchange.

saw some stuff early on, i see your tweets every morning, jim wasn't about boeing. trying to remember what it was about. what was on your plate this morning. >> i said -- >> talking about how dangerous housing is because this is as good as 1999 yeah it is good 1999 was good because we weren't overbuilding listening to steve liesman talking about how good it is and there say bunch of downgrades in the housing. this is exactly the right time to own stocks after they pulled back a little. but, yeah, i think people are as negative as usual. i think most hate the president, that goes without saying, right, joe? >> that does go without saying, i think. i've had a few conversations today about that >> with who? >> someone that called me a trump hating -- i get enough from the other side. i don't need people on that side telling me what a piece of -- >> bloomberg numbers, they're

good >> yes i don't -- isn't that one of the things they're not allowed to cover at this point at bloomberg news i'm confused at what they're -- >> they're willing to do anything it seems, so i'm sure that may be -- they may be not reporting on any good economic numbers. whatsoever do you -- >> caterpillar. >> okay. >> yeah, these guys, are they trump? is it trump? if it is trump, it goes to 170 i mean, honestly, this is a great american company, whose stock is going high, but people refuse to say anything good about it why is that? >> cat hats are -- >> i wear them all the time. it is a symbol of american fascism. >> jim, you're going to -- i think -- >> andrew, listen to me, andrew. >> i'm right here. >> i saw you twice in the last week you're not -- you're a reasonable guy and you're positive about things >> yeah.

i am. >> see there. >> you can be positive about -- hold on, to be 100% clear here, you can be positive about the economy, and still have questions about what's going on in washington. >> correct >> okay. just saying. >> you on that 1:00 show yesterday, 12:00. >> yes. >> you were killer >> thank you. >> you should do that more you were killer. tough questions. none of those guys expected tough questions. they were all, like, hey, don't you get this you're supposed to like softball me >> thank you, jim. >> how many times have i said that >> i'll be back on thursday. you can set your dvr. >> that show was perfect for -- you seem just really well suited to that. >> in the afternoon, thank you, joe. >> this is primetime thanks thanks, jim.

we'll see you in a couple of minutes. a little later, are you -- you're not on today, are you >> i am not on today >> okay. don't miss an exclusive interview with former fed chair alan greenspan on "squk t re" at 10:30 stay tuned "squawk box" will be right back. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home.

all right, welcome back. one more look at the markets this morning the futures are indicated up across the board dow futures up by 26 points. they have been down by about 40 points when we came in s&p futures up by 6. the nasdaq up by 19. join us tomorrow right now it is time for "squawk on the street. ♪ you gave me a chance i would take it ♪ ♪ it's a shot in the dark but i'll make it ♪ good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. coming off record highs for the major indices, four straight days of gains, maybe a fifth, as the futures are higher despite boeing lower on news that it will halt production next month. ten year 186 housing starts good. industrial production and jolts on the way road map begins with boeing, set to suspend 737 max production in january. shares lower ahead