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 picking up the two-year yielding 1.642.

the house approving the usmca trade deal following more than a year of talks the new nafta trade deal will now go to the senate which is expected to ratify it after the new year joe. >> thank you, andrew in other washington news, the senate passed two spending bills to avoid a government shut down. already passed the house president trump needs to sign the bill by today to keep the departments running. >> democratic presidential hopefuls squared off in topics such as trade, taxes and president trump's handling of the economy >> we are not growing. the wealthy are growing. >> when you see a government that works gate for the wealthy and well-connected and no one else, that is corruption and we need to call it out for what it

is we'll have much more on the debate in the next half hour with former white house chief of staff and commerce secretary bill daley the candidates did turn on each other a lot last night >> mayor pete. >> he took most of the attacks primarily by elizabeth warren for accepting money from wall street donors. talked about the lion cave but his answer was really good he said, look, i'm the only person up here that is not a millionaire or billionaire >> that's good let's elect the most successful person >> also the youngest person. >> success is not measured -- >> you of all people who are surging.

>> i hope. >> you are here. you had that transformation in less than a minute >> i had some issues on the way in this morning. america's finest closed down everything so i couldn't drive we drove all the way around and i decided, i wasn't going to make it. i was running through time square like tom cruise you can probably hear it a little bit >> it was a breathless delivery. >> we have a lot to talk about this morning, especially this next story which applies at least to myself. never to you definitely myself. >> never me. i ordered four things this morning at 4:00 a.m. >> pay attention christmas is less than a week

away if you are like many, you probably did some online shopping amazon is on track to deliver 3.5 billion packages through its own network. they are moving away from u p everyo s and fedex and fast >> we had the ceo on yesterday that said basically it is over for e commerce shoppers. i ordered some things this morning guaranteed for delivery on saturday, sunday and monday >> i am so confused. so christmas is next week, for sure >> yes earth to joe i'm sure you've been busy buying presents and wrapping them >> i've been dealing with my responsibilities in ways >> so in other words, no

>> i've been dealing with my responsibilities i'm more of a financial backer than -- i don't get involved in a lot of the logistics of gift giving even here. >> somebody asked me why i was up late, they said i was wrapping presents. somebody said i bet those guys don't buy anything >> i have. i already bought i don't want to say because we have children. we'll talk during the commercial break. >> people are starting to ask about commercial breaks and whether there is a way >> we already talked about it. there should be a pay per view option during the commercial breaks >> they'd have to pay a lot. >> career ending we would pay in many ways.

news of another data breach. this one is being reported by convenience store chain wawa malware exposed credit card information. they are not aware of any unauthorized use what is wawa >> it is an amazing place but better than 7-eleven >> what is the name? it is named after -- the native american word for the canada goose. >> that's why they have the goose. >> taken from the song of hiawatha >> i knew it was a town. >> it sounds weird >> sounds like a baby asking for water. >> the tribe is ojabi. i don't know how to say that

there was a data breach. so you are here. >> we are here becky is always here >> not always. >> enjoy it. next week might not be the same for the all of us in terms of being here >> you are not here. >> he's gone the week after. >> i'm here monday and friday. >> you are i didn't know that >> nonetheless, coming up, nike posts better than expected earnings shares trading lower this morning. we'll tell you why subscribe to our podcast you can get interviews behind the scenes not just the show, folks there is a lot more going on >> not the commercial breaks >> not the commercial breaks yet

either but a lot more our producer puts it all together and it is an amazing thing. >> she has an amazing voice. >> do it anywhere you get your podcasts stay tuned for more. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. cme group - when i lost my sight, my biggest fear was losing my independence.

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welcome back to "squawk box. stocks to watch this morning, merck receives fda approval for the ebola vaccine. sha shares of scholastics up this morning. publishes textbooks and harry potter series. benefitting in part from growth of book fairs. nike beating on top and bottom lines it posted the first ever billion-dollar quarter the stock actually fellower. look at the stock right now, off

a bit there. joining us to talk about what is next the senior consumer research analyst. good morning to you. what was your big headline on this news? were you surprised >> i think this is one of those situations where everything perfection baked in. the stock was strong they came in at 13%. they beat on the bottom line they came in at 70 cents a 13-cent beat there too the stock was strong going into this this appears to be more of the same they've beaten feening

fully and over the course of the next month or two, it went down afterwards >> how concerns have you been or not about the trade war situation. >> this quarter itself is why i shouldn't be concerned about it. >> the gross margin up 20 basis points this quarter. it would have been up 70 they still were able to deliver their growth, there seems to have no growth in the brand. continuing in that region. we don't see any reason to have

a slow down from this trade right now. what does it mean with the new ceo? >> nike, john brings a wide range of expertise they've made it clear the future of nike is digital they have more than 100% growth. sneakers grew. they are getting extreme growth not only in china but europe as well nike is trying to be forward thinking here and bringing in expertise that could help get them there and make this transition to future retail versus how they've historically operated >> final question. you reference at the top is this just a blip? >> they expanded gross margin by

20 basis points. that is pretty meaningful. we look to next year, there is a huge margin opportunity. nike has been investing significant amounts of money as they start to make this in a more meaningful way. the example that they had 130 basis points the street was looking for flat. once we get past this tariff situation, you are looking at an expansion going forward. >> happy holidays. what is on your feet right now >> i'm wearing shoes

feragamo shoes >> i got meetings today. >> you should be wearing jordans. >> you have sneakers on? >> i have sneakers on. not jordans. but that is going to be the trend. >> i hope you tell my boss that. >> happy holidays. when we come back, new research suggests hundreds of millions of facebook users had personal data exposed for about two weeks. more when squawk returns

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welcome back, everybody. cyber security researchers say more than 267 million facebook users had personal data exposed for about two weeks. facebook is invest gating but believes it was from before security measures were made over the last couple of years they found this data base in vietnam that had been collected.

it had all of these user information, profiles and information on it. no pass word on that file. they tracked it down before they made some changes on cambridge, they would share information with app developers. they think it might be one of the ways it got out. >> from where? vietnam? >> but it was information from u.s. users for the most part >> stolen. all stolen >> you are not on facebook, you don't care >> kids might be though. >> a new study says many facial recognizing systems are biased thinking about how technology is being used by authorities to identify suspected criminals >> i would guess that is the ai

stuff being made here in the united states and not in china >> it is >> it is garbage in, garbage out. you put your own bias in my guess is it is not chinese programmers. >> the issue may be potentially in terms of hiring like ai will start looking through resumes and web pages. there is a lot of things that can go on the right and wrong way because of this stuff. >> airports now you can go right through. >>. >> i'm excited about this apple story. i read it this morning just yesterday, my son was saying the apple roll out has been a little bit -- >> apple plus.

>> it has not been that well received not that great >> they don't have a lot of content yet. >> this for me would help because of my addiction. college sports >> you go college sports, i go james bond >> right apple is reportedly looking for ways to expand the new tv service to include college sports rights. in talk with the pack 12 conference apple recently met with representatives of mgm and that is the link we are talking about to the james bond franchise. thinking back to us that we have time sensitive stuff too we are dvrable because we are so entertaining we have stuff that happens real

time the content will always be valuable >> the question is for all of these sports leagues whether professional or amateur is how much money can you get from the streamer. how much can you get from all of the other sponsors >> the reason why cbs is still broadcasting nfl, they need as many eye balls as possible because they need all those responsers and the audience. the question is whether apple plus or any of these services are big enough yet to actually command the eye balls that come with the sponsors. >> the pack 12 would only be apple? >> this is the question. >> maybe there is a separate package. look, amazon is now broadcasting some football? >> you couldn't see any of the pack 12 games anywhere but on -- that seems like it would be,

fans would be outraged or long-time fans that do not have these situations and feel like wait a second >> right >> why wopt you do it on top of? you can watch one piece on amazon and the other on nbc. >> do you know how many bowl games there are? 40 who do you have today? buffalo or charlotte >> who did you pick in. >> marquette is playing tonight basketball i did pick market. >> i picked a favorite >> over? see, you have a problem. you don't even know who you are picking over

>> i know i have smu over georgia. >> he broke the buck >> i'm way below i'm trying to hang on. >> $500 of entertainment lasted the whole year >> here is my bigger problem slicing these up i'm having more and more trouble navigating all of these services i have a couple of different remotes, which goes to which we talked about tiv on the other day and that search feature. you have to have netflix and everybody else cooperate with you. they are getting to the verge where they are not competing with the consumers >> you make live in an axfinity

land >> i don't >> i thought you did they have this thing you can talk into it like this >> if you have a universal remote, it is hard to do all the things if i didn't have xfinity, i'm not sure i'd want to go on living >> comcast, parent company of this network >> if they ever took it away from me. >> or made you pay for it. >> the netflix original movie klaus has been a favorite. >> it will be an instant classic, i'm telling you >> come back they say that it has been watched in nearly 30 million households already in the debut

making this one of the most watched netflix original movie >> he becomes clause it is the origin story of santa. >> totally fake though and secular. >> yes >> it is saint nicholas. >> the way we treat it in our family as like an american holiday. >> okay. coming up, only two bowl games it gets started. you know, there is nfl games tomorrow i looked at that in horror >> we haven't commented on this library look >> i looked for "too big to fail" up there >> big library >> they said because we are well-read. >> we pretend to be on tv.

