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 than 30% in that time period.

josh lipton joins us with a look at the incredible stock, the incredible year. hey, josh. >> reporter: carl, that's right. as 2019 comes to a close, apple investors have plenty of reasons to celebrate that stock has enjoyed a remarkable run surging more than 80% this year. that means apple is on track now for its best year since 2009 another way, it added $530 billion in market cap this year. that's the equivalent of two netflix, three teslas, with a few billion left over. the nasdaq is market cap weighted, given apple's size, it helped to power the index to a record 9,000 level today, most analysts covering apple rate it a buy. nearly 60% in part because they think tim cook with the current lineup of devices will be able to keep iphone revenue relatively flat the next few quarters, even as services and wearables continue to go strongly

they're betting that should be enough to drive single digits growth for the company what are the risks for investors to consider? i caught up with gene munster, he cites two big ones. services and wearables don't grow as strongly as expected, that would tarnish the story he says what happens if carriers are too slow rolling out 5g networks, what would that mean for investor expectations about success and traction for the expected 5g iphone coming in september. back to you. >> going to be a huge story, josh thank you very much. along with apple, microsoft, alphabet, adobe hitting all-time highs, intel, levels not since 2000 facebook at a 52 week high tim lesco and mike santoli are with us. senior markets commentator tim, we talked about why collectively the sell side got apple so wrong this year why do you think it was? is it about the model changing

to services and the mystery of margins behind that or is it something else >> i think the mystery behind the move to services has been very well covered and apple seems to have successfully maneuvered from a company that made all of the cell phone industry's profits to one that's making profits outside of just the cell phone industry, and that took a lot. people expected maybe that apple would become the next blackberry, next nokia who once owned the market like apple does. >> we had this conversation before, worth revisiting it again, the idea of apple an indicator for the broader market. >> it is not so much indicator in economic bellwether status or something telling you about other parts of the economy that also effect the market but it is a marquise name when people want to buy market windows, momentum inherent in growth stocks, apple tended to participate. the thing is it goes on crazy

streaks. over the course of this year, it traded at 20% discount to the market in terms of price earnings ratio on a forward basis, now 20% premium it is not as if it is telling you anything about the business itself necessarily, it is about everything going right into the privileging, growth stocks, the market deciding the profit pool represented by apple is going to be durable also it is reliable. buying back its own stock but not selling any. almost has a scarcity premium embedded in it >> tim, curious for your perspective on tech stocks in general. seen a run up in tech stocks sounds like we need to think about tech stocks differently, they're not like tech stocks in the last bull run, they're more like utilities explain your philosophy. >> you hit the nail on the head. during the 2000 run up in tech, 1996 through 2000 when

technology was in its stages, web browsers getting huge premiums, america online was the tenth largest holding in the s&p 500 at the time. and technology was really used by businesses to make themselves more efficient beginning to stracratch the sure to the consumer. now it is everything we do hard to look at industry that doesn't use technology, cloud based services or devices to drive business maybe technology is a staple now, not a sector people need to worry about. >> mike, do you agree, do you think we're seeing a change how tech is treated moving forward >> i agree in the sense that stability of the revenue and profit pools, when you talk about the tech sector as this block of the market, it is important to know what you're talking about when you talk about the s&p tech sector. 40%, apple and microsoft another 10% is visa, master card, which are software

utilities, payment processors. it is not like it used to be, a boom bust. semiconductors cycle driving the market it does seem to have taken on those characteristics. still, what do you pay for a consumer staple or for a defensive growth stock that becomes the question. nasdaq trades 23 times forward earnings highest in ten years nowhere near 20 years ago. >> 5g, tim, continues to be less understood story now than it will be later obviously, but i wonder, is it a consumer story or enterprise story. we heard both. >> i think like any technology, it will start as an enterprise story until you have enough devices, enough network, and enough software developers developing the cool next generation of apps that benefit from 5g. 5g we'll use what we already do faster, more ubiquitous, remarkable effect on streaming service business, which is

