105 calls bought those during the show >> and carrie ch. >> con stellation brands got hit with the bad news about cannabis plays after the huge news still a beer company a top beer company we think it will go higher >> great stuff thank you very much. we'll see you back most of you tomorrow the exchange begins now. >> thank you it's been a tech tacular year for technology over a quarter of the nasdaq 100 is up over 100% this year and today, we hit nasdaq 9000 so can that rally roll on we'll debate plus, consumers hit the internet in record numbers making this a good year for retailers and e tailers. the question is, who will win the post holiday shopping blitz? all that, a struggle beyond

boeing and a new millennial nightmare out in kra california but we begin first with today's markets and bob pisani is track ing that record breaking action at the new york stock exchange >> and nasdaq getting a lot of love today that's because of big five are leading the way. all five of the biggest stocks apple, microsoft, amazon, facebook, when they move, everything moves nasdaq 100 leaders this year, guess what the same companies apple, facebook, microsoft, alphabet and amazon. five company, nearly 40% elsewhere, bank stocks, big story for the year higher yields, loan improvement. new highs for many including many of the regional banks not today, but in the few week, they've been up there as well. i know the nasdaq composite gets a lot of love. the nyse composite, which is

down here, a compilation of all the stocks that trade down here, also at an historic high today just pointing that out, brian. back to you. >> so bob, i got a question for you here if you are talking about the nasdaq at 9,000 right now, is there a sense from traders that this can continue if those five horse men if you will, megacap tech and com services continue to lead the way higher or is there a rotation into new names for leadership >> you and i talk about this a lot. mean reversion the stocks that tend to outperform one year tend to underperform and this is true of sectors as well. i did a story today looking at the last ten years tech's been the big outperform er in this decade, but it was the big underperformer in 2000 and twi2009 oil stocks i think you u get the point here there tends to be a lot of reversion which is why i'd say be careful about oh, let's just

by technology stocks >> thank you very much for that. from that nasdaq 9,000 level to new records on the s&p 500, stocks are rallying as we close out a profitable year for investors. deutsche bank points out global markets have surged $17 trillion worth of market value this year so is this a bullish sign for 2020 or a reason to worry? joini ining us now is craig caln and kenny, market strategist at slate stone wealth and craig, let's start with you here. t a big day. we don't hit 9,000 all the time. a historic level for the nasdaq. is it important for the markets overall and sentiment heading into next year >> well it all starts with value and we measure the broad u.s. market to be priced about 13% below our estimation of fair value. so we expect this move to continue into the next year as prices just try to catch up with value. >> so prices catching up with

value seems odd when we talk b about value at these levels and the only reason why i bring it up is because i went and looked and as of yesterday, we had nine straight record closes for the nasdaq the last time that happened was yes, 1998. we remember what it was like back then. is it bub ligs environment now >> also remember in 1998, a lot of that was played by the dot com mania that has taken over investing and a lot of those nasdaq names that's not the case today and actually when i think about going forward, what happens in 2020 is we're going to get introduction and the launch of 5g really around the world which is going to be the next revolution really in that space. so i'm not worried about nasdaq 9,000 at all necessarily worried about the market being vulnerable. do i think come january, the market might back off? absolutely there will be some new year

profit taking. people that don't want the take it this year, that want to wait another week and take some profits in early january, but yopg that signals everybody should bail by any stretch i think that's smart play iing, but i think tech is strong the market's strong. i like where it feels and how it feels. >> so craig, there's a great story up on cnbc.com right now and it basically talks about this idea that for bank of america, it is now seeing for the first time since 2008, the its clients buying more individual stocks than etfs or funds. that does mean that perhaps people are looking towards places for that relative value so are there particular stocks or places in the market that are supposed to do better in this kind of environment and so far into 2020 as well >> i was on with kelly year ago. december 26th and i recommended bank of america. it's done quite well this year this whole ten year soon to be 11-year bull market, there's things to werery about at the

30,000 foot level. but when you go stock by stock by stock, you find great values, healthy companies growing, so at the stock picking level, you can still find good things to own. >> like what >>er card. all they do is make money and they're growing. we have them at 1% a year, but the fiscal one and two year forecast are 18 and 19 very healthy company >> so mastercard is a good pick kenny, relative outperformance that will come to fruition in 2020 >> whether or o not it will come to fruition, i like the energy space i've been talking about now for a couple of months we've seen what happens now after on energy, oil and the whole energy space i continue to like energy going into 2020. but i tend to like the bigger names. en exxon, chevron, slummer jay are names in that sector i like, but i think energy's going to surprise as we take a look at where you

want to stay away from, it can't be you go and buy the entire market nothing can go up forever like that what exactly would be the place that is the riskiest in this marketplace right now. you want to stay away from it, the leading sectors have been discretionary, we believe this bull market is still in tact and we expect that same this year. is sluggish ones have been the recession proof sectors. >> kenny, last word to you what's the one thing you're worried about in 2001? >> i think the besides trade, not so worried about trade, but i'm really worried about the firs quarter of the year in terms of what the president, think about what happens at the

top of the trade pharmaceuticals, health care if it's more moderate, over the aing site. anxiety. >> kenny, craig, thanks very much, guys appreciate it. as we've mentioned, nasdaq topping the 9,000 level for the first time ever, josh lipton joins us now with the roll that apple played in helping this reaching new highs >> since the nasdaq crossed 8,000 for the back on august 27th, 2018 apple has helped power that index higher and microsoft by way. has continued prove d if you --

enjoying a remarkable run. apple's up more than 80% the stock is now on pace for the best year since 2009 and has added about $533 billion in market cap this year the only stocks with a bigger market cap than that is of course apple itself. microsoft, alphabet, amazon and facebook only a handful bulls are betting iphone revenue stays relatively flat in the quarters ahead even as services and wearables continue growing strongly, they're excited about a possible 5g iphone in september which can kick start it to stronger growth >> let's talk about the fs ises side the focal point. what apple wants us key in on. how much will investors and traders be keyed in on in the results in 2020.

will it be the thing that's like e commerce sales is to walmart, target b and those other retailers? >> listen, services are certainly front and center for apple investors. it's faster growing. higher margin. if you look at the quarter, you saw apple revenue. the kind of improvement inv investors wanted at the same time, you saw the pressure on the lineup you saw services charge up by 18%. of course we have the new services as well gaming, original streaming, how much does that play in as i said, i think the big focus, too, will be on the iphone that's still this company's bread and butter that's why investors are placing betting on the 5g iphone even though plenty of analysts will say 2021 is when you really see the 5g story investors really get exciteded >> a lot of optimism out there

for technology overall certainly in san francisco thank you very much. josh lipton in san francisco here's what's coming up in the show 2019 was supposed to be dreamy year for the unicorns. instead, it was a nightmare from wework to uber and beyond. will 2020 be any better? plus, take a look at this mystery chart. this stock was up 4,000% in just the last decade. are its best days behind it and a stern warning from the pentagon and the dna kits. the exchange will be right back. ♪ yes i'm stuck in the middle with you, ♪ 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

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it's been a dramatic year for silicon valley unicorns. diedra takes a look at what's ahead in the new year for those big ipos >> f after a year that saw some unicorns fly and some get their wings clipped, what's in store for 2020 first, profitability the silicon valley growth at all costs, going to take a backseat in more rational markets consumers might have to pay more for things like ride sharing and food delivery as those platforms try to stem their cash burn.