>> boeing said the space program is ready for liftoff at the kennedy space center. you have no coat on. morgan >> it is a little windy right now. all systems a go take a look. space complex 41 boeing vehicle sitting on top of an atlas five rocket less than eight minutes until liftoff. this could mark a major milestone for the country and the company. those details after the break. that was wonderful bravo. >> i loved that. >> it was great. >> pretty good >> not bad >> parts that could have been better >> i didn't really like it >> it was bad. >> awful boo.

good morning welcome back to "squawk box. we are live from the marketsite in times square. futures have been indicated higher we have been on quite a run. all the major averages at new highs yesterday. the dow up about 37 points nasdaq up by 10, s&p up by about 2.5. the house approving the usmca trade deal last night following more than a year of talks. the trade deal will now go to the senate which is expected to ratify it after the new year >> the senate passed two spending bills to avoid a government shut down those measures already passed in the house. president trump needs to sign those today to keep federal departments running. he is expected to do so. u.s. steel says its financial performance will be worse than

expected in the fourth quarter it plans to layoff workers, idle some plants and suspend stock buy backs. u.s. steel is lowering capital spending forecast for 2020 boeing's space program is ready for liftoff. testing the starliner vehicle. supposed to be at 6:36 a.m. in florida. morgan is at the kennedy space center >> reporter: watch the clock we are just a few minutes away the outcome of this test could mean astronauts flying from american soil back to space in a span ofmonths. the space shuttle program ended eight years ago. here is what is on tap first trip on the star liner sitting a top the united launch

alliance atlas five rockets. people will not be on this flight a dummy named rosie will be on board. it will dock with the international space station tomorrow, stay a week and come back to earth. this is the final test for boeing before nasa allows astronauts to get on board boeing does have competition spacex also part of the nasa crew program it has awarded boeing and spacex billion to develop their vehicles basically using them as taxis to and from the international space station. this is very much a race to see who gets to human space flight first. the final test for boeing before it starts to do its crude missions spacex did their version of this flight in march. they have one more critical

safety test to get through we are looking at months until human space flight capability returns here we are less than a minute from liftoff right now. spaceplex 41 >> right at 36 >> instant anious launch window. it hasto happen then to link u and dock with the iss early tomorrow morning >> they are late >> by the way, automatically docking is a feat in it self we are almost there. >> between 36 and 27 gren itch >> 10, 9, 8 --

>> here is the countdown >> five, four, three, two, one liftoff. the rise of starliner and a new era in human space travel. >> now 10 seconds into flight. begun the pitch over program now 15 seconds in. control. looks good >> so far, so good looks good >> watching a rocket launch like that never gets old. >> never gets old. >> all right there you have it. >> that is starliner a top an atlas five rocket launching, blasting off on its way to

space. first ever trip to space for this vehicle that boeing has been developing now for the better part of a decade. part of nasa's commercial crew program. in about four minutes, that atlas five booster will separate then it will continue to take that starliner to or bit about 15 minutes after launch, that will fall away and starliner will make its way towards the iss. process all together will take about 26 hours >> morgan -- what happens -- >> you can see that rocket powering away. >> what happens when human astronauts are actually on these flights. how will that take place we'll watch something like this take off and then? >> absolutely.

even though there are no people on board today, every step they have simulated as if human beings were on board to create a dress rehearse al for when that first crew mission would happen. >> then they'll go where >> the international space station. >> it will dock there and turn around to fly back >> the way to think about it they will be basically ferrying astronauts up to four astronauts to and from the space station. in the case of this specific flight today this will bring 600 pounds of cargo including christmas presents to the astronauts on board the iss and a dummy simulating the human experience that will stay docked to the iss for a week and then comes back to a landing in new mexico next

saturday, december 28. right after christmas. >> is that the trickier part of this not that there is anything easy about rocket science how much is writing on that landing? >> the landing will be a very big deal because it is a land-based landing the way that will happen is starliner will come back to earth. three parachutes will deploy and basically a cushion will come out from underneath as it lands and hits down to the ground. that part is very critical many times you see space crafts come back and do ocean landings. also, automatically docking with the international space station which they have been designed to do is going to be a critical piece of this.

the space craft was designed to do that on its own you have astronauts on the iss that are prepped but they have no way to step in if anything goes wrong it is a very key test. so space is hard every set of the way. >> are there booster rockets that fall off? >> yes >> that's the difference between this and space shuttle >> no. those fell off too >> it looked like the same when it came back >> morgan, in re-entry, remember how that was crucial for the space center program and the tiles and if a tile was missing. you still is that issue, the friction coming back when you first reenter. it looked a little more spart an too. it was just to get people up

there and back down. didn't look like you want to spend a lot of time on it. >> yes i have been inside of one of these at houston at johnson space center it is kind of small. to me, it is kind of small to me, they can fit four up to 11 astronauts. it is 11 cubic meters. a lot has gone into the safety of this. they are looking to launch astronauts back in 2017. the reason we are posed to be three years behind is because of all of those safety issues making sure it is perfect for the human beings who get on board. >> this just has parachutes and drops down with a cushion. >> can you can you step there will be that ability but yes, so much more technologically advanced than

what we've seen prior. it just continues to develop i've flown some of the simulators it is a lot more intuitive, straight forward and easier than you'd expect >> the software bogles the mind. it already knows how it is going to dock. it is amazing. the amount of technology and software that goes into that finger's crossed i'd be a little nervous on the docking both things are going fast right? >> yeah. there is a protocol and process in terms of how the starliner will slow down, come closer to the iss. move, slow down. they have this -- they have the

methodology worked out what is really notable about this program these are vehicles that have been designed bibeauing and spacex with funds from nasa but they'll be owned by spacex and boeing once humans start going to space, there will be a lot of opportunity there as well. >> thank you, morgan fun to watch fingers watched. coming up, form white house chief of staff to president obama will join us to talk about last night's democratic debate bill daley will be here. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best...

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still to come, former commerce secretary will join us to talk about last night's debate and how democratic hopefuls are trying toun r against the trump economy. we'll be right back.

the idea that we're growing. we're not growing. the wealthy -- very wealthy are growing. the ordinary people are not growing. they are not happy where they are and that's why we must change this presidency now >> where i live folks aren't measuring the economy by how the dow jones is looking, they're measuring the economy by how they're doing. when you're doing the bills at the end of the month at your kitchen table and you find that even if your wages have gone up, it's not nearly going as fast as the cost of health and housing. >> gdp and corporate profits are at record highs. also at record highs, depression, financial insecurity, student loan debt. even suicides. >> top democratic presidential candidates squaring off last night. joining us to talk about it is bill daily he's the former white house chief of staff to president obama. bill, it's great to see you. >> nice to see you, becky.

>> let's talk about what you saw last night on the stage. how did it make you feel as a democrat who's been sizing all of these guys up to decide who is best going to run against president trump? >> i think it was an interesting night for this reason, three of the candidates, vice president biden, senator klobuchar and pete buttigieg, three considered moderate people on that stage and in this race seemed to do very well. obviously the vice president's been the front-runner for over a year he had a strong performance. there's only five weeks left to iowa i think klobuchar, who's a neighbor from minnesota to iowa, is in a growing position but, again, viewed as someone who can get things done and can possibly reach across the aisle mayor pete is new, but he got beat up by elizabeth warren a little bit last night, but i think he held his own. i think it's shaping -- this race is shaping. i think the fact that we saw over the summer a real explosion of a sense is the democratic

party going way too far left, that seems to be coming back to where the three people who seemed to get the most attention last night and seem to be doing well or better even in the polls in iowa and other places are three of the people who are perceived as a little more moderate than some of the people who were driving the discussion. >> which is probably why you saw more of a mixing it up between the candidates elizabeth warren attacking buttigieg for taking money from wealthy donors what do you think about that >> look it, i think it's been proven over many years no doubt about it, we have too much money in the city system. citizens united has really kind of made the system more perverse, but it's not an issue that people vote over. so they can talk about it. i don't think anybody thinks because someone has a fund-raiser in a wine cave that somehow they're -- they've compromised their principles. >> somebody does sanders and warren -- >> they're not -- >> sanders and warren seem to be taking a big stand on it and they think people will vote over

it >> there's some part -- yes, there is, but, again, it's not only about winning the primary, it's about winning the general election, which will be a tough election but history has proven that that issue is not what drives voters, and it's important again, i do believe that there's too much money i think citizens united has somehow perversed our system, but it's not an issue that drives people to polling places. do you still wish it was all union money, no corporate money, bill is that it do you think that's more fair? that's what the democrats are more like that republicans are kind of big business. >> no. that's too simplistic, joe. >> it's okay to get all the union money and then you owe the teachers unions and we don't get anywhere on education or whatever it just seems weird that -- it seems hypocritical to me. >> no, i think the whole system across the board --

>> so that money too >> yeah, it's definitely too much the rules are too gray they're not clear. i think it's just the cost of these things has gotten prohibitive. now much of it is in trying to get your message across, but i think they're -- i think both sides would say talk to senators or congress people who spend hours and hours every day raising money and ask them whether they really think that that's why they got elected, to spend all those hours in a little cubical on a phone calling people they don't know and begging for money. weird. >> bill, let me ask you a quick question about wells fargo here in your new role. >> sure. >> reuters has a story that says a u.s. congressional committee is going to ask the board of directors to testify about the old sales scandal from the bank. >> yeah. >> that's expected to happen next year. what do you think? are you -- what's the company going to do? >> i joined their firm with charlie scharf who just became the ceo. no question about it we're

moving forward mistakes were made, actions were taken that were injurious to customers and we've paid the price and we're moving forward to take a company that's got a great history and deals with 70 million customers in the united states deep in our communities, big lender, affordable housing probably the biggest real estate lender in america. we're looking forward to try to change the institution, make it a better place and those who have the obligation to look at different things from the past, that's their obligation and they'll do that. and we're just trying to focus and charlie's trying to focus this company and make it a better company for our customers. >> bill, thank you it's good to see you and we will talk to you soon. >> take care have a nice holiday. >> you, too. >> baby yoy yoda when "squawk box" comes right back that controls hiv,

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riding the santa claus rally. >> ho, ho, ho. >> no! >> guest host jason trennert joins us with his sector list

and his outlook for 2020. >> democrats square off in l.a. and frank luntz and his focus group. >> i'm a billionaire, i'm unsavory >> i would say so. >> that interview straight ahead. plus, baby yoda may be winning people's hearts, but finding him on the toy store shelves for christmas, nearly impossible did disney drop the licensing ball discuss, we will, as the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen.

