no one wants to pick up the slack. no one else around the world wants to -- >> we need fiscal stimulation. >> jim, thank you for join us today. sarat, thank you for being with us all morning that does it for us today. andrew, have a wonderful new year. >> yes, you too. >> i won't see you until next year. >> merry and happy new year. >> the rest of you, i'll see you back here next week. right now it is time for "squawk on the street. see ya. ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber, mike santoli at the new york stock exchange. cramer has the morning off it is a familiar picture by now. futures up, s&p set, not only for a record high, but should open above 3249. europe's book to work. ftse up, best run in three years. and oil and gold continue to catch bids as well road map begins with records on a roll s&p closing in for the best year

since '97. >> the apple surge on track for what will be the best yearly stock rally in a decade. the company is in talks to buy japan's displays primary smartphone screen factory. >> and tesla on a tear shares climb to above 430. the automaker expecting a rollout the first china made model 3s on monday >> there seems to be no stopping the year end rally stocks are on track to hit new record highs nasdaq as we said in the midst of the longest daily win streak since 09 after closing above 9,000 for first time ever. watching 3249 as we said but 3259 would give you 30% for the year we only had two years in the past three decades with a 30% gain. >> yeah, i mean the pace in the last i would say past couple of weeks has been relentless, sellers staying out of the way that has created this incremental move day by day. i do think we have this unusual situation where the year to date numbers are -- i don't want to say skewed, they are what they are, but it gives a little bit

of a different impression if you look at prior 30% calendar years, because the market was just so bombed out last year so i went back, over the last five quarters, so back to september 28th of 2018, to now, the s&p is up 11%. it is an annualized gain around 9% that gives you a better picture, i think, of the overall trajectory of this bull market probably a more healthy pace you don't want to be kind of blowing off to the upside and saying, up 30% in 2013, very close to an all time high before we went up 30% same thing with 97 i do think you have to keep that in context because i think otherwise people say that the market just has been in this head long rush higher and it really only has broken out -- >> year on year, plus a quarter. >> i don't i think there is no wrong answer it is just i want you think additional context to saying this has been an incredible year because most of the year was making up for what you lost in the pace -- in the matter of three months

>> dangerous gain. because there is always going to be some external factor that might have affected the year ago comp. >> without a doubt i just think there was an unusual situation where you had this concentrated drop at the end of last year all that being said, the market has a lot of momentum behind it. and it is getting to the point where i think you now have to ask the question, have we gotten valuations and sentiment stretched to a point kind of where we're at the end of 2016, 17, the end of 2017, where, you know, you hear a lot of the bullish cases saying if the public ever just decides they love the market again -- it is sort of waiting for the overshoot in a way as opposed to something else if the end of 2018 was the market saying, growth is going to slow down in unexpected way, and we have to be careful, what is this rally said it is telling you growth will be better next year the question is whether the market will capture much more on top of what we already have. >> do you agree with -- i think sarat at the end of the show talking about momentum and

window dressing. we talk about it this time of year managers want to show they own particular stocks. i don't know how much it moves things. >> i don't think it is a matter of kind of curating the list of stocks you own to present to clients, at least in a conscious way. i think right now it is like why am i selling apple today i'm playing with -- if i owned this thing for 12 months it house money. entirely why am i selling it today rather than thursday, next week or something like that, when it doesn't trigger a tax gain or something. i do think there is incentives and mechanics that get you to this feeling of inevitable incremental gains, but i don't think it is really a matter of the flip -- the switch gets flipped at the turn of the year. >> interesting we have a piece online this morn saying that is one of the names that analysts got the most wrong in 2019, sell ratings from zero to 5, even as the stock more than doubled from its lows

>> absolutely and it is, you know, it is still a very cautious analyst setup with apple. why is that? because the street for years has been used to treating apple as, well, explaining why it traded at a discount and why the upgrade cycle wasn't high risk or something like that if you were bullish on the stock. well, now it has gone from literally first week of january 11 times forward earnings to 22 times forward earnings the earnings estimates are the same went down and come back up the dividend yield went from over 2% to just about 1% right now. so if you're an analyst and missed this move, what is your rational for saying now it is going, you know, to 350 as -- by the way, a lot of people said, it should get revalued based on services being a bigger part i really didn't think that was going to happen in a quick way like this. maybe that's not even what this is about. >> carl, funny, we talk so often

about the fed. until i started looking at numbers today, i hadn't realized the pace of not qe, whatever you want to call that, adding to the balance sheet in a significant way and having done it over the last few months in particular at a rate of, what, $1.5 billion a month. >> yes, no doubt they're adding back to the balance sheet, they're doing it in a -- here's why we can play the semantics game of why it is not -- they're doing it to keep the target rate where they want it and where the public said it needs to be. i also think that they're, in a sense, foaming the runway across liquidity demands. >> which powell said was a regular normal thing >> i think you do want to see what happens in the new year whether you can change, you know, treatment of bank capital, regulations, where they keep reserves, all the complexities of it, i don't know if it plays out. and i think it is acting very much the way actual qe did in one respect, it is largely

psychological. in other words, you can't point me to the $100 billion a month and how that makes its way throughout the rest of the capital markets. it just doesn't -- >> do you think there is a debate directionally >> no, i think people feel like that's yet odd thing we don't have to worry about and there is high liquidity environment and they're making sure it stays that way. >> they did turn around, from having reduced that balance sheet to adding to it pretty significantly in september >> and at this pace, according to charlie -- would hit a balance sheet would hit a new high by -- >> at this pace. >> yes. >> no doubt about it. >> this is a higher pace than qe. >> yes when we were averaging about 80 a month. >> yes also, the u.s. government auctioned $2.6 trillion of treasury securities this year. they found buyers for 2.6 trillion fed is not a big piece of that that's a lot of refinancing, right? it rolls off and we refinance. think about that so is the incremental size of the fed's balance sheet really changing the supply demand that

much when the government hit the market with $2.5 trillion in new paper this year? i say not that -- not really in terms of the flow of funds but people's head space, it does matter. >> one last thing on the big names going to year end, amazon, people still shaking their heads that the 4% move off of $40 billion market cap on a holiday news release that was essentially devoid of specifics. >> the one we get every year >> the same release we get that tells you great things but tells you nothing. >> record sales, the economy grows every year amazon is growing -- yeah, you're right i do think that's why it was a tactical thing, amazon had not participated in this last leg of the rally. it is still well below the highs. that to me is a, you know, let's leave no faang stock behind. >> it was lagging. 23 versus apple's 83, facebook's 58. >> and well below where it traded, you know, year and a couple of months ago.

