it is 5:00 at cnbc global headquarters here are your five at 5:00 the house approving a new nafta trade deal after more than a year's worth of talks. the bulls charging with a rally and only seven days left in the trading year >> your money, your vote squaring off last night and the economy was front and center >> a swing and a miss. nike earnings beating the street we'll tell you why that stock is trading lower this morning plus data breach, a major

convenience store chain warning customers of a major incident. it is friday, december 20. "worldwide exchange" begins right now. >> good morning and welcome to today. i'm dominic chu in for brian sullivan the markets here, s&p 500 would open by about up one point dow by about 10 points and the nasdaq fractionally down record highs those moves kicking that day off. treasury yields now. the 10-year currently ticking slightly higher again.

1.942% two-year, 1.642. the spread between these two the highest since october last year. looking at asia. a plicmixed session there. hang seng up similar but to the upside shanghai down about half a percent there as well. in european trading, let's spin that around. the german dax up around 0.2%. the cac is flat there as well. green but marginally so. making headlines, the house approving the usmca trade deal following a year's more worth of talks. the deal will go to the senate which is expected to ratify the measures passed the house. they need to sign the bill to

keep the departments running he is expected to do so. staying on the topic of politics democratic hopefuls squared off last night including trade, environment, taxes and president trump's handling of the u.s. economy. >> wealthy are growing when you see a government that works great for the wealthy and the well-connected and for no one else that is corruption pure and simple we need to call it out for what it is. >> strong words in that debate >> in corporate news, shares of nike trading lower off by about 1.5%. rahel gives us a look at the reasons why. >> nike second quarter profit blue past forecasts thanks to sales in china but those were being

overshadowed by lower than expected growth in north america. facing intense competition from adidass and oth adidas and other brands. north america rising 5.3%. but that was down from 9% a year ago. china is nike's fastest growing market rising 20% recently launched its sneakers there. that app has already been downloaded one million times shares are down about 1.5 this morning. year to date, off about 34%. here is the thing, the jordan brand itself had its first ever $1 billion quarter jordans. >> they were so hot when i was a

kid and still hot now. how long has michael jordan been retired? nike did have an issue where they are selling more shoes, so they built up some inventory this whole idea that they needed to work more the stock has been doing so well as of late >> the brand is apparently still on fire. sales in china really strong north america, slightly not as strong as last year but already such a strong brand. >> rahel wearing the tiger wood's red to the broader markets futures trading. tiny bit to the upside they will tack on to the records set yesterday. a slew of records already this year joining us on set, chief market strategist you perhaps know him as the guy best associated with the stock

traders almanac. jeff, thank you for being here let's talk about the idea that we are at record highs in the stock market this is a far cry from what we saw last december. a seasonally strong time of year it was then too but the market still tanked what is different this time around >> you have a fed that is much more accommodative trade deals are progressing. you've got political stuff behind us. we have this impeachment thing from the performance in the market, it seems to be a big yawn at this point what is similar last year to this year is you still have the santa rally coming in. that was one of the first indications of the bottom and underlying strength. >> i want to talk about the

santsan santa clause rally what exactly is the santa clause rally? >> my father discovered and found the rally, which is the seven-day trading period, last five days of the year, first days of the new year it is a bit of a trading vehicle. we do deploy these it is the phases that santa will call an indication of people normally buying things. professionals and money managers aren't buying. we are entering that period now. we are not there but on the cusp of it. can we expect to see santa come

this time of year? >> i'm expecting it. last year, it was on average i see no reason for it not to appear i'm not necessarily of the camp of if it is going to happen. let's see if it does or does not show we gain analysis for the coming year >> there is also something called the january affect. take us through what that means. >> the january affect not to be confused with the january barra meter. the small caps to outperform large caps we see that shift. most starting in mid-december. the russell 2000 as opposed to the russell 1,000. you see that in your charts there. showing you the small cap did have their big move. so that is coming up sort of beginning already.

