it is 5:00 at cnbc global headquarters your five at 5:00. investors hoping for another santa rally as stocks push further into record territory. fall out over at boeing. reacting to a change at the top of the defense giant under investigation, one of europe's top automakers under new scrutiny sacrificing safety for speed. a new investigation sheds light

on the systemic problem for amazon's delivery network. and what shares of tesla are doing for the first time in history. all of that as "worldwide exchange" begins right now ♪ good morning welcome to the show. i'm dominic chu in for brian sullivan let's talk about what stocks are doing on this abbreviated trading day. dow is up by 17 points s&p at 1 and nasdaq around 7 markets are closing at 1:00 p.m. eastern. they will remain closed picking up for a full day of trading on

thursday today also kicks off the first day of the official santa claus rally period which happens the last five trading days and first two trading days of the new year the s&p has posted 1.3% average gain in the last ten years, the markets only posted two losing santa claus sessions as you see in 2013 and 2014 the santa rally, a powerful force. let's go worldwide to see what is happening with the trade. you can see, a fairly mixed session, the nikkei about flat down about 0.01% looking at what is going on in

europe generally positive a lot of moves we've seen here there are key markets that are closed so far. the cac and france are about flat let's get a look at other top stories we are following this morning. new today, bmw is being invest gated by a report into the probe into the company's sales practices. they say they are fully cooperating taking a look at early shares in trading for bmw affecting about 1% of the down side there a win for uber and lyft. a judge ruling in favor of those companies in a lawsuit for the city striking down the rule of how much time drivers can spend on the streets without passengers in the car.

uber shares unchanged pre-market lyft up about 1% >> and tiktok reporting it is planning to sell all or part of the stake in the app over u.s. security concerns. bloomberg was reporting they were considering options to the all-out sale a sale of half of the business could have raised up to $10 billion. the company throwing cold water for the time being what a difference a year makes. last year on christmas day in 2018, you can see you how the markets rebounded. looking at the average up 44% in the past year. s&p 500 has gained about 37 in that time span and the dow up 31%.

if you picked that bottom, you've done pretty well. led first by technology which posted a gain of get this, 58% the weakest sector, energy is up by 13% you are still doing pretty well. with technology. it has been the semiconduct or powering their way back. check this out over the last 12 months, we are talking about 76% returns. all of that happening. this particular industry will become a big proxy for the trade discussion joining me now rob morgan. we've laid out all of the hits, runs and errors. we can remember the bottoming out on christmas eve

take us through the significant development in the markets as we take stock of this past year >> good morning. yes, it has been a great year. i think the most significant change has been the so-called fed pivot. we entered this year, the fed was still in rate hike mode. quickly, the fed shifted to rate cut mode and cut rates three times. that has obviously generated a lot of positive momentum for equities people might say that is the only reason they've done well. i disagree with that earnings have been solid not great but there are some good underpinnings the fed pivot in my mind is a big reason we have had such a big year >> why is it that the markets

continue to head higher dispilot the fact that the fed had raised interest rates multiple times over the course of the past couple of years. part of that is the fact that expectation for earnings growth were still pretty good at the end of 2018. we did get some positive momentum related to that at the end of the day, in the long run equity price is going to follow earnings growth. in 2019, it was a decent year for earnings, not great. that still did not -- the fact that it wasn't a great year for earnings didn't cause the equity markets to drop significantly. >> my job is to layout what happened from a news perspective. your job is the harder one, to tell us what is going to happen in 2020 because that is what you

get paid to do what will happen in 2020, what are the themes you play out what will happen in the market and if so, wear >> dom, i still like stocks going into 2020. saying rob, you've seen such a run up back to earnings and pe ratios stocks become wildly overvalued here earnings should pick up and accelerate that creates a low bar for earnings next year i like stocks as far as macrosectors even though the fed are on pause. the next move will be down that will bring a dollar, be a force to move the dollar down, which will help move large cap multinational and big cap growth stocks here. if you like, we can break down

the s&p sectors i like and don't like i wish we had the time, i always do, we are running out of it thank you for those thoughts in the meantime, thank you merry christmas. happy holidays we'll see you soon >> same to you, dom. when we come back. speed over safety. new investigation on the amazon delivery and how tesla is ending on a high note and looking at ipos set to break a record year, all when we return right after this. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere,

across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪ looking to simplify your skin care routine without sacrificing results? try olay total effects. one dose provides more vitamin b3 than 50 cups of kale and improves 7 key areas of visibly healthy skin. try olay total effects. but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium.

