welcome to "squawk alley." i am carl quintanilla, post nine with david faber, with julia boorstin jon and morgan have the morning off. let's send it over to bob pisani, art catshi cashin. >> 1860s, start of continuous training, there was a tradition of singing raucous carols on the floor of the new york stock exchange the song has a little more sentimental, but one that survived all of them here in the 55th year on the floor of the new york stock exchange, art cashin leading "wait 'til the sun shines nelly. ♪ wait 'til the sun shines, nelly, we will be happy, nelly,

by and by ♪ down by the sleigh we'll wander, sweethearts you and i ♪ wait 'til the sunshines, nelly, by and by ♪ >> terrific. merry christmas, everybody and one of the traditions is to bring children and grandchildren down on the floor. there's a number of them here today. tell me your name. >> shannon >> you're the daughter of a retired member, right? >> yes. >> his name? >> michael spidaro >> do you know why the new york stock exchange is important? >> it makes new companies and businesses >> that's the right answer thanks mike, one of the big traders for gts does all of the retail stocks your work through the year, keeping the markets moving and keeping liquidity in the market. >> thank you, bob. merry christmas.

>> art cashin, 55 years, started almost this day, 1964. >> that's correct. in the same book as john d rockefeller and jpmorgan they were just a touch older than i am. >> let's hope you'll outlive them all by a long way thanks very much merry christmas. thank you all for coming down for a great tradition that goes back 150 years back to you. >> one of the great moments of the year for the family that works in and around the nyse thanks for that. it is the final chapter in a bumpy ride for uber. former ceo travis kalanick leaving the board of directors for that, we turn to josh lipton this morning josh >> reporter: that's right, carl. in a statement, travis caller nick saying uber has been part of my life the past ten years, the close of the decade, with the company out public, seemed like the right moment for me to focus on my current business and

philanthropic pursuant he was a brash, aggressive founder that transformed them into the ride hailing giant it is today he was blamed for cultural problems at the company, was ousted as ceo back in 2017 amid a series of scandals he was there with you at the nyse during the ipo in may, though he was not on with the other executives this news coming as he sold his entire stake in uber, roughly $3 billion of stock it has been a big overhang on the stock, which is about 30% below the ipo price of 45 bucks. still, 65% of analysts covering uber now rate it a buy i caught up with one of them, evercore's benjamin black. he says the news is incremental positive in his positive, it could be perceived as benefitting reputation of the company. while shifting away from the old guard with a complete fresh start. guys, back to you.

>> josh, we should point out, i think the board has garrett cap, one of the co-founders, not as well known a name as mr. kalanick ursula burns came in in that period of transition the board changed dramatically then there are still people on the board at least who have been with the company for some time like mr. kemp. >> see how much confidence, point is well taken, that gives investors. with that board, they certainly have a lot of challenges we mentioned stock price why is it down there are head winds, in terms of regulatory challenges certainly competition in europe, latin america, you talk to bulls, they say a lot of concerns are priced in in their opinion, this company did layout the path to profitability in

2021 you see the stock moving higher in today's trade, guys >> i am wondering as travis caller nick focuses on cloud kitchens, his new startup of valuation of over a billion dollars, is there concern that could turn out to be competition for uber eats? starting in a different piece of it, could it go in the direction uber eats is focusing on >> reporter: i don't know, that's not a company i covered extensively. i think you would be concerned about any competition when you have a name like travis caller nick in there. we mentioned problems he was blamed for at the same time, ask yourself, do you think uber would be where it is without a guy like travis at the helm, at that time, that place, given how competitive, well connected, ambitious he is. we'll see how it plays out. >> keep an eye on uber eats business, important part of that, closing down or selling in india gave the stock a bit of a

boost a week or so ago thank you. josh lipton. it has been a strong year for tech stocks. that sector leading the s&p. joining me, steve mal on vich, and paul meeks paul, let me start with you. funds had a good year. can you continue it and will the composition of your top ten names continue to perform or outperform next year >> good question first thing i would say is with our fund on the precipice of being up 40% as we get into the end of 2019, i can't tell you with much confidence that it is going to continue. now, i don't make a fundamental call i think the fundamental underpinnings for tech are not sterling but okay, but man, 40% return in a single year is not what i expect going into 2020.

