no one cares about movies anymore. no one goes to cinema or watches network tv everyone's watching netflix. this show should just be me coming out going well done, netflix, you win everything. good night >> well, you're not watching netflix. good morning it's 8:00 a.m. at netflix headquarters in kra yecaliforni 11:00 a.m. on wall street. "squawk alley" is live.

♪ >> welcome to "squawk alley. i'm jon fortt. david faber and morgan brennan are here a lot to get to today, including winners and losers from last night's golden globes. we'll begin with today's market drop, though stocks are off the lows, actually at the highs of the session. bob pisani has what's driving today's down swing and maybe swing a little back up >> more than a little. we almost went positive a few moments ago on the s&p 500 here's the intraday. this is similar to friday. the low print but v was there at the open friday we tended to have faded

into the middle of the day, looked more like that. we'll see if the same pattern happens. for the moment, we touch even going on the s&p i'll show you the sectors here cyclicals tend to be most affected energy on the upside today mostly the big integrated companies that are up, shale down, e banks down but off the lows same with transports not a good day for the transports overall retail is down, but again, off the lows that's the general pattern you see. some of the transports, j.b. hunt got a downgrade from bernstein. we've had problems with softness in the market. they've called them out on that. this tends to get hit whenever you have concerns about softness in the freight market. elsewhere, though, some pretty nice volume in alphabet, a big monster day, huge volume today

in that particular group it was upgraded over at pivotal research they're talking about new and expanded revenue streams under the new ceo there. this is a new historic high. a fairly flat volume day, the volume has been heavy in alphabet new highs in the industrial space. raytheon, lockheed martin, 52-week high general electric, $11 on december 31th. we're in a mini rally, $12 and change options activity in the last few days there seems to be some kind of betting going on,no news but some kind of betting going on that the recovery in general electric will continue finally pointing out a lot of people asking over the weekend about what happens in these kind of events with military operations or some kind of terrorist event here usually this is cfar's research, a very isolated event. they don't usually have big economic consequences.

9/11 did, but the s&p 500 usually billion usually bottoms down about 5% in a few days and then you recover the losses these events are generally not large-scale economic events. we'll see if that is the case here >> so far not a tonov of market movement apple, a big week for consumer electronics. web bush raising its mark up to $400 need h needham is downgrading it to a straight buy dan, i'll have to push back because you're more bullish on apple. weeks or months, just some great execution. isn't it riskier to buy the stock here given how the multiple has expanded?

>> look, in my opinion right now, you're looking at a super cycle for apple. in my opinion, when i look at what's happening in china, 10%, 15% above expectations, i think we're just in the start of what will be a rerating of the stock. right now, you'll get the services business. that's $15 per share but it all comes down to the super cycle. what we're seeing in the install base right here, i think we're only halfway through a rerating in apple, which is why i view the bull case now is $400 per share. i expect a strong being raised from cook and cupertino going into next earnings >> we'll round up and say the stock is at about $300 now $400 you expect it to move up better than 30%, but on what news we're not going to know if this is a true super cycle until, like, september, october probably at the earliest is the stock going to hold up that well throughout the year

until then >> i view it as a -- iphone 11 right now, if i look, that's getting probably about 5% to 10% above expectations fundamentally, you look at the next phase going into 5g, that will be the second half of the cycle. it will hold up well because we're looking at 190 million units in terms of what we see for iphone in terms of all of our checks, especially in china, i believe right in now in china 5%, 10% above expectations, it will be a one-two punch. you could have some speed bumps here and there, but in my opinion, a year from now the stock has a 4 in front of it >> the fact that almost all the move we've seen in apple in past year has been multiple expansion, talk about the fact they're in the midst of this rerating what do the new goal posts look like in terms of fundamentals and how investors need to be assessing this stock