some festive music for folks in chicago 4:12 a.m. central in the windy city significant cannily cold significantly colder than in new york right now amazon is sacrificing safety over speed delivering packages now for christmas. this is fairly scathing with regard to what amazon is doing to get those packages out. >> amazon has been making a push to grow its own delivery network.

the company now delivers about half of its own packages using amazon branded vans or trucks. a report details how amazon has prioritized speed at the expense of safety allegedly. new drivers were put to work immediately instead of being given a five-day defensive driver's course. amazon chose not to go ahead with the training because it would have, quote, delivered a bottleneck a separate proposal would have given driver's a longer rest break and capped the number of packages per route that was rejected by amazon executive dave clark who is now senior vice president of operations in a statement, amazon calls a report to push a preconsumed narrative is untrue and says nothing is more important than

safety they provided more than 1 million hours of safety training last year but it doesn't say how many people received that training in 2019, they delivered more than half of their own packages. in 2020, that is expected to increase the allegations are pretty damming. they are expected to grow next year as well >> this is a focus because everybody is so tuned in on shipping right now it is going to be about whether or not that behavior becomes more prevalent or altered in the coming months and years as they become much more of the shipping force competing with fedex or postal service >> amazon uses sort of contractors to largely deliver these products who faces the liability when

fatalities and accidents happen? that is a big concern. >> thank you for that. still on deck, a new ranking of the rudest cities in america >> announcer: today's big number 145,000. that's how many of boeing 737 thn ncedhts have beecael rough june of 2020 to see dramatic results? try olay skin care. just one jar of micro-sculpting cream has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. while new olay retinol24 provides visibly smoother, brighter skin. for dramatic skincare results, try olay. and complete your routine with the olay eye collection. brand power. helping you buy better.

it is 5:17 a.m. eastern. that is a live shot of our nation's capitol christmas eve it has been a big year for 2019. we'll see if that continues in 2020 welcome back to "worldwide exchange." tell laus is kicking off the week breaking the $420 level for the first time weighing in on twitter the stock is so high, lol. >> the milestone comes 16 months after musk tweeted he had secured funding to take that company private at the 420 level. far from the only story in the

market auto playbook for 2020 next year is a huge one for tesla and its investors. it could rack up big sales for two reasons. cross over utilities are in demand building model y in its plant in china. the largest market for electric vehicles you can tap the breaks you won't see a lot of autonomous vehicles on the road in 2020 you should see strong truck and suv sales still buying at a near record pace they are paying more for vehicles as long as unemployment remains

low and consumer confidence remains high, there will be plenty demand for trucks, suvs and cross overs which account for two-thirds of vehicles sold in the u.s >> thank you for that and what you can expect in the year 2020. straight ahead, this weekend may have seen the largest shopping day in u.s. history but the market says these retailers are missing out on the holiday run and the bank stocks that are a buy. all of that and more as "worldwide exchange" returns after this demand has never been higher for what we do. creating compelling, engaging, and informative content and experiences. with this merger, viacomcbs will be one of the largest and most influential content creators in the world. i know we can deliver on the

full potential of this amazing new company. looking to simplify i knoyour skin care routinee without sacrificing results? try olay total effects. one dose provides more vitamin b3 than 50 cups of kale and improves 7 key areas of visibly healthy skin. try olay total effects.

. let's check on other top headlines. phillip mena is live with the latest good morning and merry christmas eve. >> to you too, dom a holiday headache for travelers out there. out west, drivers got stuck on a snow covered mountain in california in the nor'eastetheast, things f to a bad start there prince philip is heading home just in time for the christmas holiday.

to be with the queen and his royal family >> astronauts on the space station opened their care packages their floating holiday dinner consisted of smoked salmon and dehydrated fruitcake the crew plans to dim the lights and watch "how the grinch stole christmas" all traveling at five miles per second >> they'll get a good view of santa coming around the world. >> there it is good point still to come, breaking out the retail nice and naughty list and 2020 stocking stuffers for your portfolio and putting the cookies and milk out early as

wall street looks for another saint nick rally you and i both know we need term limits, that congress shouldn't be a lifetime appointment. but members of congress, and the corporations who've bought our democracy hate term limits. too bad. i'm tom steyer and i approve this message because the only way we get universal healthcare, address climate change and make our economy more fair is to change business as usual in washington. i don't have to worry about that, do i? harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. it works below the gum line to neutralize harmful plaque bacteria and help reverse early gum damage. gum detoxify, from crest.

my bladder leak underwear.orried someone might see so, i switched. to always discreet boutique. its shape-hugging threads smooth out the back. so it fits better than depend. and no one notices.