another industry that wasn't technology ten years ago, twenty years ago. to add to what mike said, if you look at what made up the s&p 50020 years ago, it was procter & gamble, walmart. now the top ten, 8 are technology stocks. number five, berkshire hathaway. it is hard to not see technology driving the market whether up or down. >> to dig in more, might not be faang per se this year, certainly netflix has fallen off a little in terms of dominance, but nasdaq composite, another example. when you look at it is weighted by market capitalization, a third of the index is waiting, microsoft, apple, facebook, alphabet class c shares, if you go further, alphabet class a how sustainable are these moves and how much of it is really n centered around big cap tech companies. >> the market has it right, these are entrenched platforms,

in a long term way going to be able to remain that way and kind of grow faster than the overall economy. that's what the market is saying that doesn't mean any price you pay is reasonable for it i think that's the argument we're having it is not so much are these great businesses, they're valued where they are because we know they're great businesses that's not the disagreement. the disagreement is are we getting overexcited in the short term. >> tim, a question about tech losers looking at some of the companies that had rough years in the tech sector, june perfect network down, alliance data down 26%, dxc technology down 29%, are there some through points here for the losers, certain trends you think might continue for next year? >> well, yeah. i think in the losers in technology space, you had semiconductors that have been in boom, bust cycle based on trade talk and trade rhetoric, although we are headed into a 5g

world. then you have cloud services providers that aren't keeping up with amazon or with google or even with apple when it comes to consumer based cloud services. so i think it has gone into a winners and losers, not necessarily any area of tech you want to stay away from >> so then in light of that, tim, how much of this hinges on interest rates staying low and is tech, some of these tech names we have gone through still the best places to be in the market more broadly? >> maybe to make a broad generalization, interest rates matter for everything. and market multiple we are getting on the s&p 500 as a whole could lead to higher pe ratios for particularly growth stocks that said, some companies are so cash rich, higher interest rates don't necessarily effect the ability to continue to develop and make money >> all right

certainly that wouldn't surprise anybody. thank you, tim good to see you. oil inventories are out. let's get to dom chu for numbers. >> morgan, we have oil prices hovering around a third, 61.55 last trade for wti crude numbers from the energy department showed oil inventories this past week dropped by 5.5 million barrels that week, ending last friday. the consensus forecast compiled by dow-jones predicted 2.1 million barrel draw down, bigger than expected prior to figures released, oil hit a three month high before dipping in negative territory for the day today. right now, $61.44. remember, morgan, a lot of the rise in the last couple of days had to do with christmas eve with american petroleum institute data showing much bigger than expected draw down in oil inventory again, perhaps a little pull

back, hovering near three month highs. back to you. >> dom chu that you know. when we come back, musk magic. the stock hitting another record high this morning. we speak with tesla bull kathy wood, that's coming up after this break

welcome back to "squawk alley. shares of tesla continuing the record run, pulling back after hitting 435 earlier in the session. plans to build model 3s at the

shanghai factory starting monday they'll make 250,000 vehicles a year at that victory good morning to you. the rally we have seen in tesla shares, how much of this is tied to china, how much is tied to the fact that people seem to be or investors seem to be buying into its production goals overall more broadly >> i think it is both. i think tesla managed to actually meet its ambitious production goals, although it was rocky for model 3 when it launched and hit the production ramp now a massive new market in china is opening, they're going to deliver a lot of cars there chinese government is committed to electrifying the vehicle base, offering incentives to tesla to do it, letting them build a factory there, first time an american factory pulled

that off, and they have a sparkling brand in the u.s sparkling brands do well in china when the government is behind them. investors are seeing a lot of up side in a massive new market for the company opening up. >> michael, i wonder if you think we are hitting a tipping point. teslas have been shipped all over the world for awhile now, but when you look at the manufacturing in china, fact it just secured funding for a gig a factory, moving forward on another factory in berlin. is this a company that has hit a tipping point in terms of becoming a global manufacturer >> terrific question i'm not an expert on stock i won't comment on the stock value, but certainly elon musk is the thomas edison, willie n wonka of our age some of the viewers may be interested to know that tesla's dominance, you mentioned earlier segment, there are technology companies clearly being priced