i would ask people frankly being honest to be very cautious as far as my mix of my holdings, i would tell you i continue and expect to continue favoring conductors and semiconductor equipment within the sector. i don't think they're cheap stocks but we have the greatest momentum there that won't necessarily stop on a dimon december dime on december 31st. it will continue >> i am looking at a chart of the fund it has done very well. you had a precipitous fall in mid december was there a reason for that in particular >> yeah, i took over the fund the beginning of november of '18 of course, you step right into a single quarter bear market in the fourth quarter of '18. had a nice move back upwards, stumbled in the spring, but really saved our year, gave us a

lot of momentum going to 2020, the move we put on going overweight semiconductors and semiconductor capital equipment after they got smacked in the springtime period. >> got it. steve, give me your take do you agree with paul that perhaps the semis are a place to continue to look in terms of them being an area of potential outperformance next year, such as micron and amat >> i generally agree with paul, though i am more cautious on the semiconductors they've been a clear outperformer, have anticipated the upturn coming earlier than historically micron calls the bottom, we have inventories that are relatively high there's pull forward that might be obvious the next two quarters longer term, it is clear if there's value in hardware, it is in the semiconductor companies, not traditional systems companies.

caution makes sense going into the new year we worked together at merrill lynch in 2000. we have seen the bubble. while i don't think we're in a tech bubble per se, there are extreme numbers out there, a lot of overbought stocks central banks are easy, at some point will come home to roost. from trading perspective, i would be cautious going into the new year we prefer software and services. >> shifting to the faang stocks, a number of these stocks had quite a run, netflix perhaps less so, facebook shrugging off the regulatory concerns. there have been calls to break up amazon as well as facebook. how much are you looking at a regulatory risk as a factor that comes into play for faang stocks in particular? >> regulation is clearly top concern for investors, looking at names, probably reduces ability to do m and a which takes away option alternaality.

they're fairly cheap given growth rates the thing that gets you as a leading tech company is disruption, new technologies that disrupt your position new technologies like ai i don't see that disrupting these, i think they're leaders the revelation is a bit of a cloud, it takes time to play out. it wouldn't scare those names out of my portfolio. >> paul, big story about huawei and the u.s. trying to warn the uk that the firm is a security risk to mi 5 and 6 i wonder how complicated do you think tech investing is in 2020 and overthinking the implications of that now >> specifically the huawei, i continue to be wary and think the way the u.s. has discussed the threat or potential threat of huawei is grossly exaggerated. one of the things i worry about

is obviously the big theme and big driver in tech over i don't think it is a 2020 phenomenon, going beyond that, transition to 5g if we continue to have this brou-ha-ha with the chinese, they're going to come out on the other side with a 5g lead. it could be unsurmountable i would love to see it cleared up i think it is a very big deal, something to watch in the next couple of years. >> within your portfolio when you talk about 5g, paul, what would you say is the purest way to play growth of 5g regardless of whether the chinese have a lead on us or not, we all know it is here, it is going to only grow in importance is there a name or two that you look at for next year, a good way to play it if you believe there's significant growth to come >> excellent question. the way i look at it, again, i don't think it is a 2020 phenomenon, it is a late 2020 into 2021 phenomenon

i still would go with the semiconductor companies. micron, dram, nam flash. and lam research i would focus on those rather than anything to do with hardware, hand set suppliers that's where you might see disappointment >> do you think we'll see impact in 5g in terms of reaching the consumer and all of the ripple effects that could come next year or will it not come until 2021 >> i think it is stacked into the second half of next year earliest one of the things that the bulls are talking about as pertains to technology and technology drivers is essentially assuming 5g is here, and 5g is an aggressive ramp starting january 1st, i don't see that. maybe it is an aggressive ramp january 1st, 2021. there could be some disappointment to answer the question directly,

very late, 2020. >> at the end of each year, we look back and say or look ahead and say technology shares may be overvalued, some of the names within it. they've had a great run in the last year. next year has to be a tough year then the year comes to an end, you look at the portfolio, what outperformed, it is always tech. will we find the same next year, is it a rule you have to overweight tech in general >> i think in the long term that's probably right. tech has given us a 17% annual return over the last 25 years. betting against tech generally doesn't work too well. even though we're cautious in terms of near term, if the market is up single digits, the world equity strategist is looking for, should be decent year for technology. technology is only becoming more important, not just within