jason trennert is here u.s. equity futures at this hour, let's show you what's going on right about now we're going to flip it around. you're looking at that screen. dow up 42 points higher. looking at the nasdaq open 10, call it 11 points higher and the s&p 500 close up to 3 points. what's making headlines at this hour. the u.s. has approved the usmca. that approval was overwhelming with 385 lawmakers voting in favor and only 41 voting against it it now goes onto the senate but it is unclear when it will be voted on because of uncertainties over the impeachment trial. two data breaches. personal data of 267 million facebook users was exposed facebook, however, says it believes the data involved was from a period of time before additional safety measures were implemented. also, convenience store chain wawa said it had a breach of

credit card information. getting revised third quarter gdp figures in 90 minutes. they expect no change in the 2.1% economic growth. happening just in the last 30 minutes, a successful launch of boeing's star liner from cape canaveral this morning it's designed to eventually bring humans into space. it will spend a week being docked at the international space center before returning to new mexico. >> to be coming back down making a landing on land, which is tricky, it's going to have to be ready to make sure everything goes well for the humans that will be landing at that point. morgan brennan was describing how it has three parachutes that come down and deploys a cushion to land on that will be interesting to watch the landing even more so than the takeoff >> your all-american story we

talked about wednesday -- >> remember, joe, you were gone yesterday. >> gone one day. >> i said good for you you made it out. >> no, liesman -- >> we talked all about it. >> the all-american survey you did the joke on friday >> we did the joke on wednesday. would you like to do it again? >> no, not now too late for you the stock market hit all-time highs and the unemployment rate hit 50 year lows but did average americans feel like it was a good year for growth and how did they feel and how do the athletes feel? >> thank you. >> for answers -- 40 bowl games. good time to talk about the all-americans, the guys that are -- >> you were dising my alma mater buffalo. >> i have buffalo. >> do you? >> you know they're playing today in the bowl game. >> i do. >> are you going to do anything? are you going to watch it? >> i might watch it. >> i'm excited about both games today. the other is utah state, kent state. i can't wait draft kings changes your life.

gives your life meaning. awful. for answers we turn to senior economics reporter steve liesman and the cnbc all america survey. >> our survey showed americans were feeling it in 2019 about as much as any time in the past 18. the cnbc all-american economic survey, 800 americans, not just athletes, 48% said they felt the economy approved only 42% said they saw little or none at all and 10 percent none or little. like many of our answers, it's driven a lot, not entirely, bipartisan views 77% say the economy has improved a lot or somewhat compared to 28%. independents in the middle at 44%. for the 2020 outlook we asked a very interesting question.

is next year a year of expansion, an opportunity for you and your family or a time to hold back and save because harder times are ahead take a look at the answers 35% taking the rosier view of 2020 doesn't sound like a lot it's the highest since the question was asked this we go back using wall street journal data to 1998. >> wow >> pretty interesting. >> 20 years of data? >> right >> 52% are concerned, maybe a sign that there's an underlying caution in the american psyche that you can never get above a certain level of people saying, look, i don't -- >> i don't like the colors on that blue should be people are sick yellow good. >> 52% do not. >> look, even no matter what you do, you can't get below that, those having the pessimistic outlook. every demographic is net

negative republicans are positive those who will spend $1,000 or more for the holiday season. those who think now is a good time to invest in stocks it's across the board net negative which is really interesting. >> does that tell you that most americans are pessimistic or does that tell you that people are struggling >> i think it's the first one. i think it's hard to know. it also gets at this issue, which you talked earlier about the idea we're getting gdp at 8:30 howell does gdp measure economic well-being there's a big debate in the economics community whether or not we're measuring the distribution of wealth, happiness and other things we have this one number, the best number we've got. >> it's not the gangbusters number it's the unemployment number and the wage gains are the gangbusters number the gdp is disappointing >> it's interesting. >> are you into doing what boutan does?

the happiness quotient >> i am about all data gdp doesn't measure happiness. guess what, it was never gauged to measure happiness gdp is not designed to do that. >> you should look at it all >> those are -- don't you hate those things that measure all the crazy stuff and put it in there? >> i'm just asking >> measure the happiness index, not the gdp index. >> measure your commute that you had into work determines a big part of your happiness. >> you can look at the stock market, unemployment rate, you can look at the growth rate, income rates, it's the economy it's 300 million people making individual choices and the fact that one number doesn't suffice, well, guess what >> i thought your 20-year high explained why the consumer's been pretty good, it explains why people are feeling better than they have recently. let's get to trennert.

>> people's levels of debt are very low. >> consumer debt. >> not company not corporate. >> jack caffrey and jason trennert are here. >> do you manage money >> we are a research firm. >> caffrey, he's got some ideas here >> right yeah >> so you can look at the notes you have or you can just use your pen and take this down. jack, he'll be listening. >> take notes. >> no recession in 2020. that will be the 11th straight year, but slow growth and you -- i think it's cute, you say that you're actually really excited about looking for some secular trends to outperform in a slow growth environment, right? >> ultimately it has been growth that has mattered for almost a decade now value has struggled. and how do you find growth that is a little bit faster than this what five, eight, ten years ago

would have talked about the terrible twos which would have turned into the terrific twos. we're creating jobs, creating wage gains and not creating the underlying -- >> disruptive. >> disruptive technology. >> disruptive growth trends. the secular growth buildout. >> ultimately you start thinking about we're transitioning from 4 4g to 5g that allows for tremendous data. that's underpinning how we're talking about vehicles how does that boeing spaceship autonomously wind up docking with the international space station. how can you do that with rosie the rocketeer at the controls. three parachutes and ultimately an airbag to cushion your windup landing. how do you have that data? >> you're not going to give us

individual -- you don't do that? vehicle, who's that, tesla >> that would be an example of next generation vehicles basically i can't think of a single major auto company which isn't starting to work towards more autonomous vehicles or certainly alternative fuel source. >> how about the growing importance of cyber security >> we just talked about a breach. >> two breaches today. >> two breaches this morning. >> breaches du jour. >> wawa for god's sake i stopped there on the way down to washington. >> do you know what wawa is? >> i do. i think we bought a sandwich they have lovely sand wishes there. you go into a stinking convenience store and your data is at risk i'm sorry. >> i will say, they -- back to his point about -- back to jack's point about the technology that's in there, you walk into a wawa and you can order your own sandwich from the kiosk with everything you want on it all the way through.

>> and it comes out. >> do they have those -- >> no, they have good food. >> some of those are eight, nine months old. >> years. >> yeah, they might be you know what, what's a wawa do you know what a wawa is >> i don't know what it is. >> i just said that. >> it's a convenience store. >> no, it's not, it's a canada goose. it's from the song of hiawatha >> that's the history of wawa. >> you are so sophisticated. >> thank you. >> at times. >> at times. >> how about 20% of investment grade debt is a negative yield so stay away from bonds, they're not going to be any good. >> you're asking an equity portfolio manager if he likes bonds. >> preferred equities -- >> you want to move down the capital stack because ultimately i think that's where you wind up getting returns, whether it's dividends, dividend growth whether we're talking financeias in terms of preferred. >> jason, i wanted to have you

respond. >> yeah. we have -- listen, i'm all for secular growth stories, but in our firm we've been telling people to go more cyclical and go more towards value for the last couple of months and that's largely because we've seen what we think is a bottom in global growth expectations starting in august and in a world of negative interest rates, growth does very well things with absolutely no yield do well and things with a lot of yield do well. you'll pay 25 times earnings for procter & gamble and then you'll pay an infinite amount of earnings for a tesla or whatever it is. i think it's changing next year, so we're telling people, again, financials, we move to overweight we've moved energy actually to overweight we have a decidedly more cyclical buys. i think those stocks are cheaper and i think there's more opportunities at this point. in some ways you have a second leg of the economic expansion in my opinion >> do you see this quarter and

next quarter, is this the bottom of the slowdown? >> you're right. expectations have bottomed out. >> i think so. steve, i think in the first quarter boeing is definitely going to have an impact on gdp, but i really think trade in many ways, the trade war between u.s. and china, largely sterilized some of the benefits of the tax cut that we saw at the end of 2017 now that the fact that the trade wa are is over, it seems to me global growth will be better and europe in many ways will probably be one of the bigger beneficiaries because it's so geared towards trade the u.s. will benefit too. >> you've got two hours. take it easy. >> all right >> you've got two hours. jack, you're leaving your time is up. we'll see you later. liesman, you thought i was asking do you know what a wawa is do you know what a walmart is? do you know what a best buy -- >> you're giving jason grief for rambling on. >> yes >> a million calls to come back and excoriate me once again do i

know what a wawa is. here i am taking time away from jack as well. >> do you know canada geese make -- >> they do, really >> two of them >> just one partner? >> one partner mate for life >> wow >> news you can use. news you really can use. >> only my kid would have one canada goose jacket. >> but, wawa. >> when we come back, action figures and licensing of "star wars" figures has long been a lucrative revenue stream for disney, so why the delay in the baby yoda toys why can't you get them for christmas? we've got the answer to that for christmas about why licensing could change streaming content for good we'll talk about all of that next. later, frank luntz joins us with an exclusive look at his focus group's reaction to last night's debate here's a preview of what they

thought of billionaires. >> i don't like them when you go to these wine cave fundraisers that signals not just to donors but to the public that you are willing to take large amounts of money from unsavory, wealthy donors. >> is everyone who's wealthy unsavory >> depends on the wealth >> hold on hold on. i want to -- i want to point this out and then i'm going to you. it depends on the wealth so if i'm a billionaire, i'm unsavory >> i would say so, yes

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not my thing. welcome back, everybody. disney's new show has people want be baby yoda. so cute. don't expect to buy them in time for christmas. because of all of the secrecy surrounding the series, hasbro was unable to make the merchandise in time from the holidays data says this cost disney $2.7 million in revenue i think that's on the low side joining us for more on how merchandising and licensing will change in this era of streaming is linwood bivins. linwood, thanks for coming in. >> thanks for having me. >> 2.7 billion you see it on twitter. i would have been a buyer. what happened? what's the opportunity