>> the prime members, we didn't get a number, of course, they gave you a sense that they added a lot. perhaps that was a data point people were -- investors were pleased with potential new members. >> right >> again, you know, you want to kind of have a quorum before you decide whether this is a new -- >> one thing we are lacking, probably this week and next. we mentioned apple apple and sharp reportedly considering the purchase of japan's screen factory sources tell nikkei the price tag could be as high as 120 and apple and sharp are considering how to share stakes in that facility interesting story overseas with this tesla news about deliveries coming on monday too. >> and china as well they need display, you can imagine why they would want to do that deal if they're apple. they don't typically do deals much above what -- i think the largest deal apple has done is the beatz deal, $3 billion i can't tell you if i -- this

year, how many times have people said to me, they're going to do the big content deal, they're going to, they're going to perhaps one day they will. but -- >> they made smaller, i believe, semicap related deals. so it is really just kind of internalizing supply chains and rationalizing the stuff they have to buy anyway. >> it does broadcom selling its rf business, which was what it built the business on to some extent but apparently apple is not interested in that some thought there to your point that when they want to vertically integrate for themselves, they might have interest in it they make their choices in terms of what they want to own and what they are happy to have providers for. >> yeah. >> just on the broader m&a point, i look at the indicators that say, you know, things are getting a little giddy and investors are -- if you look at m&a volumes as a percentage of market cap, we're really lagging right now. so it is kind of an interesting,

you know, nonconfirmation of the idea that the market is in this, you know, full all out bull market mode. that's, you know, you would think at this stage, a lot of things have been cleared maybe it is the common 2020. you haven't seen lots of snowballing kind of big strategic mergers, high concept mergers, things like that. >> that don't discount the regulatory gates, particularly for large deals that require antitrust tier has become a weird crap shoot you got around the world and china, of course we don't know how that's going to resolve if we do get the phase one signing and whether samper will become much more -- or appease a lot of these deals. it has been an issue if you want to announce a big deal, your board will think long and hard about it if you need regulatory approvals around the world. >> speaking of phase one, south china morning post today with a piece about what they're saying is a domestic debate within

china about how to commit if at all to these purchases of u.s. goods because they don't want to run afoul of wto, if these are unnecessary purchases to what degree are they leaning on their own companies and do they annoy other partners, the europeans which might get a little rankled if you're buying more than you need. >> over the course of last year has been the game. china was raising tariffs on u.s. and retaliation and, you know, other companies had greater market share i wonder if the numbers are going to -- we're leaving this out there, and we're going to sign some document >> that's not good. >> i think we're done talking about trade. >> you do? >> right so you don't think -- >> i don't know how to make that a valuation at this point. >> you can't let's -- that journal story, i think from last week, was an interesting one, pointing out how far above these purchases would be from what it has been. >> rerouting things.

>> recategorizing the same imports as into china. by the way, it is also -- keep making this point, talking about committing to dollar values you don't know what commodity prices are going to be. tomorrow, let alone in a couple of years right? so if you're talking about, yeah, fine, i'll commit to a certain tonnage of soybeans, but the price can double or go in half from here. >> that's true by the way, chinese industrial profits were up 5.4 in november, prior month down 9.9, that's a nice swing but i did note on the cover of the washington post is a big piece about family farms who really are looking for these purchases to happen. at least on ag some of the shipment has been encouraging, but -- >> it is a question of, you know, the lags and whether that makes its way to these areas that have been hard hit >> when we come back, we'll get a lot of today's movers. fair amount of news given the holiday week another executive departure at

boeing, we'll talk about that. premarket, keep your eye on 3249 for the best years since 97 as the nasdaq is coming off its longest run in a decade. back in a minute

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boeing announcing michael lud ig will retire from the company at the end of the year his departure is notable for a number of reasons. he's been serving as a senior adviser. also been at the head of boeing's legal defense, following the two fatal crashes that involved the 737 max. he's a former united states circuit judge of the united states court of appeals for the 4th circuit. had been on the short list for george w. bush in terms of supreme court appointments, never was nominated. but he also, guys, was very much in muilenburg's corner, supportive of the company and overall what he saw as his role in defending the company but certainly his departure is an interesting one, particularly in light of mr. calhoun, the new incoming ceo's reaching out to the likes of the faa and to

customers, sort of setting new ground for their relationships mr. luttig somewhat combative. >> yeah, obviously, seems to represent a statement to new approach it has been fascinating how the market has kind of absorbed every stage of this story. starting to see the confidence, over time, get worn down wasn't a panic out move. i think the street kind of preferred to hear the muilenburg message that soon, soon, soon we'll get the 737 back and now it is setting in that we just can't that be certain you bled away a lot of the valuation premium. the street moderated the upside. it is a fascinating how just the long-term story and the certainty that under muilenburg this company was able to convey to people about the long-term cash flow. >> not many crises related to a product have involved a company with such credibility, such a

track record, such influence on the economy, not to mention backlog of 20 years and a -- >> exactly all those things have fit into that idea. now, it came at a time, though, when arguably wall street had an overbelief in the certainty of the cash flows and the order it never traded at that valuation before so the success that this management team had in basically portraying boeing as this incredibly stable business got to a very high point before this all happened. >> going to be one of the most listened to conference calls of q4 season, no doubt about that >> without a doubt i always think about the guy whose job it is to find places to put all those planes. there is some guy at boeing on the phone all the time, can we put them here, can we put them there? have any space in your garage? got a big garage >> it is a lot when we come back, former nasdaq ceo robert grifeld, perspective

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just about eight minutes to the opening bell let's bring in cnbc contributor kenny pu yny pulcari to talk abe market action. good morning good to see you. >> and you >> we got to take every week of market action seriously. do you think this is amateur hour or not? >> you know what, it is beginning to feel a little bit like amateur hour to me. feels like it is all the artificial intelligence and algorithms that are taking this market higher, feels a little

bit now, feels a little bit overdone for sure. and we have been talking about it now for a couple of weeks but the last couple of monves an this morning with the market up, now it is just about new highs begetting new highs and i get it, it is all the excitement, look, another headline, blah, blah, blah i think it is a little bit ahead of itself and wouldn't be surprised to see it kind of pull back come the new year next thursday, when it is all of a sudden 2020, and you, you know, you start from scratch again. >> all right, so you actually think it is a calendar issue once we flip it, what changes and how much does it change? >> listen, because as for first question, what changed in last month from what we didn't already know we got this trade, 1.0, we don't know the details yet, but we supposedly have it retailers which we're expected to do well are doing well and we saw that yesterday in amazon, so nothing has changed there. what i think is going to happen in january, i think, you know, calendar changes, you got new year, i think people that are going to recognize and realize

these profits and some of these big moves that you've seen over the last month and a half are going to take some money off the table in the new year, partly because why -- as mike or david said earlier in the show, why would they do it today or tomorrow when they can wait three more days next thursday and then put off any of those taxes due until april of 2021. so therefore i would not be surprised at all -- i expect to see the market back off in january, just for that reason. people kind of rebalance and say, okay, i'm going to wait until january to rebalance and then realize push those gains into 2021. and i think it should happen, i think people are a little bit scratching their heads over this latest move higher i think mike made a good point, though if you take it back to september of 2018, the market really only up 11% and not that 35% that you see in the nasdaq, which is really led by five names, the faang names. take those names out of it, where is the nasdaq really i have to do that work to see.