in or valued now as platforms of entrenchment tesla may have that halo as well tesla has followed behind, created behind it a wake in its wake, an eek ee systcosystem ofy companies, new storage companies, springing up in silicon valley after tesla has proven to be so incredibly valuable the brand is marvelous i would not bet against him in any way. he is pulling it off what would the company be like without him? i hate to think about it thank god we live in the time of elon musk. i am very excited for him. one question we might ask, and we can speculate, how much technology transfer will tesla have to do overtly or covertly to china as part of the distribution deal in china we know the chinese government is often insistent on a certain form of tech transfer implicit or explicit. well that effect tesla, create

or stimulate competition locally from chinese brands that seek to compete. who can know it is interesting to wonder about and watch as we see this development. >> that will be very interesting to watch, michael. question about the speed to market here. it is pretty remarkable that this is the first time that we're going to see a plant start delivering cars to consumers in 357 days after the factory's construction started this is a company that's had production delays in the past. what is the speedy delivery telling you about future potential of the company >> ever see a tesla set up, it is all road blocks keep replacing humans with robots elon musk is able to pull off three global firsts before most breakfasts he can land a rocket ship on the ocean swell, twice with new

super fuel an incredible inventor i largely believe predictions that he makes. by the way, we can never forget the incredible power of his willie wonka style they root for him. they forget it is a for profit company. they forget they're in it with him, have a personal connection to him the man will sleep at the office to pull off that incredible speed to market you talked about. incredible firsts he pulls off all the time he makes a prediction, prognosticates, often delivers, sometimes overdelivers, sometimes behind, but even someone like that can be wrong sometimes. i think it is incredible speed to market is very important. that's one of the reasons people that comment on the space seem to think no matter how great vw is or how great ford is or other brands are, which are of course

incredible, his speed will keep him ahead. who knows if that's true, but to be sure, his speed is breathtaking in this and other endeavors. >> eli sounds like you have thoughts on this >> elon is great he is always behind. this is the first time he hit a deadline since he promised one and i think really the story is that they tried to overautomate model 3 production facility, and he had to walk it back he got this wrong. you can't automate a car factory this much. i think what you're seeing is tesla is learning what its limits are when it wants to deploy technology in this way. they're able to bring up the factory rate quickly assistance from the chinese government, china as a country is better suited to bring up massive manufacturing in this way. but i think the story is tesla is learning as a company that it has some limits. and all of the dreams elon has might be great, he might deliver on them over time, but to ship

cars, might have to do something in a more traditional way. >> see what that means in terms of setting future expectations california new privacy law is set to go in effect january 1st, could go natural jane wells has more. hi, jane. >> reporter: hi, morgan. which publicly traded companies are subject to the law everyone if you have just at least one consumer here. here's what we're talking about. any business with at least 25 million in revenues, or collects data on 50,000 customers, anybody with a loyalty program, makes half the money based on selling consumer data. whether in california or not, you have to tell californians what you do with their data, where it goes, you have to give them a button on your home page to opt out they can demand to know what data you have on them. it is a huge change. fines for violations will not start for months >> even though there's a lag

between enactment of rights and enforcement of rights, no one should believe that you can avoid abiding by the laws and those rights until enforcement starts >> many organizations are not going to be ready. there are certain governmental figures place costs at $50,000 for compliance, up to $2.5 million for compliance for this one law. >> that adds up to tens of billions of dollars. how are companies dealing with it microsoft will use that california policy as national policy google is making some changes. facebook, and julia can probably speak to this, facebook is pushing back it is subject to the law based on revenues alone. it is pushing back on what it thinks it has to disclose on its home page, suggesting under the letter of the law, it is not technically selling information to third parties, it is sending it to them guys >> jane, quick question. i think back to the emissions