>> that's a very low estimate. >> yeah. >> i also think if you go further back as disney's merged and the bigger problem was understanding content and social and the viral nature of it i think this is a mistake that happens once >> somebody pointed out way back when in the original "star wars," they had a similar issue. it was the hot toy for the holidays people were buying boxes, empty boxes and wrapping them for their kids to say, this is the toy that we purchased for you that will come later for these things. >> being an online guy, it was even worse there was companies selling online empty boxes the fraud you were getting from ebay and amazon in the beginning of that, it was off the charts

>> is it your expectation there is a lot more product merchandising off of streaming tv now going forward in a fragmented world, what does that look like i understand why this thing took off, sort of i understand that -- but are there a million tv shows that have generated lots of, quote, unquote, product in this kind of scale like that? >> no. i think what you're going to see is the streaming companies are getting bought by merchandising companies that understand the connection you look at social if you look at the top trends in social, it's feature film, live sports so those are the things that drive social engagement and that's also what drives merchandising. when you have companies that understand that scaleable logistics, you see more of that happen. >> more merge. >> more merge. >> more merge. >> what is amazon is used to it.

nbc's doing a great job of it. they're going to do even more of it you'll see traditional creates shopable >> there was just the e.t. ad that they put out. the tie in where e.t. and elliott were reunited. >> again, parental right content will drive this. >> here's the thing i can't figure out all of these products, whether it's e.t., yoda, baby yoda, whatever it's going to be, they're steeped in a history before the media was fractured. >> that's a good point. >> what i'm waiting for is the new thing that emerges out of nowhere that's not steeped in -- no, no, no, it's really weather in th -- whether in this world you can create enough eyeballs. >> backwards, disney saw the

same thing you saw they put all the characters together they have them all. >> that's just it. andrew's right can you have new stars that are built when you have such a fractured viewing public >> you can with consistency. i think netflix could do that. they have consistency on series. if they start to build that, you'll be able to see that. >> lynnwood, want to thank you for coming in. appreciate your time. >> thank you. more on "squawk. this man over here, jason trennert, are you ready? >> got a letter to santa >> got a letter to santa claus we may read it aloud what he's expecting in 2020. he's going to tell us in a little bit as we take a break, take a look at the futures right now. dow up 27 points, nasdaq 7 points, s&p 500 up 1.5 "squawk box" returns in a moment. time now for today's aflac

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all right. it's time for this morning's market movers. dom chu is here and he's got what's happening good morning, dom. >> happy friday, becky we're going to kick off our morning edition of morning movers with blackberry the shares are higher by around 6% at this point the security software and services company posted a mixed quarterly report sales fell shy blackberry was helped along by more demand for its cyber security products. shares up 7% pre-market. next up you have shares of winnebago which are up 5% or so. now around 4%.

roughly 12,000 shares of pre-market volume. it posted an earnings beat those shares up about 4% then we're going to end on shares of carmax, lower by around 3%, now 5% at this stage. roughly 20,000 shares of pre-market volume. they're reporting earnings that were below consensus estimates sales were better than expected. we had weaker than expected wholesale car sales. it outweighed positive results in terms of used car sales carmax up 5%, joe. >> dom, thanks let's get back to morgan brennan at nasa with news of an unexpected issue with the boeing star liner morgan, what's up? >> reporter: this is a developing situation, joe. just less than an hour after boeing's starliner spacecraft launched from 41 behind me atop an atlas 5 rocket, an off

nominal insertion. that is what nasa and boeing are calling this it is -- it means that the spacecraft did not achieve the correct orbit. unclear what this is going to mean in terms of that trip to the international space station. the flight team though is in control of starliner it is in a stable orbit right now. assessing their options and the next maneuver, what is going to happen next with starliner right now as of now this spacecraft did not achieve the correct orbit. we'll keep you updated as we get more information. >> just so we understand, morgan, when you get into the wrong -- it sounds like it's in the wrong orbit, is there a way to move from one to the other though >> it -- that is a good question i think that is part of what's being assessed right now it is unclear what the next steps will be. it's stable. they're in control of it i would suspect that with every minute that goes by it's less

and less likely that this is going to make that trip to the i.s.s. but, again, we're going to have to see because it's still developing and there are a lot of question marks. we don't have the answer from nasa and boeing. we're going to continue to monitor the situation. >> a lot of questions. is it too low? did it not have enough thrust to get to where it was supposed to go do we know enough of that? could they always bring it back successfully even if it doesn't dock is it reusable can they still bring it back >> it is reusable. >> reporter: it is reusable. presumably that would be a step that would be taken. if it is too low in orbit, which is what seems to be the case right now. again, need more information then, yes, that is presumably what is going to happen, they're going to bring it back starliner is actually designed to fly up to ten times. >> it just doesn't seem like -- i don't know, but there would need to be obviously more thrust available and maybe they don't -- maybe they need those initial boosters. >> that or because there's no

human on board. >> i don't know. >> yes and this was an unusual flight pack that this vehicle took. the atlas 5 rocket was equipped a little bit differently it took an unusual flight path to begin with for this to happen today so, again, need to get more information but i think that's probably the reason why it's not where specifically it's supposed to be. >> what do you mean? >> it did that because there were no humans on board or because of the testing that they were running >> reporter: because of the tests they were running. the amount of power they needed with this rocket >> right. >> reporter: it was essentially, i think, initially a sub orbital flight and then moving into orbit from there it looks like we're getting tweets now from nasa administrator jim breidenstein the burn needed for a rendezvous did not happen so that is what they are working on now.

>> i wonder if there's more burn available? >> that second thruster -- >> reporter: i will get you information and let you know right now i think it's looking unlikely that this is going to be making its journey to the i.s.s. >> to bring people up to speed who weren't with us earlier this morning, today was the first trip of boeing's cst 100 starliner to space this is going to be launching via the united launch alliance atlas rocket, that's what came up from now. this launch took place just over an hour ago. the outcome of this test today would determine when it would be taking humans into space its goal is to go up to the international space station, dock there, be able to return and land on the ground it's very complicated to try to do things like that. big day for boeing big day for nasa if you've been watching shares for boeing, they were trading at $334.50 when we first talked about this the stock is right now indicated at 333.80. so, you know, decline of about

70 cents on this an important day -- >> $300 -- >> still in control of this. there's a lot riding on this. >> the 737 is what everything is riding on. >> right the focus of today, this would be -- >> is it a revenue generator to the extent that -- >> i think it's reputation that matters at this point, particularly with what's been happening. >> but probably 99% max. >> true, but it's a big day for boeing it would be very important -- >> be nice to have -- that's what we're saying. they could use some good pr. >> let's go back to morgan who has some additional news coming in morgan. >> reporter: i don't have additional news on specifically what's happening right this moment with starliner, but just to add into the conversation you're having. joe, you're completely right this is a company that very much has needed a win today while starliner is not necessarily a major revenue driver, so far boeing has been awarded about $4.8 billion in

total for the starliner development and also for the first six flights. to put it in context, last year before everything happened with the 737 max, commercial business, $60 billion in revenue. defense, space and security, $23 billion. and within that part of boeing's portfolio starliner fits so it is very much a pr situation. it's very much a broader nasa situation as well. not necessarily as material from a revenue standpoint, at least right now. >> i wonder if -- i mean, whoever does this better will get more business, i guess the competitors will be watching closely, i'm sure. spacex, right? >> reporter: yes so spacex and it's boeing. both have been contracted out to develop their spacecraft and do each -- each company do the first six flights apiece

after that it will then go to bid so there is more potential future business behind that, not to mention the fact that nasa earlier this year said that they would be looking to open up these vehicles for people willing to pay. >> you're reading through the lines, morgan. you can't see a way to achieve greater altitude given the way -- you need to do that on the initial boosters you need to get to the orbit you need to to do a docking with the space station. >> reporter: yeah. >> from where they are now, what would they use for burn or thrust to get up to the orbit they need? it's not equipped to do that i don't know do you know? >> reporter: i -- i mean, there are thrusters within the spacecraft itself. i think every minute that is going by though, it is looking less and less likely that they will be able to make it.

>> you can adjust a little thrust to get docked but i don't know if you can do more -- >> morgan, economic question for boeing i know what we think is a relatively small economic animal for boeing relative to the max and some of the other issues the company is confronting and facing right now, but how does boeing get paid for a trip like this if you don't make the trip, do you -- is there a discount do you -- how does it work >> reporter: well, remember, this is still a test flight. >> right >> reporter: but that being said, this is actually -- you're bringing up what has been basically a source much larger controversy, particularly in recent weeks, that is specifically what the breakdown of the contracts for boeing and spacex for nasa have meant in terms of not only development for starliner and in the case of spacex crew dragon but also what that has broken down in terms of

per flight per seat numbers and according to the office of the inspector general within nasa, it put out a report a couple of weeks ago that suggested that -- or that argued that the price for starliner is going to be $90 million. the price for crew dragon, a seat on crew dragon is $55 million. nasa and boeing had pretty aggressively contended those numbers but it has been a bit of a malstrom in terms of what the transparency is going to look like and what those numbers are ultimately going to look like for astronauts to be flying on each of thosevehicles. in terms of today, again, key test this test needed to go right for boeing to get the green light from nasa to be able to start sending astronauts next year unclear what's going to happen in the coming minutes and coming hours with star liner and, thus, unclear what that time line for the first crude test flight.