second, look for more diverse exits for the reasons behind the unicorns ipos will continue, but we could see r more direct and hybrid listings lastly, some of the biggest unicorns in the world will face more scrutiny in 2020. doordash, air bnb will be under pressure and as concerns mount over the chinese governments over tiktok, bike dance will come under pressure. >> that's a lot of potential catalysts. joining us now is joe horowitz also a board member of the national venture capital association. joe, great to have you you heard diedra breaking out the hits, runs and errors for 2020 does that resonate for what you're thinking about the vc community is thinking in silicon valley right now >> well, dom, thank you for having me. i think that summary was quite

on point what we saw this year was something in the venture business we've known for a while. that is that the public markets are far more discriminating than some of the late stage tech investors. so just because you've around at a certain valuation, doesn't mean the next round is going to be at the same price and the public is looking at it from a fresh lens >> does it make the venture capital community scared or more cautious what we've seen in terms of the big tech unicorns in how they've stumbled or even failed in 2019 and does that scare you in 2020? >> well, i think that's a good question but understand that it's the large high profile mega round tech unicorn companies that garner a lot of the press. venture capital investors that have been doing this for a long

time understand that it's a broader universe of companies that we look at. a lot in the enterprise space that never maybe the headlines but still achieve great outcomes, so we take note of it. it makes us a little concerned about how frothy the market continues to be. we adjust in terms of being more prudent in the way we want to go about capitalizing our companies and how they can spend capital >> what's going to be the bellwether, indicator to what we can judge by is it a company in particular? a theme? what is it going to define venture capital and ipos next year >> well in a sense, i would say you have to tell me because it has so so much to do with the condition of the public market

as you know, we've been in a bull market now for a decade we didn't see any adjustment this year. been nothing but u up and to the right. last december, we saw an adjustment from the first quarter of 2016 market adjustments in terms of the public markets have a biggest impact on what goes with venture capital investing and how companies do because we're an alpha asset class without the public market realm of investing. i would say we'll be prudent because we want to be careful if there's a market adjustment, but other than that, it's a more diverse set of companies we sponsor and get to the goal line in a capital efficient one step at a time kind of build process, not you know, sales you know as the only criteria we look for

developing companies around. >> it's going to be a big year for sure vc and everybody else in 2020. joe horowitz, thank you very much for joining us. appreciate it. >> still ahead, people are moving out of california where he just was, in droves droves and that could have a big impact on the entire country. we're going to tell you why late eoin then airlines soaring this year 24%, but 2020 could be challenges a look at the issues facing the industry and why costs could gain altitude. that's all coming up >> deeper data at cnbc a key index of great move by trucks fell 3.5% from november to october it's also the first year over year dliecne since april of 2017 iness trip. you've got your smartphone, laptop, your other smartphone... woman: is this all the devices you have? your tablet... seriously? smartwatch, your backup tablet, and...

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we've been working out every day. together we've already lost 15 pounds. didn't you say you gained a few? yeah of muscle. the point is we're doing it together. this whole process has really made me realise how much extra weight i've been carrying around. i might just want to drop another 180 pounds. that's almost how much i weigh hun. exactly.

earlier today, the nasdaq hit 9,000 for the first time ever shares oftesla are climbing. the firm upping its price to $370 a share from 270 saying that musk has delivered on his promises im, unomedics after the fda

accepted its i prooufl of its breast cancer drug and another rough session. down about 20% or so bank of america reinstating coverage of the company with an underperform rating and price target of $28 after the company announced tuesday it will not sell or break up the business. those shares down big. now over to brian sullivan with a cnbc news update >> thank you very much here's what else is happening at the hour president trump speaking out against the carnage involving thousands of civilians in syria. in a tweet, he wrote quote, russia, syria and iran are killing or o on their way to killing innocent civilians in id lib provnt don't do it. the faa is proposing a rule that would allow for tracking of trones in u.s. air space the rule would make them compliant within three years

an expanded recall of hard boiled eggs includes items sold at walmart, ko and trader joe's. made at the gainesville, georgia plant of walmart foods which may be contaminated with listeria and lebron james aggravating a groin injury last night. several memberses of the laker organization urging james not to play until he's fully recovered. clippers on the game night that's your update at this hour. back to you. >> battle for l.a. supremacy in basketball thank you very much. the best performing stock of the decade the decade a new record for ups and what the pentagon is telling military members not to do. that's all coming up next in today's rapid fire the exchange will be right back.

if you see wires down, treat them all as if they are hot and energized. stay away from any downed wire,

call 911 and call pg&e right after so we can both respond out and keep the public safe. okay, we'll stop talking about star r wars. let's catch you up on a few stories that should be op your radar. brian sullivan, jewulia borsen n biffle griffith, they have a lot to say, especially baby yoda media first because we've got jb in the studio. a real treat

netflix wrapping up a decade of dominance. far and away the best performing s&p 500 stock over the past ten years and one of the names powering the nasdaq to that 9,000 level, the shares are up more than 4,000% since 2010 but the next decade could get tougher with more competition and this year, netflix trailed the market just a bit. julia, because you are here, we get to start with you, our media reporter extraordinary does netflix have the fuel to make it the next ten years >> if you look back at the last ten year, we were talking about the mandalorian and the reason we're talking about it is because what netflix did over the past ten years there's no question that netflix has had a transformtive effect on the movie and tv industry netflix is not only going to have to spend more for content,

marketing, they have to compete with these new players and focus overseas and the growth that's coming from overseas i think the bar is going to be higher and different they were the disrupter and now they're going to have to fight hard to stay ahead of the game >> brian, hold on for a sec because i know what your thoughts are about the mandalorian. i want to get bill here. international growth is going to be key we heard seema tells us stories about the acquisition costs in places like independeia >> it is, but not as strong as it was here in the united states netflix turned out to be the ultimate momentum stock for the decade even though people, i think if you ask people what was the best stock of the decade, apple or amazon might have been number one even though anpple trailed off. i think to see netflix as a momentum stock is not going to happen because of all the competition that's coming out. >> i'm just a boring balance

sheet guy. they've done an amazing job. bloodline is an amazing show when you're apple, amazon, you've got huge other businesses, you can lose money and media and still be well fined because you're making this money. they're playing all these producers hundreds of millions of dollars in the hopes of what ever. >> a lot of debt >> i'm not a big netflix person. but i did watch the new ryan reynolds michael bay six underground and it's got to be one of the craziest action flicks i've seen >> god father harlem, one of the best shows of the year jack ryan on amazon. not loyal to a service if you have more of them, mandasnorian, i just found it a little bit boring.

