mike santoli looks at why the two companies may want to become one.>ology continues to drive down the cost of investing. and it reflects the push for greater scale in an investing industry dominated by low cost index funds, zero commission trading and a multitude of digital start-ups vying for the investment dollars of younger consumers. schwab was a pioneer of low cost broke ramble from the down of the 70s. and it's bnd has been to make investing accessible abaffordable. the ameritrad the product of numerous mermgers had become a sizable competitor. gether they would house about $5 trillion in assets stocks, bonds and bk accounts. in recent months. charles schwab led the way to zero commissions, a move hurting shares of amerd trade more due to greater emphasize on trading volumes. t gettinher would possible position the companies better in a lowe interest r world. relying on collecting customer cash balances. investigative through a mobile app or allowing a software model toetermineortfolio allocation mean the companies must upgrade zolg offerings an

go grayscale. >>> welcome back let's send it over to mike santoli for his third dash board of the dayere pretty frightened back in august and september, and they are definitely unafraid for the moment if you look at ways to track the sentiment, investor positioning, deutsche bank has sort of a composite look at this this shows equity exposure based on fund flows, based on professional investor positioning with regard to futures, and all the rest of it. so obviously, this is going to oscillate up and down, around an average. this is a very important peak. that's that early 2018 peak that was really the closest we've come to sheer universal exuberance in this whole bull market and right here you see, it's getting up there i wouldn't say it's yet extreme, but we seem to be in some kind of a range where we're capped roughly around this 0.8 level. now, it doesn't mean the market can't trudge higher as things get better, or for that matter, even the fact if this goes down a little bit, it still probably can be okay, because you see we sort of existed there for most of 2017, when the market

mike santoli, though, i'll start with you same question i asked top of the last hour.s is this a breakout >> i think the definition is you put some distance in between the current levels and the previous peak the big question is are we going to get to a point where we stretch the upside a little bit more and people get over confident? that's not quite happening yet this is happening i think because of the removal of challenges and head winds. right? trade, the fed didn't make a mistake that we can see. recession fears have waned it's not really about a catalyst it's just about a contexts the market's at a record high. buyer to the upside. i think that's what the trade is >> all right keith, quickly your thoughts on this? >> yeah. like i said at the top, we're close to a breakout. i want to see accelerating volume into that trade then that will put it all together i think we've got more room to run here in the next two months. >>> you might have heard about this, but the dow closing at a new record high today. you're welcome, america. first time it's done that since mid

mike santoli, let's start with you.ff the lows of the session. >> got a little bit of a test, right? the headlines about maybe we're not going to get this phase one trade deal by the end of the year and the market leaning into that, as everybody has been observing, looked a little bit stressed, sentiment was complacent the top started to spin a little slowly after a few days, just kind of sitting there. it was knocked over. didn't change much by the end of the day. market kind of held in there bought this little dip, at least on the initial move. it doesn't change the overall picture. although a slightly more defensive tone creeping in parts of the market. >> if we didn't get a phase one deal this side of christmas, do you think that would damage the market >> no, i don't think it would damage the market too much after so many days of record high after record high after record high, to be honest, i was nervous about that i don't mind a little bit of a pullback here. the market is still pricing in a trade truce and any d

mike santoli, i'll start with you., another record here. >> yes it's slow momentum but it's real momentum nobody would want to stay in the way of just a seasonal effect, the fact that we have this benign backdrop in which bonds are trading and given a pass to any soft economic. you have decent economic numbers this morning from the gdp, durable goods, which kind of fits right in with what the market has been trying to get hold of, which is that we've had a trough in economic activity. it's been forever since we've had even half a percent pullback i think that happens when essentially it's don't fight the tape and don't fight the fed type market. nobody is fighting this market. >> and that's helping bond yields as well today. >> absolutely. 1.76 or 1.77 on the ten-year that's confirming what the stock market has been trying to do. >> josh, santa rally >> i know people hate when you do this, and i'm going to commit not quite a chart crime but an index crime. if you pull out boeing and you pull out 3m and exxon, you proba

update this hour morgan, back to you. >> sue herrera, thank you. >>> let's send it over now to mike santoli for his second dashboard. mike >> morgan, markets are straddling the gap between stock and bond valuations, actually helping to support bond valuations bond yields moving up has raised the question of at what level they might be a threat to the stock market it's probably going to be a w ways -- oh, that's the wrong one. we're going to do this first this is the absolute valuation, forward basis of the s&p 500 what you see here is, it is pretty much as high as it's been this entire cycle, except for this one bulge in 2017 and 2018, when the market was pricing in the huge windfall effect of the tax cuts, but they were not yet in estimates so really on a like for like basis, it's almost as expensive as the market has been in a while. but now look at it compared to corporate bond yields, and you'll see there might be a little bit more of a cushion in blue here is the s&p 500 earnings yield that's earnings divided by price. this is the high grade, investment grade, corporate yield right the