>> does boeing do the test on spec meaning are they paying up front for the test so that they get the business later >> they have a $4.5 billion contract spacex has a $3.1 billion contract. >> reporter: yes. >> on spec, do you still get the money if the government decides not to work with you based on the test not working how does this -- >> yes there are fixed -- they are fixed price contracts, at least in theory. again, in that oig report. some question marks around that, too. but these are fixed-price contracts, what that means is nasa has paid a certain amount of money to each of these companies. nghi additional costs incurred fall on the companies. >> do you think there's going to be a news conference with nasa at 9 >> reporter: yes. >> they can bring it back? i mean, you can imagine if we're doing this with people on board, eventually you'd like to be able

to -- even if there is something like this, be nice to bring it back and everybody is fine and you didn't hit the orbit makes me think, if you can't hit the orbit, how the hell are you going to dock with the international space -- that's much harder. once you get into the proper orbit maybe it's not that difficult. that sounded daunting to me. >> i think every part of this is difficult. >> that sounded is really daunting they don't have to do anything it's automatically programmed to dock with the space station. obviously that -- i don't know, we'll hear at 9 whether that's even a possibility you're doubtful at this point, right, morgan? >> reporter: i am doubtful but, again, we will see i think bottom line, the one thing you can count on is you will have more updates from me they will be coming sooner than later. we have the news conference at 9 a.m. i would expect updates before that. >> you wonder whether the next

flight really goes forward with humans on board after this you would think maybe -- >> if they bring it back safely, maybe. morgan, in the meantime -- in the meantime because we don't have the space shuttle or way of getting back and forth from the international space station, what are we doing? are we reliant on russians >> the russians. the russians, the soyuz. we have been paying $85 million per seat to be able to hitch a ride on the russian soyuz, that is what we have been doing for the last eight years nasa had not expected to have to keep paying for seats beyond this year and i believe the last final contract to have seats on the soyuz is april 2020. negotiations, it's my understanding, are underway to add more seats basically as a backstop, as a hedge into the back half of next year

we'll see how all of that plays out as well. >> thank you. >> thank you i know we'll be coming back to morgan very soon when we come back from break, key moments from last night's democratic debate. we'll bring you insights from a focus group that was led by pollster frank luntz here's some thoughts from last night's debates on billionaires and paying taxes >> rich people want to protect their wealth that's their number one priority. >> so if i'm a -- >> there's ten billionaires that want to keep their wealth and make more wealth look at donald trump. >> and not pay taxes on it. >> exactly. >> it was brought up many, many times. it's surprising that doesn't connect more to people when they have to pay taxes. >> if you veha 1,000 million dollars, you have a hoarding problem. no one needs a thousand million dollars.

welcome back to "squawk box. democrats facing off last night at the debate stage in los angeles. joining us from l.a. for some debate analysis is pollster frank luntz who held a focus group during the debate in real time he joins us with his proprietary information. you're going it see on screen how the focus group responded to key points in last night's debate so let's get to it. before we begin, what was this -- the big take away in terms of what your focus group came away with >> there were 25 participants. six of them walked in there supporting bernie sanders, 14 of

them walked out saying that he was the big winner of the debate i think you're going to see continued movement sanders has been gaining in california over the past two months this "los angeles times" focus group -- by the way, you can see the entire focus group if you download the latimes.com app you can see it unedited. it was a big night for sanders and a disappointment for the other candidates. >> let's go through the issues and show our viewers what took place with your focus group. a key theme was the economy. here's a moment in which former vice president joe biden was asked about running against the trump economy. >> i don't think they really do like the economy go back and talk to the old neighbors in middle class neighborhoods you grew up in middle class is getting killed we have to eliminate these god awful tax cuts given to the wealthy. we have to invest in education we have to invest in health care we have to invest in those things that make a difference in the lives of middle class people

so they can maintain their standard of living that's not being done. and the idea that we're growing, we're not growing. the wealthy -- very wealthy are growing. ordinary people are not growing. they are not happy with where they are and that's why we must change this presidency now >> frank, tell us what we're seeing on the screen here because obviously there's two lines. you're seeing an mod and you're seeing a lib what does it all mean? do a little description for us first. >> yes first, moderate. mod is moderate and lib is liberal. the higher the lines climb, the more favorable the response. the goal is to get them to come up joe biden was scoring 90 among both, moderates and liberals that was the best moment of the entire evening and that is a very powerful argument for democrats. if they just talk about the economy or the stock market, they will fail but if they focus on the

day-to-day concerns of day-to-day middle class hard-working taxpayers, they have a shot here to challenge donald trump even though the economy is so strong. >> let me show you another clip be as well this is mayor pete buttigieg and senator elizabeth warren they got in a pretty heated exchange over campaign donors. >> we made the decision many years ago that rich people in smoke-filled rooms would not pick the next president of the united states. billionaires in wine caves should not pick the next president of the united states. >> mr. mayor, your response? >> you know, according to "forbes" magazine i am literally the only person on this stage who's not a millionaire or a billionaire. so if -- this is important this is the problem with issuing purity tests you cannot yourself pass if i pledge -- if i pledge never

to be in the company of a progressive democratic donor, i couldn't be up here. senator, your net worth is 100 times mine >> that's pretty powerful. you notice that the lines came down there >> right. >> two points. >> who won that then >> elizabeth warren won it because mayor pete was seen as attacking her. it is a legitimate issue in fact, a very strong issue among democrats. get money out of politics. don't be in the pockets of millionaires and billionaires. >> vote for bloomberg. >> well, hold on but democrats don't like it when they go at each other because they think that it's going to help elect donald trump. and the second point is that that fund-raiser itself was unseemly and our voters in the la times focus group were angry at mayor pete for holding the fund-raiser in the first place. >> we have bernie sanders addressing the trump economy several times on the debate stage last night

>> trump goes around saying the economy is doing great you know what real inflation accounted for wages went up last year 1.1% that ain't great today in america we have the highest rate of childhood poverty of almost any major country on earth more income and wealth inequality since the 1920s we need an economy that works for working families >> so nothing new there. >> nothing new, but you think he's the winner of the night >> i don't think he's the winner of the night the la times group said he was the winner of the night. for two reasons, he had passion. and number two, for the first time they're starting to see him as having the capability of challenging donald trump on the debate stage i want to remind you, these are democratic primary voters, not the center of the country, obviously none of them voted for donald trump, but they now see bernie sanders as being ashl to

take the argument directly to donald trump and that's why he's been rising in the california polls and that's why he won last night. >> frank, let me ask you you're obviously polling people in los angeles, in california. we know what that state looks like it seems to me -- i don't even think it seems to me, it seems to everybody this election is won or lost in a handful of swing states in the middle of the country by a handful of independents that have yet to make up their mind and to the extent that you can predict or through implication the folks that you were speaking with, what's the real take away after last night >> the real take away is not who wins in november, it's who gets the democratic nomination. and i would have said to you say 30 days ago that i don't think bernie sanders is viable in the 2020 campaign. after listening to these voters in california with more delegates than any other state in the country, i think bernie

sanders has a good opportunity, a good chance to win the primary. and if you win california, you get such a huge share of the delegates now that kamala harris is out. >> how do you rank things right now? >> i can't and i said this to you a week ago for the first time in my professional life, i can't call it i know i did about 30 or 45 days ago. it is now too close between sanders, warren, biden and buttigieg. all four of them are completely deadlocked and so we don't know ending 2019 who is the front-runner anymore >> joe mentioned mayor bloomberg just a moment ago. he was interviewed by stephanie ruhle aired on nbc news. where does he stand? is there a way to measure or judge his ability to jump on the state? >> way to buttijudge it? >> there are only a few willing

to vote for bloomberg. spending $100 million on advertising is not a positive. even if you're self-funded and not depend dent on billionaires, that still doesn't matter to most democrats. >> sounds like you're changing on that, frank i thought you said bloomberg was formidable i said he was a billionaire. is it not happening? or you haven't changed >> not for california. let's be precise here. mike bloomberg -- the mayor has credibility and he has the capability of outspending all the other candidates, but california is a progressive democratic state >> yeah. >> it is overwhelmingly, the governor, the senate, the house, the legislature is overwhelmingly left and it is not a great place for bloomberg. there are other states such as georgia and texas where the former mayor is going to do better than california >> i want to talk about the

rocket again okay just some other stuff. >> have you seen the news? >> joe, i actually got you speechless that's a first. >> no, you didn't. kn no, no, no, no, no this is physics and we can actually talk about it without conjectu conjecture this is about the rocket the centar, it worked, it separated 51 minutes after takeoff but then at 31 minutes they had four thrusters that were supposed to go off to put it into the right orbit. they got it up to an initial suborbital level but four boosters didn't go off. >> if there were humans on board would they have been able to change >> and maybe do the thrusters? but it suffered an off -- >> but that's the big question. >> things that could have been corrected if there aren't safety issues >> they put it up to a certain

level so that it would have been safe to abort and they left it there. >> we're going to talk about this in just a moment. >> okay. >> thank frank who woke up very, very early on the west coast did you ever even go to sleep? >> yes, i got precisely 31 minutes of sleep this morning. >> happy holidays. always appreciate your perspective in time. look forward to seeing you again soon. coming up, what's 2020 going to look like for washington? we'll talk to fred kemp on what investors can expect from trade, impeachment and more plus the latest on the launch of the spacecraft which has not achieved the proper on by the after an off nominal on by th l -- orbital insertion.

a long-awaited trade deal caps a wild week in washington just a day after impeaching president trump. just how big an impact is the grounding of the 737 max we have new data youneed to hear. and feeling the love the ceo of iac joins us to talk about its match group spinoff and the business of finding your soul mate. the final hour of "squawk box" begins right now.

good morning and welcome back 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 our guest host -- thinking about wine cave. that's going to be in the oxford english dictionary term for the end of the year i think. have you been to win >> napa valley. >> have you been to one? >> yes. >> sounds good to me is there cheese and crackers and brie >> apparently. >> it was decorated up. >> now we're trashing wine caves. has it come to that? our guest host -- >> we don't even recognize the country anymore. >> no. where are we where wine caves aren't celebrated?

