back to you. >>> let's get back out to vegas and check in with jon fortt who sat down with andy jassyarlier at the 2019 re-invent conference hi, jon. >> hey, carl we've been talking about the cloud a lot on "squawk alley" and a big part of what's going on now is big game hunting these companies going after logos. not only to get them into the cloud but more deeply engaged in the cloud. no bigger than the department of defense, that jedi cloud contract that people thought was amazon's to lose and they lost it they lost it to microsoft. they are taking it to court and i asked andy jassy about that to see how specific he would get about what he thinks is wrong with the process he got pretty specific, listen >> we don't believe it was adjudicated fairly anybody who does a detailed apples to apples comparison of the platforms don't come out in the same spot that procurement did and most of our tus mers tell us we're a couple years ahead. there was significant political interference when you have a president, it makes it difficult for government agencies to make objective decisions without

i am jon fortt with me at post nine, courtney reagan, david faber.l and morgan have the morning off. we begin with the latest on trade talks with china let's get straight down to kayla tausche with the latest. >> the u.s. and chinaannounced a phase one trade deal that washington hails as historic, enforceable, beijing says will bring certainty back to global markets. under this phase one deal in principle, china will buy more u.s. agricultural goods and manufactured goods and energy products and the u.s. will be modifying its tariff schedule. here's what we know what will happen to tariffs after seeing a statement from the u.s. trade representative and series of tweets from president trump. you will see $250 billion in chinese goods keep a 25% tariff for the foreseeable future for about $120 billion in goods that saw a 15% tariff beginning in september that will be cut in half by 7.5% chinese officials in a press briefing earlier said the u.s. agreed to roll back some of the tariffs on a schedule that had been negotiated. we don't know exactly what t

i am jon fortt, mike santoli, carl quintanilla has the morning off, and morgan brennan is live from capeaveral, florida early this morning, boeing starline had complications with delivery post launch morgan >> reporter: yes, that's right, jon. complications that are continuing to be assessed, addressed, and shape what is going to happen, the next steps for the boeing starliner spacecraft this was the first test, first flight of starliner, uncruewed, no people on board, failing to make the trip to the international space station as was planned. the launch itself which happened about 6:36 a.m. this morning went according to expectation. the issue arose when starliner separated from the upper stage of the atlas 5 united launch alliance rocket, about 15 minutes later, an issue that can basically be summed up more or less as one tied to automation and it was an anomaly that just a short while ago in a press conference with nasa, boeing and the united launch alliance officials was summed up as one that if astronauts had actually been in this spacecraft, they would have been safe the entire tim

i am carl quintanilla with jon fortt at post nine of the new york stock exchange.n brennan is in simi valley at the reagan national library >>> we start with jobs numbers, sending stocks surging, near session highs, up 303 on the dow, flirting with 1% gains in the session. joining us to morning, mike santoli covering the up swing in the best of both worlds. >> the market was craving a good number, good news is good news no implications for the fed trying to restrain things. it is interesting, you look at the week, we did a v in psychology and the stock market, a week ago yesterday hit the all-time high, 3150 in the s&p 500. we ran into ism numbers that challenged the rally u.s. growth close to 2%. weaver an overbought market, little shakeout. now it seems like numbers since then restored that premise that things are getting better or never got that bad as we thought late summer. the question now, we return to the highs. still have valuation relatively full still need trade to fall into line to some degree, to get away from the idea we have a tariff threat before ma

i am carly fiorina with morgan brennan and jon fortt.is risk on on the heels of the presidential tweet a rally as president trump says that they're getting close to a big deal with china they wanted and so do we that trade optimism is all over the place. bob pisani has more. >> how much is is the trade deal worth, about 40 points, we don't know what kind of trade deal there is or if there is one, don't know if it will remove tariffs coming december 15th, or whether they'll reduce the level of tariffs of existing ones that are out there. that's kind of a big issue you can see the effect we were flat to slightly down. as the tweet came out here, within 15 minutes, we were up almost 40 points the old closing high on the s&p 500, 3153. we are comfortably in new closing territory if we stay anywhere in this area. and of course trade related names moved the most on this as always happens we saw nice moves in bank stocks, energy stocks, retailers, typical mover, materials, industrials, all of these are moving on trade related news what's more i

