it is 5:00 at cnbc globe add headquarters here is your five at 5:00. text record run. the first time since the boom days of the late 90s $85 trillion and counting for the year but can santa deliver that for 2020 as well? on line dominates. new numbers from master card about how much you shelled out in close contact new hints on a phase one

signing. breaking even on bare sterns all of that as "worldwide exchange" begins right now good morning and happy boxing day welcome to the show. after having the christmas holiday off, stock futures are indicating the dow may open a little bit more. still 31 points on the upside to the dow. s&p up by about four points. we want to turn attentions briefly to technology. the nasdaq composite has done something for the first time since the.com bubble era locking

in the ninth consecutive close the first time it has happened since its ending days. the bond markets showing some signs of movement. the ten-year note yield ticking slightly lower the two-year yield 1.67% we are still trading those bonds. let's go to worldwide movements. take a look at what's happening overall. up about 1%. the hang seng in hong kong is closed today the nikkei is up one half of 1%. markets in australia are closed in observance of boxing day. let's look at some other top stories today. new this morning, china says it

is in close touch with the united states on signing a phase one trade deal according to the country's commerce ministry, both sides are going through the necessary procedures but added that despite progress, trade tensions remain on other issues like a defense bill this as the treasury secretary says the phase one trade deal is, quote, an enormous step in the right direction. soybean imports to china from the u.s. continue to soar as trade tensions ease. urging to 2.5 million tons from 1.15 million tons a month earlier. in hong kong overnight, police fired pepper spray and tear gas to disperse crowds at

christmas decorated malls. crowds shouting abuse as the unpopular officers accused of using excessive force. firing tear gas in a popular protest area hundreds dressed in black and wearing face masks, shouting popular slogans such as liberate hong kong, revolution of our times. response consider their responses to the unrest as reactive and restrain. how much global stocks have added year to date this is huge look at that number. global stock markets have added now more than $17 trillion in total market value surpassing $85 trillion for the first time joining me now is bk asset

managing director of asset strategy thank you for joining me this day after christmas. it's been a record run we haven't seen that since the dot com era. does this market feel bubb bubbleicious to you? >> it does when you look at the market right now, almost everybody agrees the real reason equities have run up is not a fundamental driver but that the fed turns towards an easing bias the big question going to the next year is what is the fed going to do after the 31st of november already pumped half a trillion into the market. are we going to go at this pace?

order to keep the repo market classified just as equities have really risen, it is very possible we could have a steady economy and a market decline if the policy somehow flips or if there is a crisis action in the capital market the idea that we are divorced by the fundamentals to the upside also would be to the down side as well. a possibility of an economy crash going into 2020. >> can the market really crash, if there are still banks standing by to offer trillions of dollars, anything like that ifs that t if that's the case, does that make this a central story line for 2020 >> absolutely. whether you are bearish or

bullish, it is really the central bank story to drive a narrative going forward. the key question, i don't think they know how long they can prop up the capital markets at the pace we are going. everything i read about the reprepo market either the fact that we are financing the deficit, we have huge amount of supply coming up. it all gets financed in repo that is the big unknown. if there is a collateral market, it is a matter of lack of confidence in a market break that is the area we could have it is very, very hard to bet against the fed. i do think investors have to be careful. the most interesting thing that has been happening over the last 48 hours has been this unbridled

run in gold. we've had gold take the 1,500 level and hold steadily. that tells me somebody else in the market is watching what is going on and is hedging their bets at the very least, investors should be watching the same thing or maybe as a goal there could be a break and you certainly want to have some protection >> it is fair to say that that hedging protection, that insurance for the upside and the down side of markets is relatively cheap >> does that mean there is a healthy amount of kplas an si out there? >> honestly, dom, i've been around like you. everybody is saying it is not

true if you look at your cnbc green index. it is at 94 now. the opposite of when we were all fearful. everybody is greedy at this point. the other metric we are pointing to is the numbers that are as bullish. they are kind of false everybody who comes on your show is telling you it is 10% uch to the upside nobody saying there could be a market crash that tells you there is a tremendous amount of complacent at the time. new numbers from master card about how much money you shelled out this holiday season. >> plus, trends you want to watch in real estate in 2020

we break it down for you later in the show, why the head of the world's second largest theater chain is blaming netflix for falling box office sales "worldwide exchange" returns after this no one likes to feel stuck, boxed in, or held back. 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. ♪ ♪ wat t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer.