our guest host is jason trennert u.s. equity futures at this hour, what do you need to say? again, here we are every morning. it's 54 points today on the dow. the new high up would be new highs. s&p up 5, that would be a new high and nasdaq indicated up about 20, as we watch the machinations down in washington, d.c., the market just goes higher i'm not sure about the economy i'm not sure that's the way to go for the democratic debate. >> the argument? >> yeah. i hear what they're saying, but you do need to look at, you know, the previous eight years where we -- i mean, we're at least getting some light at the end of the tunnel in terms of wage gains. >> i think the reason they've -- >> if you don't like this, how do you feel about the other eight years? >> it's looking at places that got left behind. >> i know. >> can we ever solve that though

in a two or three-year period? >> i don't know. that's going to be the question. >> trying. >> ohio and wisconsin. >> trying to chip away at it trying to chip away at it and the bottom and middle are doing better than they did at any point in eight years. >> what he was able to do three years ago was to find the people who felt like they had missed out on the economic opportunity that had come along. people who used to have good jobs those jobs had gone away that manufacturing had gone away maybe that's what the democrats are trying to do >> at 3.5% unemployment where there is some mobility between jobs and you're not so worried about leaving one, that you won't get another, i just think that, you know, we're headed in the right direction, wouldn't you say? >> i just -- in the old days -- >> i have two people who have -- >> i would say republicans were the party of capital and democrats were the party of labor in my opinion -- >> i'm disqualified because i'm not struggling to talk about

objectively economic issues in this country because i happen to be -- you're in the same position you have no problem talking about it and opining about it all the time. >> no, no, no, no, no. >> what are you saying, i can't say that there are gains being made at the middle and low end because i'm at the high end so i can't comment on it? i have to recuse myself. >> we've got some news why don't we go to the news. >> we are getting news of a problem with the rocket test launch that we saw earlier this morning. that was the launch of boeing's star liner crew capsule. phil lebeau joins us from chicago but before we get to phil let's get to morgan brennan. she's been standing by on the scene and she has an update from the kennedy space center in florida. morgan. >> reporter: becky, that's right. i think the details and the full update on what the plan is expected to be for star liner will be happening at 9 a.m. eastern at the press conference that was scheduled prior to this situation, prior to this event emerging it's still going to happen now nasa cut its broadcast of the

flight actually while we were talking last off nominal insertion, that is the term for this. basically boeing's star lineer spacecraft did not achieve the correct orbit to achieve rendezvous with the space station. right now the space station has control of starliner it is in stable orbit. it's in stable orbit with electrical power assessing the situation, troubleshooting right now. we're still pretty light, as i mentioned, on the details. however, this is what we do know so far liftoff happened as was planned, as was expected at 6:36 a.m. eastern. you guys saw that happen alongside me atop an atlas 5 rocket which was made by united launch alliance. the dual engine centar did separate from the first stage as was planned about 4.5 minutes after liftoff.

star liner then separated from centar about ten minutes later having been placed into a suborbital trajectory. it was designed for safe aborts of starliner for ascent. it seems to be, we're still light on the details, where the issue seems to have happened with starliner specifically where its thrusters for orbital maneuvering and control were expected to fire 30 minutes after liftoff to take the spacecraft into an initial orbit. it does not seem that that burn happened as was expected but, again, we don't have anymore detail beyond that however, it does seem like this was specifically an issue or is an issue with starliner rather than, say, ula, which is that joint venture rocket company venture between lockheed martin and boeing we will bring you more details,

more updates once that press conference gets underway at 9 a.m. eastern though. >> starliner has its own thrusters for altitude and control thrusters. >> yes. >> that's interesting. maybe they can turn those on, who knows, morgan. >> we will see >> it's not dependent on the previous boosters that are now gone >> reporter: no. >> the starliner itself has those. >> reporter: yes. >> and that's not a ula. so that's specific to starliner then >> reporter: yes this is specific to boeing but, again, we need to get more details and right now we're -- we've been told that they are troubleshooting. if -- i don't know how this is going to play out but i would be doubtful that this is a spacecraft that will make its way to the i.s.s it's probably more likely that they are looking to see how they can land it. >> morgan, stay where you are. >> reporter: we'll see. >> i want to bring phil lebeau into this conversation for more on how important this space program is for boeing and you

have been covering boeing for quite some time here, phil >> reporter: sure. it's got huge implications for boeing morgan's right we need to see how this plays out. this is not a catastrophic failure for boeing it certainly isn't one you want to have especially when you have a liftoff that is televised. you have everybody focussed on this this is part of the future, a big part of the future for boeing dennis muilenburg has talked about the importance of starliner and also of boeing's space program over the next 10 to 15 years for this company so the interesting thing here is what kind of implications does what happened this morning and how this plays out have for the long range program when it comes to space and space exploration, space tourism for boeing still too early to know. i don't think we're going to see much reaction from shares of boeing because, again, this is not -- as troubling as the situation is if you're watching this if you're boeing, this is

not something that is going to be impacting the bottom line however, it's going to get a lot of attention sure, you're going to have some people look at this and say, here we go, they've got another problem at boeing, completely of separate. >> before they were talking about the brouhaha over these contracts. these are fixed contracts. as you said, there is no direct economic impact today since it's already paid for but i imagine it must go to future contracts in terms of how these things play out? >> i would imagine i would imagine. i don't know for sure, but typically that's how these things are structured, that it would go to future contracts look, that's part of what -- you know, it'll all be hashed out over the -- you know, depending on what happens with this particular launch and as morgan said, they're still trying to figure out exactly how this is going to play out. then they'll make the determination in terms of what communications are for the contracts. >> a flash hit it's in stable orbit the team is now working on next steps to correct its altitude

before they can put it into the correct orbit. >> reporter: right. >> we may look back. we may look back in a few hours or in a few days and say, it wasn't the optimal launch but they were able to direct. >> we thought -- i don't know. we know nothing obviously, so what else is new but we thought if the centar is gone maybe there's not enough thrust but the starliner has the four thrusters to get it to the correct orbit. maybe it's not bringing it back down. >> no human is on board. >> do they ever fly anyway >> my guess would be that if something went wrong they would have the ability to have -- >> thruster switch. >> i can't imagine you would put them up there and they wouldn't have a manual override >> phil, a different question. what's the role of a dennis muilenburg in something like this is he in florida when something like this happens? is he part of this

>> you know what's interesting, i was discussing this with somebody the other day i asked and have not heard if dennis muilenburg is down there, but he's had a keen interest not only in starliner but in boeing's greater emphasis on space exploration, space tourism. boeing has made this a big point of saying to the investment community, we're going to be a big player in this this is not just the world of spacex and some of the other major players here, we're going to be a big part of this given everything that's going on at boeing, i wouldn't be surprised if dennis muilenburg is not in florida. guys, you and i both know, if he were to show up at a press conference, it's not like he would have questions about star liner. even if this was a perfect launch and no issues, it would immediately evolve into let me ask you about boeing airplanes dennis muilenburg doesn't want to be dragging that into every other thing. >> phil and morgan, thank you for that reporting

i know we'll be back to you. well, it's an understatement to say that it was a big week in washington we saw the third impeachment of a president in u.s. history but also the approval of the usmca deal in the house and passing a spending bill to keep the government running joining us to talk about d.c.'s 2020 agenda and how it will impact wall street is fred kemp. he's atlantic president and ceo and cnbc contributor fred, let's go through where we stand right now. probably not enough attention being paid on the idea that spending bills were able to come together between the house and senate and the president is expected to sign that today. it's the last day he can to keep things running at the government didn't really give it too much attention this week and we probably should. >> well, i mean, it's interesting. i've been looking at headlines across the world, and very few are putting the impeachment on their front pages. it's interesting that you're talking about space because a lot of people are just looking to see whether america can

actually maintain its level in the world in terms of innovation, in terms of global leadership, in terms of -- will 2020 be the year of the indispensable nation being indisposed because it's so inward focused and other things are moving on? you are right. there are other things getting done usmca got done in the house. it will go to the senate and will be voted on next year you have a phase one trade deal, although i've been skeptical on this program before that people aren't looking enough at the fundamental breakdown between china and the united states. the decoupling which is a more important story while the markets still seem to look at phase one. don't bet on phase two or phase three before the end of this administration you can look at this as half empty, which is a shock prone year coming at us with the united states distracted internally and our adversaries protecting us and allies hedging

their bets or you can look at it half full. all things considered, the economy is pretty good health care, technology, education, more access to that than we've ever seen in our lifetimes. i think it's actually -- i'm looking at this as a more half full than a half empty. >> you know, with the impeachment hearings that have been taking place, both sides have had some sort of reason, some sort of motivation to actually work together to make it look like they are doing things and not just, you know, shooting at each other through all of this. next year do you think it becomes much more difficult to pass any sort of legislation >> well, i think two things. first of all, i think it becomes more difficult to pass legislation and secretary of all, you have volatility that will test markets and leadership iran is one i'm particularly watching because their economy is going down further and further. they may test some things more

if you think the 2019 was a little bit volatile with iranian missile hitting a saudi oil field, with impeachment, with the u.k. pulling out of the e.u., my prediction would be that 2020 will be an even more volatile year with the u.s. taking its eye off the ball. domestically it will be tough to get through. internationally it will be very tough for the u.s. to continue its global leadership. i think thechinese particularl will test that and try to expand their own around the world. >> thank you >> thank you. some economic data that wall street is going to be watching closely. the final read on third quarter gdp due out at the bottom of the hour stay with us still to come, big bank stocks that could spell success for your 2020 portfolio. with financials this month finally closing above their pre-crisis levels, which names

are poised to lead the charge higher a top analyst weighs in with his picks just ahead stay tuned "sawbo wl rhtacquk x"ilbeig bk. ♪ ♪ ♪ ♪ ♪

welcome back to "squawk box" this morning bank stocks have been on a tear this year. in fact, financials are one of the best performing sectors in the s&p 500. up nearly 29% since january 1st. we'll pretend that december, by the way, didn't happen to make that sound better than it is our next guest calls it a year of resilience. joining us with his topics in the group is mike mayo managing director at wells fargo. now a part-time tech analyst he's dressing the part so it's nice to see you. >> thanks for having me. >> is it fair to say this was a great year for the banking business or bank stocks in particular or should we actually try to include november and december in that calculus? >> well, you just played the rocky theme song. >> i know. i know. >> sylvester stallone will be in a facebook ad on super bowl sunday >> oh, yeah? >> tech news