but maybe mike knows that. >> yeah, you know, kenny, real quick, looking back at the decade as well, you mentioned at the beginning of your thoughts here about ai and algorithms, we don't talk about it that much, not much we can say about it give me a sense as to how the trading day has changed over the last ten years. >> listen, we could spend the whole hour talking about that. i spent 40 years down there on the new york stock exchange. when it was open outcry at zero technology and today it is the complete opposite end no open outcry and it is all technology it is all driven by the algorithms that seek out arbitrage opportunities across the fractured market environment we have today. direct result of a lot of -- we can talk about this all day, why it is what it is but the algorithms of taking control of that as we have seen across so many things that algorithms take control of and enforce this market higher listen, just this reach for -- we can see the last couple of

weeks, this reach for stocks, stocks, stocks, no human being is going to sit there and go, this really made sense to me because it is way, way in my mind overdone. >> all right, kenny, we hope to touch base with you a couple more times before the end of the year kenny pulcari, thank you opening bell four minutes. back in a moment sometimes, the pressures of today's world can make it tough

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you're watching cnbc's "squawk on the street. live from the financial capital of the world, the opening bell in one minute on this pretty busy friday morning for a holiday week the record run here continues in the states but europe getting back to work after christmas day and boxing day. as we said earlier, ftse 100 is on its best run in a few years even as boxing day sales were down for the fourth year in a row, and there is more concerns about the trade deadline between the eu and the uk today. they may have to extend that, december of next year. >> right it does reflect the fact that it is a global move that's been the case for three or four months right now that it has been this kind of global revival of risk appetites, europe has the cheapest market

probably, you know, with the most head room in that regard. >> you talk about records here, setting record highs in the past week, europe, stock 600, brazil, switzerland and the ftse 250 not just the american phenomenon there is the s&p and the cnbc real time exchange, the big board this morning, departure, human services of new york, helping individuals with developmental disabilities at the nasdaq, data sea. we'll see what leads here. couple of interesting pieces, you did a great segment yesterday on dogs of the dow, sort of a perennial year end strategy look and whether or not that's going to apply with the rate structure -- the way it is around the world. >> it has not worked this year very well. what you're basically doing is using it as a short cut to find kind of neglected, disliked, beaten down stocks it goes back to a time when most dow stocks had a similar dividend payout ratio, weren't

getting the same type of stocks every year nonetheless, right now, it would mean you're buying lots of energy, chemicals, pfizer was on that list, 3m had a rough year and that would -- that takes a little bit of a leap of faith to say they're going to get it together it is a sort of a mechanism to force people perhaps to be contrarian, which is always difficult. because if you -- you're buying disruption, you're buying disrupted companies, if you really want to buy cheap high yielding ones right now. >> like the nfl draft, worst teams get first pick. >> worst teams get first pick and it raises the stakes for the first pick versus the 30th pick. >> we'll watch that closely, interesting piece in the journal about wages, which will be a story next year as well as this year pointing out nonsupervisory workers, more than 80% of the labor market, rank and file employees, are seeing their fastest wage gains in a decade quote, a sign that the labor market has tightened sufficiently to convey bigger

pay increases to lower paid employees. >> yeah, it is absolutely been kind of a good trend that has shown up in this latest phase of unemployment and kind of notching below 4%. you to keep in mind, though, we had lots of minimum wage increases go in, beginning of this year. there is another wave of them coming -- in the coming year, so that, you know, is actually kind of worked to help favor lower wage workers and you're getting another round of it. interestingly too, of course, jay powell, the fed is saying that is not a concern right now. he wants -- overall inflation by their measure to really go above the target before they get worried about it so that's been something the markets have said, fine, that is a statement you want to keep rates probably lower than the markets and perhaps the economy warrant. >> david, i see you shaking your head. >> not a lot of red on my screen not that it is necessarily a bad thing, just amazing when you look at the stocks i watch and this is a random grouping of 100

or so whatever it may be so few users for the year. i guess there is a reason we come back to viacom so -- it is down 2.5%. you mentioned pfizer, of course, down about 9.5% this year. mylan deal, that deal where they were spinning off their deal to create that new company not particularly well received very hard to find -- to find names that really ended the year or going to end the year down at all. >> no, not the year. this -- this 52-week period is definitely flattering performance. there are a fair number of stocks below the all time high i think that's also worth keeping in mind. start with amazon, you know, above $2,000, and trillion dollar market cap and all the rest of it i think everyone can kind of feel like they get a trophy this year but because, you know, a good -- a favorable starting point, but also it has been a pretty inclusive rally. it has been kind of broad. despite the fact that the very largest growth stocks have an

outside effect on building a market cap gain, the s&p, it has not been to the exclusion of other stocks going up, just -- they have more power >> if you look at the ten worst performers on the s&p this year, they're all getting bought today. all ten. biomed, macys, oxy, gap, mosaic, macy's just went flat. that's going to be a sign where laggards get some love. >> and also laggards are absolutely being swept up. also brutal phase for short sellers. not that there is a tremendous short base in this market anymore. and interestingly the wall street journal had a piece today about how big institutional money managers are back to aggressively lending out their stocks to get income to short sellers. look at tesla. that's all you talk about, the obliteration of that very kind of entrenched short base now, to me, i don't know if it has gone away or basically just taking the pain at this point. that stock making new highs. >> yeah.