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awe, "skating," an appropriate song we are looking at rockefeller center the tree is not lit up right now. the day after christmas, the wrapping paper and boxes are all at the curb. we have an early indication of whether this was a happy or hapless holiday season for retail >> if you were like me and my family, we went out and spent this time. >> did you do it on line or in stores >> i'd say most on line. >> shoppers favored buying most gifts on line this year. master card said total u.s. retail sales rose 3.4% between november 1 and christmas eve on line sales rising 19% during the period compared to growth of 1.2% for instore sales

digital accounted for 14.6% of total sales. thanksgiving was six days later and that pushed back holiday shopping a survey found half of consumers finished their shopping after the black friday weekend amazon saying it had a record holiday breaking season as customers ordered billions of items worldwide although amazon did not give specifics the items delivered with prime and one-day nearly quadrupled. the most popular categories were toys and games, fashion and beauty now as consumers make all of those returns. a study says 70% of people will return gifts and nearly 20% will return half. >> you are not one of them >> no. it takes a lot for me to return a gift >> i didn't buy anything this

shopping season that was not on sale >> look at you >> i think i'm like millions who have been conditioned to look for those. the other thing too, the nordstrom semiannual sale happens the day after christmas. so you look at those chains. >> are you returning something 1234. >> i don't think i will be returning anything i will be looking for deals, it is in my nature. >> you shopped for everybody else and now you can shop for dom. >> i figure they are clearing out inventory. still a had, breaking even on bear sterns plus, it's the dream winning the lottery and telling your boss so long but what

happens when it all does not go according to plan. that's trending. we'll have more van halen when "worldwide exchange" returns after this >> announcer: today's big newspaper. one million, that's how many return packages ups expects to receive per day through the beginning of january

a live shot of our nation's

capitol. it is 5:18 a.m. eastern time things are calming down a bit but will pick up for the election year and impeachment inquiry. when it comes to housing, 2019 was all about rates 30-year fixed rate mortgages fell to the lowest in years. what can consumers expect for typically the largest purchase of their lifetimes we have the breakdown in real estate >> reporter: the housing market is a mix of highs and lows here is what to watch in 2020. the housing shortage will get worse. the number of homes is already low and demand is strong thanks to improving employment. supply is leanest which will cause prices to overheat at the

entry level. second, mortgage rates will stay low. rates dropped and will stay low as uncertainty over a trade war and presidential election year the only wildcard is mortgage finance reform major changes remain in the role where rates could finally break higher we are bullish on the builders combination of housing shortage and low interest rates will keep the demand high. home builders ramped up production and in 2019, they finally decided to pivot to entry level home if they put up more, big sales numbers will follow. high prices continue for land, labor and regulatory compliance. >> thank you for that playbook on real estate straight ahead, it has

doinged silicon valley c suite all year long. what can investors expect in 2020 we have that look ahead for technology and politics. plus the one tech stock that has avoided the tech lash does have its struggles on its own all when "worldwide exchange" returns after this ouch. i don't even want to think about it. comcast business has a solution. we go beyond fast with a cloud-based security system that automatically updates, so you always have the latest protection. phishing. malware. risky sites. it can help block all of that. it's one less thing for us to worry about. comcast business securityedge automatically protects all the devices on your network. call 1-800-501-6000 today. for your worst sore throat pain, try vicks vapocool drops. it's not candy, it's powerful relief. ahhh vaporize sore throat pain with vicks vapocool drops

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welcome back to the show

let's get another check on business phillip mena in new york with the latest good morning happy holidays to you. >> good morning. christmas has come and gone and still no gifts from north korea. they had threatened to deliver something. washington is on high alert with the u.s. flying four planes over the peninsula. the u.s. has down-played the concern of the long-range missile tests. a christmas miracle on the highway in new hampshire law officers helped deliver a baby boy on the highway. they were then taken to a nearby hospital where they spent the holiday. sharing this photo that all are happy and overjoyed to be spending christmas together. some startling information about notre dame and its