you're in the tech business. >> it's timely you had spotty growth. you had three fed rate cuts. you had the worst yield curve in a decade and the largest banks came through by 10%. so the resiliency, just like with rocky, you take a lot of punches, you get scrapes and bruises and you come through it strong bank stocks in 2019 were like rocky balboa. >> what's it going to be in 2020 and has the run run out? >> no, this is a multi-year theme. >> okay. >> so to pick another character, david and goliath, goliath is winning. here is the one statistic that you need to know about bank stocks in 2019, which we think continues into 2020, and that is the three largest banks, citigroup, bank of america, jpmorgan increased by 45% in 2019 that outperformed the s&p 500 and the top 50 banks by 15 to 20

percentage points. so talk about goliath is winning. goliath is really winning. i brought my david and goliath >> excuse me, priced for perfection in 2020 at this point? >> absolutely not. fine, we will recognize that 2018 was not a great year for banks. some of this was a catchup from the under performance last december and last year absolutely not i think what's under appreciated is this multi-year theme related to technology. a lot of people are watching the waves lap up on shore. they look at net interest margin down 3 basis points or loan growth slowing meanwhile, you have the megatrend that takes banks to the best efficiency in a few years. >> i would say for whatever it's worth, i very much agree with mike it may be more for more prosaic reasons i am watching the interest margins now you have the 10-2 spread

which is as wide as it's been na a year from a valuation it's hard to say they were priced for perfection. >> you liked the top three do you still like the top three? >> top three, citigroup. >> right >> i love the fact that an activist is in the house yesterday they said they're going to stay in the house for two more years they can still go for a board seat in a year behind the scenes they're pushing management to do better. bank of america, what a great fin tech company in bank they've doubled mobile banking in the last five years they're doing amazing things ahead. jpmorgan, best in class. we were to add to that group especially in the short term, goldman sachs is having its first investor day in its 150 year history, january 29 that's the first time they show what's happening behind the scenes you get to see management. you get to see talent. by the way, one of the greatest off balance sheet assets at

goldman sachs is their culture we get to see their culture up front and center. >> where does wells fargo, in your situation, land we had bill daily on the 6:00 hour who's now the vice chairman, head of public policy. >> that's the one bank i don't cover. if you want to see what i think about the ceo, you can look at cnbc.com, hugh thone did a huge piece two years ago about what made jpmorgan successful >> you wanted to comment on that. >> mike, let me ask you about in terms of organic growth, the velocity of money has continued to decline do you see much in the way of lowering credit standards to spur more loan growth? because it seems to me credit standards are still pretty high obviously because of some of the capital restraints is there more to go perhaps on that side? >> well, that's part of the main theme from the banks i mean, remember at the start of the decade i was calling to break up the banks, all right? we were saying banks were a mess, they should be broken up

banking regulators were ensuring stronger, more resilient banks and so banks better not be lowering credit standards to get growth, and that's one nice thing about banks. banks are managing for returns, whereas, before the financial crisis they were managing for growth you have to like not lend a little bit extra, that's just fine. >> mike mayo, thank you, happy holly case. >> thanks for stopping in after the rave have you been to bed yet >> when we come back, we are starting to quantify what the grounding of the boeing 737 max has meant tort three airlines that fly that plane. have newdata to share with you. we'll be right back.

coming up, breaking economic news third quarter gdp data is out in a few minutes and we're going to have it for you after the break. stay tuned, you're watching "squawk" on cnbc

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welcome back to "squawk box. rick santelli with the beginning of the last breaking news of the week this is our third look at third quarter gdp. last look 2.1, unchanged remains at 2.1 holds onto the 2% plus handle. consumption a big driver obviously of the u.s. economy. 3.2. now this really is a jump. we went from 2.9 to 3.2 on consumption. that's very good news. the price index, all lateral based on expectations and rear-view mirror 1.8 on all three

finally, the personal consumption expenditure quarter over quarter up 2.1. same as the price index, 2.1 in the front windshield and in the back all things considered, this is a very solid number. we don't expect the third revision to have huge movement we're still above 1.90 in a 10 but if you want to break the notion of the recent double tap we have to close above 1.95. a big topic in the equity markets and the dollar equity markets looks like it's coming into another dollar market we'll have personal spending and the university of michigan coming up. >> back to you >> rick, stick around, steve liesman is here. he has some thoughts on these numbers. >> i don't have a lot of thoughts. >> never mind. >> rick's right to flag that consumer number doing a little better business investment numbers and equipment all did a little less worse than originally reported except for the intellectual

property that was a little bit unchanged. if i could get to jason. he's got an interesting idea here that this is the bottom here we've troughed out in terms of this slowdown. what is it, first quarter 2020 you think is the bottom? >> for the u.s i think global growth probably bottomed if you look at bloomberg or citigroup economic surprise, those bottomed in august i think the market has been telegraphing that. to me the big weakness in 2019 was largely -- it was due to the trade war but not because our trade deficit widened dramatically it was largely because it hit business confidence and capital spending. >> let me give you some numbers. equipment spending, minus 3.8. business structures minus 9.9. minus 2.3 overall. that number you think comes back >> to me, capex comes back the tax cut was very supply side

oriented tax cut meant to stimulate capital spending it did last year, it didn't this year some people like larry somers and paul krugman are counting it out. they said it was a sugar high. i don't think it was a sugar high once you got phase 1 done, capex should come back. >> what i've heard a bunch of economists say, you've done some damage to the psyche, uncertainty with the business investment that's got to play out through the first half you don't have business change on a dime like that. in the second half you can see it. >> maybe i do think at the margin also the election will have some impact i think depending on who the front-runner is on the democratic side we'll see. you know, this could cut both ways if it's a particularly worrisome democrat, you could actually see people drawing capex into 2020 in fears that the tax cut will be -- >> austin's i'm sure listening i want to go to him. joining us now, michael strain,

american enterprise institute and austin goolsbee. the reason i thought about you, austin, was listening to jason you asked where is all of the growth that we were promised from the tax cuts, and i wonder if jies son answered that to you, that we saw it at 2.9% last year then the trade war with china that you didn't like at all. you don't like the tariffs maybe domestically it helped consumers and it helped unemployment getting it down to 3.5% but maybe the trade war dampened capital spending, which is what you were looking for, and that explains it would you reverse the tax cuts would you do that if you -- would you advise the democratic candidates to run on that, austin to reverse the tax reform? >> yeah, some of them. i hope you're right, joe. >> that's jason. it's him >> jason's idea.

>> i still owe you lunch or dinner or whatever so i'm not going to -- >> that's true that's true. you still haven't paid me. >> yeah. >> but i'll still wish you a merry christmas. >> i can buy you lunch in chicago. i can give you my credit card. >> you should. >> i'll take that number >> for all of the things you owe me over the years. >> you don't call me when you come back here anyway -- >> if you look at investment, investment's a negative number i hope that's just from the tariffs. now the tariffs were a very large tax on the american consumer that's who paid the tariffs. that's what the data show. so that the consumer has remained the strongest part of the economy, a, makes it seem like maybe it wasn't -- this wasn't about the tariffs, but it's at least a strength we have a weird two economies. the manufacturing, business investment and if you look at the growth rate, those all look weak if you look at the job market, you look at the consumer, those

look quite strong. so the story of 2020 is going to be the thing of which of those two economies is going to prevail. >> and whether the market is up on the fed or up -- out over its skis, the stock market i'm talking about. >> yes yes. >> do you agree with that, michael? >> i agree with a little bit of it i think the consumer is holding up this expansion and is remarkably strong. i obviously agree it is weak the tariffs hit the consumer but the tariffs also hit businesses because of the uncertainty that has been created about the future of trade policy and that has had a major dampening effect on business i don't see how president trump can credibly signal to businesses what the future of the trade war is going to be one week we think the tensions

have all eased the next week the president wants the tax import from france i think it's very difficult to know add to that the uncertainty around the election. depending on who wins in november, the future course of trade policy and of the trade war and of globalization is going to look a lot different. so i expect business investment to be kind of weak for some time to come here even if the consumer continues to keep this expansion going. >> i might -- >> both points, i might take a little bit of an issue at that where democrats and republicans are on the same page is with regard to china. i think candidly, the democrats in terms of what they're focusing on are more anti-china than the republicans in my opinion, justifiably so. but in many ways though i think a lot of companies have already started to duel source their supply chains. the damage to china has already been done. you're never going to go back to the status quo ante.

donald trump has changed that and it's not coming back. >> austin, you think that it's not going -- the voters aren't going to be focused on the economy in 2020 because half are -- >> i think that's right. >> half hate trump, half love trump, but what about the independents in the middle that might -- or the swing states, you don't think that the economy could be a positive in some of those areas? >> in some of them it will be a positive in some of those battleground states the economy's not great because of the manufacturing weakness -- >> right. >> -- if you look at wisconsin, michigan, pennsylvania, the economy's -- it's not a big negative but it's not a big positive now the only thing that i would like to correct is we need to constantly refer -- when we refer to president trump, let's call him impeached president donald trump because i think that will make joe angry and -- >> i thought you had -- some people think you need to send the articles over.

you keep the ad back >> half a point. if we argue it all year, instead of 2% growth you could be talking about 2 1/2 percent growth i'm going to ask jason are there any names of companies you would play if there's going to be an investment renaissance in the country >> i'll say in full disclosure, i don't make stock picks i did buy some fedex earlier this week. >> fedex is an investment. >> it's levered to global growth as i said earlier, i like the cyclicals to play a big increase in global growth so industrials, technology. >> what about the consumer the consumer has been really strong i don't know if they can keep it up. >> the savings rate for the u.s. consumer is 8% this is a strange cycle because you -- you know, unemployment

rate is low. >> sorry joe my last macro for 2019. >> all right thanks austin, you're on fox so much that other -- you figure you ought to commit -- you're a token over there you do the impeach trump you don't have to do that here i don't think. we're not hemming you on just to represent that side of things. you can be more fair. >> austin doesn't need hemming on. >> i always refer to impeach president donald trump but for today i will >> i thought you were coming on to talk money and the economy. that's just -- that's just blatant. michael strain, thank you. austin goolsbee, i'm here. i'm here i never have plans for lunch. >> you still owe me. you owe me. >> i thought you were a man of your word. >> joe, i'll take that credit card number. i've got some christmas presents to buy. >> maybe a gift card, michael. maybe a gift card. meantime, we've got a news

alert to bring you now iac is going to be acquiring care.com for $15 per share in cash it compares to yesterday's close of 13.21 it provides a platform for matching families with health caregivers isc said it would be spinning off all of its shares in match.com. we're going to speak with the ceo of iac in an exclusive interview coming up in just a couple of minutes as they transform that company that barry diller calls an anticonglomerate. two breaking stories on boeing the fallout on the flight cancellations and a problem with the rocket test launch of boeing's starliner that we just saw live right here this morning. an update from cape canaveral. all of that straight ahead you're watching "squawk" on cnbc don't forget to subscribe to our podcast.