we see the russell 2000 picking up runs the first half of january to the beginning of march where small caps start to lose their gains. >> interesting over the last month, we have talked all year about the small cap indices lagging. they still are in the last month, we've seen a nice up tick higher. >> we did see the seasonal patterns out performing the large caps it was underperforming for the past 12 months we saw the labor day spike it has been tracking seasonally more this year than last year. >> before we let you go. it is a presidential election year coming up a lot of stats about that performing >> one thing we came up with doing the outlook for the 2020

almanac was the power of income ban si when the sitting president was running for election 6.3 s&p. when it is an open field, you have minus 1.6 or 1.5. having somebody priming the pump when in office tends to be bullish. that's where we are. >> so 2020 could be good for the dow? >> probably. still pretty solid >> thank you we appreciate your thoughts. when we come back, china's president has a harsh warning for what he calls external forces that might want to interfere in hong kong and what this could mean for a u.s./china trade deal later on, our room to run series comes to a close with a look at emerging markets we have investing ideas to take

you into the next decade a very busy urho when "worldwide exchange" returns after this do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere.

prevagen. healthier brain. better life.

welcome back to "worldwide exchange." breaking news from the world of central banks. the united kingdom naming a new head of the bank of england. former governor will take the job when mark carney steps down in january bailey currently runs a uk

regulator. before that, he spent three decades at the bank of england turning now to china global markets hang on to about every deadline turning to comments the country's foreign ministry made today. what are they saying now >> you know, dom, what is interesting is that china seems to be revealing its concerns that human rights issues could threaten the trade deal. the foreign ministry today blasted the prime minister for suggesting overnight that the u.s. should hold off on signing the phase one deal until the fate of two detained nationals was addressed. the two were imprisoned about a year ago soon after the cfo was detained they never officially connected these two incidents. today, they said the efforts to

link these cases with the deal were, quote, doomed to fail. they approved another bill sure to anger beijing this is a policy that affects and supports the religious practices and rights of another minority in china, the tibetans. no date set tore this full vote. it is one that is very sensitive for beijing. it comes at a time when china's president has been touring and had a stern warning for the west, including the u.s., over hong kong saying beijing wouldn't allow foreign forces to interfere in china's internal affairs. that would include any place beijing believes is theirs >> so eunice, one of the big stories we have not covered as much is the idea that president

xi is in macau he wants it to become more diversified, much like how hong kong is now. we have seen protests there ebb a little bit, right? >> yeah. there is a lot of speculation that this has everything to do with trying to remind hong kong that will are economic benefits to having close ties with beijing. right now, macau is seen as sort of the good son. they have similar governing systems where they are separate but part of china. this visit is seen as a way to remind hong kong that there are perks that could come with your relationship with beijing and with macau, there is a lot of

speculation that your effort there would help macau to diversify away from casino gambling building up the infrastructure so there could be a financial center there one example thinking about the yuan build up exchange to have the counter weight themselves in macau for another financial center if the protests continue as we've seen in hong kong >> a lot of nuance and detail going into these trade talks and saber rattling on both sides thank you for that update. do you remember going to school book fairs as a kid they could be what is driving our mystery chart today.

the name is revealed all of that coming up when "worldwide exchange" returns right after this break >> announcer: today's big number, $10 trillion that's how much corporate debt is held by u.s. companies. up this decade according to research by ubs. your other sma. woman: is this all the devices you have? your tablet... seriously? smartwatch, your backup tablet, and... woman: anything else in your bag? ...whatever that is. (beeping) this isn't working. introducing samsung mobile workspace solutions. with the galaxy note10 with dex software, you can run your entire business on the one device that does it all. samsung business solutions.

on the one device that does it all. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. welcome back checking on some of the big

stocks on the move today royal dutch shell expected to take a charge of $2.3 billion in the fourth quarter could hurt demand. those shares off by about three quarters of a percent in british trading. u.s. steel plans to layoff workers, suspend stock buy backs. u.s. steel lowering capital spending forecast for the year 2020 those shares off 6% pre-market shares of scholastic are soaring today. the publisher of textbooks and the harry potter series, the company benefitting in part from growth in its book fair business those shares up 11.5% in the extended hour's trade.

>> one of boeing's high-profile areas is ready for lift off. ffes each and every one of us. together with ibm, we created a whole new kind of school called p-tech. within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. you know what's going up today? my poster. today, there are more than a hundred thousand p-tech students around the world. it's a game changer. my bladder leak underwear.orried someone might see p-tech students around the world. so, i switched. to always discreet boutique. its shape-hugging threads smooth out the back. so it fits better than depend. and no one notices. always discreet. doprevagen is the number oneild mempharmacist-recommendeding?

memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

. welcome back to "worldwide exchange." let's check the top headlines with with frances rivera with the latest >> we start with lawmakers leaving the impeachment trial in

limbo. house speaker is withholding from the senate until mitch mcconnell agrees to rules that will lead to a fair trial. democrats were blasted in the move a new warning in a flu-like illness from eggs. pealed hard boiled eggs are associated with the listeria outbreak the eggs sold nationwide in bulk but not directly to shoppers >> candidates battle it out, a new miss america was crowned a scientist studying to complete a doctor of pharmacy degree. the first to conduct a science

experiment for her talent. miss texas also made history the first miss america contender to ever fair the afro hair style on stage she made it to the top 15. hope you have a good weekend >> love that holiday outfit. coming up on the show, running against the trump economy. squaring off last night on everything from tratd to taxes we'll bring you those highlights when "worldwide exchange" returns after this

green arrows futures turning to a higher open and look to extend that rally into the new year. your money, your vote. hopeful attacking the trump economy last night that's straight ahead. ready for lyiftoff the star liner ready to take to space today. you are watching "worldwide exchange" here on cnbc welcome back stock futures are pointing to modest gains if everything holds to futures trading, the dow would open higher by about 17 points.

s&p by about one point and the nasdaq by about two points on the treasury side of things, that continuing trend as of late continues this morning benchmark 10-year u.s. treasury yield currently 1.945% the two-year yield 1.644%. that difference about 30-basis points wide at this stage. let's look at the asian markets. the nikkei off by about one faurter. change high down by about half a percent. looking at european trade. those markets generally green. the dax up one half of one percent. the ftse 100 up 0.1% as well merck has received fda approval

for the ebola vaccine. those shares moving to the upside there check out what is happening overall. america shares up in the extended hours of trade. reportedly near a deal to buy a minority stake in mira max expected to give viacom the right to distribute. the wawa chain says a data breach may have been affected. malware had been discovered. wawa is unaware of any unauthorized purchases and affect the all 850 stores in pennsylvania, new jersey, dell, maryland, virginia, washington, d.c. and florida so if you are a wawa customer or regular, keep an eye out the final democratic debate

took place last night and saw candidates tackle things ranging from the impeachment proceedings, to trade and the economy as well. >> you are talking to somebody who unlike some of my colleagues here voted against nafta, voefted against pncr with china, two agreements that cost us over 4 million good-paying jobs >> 95% of our customers are outside of our borders >> gdp and corporate profits are at record highs. also record highs, depression, financial insecurity, student loan debt. >> where i live, folks measure the economy by how they are doing. >> we are not growing. the wealthy are growing. ordinary people are not growing. they are not happy with where

they are that's why we must change this presidency now joining me economic policy analyst and cnbc contributor john, we'll start with you watching what is happening with the debate how much have the stories been shifting nuance wise to address what is happening with new runners coming to the race and what the economic situation now looks like for many americans. >> i don't think bloomberg played any role in the debate. what we saw was a consequence in a debate stage booker wasn't there, castro wasn't there harris wasn't there. she's dropped out of the race. you had more space for people like amy klobuchar who has an

appeal she is running as a pragmatic progressive. that sensibility was larger on the stage as compared to the elizabeth warren and sanders more aggressive approach to fundamentally changing america's capitolist system. the question is whether amy klobuchar can translate that added attention and star turn she had into progress in iowa where she has to break out in order to become a contender. >> laying out points there many parts that center on the ee condition my, how things are working out for millions of americans. can we talk about the shift that perhaps amy klobuchar is gaining some steam over some of the more left-leaning and far left-leaning policies that perhaps elizabeth warren and bernie sanders have put out

there is the strategy still sound to go after the wealthy and capitalist system in america. >> i'm not sure it is. i think candidates like elizabeth warren and bernie sanders. at least as elizabeth warren calls it, quote/unquote big structural change. unemployment rate is at a 50-year low. next year, it might be a 60-year low. do voters overall think the economy needs big structural change when it has actually been pretty good. wages have been rising rising fastest for low-income workers are they going to be more interested in a candidate who wants to fix things. the basic capitalist system in tact >> pete buttigieg mentioned he doesn't think many americans

especially in his home district in indiana measure their well being based on the dow jones they look at how they are doing. how are those americans doing? jimmy lays out a good point. 50-year lows of unemployment a gdp growing modestly and the stock market, let's leave that aside. is there a narrative these folks string togetherle or do you think people will just say the american economy is just sound. >> it depends on your angel of vision and framing what the choice is going to be and the competing argument if you look at the metrics of continued growth and gross national product if we are in a record-long expansion. the market is doing well, those are all good things. unemployment is low.