stuff that happened earlier this year around the auto industry in california and the federal government stepping in and basically trying to take california's power away around some regulations any reason to think you could see something similar like that happen here? >> of course the president doesn't like california we asked the attorney general that question. he said look, we hope the federal government will do no harm and respect california. california is trying to change the way big economy employees are classified, clean energy standards. they're trying to set national policy from here how much the president takes notice, wanting to push back, i think that's a safe bet. >> all right thank you for bringing us the latest it will be a big one to watch heading into 2020. i want to get your thoughts since it seems like it is california's adoption of almost gdpr-like regulations, what we have seen in the past, this is across different industries, that regulations that california tends to adopt ultimately make

their way across the rest of the country. is that something that could happen again here? >> it will absolutely happen easiest way to deal with large population and marketing in california is implement the requirements and roll them out for everybody. the big question as you brought up, whether the federal government will react. we have been covering privacy bill that's bouncing back and forth between the house and senate there's multiple competing versions of it, they have been going at it a year, made no progress, even though there's bipartisan support for a federal privacy bill the real question is once it is in place, whether they use it as a floor or pass a less strong version and see california as the strongest protections. i don't really no the answer to that right now it has gone back and forth in congress so many times everyone agrees we need one. that gdpr has done good things, unexpected things. no one can agree on what that should be. >> there's also the question of

whether consumers care, if consumers click to opt out, michael, i would pose whether this is the beginning of a shift in terms of consumers trying to take control over their data and privacy. >> yes you probably know, i have been advocating for a privacy bill with teeth over a decade, and been calling facebook out on weasel words, we don't sell your data about a decade as well. they finally had to admit they share data for economic value. do i remember law school learnings back then, sharing for economic value in the case of rico, form of sale, yes, it is they have been sharing data for economic value, they have been precise about the weasel word. the problem is clear nobody expected the internet to create so much value from the basic proposition that offered this value the basic proposition for most of the history has been we are

going to make something, take your data without knowledge and permission, sell it to someone you can't identify that's how the first trillions were made. it doesn't have to be like that. it is an accident of the internet that it is like that. now with the rise of value services like netflix and privacy companies like apple and other companies that sell box top software through sass like microsoft, the great successes of the platforms and services, we know there's another way to create economic value. i think there's a concern that this will somehow strangle the internet was no longer think that, we know that argument was never true the good news is that consumers can finally know what companies know about them. they can finally understand that companies are sharing data without their knowledge and permission with people they can't identify for a purpose they don't know. they can see their own data trails and participate in the bonanza that comes from data is the new oil. i'm excited about this by the way, efforts in congress

for privacy are being influenced heavily by companies like facebook that are trying to basically create anti-privacy bill and call it privacy bill. i'm very worried indeed. good news, trump doesn't like facebook also doesn't like california see which one helikes less >> all right we'll see how it plays out thank you for joining us >> thank you when we come back, the latest move in the streaming wars we'll tell you what it is. "squawk alley" is back after this don't go away.

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european markets closing seema mody joins us with today's action >> hey, julia. another day, another record high for european stocks, headed for the best year since 2009 europe's rebound is paled in comparison to outperformance in the s&p 500. major averages across europe,

france, spain, russia, netherlands, belgium, russia trading in record territory. take a look at the ftse 100. headed for the 11th straight day of gains a number of energy and utility stocks across the country participating in the rebound that we've seen take hold in that country another bright spot as of late has been retail, even despite a lackluster boxing day, the day after christmas when the uk retailers roll out a lot of deals for consumers. analysts point to bad weather, competition from black friday resulting in a 9.7% year over year decline in boxing day sales. carl, back to you. >> worth watching. thanks let's get to rahel solomon for a news update. >> hi, carl. good morning here's what's happening this hour iran's armed forces holding a four day naval exercise with russia and china on the northern part of the indian ocean

iranian media shows video of a russian frigate docking at port. there are 28 dead and more missing. deaths are due to drowning, falling trees, accidental electrocution. taliban releasing 27 peace activists the day after abducted in ambush on a convoy in western afghanistan area insurgents ambushed the group. taliban haven't claimed responsibility for abductions. staying overseas chaos in montenegr montenegro pt trying to prevent the vote, lawmakers hurled what appeared to be a tear gas cannister in the hall police intervened.