technology but effecting every other industry i talk to friends in private equity, when they buy a company, he goes to the ceo, whatever business you think you're in, you're a tech company. doesn't mean every tech company does well. 5g, platform, cloud have real legs >> and we'll be watching them closely. for now, we'll leave it there. thanks to you both >> thank you when we come back, ride cancelled. former uber ceo travis cal leaving. how the wework ceo exit package could get suitor dan rogue enagsw is here to discuss that and more. "squawk alley" back after this o. so, today you're going to leave your phone with a guy named flip. (ding) but it's more than your phone, it's your business, your customer data, your sales figures. and who can forget, those happy hour selfies? not flip. (honking, gasping)

this isn't working. introducing samsung business security solutions, with knox software. with the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isn't. samsung business solutions. even when your phone isn't. uh, "fifteen minutes could save you 15%ain? or more on car insurance." i think we're gonna swap over to "over seventy-five years of savings and service." what, we're just gonna swap over? yep. pump the breaks on this, swap it over to that. pump the breaks, and, uh, swap over? that's right. instead of all this that i've already-? yeah. what are we gonna do with these? keep it at your desk, and save it for next time. geico. over 75 years of savings and service.

after a long road, travis kalanick leaving the board december 31. he says he will be focused on current business and philanthropic pursuant the current ceo wrote very few entrepreneurs have built something as profound as he did with uber. everyone at uber wishes him all the best joining us dan rosenzweig is with us.

it is christmas eve. do you think he will be missed on the board or not? >> no, i think he has been checked out for two years. there are founders that stay forever, that's the only thing they're ever going to do whether it is zuckerberg or larry ellison or bill gates, jeff bezos, very few of them, if they stay that long, become the most successful you've ever seen guy like travis is like a serial entrepreneur founded a company before this, he founded uber, founded another one which may be worth more than uber in a short period of time i think travis left mentally years ago, fought the battle, lost the battle, moved on. i think uber has been running itself the way it wants to. >> doesn't mean you can't have a symbolic stake why do you have to sell every single share >> why do you have to keep it when they fired you? if you're travis, he has bigger things to do he built uber, everybody knows

it and he is building another company that may be worth more why would he stay? >> it is interesting i know you have been in silicon valley awhile, seems like we've seen record ceo departures this year, particularly in silicon valley with wework, adam neumann pushed out, seems to be a long list of ceo transitions. reed hoffman talked about startups having to shift from being pirates to the navy. do you think we're seeing a fundamental shift in silicon valley now as boards and companies are pushing their leaders to transition to be grown ups faster and earlier >> that's depressing wework is in new york. but the answer is yes. look, every company goes through phases, same as public company investors, there are growth companies and there are value companies, and you have to go through this transition. i had lunch with dan benton, he walked me true transitions of

public companies where apple is not a growth company any more, it is a value company, as is google, strangely enough the reality is it takes a different skill set to manage a company at a different phase somebody like travis is brilliant at taking an idea and getting people to buy into it, getting the capital for it, driving through every conceivable wall, ignoring every conceivable obstacle when you have to build the supporting structure and build a culture that can support it and follow the regulations, it is better for somebody else to do it that's the norm. you're seeing refounders, by the way, people didn't found the companies that have created more value as ceo than the founders did when they were founders. dan shillman at paypal, for example. it is something people in silicon valley didn't believe in >> you didn't found chegg. look what you've done. >> ten years since i have been

the ceo of chegg >> you're kidding. ten years? >> haven't aged a bit. as long as you don't use hd. >> almost a $5 billion market value. you've seen highs earlier this year, good performance overall stock up 52%, dan. well done. i want to come back to zuckerberg if i can, you mention in terms of founders, ironclad control. look at the year the company has had. publicly in terms of profile, then in markets, up 57%. i wonder next year what do you see? it feels like there are a lot of different forces aligning against facebook >> it is pretty amazing because here's a company who creates a bunch of jobs not only for people that work for facebook but people that make a fortune doing business off facebook. it obviously had some stumbles some were self inflicted some were late to understand