>> you have leen you have allegiance to shows >> it's clear if people are going to stop subscribing to netflix because they're adding all these other services i think the real question for netflix is does the cord cutting trend continue because if it does, they'll continue >> i think it's going to kopt. >> i just hit voice on my remote, the show comes up. sometimes, i can't tell you which one it's on. >> yeah. exactly. >> let's move on to the next story because it's big next up, e commerce sales hitting a record high as more consumers never left the couch er card reporting sales grew by 3.4% modest online sales accounting for a record of 15% and sofa surfers are set to have an even bigger impact in the next retail rush as it returns. for more, frank holland. a lot of folks out there, 18, 19% growth in e commerce sales that's big >> also a big growth in returns. with nearly half coming from e

commerce returns the most return items are expected to be women's clothing, appliances and toys. christmas and hanukkah just passed amazon, walmart and target sh, they're expected to see theirs increase by 30%. a company that helps them liquidate. so a lot of people are buying and deciding to send back. as amazon offers free returns, you can understand why >> are are you guys returning stuff? >> yeah. i think it's an unsustainable model. imagine if restaurants had this. i'm going to order three dishes and the one that looks the best, send the other two back. goes into the waste bin or gets discounted all the boxes that are returned. i just wonder if this is sort of an unsustain b bable companies >> in order strorms now has a number of locations without any physical retail. you go there for the services, your online return

what they found is people will drop off things they want to return and that's enable aing them to get that return merchandise much faster which allows them to sell it at full price. >> amazon and kohl's doing the same thing >> sure. i've actually done it. foot traffic >> i've done it. when i first went to a kohl's to return an amazon product, they gave me a coupon for 25% for anything i wanted in kohl's. frank, i know you wanted to jump in >> to piggy back, sometimes haste does make waste. retailers lose about $50 billion a year, not just during the holiday season, but during the year, baugh they inefficiently handle returns lodgistically as far as that goes but something else, a lot of analysts including charlie o'shea who was on today, said if you can get people to return things to the actual store, that's an opportunity to not only sale again, but build customer loyalty, especially for those big ticket items like tvs

because people want information about them >> how many of you guys are too lazy to return things? did you guys get stuff you're never going to return? >> i hang on to things for a long time then i'll go to the mall and return everything at once >> because there's no 30 day deadline >> or the end of the 30 day. >> i think there's one other thing. the waste of boxes >> that's it >> on deliveries i think they're going to have to come up with a different model for that that definitely is not sustainable and it's not good for the environment. >> and by the way, just think about the small business we have a costco and amazon. we got to think about mom and pop. you know what i mean i don't want to live in a town with a half empty strip mall it degrades real estate values it looks terrible. it can breed crime >> you're about 20 years late. >> get off my lawn >> brian, here's the thing, do they offer free shipping we all want free shipping. >> there you go. >> frank, nothing's free

>> all right thanks very much, frank holland. here's another delivery story. meal kit delivery company, hello fresh, is the king of the meal kit market for the second year in a row beating out blue apron. they own 25% of yoef all u.s. market about double that of blue apron. that said, americans aren't particularly hungry for those. less than 5% of us used one in the last 30 days nobody's really using those. >> the novelty is now. >> was it ever a something >> sure, novelty i think people were -- >> did you use them? >> i have tried most and i find that i like the niche ones, the ones targeting families. >> but how often do you use them >> i like to cook, i use it once ever couple of mobnths to get ne recipe ideas speaking of waste zwl the bags are ridiculous.

everything's in a package. >> environmentally sensitive right now. covering oil and gas, but the amount of waste is ridiculous. >> my thing about it is and this is because i know julia a little bit over my time at cnbc she's a convenience person she likes the same day delivery, the things where she can maximize the little free time she has. >> he knows i use amazon fresh >> because she's out west and is up at 2:00 in the morning. >> it has to be a situation where more people want that convenience factor >> i don't know if it's more convenient because you still have to cook the food. if you want convenience, you order takeout. >> r for these companies to be success fful, you have want tha every day and people don't want that there are going to be different ways when you're not cooking or you go out or whatever it is and there are too many of these companies right now. a lot of meal kit companies are going out of business for that reason and by the way, i think

companies like stitch fix and their competitors are going to face the same problems because ik when the novelty wears off there, you're not going to want a box of clothes sent your way every month. >> it's different, but in that, i think that people won't want it every single month. >> i think the hope with these food delivery services when they first launched was they would take people who didn't like to cook and it would turn them into home chefs in fact, the same people cooking before just did it now because of convenience i think stitch fix is a total transformation >> maybe these meal kits are overcooked we're showing viewers now. all right, guy, finally, the department of defense is warning military service members to avoid using consumer dna tests the 23 and me, the ancestry.comes because the pentagon claims mail in kits pose get this, operational risks. raised privacy concerns and may not provide reliable or accurate

results. the pentagon recommends they use a quote, licensed professional instead. does this raise those same questions we've been scared about before what does it mean? does somebody have a warehouse of our dna >> in your military career, if you've got something, it could affect your stand ng the military if you've got some predisposition toward a genetic disease, the military looks at this stuff you might get this and look at your marker. >> and it may not be an accurate test >> it may be inaccurate. >> they the test so little of your dna with these home kits that they have out there from 23 and me and ancestry. it's such a small amount of your dna. to do a full analysis of your whole grk enome would have prohibitively expensive and i fully think there will be a day when insurance xaeps will require a dna test >> require >> require a dna test and -- and

it will affordable enough they'll want to know what you're prone toward >> i won't those guys monitor m car. >> that day is coming. >> all of this is about consumer data we talk about the safety of your data online. when someone has the data about your health and genetic marker, that becomes another type of data e we need to worry about in terms of prooivacy. >> you remember that movie gattica? >> great line at end ethan hawke. you know how i won never save anything from the swim back. >> you guys are all-stars. great to have you. >> i found out i'm danish. >> you know the last line of gattica? >> it's been a mixed bag for the major eyairlines should investors prepare for more turbulence? that's next when the exchange

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airlines enjoying a solid 2019 with the airline index up u about 24% this year. however, in 2020, there are serious head winds on the horizon. labor costs are set to rise as labor contracts need to rise for union workers. the boeing 737 max jet is still grounded plus, oil services are at a three month high so here to drill down on airlines in 2020, we've got seth kaplin, also leslie josephs, our airlines reporter and we're going to start things with you, leslie to give us a sense, set the sta for us is 2020 going to be a good year, bad year or neutral year for the airlines >> it was supposed to be b a great year for the airlines then we had the max issue, but to set up, we're seeing great demand. travel demand is really strong airline executives are proud to

boast about corporate demand especially if they're flying in the front of the plane but there are monster negotiations coming up across the airline industry so labor groups including pilots, flight attendants, catering work eers, mechanics you name it. we're talking more than 100,000 people >> so seth, are these labors going to be the biggest factor, the biggest issue that airlines will face in 2020? >> well, they should hope the biggest issue because the labor cost rising as a percentage of the overall cost high are in some sense it's a high quality problem. theorizing as a percentage, part of that is just a function of the fact that fuel costs are rather low so you know, that's good and yeah, the reality is that when times are good, you have employees saying hey, it's our turn they remember the days when a lot of these people have been around for a while made concessions. so that's the expected challenge in 2020. what you hope and as. >> lewis:ly mentioned with the

max is that you don't have other unu expected challenges because then you could have the con fluns of labor costs as well as this being the shock prone airline industry we've seen terrorism, health pandemics that even when they don't turn out to be as bad as feared, can scare people into not buying and obviously the threat of rising fuel costs. right now, none of that on the obviously any way on the horizon. >> seth, i'm curious you watch this stuff nor a living you advise clients and touk to people about what's going on how scared should investors be about what's happening with the boeing 737 max and the delays it's taken to get it back into service? >> it's a growing problem. it's sort ov the initial chaos of the grounding, right? and just flights canceled and so forth. gave way to a bigger impact. when the planes were first growned, there weren't there many of them

