plus, a stunning bet on apple. and it has even the bears throwing in the towel. and later, our own bitcoin bug. we take a peek at the president. it could add even more fuel to the rally. >> the presidenter outlined two big spending opportunities. he is talking about infrastructure and defense spending. he made a speech. he highlighted some of the infrastructure around you guys in new york city. he said when you drive under the tunnels in new york city, it is a little bit scary because you feel like things will fall off the kriel on to your car. >> we have to fix our infrastructure. it is not like we have a choice. we have no choice. and it means jobs which is a good they know. >> other big priority is defense spending. take a look at the numbers of where their budget is headed. this is just a plimt look. they're outlien ning for us. they expect to spend $603 billion on defense on. nondefense, 462 billion. that's a cut. their going to zero out all those spending increases. net/net about, the same in terms of the deficit from where it was last year. but no specific

big bets on apple after hitting all-time high. why warren buffett things the stock could go higher. dow is working on the longest win streak of the year. s&p up seven would be the longest streak in more than three years. we're back in a minute. >>> dow's almost up 100 points here, at 20k is about 600 points ago. retailers including ceos meeting at the white house right now. this is tape from a few moments ago. executives expected to be making their case again a proposed border tax, president promising a massive tax plan which will le released very soon. here's the president a few moments ago. >> there's a lot of confidence in our economy right now, a great confidence level. you've been seeing that in the stock market, seeing that in businesses, and you've been seeing that in every chart. evidence also by the jobs report that just came out for january, 227,000 jobs added. my administration remains very focused on the issues that will encourage economic growth. that's what we're all about. >>> joining us this morning with zone inside, mike gould joining us. mike, good to see you again.

bet on? which company goes to a trillion dollars first, apple or berkshire hathaway. >> i'd bet on apple becausey have a shorter position. if tim wants to swap an even up i have an 800 number for him. >> you want to go there now? all right. speaker ryan is outside the white house right now. let's listen in very quickly. >> we're very excited that they are actually giving us these numbers this early in the process so we can move forward with processing our budgets. >> time to go? all right. >> you talked about the need for a settlement reform in the past. the president has made clear he doesn't want to touch that. are you comfortable with a budget that doesn't do that? >> replacing and repealing obamacare is entitlement reform. >> an opportunity for this president for bipartisan relationship? >> yeah, i think so. we haven't seen much of it in the senate yet but i'm hopeful the fever is about to break. we'll confirm the secretary of commerce today with a bipartisan vote and i hope we'll begin to move in the direction of getting back to some semblance of normalcy. thank you. >> thank you. >> did th

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alix: doubling down on his bets on apple, upping his position to 100 33 million shares from 61 millionear. berkshire now owns about 2.5 percent of apple. lease,flipside, longer no backup -- monday lays -- mondelez. shortly before the election, airlines were big buys for the election as well. 9.3 billion dollars there. retail getting hit in the market. under armor, down by one percent, getting a price reduction over more than $16 per share. the company saying that it has matured past its high growth stage, hurting that stock. jcpenney, relatively flat, despite a price cut, i just set it, up by 1%. there is sales and margin risk there. lots of retail as we head into the open, david. david: the white house has a full day planned before the speech to congress. to take us through what we expect, kevin cirilli. let's start with health care. this used to be a consensus, but they will have to sort it out before they get to anything else . what is going on with health in just under an hour, the governors will be making their way to the white house to begin talking about a health care plan. seve

yesterday about the firm's bets on airlines and apple.ake a listen to what he said. >> think of -- over the years about high-tech, we don't understand it, it's not competency, worst business in the world is airlines, what do we appear in the press with? apple and a bunch of airlines. i don't think we've got -- we've gone crazy. i think the answer is we're adapting reasonably to a business that's gotten very much more difficult. i don't think we have a cinch in either one of those positions. i think we have the odds a little bit in our favor. >> you've got to love that line. i don't think we've gone crazy. jim, i think munger was once quoted airlines marginal costs with wings. but clearly they don't feel that way anymore. >> well, look, when you decide you're going to have -- you see they generate a huge amount of cash. when they generate a huge amount of cash, that's a very different from the industry for all the years the industry has been alye. so, i mean, look things do change. we're always told don't ever say this time's different. bu