>> i think it's a combination. a lot of investors have missed the sort of run here on apple. i think you look at a stock up 80% plus, they'll say it's all good news. it's a rerating but the key number is 350 million of 920 million install base are in the window of an upgrade opportunity. that's the key you go into a 5g cycle with iphone 11, that combination is how you see numbers move up and a rerating that combination is how you get to $400 in our opinion >> all right evercore raised a price target to $315 over the weekend, but amin, you went from strong buy to garden-variety buy here i wonder, now is the time of year we typically get from apple

a sense of how revenues did on the app store between christmas eve and new year's day do you think we get those numbers? >> yeah. the aggregate, the december quarter was up about 18% to 20%. u.s. is up in the low 20% range. i do think the apps are growing in lines of service expectations at 20% growth. apple has been scaling back the information they keep giving investors consistently i would imagine if they have to disclose the app store data between the christmas and new year's time frame, they would have already done it i would say it's unlikely to get them now, but based on our own number, we think in aggregate it's the high teens. >> looking forward to earnings in the next come of weeks, is this a name that's priced for

perfection what happens if it doesn't meet those expectations on wall street right now >> listen, being up 80% last year, there's a lot that ties into the story already if you don't meet expectation, there will be a negative reaction and disappointing for people the problem is if you look at the december quarter guides, the numbers out there, apple got december quarter revenues up about 36% sequentially at the midpoint what's notable is only 200 basis points than what day v they did in december of 2019. the bar is low in the context of the iphone 11 has done so far. >> dan, amin, thanks upex a nt,n exclusive harold hamm coming up on the other side of this break. stay with us

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geopolitical tensions between u.s. and iran after the air strike that killed a top iranian military commander our next guest expects iran to continue to disrupt iraq markets in the region. joining us to discuss, continental resources founder, harold hamm, currently executive chairman of the company. always good to have you. oil prices up on this, not that much i guess in retrospect given the size of the tensions so to

speak. do we move up from here or are we muted >> i don't believe we've had a meaningful response to what's happened in iran i think, you know, prior to any of this occurring we were seeing a tightening of oil supplies, you know, due to basically producers here in the u.s. using capital discipline and slowing down on exploration. we're in a new era we have the capacity to overproduce. the key is making sure we don't. we need to balance supply and demand, and otherwise it's not sustainable for oil companies in the u.s. or anywhere in the world. i think that was happening prior to this situation in iran. i think it was bound to happen

over there they got by with a couple events, shooting down a drone, disrupting the supply coming out of tsaudi arabia they couldn't help themselves. they hadtried something else they thought they'd get by with it, and this time they couldn't. >> what are you going to be looking for in terms of something that would meaningfully change the trajectory of oil prices as the tensions continue to kaes late >> i think the tightening of oil supplies, producers are listening to the market. they're not going to overproduce and oversupply the market in the future we've been in an era of abundance for five years, and, you know, there for a while, the mentality was the oil patch, but that's waned, and everybody realizes we can overproduce, we're not going to, and certainly we're going to ask

what the market wants and provide that, but we're not going to oversupply the market and futures. so i think you'll see that tightening of supplies as we go forward regardless of what happens. i'm not terribly worried about what's going on right now in iran we'll do the right thing we have a very, very good secretary of state, you know mr. pompeo has great relationships in the middle east and he's certainly capable of handling that situation. >> harold, what do you think this does to the export picture, specifically demand globally for u.s. products? and not just because of the events in the last cup dales but really the last year or so with tanker seizures and other issues with iran in the middle east i can't help but think that has added a level of risk, uncertainty, perhaps driven up costs to move some of the

products from that region of the world. does it actually fuel demand for what the u.s. has to offer >> well, it certainly does you know, everybody realized how unstable and how volatile that region is. here again you see a situation has blown up and there should be some risk premium. the market is tempted to build that in, but i think we're probably headed for a $75 oil price here in the u.s. regardless within the next six months that's where the market is going and we'll get there. it's not too much to ask, i mean, with this economy, how strong it is >> 75. >> the economy has almost doubled since trump has been in office >> you're saying -- >> certainly it can sustain that >> you're saying you expect wti crude to be at 75 within six months that would be a huge move, would

it not >> it's not a huge move. opec, you know, has said over and over again they want 80. i don't know why they couldn't attain that. >> so, harold, i want to get your thoughts on the fact that the recount in the u.s. has come down by a quarter in the past year, what that's meant in terms of the local companies and what that looks like on the ground right now for continental resources and the sector at large. >> well, we see the count come down by another eight this past week it's been dropping about four a week it may get down as low as $7.50. it may get to 750 yet.