united wasn't really impablgtedded. now month by month, you're dealing with airlines that expected to have more of these planes so the impact for airline ss a forced capps thety cut if you're like delta, which gets the benefit but doesn't have to deal with the grounding, jetblue, others. in some sense, although they would root for this not a bad thing finally, the airlines that are directly impact, they benefit, too thef to deal with thchlt yet as time dwoez on, doesn't it seem that although we should be closer to recertification, it's getting harder than ever to call when this is going to be back in the air. if it's not a first quarter event then who knows because there are a thousand of these supposed to join the fleet here in the world in the coming years and nobody knows at this point what to expect and what to

expect of consumers who generally move things when there's a crisis, forgive and get back on the plane or airline, but this time, it's kind of unchartered waters >> leslie, last word baggage. who's got the least baggage tnd the most and what airlines could be poised to come out of 2020 looking better >> american airlines is negotiating with numerous groups they have their pilots, flight attendants, mechanics, fleet workers. they say they're poised for a turn around. investors are looking for a change there because they lag in revenue. they had a public vicious battle with their mechanics union this year they sued them, won an injunction doug parker said at the last earnings call e we expect a lot of improvement and they've seen a lot of improvement with fewer flights canceled or delayed. delta has given a very bullish forecast for 2020 going ahead and expect some expansion there and increased revenue. to seth's point about the 737 max, one thing consumers can look for is that they might not

find those bargains, great fares for vacation because airlines are constrained with capacity. >> lots of issues for the airline industry thank you guys very much always appreciate. happy holidays kra can kra's facing a big problem. one that could put the entire country at risk jane wells is in los angeles with that big story. >> hey, dom. it's no longer california here i come, but here i go. who's leaving and why should you care about that? it is the nation's largest economy. we'll have that story next for 20 years. 've ber no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients return home. and who doesn't love going home.

that will makeout washington insiders very uncomfortable: term limits. 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

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all right. california, my native california, is the world's fifth largest economy and now it's facing a big new problem that could impact the entire united states jane wells is in los angeles, california, with that story and, jane, this is a big deal. >> it is, dom, and people in peoria need to tear about it, here is why, young professionals are leaving this state because to quote jimmy mcmillen the rent is too damn high fake, for example, 30-year-old sydney, making 58 grand as an educator in oakland but had to live with her grandmother to make ends meet

she got the same job for 70 grand in portland, oregon, which has allowed her to buy a brand-new condo. here is one reason she thinks many of her peers are also moving. >> a lot of us aren't marrying early, a lot of us aren't having families and partially because it's really expensive. i think that might be a factor as to why a lot of us have been leaving the state is because we can't afford it on our own. >> big point here is people aren't coming. that's the biggest change. there's always movement in and out, but what made california great was that people from all over the country and all over the world came here for opportunity. now we're seeing very low levels of in migration and immigration is down. our immigration rate is now one-third that of texas. >> all right look at california streaming, people moving in and out outbound is larger, it's a small number, but it's a continuing growing trend and people, dom, in california are of course still having babies so overall

the state says last year the population grew. not because of inbound migration, but because of babies, but it grew at the slowest pace on record back to you. >> so, jane, these numbers are small. why is this such a big deal? why should people care about people leaving california in peoria besides portland where are people moving and why is this such a big deal for everyone across the country? >> because here is a couple of reasons, why they're moving, they're following the money, low tax states, texas, tennessee, florida, nevada, north carolina is popular, columbus, ohio, is popular, washington is slowing down a little bit because it's getting expensive but you see it happening in portland. what's happening is it's not just retirees, it is these young professionals making $100,000, maybe $200,000 who aren't able to save for retirement, buy a house and start a family the problem -- why do you care yeah, they're coming to your town and maybe real estate values will go up in your town, but california has always been

that center, dom, for innovation and for dreamers and silicon valley took decades to create and you are not going to recreate silicon valley with venture capital and stanford university and all of that somewhere else overnight so it hurts us here it does spread out throughout the country. >> hard to believe, jane, that you can make a six-figure salary and still not get by in some parts of the country. >> it's true. >> thank you very much for that. with the odds of security breaches increasing companies are hiring hackers to find vulnerabilities before cmilsrina can. the industry most at risk is coming up next 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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and meet eld compliance, all from one device. samsung business solutions. with corporate data breaches on the rise and the threat especially high for financial institutions, banks are now turning to former bad guys to help them safeguard their systems. kate rooney has that story. >> reporter: goldman sachs, capital one and the u.s. military are paying hackers to break into their systems and find flaws before criminals do, it's called above bounty program, most of the big tech companies have these programs. startup hacker one connects a network of white hat hackers to

fortune 500 companies and government agencies. the freelancers get paid in exchange for finding vulnerabilities. >> we're allies, right, we are not just some sketchy people in their mom's basement who are, you know, out there to cause damage. >> according to ibm the average cost of a data breach in the u.s. is $8.2 million hacker one ceo martin mekos says banks are especially at risk because of the big payoff of getting financial data. >> neighborhood watch, we come to your house, we look for ways to break in and if we can break in we tell you, we don't break in. >> reporter: the company is a popular bet for investorsers, backed by microsoft, facebook and marc benioff. >> white hat, black hat. black hats are bad guys. is it just the financial institutions that are the focus of these white hat white knights. >> it's not. you have tech companies, uber,

sh shopify. instead of relying on their internal i.t. department they're outsourcing, finding freelance hackers and paying them based on the level of vulnerability they find a critical vulnerability you might get $20,000 or a couple hundred dollars. >> you see some graphics we just mentioned, verizon hacker one customer, uber, capital one, the department of defense. is this going to be a trend we see increasing and can we see even more public companies in that realm or space? >> i think you will see more of the freelance side of it, it's more affordable in some senses most of these companies have vulnerabilities. they might not have the budget that j.p. morguer has to you could theoretically rely on these bug bounty programs. you think of an uber driver who might sign on to go and drive for a couple hours, the hackers that i spoke to think of it the same way, this he come from

working a full day as a software engineer and log on and go on for a couple hours, it's a video game in the way they described it. >> how much of this is just about companies? could i, say, hire them to come to my house because i have arlo cameras, canary systems, all these wifi enabled whatevers in my house, can they come to my house and figure out if they're vulnerabilities there? >> i bet they could. individually they could. hacker one they sort of have a list of clients, 2,000 companies and sort of -- i mean, defense department and government organizations. so they have to sort of sign up with the company and in exchange you get these sort of vetted hackers so they have to register their ip address so you know they are not going and taking advantage of it which was one of my big questions, how do you know that these guys are doing it for the right reasons and they were describing it as these companies are vulnerable anyway, these vulnerabilities and things on their website are clear for anybody to see, you just have now an avenue to report it and

get paid. >> kate rooney over at cnbc.com. thank you very much. it's a great story if you missed it head over to cnbc.com right now that story is amazing. that idea of white hat, black hats. that does it for the exchange this afternoon. hope you're hungry because "power lunch" starts right now. it's like spy versus spy from mag magazine. i'm brian sullivan new at 2:00 on "power lunch," to infinity and beyond. the nasdaq now up for the 11th straight day, its best winning streak since 2009 and hitting 9,000 for the first time can this record breaking rally roll on as the calendar flips to 2020 we will discuss and debate plus a look at the best ceos of the decade, yale's c suite girl ranking the best and worst. think salty snacks, shopping and streaming. by the seashore she says and electric returns, shares of tesla on a tear up 30% this month is elon musk about to put