one thing he did mention on the call was this idea of investing in original content. this could be very expensive and a risky bet for apple. they have to be careful about how they create original c content. >> it makes one's imagination run wild on whether apple, years from now, could do a google. if the services division becomes a dominant thing, whether they become this conglomerate that they already are in a sense in terms of branching out into being a multi-faceted player. >> what happapple has done in t past, they owned their own software, they have made the hardware. by doing that, they control everything. that's how they can serve their customers with all these other services. >> what do you think of technology? >> i mean, it's interesting. i think you are getting this push back. the questions on protectionism in the u.s., can companies grow. the big question on taxes, trying to bring profits that some of these i.t. firms are holding abroad does that change their business planning? if the tax code in the u.s. changed, does apple as a business change? >> no, i don't think, but it does change what they do with cash i

bet on the tech giant. >> thanks. we've been parsing through latest quarterly numbers on berkshire hathaway's holdings and we have two words to focus on. apple airlines. are more than tripling its position in apple, now holding 57 million slayerhares. that's today. but in today's prices it would be north almost $8 million. in some cases more than triple down. berkshire buying 24 million shares. 24 million more this united and 54 million had in delta. we knew last quarter they had invest in the southwest but we didn't know how much. today we learned that berkshire holds 43 million shares in southwest. we are digging through more of these holdings and others and will come back swoon more details. >> thank you very much. leslie is pouring through the filings here. what does that tell you? in the laugh quarter, apple's range. any place you pick it, it is a profit. what do you do? >> i don't think you initiate a new position. i think this story will be for the whole year. it is ball the iphone 8 coming in september. so you'll get a chamnce. don't buy just because you heard buffett bought it. >> especially with you're listening to a guy like warre

i'll bet they don't agree on that either. >>> apple reportedly ready to start making iphones in india. when we come back, we'll tell you what the company is saying about that report and what ceo tim cook is saying about growth potential in india overall. >>> and the energy sector up nearly 1% after the trump administration announced new sanctions against iran. we'll bring you the details on that story coming up. >>> seema mody has the details. >> doug mcmillan saying the gathering offered an important opportunity to discuss the economy and job creation. the dialogue was constructive and candid ranging widely. he says, i look forward to continued discussions with the administration consistent with our long standing belief that it's all the better to be engaged in trying to shape solutions than sitting on the sidelines. quite positive, guys. back over to you. >> very good, seema. they didn't want to talk to eamon. >> very substantive statement. >> thank you very much. >>> president trump has said that he wants apple to make iphones here in the u.s., but now the company's reportedly on t

apple, several other tech contributors. we have been told by soft bank this vision fund is scheduled to launch in the first half of the year. bet on emerging technology. >> thank you so much. this news about softbank and fortress, we saw fortress shares up more than 25% after hours. softbank up a little bit more than 1.5% after the close in japan. >>> well, u.s. stocks extended their rally overnight with s&p 500 notching its 15th record close. take a look at that. the dow jones s&p 500 up by .4 and nasdaq up by 1/3 of a percent. now stock climbing higher after fed chair janet yellen signaled a more hawkish tone during her first day of testimony on capitol hill. let's bring in tony nash. he's at complete intelligence. he joins us on the line. tony, there were a couple of things that janet yellen said overnight that the markets seemed to react well to. was it surprising to you that she said that markets need to at least price in a hike at an upcoming meeting because she expressed worries that if you didn't let go of the combination soon enough you could be behind the curve. there was a risk of going back into the recession. the mark