that's our cnbc news update this hour. back to "squawk alley. julia, over to you >> thanks so much. when we come back, $420 and beyond gi breakdown what's behind musks tesla bull kathy wood is with us next e, struggles in the spider's web. with every attempt to free itself, it only becomes more entangled. unaware that an exhilarating escape is just within reach. defy the laws of human nature. at the season of audi sales event.

welcome back to "squawk alley. fresh highs for tesla. they continue a record setting run this morning joining us to talk about this, kathy wood her arkin ovation outperformed this year. one of the top ten holdings, tesla. kathy, welcome back. good to see you. looking at the action, almost 20% in ten days. are you walking around with more strut in your step when it comes to tesla >> yes, although i'm looking behind my shoulder, sit ron said we made a great call when it was down and out, we'll take our cards off the table, wait for a 100 point correction i'm happy the stock is not responding to that. >> how sustainable is this run do you think >> i think people are beginning to understand how important this story is to transition, to the environment. we are talking about exponential

growth in the electric vehicle space, the auto industry hasn't seen exponential growth in more than 100 years i think there's a sense growing as other auto manufacturers rush into the space, understanding how important it is that investors not on board will miss one of the biggest opportunities of our lifetime. >> if in fact they rush in as we think they will, and evs get commoditized, why shouldn't tesla be valued like a traditional oem? >> it is not a traditional oem, first of all, it is moving into a vertically integrated company as opposed to horizontal also again, we are talking about mature technology in terms of internal combustion engine versus new technology, battery technology suited to transportation completely different one is mature, hardly growing at

all. total auto sales we think have peaked the other is starting on exponential growth trajectory. we think it is important that other auto manufacturers get on board because they're going to face a shrinking market if they don't. >> as you look ahead to competition for netflix, i'm sorry, for tesla, sorry, thinking about other tech, competition for tesla, do you anticipate real competition being luxury automakers or other electric car makers, and which company do you think has the biggest chance of rivaling what tesla is doing >> there are four competitive advantages tesla has above anyone else. this has put them three to four years ahead of the competition battery technology in terms of costs. their artificial intelligence chip in terms of autonomous. their data they have 14 billion miles of data collected on the ev front and autonomous

front, they can't be touched over the air software updates that even volkswagon which aims to enable that has had to sell the first 20 of its id-3 cars, 20,000 id-3 cars without it, they'll have to go back to auto dealers to get that capability those are four competitive advantages that no one is close yet except for perhaps the last one. >> do you think elon musk's other company spacex in the middle of putting up the st starlincoln stel agency, the level of connectivity could be fruitful for autonomous driving. do you think we'll see more partnerships between the two companies? >> absolutely. they're definitely working in synch. you heard about the gaming capability that's going to be in the chinese cars

we wouldn't be surprised if satellite technology and tesla cars do start communicating and add another competitive advantage to finally on the chet bears carry around when it comes to tesla, leverage, musks antics and loss of subsidies, are those crossed off? >> antics, we keep our eye on the prize. i talked about four competitive advantages, maybe five soon to be, so -- >> you can't ignore his management style, couldn't with any ceo. >> i think the only time we criticized it is when he said funding secured. that got the sec on his back, on his case, which was a distraction for everyone we dinged our management score for that, we have a six metric scoring system we ding that then within a few months, they produced the ai chip which we

didn't except for another year, and then they had an incredible cash flow quarter. two other metrics, they were upgraded we are constantly toggling scores, we are aware of risks. we think they moved into free cash flow positive territory the last 12 months, think the next 12 months will be the same, and fears about the balance sheet will diminish with time. >> one of his big promises awhile back. thanks ylan mui joins us. >> the usmca is the first free trade agreement with a chapter devoted to digital trade they hope it will be a framework for future deals what does it do? it codifies commitment to free flow of information across borders. won't be tariffs on data the deal prohibits countries from mandating where the information can be stored.