all of his doubters in the rearview mirror? we'll find out "power lunch" starts right now and we do welcome you into "power lunch," i'm bill griffith another monumental day for the markets, the nasdaq hitting 9,000 for the first time ever, you can thank apple in part for that we have a new record for the s&p 500 as it caps off a major year, the dow is still a few points short, maybe boeing has had something to do with that, but we will get to all of that coming up here so the markets are continuing to blast through these new records with just three more trading days left in this year and maybe the decade unless you think 2021 is the beginning of the next decade but i digress. bob pisani is at the new york stock ex change with a recap of what we've done so far today robert >> i start with 2020 just like you do, bill thank you very much. the important thing about it a

lot of love over at the nasdaq, the big five, five stocks in the nasdaq 100 are almost 40% of the nasdaq 100 apple, microsoft, alphabet, amazon, facebook, they are the market leaders this year, that's why we're hitting new highs. not just them. outside of the nasdaq banks have had a great year, higher yields together and you have new highs, not just the big money center guys like citi group and bank of america but a lot of the regional banks hit new highs and fintech like visa has been strong all year. how about the some sectors of the decade let's start with 2000. technology everybody wanted growth, they paid up for growth because growth was hard to find, tech the growth leader no surprise the big market leader followed by consumer discretionary health care, industrials and consumer staples. i want to point out the laggards for 2010 to 2019 you notice the only sector that has no gains in the entire decade is energy and, bill, of course, you know a lot about mean reversion being a market

historian. what was the -- what was one of the one or two best performing sectors of 2000 to 2009? it was energy which is a laggard. what was the worst performing sector from 2000 to 209? it was technology which has been the best performing sector my point about all of this, you get mean reversions where sectors that had big outperformance or underperformance under time they tend to reverse and go back to the mean bill, back to you. >> i had a math teacher in high school who was herself a mean reversion. >> very good, about i will. >> thank you very much, bob. >> all right why don't we dig deeper into nasdaq 9,000 frank holland at the nasdaq looking at some of the stocks that have led the way to these big gains. frank? >> brian, nasdaq is the tech heavy index so no surprise that chip and tech stocks have been powering the nasdaq to 9,000 since it crossed 8,000 back in august of 2018 amd up 85%, lam research 67%,

cdw up 65% it may surprise some that consumer facing stocks have been a driving force, lululemon up 67%, starbucks gaining 66%, charter communications one of the biggest table providers in the nation up 59%. as bob was mentioning we focus on the big five, the faang stocks but it's been a mixed bag. apple the best performer up 33%, facebook despite a lot of negative headlines up 18%. you see amazon and netflix both falling single djts, however, when you look at these stocks year to date much better performance. still amazon and netflix underperforming the broader index which in this case is the nasdaq and nasdaq 100. today the nasdaq on pace for its tenth consecutive record close and it's amazon leading the way after reporting eye popping numbers for delivery and sales, the biggest gainer up more than 4% back over to you. and it's just not the nasdaq

seeing big gains, the s&p edging closer to its best year since 19 # #, the dow is on pace for maybe another record close so can we expect more of the same in the new year or is a pull back in store mark luccini ask with us, he is with janee montgomery scott and eric marshall is portfolio manager with the hodges funds. good to see you both. >> thank you, bill. >> mark, let me start with you last year at this time we had had a horrible selloff for the stock market in december, which turned out to be a huge buying opportunity when things got under way in 201 now we have had a very good year and a stellar december what happens in early 2020 do you think? >> i think very early in 2020, bill, we're probably ripe for some kind of consolidation in the market, valuations with priced 18 times what's estimated for 2020 earnings. if you look at conditions within the market we're clearly overbought

we either work off this overbought level in the market by way of price, some retracement of the gains we closed the year on or in time. in other words, we drift sideways more than we go directionally for some time to allow for the fundamentals to catch up at the end of the day ng we resume this advance and higher prices are ahead. >> eric, you and i spoke the other night on nightly business report, you are looking for growth stocks that pay a nice dividend right now is that your theme for the new year >> well, we think equities really set up nice for next year and we would be looking at financials, technology, consumer discretionary and some of the more economically sensitive areas to do well. >> why i mean, what's going to happen we have the fed out of the way, we have a trade deal that is making progress right now, you know, a lot of these headwinds that have been facing the market are falling by the wayside one by one, eric so what -- what's the fundamental basis for your calls here >> well, i think a lot of those

areas really have been ignored over the last year or so, everybody has been so worried about trade that a lot of those areas have been underowned we think there could be some good mean reversion in things like industrials, material stocks and those areas that have really underperformed this year. >> mark, we're mindful that we are now at nasdaq 9,000, we all remember when we hit 5,000 back in 2000, then it took a long time for us to get back to that level again. where does this go you know, by proxy i'm asking what happens to the technology sector which has been such a stellar performer? >> no, absolutely, and we also know that technology as a sector represents about 22% of the s&p 500. so it matters a lot to both indices. i would not be surprised to see tech continue its leadership status i mean, first of all, it's a huge space, it covers semi-conductors to software and hardware so different components

of it, if you will, could keep its pace up over the balance of 2020 i can't help but think we might see some kind of resurgence in some of the cyclical sectors mentioned earlier because i can they tend to prosper not only on steady growth here in the u.s. but importantly improving growth abroad i think we're going to see more convincing evidence in the coming weeks of what we've already gun to see which are merely more green chutes of a turn that will allow for those to focus on reacceleration and sectors like energy, financials and industrials really to materialize and that become leadership in 2020. >> mark, before we go, finally we're seeing the emerging markets, so many people have been calling for a resurgence or return to growth for the emerging markets we finally have seen that the last couple of months. is this a head fake or is this the beginning of something >> no, i think it is the beginning of something i think that what it is obviously representing is the improvement in china's domestic

conditions which is so important to the emerging market complex, i think it's also helped recently by the softening in the u.s. dollar which is also a theme of ours for 2020 that as it weakens coupled with some improvement in china's domestic economic activity i think that's going to be a boom for the emerging market equities and why we've pushed more capital into overseas markets both in europe and in the emerging market complex. >> mark and eric, good to see you both thanks and happy new year. >> thank you, bill. coming up we're going to take a bit of a break from the tech talk and get into the retail details the holiday shopping numbers, they're trickling in and they are big, but are they big enough to save some of the struggling stores we will discuss. plus, our exclusive look at the best cities for the stock market what metro area had the best performing publicly trading companies this year? the exclusive results coming in. tweet us your guesses. it will probab sprlyurise you. "power lunch" coming right back.

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time to welcome back to "power lunch." the numbers are coming in for the holiday somebody and they are looking pretty good. mastercard estimates overall holiday sales jumped 3.4% online hit another record as it probably will every year given smart phones and population growth. >> yes. >> what companies look like the big winners and maybe the not so winners aka the losers

we will bring in jan rodgers let me guess, you are going to say best buy, target, walmart and costco. >> you got it. they were all great. >> 3.4%, i mean, that's good, but you guys were all expecting 4% maybe or a little more than that. >> yes, i thought we would be at least 4% i'm not sure we weren't 3.7%. >> this is one data point. >> it was still good, but it may not have been as good as we thought it was going to be, but where it was really, really good was online. >> online, exactly, but where it was not good department stores. >> in particular, yes. if we missed the number we missed it in store we were up 1.2% in store we thought we would be up -- well, think about it if we were only up 1.2% in store online growth was 16 times what it was in the stores it's never been more than about five times. >> right >> so maybe this is a big