they're a pretty good management team, run an extraordinary business the market sees there aren't many companies left in the advertising business, google, amazon, and facebook so if everything is going to digital and targeting is what works, facebook will win in the public markets, but i think that it is evolving, needs to do a better job, is doing a better job understanding the pressures that are coming from everywhere, every country in the world. >> mark zuckerberg talked a lot about how next year they're going to focus on a transition away from news feed and ads and news feed toward communication, secure, encrypted communication. are we underestimating how much that's going to hurt the advertising business or is that sort of an exaggeration of how big a shift that will be >> it is a great question, i don't really know the answer what i believe is you can't make the transition in a year everybody uses what's app and

facebook and messenger it depends you see instagram stories, call it advertising, e-commerce, that's one of the successful new initiatives facebook has done, buying things off the instagram. i have done it this holiday season, i can say that because i am sure my wife is not watching. i think it is not going to happen i think it is an effort that they're putting forth. i think the business model won't change much in '20 too dramatic to change honestly, advertising needs a place to go. facebook is the place it goes. >> they're at the center of a political storm conceivably this year with the presidential election, with his decision, free speech means you can say whatever you want when it comes to political advertisement hard to imagine next year won't be even more omplicated. >> i don't envy them look, i am huge fans of theirs the management team is capable of handling this

no one had to deal with it what if you had the largest platform of communication in the world, built for good, and everybody that wants to be bad figured out how to take advantage of it. that doesn't get fixed overnight. they're doing a lot to do that advertising and advertising. they benefit from it i think there's a lot of hyperbole going on >> cliff action -- whether it is increased cost or taking, not taking ad revenue, hard to imagine them doing that. >> whether e-commerce, payments, communications comes in additional business, because they may not emphasize the news feed, one of the reasons you don't emphasize it, already has too many ads the economics of the business on the internet are

straightforward. if you don't have huge volume and number of ads on a page, you don't make a lot of money. >> dan, i have to ask about the ipo market next year you know a lot of founders on the path to ipo, expectation for airbnb ipo a lot of this year's ipos fell flat. >> all of them. >> what do you think happens next year in the ipo market, will we see more direct listings or more caution? >> prosecutor probabyou're probe all three depending on the cash situation. there are investors in companies like airbnb a long time, have funds that need to return. i think you take a direct listing when capital isn't your problem. if you don't need capital, there's no reason to do that and pay the fees i think barry mccarthy reinvented that at spotify you see what happens with slack. most companies that go public need capital

i think you'll see more traditional ones the reality is we're going to have to clear through some overvalued private companies versus public company markets. i think they're coming to market i am not sure many of them have a choice number of investors, how long are investors in, whether you need capital employee pressure for liquidity, these are all realities that founders can't run from. >> airbnb, 2020? >> that's my understanding from listening to what they have to say. look, there's a company that's done a brilliant job of staying quiet, brilliant job of every time they have something happen immediately not afraid to change the business model but they're going to have more competitors. you see that now i think going public can only help them. the longer you wait, it doesn't get easier there is a point you miss that window >> others figure out. >> they figure it out, your model slows down. >> uber. >> uber is the perfect example,

lyft almost everybody that went public is down about 40% but doesn't mean they're not great companies, just means there's misunderstanding of valuation. >> dan, great to have you. as always. >> merry christmas eve, everybody. happy holidays >> well done up next, we have -- it has been a tough year for softbank, uber is one of the largest shareholders wh'sn orat iste for 2020 "squawk alley" back after this fy falls into formation. flying south for the winter. they never stray from their predetermined path. but this season, a more thrilling journey is calling. defy the laws of human nature. at the season of audi sales event.

we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

welcome back to "squawk alley. i am rahel solomon here is what's happening president trump talking down speculation that north korea is planning a long range nuclear test, telling reporters at mar-a-lago that the u.s. will find out what the surprise is and deal with it successfully. >> we'll see what happens. let's see. maybe it is a nice present maybe it is a present where he sends me a beautiful vase as opposed to a missile test.