well, significant new highs, well above that old 420 price we were talking about just a few days ago as it passed -- i'm looking at some of the groups that have taken off in the last three months and they are financials which have gone almost parabollic since october. does kind of move along with that non-qe we were talking about at the fed and then healthcare related names as we pointed out so many times as elizabeth warren's poll numbers seem to fade and the concern perhaps fading along with it, of warren administration and what that might mean broadly speaking for the healthcare industry. those names have caught up almost. >> yes, and in both of those instances, it shows you how the market likes when you get afraid of something that doesn't come to pass, that's when you get the best gains you were afraid of policy pressure on healthcare, but also inverted yield curve in the summer was, you know, keeping a very firm lid on financial valuation, released that and now that creates the question for next year, because if the market

does best when things are going from kind of scary to not so scary or from bad to less bad, when people generally agree that the outlook is clear, it becomes more of a positioning game and have people raise their equity i allocations as you think they should big wave of inflows in january and do earnings come through. >> when we look at jpmorgan, for example, the largest of the big banks at this point with 430 plus billion dollar market value, and a move of over 42% this year, do we set up for potential disappointment if it doesn't deliver? what are the numbers that jpmorgan will have to deliver to make jpmorgan feel good about that. >> it trades at this big premium, it is kind of just, you know, my money is safer in jpmorgan shares, you know, than anywhere -- that kind of psychology that surrounds it i don't think it is about -- they have to make the numbers. it reflects the fact that the bank does tend to make its

numbers. and usually aren't any nasty surprises. but i think that it is really the revaluation of the also rands really interesting, cheap stuff like citi and b of a. >> amazing run and citi as well, up over 50% this year. again, a lot of that has taken place over the last three months. >> right >> in terms of outperforming the s&p. >> interesting to hear about head count bloomberg has this piece about job cuts at the banks. 77,000 -- almost 78,000 job cuts this year. the most since 2015. and about half a million in the last six years, europe accounts for 80% as negative rates over there sort of did in their model. and technology too. >> exactly negative rates and this kind of permanent mode of kind of retreating from the older business models and trying to figure out how -- what the right footprint is for head count and for size of cost base.

and, you know, that's -- the numbers don't change that much the banks are not doing crazy stuff. you don't have to really worry about credit things right now. it is much more about what am i going to place on a dollar of earnings today or dollar of dividends today in a world where we are not expecting a recession, you don't have to think like credit costs will go up that much >> c & i loans showing a little life >> soft patch. >> not a lot of corporate news to share we have a bit on our own parent company comcast, the journal reporting, julia boorstin confirming that comcast is in talks to buy what would be the free tv video streaming company zoomo. julia is reporting says, no, that they have confirmed it, but no comment from comcast. of course, not a surprise in a way when you think about the launch of peacock coming mike cavanagh spoke about this a couple of weeks ago at a media

conference, specifically saying they will ramp up quickly next year, spending on peacock to get to over the first two years, will probably be about 2 bill$2n billion of aggregate investment. he said hopes to break even by year five. it is a different streaming service than the ones that were accustomed to now. netflix, amazon, disney plus, and the like, it is ad supported, free to comcast subscribers and making efforts to make it free to other subscribers as well or other cable subscribers. it is going to be reliant on being supported by ads pluto bought by viacom they made the growth they had in that platform. when disney was building its service, it wasn't for its -- it wasn't for its subscriber base in any way, for its technology buildout in terms of the actual ability to stream and the technology they had. >> it has been interesting since

disney plus has been out, there has been some scrutiny of just the kind of quality of the stream and the stability of the video image and syncing with sound, netflix i think had that figured out for a long time. and you don't think about it and disney there was some, you know, hiccups and even with amazon, they had -- it is interesting the back end of it becomes very important stability of that. >> it has been a while one christmas eve, netflix had issues, but it has been years. >> they're continually improving the interface and the service and we all know that things come up right away. you can see the previews, not something a year ago you were capable of doing with netflix. you're right, this is not an unimportant part of streaming as the technology behind it and the investment that needs to be made. >> still fun to explain to kids how when we were little, you couldn't just watch anything at anytime. it is amazing. >> yeah, exactly waiting for the letters in the

mail checking the tv guide. >> right. >> record highs across the board on this friday let's get to bob pisani. >> happy friday. little bit of a nasdaq obsession going on there is a lot of other things happening as well. cyclical rally occurring, very, very noticeable. if you look here, retail has been outperforming, emerging markets have been outperforming. china, this is mca outperforming, semis outperforming, even energy has been outperforming maybe a mean reversion i'll talk about that in a minute we have a global cyclical rally, but particularly a global tech rally going on here is some of the big global names, samsung, taiwan semi, tencent holdings, gaming over in china, they're all outperforming. not just today, but on the month. this is a global rally going on. carl is right to point that out. we're a bit overbought what do you want we're up almost 4% on the s&p

500. i look at the short-term rsi, you get over 70, you're overbought it is hard to keep moving forward with that kind of pace and usually it slows down. even the s&p also overbought predictively we're getting discussions about it is time to rebalance. the end of the month, this is a little squishy to figure this out. pension funds rebalance when they get very big weird moves like with the s&p up dramatically here. the 20 year treasury up 4% overall. not quite 80% on that. down 4%. get imbalances going on. that's a little bit odd. you get to talk about rebalancing going on toward the end of the year. that will probably happen as well one thing really noticeable, the whole mean revision story here energy has been the single sector that has gone nowhere in a decade the worst performer, not just this year, but the decade. we are getting rallies here. very good reason we're getting some of these rallies. particularly exploration

production and oil services companies like halliburton, schlumberger doing well. oil moving up here on the month. put up the next chart, you see that higher oil going on. north america situation not getting worse, the supply and demand situation is not getting worse. the mean reversion trade is very big. stocks decimated over the last four or five years and there are some potential opportunities if the situation stabilizes if you want to be a real cynic about this trade, let's buy oil. what is missing is real upturn in earnings. we don't have that yet we don't have a lot of cash flow improvement overall. you can be cynical and say this is great, we have a multiple expansion, but don't have a lot of improvement in the fundamentals that's sort of correct what we do have is much more stable situation concerning dividend yields. and so you got some companies out here that are four, five, s 6% dividend yields

that's on the high end but the important thing is that -- this situation is not as dangerous as it was two years ago when there was dramatic discussions of, oh, no, you don't want to get involved in this, you don't want to face a potential dividend cut much more stable that's starting to attract people as well big pipeline company so overall, maybe some mean reversion going on but i think there is some argument to be made that energy should be looked at more closely in 2020. guys, back to you. >> interesting looking at those names, reminds me nat gas at all time lows. that's worth mentioning. thank you, bob pisani. more on today's movers now, over to the nasdaq and check in with frank holland. >> good morning. the nasdaq starting the day hitting a fresh intraday high after the open so far today, apple is the best performer, up about a percent, following news it has plans to buy a smartphone screen factory from japan display over in japan. that stock moving higher today we're on a fresh record high watch for apple.

and two other faang names including google and facebook. google is trading a bit lower now. we're also keeping a close eye on the ibb etf, biotech etf, trading lower today but on pace for its best year since 2014 since the open, consumer facing stocks, pepsi, kraft heinz, surge earlier today, strong showing for them as we talked about yesterday, consumer facing stocks pushing the nasdaq from 8,000 to 9,000 and, carl, back over to you. >> all right, frank, thank you very much. when we come back, the 2020 playbook on the delivery wars as we go to break, look at the movement in treasuries we continue to look to see how the bond market is viewing this ongoing rally in equities. we're back in a moment (vo) in every trip, there's room for more

than just the business you came for. whether that's getting a taste of where you are, or bringing some of that flavor back home. that's room for possibility. ♪ let's get to living to take care of yourself. but nature's bounty 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. how will the amazon effect come into play in the new year frank holland has the 2020 playbook on the delivery wars.