i'm carl quintanilla with jon fortt and leslie picker.eresting morning as we await the fed decision this afternoon. tim cook speaking with japan's nikkei while visiting some apple stores and ink suppliers defending the company's job creation in the u.s. and complaints the company has faced over competition cook saying, quote, a monopoly by itself isn't bad if it's not abused the question for those companies is do they abuse it. that is for regulators to decide, not for me to decide joining us to talk about this and a lot more, managing partner susan line and cisco's chairman emeritus, john chambers. good morning, guys. >> good morning. >> how you doing >> good. let's try to put these comments in some context. why do you think they're happening now out of cook, at least? >> well, i think they're happening because there's a general concern over privacy and over moves to increase privacy at both facebook and apple products but i think for him, this was an interesting moment because it's the first time he's really tried to defend a monopoly h

i am jon fortt with me at post nine, morgan brennan and david faber.

. >>> let's send it to jon fortt for a look at what's coming up on "squawk alley." >> in part, we'reme of that conversation rick was having about trade and its implications, this time for tech, whether it is semiconductors, software, services where should you bet if you think there will be a deal or no deal that's coming up on "squawk alley. ents available now. legislation to take on mega mergers. ylan mui has the latest on the effort >> this proposal would hit the biggest companies, not just tech but across the board it would ban mergers or acquisitions when one of the companies has $40 billion in annual revenue the ban would apply if both companies have at least $15 billion in sales the proposed bill makes it easier for workers in the big economy to unionize. the bill hasn't been introduced, also facing blow back from conservatives. grover norquist, founders of americans for tax reform, calls it a publicity stunt. >> the numbers of 40 billion in sales, what decade does she think we're living in? how large does she think international companies are. we are not giving in a time with

. >>> send it over to jon fortt for a look at what's coming up on "squawk alley." jon?atching the coming ipo of build.com, closely linked to intuit and small business arena, around quite awhile pretty promising we'll see where it opens coming up on "squawk alley. is the monolithic view of emerging markets obsolete? at pgim, we see alpha in the trends driving specific sectors of outperformance. where a rising middle class powers a booming auto industry... a leap into the digital era draws youthful populations to mobile banking and e-commerce... trade and travel surge between emerging markets. every day, our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. >>> dow backing off slightly from session highs, up 313 up 247 now this is a two day look at the dow as the rally continues on the heels of the presidential tweet and ten year past 188. "squawk alley" starts in a few minutes. minutes. don't go away.think we're gonnao "over seventy-five years of savings and se

i am carl quintanilla with jon fortt at post nine of the new york stock exchange.n brennan has the morning off. looking for record highs within reach. s&p hit one earlier this morning. we start with tech's record run on pace for its best year in about a decade, the sectors rally about to hit a wall in 2020 joining us, jeff richards, and paul meeks good morning, guys good to see you. paul, let me begin with you, ask you why? is it because things are expensive on a relative basis? >> that's right. i have been around a long time i remember with lashes on my back what happened when the internet bubble popped not falling for that scenario. i expect the u.s. to grow at a decent rate, fundamentals of most tech companies, not all, to be reasonably good, but the bulk, particularly of marquise tech names are trading at valuations getting me a little scared because i think much too much is priced into some of these names as we roll out of '19 into '20. >> jeff, we hear that. on the other hand, you might counter with the fact some of the names got a haircut second half of the

i am jon fortt with me at post nine, morgan brennan and david faber.intanilla hat morning off. another busy morning in washington the house of representatives has another big vote on the trade front, expecting to pass usmca, the replacement for nafta, on the heels of approving two articles of impeachment against president trump last night kayla tausche joins us with more >> reporter: the vote will be a stark contrast to the party line vote on impeachment. on the house floor on capitol hill, two hours of debate is beginning that will tee up a vote that white house officials expect to be a landslide bipartisan vote, thanks largely because of provisions folded in to win over house democrats by bob lighthizer last hour on cnbc, the treasury secretary said it should be seen as a win for the economy, not a win for house speaker nancy pelosi >> we're going to get in excess of 50 basis points of additional growth in gdp as a result of this agreement people who say this is just nafta 2.0 just don't understand the technicalities of the agreement. this is a whole

i am jon fortt with me at post nine, courtney reagan, david faber.morning off. we begin with the latest on trade talks with china let's get straight down to kayla tausche with the latest. >> the u.s. and chinaannounced a phase one trade deal that washington hails a

i'm carl quintanilla with morgan brennan and jon fortt. day today at least in politics as the house of representatives kicks off a day of debate expected to end tonight with the impeachment of the president of the united