right? i may get a vase, may get a nice present from him, you don't know, you never know. russian president vladimir putin says russia is the only country with hypersonic weapons. speaking with top military brass, he said russia has an edge on design of new classic weapons. and this ended in a stampede after an event billed as the ultimate balloon drop, led to shoppers scrambling for free gifts. they had gift cards in the balloons, that led to the stampede some kids were also hurt you're up to date. that's the cnbc update back to "squawk alley. julia, back to you >> thank you, rahel. softbank hitting a wall securing bailout financing for wework from three biggest japanese banks here is deirdre bosa with the

biggest challenges facing them in the new year. >> this past year was a wild ride for softbank and vision bank portfolio companies here's what to watch for the ceo and his team in 2020 first, could take longer to raise vision fund 2, after high profile flops like uber and wework they struggle to get outside investors to sign on and softbank could up its own investment in the fund or face a fund that's smaller than targeted $108 billion. second, we could see softbank push more collaboration, even consolidation among vision fund portfolio companies. he said the vision fund is an ecosystem where mutually beneficial relationships are fostered, greater drive to profitability. and he warned that there could be wework like problems

surfacing in other portfolio companies. trouble could brew investments, particularly in china and india. >> get masa back on camera, talk about how he is going to do this >> i would love to talked last march, before a lot of this came anybody listening to that hour ongoing sit down we did would be able to identify he thinks about things differently than many other people in a long term way, has an approach that's unusual we'll see what the new year brings obviously people come back to the great investment all you need is one alibaba. >> he poured so much money into so many different companies. i hear from a lot of folks on the west coast about the softbank effect, how it changed the scale of investments and growth pattern of a lot of companies. if there's a real pull back, that would have huge impact. >> they say the ability to

withstand pain is a super power, he does have that in spades. when we come back, apple up 80% for the year, doubled from the lows what could drive the stock higher in 2020 when "squk le ctiesaw johnson & johnson is a baby company. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. this piece is talking yeah?. so what do you see? i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing.

it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪

welcome back to "squawk alley. a very merry christmas for apple. the stock surging over 80% just this year. meanwhile, the company's new wearable device, air pods pro, a big hit with customers

it is on back order, can take as much as a month to be delivered. joining us, joanna stern, and apple analyst tom forte. joanna, let's start with you the delay seems so long. i wonder if it will discourage people ultimately from buying these wear abables because they out of reach. >> i thought the same. couple weeks ago i went to order these for my cousin, bought these $250 ear buds, and they were back ordered a month nafta point. i thought what else would i get her. i can get cheaper air pods, would be the nice thing to do for me, but the competition isn't there where apple is i can't look at google i can't look at microsoft, both have ear buds, wireless ear buds coming out in the new year, can't look at amazon, quality isn't great. people will continue to buy the air pods and wait for them >> tom, based on numbers, the delays and everything else you're seeing, what's your

outlook for apple's wearables business next year >> i guess i'm a little more optimistic on it to the extent when was the last time we were talking about apple having a product sold out on back order it has been awhile we have seen that kind of demand on the iphone front what's driven the stock is the country's ability to diversify away from its overdependence on the smart phone. it is encouraging that they have a product that sold out once again. i think that as they continue to advance their efforts in wearable devices, including watches and things of that nature, it will be an area of growth for apple >> it reminds me of debate over the weekend in the times about the decade, beginning of the tim cook era, and the argument that he made nice incremental moves, nothing as transformative as a phone or ipod. is that fair >> very fair look at the air pods they're tied to the iphone they're tied to apple's biggest

controversial decision of the last decade, which was to cut the headphone jack off the iphone this is very much a product i agree. it is a positive sign for apple, showing they're selling out of a product still, but let's not minimize this is tied to the main breadwinner, the iphone. >> the stock is up 80% this year chis an astounding performance last year it was down sharply. what are your expectations for next year in terms of what's going to continue to drive apple shares, if in fact they're up? >> good news for apple in 2020 is that we're talking about next generation phones on the 5g network. remains to be seen what extent on a global basis you'll see the network built out, ready for the phone. i think good news for apple heading to next year is not only do they have momentum in their noniphone business, this could be a year of good iphone sales

on 5g. >> what about the focus on services business, what do you think we'll see in terms of growth there, and how do you expect them to tie the recently launched apple tv plus with news and everything else? >> from a services standpoint, i think it does help that they have such a large installed base of hardware, especially smart phones i think they face a little challenge there to the extent that for most of 2020, we were looking forward to apple tv plus now it is up and running some forget the first show from netflix was not "house of cards," even if "the morning show" is a big hit, gives them something to build off of. i look for them to expand in 2020 >> how big do you think the market is for the air pods and for all of the new products? there was so much concern when the watch came out that it was