that's what you live on today is oil. natural gas is so cheap it's given no help at all >> harold, we'll leave it there for today. certainly know we'll have you back i would assume pretty soon. appreciate it. harold hamm, chairman of continental resources. >> thanks very much, david when we return, ces, the consumer electronics show, kicking off today. i will be reporting live from vegas all day tomorrow and wednesday. what i'm looking for this week at fidelity, online u.s. stocks and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk

welcome back to "squawk alley. european markets set to close in just a moment. >> they're trading lower at this hour, keeping an eye on iran

taking a step back from today, 2019 ended up being one of the best years for european stocks since 2009 big question is what to expect for 2020 goldman sachs expects europe to see tepid gains of just 8% economists are expecting growth to marginally improve across the european continent, reaching 0.7% gdp growth in 2020, rising to 1% in 2021. now, this year of course pointing out that manufacturing data is still far from stellar, particularly in germany and that any anticipation of global headwinds including middle east tensions and rising oil prices could impact europe's growth picture. we say that because they're the largest oil importing region, making it vulnerable to supply shocks and price volatility. the arguing a 10% growth negatively

any disruptions to the transportation of oil would make europe more reliant on russia and the completion of the north stream two gas pipeline. russia's energy minister said in late december this pipeline will begin flow big the end of 2020 despite the ug.s. pushing back this oil story has an impact on europe back to you. >> thank you let's get to sue herera with this hour's headlines beyond the market >> there are a loot t of them today. here's what's happening at this hour the american killed in sunday's terror attack in kenya has been identified as henry mayfield jr. his family said military officials reached out to them last night to report he had been killed in action mayfield joined the military after graduating from high school in 2018 he was just 23 years old

a 5.8 magnitude quake hit puerto rico before dawn today. it unleashed some small landsidesslilan landslides causing power outages and severely damaging homes. there were no reports of casualties former presidential candidate julian castro has endorsed elizabeth warren for president. he tweeted they share a vision of america where everyone counts and he's proud to join her in the fight for big structural change and pope francis wishing peace to catholic and orthodox eastern churches that celebrate christmas on january 7th he addressed a crowd from his window overlooking st. peter's square you are up to date that's the news update back to you on "squawk alley." morgan, back to you. >> sue herera, thank you when we return, shocked at netflix, disappointed by apple we break down a night of upsets

at the golden globes the s&p less than two points from the flat line >> the hero of this next movie a naive, misguided child who spreads naughty propaganda and only has imaginary friends his name is mark zuckerberg. sorry. this is an old intro social network i'm talking about jojo rabbit. leads the industry in value while our competition continues to talk. ♪ talk, talk

rolled into the tv game with the morning show, a superb drama about the importance of dignity and doing the right thing made by a company that runs sweats p sweatshops in china. so you say you won't, but the companies you work for, unbelievable apple, amazon, disney, if isis started a streaming service, you'd call your agent, wouldn't you. so if you do win an award tonight, don't use it as a platform to make a political speech, right? you're in no position to lecture the public about anything. >> that was golden globes host ricky gervais taking a shot at not just apple but streaming services amazon and disney the night was filled with banter in the end, it was hbo who took home the most hartford wadware. netflix only left with two we're joined from san francisco