inflection point we haven't seen coming even though we have all been expecting it. >> question. you may not be able to answer it if you buy something online and then pick it up at the store -- >> it's an online sale. >> it's an online sale. >> right. >> so that could skew the numbers to make online look even bigger if you're going to get the tv at best buy you have already paid for, but you just have to go pick it up. >> we can't tell the difference anymore, that's the problem. walmart is growing 40% a year online, but the biggest growth part of that is picking up in the store or driving through and having them throw it in your car. >> which target has also perfected at this point. >> target's biggest growth is also pick up at the store. >> that's become the model now, that's a preferred model not only for the retailers but the customers because you are not paying for the shipping at that point and it's a higher profit margin for the retailer as a result. >> it's the second best profit margin the best profit margin is you go to the store and buy it and take it home, the second best is you order it online, go to the store

and take it home. >> but they consider that an online sale. >> still an online sale. >> they are just making store inventory. >> you're bugged by that, aren't you? >> these numbers get so big and you're saying if you are taking store inventory not from a warehouse, from the physical store. >> i told you in 2014 that by 2030 50% of all sales would be online and i said do you know why? because we call this an online saleno matter where you get or how you get it and it's all going to be on your phone. >> losers. >> well, the losers are the mall, if you looked at the mall of the 1,100 malls about 278 of them had flat traffic and upsales, the rest of them had down traffic and down sales. so if you were a mall-based retailer it was very, very hard to have a great season. >> one more question on this this year was another record year for closures for stores. >> 12,000. >> okay. i heard 9,300. >> that's all we've reported so far. my number is 12,000. >> what about next year? >> another 12,000. i think we will have 26 retail

bankruptcies by the time we get to the end of january because that's when our year ends. >> 26 bankruptcies alone in january? >> no, total for the year. we have had about 20 already i think we will have six more and i think we will have 12,000 stores close because the 9,600 is just the beginning. >> and who >> we are going to see another 200 sears stores closed immediately, they have already announced t that's going to drive up the number. we are probably going to see other people announce closings post year-end because we have too many stores and they are too big. >> i want to show bloomingdale's website. i'm not picking on blooming detail. >> we just happen to have a camera there. >> 75% off sales this is the day after christmas. why wouldn't the american shopper knowing this not go to department stores and realize that, hey, do you know what, if i can wait two days, if you can just not unwrap it under the tree, we can go get five times the amount of stuff for the same

dollar. >> by the way, joseph a.menk is 85% off. >> you could always wait until the day after christmas and get a better deal, now we're planning the days after christmas so you have more merchandise. so it's even better to wait. >> i literally have -- my daughter will say don't get me as much stuff. get me a gift card, i can get three times the amount of stuff the next week. >> but the deals before christmas were 45% off, now you're getting 60, 75 and 85 percent off. the old days it was 30% off, then 40% off, now it's 45% off, that's what's happening in retail. >> as successful as online shopping is, though, right now there is an inefficiency that i think has to be corrected and that's the number of returns that come back. >> returns are killing up. i sat on the board of a small company that's trying to fix that, it's called perfectly. >> how do you do that? >> you get more accurate on sizing why do you have so many returns in apparel because your wife orders three sweaters in three

sizes and two colors and so now we have six multiples out there. >> how do you fix that >> you can fix the sizing part a little easier. the other gets harder but as the ar -- as all the technology gets better you will get better on color and you will be able to bring those down, however, as long as online is growing if this is true 16 times as fast as in store, you're still going to see rising returns because you're not going to get them down to the same level as bought in store >> there was an article over the weekend or earlier this week, i can't remember who it was, and it was titled something like we gave you free online returns and you ruined it. and it was all about how the stores are not going to be able to sustain the weight of it. >> nordstrom started it, free both ways and then it just rolled from there. but that's what the customer wants. that's the way they want to shop. >> they want it because they can get it once you start it you can't take it back. >> somebody is going to do it. if it's not you it's going to be amazon. >> give us the surprise retail

company of 2020 for whatever reason. >> it's going to be interesting to watch bed, bath and beyond they have changed the whole management structure, brought in a new guy from target. are they going to succeed? i don't know it will be better than this year. >> it will be succeed or concede. thank you very much. >> always good to see you, jan. counting down the top ceos of the 2010s jeff sodden felled give us his three best execute ives and the worst as well coming up. plus nasdaq 9,000 it would not have been possible without apple up more than 8 o%, can it still lead the way on the march to 10,000? brian and i are coming back after this ♪ ♪

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we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana. welcome back here is a taste of some of the other stories we are following for you today. we call it the tasting menu. apparently, bill, the road to more online delivery looks to be paved with boxes and with delivery vans. the auto industry is benefitting from the online boom sales of cargo vans used in

fleet services projected to jump 19%, a huge jump from last year's 4%. these are the vans you know. i guess they should say thank you, amazon. amazon aims to grow it's 30,000 strong delivery fleet -- >> i don't know i have ever had an amazon package delivered by the mercedes vans. >> the sprinters. >> they have the logo on the side or they are this generic white van with no windows anymore. >> that's the van you used to be afraid of. >> that's the one i hope is bringing a package and not the boyfriend for my daughter. you know but, anyway, it is another unintended consequence of the growth of e-commerce right now that you're seeing now that last mile is where the game is won and bost for the e-commerce companies and those vans play a huge part. >> this plays into our next story, also with the growth of vans i would imagine the growth of fuel consumption. amazon is buying 100,000

electric vans from an electric car and truck startup but i would imagine the proliferation of other vans is doing wonders for fuel consumption in the united states. speaking of which since you and i both lived in los angeles we know about traffic jams they are costing us time and money in the economy. according to a new study the average urban commuter spends about 54 hours each year sitting in traffic it's also costing the u.s. economy a grand total of $179 billion a year i mean, i don't miss that at all, those traffic jams in -- >> you live in new jersey, bill, it's not much better. >> well, where i drive there is no traffic and you come in in the o dark hours anyway. >> that'sthe one upside of the early mornings you are sitting there burning carbon it is a boom for the audio book industry, listening to cnbc, maybe you need something different on the way home,

audible.com. i'm probably their first custom customer there is the second derivative impacts of this. >> unintended consequence. >> there is one reason my family left california and they owned a gas station -- >> because of the traffic. >> my dad was like i can't sit on the 405 anymore. >> good for him. >> forget it all right. the viral peloton ad, you know the one with the -- that nobody liked? well, actor sean hunter who played the peloton husband as he is now forever known in the fitness company's ad gave his real life girlfriend a peloton bike for christmas, he posted the photo on instagram where his handle is peloton husband and it captured here is hoping this goes over better the second time peloton shares are sliding today down 6% but i think he accomplished his goal which is to get more attention for peloton. they probably gave him the bike. we don't know. >> i'm thinking she got the joke and probably enjoyed it, she didn't look like she needed it, either, just like the actress in

the commercial didn't need t people have been wondering why is peloton down so much. i haven't seen sales numbers i wonder if they didn't hit their numbers for the holiday shopping season. >> does the ad make it not cool to own >> the first ad? i mean, the only ad i guess. ryan reynolds made it cool >> but that's for gin. >> i understand, but it was a derivative of the original peloton commercial there >> if you combine the two you could have a really interesting day. >> i think in the long run i think that commercial did more good for peloton than bad. >> you do? you are a believer >> i do. but then i'm glass half full kind of guy. >> that's what we like about you, glass the gin half full aviation. >> it's a close second. >> close second? >> is this me? yes. thank you very much. over to mike santoli for "trading nation. michael? >> bill, thank you very much it is time now for "trading nation." apple quietly making strides

this week up 3% thanks to strong holiday sales and wall street's positive outlook for the 3030 year and the advent of 5g compatible iphones sharing climbing over 1% in today's session. what is next bill and quinn join me now bill, that's sort of like obscuring the move that apple has made, it's actually doubled from the january 3rd low at this point, so where does that leave you? i mean, really the only question is not, hey, is this stock going to strong uptrend, it's has it become too overheated? what do you think? >> well, the consumer is amazing right now and that narrative is driving things, but apple has found ways to monetize a number of ways. you have the phone in your hand, the tv in your home, the card in your wallet. i'm here to talk about the technicals the chart is soaring, ripping higher, rallied 20% above last year's high. i think there's still more room to go. there is a trend line on this chart comes in at 255 aligning with december low pull back.