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welcome back, everybody. we have two big breaking stories on boeing this morning phil lebeau has numbers on the 737 max cancellations but we begin with morgan brennan. she is covering the company's

starliner spacecraft and why it may have failed a key test morgan >> reporter: and the why part and what that means now are still i think the biggest questions that are being debated and remain to be seen. we are getting a press conference in just a short while here at 9 a.m. eastern more details are expected then meantime though, a statement from boeing on the situation saying the spacecraft, the starliner spacecraft that launched from here just across the water from here at cape canal rk canaveral where it didn't achieve rendezvous, the statement saying that the spacecraft currently is in a safe and stable configuration. flight controllers have completed a successful initial burn they're saying boeing and nasa are working together to review the options for the test and mission opportunities available while the star liner remains in

orbit. getting it looks like a tweet from jim bridenstine, the administrator of nasa. i'll pull that up. i'm juggling phones. also calling this an anomaly ahead of the press conference and saying starliner had a mission elapsed time anomaly causing the spacecraft to believe that it was in an orbital insertion burn when it was not. we are going to be getting more information here in just a short while. again, a developing story given what was an historic launch this morning for boeing's new starliner, part of nasa's commercial crew program. this final test or it was supposed to be this final test before astronauts are supposed to fly on the star liner early next year. unclear what this is going to do to the time line again, looking for more details on what happens next with starliner which is stable right now and under control with

flight controllers >> morgan, thank you we'll continue to follow the story. in the meantime, more news for boeing this morning. phil lebeau has new numbers on max cancellations. what can you tell us >> reporter: you brought up is dennis muilenburg down in florida for this launch. he is down there whether or not he shows up at this press conference, people i've talked with have not said anything clearly they've got a lot of things on their plate with boeing dennis muilenburg is down there. i'll be interested to see if morgan is able to corral him when this press conference takes place if he is at this press conference let's shift back to max. we have new numbers showing how many max flights have been canceled by carriers here in the united states. the big number, 137,000. that's from march 13th when it was grounded all the way through the spring dates when the airlines are expecting to bring the max back on to their schedule just as' reminder, you have

southwest and american who have moved it back to april restarts with their companies in other words, that's when they expect to fly it again we have not heard from united in terms of whether it is going to move back its date don't be surprised if that happens. a breakdown of the three airlines, here's how it goes in terms of the maxes that they have and how many flights that have been canceled southwest has more maxes than any other airline in the world 60,000 flights canceled. american just under 50,000 there you see united at 28,000 shares of all three companies increasingliey the airlines are saying we have been able to manage our way through it and we'll continue to manage our way through it it is certainly not helpful and gary kelly is the most vocal of the three ceos, but none of them are happy about this situation guys, if we get more numbers on the max, we'll let you know about that. >> phil, thank you for that report >> you bet. meantime, yesterday we reported that iac will spin off dating giant match group 24 hours later iac's ceo is

here they're acquiring care.com he's here at the table with us now. this news crossed about 15 minutes ago? >> yeah. pretty exciting. >> this is sort of the next chapter. we were talking about the anticonglomerate that barry likes to talk about. this is the next piece of it. >> this is it. we think it's a huge market. 300 billion for the market. >> care.com is >> care.com matches people looking for care for their home, whether that's child care, senior care, nannies with caregivers there's about a million active caregivers on the platform right now and something like 3 or 400,000 families, active, paying subscribers looking for caregivers. >> what do you think you can do for the company? >> first of all, they've done a nice job with the business in terms of it's been growing for all of its history a couple hundred million dollars in revenue already, profitable already, and we've done a lot of

things with marketplace businesses where we sort of know how to build i think supply and demand at the same time. and that's through things like customer acquisition, through things like product. we're going to invest in all of those things in this business and that i think is most interesting is -- this is something we're doing at angie also, is starting to go more toward on demand and transactional. not just showing people a list and giving people a list of care providers who may be available to do their job, but helping match them and bring them together and make that transactional on the platform. >> same sort of matchup you do for a dating site? what kind of questions would you ask, how would you match them up >> it is more availability, qualifications, things like background checks, but really right now it is hard to match exact schedules, for example so saying exactly i need somebody tuesday 8:00 p.m. to 11:00 p.m., allowing the platform to give that information to both sides so they can connect, yeah. >> talking about background

checks, wall street journal reported back in march you probably know about this, these nine instances over the past six years where caregivers had police records and so the question i this ha had is what o to try to prevent that >> safety will be a top priority for us, it is on all of the platforms. got to do things like background checks and give tools to both sides of the marketplace to make sure people are safe >> from a valuation perspective, you look at this stock, i don't know if we can get care.com going back a little over a year, maybe 18 months or two years, you can see it was even higher than where it was where you're buying it at can you explain what took place over the past period >> probably not because we weren't operating it or -- >> i'm sure you thought about valuation and therefore looked at where it was just about 18 months ago or less, and where it is today. >> yeah, look, i mean, the wall street journal story, you pointed out, definitely was a hit to the narrative and i don't

trade stocks, i don't follow closely why it goes up and down, but we look at where it is today, and we think that's a pretty attractive entry point to get into a far and away number one in the category. >> in terms of the model you built, bringing companies in and then ultimately hoping to spin them out, to the degree there is a secret sauce in this, how much of it is about putting your own management in. one thing you're doing is bringing a new ceo into the company. what else happens? >> there is a lot of learning, so, for example, tim can ver easily in ways that sort of care on its own can't, tim allen will run the business for us and he's worked with -- for i don't know, more than 15 years, he can call all the other leaders in marketplace businesses or that of marketing or that of customer acquisition or conversion or optimization and say, have you tried this thing yet, have you tried that thing yet, and do it in a very open way you can't do with an outside company.

you can't just give them all the data, all the history in that sort of unfettered access. >> can you take any of the technology, the behind the scenes stuff from one platform and translate to another. >> not really. we try not to do integrate technology at all. we really never have but things you've learned in technology, which is, you know, we're deploying this tool as it relates to measuring lifetime value, you can try also deploying this tool, not the same one, but how do you build it, how does it work, what are the metrics that go in, the inputs the partners you work with on that. >> this in particular is an area where there is so much need, it is also one where i can't think of a more sensitive situation. i try care.com eight years ago when i had my son, didn't have a great first experience with the person i got hooked up with, nothing against care.com but if you can find a way to crack this, to give me more information, to let me feel safer about it, to find people who are close by, all of those different metrics, i mean -- >> a nanny situation is

impossible. >> there is nothing more -- >> i'm glad i'm beyond that. >> elder care is another. >> yeah, maybe elder care. >> in terms of additional acquisitions, you've done bolt-s on over the years. once you get into a market, sometimes you're adding other pieces to the pie. what should we be expecting in terms of you now have some cash, this result of what has been taking place in terms of spin-off, what is going to happen >> we're always -- always have and will prioritize our cash to add to our existing businesses this is a big step for us, it is a totally new category this is really a totally new business for us. and we're going to prioritize adding to those existing businesses for sure because we can be better when we know the business we can be better when we have been in the category for a while and i think we can have information advantage relative to other people in that category when we're adding to our

existing businesses. >> okay. joey, thank you for being here congratulations on the deal. >> thank you. down to the new york stock exchange, jim cramer joins us right now. jim, any thoughts about boeing just the news we have seen -- >> first, i want to know, joey, are you coming to the restaurant this weekend i'll wait on you personally. >> we'll see i saw jim in the pouring rain, i could hear his voice, pitch black portion rain underneath an umbrella, i could hear his voice from a block away. >> distinctive, very identifiable. >> joey's the best look, boeing is -- what can i say? whatever they touch just turns to mush. it is unfortunate because the one thing i would say is that it is going to be -- this sounds silly, a buying opportunity for these institutions who can't stay away. they're just un -- they just won't stop they know these things will be fixed at some point and when they're fixed at some point, the

stock will go around being a great stock again. it is great headlines in terms of journalist. but, becky, it doesn't seem to matter, the stock has done better than many other stocks in the s&p. >> right, right. >> like 70 other stocks doing worse than boeing. >> and, by the way, the s&p, the dow, the nasdaq, all doing incredibly well. new records once again yesterday. continue this march towards the end of the year, looks like it is a march trade uphill. >> i watch the debate last night, and the democrats seem to be united in thinking that trump is too close to china. >> yeah. >> joe, joe, did you hear that not joey, but joe, if trump wins, they're going to blame it on china, putting ads in facebook >> i missed that last night, jim. >> you got to go get it, where they blast trump -- >> do you remember the guys like that and they got -- strapped in

his chair. would take a lot of money. >> china's against the climate trump is -- >> i can't wait to -- i'm leaving out of here, going straight to the -- do you have a wine cave at your restaurant i want to go to -- >> i googled wine cave to figure out which one, to give my wife a christmas present. i want to go to that wine cave and, joey, i think there was a great idea to do care.com. >> see you at 9:00 thanks >> okay.

welcome back to "squawk. breaking news, the department of justice and the fcc planning to file a statement this morning in the federal trial of t-mobile and sprint advocating for the rejection of the minority of state ags and their arguments to block the merger jason, thank you for being with us meantime, want to hand it over to the folks at "squawk on the street." ♪ ♪ good morning, welcome to "squawk on the street. i'm david faber with jim cramer. we're live from the new york stock exchange