>> reporter: 2019 is on pace to be another record year for e-commerce with holiday online sales forecasting to increase as much as 14% according to the national retail federation. and the trend is expected to continue in 2020 here's what to watch first, e-commerce exceeds expectations the global e-commerce market could grow to $4 trillion in 2020, according to ubs but has the potential to be even larger as more retailers offer same day and next day shipping with added curb side pickup options. also, total sales made by smartphone are expected to increase by 32% next year, according to emarketer second, amazon acquisitions. amazon's e-commerce empire is built on strong logistics on the ground and in the air. amazon currently operates about 50 planes and expects to have 70 flying by 2021 look for acquisitions in 2020 as

it continues to grow its capacity for ground logistics and delivery and, third, drone delivery fedex and u.p.s. are battling to be the leader in residential drone deliveries amazon and and retail goods amazon and google has eyes on the skies when it comes to shipping 2020 may be the year e-commerce takes flights in a whole new way. it's been an interesting year we talked about extensively about amazon at the top of the broadcast. the spending continues they're obviously rolling out a significant competitor on the ground and/or -- they're not using fedex at all anymore >> and in general it seems like the market is unsure if the delivery companies can capture margin, even though the demand for instant delivery is going

up the volumes that are put through the system is going up u.p.s. is flat over two years. it seems like that's the paying point in the delivery chain. they're the companies that are just absent software and traditional retail that had a bit easier. >> rebound in global trade wouldn't hurt anybody. >> absolutely. speak of amazon, it's topping this morning's list of s&p 500 gainers, as we look for record highs the dow is still up 51 points. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected.

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another box office hit for the "star wars" franchise. they took in 32 million on wednesday. the global haul for skywalker now passing 500 million in eight days, despite some of the reviews we talked about just a weekend ago. >> yeah, exactly maybe proving it's critic-proof at this point? who knows.

whether i, you joe, no really know it seems like the training of do the christmas day release is indicated. >> i've answered lots of critics about the costs of the film. it's already turned out to be an amazing purchase how much can they make without over-saturating the demand for towar "star wars"-related -- >> and the mandalorian seems to be doing well. i just watched that -- a very different role for him. >> netflix has marriage story, the two popes, obviously the irishman we're getting to the point if

you want to be probable oscar noms, you're going to want netflix. >> we're going to watch the second half at some oint. >> scorsese, why would you go it limited release, but if you get creative free bottom it is still in some theaters you can have it both ways on some level it wasn't going to be a six-we'll broad release. >> you have your top ten >> i should make one. >> you're very good at these things. >> with kids it would be jumanji, frozen 2. when we come back, nasdaq, 9k and beyond we'll talk about a fed chief about it, the dow is up 37

good friday morning.

welcome back to "squawk on the street". record highs across the board until we settled back a bit. the s&p has gone a bit red the dow gains are about to disappear. the s&p closing in on its best yearly return since '97, with the nasdaq trading about -- we'll talk to former atlanta fed dennis lockhart sgloo. and more next. the nasdaq on pace for 11 straight days of gains joining us is david zervos, and timer geist.

happy holidays are we in silly season or not? what needs to go right to ratify this move. >> this has been an all-year phenomenon, but the theme is the theme. it's that the fed is very much on hold next year. the fed is much more likely to ease than tighten. they laid out i think a pretty good road map for us on interest rates at the short end they want to change their inflation targeting regime, which is very bullish. i think it's a nice setup here the interest rate landscape looks pretty favorable for stocks and multiples >> does that story get extended as we get rotation in voting members? more dovish? >> i don't think the rotation will matter that much. the resident, as much as i lov

to hear from them all at the time, it will be the core of the board that will guide everything. >> are -- is the fed more likely or less likely to make changes in an election year? >> much less likely. if they can hide behind the curtain and pretend they're not there, they would love to do that if the markets get rattled, if geopolitics gets spiked up, markets will talk about them being political against on the other end. the bar is pretty high, but it's much higher for a hike >> is your appetite sated given the last 11 sessions >> the fourth quarter has been a mirror image to the fourth

quarter last year. the decline was exaggerated because of the lack of liquidity, and i'm sure we're seeing the reverse of that this year, so maybe we shouldn't be going up quite as much what is clear is that markets add inflection points, the pd ramps up in anticipation of an earnings gain down the road. when we look at 2020, obviously that earnings game needs to happen or the market is over its skis, but my sense is that it will happen, so maybe up 7%, 8% next year, maybe not the 10% expected, you still get a pretty good outcome for 2020. i remain constructive. i think the rotation that's under way out of bonds into stocks, out of large into small, out of growth into cyclicals, though certainly growth stocks are doing very well as well. i think that lasts into next year, well into next year, and e.m. probably could be the

shining star, sort of like it was in 2017, but all in all this exactly like a secular bull market, and i want to respect that obvious what the tape is doing is as important as what we all think it should be doing. >> yeah, just to dig inside more, you talk about the analog of '95, '98, 2011. if that's the case, what are your expectations for 2020 >> if you take -- right now earnings expectations are $175 off of the base this year of 161. that 175 probably comes down a few dollars, because that's what typically happens. even if does you get about 2% dividends. if the p.e. gives back some of the ramp we're seeing this year, which is expansions take turns with growth in earnings, just because markets are discounting

the future, especially at turning points, so i could still see a high -- certainly not the 30% we're seeing this year it's amazing that 2019 actually is shaping up to be an even better year than 2013, which was a 32% year for this to happen in the tenth or 11th year of the secular bull market is really pretty impressive >> david, if i could turn to the fed for a moment, we were talking earlier about this non-q.e., with about 101 billion a month the last three months, educate us does it mean a lot not much what is it doing, if anything? >> you know, i think david, you can point from july when we first broke out to the new highs and took on the 3,000 in the s&p, we kind of went nowhere well a sell-off in the summer,