struggle to come back. it is so fraj ill that they say there is a 50% chance can may not come back. there is a concern it could come crashing down. just hours ago, the final solar ee li solar eclipse of the year and the decade seen in some parts of europe >> you'll forgive me, i am resonating with that whole baby dominic story. >> what a name unconfirmed reports it is because of you, sir. >> i'll take that. when we come back, tracking tech's record breaking run in 2019 plus the one asset class nobody is really talking about. for viewers, you are seeing pictures of it right now

we are going to talk about it when we come back after this

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and breaking even on a bear sterns trade one investment thousands of days in the making. you are watching "worldwide exchange" here on cnbc welcome back i'm dominic chu in for brian sullivan today here is how stocks are looking at the 5:00 eastern hour the dow would open by another 30 points if these hold s&p up by 4 and the nasdaq up by 15 the reason we want to highlight that nasdaq trade is because technology is in focus the nasdaq has done something for the first time since the dot com bubble boom. on tuesday, it locked in the ninth consecutive close for the first time since the streak

ended in 1998. a lot of traders looking whether those would do the pause it has been a nice trend higher. for the bond side of things, we are take things higher benchmark treasury ♪s just a i hair below 1.01%. japan, shanghai and south korea. most are closed for the holiday week australia is closed. the nikkei up by about half a percent and the south korean kospi and in china, up nearly 1% let's get a look at some of these top stories this morning beijing's envoy to the european union warning the block against pursuing policies that would curb chinese company's access to

europe plans to clamp down on foreign ownership, trade could trigger a backlash of, quote, chinese entrepreneurs. the chief of cineworld is blaming netflix for leaving them with low numbers because they prevented the irishman from being a box office hit by streaming it in sted the proper release in cinemas would have been a nice income. burning man sues the government saying the fed overcharges them in fees as the counter culture celebration. black rock city, they say it is tired on waiting for the

government for just if i indication for a permit to hold the 80,000-person event in the black rock desert in reno. tech stocks have performed well and come under increasing fire from regulators what should investors expect in 2020 here is that look. >> big tech was a big target on both sides of the aisle this year scrutiny will only grow as the 020 elections get closer the house will wrap up the anti-trust investigation early next year. democrats still want the top tech ceo to testify. a course tells me they want new legislation to ban republicans are trying to build support for a federal privacy law. both are raising red flags over

chinese companies like huawei and tiktok the federal trade commission and department of justice will focus on facebook and google texas and california have cases and a privacy law could go into effect facing an election year test after the fallout in 2016. all the platforms are under pressure to prove they are safe. they need to show they've learned the lesson from the last election and during the 2018 midterms, facebook did set up war rooms here in the u.s. to deal with foreign interference i would anticipate something again ahead of the 2020 elections. >> the magic of televisions. i saw you outside and now you

are inside >> it was much colder shooting that package >> speaking of colder, that's the reception a lot of people think technology will get. take us through in your mind, which companies out there will feel the most of that coolness or maybe that burn depending on how you want to look at it in 2020 >> i think facebook and google are the primary targets with amazon and google falling behind the house committee is expected to wrap up their investigation i would anticipate sometime in the first quarter of next year we are expecting the committee will have some sort of final report my sources tell me there will be some sort of regulation that will go along with that that could have severe implications that would ban mergers of certain sizes from not just tech but other large companies.

the target is squarely on facebook and google. there are others as well that could get wrapped up in that broad overview >> is it appropriate to classify this as a republican campaign, democrat or bipartisan campaign? >> this is something where the party lines really don't apply there is anger on both sides of the aisle at these companies you see it in the judiciary committee, just sticking with that example there has been a lot of rancor in the committee it has been front and center during the impeachment process the republicans and democrats in that committee don't get along going after big tech is one area they agree the chairman of the antitrust subcommittee representative has been very careful to go about his investigation into big tech in a bipartisan manner i think it increases the stakes

for tech companies they aren they aren't able to wait out for an exchange of power that means it can go on for many years. many years, does that mean there is any kind of a calendar or a clock. do we expect most of this to take place in the first quarter or half of the year or does it drag on for all of 2020 and perhaps beyond as well >> the committee investigation should wrap up in the beginning of next year the department of justice has said it wants to wrap up the sweeping overview to big tech sometime next year that is not where the investigations to big tech end the trade commission is looking at it as well. that could extend to beyond 2020 as well as the lawsuits from 2020 i believe that effort could extend from multiple years

you already see them having open cases from facebook in the example. they have been looking at facebook in terms of privacy concerns even beyond antitrust that will span multiple years. this will continue for quite a while. this is some of the reason why companies are ramping up pressure making sure they are in a place to combat their story. >> it will be a complicated playbook to learn. thank you very much for breaking all of that down for us in that 2020 playbook for tech and politics one tech stock that hasn't come under fire is netflix but the streaming giant has some other issues of its own. it is making a very big bet and market there cnbc reporter brings us that story.