always discreet. that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley. investors are hoping for a santa claus rally. speaking of gains, shares of boeing are on the rise this morning amid the fall out of the ce o's firing as the company luke for a fresh start

the clock is ticking to get those final gifts in retailers are hoping the final sale's push will provide some cheer for the shopping season. the second half of "worldwide exchange" starts right now ♪ >> welcome back to the show. here is how stock futures are looking. the s&p looks to lock in the best performance since 1997 remember markets will remain closed through christmas day s&p opening by about one point the s&p and dow up by about 12 points nasdaq up about 6. today also kicks off the first day of the so-called santa claus

rally period happens on the final five trading days of the year and the first two trading days of the new year s&p has posted a 1.3% gain on average in the last decade, the markets only posted two losing sessions that was in 2013 and 2014 again, that period seasonally strong overall. let's check on the asian markets. you can see the japanese markets just flat on the day shanghai kp shanghai composite up. many are closed for the christmas holiday. the german dax is down ftse 100 and the cac just

marginally up in this holiday trading session. not a lot of volume in europe nor do we expect them today. >> the 1.6 million sket package for adam neumann could get even sweeter. saying the deal revised the terms of a certain class of share that may be revised down the road president trump has tapped robert blare to lead the wireless efforts currently surfing as senior advisor to mick mulvaney and on expected to be called in the impeachment trial of president trump.

spirit has announced it will buy 100 airbus jets by 2027. a mix of the a 319, a 320 and a 321 planes picking up the european planes despite the trump administration imposing a tariff on them. less than a day away from christmas now which means the shopping season is nearing its end. last weekend, super saturday shattered all sales records with more than the 34% haul joining me now which retailers

are on your nice list this year? janet, are you there >> yes, hi >> let's talk about your nice list for christmas and figure out what is going on in terms of retailers and the ones you think will do the best this year going into 2020. >> we have the big five, walmart, target, amazon, costco and best buy i think these retailers have provided great innovation this year and adding great services which have made shopping so easy and convenient for the consumer. >> if those are the ones you are focusing on right now, you mentioned why they are doing well are there other aspects and

trends you are watching to make sure these nice retailers are going to continue themes into next year. >> i think they brought the consumer great newness in terms of convenience and service if they can continue to add that innovation and stimulate the consumer to traffic their locations instead of competitors, i think that's the key. they are also providing great value in terms of pricing. that has been a key driver to their gains this year. for so long over the past couple of months, the focus of the growth story has been the e commerce side of things. a lot of the same-day delivery push the idea you can go shop on line and pick up in store will they continue to drive the retailers and are others posed to try to emulate that to play

catch up with walmart and target >> of course they'll continue to force those services to provide a greater services as we go forward. they've made great investments there. retailers like kohl's, jc pennies and macys are making these investments. i think it will be a catch up year they are behind and have lost some of these players. they don't have the loyalty walmart and target have now. it will be tough for them to get that >> how much are on your naughty list >> we have a lot of legacy brands that have underperformed. not just macys, jc pennies and kohls. we have victoria secret, gap, old navy, kate spade

these brands have not evolved. they are not as relevant they are losing share not only to newer brands that they are locking into but to our price retailers who today not only provide great service, great convenience, great value and great assortment of brand names. >> some brands to watch. >> always great to get your thoughts >> happy holidays. >> thank you turning now to financials, the space bouncing back from a disasterous year we have your 2020 playbook >> it has been a bumpy year for financials the key things to watch for in 2020 first, interest rates. bank stocks are always linked to

the yield curve because of the direct impact on net income. this has been the case in the second half of 2019 as is likely to be next year as investor fears where we are in the cycle continue to rise second, regulation after a decade of increasing costs, banks have enjoyed three years of easing regulation the 2020 presidential race will have a huge impact quite a lot of change can be made without approval. third, tech and auto make. leading to new challenges and challengers for the big banks. despite that, the players continue to get bigger even if the margins are pressured in the process. we have seen with truist and charles schwab >> thank you for that look at financials in 2020

for more in the sector, let's go to the analyst at rbc markets. happy holidays to you. let's talk about the banks, are they going to be the hot place to invest in 2020? >> yes we think they will be. as you pointed out, this year has been a very strong year for the banks. you've had meaningful and multiple expansion last year, the bank stocks sold off hard and came into the 2019 trading at single digit multiples eight to nine times. expanding to 11 to 12 times. we are not going to get the multiple expansion in 2020 but we can get upgrades throughout the yield, which will be positive for the banks >> so the yield curve has always been a focus