came back, and all of a sudden this fed announced a non-qe, and the ramp began i think you can correlate it very well, so i think a lot of this liquidity is added commitment to making sure reserves are in the system it's really adding some short-term fuel to the fire it's a big deal. it isn't easy. it is like cutting 25 base points no matter what they tell you, when you add reserves to the systems and you extract securities, you are easing, creating easier financial conditions you can go bass to ben bernanke's piece when he was discu discussing qe. they don't want to say it, because they're afraid to say they're easing aggressively, but doing it for the money markets,% there are side effects and

consequences this is a lot of what i think is behind the ramp, but i think they're supposed to be, in a way. they kind of over-tightened last year, we got the three cuts. we're still not getting the inflation anywhere near target. >> except in asset prices. >> but that's not the cpi. we could have a long discussion about this asset prices are the way we get consumption tomorrow or in ten years. what people really want is that their 10 and 20-year horizons are covered. a lot of that, actually is will es about the fed and more about demographics and longevity, which is another session we could spend a lot of time here talking about, which i love to talk about >> we should do a special on demographics. >> and aging people need that consumption in the future much more than they need it today.

that's driving asset prices a lot more than fed policy, in my p opinion. >> jurrien, do you agree >> if we can sum up the key story for 2019, it was that the bond market put the fed on notice, via an inverted yield curve, that the fed was too tight, and it listened, and it kurt three times quickly, went to expand the balance sheet at a rate much faster than shrinking it before, when you look at what ends bull markets -- maybe it's a central bank that commits a policy error either for justified reasons or not, and this year, you know, the market sends the message to the fed through the curve, and the fed responded almost immediately it may not have wanted to, but

it did to its credit, it saved the day, if you will. so i do think the fed has been a very important player, also promising to not tighten unless inflation really, really starts acting up, almost by definition, if we're seeing some sort of global recovery, even muted, if the fed stays where it is and the economy expands, and therefore the neutral rate goes up, then by definition the fed will be more dovish next year than this year, even if it doesn't cut rates at all i think that creates a very bullish backdrop for the stock market and other risk assets you're seeing it with credit spreads, and again liquidity is part of that story, but definitely that's a very big part of the story, so i agree with you >> that explains a lot from what we've seen, at least this quarter. guys, thanks

>> thank you. >> thank you. the nasdaq closing above the 9,000 level for the first time ever dom chu is looking at which stocks power the group higher. >> let's talk about the setup first. the road to 9,000 has been choppy ever since the dot-com bubble we peaked at around a,000 back then you fast forward to even the depths of the finance crime, here we are at 9,000 for the nasdaq remember 8,000 was back on august 27th, 2018. as we talk about the drivers, over the past decade, netflix again up almost 4,000%, marked access, biomed 2100% broadcom over 1600%. now for the last push between 8,000 and 9,000, there have been

two key industry groups. first the semiconductor stocks, the chip ones, on the nasdaq composite, that semiconductor etf is up 30%. amd, within that, up 82% universal display corporation of, and lam research up 67%. the other one is software and services that particular group is also up big. and within there, up 116%, the trade desk, and avalara up and you take in those big fang-type names, they could be the ones that if we were to make the next push to 10,000 could be the ones that focus on as well for traders. david, back over to you. >> thank you, dom.

still to come, the trump stock market we're going to break down how this record rally compares with past u.s. presidents as we head to a quick break, china's trade news has dominated the headlines all year long. here's a look at what to expect from china in the new year investors will have a lot to work for in china in 2020. first a phase one deal is expected to be signed in january, trade negotiation between the u.s. and china will continue as the u.s. presidential election approaches there will likely be uncertainty over what major american tech companies are allowed to trade to the chinese and whether chinese tech firms will be blocked from doing meaningful business in the u.s. second, china's economy will remain in focus as leaders look to manage the lowest growth in decades. policymakers have indicated they would prefer to stabilize it

rather than use policy to reverse it and third, unrest in hong kong, and how beijing handles that conflict. robinhood believes now is the time to do money. without the commission fees. so, you can start investing today wherever you are - even hanging with your dog. so, what are you waiting for? download now and get your first stock on us. robinhood. there's room for more than just the business you came for. whether that's keeping up with what you always do... or training for something you've never done before. that's room for possibility. ♪

embassy, of course has had a very strong run in 2019. record highs again this morning before we backed off just a bit.

as we head into the 2020 election year, it is worth noting that from a stock return perspective. president trump's stock market rally is out-pacing past presidents since his election. let's bring in "new york times" columnist jim stewart, also author of "deep state. i hope it was a christmas gift for many people. i know sales have been very strong. >> i certainly hope so >> as do we all. well, look i think we have to recognize that the trump, on fairness grounds, but the stock market looks at earnings. that tax plan was a huge gift to corporate earnings

i think you saw it flow there immediately. it is an earnings driven market. it's sort of sitting squarely on the average. look look, the market goes up, and i think the bottom line is, yeah, earnings are a lot better. >> it's interesting how i will look through an earnings release, and how it's something like 12%, 13%, even below the 21 we sort of anticipate the no question it is good for shareholders and that's been a significant contribution

personally i don't pay much attention to the p.e.g., but let's face it, when you have the growth projections, even a forward p.e., you're putting in assumptions about the future at some point that starts to be a guess. i think the collective wisdom of the market is often fallible, but we think it's probably as good at gauges that as some arbitrary rpg measures it's also a significant amount of deregulation. meantime, the waging of a trade war on multiple fronts it almost begs the question, what is more important to the market the deregulation or the trade wart

>> the unemployment rate i mean, the low, low unemployment rate they haven't had that kind of money, and they're pumping that into the economy. they piece spend the money when they get it it's plowing through the economy. i think that is a very important part of the robust economy the tariff wars have gotten a lot of media attention, and the absolute numbers involved i think still are relatively significant i think the stock market has tended to exaggerate the potential impact i'm note for the tariff wars, but they haven't really cut

significantly into company earnings yesterday and -- i think. >> what about the tariffs with europe we have a tariff war going on with europe as well. it's a little different. and gave the u.s. permission to slap it at about 7.5 billion now they're ratcheting up to 100% you can say what consumers

butit will be on all scotch whiskey, on champagne france is getting very hard hit. all french why, cognac, the italians are get hit spanish olive oil. these are all direct-to-consumers products it's going to be a shock when you walk in next year and a $50 bolts is now 100. >> would you expect we would come to some sort of comprehensive trade agreement next year?