to break it all two. great t to o seeyou >> good to see you >> i'm not sure what was more buzz worthy, that netflix wasn't the big winner of the night or some of the commentary, ricky gervais or sacha baron cohen, we played a sound bite from that going after mark zuckerberg again. >> i think it's fine it was interesting for one because those were the movies that didn't do as well and the more acclaim was from streaming companies like "marriage story" and others obviously, it's a change in hollywood and the people in power. you saw tim cook in the audience jeff bezos at a lot of events in l.a. google will start showing up at some point, maybe not the founders it's a changing time for hollywood. i was surprised they didn't win more of them because a lot of the movies were better than the

ones that won. these awards aren't the point. i want 's the growing power of the streaming companies, especially netflix, which continues to dominate with apple and others coming up behind them >> they say in comedy you're supposed to punch up to be funny. donald trump didn't get called out very often, but the tech companies did. what do you think that says? >> right well, this is who's in power in hollywood. ricky gervais was making fun of hollywood people for working for anybody. i think the concern in hollywood is not so much president trump but the companies taking over and running everything that makes sense to me you know, it's not like -- look, this is not the most -- they'll work for anyone. it's important they focus on tech companies, who are their new bosses essentially >> interesting to hear you mention google and you expect to

see more executives from google to show up i real eaize it's a major streag platform, but will they push more in hollywood? >> several years of a lot of hollywood stuff. i think you'll see more strength from apple, obviously, which is making big investments, amazon will continue to do so, so i don't know how google can stay out of it. it's a question of how they're going to participate in it we'll see going forward. they have the platforms to do so, but i don't think they're not going to be present. obviously, it's still going to be netflix around the track a zillion times compared to others followed by apple and amazon and then others. >> so after that ricky gervais comment about apple, i checked the definition of sweatshop. a factory or workshop, especially in the clothing industry, where manual workers are employed at low wages for long hours and under poor conditions i'm wondering what you think about that comment about apple

in china was fair. the wages are low but not that low by china's standards, and the working conditions pretty standard, arguably improved from what they were ten years ago under china's standards. are they sweatshops? >> well, it was a joke, jon. i think it was a joke. he was talking about the idea of labor standards. it was a couple years ago. >> it was supposed to be kind of true i guess >> yeah, i guess >> some people would agree with it >> i don't know. i thought sacha baron cohen's joke was better, funny and on point, following from his amazing speech i think the power of tech companies has dawned on hollywood for a long time that this year they're actually funding things so they'll go after them it was interesting they didn't do as many jokes about disney, which was interesting, which started a streaming service. but there's a new power structure in hollywood and that's who they'll make fun of i think that was just a joke i don't know i don't judge jokes -- i don't

think it was a very good joke actually there's better jokes to be made about apple. that's an old one, i guess, if you want to quibble with it. >> kara, i agree with you. i thought sacha baron cohen was definitely funnier so to speak although not a particularly funny topic overall. that gets me to facebook this is an election year i think there has to be an expectation it will be under the microscope again not just for free speech but what players are going to play a role in terms of influence in the electorate on the platform yet we have analyst after analyst and investor after investor who said here not going to hurt their business do you agree >> yes, i do i said it many times i think last week. no matter what's going on with it from a regulatory point of view, they're certainly not seeing it in their business. that's happened to a lot of companies. microsoft was going great guns until it had a case and it's still doing very well. i think it's question of what

the regulations are going to be. i think more problematic is as president trump continues to use the platform to goempvern, as yu saw yesterday, where he was informing congress in a tweet about the war powers act, which is kind of crazy, i think that's where they're going to attract the attention is the social impact it may not have a business impact, but it certainly has a social impact and calls attention to these platforms being used and misused i think that's a continuing story for 2020, especially as we move into the election i think it will continue in what they're doing and thousand thho protecting their platforms for misuse that will occupy their time quite a bit and away from other parts of the business. >> more of your thoughts on president trump and his plans for notification via twitter in just a second. but let's talk about a big tech name, amazon