this is critical for cloud service providers like amazon, think about connected wind turbines or connected toaster ovens. companies say it is essential to seamless operation as well there was last minute controversy over language that requires canada and mexico to adopt a liability shield for online platforms, similar to what we had. give companies legal immunity from content of user posts, and nancy pelosi opposed inclusion in the agreement, eventually did back down. it was a narrow victory for tech there. the digital trade provisions are intended to provide certainty for businesses they know the rules of the road won't change once this is passed that's one of the reasons it is expected to boost the economy. government analysis estimates that piece could raise gdp by 1.2%, create 589,000 jobs. there's widespread agreement this part of the deal is long

overdue. guys, the word internet doesn't even appear in the current version of nafta back to you. >> put that in perspective thank you. when we come back, new law in californichgi ca anngorporate boards we'll tell you how "squawk alley" is back after this sit tight. yep, sit real tight, speedy. cause you've got to call it in, police officer: radio to dispatch... type it up, hey, dispa... (feedback ringing) deal with that, dispatch. write it up, walk it back, police officer: slow down out there. and call hq-again. (sigh) (siren blaring) this isn't working. introducing samsung mobile first responder solutions. with the galaxy note10, you can get real-time data at the scene, all on one device. samsung business solutions.

all on one device. rowithout the commission fees and account minimums. so, you can start investing wherever you are - even on the bus. download now and get your first stock on us. robinhood. i am brian sullivan. here's what's coming up at half time the rally that keeps giving. more new highs today your investment committee has the reasons the bull will keep

running or if the bears take charge and the best ideas for 2020. a list of six stocks to watch. and another bullish call on apple. are analysts getting silly around the stock one of our traders thinks so, will tell you why in 15 minutes or so. julia, if i don't see you for some reason, have a happy new year >> thanks so much, brian, to you as well. shifting gears, a california law mandates public companies based in the state of california need to have at least one female director by the ends of the year the deadline is coming up. the law has already been challenged in court, but companies across the country are pushing to make corporate board rooms more diverse, prompted in part by the california law and reports showing that companies with female board members do perform better the face of the board room is changing this year, percentage of first time directors that are female is 57%, up from 42% in 2017,

according to a study by spencer stewart. the boardlist is one of the companies looking to diversify, matches companies with qualified female board candidates. they say it helped corporate searches triple to more than 300 this year. and it is not just in california boardlist seeing the california law having a halo effect across the country. and the halo is extending beyond gender diversity first time directors that are minorities is 31%, up from 10% in 2017. thanks to new appointments, women comprise 26% of all directors, up from 16% in 2009 some analysts raised concerns about the idea of overboarding, directors could have too many board seats, pulled too many directions that risk has been mitigated by proxy advisers, asset managers like van guard, and companies placing limits on board

commitments. we have seen the number of boards that directors serve on stays steady in the past five years, an average of two board seats per member we are seeing the broader variety of people joining boards, not just ceos and retired ceos a quarter of new board members have experienced running a division or subsidiary of a business, may be in one of those roles now. >> seeing data that shows more women on the board, better the performance. nice if this translated to vc boards where data is not as good >> look, there are some shocking statistics about how small the percentage is of women that are investment partners at venture capital firms. this is one piece of various gender gaps across the landscape. boards are influential in terms of who is appointed ceo or chairman it will be interesting to see.