let's send it over to mike santoli for his third dashboard of the day mike >> morgan, one big questionand elsewhere, union or division there was an op-ed by carl ican in the "wall street journal" today about some efforts on the s.e.c. that he sees as hostile to activist investing regarding proxy advisory look how activist investors have done relative to the s&p 500 in recent years not very well. activists, hedge funds are in yellow right here. two years they outperform. 2015 and 2016. that was kind of the heyday of activism going out, saying that companies should recapitalize or break up or change their strategy it's been pretty poor in the last couple of years now, take a look at the spin-off stock index. this is an exchange-traded fund, cfd is the symbol. it's recent spin-offs, how they perform relative to the market that also basically peaked a couple of years ago. it's been an awful performer historically, spin-offs have been very good performers long-term, a lot of hedge funds involved maybe this is something to do with it. there is a theory out there going around, that perhaps ac

let's send it over to mike santoli for today's market dashboard. mike >> morgan, thank you very much we're going to start with something of primary concern wall street starting to turn its attention to the whole campaign sequence next year and probably goes without saying, no leader is infallible. we'll see what that means for the stock market with some leadership groups. and the message of the masses, what's the average stock, the crowd of stocks saying about the overall index action then pocketbook issues, consumers and their mood about their own finances so first of all, of primary concern, this is a chart from wells fargo's derivative strategy group, showing the forward expectation of the markets for volatility level it's essentially the pricing of volatility index futures and other derivatives. and it shows you by calendar slice here when the market believes you might see a concentration of volatility or a little bit of a spike in volatility what's this date right here? well, it's early march that is when the super tuesday primaries are. perha

i have a really good feeling about this. >>> welcome back let's send it over to mike santoli. rd of the day. mike, we've been looking forward to this. it is raised. >> what is raised? well, it's the correlation of all fascinating things among different styles of stocks this is from goldman sachs essentially the correlation among several style factors, growth, value, size, dividend yield, momentum, volatility. all these things that are supposed to work or not work on their own. everything basically is moving together that's an unusual situation as you can see. it's a bit of a confusing message. the market is not rewarding or punishing any particular type of stock or category or sector. what goldman says is, look, you don't necessarily have to make a big bet on this. also by the way, it probably shows that it's a relatively strong market that can encompass a lot of different types of stocks, it's not just one thing. zero sum game against another. >> mike, awesome thanks for that. >>> up next, the key things every investor needs to tch waas we head into a new trading day when "clo

mike santoli heads to the telestrator with that. >> big brands going small.explain that >> coming up on "fast money" a top technician says it's time to do the unthinkable time to sell one of wall street's most beloved stocks [grunting] keep going, keep going. [maniacal laughter] gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. >>> welcome back let's sends it over to mike for the final installment of today's dashboard. >> time for investors to ask if the moment to fight for little bye. people have been waiting for small cap stocks to do better. this chart shows seasonally it's around the time of the year when they do better so the top, this is essentially, when this line is going up, small caps are doing better. russell 2000

commercial free coverageof all the action >> mike santoli is here to break down these crucial moments stephanie link is here as well let's get things off with reports charles schwab could buy td ameritrade. mike, what's the key thing you're watching? >> the key takeaway, the stocks are both up. there's financial logic behind this the big picture trends are fascinating. if you look at the long term path of brokerage commissions of charles schwab, first one to go zero going back a bit over 20 years when they went down below $30 it was considered a big deal for online only trades they've been riding this curve for a long time. despite their size they remain at the front edge of giving cheep, accessible access also, these stocks in this area of financial services, schwab, blackrock, cme group are more data platforms and processors at more than they are lenders or direct active asset managers they are on the right side of history using technology on the down side are those active mutual fund companies that over a ten year period have lost value in aggregate. you see some of them right ther

mike santoli has his market scoreboard kayla, we'll start with you on china. >> reporter: we had a little bit of a whiplash in the last hour earlier today we learned there was an agreement between the u.s. and china on the roll back of certain tariffs for the this phase one deal now reuters is reporting that there is not a final decision and that there is some internal strife which is what cnbc had been hearing senior administration officials tell me they working to secure a deal with china by the end of next week and even if they can't meet that deadline they want this deal sign sooner than later. they feel letting the deal linger opens it up to risk reuters is reporting that the u.s. has offered to co-host a rescheduled apex summit here stateside in january given the desire testify the white house to tie up phase one and expected to be signed before then if it does happen >>> kaykayla, i guess the key tn is who within the administration may be trying to block this? >> reporter: two weeks ago we reported peter navarro was not happy with the direction of discussions, that felt like phase