i am carl quintanilla with jon fortt at post nine of the new york stock exchange.or record highs within reach. s&p hit one earlier this morning. we start with tech's record run on pace for its best year in abou

but first over to jon fortt. >> we know tech's been doing well and talking about what?ere does it go from here and what's going to determine which tech companies have strategic advantage in 2020? we'll take a look coming up. ♪ 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 if stocking up on the bubbly ahead of new year's eve, look at the price tag. might want to stock up this year, the u.s. threatening 100% tariffs on french champagne, cheese and other goods joining us, senior vice president of wine and spirits wholesalers of america michael, good to talk. >> good morning. thank you for having me. >> talking about a host of products, not just champagne, that's the focus with new year's eve a day away talking french wines, right? >> yes now i can hear you okay, yes >> we're talking not just about champagne, that's obviously the headline, talking about a number of other produc

so we'll have to see what happens when asian markets open once again. >>> let's send it over to jon fortthat's coming up on "squawk alley. >> we'll have more exclusive comments from the ceos of amson web services and verizon coming up on "squawk alley. >>> a surprisingly tough forecast for housing in 2020 released today diana olick has more. diana, what have you learned >> you would really think this would be a much better forecast given the growing demand for housing, the strong economy and still historically low mortgage rates. but realtor.com, one of the nation's largest home listing siting, says the housing market will slow down next year and we could see a very troubling new record set the headline of its report is home sellers will stay on the sidelines. that will cause the housing shortage to get even worse and supplies could hit that record low. low inventory will cause sales to drop just under 2% annually and home prices will flatten nationally as millenials, who will account for half the home buying market, will struggle to afford overheated prices in some markets. however, real

i am jon fortt with me at post nine, morgan brennan and deirdre bosa carl has the morning off we beginh the markets in the middle of the biggest drop in four weeks, with only two trading days left in the year. tech stocks also a part of today's selloff, with all faang stocks in the red, but the overall sector poised to close out the best year in a decade. and joining us now to see what 2020 has in store is managing director, victor anthony, and portfolio manager at needham growth fund, chris retzler >> good morning. >> i look at the tech stocks that did the best this year, a lot of them were kind of underdogs, roku, top of the list coming into the year, people talked about netflix would beat up on them this year, the narrative seems to have shifted. apple is another one people thought apple would have a bad year not only trend wise in tech what's important in 2020, are there underdog names you particularly have in mind? victor >> well, mostly on small cap large cap, i see amazon, alphabet, google, facebook continue to outperform >> those aren't underdogs. are they >> no. angie's home s

i am carl quintanilla with leslie picker, jon fortt at post nine of the new york stock exchange morgannnan has the morning off. busy morning the street making big tech calls, including upgrades of alphabet apple price target up to 300 couple upgrades at nike, goldman. a lot of research to the up side. >> facebook and google in particular have been in the penalty box over regulation concern, trying people in front of congress, having to answer questions. as that was going on, we saw earnings hold up i had the question how long before the numbers outweighed some sentiment while the upgrade seems to be happening. >> speaking with all of the market strategists day-in and day-out, they talk about the new trend of cyclical growth, not new per se, but some of the themes they're focused on while these companies play into that theme. interesting timing with the upgrade. seems like they've seen sundar pichai assuming the role as one that would lead to brighter future for the company you know, also in terms of valuation, seems like that's another thing that they look at as being a net positive. >

i am jon fortt with me at post nine, again, morgan brennan and deirdre bosa.arl has the rest of the decade, carl, take it off. >> if you're going to have a light show, hong kong is the place to do it with all of the buildings. >> yes we'll begin with what's been a record year for tech it is on pace for the best year in a decade with the nasdaq crossing the 9,000 mark earlier. household names like netflix led the charge, up more than 4,000% in the last ten years. what stocks are poised to make their own run in 2020? joining us now with some answers or some guesses, gene munster of luke ventures, john freeman of cfra guys, good morning gene, i think the 2000s in tech were about the web and open source, whether you look at consumer enterprise. the 2010s were about mobile and cloud. i would argue 2020s are poised to be about embedded in wearable and automation, ai, whatever you want to call it. what do you think the main story of 2020 is going to be tech wise, and who is poised to take best advantage >> definitely the right question, agree when you were posing tha

i am carl quintanilla at post nine with morgan brennan and jul julia boorstin jon fortt has the morning. 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 t