that's 10% away, that's a while, but the chart is extremely bullish out above there and my target is 324. i get that by looking at last year's high down to the january low and i think we're breaking out above -- above the october run here in that range so 324 is where i'm targeting the upside we may see that fairly quick. >> quinn, really quick would mean you're going to build on a trillion and a quarter dollar valuation right now, so do you think the numbers can justify something like that? >> that's tough -- >> quinn, i'm sorry. >> i was going to say, mike, i think that this is a great stock that folks need to put on their wish list and when it comes in and it looks like, hey, we're going through a correction this is a stock that you buy. but this is a stock right here where it's trading five times sales, 20 times forward earnings traditionally a growth stock made popular as a value stock by

buffet it's a crowded trade doesn't mean it can't go higher but i think chasing the momentum is dangerous again especially coming into the first of the year when people will probably lighten up for taxes put it on the wish list and look to buy or build if you don't have a position, it's a hold if you do. >> there is a lot of house money built up here presumably and trades at a premium for a change we will see if any of that selling can dent this uptrend. thank you very much for joining me for more "trading nation" head to our website or follow us on twitter @tradingnation >> coming up the s&p 500 has a decade to remember, up 187% since new year's eve 2009. we will take a look at some of the men and women that made it happen we will count you down the top three ceos of the decade and also give you the worst. stick around >> who could that be >> announcer: and now the latest from tradingnation.cnbc.com and

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i'm dominic chu and here is your cnbc news update at this hour south korea says it's closely monitoring north korean activity following pyongyang's promise that it will send the u.s. a christmas gift a defense ministry spokesman says it's being aided by u.s. intelligence officials. iraq's president refusing to designate the iran backed paramilitary blocks parliamentary blocks nominee for prime minister after he was rejected by anti-government protesters he said he is prepared to submit his resignation. a tennessee man held without bond in the stabbing deaths of two men outside of a nashville bar. michael hosely is charged in the

death of beathard. and people along a swath of southern asia had a great view of a ring of fire as you can see there. that was the solar eclipse, this happens when a thin outer ring of the sun is visible when it's beyond the moon. it could be seen along a path stretching from india to indonesia. that is the cnbc news update at this hour. brine, i will send things back over to you. >> cool pictures and video thank you very much. do you know what else is cool the markets. new record highs, pretty much every day and every time we continue to go up we hit a new record, the dow is up 53 points right now, the nasdaq hitting 9,000 for the first time ever. it is above that now at 9,008, another six tenths of 1% gain. do you know what else is having a good run is oil. hit ago three-month high earlier today up more than a percent to 61.70 and change might explain why some energy stocks have started to show a

sign of life. >> a lot of investors waiting for that to happen we also have some of our power movers today, brian, all biotech related on this day after christmas. first up caruna therapeutics up almost 10%, they went public in june, got positive news for a key drug in november, the best performing ipo this year interestingly up more than 3%. khiagen is going to remain a stand-alone company after all. back in november they said they had received offers and was reviewing strategic alternatives, but no deal. and finally spectrum pharmaceuticals losing more than half its value as its lung cancer drug missed the main goal in various trials. interesting note as of the close on tuesday the stock had been exactly unchanged for the ear, but no more, now down 59%. as the 2010% draw to a close we are doing a little decade in

review on "power lunch" and we can't talk about the past ten years in business without digging into the people calling the shots, the men and women with whom the buck has stopped time to rank and power rank the top ceos of the decade we will go through three of them with yale school of management senior associate, cnbc contributor and darn nice guy jepsenen felled. we are going with your rankings here we will start with number three which would be indra nuey of pepsico. >> you would be one of the heroes on this list. so congratulations on your new anchor at large role let me be the 150th person on air to say that, but when you interviewed me on that book my mom afterwards said he understands that book better than you do but i know you never read t there it is yours

brian, don't feel bad, a present for everybody because it's christmas. >> indra nooyi number three. >> a lot of great ceos out there. jamie dimon the most reviewed and feared banker. indra what she's done for the business community showing that you can do well and do good at the same time, she's created 22 mega brands, billion dollar plus brands, towered over her competitors in terms of total shareholder returns in that period of time and yet was able to cut out trans fats, cut down on sodium, sugar, their water use, recyclable packaging and her performance with purpose campaign was remarkable. i think she stands apart as a great leader across sectors. >> number two? best ceo of the decade is who?

>> well, number two bob iger coming into it this season you have to take a look both of you have remember how his predecessor did the nicest thing he could for him business z as iger was taking over his predecessor michael ikchael eisr trashed him a bit. you look at these last, i don't know, 13 years or so under iger, it's remarkable. you look at the best 12 box office triumphs of this period of time they are all his you take a look at the brilliance of doing marvel and lucas arts and putting them together with pixar the 20th century fox purchase it's extraordinary. his total shareholder return is up like 600% in this period of time but he's also shown a responsible backbone you remember how he had to pull

roseanne barr off the air for inflammatory comments and things he has shown himself to be responsible and probably would have been a good president if he ran. >> he gave up those ambitions to get the streaming service off the ground and make the 20th century fox acquisition. >> he would have run if not those and the disney plus -- >> by the way, it's not too late. >> well, yeah, there's still time for him when he retires. >> people have been around longer. >> i could have seen easily that bob iger could have been the ceo of the decade but you have chosen one above them. >> jeff bezos and you may have been the last person on air to interview him 2009 or so. >> 2009, yeah. >> he is not a self-promoter he is very reclusive relative to ceos and not considered to be part of that ceo club. when you talk to ceos who they most respect and who has been the greatest destabilizer, the greatest disrupter it's

definitely been bezos. if we were looking at the numbers, 12, 15 percent of retail sales are online, he's 50% of that. when you take a look at the cloud he has done remarkable with the largest cloud business out there and he has, by the way, leaders of his retail business and cloud business have been there a long time some people would write these exposés about the difficulty of living and working this culture. his cfo and head of cloud have been with him for decades. he's got good bench strength he used to do this high pitched cackle and try to distract us from asking the hard numbers, he's proven the model now. >> if you read the everything store, i don't know if you have it, he's not like the soft nice guy like his laugh would portray. >> you can't be and have the kind of success transformational success he has had. >> i'm surprised reed hastings

didn't make your list. >> mark zuckerberg, there are others. >> the worst ceo of the last ten years? i would go with elizabeth who will mgs of theranos what that did for life science investing. the big names in the venture capital world that were pulled in on that and the numbers -- the idea of a marquis board. i admire can i say singer when it comes to diplomacy. >> steven bird because they got in -- >> i think even general mattis before he got drafted into a different role was on there. an all star cast. >> bill frist of all people. >> people were getting false positives about their risk for cancer because their products didn't work. >> no, and when george schultz who was also on that board -- >> george schultz. tile >> tyler schultz, very good, was the whistle-blower there the way he was threatened and harassed and everything was awful. >> even by his own grandfather