too expensive, came out with various iterations of lower price watches. when you look at the next generation of devices, do you think we'll see the same pace of innovation we saw with iphone and ipad and all of that >> it is tough on air pods, they're going to hit saturation at some point. we all have these, and what is the reason to get another pair one reason is they're built in with built in object so lessens, batteries stop working, people have to replace them every two years. that's one thing going for apple. but what is the great thing that can come next to headphones? maybe improved ai, better siri, help us with more prompts. looking forward, we're looking at other wearables, apple improving this next year the watch, another year for a leap in the watch, didn't have that last year, we'll have that this year the next couple years, the glasses, the wearable for the future. >> went to the apple store yesterday, they were getting a shipment of air pods, the new

ones they are coming to stores. i'm sure they sold out in minutes. i didn't wait around, but they were coming that day >> maybe there will be lines one day maybe there will be lines for air pods >> thanks so much for joining us appreciate it. happy holidays >> happy holidays. despite struggles from uber, lyft, and controversial wework ipo that never happened, ipos are still outperforming this year kate rooney joins us with more hey, kate. >> hi, carl. turns out struggles of mega ipos are not great indicator of overall performance. ipos as a whole did well the index outperformed the s&p in what's looking to be a historic year for stocks 33% gain versus roughly 29% gain for the s&p. biotech, medical device companies are big winners, thanks to the fda approving drugs faster than investors

expected karuna they are a putins. and uber and lyft and smile direct are some of the biggest underperformers when you account for market cap ride hailing giants are down about 30% since listing. tech names towards the top of the list fifth year straight, kathy smith of renaissance saying the broader ipo resilience shows there's appetite for high growth companies, just not big money losing names with a clear path to profitability we can't talk about ipos without mentioning wework, the poster child for private valuations, not always translating to public markets. sure to be top of mind for a list of companies that could go public airbnb, credit karma expected to

top markets in 2020. >> thank you. let's get to rick santelli, see what he is watching. >> david, we had quite a spectacular five year note auction on a half day with low volume but something happened after that at wt we're going to talk about after the break. there. but at fidelity, value is more than just talk. we offer commission-free online u.s. stock and etf trades. and, when you open a new fidelity brokerage account, your cash is automatically invested at a great rate -- that's 21 times more than schwab's. plus, fidelity's leading price improvement on trades saved investors hundreds of millions of dollars last year. that's why fidelity continues to lead the industry in value while our competition continues to talk. ♪ talk fidelity.

let's get to the cme group and rick santelli for the santelli exchange. hey, rick. >> hi, carl.

today was a very interesting day. once again, i stress whether you are listening on the radio or watching on your tv or computer, shortened sessions, thin markets, strange things can happen expect the unexpected. i remember a christmas eve about 30 years ago in the japanese yen pit hit up and down twice. things can get wild. we all know we have been trying to get through the mid 190s, haven't been able to after the auction today, it was a great five year note auction, doesn't matter how many people showed up, they were very aggressive once the auction was done, here's what happened we ended up losing everything coming right back to the support level of 190 and the reason i think this is so significant is really the flavor of the pit today. i thought maybe the thinness would lead to more selling or selling pressure to emerge remember, whether it is thursday, friday, or all of next

week, this will come into play here's ten year notes. here is what i'm talking about with the 195 level we can have support coming through this way on the wedge, but just because we break through to the up side of a thin market doesn't mean we keep going up or it is a big signal for 2020 at the end of the ordeal if you were to tag this on another 20 years of ten year note yields, we're still surfing on the surface of the water julia, back to you happy holidays merry christmas. >> rick, happy holidays to you as well. up next, the age of antitrust. the new wave of mounting pressure against big tech and quk 's in store for 2020 "sawalley" is back after this don't go away. lidays. so we built a snow globe. i'll get that later. dylan! but the one thing we could both agree on was getting geico to help with homeowners insurance.

what? switching and saving was really easy! i love you! what? sweetie! hands off the glass. ugh!! call geico and see how easy saving on homeowners and condo insurance can be. i love her!

some things are too important to do yourself. ♪ get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today.