. >>> let's send it over to jon fortt for a look at what's coming up on "squawk alley." >> hey, davidch companies, two earnings reports last night monday dough db up 2%, stctih fix up 10. the ceos of both coming up on "squawk alley. have you ever worked with dr. francis? oh yeah, he's ok. just ok? guess who just got reinstated! well, not officially. nervous? yeah. yeah me too. don't worry about it, we'll figure it out. i'll see ya in there! just ok is not ok. at&t has america's best network, now with our best plans, at our best prices, starting at $35 a line for 4 lines. new from at&t. 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. i am dominic chu markets moving between gains and losses on incrementally positive development on u.s./china trade front helping to provide some positivity, leading to outperformance in economically sensitive sectors. energy is an up side standout, helped by higher oil prices on

i'm carl quintanilla with morgan brennan and jon fortt.bviously an historic day today at least in politics as the house of representatives kicks off a day of debate expected to end tonight with the impeachment of the president of the united states eamon javers joins us this morning with the latest. good morning. >> reporter: good morning, carl. it's oddly quiet here at the white house today. we don't see senior administration officials out here defending the president or making arguments we don't see any events scheduled with the president publicly, other than his departure later on this afternoon. nonetheless, the president has been venting some of his frustration that we saw boil over in that letter to nancy pelosi yesterday and continues in tweets this morning the president saying can you believe that i'll be impeached today by the radical left do nothing democrats and i did nothing wrong. a terrible thing read the transcripts this should never happen to another president again. say a prayer and, carl, having covered the last impeachmen

i am carl quintanilla with morgan brennan, jon fortt at post nine of the new york stock exchange starth apple shares are trading higher adding to this year's monster rally apple is up 70% for 2019 so one of the best performing trailing it, microsoft, about 50% for the year joining us, ted smith, co-founder cramer likes to say apple is the key to the market. do you agree >> i do. >> what about it is so important? >> i think the breadth of technologies they deliver to consumers and enterprises over time, and the fact in the latest cycle where they come out with apple pay, apple card, all of the partnerships they've got going, in addition to core products, they're so dominant on so many fronts. >> getting investors familiar with new fronts has been a bit of a challenge this year, feels like we're getting there, wouldn't you say >> the thing we talked about is slowing of iphone sales. the dominant apple story of the last decade is actually coming, that chapter is over they have to transition people to things like subscription services, streaming is one of the big wars payment, they're doin

i am jon fortt with me at post nine, morgan brennan and david faber.has the morning off >> we begin with the amazon ceo speaking at the defense forum where i was over the weekend among the headlines and there were a lot, a warning about potential risk for the u.s. if tech companies decide not to do business with the pentagon. >> my view is if big tech is going to turn their backs on department of defense, this country is in trouble. that just can't happen so we have to, it is up to the senior leadership to say i understand these are emotional issues, we don't have to agree on everything, but this is how we're going to do it we are going to support the department of defense. this country is important. >> meantime, heavily redacted 103 page document that was just made public a short while ago, amazon says president trump launched, behind the scenes attacks against the company, which led to it losing out on the major jedi contract for cloud services that we have been covering so closely. guys, in general the bottom line from jeff bezos at the event this w

when we come back, amazon and the cloud, jon fortt has an exclusive with andy jassy.e'll show you that. cramer's mad dash, countdown to the opening bell futures clos ckn monttsn the trade commen ba ia me (brakes screeching) okay. so, today you're going to leave your phone with a guy named flip. (ding) but it's more than your phone, it's your business, your customer data, your sales figures. and who can forget, those happy hour selfies? not flip. (honking, gasping) this isn't working. introducing samsung business security solutions, with knox software. with the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isn't. samsung business solutions. even when your phone isn't. johnsbut we're also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. from the day you're born we never stop taking care of you. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies po

>> generally speaking, yes >> jon fortt just asked the mongo ceo, and we had this conversation yesterday with fra frank of snowflake everybody is a software company when in reality that's not actually the case. people are pretending to be something they aren't as you alluded to with everybody calling themselves a technology company whether they are or not. >> the multiples on the software companies and the multiples on these profitable sas companies are so tremendous everyone wants to paint themselves that way the reality is exactly as you mentioned. a lot of them are. wag, in hindsight, these things seem sort of obvious wag should have never raised $300 million it was a good business, a decent business could have been a nice profitablebusiness of a certai size poured too much money into these companies and it ruins them. >> it's a softbank effect as we talked about before. and that's sort of where and why we are where we are in some respects is that true >> well, look. i think one of the things that's now driving it is the employees are recognizing what's actually happening. and when th