many americans have poor quality jobs long-term trend. we don't have significant growth in wages in the middle and working class of the country we have an economy that knows how to generate large corporate profits. that does very well in the market share many average americans don't feel the return. are you looking for the best version of what we have or do you think that is feesable to create something new and what we saw in the 1960s and 1970s >> is the economy in a good position right now or do more

americans feel marginalized he needs to convince americans not only are his policies good but this is a continuation of the obama years. not quite as good in those states i didn't get a sense of that last night >> thank you great discussion here. continues to the all-important election year in 2020. back to corporate news despite a top and bottom line beat highlighting around the jordan brand here is nike's chief financial officer on the call in the prior

year, this may sound not that significant but it actually was. the shift of la brobron to the lakers >> i have to say, nike has been on a terror. one year longer, 46% gains not a surprise with a little mishap those shares could be down is the story unraveling. should we be taking profits? >> i think the story continues

to be positive they have so much growth across different channels and focuses that these minor offsets are fine i think one of the best reasons, they really follow consumers and they know how to use all of that in order to give the consumer what they are looking for. not necessarily, we give you product, hey, this is what you are looking for and fits you and they localize it talking about air force ones, which is the best seller and really looking at the feedback around women being able to create products for that store that is phenomenal and making this brand succeed >> besides air force one and jordan, what else is nike

getting right. we talk athleisure. >> outer wear is one of the biggest components that is doing well intoicy nike is hitting on all of that they have a ton of outer wear. that is for men and women. it is very versatile you could wear to work out and outside. when you look to the growth in china. >> let's talk about how much

threat there is for nike, adidas, underarmor, puma how much do they have to fear all birds, lululemon, the same type of products out there >> i think nike is really smart to do the key collaborations one of the most hype for 2020 is dior and jordan. they do so many things with boutique and names doing the work with nordstrom. not only is the product unique, it offers unique experiences within stores that is also what the other brands do.

they have move momentum to play around nike is mostly amplifying that >> jessica ramirez, thank you very much. coming up, boeing's max fleet may be grounded but the high-profile space program is ready for liftoff. we have it from the kennedy space center in florida. morgan, it is looking pretty hot. >> reporter: it is looking good for liftoff this morning this is space launch complex 41 here the boeing vehicle on top an atlas five rocket. this could mark a major milestone not just for the company but for the country. we have details after this break. creating compelling, engaging, and informative content

and experiences. with this merger, viacomcbs will be one of the largest and most influential content creators in the world. i know we can deliver on the full potential of this amazing new company.

(danny)'s voice) of course you don'te because you didn't!? i know we can deliver on the your job isn't doing hard work... ...it's making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you. stthe world treats andh defeats childhood cancer.how i know what research means. yes you do... and so should every parent. donate now at st. jude dot org or shop wherever you see the st. jude logo. back to "worldwide

exchange." a big day for boeing and the space race going to the kennedy space center is this going to be a big one. >> fingers crossed it is all systems a go this is going to be a potentially big day for boeing the outcome of this test could mean astro naughts flying from the ground to space. the star liner to space. it is going to launch via a united launch alliance rocket, an atlas 5 launch. no humans will be on this flight

but a dummy named rosie and some christmas presents for those ast astro naughts at the space station. this will be the final test for boeing before nasa applauds people on board. >> those who will be on the first crewed mission that could happen in the next couple of months he'll be on board not as an nassau astronaut but for boeing. >> to see it on the platform to see it all fit together it is pretty inspiring we did our homework. everybody did their job the right way. the stage is set we are ready to go

he has been very involved in the design and development of star liner. boeing does have competition spacex is also part of the commercial crew program, which i should notice is three years behind schedule. the program has doe voted billions to star liner and to spacex to basically become space taxis to and from the iss. this is very much a race to see who gets to human space flights first. spacex already did this version of a test in march boeing is doing its today. spacex has one more critical safety test it needs to get through. right now, if everything goes according to plan, you are going to see both of these companies and their vehicles bringing humans back to space early next year >> so morgan, this is a big deal because it takes that increment al step towards getting people

trafficking to and from space. you mentioned spacex, virgin galactic is a public company as well do we feel as though with the successful launch today, we could find more enthusiasm or capital looking to find ways to play the space trade >> absolutely 100% yes you've already seen some pretty marked increases in terms of investor flows in the prime markets, the vc world and commercial space it is worth noting with this crew, it is focused on nasa astronauts nasa has already said as soon as next year, they are going to open it up to private astronauts in the case of spacex, it is

upwards of $50,000 to buy a seat on deck, room to run, it has been a special series all week we've talked about global markets. the consumer, technology and today, the emerging markets. investment opportunity for the next decade is coming up but first, we want to say congratulations to "worldwide exchange" producer adam idleberg he's celebrating 20 years at nbc universal and has been on this show since its fndouing in 2005. congratulations and here is to your next 20 years my gums are irritated.