. >> mike santoli with the telestrator. telestrator his trustee steed every day. >> he grabs the reins. >>> here we go. >> up next apple hits a record high as analysts named -- get this, robert mueller initiates coverage with a buy. we'll dive into that note. >> i think he's biased. >>> nike parting ways. more direct relationships. we'll break that story down. (nervously) ready? ok, ready sweetie? nice, you ready to go again? are you ready, dad? i'm ready. imagine if your life insurance could help you live for today and safeguard tomorrow, so you're ready for anything. life insurance designed to protect generations of families. that's the power of pacific. ask a financial professional about pacific life. ♪ ♪ ♪ ♪ ♪ ♪ >>> welcome back to "closing bell." rbc capital analyst robert mueller with a note on apple saying i buy, initiating coverage with an out performing rating avenues for deeper integration into its customers lives. >> wonder why they're just initiating now only just discovered apple >> sometimes when you switch an

. >> mike santoli is here to break down all these crucial moments of the trading day is he joining usact conference in san diego good afternoon to you, mike. good to see you there. josh brown from wealth management as well let's kick things off with softbank reports first quarterly lost in 14 years. >> blame it on the vision fund, billion dollar unicorn this had to write down its biggest investments, 6.4 loss to the group and uber which continues to flounder as a public company. perhaps most interesting and worrying was his comment that there may be other potential wework like funds, he pointed to wag, the dog walking app other questions around portfolio companies as well. if the other run out of money, too bad. he promised this morning no more rescues. >> dee, it's okay, right wework is on the down part of what is considered to be a v-shaped path. >> that's right. he says he has his best people on it, which have turned around spring, he says. of course, that's up for debate. one analyst called it an unmitigated disaster he says they will turn around wework by cutting costs and stop g

thank you for that, mike santoli. >>> mcdonald's, big story.asterbrook is out after violating company policy over consensual relationship with an employee kay rogers has more and who is set to take over. >> that's right. mcdonald's announced that steve easterbrook was out effective immediately after demonstrating poor judgment after a consensual relationship with an employee. easterbrook is off the company's board of directors the new ceo has overseen business and strategy, and working closely with franchisees on initiatives like fresh beef, experience of future upgrades playing a role in the company's turnaround he was hired as a mentor in an email to employees now, he did get push back in regard to speed of the tech upgrades and roll out at mcdonald's as it has undergone changes. he said that he was a natural successor to easterbrook before this unfolded. but he chases a challenging environment in the food space. mcdonald's had the first miss on earnings in two years. he has to continue to build on technology momentum and delivery business as

that was mike santoli. here's what's coming up. >>> give me five jpmorgan adding five below to the focus list the street's number one retail analyst and man behind the call makes his case and gives us his best ideas for hour call of the day. >>> plus, we want to hear from you. keep your questions coming go to cnbc.com/halftime or tweet us using #askhalftime. "the halftime report" is back in two minutes. just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just >>oh, this is easy. yeah, and that's >>oh, just what i need. courses on options trading, webcasts, tutorials. yeah. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. >>so it's like my streaming service. well exactly. well except now, you're binge learning. >>oh, i like that. thank you, i just came up with that. >>you're funny. learn fast

so we asked mike santoli to grad this recent runup. >> the stock market's run to record highs has taken mm vestors by surprise after a late summer bout of recession warnings. the question now is whe ter rally is on firm enough foundation to kerr on .. the shoert answer the market clb rates li raised highly on fundamental and technical grounds but in coming weeks or months overexcited excitement and could present a clalg to rap i said further gains to. to fresh to fresh highs on 3,100 has been impressive broad and accompanied by notable strength in foreign mkets. the tally of individual stocks climbing versus those dropping has made freshighs with the dexes, suggesting healthy participation in theanally. seconders most sensitive to upturn in economic growth have led the way in recent months including financialsrt trans and smip conduct%. non-us stocks have done better. that's an sbapgs it's gaining worldwide as bond y lds lift from record lows. the market's opinions to brody better than expected third quarter earnings stilt down slightly from a year ago suggest investors v the last quart