this law may not be maintained in court, but at least starting an interesting conversation nationwide >> interesting, we're talking privacy laws earlier in the hour, the fact you had gdpr in europe, now a privacy law in california set to take effect next year. you can make the same argument around board composition and more women on boards saw adoption of that in europe, now is taking place in california >> there's been a fair amount of backlash a lot of them saying i didn't want anyone to think i was appointed as a diversity hire, i want to be taken seriously and not seen as part of a quota, but if there are statistics showing boards that are diverse perform better, companies should be paying attention to those numbers in particular. >> a great story interesting data julia, thank you. getting back to levels we got at the open after that inter day dip. 3244 can we get to 3249 for the best

year since 1997? ct for that. i love the fact that you can do it anywhere because you don't need equipment. my clothes even fit better.

come cast is in talks to buy zumo according to a course close to the situation, but i have so far have no comment from comcast or zumo. this possible purchase is ahead of the planned launch of its own streaming service peacock set for april of next year our next guest says the deal

could present serious competition to companies like roku joining us is borter bib thank you for joining us it's interesting nbc universal is trying to do something different with their streaming service, going for multitiered ad supported approach why does it make sense for them to make an acquisition could this help their service? >> comcast is already usinging o since last august. as an app through the tv set they were initially founded some -- a decade ago by panasonic and time magazine now owned by meredith. i think that there's no question comcast is going to buy the rest

of xumo and they will start the wars of revenue streaming subscription revenue and advertising which is the big issue that netflix is going to be facing. disney probably not so much, but most of the other streaming services are going to need the addition of advertising revenue to offset the cost of marketing and the subscription revenues. >> yeah. i've heard that this year's -- past year's battles were about the subscription streaming wars with no advertising. you have disney plus, netflix and apple tv plus. next year is going to be about the rise of ad supported this. disney will invest in hulu do you think peacock will be well positioned? >> they're going to -- this time next year talking about the

streaming wars which are just beginning, they're going to be at least a dozen streaming services available to the u.s. public, and comcast on top of what it's doing in the united states paid $40 billion for sky in the uk and europe, and they are going to become a dominant streaming force competing head to head with netflix in europe and the rest of the world through sky. so yes, i think the race is on right now. the consumer is going to have to figure out who and how much he wants to pay for the television services that will be coming over the internet. will he want advertising and subscription or will they just want a clean service like disney and disney right now is racing ahead of any projections they have according to the sources we've been listening to,

disney already has 28 billion subscribers, and they're just a month old. >> porter, we're talking about prospective winners. i realize it's early in the streaming wars, but who are the losers >> with well, apple is an iffy streaming service. they have underwhemed the public and critics with their content they're spending a couple billion to create new content in the next 12 hospitto 18 months t that pales to netflix, $16 billion just on original content in 2020. i think apple is a kind of iffy service right now. certainly some of the marginal ones like viacom, cbs with pluto, they could be in difficulty going forward

they don't have the content and are azure supported. it's going to be a consumer's support to say yes, we have to have disney. we'll probably keep netflix. maybe we'll do amazon prime because we love the free delivery amazon offers the rest of it is going to be up for grabs. >> well, porter, it's going to be interesting to see what happens. once the free ad supported options come into play thank you so much for joining us today. happy new year >> always a pleasure happy new year to you. dow is up 70 points. squawk alley is back in less than three minutes joint replacing, and depression relieving company. from the day you're born we never stop taking care of you.

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live shot of times square. workers installed the new year's eve ball, 12 feet in diameter. weighs 11,875 pounds and features 2688 waterford crystal triangles. it's gorgeous. >> it's huge >> apparently the theme here is celebrating the gift of good will in the way this crystal ball has been designed, it's supposed to represent hope we'll see. we're ushering in a new decade have you ever stood outside for new year's eve ball drop

>> i have never been in new year's eve ball drop >> i did it once in my 20s everybody should do it a few more trading sessions between now and then we'll see what stocks do in that time let's get over to the half with sully. thanks thank you, everybody for watching i'm brian sullivan welcome to the halftime report front and center the rally rolls on another record high for stocks on the shortened holiday week, it's 12:00 noon. this is the halftime report. with the new year right around the corner, what happens in 2020? your next money move is straight ahead. plus, the desk is finding opportunity at record highs. the stocks they like are coming up as we roll out the trader's investment pla