some argue that yield curve doesn't matter as much as they have in the past is that the case or do you push back and say, yes, the yield curve is still very important for the banking industry overall? >> i would say it is very important. it is still a key driver for profitability. even if the folks investors don't look at it that way, the market still does. a steepenning curve and then as inflation is heating up and the fed would have to pivot. we are not suggesting that will happen year term but if we can get that in the 225-250 range by the end of 2020, that would be very positive for the banks. >> let's put some action to

this are there places within banking that you buy over others or is this a wholesale bank story for banks. do we go money centers, broker, dealers, what is the best place that goes into 2020 for these banks? >> we think there are two ways of playing the banks into 2020, the universal approach is one of the ways to play it. the consumer banking portion of those banks is very important. the consumer is spending very good money as you pointed out with the holiday season, we think that will benefit the names such as bank america, jp morgan, chase and citigroup. you should get the benefit if capital markets pick up, those stocks should benefit as well. on the regional side, they

should benefit with the merger between bbnt and suntrust. not only do you get the benefit of southeastern economy picking up steam, you also get the cost savings from that transaction. moving to the u.s., you can look at key corp that does a very good job as well two ways of approaching. pure investing, probably stay on the sideline now >> before we let you go, one of the things that i and many others on wall street know you for is the texas ratio you look at some of the nonperforming sectors. are there any places you are seeing stress within the financial system that would lead you to be a little more cautious or is it all systems go for banks? >> it is a really good question. at this time, it is all systems go

two areas are bubbled up to a concern. right now, relative to the size of the banking sector, they are not material going into 2007, or 2008 there is auto showing some stress more recently, we are seeing the energy sector is starting to show some challenges as well when you look at the exposure the bigger banks have, again, very manageable. overall, all systems a good. credit quality is the best we have seen in years capital is strong, liquidity is strong the banks should do well >> making the call all systems a go for 2020. thank you for joining us we appreciate it >> coming up, more on the c suite shake up for boeing. massive challenges ahead

when it comes to holiday cheer, these cities could use a little or a lot new details on the new list ranking the rudest cities in america when "worldwide exchange" returns after this

more bad news for boeing the company announcing last night it told suppliers to stop shipping parts for the 737 max jet for at least one month starting in january. the news coming hours after boeing fired the ceo amid the ongoing 737 max fall out the job of getting the 737 max jet back in the air will now fall to incoming ceo david calhoun who takes over in january. last month, calhoun spoke exclusively to cnbc about the

efforts to revamp the max's flight control system. >> from the advantage point of our board, denis has done everything right from the beginning remember, denis didn't create this problem but from the beginning, he knew that mcas could and should be done better. he has led a program to rewrite mcas and alleviate all of those conditions to be set the crews, the families and victims >> joining us now for more on the latest developments on boeing is a report knowing everything about them. take us through whether or not this is going to be the reset that boeing needs to get the 737 max woes behind it, if they can get the plane in the air we don't know. calhoun isn't taking over until

january. the date has slipped time and time again it is a huge headache for airlines they have it out past easter if not later than that. we don't know if it is going to be it. mullenberg's communication has become so tense. that is a crucial relationship they need that blessing to get the plane back in the air. once that happened, we saw mullenberg go. we saw the meeting between dixon and him and the idea of don't ask us for any favor take us through this deliberation the board met. what do they have to talk about. why was this decision made and why now? >> you saw in the clip, the board stood by muilenburg for months and months. victims and family were even saying why are you still here but the board stuck with them. this meeting with the faa, you

saw the faa come out to an american corporation and say we call the shots we are the ones in charge and to sort of assert the control and to make sure the public knows they have that kind of control was a turning point for them already trickled down to suppliers. they've already warned the suppliers, don't send us any parts. >> this is not a hit job on denis mullenburg at all. go back to 2016. the stock is up 143% during his time at boeing since just 2015 what exactly does david calhoun have to do as ceo, what does ths board have to do at boeing to get back on track? i think the stock performance

would be very different if this grounding had occurred and was just starting to get off the ground this is a profit center for could be well into the next decade it is crucial you get this plane approved by the faa. >> thank you for all of that reporting as well. for more on the 737 max, head over to cnbc .com time for this morning's top trending stories we turn to rahel solomon tis the season for holiday cheer. >> ba hum bug. not in certain cities. the last few months asking american adults to choose the rudest city. the leading city won by a landslide. none other than -- new york city