new york city offered $800 million of extra incentives to amazon for its highly sought-after hq-2, which has not happened what got my attention in "the wall street journal" report, as the state pledged to pay 25% of first-year graduates wages with amazon to help it achieve workforce diversity. i think jon probably has a differing view from me on this, but i was blown away by this idea of taxpayer money going toward actual salaries to encourage diversity. >> well, they should just do it themselves they're very wealthy people, i hear the whole story was another the sto story about ocasio cortez saying this was e this is for rich people and how many tech companies are taking over the west side of new york they're coming into new york anyway without having to do the extra payments i was appalled by that story

i interviewed bill de blasio about this and he was indignant when amazon pulled out, but, boy, the kind of deal they were making to bring amazon there is astonishing. >> i disagree with you entirely. >> tell me why >> it was the single greatest economic opportunity new york city had and it went away. maybe 40,000 jobs overall. kara, it was a discount on the taxes that were going to be paid it wasn't as though they were getting a handout. it was simply a deal, by the way, municipalities around the country similarly offering deals, perhaps not quite as large to create a campus for the largest or perhaps one of the most important technology companies in the world >> right >> 1,500 jobs on the west side of manhattan does not compare to what new york city -- >> it won't be 15,000. >> 1,500

not going to be 25,000 jobs. >> it's going to be 25,000 everyone has to locate in new york, and you know it. 100% new york is not a city that needs to do giveaways. maybe if you're a smaller city and trying to create a fly wheel somewhere, i get it. but these companies need to be in new york and they will be in new york giving away this taxpayer money to do so -- i don't know what's worse, doing a sports stadium or this >> it was money being discounted off of the taxes they would have been paying. not a handout. >> first of all -- >> yes >> i have. >> that was from the state the diversity of hiring were to lure amazon upstate, not to new york city. i agree, new york city, everybody wants to be here the state incentive was about different areas of new york.

this is not a wisconsin situation where they just kind of like threw money out. >> right and they got played there. >> and they got played this was not that kind of situation. >> they got played >> yes, they got played. i think with the new york situation, not that i have a problem with incentives at all, i have a problem with incentives that aren't specifically targeted if they were trying to get new york state's college students on a better job track, especially in an area outside new york city where they might not have had that opportunity, well, you know, that's what capital incentives are for >> i agree, but you pay 25% of a new employee's salary in the first year, those are the types of incentives i think perhaps raise eyebrows kind of crazy how fiery this debate is, guys. >> i hope you're right that 25,000 jobs, as a longtime new york city resident, watching taxes go up and the budget deficit continuing to accrue in the state and city, i hope

you're right there's no doubt facebooks and alphabets and an pple are all growing. >> i live in san francisco and we've seen the result of tax giveaways. they have beautiful lunches up there and the streets of san francisco are made worse for it these company who is want to be in major cities and have their workforce here, should pay the price and that means taxes maybe there should be tax reform, but giveaways to rich people is problematic for me on lots of levels -- politically, socially, economically >> we're going to move on. let's get back to president trump, which you mentioned before >> less controversial. >> tell congress to follow him on twitter if they want updates on his act of war against iran certainly this raising a lot of eyebrows, already getting pushback from lawmakers.

the 1973 war powers act never addressed that social media didn't exist it begs the question, kwhaswhat should the format -- what should be allowed legally when you have presidents and officials that can directly speak to the public >> well, it's certainly a far cry from a day that lived in infamy from the speech that franklin roosevelt gave. this is just -- i don't know what to say. it's interesting what does twitter do what do any -- a lot of people are calling for twitter to do something about it i'm not sure what they do because he campaigned on twitter and he governs on twitter. i wrote a column about this in "the times" this summer saying he'll do more and more of this because he talked to government employees through twitter and ordered them to do things like the army or the commerce department so this is no surprise that he's doing this it's just bizarre. and i don't know what congress can do i'm not sure what the remedy is