>> trump has certainly been talking about a huge things the united kingdom once they're out of eu. he likes them being independent. he wants to link them more to the u.s. i think he would like to come up with something dramatic there, but i have to say, at the on moment, you know, we're hitting the uk very hard with these 100% tariffs. so far there's been no budging on this. is the eu going to give up the subsidies to airbus? we'll see, but or oldest, biggest trading partners, democratic allies to be fighting over things like whiskey and champagne? i mean, come on. >> some would say, well, tell the french to get rid of their digital tax. >> europe has a lot of policies that we could take issue with,

but let's tackle those on those grounds. >> clearly it's an issue with scotland >> it's not a sore spot, but my heritage. >> jim, thank you. jim stewart. when we come back, the road to 900 more when we return.

a plane with 98 people on board crashed in kazakhstan shortly after takeoff. a 4 passengers we 54 passengers were hospitalized they are looking at whether pilot error or technical factors were factors here. the crash prompted officials

to temporarily close the waterway which runs through turkey's largest city. benjamin netanyahu celebrating a victory. bad weather did cause a low turnout of voters. the stones had the highest grossing tour in america this year clearly they still have it that is our cnbc news update this hour. back to morgan >> that's incredible thank you. it's been a record week for the major averages, a historic with you, and former nasdaq and

chairman great to have you here. >> my pleasure to be here today. >> when you took over, in 2003, it was after the tech bubble burst, the index was around 2,000, would you imagine that to close out the decade we would be talking about 9,000 today? >> i wish i could say i imagine that, but i really could not conceive of that it's been remarkable >> in terms of the nasdaq composite, if you actually look at the companies that having powering this move, almost a they are of the weighting is from five names. how is this move above 9,000 when you think about it in those terms? >> i think it's very sustainable. you have to understand these companies, not just those five, they're fundamentally based upon technology in the marginal

revenue dollar tends to drop to the bottom line. one of the questions i've been wrestling with is you have gdp growth at around 3%, how do you reconcile those two factors? in the research i've doane, you see the dow jones index core rated to the gpt growth kind of fell apart a few years ago,s if you see understand the busines model, you can certainly see a strong path forward. >> and it certainly feeds into another point which you make, which is tech innovation is ushering in a new economy. >> when you look at the world, if we have 3% gdp growth, and that -- you have to recognize that 3% revenue growth could easily derive 10% profit growth.

that's what you see the top nasdaq companies have. if you have so% proved growth, and amply if i that by certain measures, you can certain see nasdaq going a lot higher than 9,000. >> i've got to get your thoughts on some of the discussions, some of the proposals we've gotten this year, for lack of a better word, bringing private market investments to the public market, whether it's direct listings, whether it's facts, now the s&p proposing more action, i'm starting to see the lines blur how you does that play out >> i would say this. i am strongly opposed to the s.e.c. opening up private markets to regular retail investors. i think that will end in tears you don't see what we call common stock every stock is some kind of

preferred, with some kind of liquidation references it takes bankers and lawyers to really understand that i'm fortunate to have those resources available to me, but that's not available to most investors. even those professional investors who have those resources, obviously can get it quite wrong which we sea with weworks. so a regular investor trying to invest in private companies when it's quite complicated, will definitely end in tears. the only way to see a path to do this, that the directors don't directly invest, but a company such as blackstone or carlisle representing them in the marketplace. you have to understand it is not the public -- you have information asymmetry, and a cap table is typically weighted against you. >> interesting to hear you talk about it that way.

>> the private market valuation is different than the public market so when you see these private market valuations, you have to recognize that there's a contract related to that, and there's economics in the terms in that contract that doesn't really translate directly into the per share price. you have common stock, a price, and there's no extra terms to it you can buy and sell it, so it's somewhat apples and owners when i have they large investors making private market investments, they're not just buying generic common stock. you have to recognize that, and there's a valuation gap associated with that. >> though we're back to the argument then again, bob, why average investors should be locked out of the period where

these companies are going through hyper growth the only other solution would be to let's shorten that to ipo, that clearly isn't happening yet. >> i understand that everybody wants to get on the winners, but we have to study the fact that moth of these early stage companies fail, right? so you see the common information you read is about 92% of starter companies fail. mea research is that it's probably around 60%. le let's call it 50% that means 50% of the time you could end up with a goose egg. this has to be money you did lose that's a very narrow wind for investors. >> the greater good is obviously to let the investors be protected, not get in a situation where there's information asymmetry, and even if they had all the information, the chances of binning is is it

ilonly 50% as i said if you have a company such as blackstone represent you and pay the feet associatewood that representation, you could argue that's a decent way to go, or if you had an etf representing a basket of these where you weren't picking the one winner out ten, i could get behind that that in some fashion. >> thank you for joining us. with the nasdaq. when we come back, the economic forecast. when "squawk on the street" continues.

well cull back to "squawk on the street." we've seen the fed cut rates three times this week chairman

jay powell says he expects moderate economic growth to continue, but will that be the case 2020 joins us is denis lockhart good to have you back with us. >> good to see you i would like your take on the overall narrative. peak trade tension, maybe peak regulatory risks, fed's comfortable going into an election year, and maybe to 20 is the year we could go above trend again. what do you think? >> well, i think the best forecast is the continue ways of on the moderate growth we have seen some of the certainty, some of that uncertainly is lifted, and so i think we have a rather

benign outlook for the year. it's not gangbuster, but a good solid performance i think ahead of us. >> we've been talking all morning long about the fed balance sheet and this $100 billion a month pace, does that continue after year end? how much is it solving versus creating unintended consequen s consequences. >> i think they're trying to make sure they have enough liquidity in the system top calm or let's say steady markets. that's a bit of a trial-and-error kind of thing. they have been injecting more bank reserves into the system to try to make sure that repo market and then secondly continues without undue

volatility that may take a little longer, it may go into the year, but i don't think it's an indefinite policy >> he did say earlier this morning that it was unlikely to have macro implications, this repo volatility, that purchases were going to plan, and money market pressure was subdued. does the need for this expansion change afteree end >> well, this is not an expansion of the bleed balance sheet that's trying to juice the economy in some way. this is an expansion and jay powell has been very clear this is not an a renewal of the the quantitative easing. this is an expansion that is really designed to deal with

this very important funding market, the repo market. the general public is not well understood, but it's an extremely important market other markets will feed off of what's going on. that is the purpose of this particular expansion of the balance sheet. >> i get the fed has been pushing back on the idea that it's qe, but these he according to peter -- the monthly average was 80 billion a month even if it's not actually qe, if you see the fed pulling back on this at some point next year, what would be the effects on the broader market >> i would expect that they would pull back if they were satisfied that they had got the level of reserves in the broad