>> reporter: netflix has big ambitions in india ceo reed hastings is planning to aim at the indian viewer in 2020 a hit series starring a number of bali wood stars analyst suggest they are facing an uphill battle with strong brand recognition and are relatively cheaper that is one of the big challenges going forward is pricing. the monthly plan on average is more expensive than india's streaming platform they are planning to lower prices in i7bdia at discounts of up to 50% and roll out a new mobil subscription plan. seen as a move to win over the indian customer which disney, amazon and hulu are also trying

to bring in as they expand beyond the u.s giving us a better idea of which streaming player will come out ahead. >> thank you for that update coming up on the show, our mystery stock of the morning a bio tech company getting crushed. the full story when "worldwide exchange" comes right back is a 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.

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a sale following an internal review they have ended discussions because they weren't compelling. the ceo stepped down after disappointing third quarter revenues kkr is buying the overdrive business from rakuten. delivering services to several countries. they bought the business for about $400 million nissan says its number three executive is resigning less than a month since taking that post the automaker didn't give a reason but it is widely believed he didn't see eye-to-eye with the new ceo. shares up are again about one-third of one percent >> experts say the odds of

corporate data breach are increasing we have that story >> reporter: good morning. data breeches can take a major financial toll on companies. startups are using hackers to help find potential loopholes before it is too late. goldman sachs are paying hackers to break into their systems to find flaws before hackers do hacker one connects a network of white hat hackers to fortune 500 companies. they get paid in exchange for finding vulnerabilities. >> we are allies we are not just sketchy people in their mom's basement out there to cause damage. >> the average cost of a data breach in the u.s. is $8.2 million hacker one ceo says banks are especially at risk because of the big payoff of financial

data >> neighborhood watch. we come to your house and look for ways to break in if we find them, we tell you we don't break in. >> the company is backed by facebook, microsoft. six freelance hackers have topped $1 million in earnings. i spoke to one who is using it to pay for his computer science degree at stanford >> thank you for that report on white hat hackers versus black hat ones we'll turn to trending stories today with rahel >> let's talk about christmas. for one person, apparently was just not in the spirit and he's now feeling the consequences police spent christmas tracking down a local grinch who they say was wreaking havoc

he has been stealing packages and taking items from unlocked cars he is facing almost 40 years i love the fact that ease still in the mask after he's been arrested >> a little get of gest there. >> a reporter in spain thought she had won the christmas lottery and quit her job while on air the reporter was covering the annual lottery event which is the biggest in the world she hears her name called. you see her crying here and poudly announcing i am not coming to work tomorrow. while she did win the lottery, she didn't win the million she

had hoped for. she left with less than $6,000 she later apologized >> would you come back to work if you won the power ball? >> how much is that now? >> $280 million. >> would you quit on air >> no. >> i will be coming to work. >> i can expect to see me at work i will stay here >> i think you may by golfing. >> i like my job i will be here >> fair enough a suggesting from yelp that the share of chinese restaurants in new york has been falling. the share has been around 1%

that may not seem like that much but it comes as shares of indian, korean and other restaurants have been holding steady or increasing reporting for the new york times suggesting it may be for the economic stability they are finding that immigrants who came here and opened restaurants and worked really long hours and now their children educated here in america are going off to start other jobs >> the idea was that this is a family business. this new generation no longer wants to be in the business so far. >> or no longer need to. they can go off and work more professional jobs. >>i think you live around new

york city. >> i don't it is very difficult to find a good chinese food. >> i had good chinese in my neighborhood yesterday >> i have to go to queens or flushing another child of basketball may be on the way to star document called "all things zhuri." it has already a massed nearly 12,000 followers giving insight to the life of a basketball family with lebron making appearances the channel's launch date is january 1. >> how old is she? five >> she is five, actually