at all i don't know what do you all think? >> i think the remedy, if it's to be called that, is democracy. at this point, president trump could start his own twitter and communicate this way he's become such a powerful force on that platform and indeed on any platform the reason he can tweet this and say follow me on twitter is because the republicans in congress are behind him. if they were not, then it would be a different situation this is where the people, if they agree with this, then all is fine, if they don't, go to the polls and do something else in 2020. >> yeah. i think it's all being put out there for everybody in the world to take a look at and i guess discuss. >> i would argue if he didn't have twitter he wouldn't be able to do this he couldn't start any platform this is the perfect platform for him and there is no other platform he'd be this powerful

and have this much influence >> i agree he couldn't have done it a couple years ago, but he could now. >> all right one more topic to get o, guys. we'll keep it moving here. your latest column details your predictions for next decade including no more phones this got my attention. what do you mean by that >> no more phones. my best friend, by the way i have a giant iphone now. i could probably hurt people with it. i think the idea of how we compute, i guess, i don't know how to put it, use these devices is going to change over the next few years. i talked about climate tech and diversity in this column, but a lot of people focused on the idea of the phone. it seems to me the idea of looking down and interacting with a device in sort of this -- it's an odd way to interact with a device -- is going to have to change i think probably some sort of heads-up, in the ear display kind of thing will eventually take over by the end of the next decade the way we're using these

devices now seems somewhat antiquated that's what i was thinking act, how do we interact with our devices. again, even though there's ban lot of failures in the glasses space and the ear space, i think a lot of the success of air pods and other things brings to mind the idea of not having to take your device out of your pocket or it being on your person but not in the form of a phone >> you said more investment in tech that addresses climate change you talked about automation for good is this a list of things you think are going to happen or things you hope are going to happen this is very optimistic, even for you. >> i know. i decided to go counter to the brand of yelling and things i wanted to see happen i think climate change the an enormous business opportunity. i want to present it as such, not just as the right thing to do but that is a huge opportunity for investments here i think the statement i made is

the first trillion their will be the one who figures out how to deal with climate change, clean water, environment, food it's a big area that few are focusing on except for elon musk and bill gates bill gates is making quite a few investments in this area it's a huge opportunity for almost any entrepreneur to think like this. in terms of doing for good, i think there is a big business in safety and people wanting to feel safe around their devices i'm more and more turning off location services, all kinds of things on these devices because i realize they're tracking me. there is a business for safety among consumers. so that was one of the topics i talked about diversity i still think i'm going to keep banging on that drum and talking about the idea a more diverse workforce and creative group of people in technology will produce better results moving forward and not seeing the mistakes you've seen

in the last decade, which i've written quite a lot about. >> we're looking forward to seeing how these predictions materialize. >> then dave and i can debate headquarters when i see you next time >> anytime, kara you know i have great respect for you. on this, i know you're just wrong. >> all right kara swisher thanks for join us today. >> thanks a lot. >> take a look at your xerox and hp they're moving in opposite directions 24 billion in financing from groups led by citi they'll be paying fees on that rtd it will go towards the cash poion of their overall bid which stands at $22 a share. we're back right after this. legendary terrain in telluride,

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the return of the rick rick santelli. >> thank you, jon. it's a big entrance into 2020 not only for the geopolitical issues but of course how much we can learn from them. i call it the sleight to safety trade. let's look at the dollar index, dollar/yen, treasury rates, stocks here, stock ace broad it has been a limited response why is that important? it's hugely important. it tells us more about the markets than it does with what's going on with the iranian situation because rates are so xret

compressed there isn't a lot of headway to be made the dollar j/yen, the dollar is higher the issues won't change what's going on geopolitically. it's most not likely going to be to the downside but to the upside because chronic structural forces continue to linger across the globe. give you an example. the american economic association's annual meeting was in san diego sunday. janet yellen, ben bernanke, the following comments -- i believe for the euro area there's some ri risk, but by no means a foregone conclusion they have to act comprehensi comprehensively. they have negative rates their structural issues haven't been addressed since the credit crisis or not nearly enough to have a positive effect on the