i don't have to worry about that, do i? harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. it works below the gum line to neutralize harmful plaque bacteria and help reverse early gum damage. gum detoxify, from crest. what are you doing back there, junior? since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years. yeah, that's what i'm afraid of. he knows exactly where we're going.

my whole body is a compass. oh boy... the my account app makes today's xfinity customer service simple, easy, awesome. not my thing.

. this was a over 20% return year that the expectation for where we are going has been set. >> i think you do have room to run in 2020. the consumer with low unemployment, personal discomposable income growing has more elements to consumer spending than we've ever seen before >> in my opinion, it is the golden age of technology look at 5g >> three major overhangs the end of the peek oil age effect, tesla effect and the greta effect >> a number of brands are very powerful nike is a powerful brand for active and lifestyle f kour vans, tim ba land.

>> the strategies suck they need to get in a position where they are generating cash for share holders. >> half way through the cycle, we are seeing a lot mover room to run for tech. >> overweight equities we don't believe we are at the end of an he can nammic expansion. >> those were a few highlights of our week-long series room to run. the final installment today, it has been up and down all over the place. from hong kong to latin america east the etf is up 13%. that trails the world index which gains at 22% the chief investment officer and

cnbc contributor as well we've known you as an emerging markets guy for so long. you are the perfect guy to talk about this do emerging markets have room to run in 2020? >> great to be part of this moment actually been working. if you think about the markets that have been underperforming if you are an em investor, probably 50% of the return profile. here is the room to run. i think the dollar is range bound on trade and the fed very, very strong for em

granted even in the last 10 years, it has lagged a bit the most important thing is now in 2020. ets, earnings per share will outperform by four to five basis points usually starts out optimistic into the year. >> you do it for mutual funds and etf. to play the bigger play. are there places in particular countries themselves where is the outperformance going to come. is it china, other places in asia, africa, the middle east? >> if you look at the em, one of the reasons that could

outperform next year is the top of the balance sheet at the top of the balance sheet, i like all of that the south eastern asia gets going once again you look at vietnam and asia they are not huge but interesting markets to play via etf. back to some of the core markets. if you look at brazil and the ewz, that currency, despite the local market outperformance, they have been ahead the ewz is well positioned we are starting to get a little trade back if you look at the commodities and the commodity producing countries, which brazil is top of the list, they'll do well in 2020 >> how much for that will north american investors be driven by the companies and the

depreciation in those areas. what drives it more? >> that's a great question great companies in emerging that often can't invest in a bad neighborhood the macro and the rates are not good that is very important to understand if you are investing and emerging you have seen great companies that out perform that index. you can continue to do that and look under the hood. you think about brazil, there are great companies that could perform in 2020. >> over the past decade, there have been pockets of heat within front year markets >> looking at some of the etf's that track that. with frontier, you are getting a

market if we keep central bank liquidity, it will outperforment looki looking at oil and gas in africa for example. they will always do very well. >> thank you happy holidays >> that does it for "worldwide exchange." "squawk box" begins right now. good morning trade deal the house approving a new nafta. moving it one step close tore president trump's desk a race to the finish stocks rally into the end of 2019 your money, your vote. democratic hopefuls debating the trump economy. we'll bring you the headlines. friday, december 20, 2019. "squawk box" begins right now.

good morning welcome to "squawk box" on cnbc live from the nasdaq marketsite from time square dow futures up by about 34 points, nasdaq up by about six, s&p up by 2.5 after record closes once again for the dow, s&p 500 and nasdaq the nasdaq actually extended its winning streak to seven sessions that's the longest in 10 months. the dow and s&p up six times we are racing into the end of the year treasury yields this morning, you'll see the 10-year right now sitting below 2% but just below. 1.943% those have been pickin