mike santoli takes a closer looe ater the new highs can hold. >> wall street's record rally t slowed in rec weeks but not yet stopped. >> the broad s&p 500 drifted to a fresh all-time high monday, it up only a fraction of a percent over the past ten days. now with th i ahead by nearly 25% for the year, the question turns to wheer the rally has already priced in most good news on th economy and trade or whether the market is really pausing ahead of a typicalun homestretch higherhrough december. the key drivers for the market's recovery since august remain in placsi raant rec fears in late summer now appear unfounded. mobile growth is showing signs of picking it. the federal reserve is on hold with rates at the benign level and seasonal factors favorks st at the year end. and when a stockains 20% the following of the yea is also up about 70% of the time, albeit with moreodest gains. still, some analysts are quibbling with the market action here and there. the porti of alltocks that are keeng case with the major indexes has falleoff a bit. the c economiclical stocks that led the way acr

we're going to send it over to mike santoli. >> the 1% is in charge of the markets, just about 1% ofp 500 stocks have an outsized effect but that's also the case. here are though the five stocks this year in the s&p 500 that have had the greatest impact together on the s&p 500's gains. these are not the five largest stocks in every case but the ones that are very large and have added a lot of market value and therefore got the s&p where it is. all of them except for amazon have outperformed the s&p and by a lot. the s&p is up now a little more than 24% year-to-date but amazon is so big that just that 15% gain these together have contributed about 6 percentage points of that 24% gain in the s&p 500 so about a quarter of the overall gain, five stocks. these 495 stocks have done the rest that's not necessarily a concern because it's not truly a narrow market you have most stocks going up, the equal weighted of the s&p also at a new record it's essentially the essence of a market cap weighted index like the s&p is when it's kind of going up, certain stocks are going to be adding bulks an

. >>> well, let's send it over to mike santoli for his second dashboard of the day >> calling this one take a look at a couple contrasting price trends right here chips versus chips this is the semiconductor's index as well as pepsico, which of course the majority of the business is frito lay. that's chips right there i think it's a good proxy for whether the market wants to be offensive or defensive and that would be pepsico and the like here you have this really clear breakaway to the upside, by semiconductors pepsi had been hanging in there pretty well. nothing fundamentally much has changed about the business it's just money draining out of that defensive trade the big question, honestly, right here is whether this is getting a little bit overheated. that's a pretty steep trajectory, hitting new highs, great as a bellwether, but maybe has to calm down a little bit as the overall market perhaps is getting to a point where the rally needs to take a breather, guys >> mike, thanks so much for that but the broader market today has improved during the course of the show, back in record t

joining us is mike santoli coming to us from the new york stock exchange this morning. here we should look at this, private equity, what it means for the car war with buffet and market valuations overall >> reporter: yeah, first of all, the kind of business that tech data represents is pretty reflective both of the type that private equity would like, which is steady. it's not very glamorous. it hasn't been growing very fast and modestly developed it has not been embraced but you have some up side if you want to leverage it for private equity and improve the operation. there was value there, in other words. when it comes to buffet, it would only have represented 1/20th of the cash he has sitting there. the idea you have a pretty good business that's been around, pretty defensible type economics and why not get involved because the valuation, even at the in initial acquisition by apollo doesn't seem very demanding. that makes sense what you've eluded to, he does not want to go toe to toe with private equity he has a different time line and horizon. he doesn't feel like he

i am morgan brennan with mike santoli, david faber, live from post nine at the new york stock exchangearl quintanilla is off, jon fortt is on assignment but we're going to begin with wework losses balloons to 1.25 billion in the last quarter. roger mcnamee joins us, along with business inside henry blodget. good morning roger, i will start with you losses at wework, the turmoil continues. >> the thing that scarce me about we work, it could be a trigger of other issues in the market it is huge the scale of investing in unicorns that were i think at best unproven, maybe at worst not real businesses is such that as the stuff implodes, it could take softbank with it. softbank is big enough to trigger all kinds of issues for the market. >> you're scaring people saying it could take softbank with it significant losses, no doubt that's a few steps down the road the saudis are 45 billion in, they're getting 7% deferred return, and then other investors, it is not clearly softbank at risk in the way you -- >> if they blow through enough money, it signals a fundamental change in how we perceive n