economy, and his answer out of office is basically that what i did you need do in a better way. fighting this inflation may be a noble central bank cause but at what price and are they making a difference finally, maybe the biggest issue for 2020 as you look at three-day charts of twos and tens, how little they've moved since thursday jon fortt, back to you >> all right, rick before we let you go, congratulations. an entirely different kind of santelli exchange. your daughter got married to start the new year >> she did a new year's eve wedding thank you for mentioning it. congratulations to my daughter juliet and john fall thanks, jon fortt. >> your daughter made a gorgeous

bride. your pictures are breathtaking congratulations, rick. >> thank you so much coming up, do not miss an exclusive with goop founder gwyneth paltrow. her new netflix show and what comes next for goop. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

some things are too important to do yourself. ♪ get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. welcome back a group claiming to be iranian hackers taking responsibility for the hack of a federal

library website over the weekend. contessa brewer has more on the rising cyber attack risks from hq for us. contessa. >> hi. the white house and fbi haven't commented. if this is iran's work, it is only a hint of what iran's cyber army are capable of. they are predicting wide ranging attacks that in the past have targeted banks, oil, universities, even sheldon adelson's casino, las vegas sands. they issued a terror alert warning of iran's long history in cyber attacks iran remains a robust cyber program and can execute cyber attacks against the united states iran is capable of at a minimum carrying outattacks with temporary disruptive effects against critical infrastructure in the united states even before this crisis with iran, hackers were doing real damage to governments and business around the world. in 2018 cyber crime cost the world half a trillion dollars in

economic damage. that's according to estimates by march. far more than the $300 billion in economic losses from economic and natural disaster yet that same year u.s. customers spent only $4 billion on cyber security insurance premiums, dwafrfed by $180 billion paid for by property insurance premiums, which suggests risk of cyber losses is vastly under estimated experts tell me smaller business greater to large companies like marriott and equifax which saw major hacks last year. that's because schaller businesses have less protection and more vulnerable to incursion. i have a note from evercore warning about the hacker economics and talking about the real threat here to u.s. companies likely to see this racheting up in the days and weeks ahead. jon. >> all right, contessa, thank you. meantime political fundraising

numbers continued trickling in over the weekend you see the board right there with bernie sanders leading the way for democrats in q4. unfortunately earlier on this network we aired wrong photos for andrew yang and tulsi gabbd wearand apologizefor that mistake "squawk alley" returns in less than three minutes or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. - when i see obstacles, i create opportunities. (soft music) - when i see adversity, i find a way. - when i hear never, i say now. - [announcer] southern new hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. (cheering) - so when i face barriers, i can break through. - [announcer] breakthrough at snhu.edu.

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welcome back to "squawk alley. jon, tomorrow and wednesday you'll be reporting live from las vegas at the ces conference. what are you looking for >> ces is controversial but it's not a place where you go for big lunches, right apple, samsung, they have their own events for those things now. it is a place you go to see ecosystems and i think voice control and ai is going to have a really big year. we're going to see in home automation and cars how interfaces are changing with voice. i expect insight into how this trade tension between the u.s. and china, trade war that might be cooling off now, is opening up opportunities for other countries. a meeting with representatives from a number of other asian countries who expect to find an opening here. >> interesting in terms of the ai picture, the biggest names that we should be

watching over the next couple of days for some of these launches, some of these products >> amazon, of course, but also the car companies starting to incorporate alexa into cars, not just home appliance makers incorporating it in there. >> meantime the dow has really at session highs we're only down 62 points. s&p is moving back to flat line, only down 2 right now. >> all right let's get to the half. >> all right, jon, thanks. i'm scott wapner front and center, risk and rally. what new geopolitical tensions mean to your money are stocks primed for a pullback it's 12:00 noon. this is halftime report. >> tensions between iran and the u.s. bringing out the bears. protecting your portfolio from here banking on the banks bullish new calls on the financials the traders take their positions. and fresh ideas for the new year twenty stock picks for 2020 are straight ahead the investment