. >>> let's send it over to jon fortt. >> we are going to check back in with the goldman sachs financialconference and wilfred frost. ceo of bank of america, brian moynihan, will join us in just a few minutes on "squawk alley." t to buss, we're a reliable partner. we keep companies ready for what's next. (man) we weave security into their business. (second man) virtualize their operations. (woman) and build ai customer experiences. (second woman) we also keep them ready for the next big opportunity. like 5g. almost all of the fortune 500 partner with us. (woman) when it comes to digital transformation... verizon keeps business ready. >>> welcome back to "squawk on the street." i'm dominic chu. markets largely in a holding pattern ahead of that big fed rate decision later on this afternoon. we are keeping a close eye on the consumer discretionary sector, as you can see here showing a bit of weakness. one of the big laggards as we head into the all-important holiday shopping season. as if we look at one of the etfs that tracks retail names, we see big movers to the downside the worst perfo

i am carl quintanilla at post nine with morgan brennan and jul julia boorstin jon fortt has the morningip that quickly got bought nasdaq up 9k yesterday, crossing 8,000 in august of '18 apple up more

hit highs of the day, the dow clicked to a new record high as we speak, 28,333 let's send it to jon fortt. >> hi, mike. not just the dow, micron had a big year, despite significant head winds, up 2.5%. we have the ceo join us on "sawaly.quk le each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. breaking all the usual rules of real estate, attracting the super rich with nearly no marketing. robert frank joins us on set he has more. not about 15 cpw any more. >> no. this is the new "it" building. there's always one in new york always something new with this one, didn't buy a single advertisement, list a single apartment, have a sales office, release a single public photo. 220 central park south, the super tower off central park is home to half the

jon fortt has that >> reporter: adobe has a beat for fiscal q4 on the top and bottom lines slight beattop 2.99 billion in revenue versus 2.97 expected earnings per share came in at $2.09 versus $2.26 expected. on the guide for fiscal q1, revenue could be seen as a bit light but pretty much line 3.04 billion. the street was looking for $3.09 billion and the gap earnings per share projection that adobe is giving for the current quarter right in line at $2.23 looking at the quarter and where they outperformed, their digital media overall annualized recurring revenue came in dlarts 8.4 billion versus 8.33 expected we'll listen to hear more on the call adobe did give a pretty rosy and bullish analyst presentation back at the end of october, which made people feel better about where the company is headed in 2020 the stock has rallied since then after this report it's up a couple of percent, guys. >> thank you very much tonight on "mad money" jim cramer will talk to adobe ceo about these results. that's coming up at 6:00 p.m. eastern time mike, this stock has had a pretty nice run up 35% this

jon fortt has more on their big run and if they can hold that number one spot next year, as well >> wilf. january 2nd, apple delivered an earnings warning the stock tanked 10% the next day to $142 a share. june 3rd, the stock was at about $173, down from where it was a year earlier that's the day of the wwc note, an announcement of big updates to software to apple watch and tv, iphone, ipad, and mac. that's what started the stock's true turnaround. it's up 69% just since that day. and today, apple's p\e is over 20 rare territory for this stock. sales and profit are actually down year over year. so can apple deliver again that probably depends on whether 2020 is the big year for 5g adoption in the iphone's next product cycle. the first clues may come again at wwdc in june 2020, guys >> jon, if we were to snapshot back to the start of the year and explain why the stock has rallied quite so much, would you say it was more of a case of the old, like the iphone cycle not being as bad as was feared then, or because the new, whether that's appletv plus or these new wearables, are doing so much

yeah, dan, to dig into it a little bit further, we had aws chief andy jassy on the network with jon forttf the things he put to rest was any kind of speculation that the cloud business at that company could be spun out or separated. but it does raise a question, whether it's alphabet or whether it's facebook or some of these other big-cap tech companies, whether there is more value to be realized with some of these businesses becoming stand-alone. your thoughts? >> yeah, i mean, i view it as, if you think about it from a longer-term perspective, these companies have these various businesses, sometimes you use one business to fund another, i'll use amazon as another they don't make hardly any money on their retail business they make an egregious amount of money off of the advertising business and web services and that funds the retail expansion. if you were to break that up, obviously, the web services business would be great and valued, you know, highly, the advertising business, et cetera, but you look at the retail business as a stand-alone, it doesn't work as well same thing with googl