and then apple shares pop, and they continue to hoard cash bigger than the gdp of more than 100 countries. >>> british bookies will take bets on anything. what are the bets now, how long trump will last in office, and it's 4 to 1 odds that trump will be replaced by the end of the year, and also odds where he will serve two years. >>> just ahead, one teacher's unique way of starting his day, and what do "finding dory," and what the immigration ban has in common. help adults who are overweight or struggle with obesity lose weight and keep it off. contrave is believed to work on two areas of the brain: your hunger center... (woman) i'm so hungry. (avo) to reduce hunger. and your reward system... (woman) ice cream. french fries. (avo) to help control cravings. across three long-term studies, contrave patients lost approximately 2-4x more weight than with diet and exercise alone. contrave is not for everyone. one ingredient in contrave may increase suicidal thoughts or actions in some children, teens, and young adults within the first few months. other serious side effects include seizures, increase in blood pressure or heart rate,

for tuesday, markets flat right now, take a look at stocks on the move right now shares of apple, closing record high yesterday, investors bettings year, jump putting market value nearly 700 billion dollars. 1 3 and quarter premarket , facebook look to aing is change your tune, bloomberg reporting meeting with record labels to let users ooed popular music to videos a deal would he help avoid copyright infringe meant 134 and change politics into rowdy antianterior protests some professors may contributor stuart varney has more. >> thanks, maria going to do something different on the program this morning, because, we are very familiar with what is going on on college campuses, these days, and familiar with the expression have unhinged left. some think maybe that goes a little bit far today we are going to show you the unhinged left. you may remember, not long ago gavin mcginnis a conservative tried to give a speech at nyu, demonstrators blocked his speech didn't want him to speak on that campus. i've got the video, of an nyu he professor mowinging obscenities demanding stopping conservatives from getting on campus nyu professor th

on the other end, for investors, probably not helpful that we don't have a treasury secretary. we'll watch that, eamon. thank you. >> you bet. >>> back to this morning's top corporate story. apple'sults, investors clearly liking what they saw from the world's most valuable company it returned to growth. tim cook touting the success of the services sector on the investor call. >> was our best quarter ever for services with almost $7.2 billion in revenue. app store customers broke all-time records during the holiday quarter including $3 billion in purchases in december alone. making it the app store's single best month ever. >> with us now is apple watcher dan ives, senior vice president from syncronos technologies. great to have you with us. the apple iphone sales were the big beat in there. how much of that is a one quarter only effect and how much do you expect to continue through next year? >> it's a step in the right direction. you look at iphone 7, 7 plus, what you're seeing here now is going into iphone 8. that's really apple's super bowl at this point. it's all the lead up to the ten-year cycle. and i think right now this is something that gives optimism to what we've seen

one. it's made of plastic but people said it feels durable like an apple product. also loads quickly letting you turn it on and play games in only a matter of seconds. nintendo is bettingon the switch. coming up at 6:00, industry experts tell us if that bet is likely to pay off. >>> a bay area photographer is asking for help to track down a history couple after she took a picture of them getting engaged. >> angie wilson posted it on her facebook page in honor of valentine's day but she took it two years ago at the palace of fine arts in san francisco. >> wilson was out for a walk when she heard music playing and saw a man proposing. she said she took the picture but didn't want to bother the couple at that time. but now she wants to find them and give them a memorable photo as a thank you for letting her be part of that special moment. if you want to help out, the picture is on our facebook page. >>> well, if it feels like everyone around you is talking about the oscars, you might be right. social media has changed the way we watch the awards show. who can forget ellen's selfie. jessica castro spoke to lynda lopez about how the oscars has become an experience, not just

. >> stores around the country put them on sale today, and analyst say it's a good bet that mcintosh could soon be the biggest apple> it's got its form, eventually i want to be able to carry my mac around with me, walk around with it in my pocket. >> you really like that mac. would you trade it for an ibm? >> are you kiddin'? >> as material sciences progress, more and more circuitry keeps getting put on smaller and smaller chips, circuit boards. so the closer together elements on a chip are, the fashion of motion of signals between them. there's something called moore's law, named for gordon moore. one who worked add intel. they are getting to the place where they can double the computeding power of a computing chip every 18 months or so. and this is what really maid the pow -- made the power explode. every 18 months these things were getting twice as good. >> you could get the whole computer on a chip. it was less expensive to manufacture. you had smaller which led to faster which lid ed to cheaper. >> under any other field of products things get more expensive over time, houses, refrigerators, milk. but not techn