got more than one-third of the votes. this is not a new trend. it is said new yorkers have been considered rude since the 1700s. los angeles, washington, d.c., boston can i point out this headline. merry christmas, get out of my face and i'm going to add, you filthy animal. >> go watch "home alone. watch "a christmas story" on tbs. >> the world's tallest basketball player is now the world's tallest conductor. he led the boston pops during their holiday concert. he led the christmas classic sleigh ride. breaking out some of his own

moves. his tux a double 48, extra long. i'm going to guess you have to get that made. probably not a big issue >> such a great on the court you can see the moves he's making he's light on his feet no matter what you put him in. >> he hasn't played that much but still so popular call it a home coming, because marshawn lynch is returning to seattle. offering him a contract extending to the postseason. the pro-bowler played in seattle 2010 to 2015 before briefly retiring the seahawks have been in need of a running back and when asked about a return, lynch said, we got history and unfinished business i'm sure they hope so. >> you wonder whether or not a bag of skittles were involved. >> whatever gets him there >> as a niner's fan, we feared

him for so long. we'll fear him a little more by the way, niner's/seattle game has been flex timed to a sunday game >> you will be watching. do you think he'll speak in the press conference >> thank you very much we appreciate it coming up, netflix ceo gets an early christmas present in the form of a pay day. how much he'll be making and 2019 seeing a number of ipo hits and misses. joining us to break down the companies who came down on top d who will follow suit coming up next year op, your other smartphone... woman: is this all the devices you have? your tablet... seriously? smartwatch, your backup tablet, and... woman: anything else in your bag? ...whatever that is. (beeping) this isn't working. introducing samsung mobile workspace solutions.

with the galaxy note10 with dex software, you can run your entire business on the one device that does it all. samsung business solutions.

welcome back the executive recap.

u.s. military is warning members to steer clear of at-home dna tests. in a memo, the pentagon issued a warning that the companies are targeting members and the kits could expose personal and ge netic information and create unintended security consequences and risks. the company 23 and me says it takes the utmost efforts to protect consumer privacy netflix ceo is getting a pay bump he will see his total compensation climb 10% to nearly $37 million in 2020. $34 million will be in the company stock options. one of warren buffett's portfolio manager is getting a change to job description.

he'll become the ceo of geico. in addition to his job, he will continue to manage his $14 billion berkshire investment portfolio. a strong endorsement analysts do not think the move improves the chances comes will succeed buffett as berkshire's next ceo >> from selling out to selling off, tough for some ip o's out there. big tech unicorns like uber and lyft are struggling, wework never made it off the ground we have more on that kate, you are back from the west coast. good to have you back in the studio here. let's go through the hits, runs and errors here. what was the biggest characterization you could make?

>> the big money loosers are not working anymore. both down 30%. they had some of the same charact characteristics. outperforming the s&p and what could be an historic year for stocks biotrend is doing really well. the biggest winner up 400% you also had beyond meet bio tech was the biggest winner. medical device makers were also popular. >> we take stock of what happened in 2019 i had one ipo banker tell me this is a rough year brutal, he called it at one point. can we expect that same kind of environment in 2019? >> people are expecting as a whole.

if you look beyond the headlines, the actual performance is pretty good tech names have out performed. there is an appetite for growth. showing property immediately uber and lyft, you don't know what point you will turn a profit tech is the big outperformer there is still the low-yield environment. folks are looking at those names. >> we are showing the top ipos you mention karuna went up 385%. this b this bio tech theme. either a drug works or it doesn't, they get bought out or they don't >> if the fda continues approving drugs.

like you said, it depends on the drug and the company you do see that up tick if a drug gets approved in this case, it was a drug. >> air b&b everybody is watching >> they have shown profitability. also doordash. credit karma and fintec, those are important names to watch >> is there a big industry within those you mention fintech. what do we think is going to be that big theme >> siekcyber security is huge by bio tech, the top three names

were either medical devices or biotec biotech. i would keep an eye on those >> let's take a look at those futures. they are moving to the upside. merry christmas eve. happy holidays we'll see you on thursday. "squawk box" begins right now. >> announcer: it is the day before christmas, joe and becky are gone but andrew and sully are here to push on. they are not alone we brought in tom farley and our friend ncc it has been a bad year for boeing, the stock price in question will the new ceo cause a volatile session is the tickers are moving. trade talks advancing but will trump reveal when china will sign a phrase one trade deal kick back and relax, the year's

almost done. "squawk box" begins in three, two, one ♪ good moorngd welcome to a special edition, a christmas eve edition of "squawk box" live here from the nasdaq marketsite brian sullivan with us mcc in the house and tom farley here wearing the best blazer of the season >> merry christmas all