>> five years old launching a channel with i'm sure good financial and star backing >> a little bit. her dad is a little in the entertainment space. >> i might have to watch a little to make my own judgement on this. >> i may too go on zhuri. >> we are all fans we are all going to watch. in sports, two california titans went head to head in the christmas night battle kawhi leonard and the clippers battled lebron james and the lakers both sitting on top of the western conference lakers take an early lead. kuzma closing in with 18 points. the game neared it end, then it happens. fourth quarter, kawhi leonard makes a 15-point come back to tie the game seconds left clippers seal the deal, break

and beat the lakers 111-106. good job for the clippers. >> still on deck it is supposed to be the most wonderful time of the year for retailers. did the season live up to the hype more when "worldwide exchange" comes back after this. but natury has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy.

it is time for your executive recap. president trump says he and president sxi will have a trade deal signing going through necessary procedures adding that despite progress,

trade tensions remain on other issues and the defense bill. >> total u.s. retail goals rose between november 1 and christmas eve. on line sales rising nearly 19% compared to growth of just 1.2% of instore sales hong kong police fired tear gas and pepper spray there were no major clashes but crowds shouted at the officers in hong kong check out what is happening with gold prices today near a two-month high. the last trade there around the lingering phase one trade deal boosting flow into the precious

medal. up 18% and on track for the best year since 2010. let's bring in executive director of precious metal research we have been talking so much about all these other asset classes. does gold have room to run in 2020 we believe it does we think it will be a slow start. in the second half of the year, we'll see gold price action. a number of those factors will come back into play. we expect u.s. treasuries to start to weaken. the investment or the trading behind things like gold, silver, platinum has always been a safety trade a global economy starts tanking a bit. it is used as an inflation health if prices are driving too

fast supporting which case for 2020 >> the fact that really boosted gold is when we saw trade tensions escalate. late may is when we started to see central banks become dovish. next year, we don't think it will be a call on fed rates or the physical market. we think that safe haven play will be important for gold those underlying tensions will boost investor interest. >> because of the safety aspect will be big. we've heard in the past movements. we think of india and other physical gold drivers. do we see those things happening in 2020 as well or is it pretty much the safety trade? >> the physical market is incredibly important for gold. it is not what pushes gold to

the upside, it is important to determine where those come into play it is important to see that hold for 2020 if prices come, we'll like to see them materialize around 1,400. >> that dip to the 1,440 area, is there an upside range in the forecast for next year >> i think prices are going to exceed 1,500 and edge towards 1,600 next year. q 4 is the strongest quarter that's when we think the markets will start to reassess we are not forecasting markets >> is gold the best precious medal to be involved in as far as investor returns? >> i think the strongest medal

is palladium i think it will remain undersupplied in 2020 and 2021 we continue to see higher loadings supporting demand >> let's talk about physical versus futures and etfs. when you talk about questions your clients have. is it based on, should i buy the bullion or the physical? >> for a lot of investors, it is a case where the fundamental story supports which metal they want to have exposure to and whether they want to play the relative trade as well. we continue to see good interest across precious metals and etf holdings we've seen gold holdings hit the high and palladium holdings have

continued to fall. >> a reason to play a little of that supply demand >> platinum in flows have been so strong in 2019. we've seen investors position for the long term. also seen supply risks in south africa supporting the risk as well >> thank you very much sounds like gold and palladium are the trade in 2020. time for this morning's must read this comes from the wall street journal. in a front page feature story, detailing financial advisors who bought shares of bear sterns $30 each on friday march 14, 2008. the betting that the bank would be taken over and make a quick profit only half right.

days later, jp morgan struck a deal and it took until this month for the weary investor to break even at 4,209 days since then, the stock value has tripled. that does is it for this show "squawk box" picks up the market coverage beginning right now good morning online shopping dominates. new numbers from master card on how much americans spent this holiday shopping season. one day into the santa rally season we'll tell you what to expect today for boxing day the future for uber. this after travis announces he sold all his shares andis leaving the board of directors it is thursday, december 26, 2019 hope everybody had a wonderful

christmas. "squawk box" starts right now. good morning welcome to "squawk box" here we are live from the nasdaq marketsite and it looks like an empty times square >> nobody is out there >> people are sleeping >> a slow start. >> it is usually really busy even at this hour. >> it is particularly empty. i'm andrew ross skorkin. i have guests sitting with me today. >> thank you for being here. it is a normal day o