system correct this -- if you think about what led to this situation, they were in a normalization of the balance sheet mode they were dropping basically reserve levels to try to find the optimal level of reserves, and there was some miscalculation as to what the distribution of reserves would be among the banks and what would be the behavior of some of the key banks that were the large holders of reserves. so now they're trying to rectify that once they get it right, i would expect them to back off. >> dennis, just to look around the world a bit, as we head into 2020, we're seeing a stabilization in terms of global economic growth going into next year, potentially more clarity are are or at least moving forward when u.s./china trade talks are a concern down the line, what does that means in

terms of central bank policies, and specifically negative interest rates, and whether we start to see a pullback on that? >> well, we have already seen sweden pull back on negative interest rates it wouldn't totally surprise me if some of the other central banks try to move their sovereign rates into positive territory. i think that would be a good sign this negative interest rate environment has been extraordinary. i looked at a table that was put out by bloomberg in october, and there were 14 countries with negative interest rates out to ten years, and three with negative sovereign rates out to 30 years i mean, that is an unprecedented extraordinary environment, and

as the growth picture improves even a little bit, i would think that central banks could move away from that policy. the long-term consequences of negative interest rates are, of course, unknown, but i think there's a lot of very prudent talk about the impact on the banks system in some countries, and so i would certainly look to see that be a development in 2020 >> certainly one of the most significant debates of the year. that's for sure. dennis, happy new year, thanks for your time. looking forward to seeing you in 2020. >> happy new year. thank you so much. japan's softbank losing a critical voice on its board. josh has more. >> after serving the board for more than 18 years, the founder,

tadashi yanai is leaving at the end of the year, one of truly independent voices on that board. you look at -- all executives, and simon seeingers, the head of arm. and the head of saudi arabia's average wealth fund is the largest contributor, he's going to play a critical role in the softbank's attempt to raise the second --. a professor at the university of tokyo, and yani who is leaving that comes at a time when investors are raising concerns about -- it sundyani has been of

the few dissenting voices there. they share things in common, including taking their companies public in the same month it was there is no word yet on who will replace him josh, thank you. am southeast looking to disrupt traditional shipping giants we'll break down the delivery wars that's when "squawk on the street" returns. we're carvana, the company who invented

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stocks could be headed to a press sip tuesday drop, more on the pullback risks on trading flation on cnbc.com. more "squawk on the street" is coming up.

(vo) in every trip, there's room for more than just the business you came for. ♪ whether that's taking in every moment... or capturing a moment worth bringing back. that's room for possibility. ♪ how far we can go, oh oh ♪ how will the amazon effect come into play in the new year

frank colin has the 2020 playbook on the delivery wars. >> 2019 is on pace to be another record year for e-commerce with online sales, and the trend is expected to continue in 2020 here's what to watch first e-commerce exceeds expectations but it has the potential to be even larger as more retailers offer same day/next day shipping, and added curbside pickup locations second, amazon acquisitions. amazon's entire is built on strong logistics on the ground and in the area. it currently operates about 50

planes and expects to have 70 flies for 2021 look for acquisition in 2020, as it continue to say grown its capacity. third, drone delivery. fedex and u.p.s. a battling to be the leader. they'r they're testing with drugstore chains for prescriptions and retail goods amazon and google have their eyes on the skies when it comes to shipping. 2020 may be the year e-commerce takes flight in a whole new way. >> all right, frank holland joins us for more. frank, that last bullet point you put out there about drone delivery, last night, the faa releasing, finally, the proposal to plant, identify, track u.s. drones within three years. seen as sweeping potential regulation that could finally start to move the process forward. what are the expectations for more drone deliveries, and

specifically package deliveries to consumers heading to 2020 are we finally making movement on this front? >> when i talk to executives from the major companies, they're not giving details 2021 seems to be the earliest we see it on a grand scale. u.p.s. and fedex are testing drone deliveries with cvs and walgreen's how do you use drone delivery, is it a supplement to a truck or way to deliver on its own. probably the best way to use it is an apartment complex where a drone can drop off small packages at a centralized center, people pick it up from there. house to house, probably not happening anytime soon >> how has the holiday season been for some of the delivery companies, how have they performed versus years prior >> it has been very busy, of course e-commerce growing steadily. on time rates are pred ee good all of them above 99%.

anything above 95% on time deliveries pretty good you have to remember, every tenth% is 86,000 packages didn't make it on time. you see squawking on social media. people said packages may not have gotten there. overall from what we're seeing, for the most part everything is on time, volume is exceeding original expectations before the holiday. >> add me to the list of squawkers. i had a few packages that came late that said, certainly this season was watched closely, given that it was the shortest since 2013 when there were a lot of late packages back then as well frank who wiholland, thanks. >> thank you. my segue into winners of the week, which includes amazon with a bunch of names beginning with the letter a, apache "squawk on the street" back in a minute i'm good.

♪ how are you? hello grandma! for every family going home for the holidays, there are countless people working to help them get there. thank you to everyone we rely on to get us home to the ones we love. ♪

billionaire microsoft co-founder and one lucky person's secret santa. bill gates participated in the secret santa exchange. gates has been participating since 2013 this year he matched with a michigan woman who received an

81 pound package worth of gifts, tailored to information posted on her profile, including a hammock, oreos, manuscript edition of the great gatsby signed by gates, toys for her cats, a donation to american heart association in memory of her mother that died earlier this year. be nice to see more billionaire co-founders and ceos do something like that. >> i heart this so much. i love this so much. apparently the note he put in there, i know no gift will ever makeup for losing someone so important to you i hope you and your family find your new normal this holiday season in regards to loss of her mom. really touching. >> does bill gates, does somebody get him >> what do you get bill gates? >> maybe something homemade. >> something from etsy >> he can get just about anything he wants. that's very nice we watched microsoft shares among those hitting all-time

highs today, apple as well the march higher continues the country's biggest company adding more than 500 billion in market cap in 2019 should investors expect more ouom to run in the new year thgh we'll debate that when "squawk alley" starts in three minutes ♪ 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,

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good morning it is 8:00 a.m. at tesla headquarters in palo alto, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ good friday morning. welcome to "squawk alley." i am carl quintanilla at post nine with morgan brennan and jul julia boorstin jon fortt has the morning off. record highs at the open, a little dip that quickly got bought nasdaq up 9k yesterday, crossing 8,000 in august of '18 apple up more