♪ ♪ big tech companies facing mounting pressure on capitol hill on anti-trust concerns, not to mention a lot of stakes how does this time period compare to past investigations our next guest's article, how is anti-trust enforcement changing appeared in "the new york times" this week. nice to see you. i mention you've done it for a long time because you do feel as though we're moving into a different period than one that you've been accustomed to. why is that? >> i think the most recent

period would have been the microsoft case, a more purely economic case than we're facing now. the real analogy was probably the old progressive era of the late 19th century and early 20th sev century. you have market concentration in a number of industries, but big tech is the magnified example of that. >> nobody can argue on the power of these platforms, but i would say at the same time, even if you want to argue they're monday op lease. >> the dominant theme has been consumer welfare and the principle, though not the only signal has been pricing increases. so the real question is are we entering an age when data, how you collect it and use it is the principle signal rather than higher prices. >> it's interesting, because

with facebook facing so much scrutiny and potential threat perhaps of being broken up, they are arguing that integrating all of these different services that they own, having end-to-end encryption and making it seamless to go between what's appear and facebook will benefit the consumer in terms of protecting their data. do you think facebook is going to end up getting broken up? >> two different points. there's a long way between then and now. the theory on the facebook breakup which was led by two prom dent really anti-trust scholars at columbia and nyu is that -- the story is that around 2011, 2012, facebook saw that it was lagging in things like mobile and messaging, and so they acquired first instagram, the photo sharing app, and then

what's app, the messaging service, as part of a campaign to buy up competitors. and that has not been the standard that has been used sod far in antitrust, but there are a lot of people looking at that that are also not, you know, hard core progressives when i talked recently to doug collins, who is a republican from georgia and was kind of the most prominent guy on the judiciary committee, he's the ranking republican. >> everybody knows him now. >> i was talking to him and he thinks this buying up of competitors is something that should be taken a look at and your control of data so you don't have to be part of the bernie sanders, elizabeth warren wing of the democratic party to be doing this and the guy who is leading the state's investigation of google is ken paxton in texas, who is a

tea party republican so this isn't -- you know, to answer your question, it would be a long way to break it up because it would be challenged in court and the courts have tended to be conservative. >> i wonder what you make, "washington post" did a piece this week arguing that broadly, maybe not in tech specifically, but with disney, fox, cbc set na, the doj has actually been arguing in favor of big companies, which sort of runs counter to some narratives. >> yeah, and i think some of those they look at differently than this one. the head of the antitrust division at the justice department has been, you know, pretty forthright and outspoken about saying that these guys should be investigated, this is the right thing to do. no service is free data can be abused and so there are different contexts in different things i didn't a lot of these cases,

you bring it down to two or three as opposed to four or five in a market. they're okay with that in looking at some of the markets that these guys, the big tech companies dominate, you know, you don't get the high numbers. these are powerful platforms that control the wealth. >> they do we'll be watching them closely steve, thank you >> closing bell is a little over an hour away on the orneshted session. dow is down 34 (upbeat music)

- [narrator] at southern new hampshire university we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu.

>> tesla first closed above 420. if this holds, up a couple of bucks after it got to 420 yesterday for the first time we mentioned earlier the note out of morgan stanley, saying they're not bullish on tesla longer term. they keep the equal weight jonas was on with us the other day and said it's leverage that keeps them from being more aggressive. >> elon musk tweeted about the 420 number yesterday, but i don't know if he's tweeted again today. >> it's been straight up since the last quarter when they were more profitable than certainly had been anticipated it's going to be interesting to

watch. i wouldn't mind getting one for christmas. >> do you want one of the trucks >> no, i would just take the 3, i guess. >> it will be interesting. >> let us know on thursday if that works out for you. >> i don't think it's happening. >> i'm just glad you're staying at the network. >> i'm here. i'm not going anywhere. >> merry christmas, everyone happy holidays let's get back to the "closing bell." >> and welcome to the "closing bell." i'm scott wapner in on this shortened holiday trading session at the new york stock exchange the market closes at 1:00 p.m. eastern and we'll be with you through 2:00 p.m.. we'll see if we can set some new records in the final hour of trading. >> i'm in for sarah eisen. let's look at what's driving the action any close higher for the dow, s&p or nasdaq would be a record with the nasdaq looking for the tenth positive session in a row. president trump says he will ultimately have a trade deal signing ceremony wit