the details after a float collapses, plus warren buffet taking a big bite out of apple, why it's betting big onhe technology giant and starbucks is add to go menu, how can you soon get your hands on the new ice drinks just in time for spring. details on the upscale roastery. we are breaking down the massive new contract with the pittsburgh steelers, we want to hear about that. first top storieinhe half hour, that's a top priority for president tr the president's first budget proposal will include 54 billion-dollar increase in defense spending. military stocks like lockheed martin racing on rallied on the news, the move will likely garner plenty of public support. the latest fox news poll shows that 45% of americans think the country is spending too little on military. what are your thoughts on budget, dagen? dagen: it's a balancing act for president trump that he promised to increase spending on defense, 10% increase there, a little more than $400 billion but not at the evaluates that say a senator john mccain has been calling for. we should also point out that his budget director mick mulvaney

bet you do. you brought great ones here. >> yes, right here we have our palm grand it mar greet, pine apple margarita and virgin strawberrygarita. >> so which one will you make here for use will make a classic el vez margarita. it is our best seller. we will start off with 2-ounce s of silver tequilla. >> all righty. >> making this at home is that how much people normally put in 2-ounces. >> that would be a standard margarita. so 2-ounces, and then we will do an ounce of lime juice and ounce of triple sec right here >> at one point i was obsessed , so i went to, because i used to live in hurt will beach and margaritaville there they had a margarita making class and they told he when it comes to bar 10ing and you count, to two and that is what you to. >> i count, but, you know, it is good we are showing people at home how to make them. it is good to know it will be all together, 2-ounces of the tequilla, ounce of this and this. >> if you do not. count to two and that is 2- ounces. >> i like that. >> all right. we will add some ice, this here. >> okay. >> how would you like it, blood orange. >> i to like blood orange. >> ok

bets, with apples, with airlines. they had a bad first century but they are doing better now. i think he is willing to change his mind. cory: airlines is onehas always hated and regretted. katherine chiglinsky, thank you very much. executivethe chief opens up about president trump's expected tax overhaul and gives us a look at how complicated taxes can be for businesses in technology. this is bloomberg. it ♪ cory: softbank is said to be working on a merger with a satellite company. softbank invested $1 billion in december according to a person familiar with the matter. talks could still fall apart as other options. the transaction could be valued at $18 billion if successful. reports results on wednesday. details are expected before a joint session of congress. may comes to the multibillion-dollar videogame business -- when it comes to the below -- multibillion videogame business, it is not easy. the new tax policy could have unintended consequences. >> i think the biggest opportunity on tax policy is the repatriation of cash trapped overseas. to be clear, that is not a take to issue. 90% of our caches domestic. it is a broader issue for o

apple last spring based on yesterday's price at another record berkshire's apple stake would be worth about $8 billion. berkshire is getting further into another industry he's previouslyioned with a betth about $10 billion on airlines. the firm did some major buying during the fourth quarter doubling its position in american airlines adding 24 million shares. it boosted its holdings in delta which went from about 6 million shares to 60 million shares. those in united jumped by a factor of 6. we learned the size of his position in southwest which was not included in last quarter's filing. he owned 43.2 million shares at the end of the year. i also spoke with david tepper last night right after his filing hit. his firm appaloosa took advantage of a dip in pharma to buy names such as teva, mylan and pfizer. he's excited about allergan. it now represents more than double his other pharma positions combined he said. >> who's not bullish on allergan? that's the question. >> well, it dipped in the fourth quarter of the year and it's a little uncertain. >> isn't it botox? >> i think it's body con touring. >> who's botox? >> that's botox but body con touring has become the new -- >> they're b

doubling down on the services area, doubling the size of this unit, which is as big as a fortune 100 company, doubling that over the next four years. how much is services the right bet for apple it is absolutely the right bet, until they start selling other appliances like refrigerators and cars, there are only so many smart phones and tvs you can sell. i think there are some areas like apple pay where there is low consumer adoption, a love and percent in the u.s., but a lot of upside. caroline: when you look at the other products they sell, the cfo saying this is ipods, apple tv, but do they need a lot of products? the watch looks like it is selling relatively well record , a fourth quarter? >> i don't know if they need another product. smart watches are only a fraction of total wearables, but they will be 40% in five years, so there is a lot of upside as we move from 18% of u.s. adults owning a wearable to 29% in four years. caroline: what struck me was the lack of mention of china. brazil is going well, turkey going well, but china seems to be a slow down area. are they right to focus on china or switch to india? >> apple makes a lot of money selling phones. they are profi