for a time. >> which was terrible. people were mesmerized by elizabeth. >> what did we learn >> well, we learned we see a marquis board name we should try to figure out what it is they're hiding from. >> by the way that story -- we showed video of holmes on set, i was filling in for somebody that day on squawk and that was the day -- like hours before the first story by john kerry you broke. >> the "wall street journal." >> we were interviewing her on "squawk box" and she has had a booming baritone voice and she walked off the set and her voice sounded different. they note that she actually faked her voice. >> everything was fake she put on this new jobs want to be look and people fell for it, hook, line and sinker. it's really a shame. obviously it wasn't good for bio science investing. you take a look at maybe some of the misrepresentations of wii

wor would weworks. >> his product was real. >> there were beanbag furniture. >> he is going to end up with a billion dollars and she has a good chance of ending up someplace where everyone is wearing orange. >> he might be pulling off $2 billion if they don't claw back some of that they have too many candidates on the bad list but a lot of great ceos out there. >> jepsenen felled, always good to see you to the bond market we go rick santelli at the cme where we had a seven-year auction. >> yes, indeed we did. $32 billion above average, all the supply is out the door for 2019 a lot of supply it was, but counterintuitive have rates followed debt and deficits they absolutely have not look at one week of tens, you can see that we are really well worn in this range and once again we are at 190 unchanged the short end is up a little bit, a minor bit of curve

flattening going on. look at year to date of tens, we are at 268 when we closed last year so we are down 78 basis points, but i want to take that ten-year look back as everybody else has and if you go back ten years on ten-year note yields, wow, some amazing things first of all, in april of 2010 we almost hit 4% and if you look at a ten-year chart of the dollar index, strength weakness and rates, strength in the dollar, kousht intuitive reins. bill, sully, back to you. >> thank you very much coming up our exclusive countdown of the best cities for the stock market in 2019 how did companies in your hometown do this year? the power city indexes three, two, one best ti f tciesorhe market coming up only here on "power lunch." that's next. i recently spoke to a group of students about being a scientist at 3m. i wanted them to know that innovation is not just

about that one 'a-ha' moment. science is a process. it takes time, dedication. it's a journey. we're constantly asking ourselves, 'how can we do things better and better?' what we make has to work. we strive to protect you. at 3m, we're in pursuit of solutions that make people's lives better.

all right. time now to do something fun and something you will see only here on cnbc. we are going to name the best city for the stock market this year okay how do we do that? okay so years ago we built what we call the power city index, we track the 12 largest stocks from

35 metro areas around america, all stocks are equally weighted. okay it's fun, it's a very cnbc way to find out what companies in what cities are really rocking this is just kind of a fun exercise but why not let's count you down to who did the best, 12 top stocks equally weighted averaged out coming in at number three, los angeles bill griffith, the city of angels have been pretty heavenly for stock investors this year. the average return of its 12 biggest companies is 54% 25% more than the s&p 500. now, snapchat the really smart kid in the room helping raise that average it's had a gain of 181% this year but big gains by orange county based sky works and chipotle which moved to california from colorado probably the only person or company to do that actually helped as well next up, apparently the swamp is rising that's right metro area washington, d.c. comes in second in our power city indexes this year

freddie mac, lydos holdings and just a few of the belt way brigade doing great. it is up 59% so far this year. now to number one. and the best city for the stock market this year apparently it's not all about the weather for san diego. yes. san diego. the 12th biggest companies in the power city index are up an average of 65% this year the biotech heavy city by the sea has seen two of its stocks barody their put dick's and acadia more than double, seven of the companies up more than 50% and even the worst performing stock in our pci in san diego, illumina has given investors a respectable 10% are your honor this year congrats to san diego, settled by the germans of 1909 but also

2019's best city for the stock market this year, at least according to -- these are fun power city indexes but congrats san diego. now use the money to bring the chargers back. >> i knew that was coming there as well. i would have lost a lot of match sticks on that bet there, there. that is fascinating. san jose, seattle. i could have seen them in the top three. but that was really good stuff >> thanks. tesla's proving all the doubters wrong for now the stock has nearly doubled in the last six months. can the tesla rally roll on? ow lchisacafr this

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shares of tesla have kicked into high gear the stock hitting another all-time high today. surging 80% if the last three months amazing. tesla's run highlighted this week by none other than elon musk tweeting monday whoa, the stock is so high lol as it had hit 420. >> get it? >> yep with all the s.e.c. issues and other things behind them, could teflon tesla keep going in 2020 joining us now is founding and managing partner at wesley group and a former tesla owner to what do you attribute this recent run i'm sure some of this is short covering getting booted out

but what's changed in 90 days? >> well, frankly, it's the numbers. but there's four things here first, they're showing strong growth tesla delivered 245,000 cars last year. ( this year it will be between 360 and 370. there's no other autogroup growing that fast. strong growth in europe and china. built a facility in china in 11 months delivering vehicles today already. third, they're bringing new products to market all the time. the model y will be coming out next summer ahead of plan. the semitruck followed by the cyber truck. he's bringing products to market faster than anybody else and fourth, the company's profitable profitable in q2 and q3. i'm willing to forecast right now it'll be profitable in q4. >> how about number five and maybe this is number one and that would be elon musk himself.

you know, plenty of people early on were betting the jockey by investing in this company. this was your way of participating in this man who clearly is a genius. but he does nothing quietly. and those times when he got himself in trouble on twitter is when people started to question the viability of this company. now he seems to be paying attention and behaving himself that has to help, too, right >> i think so. but look elon musk is erratic, doesn't always play by the rules >> what's the risk here? is it running out of lithium, steve? is it, you know, difficult city or price hikes in some of these rare earth minerals that go into the batteries and other technology these are all controlled -- not all but largely controlled by china o for a lot of countries that are either not our friends

or a long way away and expensive to get out of the ground do you feel like tesla has got that long-term security in terms of these things that are hard to pronounce but incredibly important? >> so let me tell you whatnot to worry about and what to worry about. in terms of rare earth minerals, look lithium is the ninth or tenth most plentiful on the planet cobalt is trickier to get. but they're coming up with alternatives to that already the fact is tesla is smart they took battery production in house. they've moved faster than the others but the thing to look at is aww dee, bmw, general motors the rest of the world gets what's going on. the entire auto industry is moving electric. they're starting to catch up the chinese are moving quickly you will see commoditization that's the big challenge looking forward three, four, five years. but the next 12 months, tesla looking strong >> steve wesley, thanks for joining us today appreciate it very much.

>> you bet hay pi holidays. before we go, tesla is keeping things interesting in this year's stock draft. at no time did brian's lips move while i was saying all that. noah syndergaard made a play for the stock. he is leading because of tesla right now. how cool >> nick lowrie is sort of -- it's him and syndergaard because of amd thanks for watching, everybody >> very much "closing bell" is next ♪ welcome to "closing bell." i'm seema mody in for sara eisen here at the boeing post where shares are under pressure yet again. the worst performer on the dow as the stock limps into year end. on wall street, the broader markets are at market highs. 59 minutes left in trade >> i'm carl quintanilla in for wilfred frost. nasdaq did hit 9,000 for the first time ever.