on a standalone basis is as big as a fortune 100 company. they will be doubling that over the next four years. how much do you think services is the right bet for apple? >> absolutely the right back. until they start selling other appliances, like refrigerators or cars. there is a lot of upside in the services business. there are also some areas, like apple pay, which has a relatively low consumer adoption of 11% in the u.s. caroline: it was interesting. when you are looking at the other products they sell, there was a slight slowdown. the cfo, trying to say, ipods are included, the apple tv. but do they need another product? it looks like it is selling relatively well. >> i don't know that they need another product. if we look at the adoption of smart watches today, they are only a fraction of total wearables sold today, but they will be about 40% of wearables sales in five years. there is a lot of upside in that market as we move from 18% of u.s. adults owning a wearable device in four years. caroline: what struck me is the lack of a mention of china this time around. the cfo said brazil and turkey are going really well. china does seem to be a slo

bet is we will see tax reform. >> is there anything that you could see, jim, out of the trump administration that would make you wary being such a strong bull on apple's great to get tax reform and repatriation, trade wars not so much. >> absolutely. here's the way i look at it, we want and we believe we're invested in things that will do well if the economy doesn't do much better. but we also want to own things that will really do well if and when things pick up to 3% or 4%. i think apple is one of those names. i think alphabet is one of those names, facebook is one of those names. great companies, great cash flow, no debt and powerful business models. >> we're going to learn a lot more about facebook. that's a story for tomorrow morning. >> maybe i shouldn't have said it too soon. we'll find out. >> morris, jim, thank you guys. good to see you both. >> thank you. >> thank you. >> when we come back, the president making his supreme court pick. we'll break down the implications for the business world. plus, the largest u.s. home rental company, invitation homes, makes its debut at the nyse. we'll talk to the ceo. dow's up 55. we've done well in life,

on wall street. more than 5 countries set to report earnings as investors watch for the trump administration's next policy move. the best bets for your portfolio ahead. >>> tech giants unite. google, apple together to oppose president trump's immigration ban. details next. >>> plus, a comeback for the ages. >> patriots win the super bowl. >> the new england patriots winning the big game. but which companies won the ad game? we'll talk to a top executive as the second hour of "squawk box" begins right now. >> announcer: live from the beating heart of business, new york city, this is "squawk box." >>> a little patriot pride. good morning, welcome to squawks on cnbc live from times square, i'm andrew ross sork in with becky quick who won't be playing along with this game. will fred frost here from the uk in. joe kernen off today, probably happily. i think he's off to play golf for the rest of the week. in pebble beach later this week. in the markets where the future is headed now. unfortunately they are headed down. dow looks like going to ovechkin off, s&p 500 looking to open down two points. check out ten-year note. flip the board around and show you what's going on there. as it flips, y

apple closed at record highs as investors bet the tenth anniversary iphone. >> it's all about the phone. >> it's already out there. they went with, hey, let's make a gold onene a little bigger. let's make one a little smaller. those are weird things. that should not be pushing things to new highs. you mentioned other things are more important than that. that's really it. i'm waiting for the 11th anniversary. >> a few things have happened here. we're out of the iphone recession. we grew iphone units in the december quarter. >> people in here say that iphone has seen its largest market penetration, that it doesn't go above this in terms of more people adding that. >> i would disagree. >> so they still have market share gains to be had? >> 18%, like i just told andrew, this is the first time they've been number one since fourth quarter of 2011. think about all these doubts and they're not innovating and they became number one in this fourth quarter of 2016. but there's other things. it's not just the iphone 10. it's also services. they're going to double in the next four years. you have a valuation that allows for upside. there's a lot exciting to look forwar