. >>> let's send it over to mike santoli for the second installment of the market dashboard. >> so safety dance is one way to put this this is the way the credit markets are really underwriting the strength and protecting equities from what otherwise might be high valuations this is a chart of the s&p 500's free cash flow yield when the free cash flow yield is high, it means stocks are relatively cheap that's in blue then we have the triple "b" corporate debt yield in orange, and that actually has been relatively steady but also very favorable. look how low it is right here, just above 3%. now, when this spread is very wide, stocks look extremely cheap relative to bonds. that was the case right here, 2011, 2012 but also, by the way, here, and guess what, when they were close to each other, late 2017, early 2018, that was when the market got very rich and we peaked in an important way, january 2018 here you see, pretty wide spread again, because the bond yields are stubbornly low right now even though stocks on an absolute basis do not appear inexpensive at all, relative to other parts of

the economy, global data regarding the global economy, and of course the equity markets i know mike santolit market commentary yesterday showed a correlation of stocks and the price of instruments in the treasury complex. and of course when price goes up, yield goes down. they correlated because they don't correlate if you look at yields versus equities and that really is more of my focus. a historically many investors always fear interest rates, but i point to some of the best times over the last several decades and solid economic data represents an upward movement in interest rates that should be followed by an upward move in equities and everything beyond that makes me scratch my head a bit today we had gdp jump from slightly under 2% on slightly over 2%. and to many, that isn't a big deal, but it is a big deal to me and i think that it is psychologically important as well as we twra ry to tie up maf the issues that may be holding the economy from producing more horsepower as we come close year end. look at the intra day chart and it had a positive effect and that is the way it is suppos

i am carl quintanilla with leslie picker, mike santoli at post nine of the new york stock exchange jons on assignment, morgan brennan is in huntsville. the resurgence of rocket city, usa. morgan >> reporter: hey, carl, that's right. with a population of fewer than half a million residents in huntsville, alabama, one could be forgiven if they don't realize how significant this area has been to modern american history. before the 1950s, it was watercress capital of the world. the army moved a ballistic missile program here in the 1950s, into the 1960s. nasa was established the marshall space flight center, began to develop rockets for major space programs like apollo, and that legacy has continued all the way into today. there's something like 400 aerospace and defense companies operating in the huntsville, alabama area today part of the reason this is called rocket city it is very much still a government town. red stone arsenal, the u.s. army post here is its own census designated place, it is the top employer in the area nasa says marshall space flight center has a total economic impac

i'm mike santoli at the new york stock exchange jay powell suggesting this morning that rates are onold for now. what could that mean for one of the hottest corners of this market the home builders. let's bring in craig johnson of piper jaffray and gina sanchez craig, obviously home builders and housing related stocks has been one of the stronger parts of the domestic economy. bond yields going up, mortgage rates perhaps have bottomed. what does the trend look like? >> so mike, let's put it all into perspective if you look at this first chart we brought in, we looked at all the big home builders. you can see how they've outperformed by over 20% so the big question now is is this going to continue are we going to stall out here if we go to the next chart and look at the home builder chart itself, we're running into overhead resistance. right where we were in december of 2017. and so from our perspective, we're going to need to see some sort of new catalyst may maybe rates to come back down or some accelerant to come back through this i've seen i did ver jins in the short-term indicato

sarat sethi is here and mike santoli.s is an industry you know pretty well. >> we have over 2 billion in schwab >> serving on their advisory board for many years >> schwab cut trading fees they were the first people to do it it's really a consolidation of complementary assets so i think if you're schwab you're looking at a big potential of complementary sinner kynergies on the revenue. you have customer base, clients like us that are sharing both and if you get the synergies especially given td has 25% of trading going to zero. so you can see it from their side the question is how big do they become you guys are controlling 40, 45% of the business. >> would it affect you as a customer >> no, it wouldn't it would make us simpler we do use fidelity we have a couple others as well. does it provide any variety to our customers? maybe there would be more money spent on technology. >> what would be a fair price? >> i think when you look at it -- >> that's what's up in the air right now still? >> right right. it's a question of

i'm carl quintanilla with david faber, mike santoli at the new york stock exchange.s the morning off after ten record highs for the s&p, this month alone, looking for another at the open as data is going to cross the board today. durables, jobless claims, revised q3 gdp surprised to the upsi upside road map begins with president trump's upbeat outlook for trade

mike santoli would have been telling us what we're watching, but i'm told that they're coming out, courtney walmart does have its numbers out here for the fiscal third quarter. it looks like earnings coming in at $1.16, adjusted that beat estimates of $1.09 on revenues of 127.999 billion. we take it three decimal points here that is slightly below analyst consensus of 128.654 billion walmart does say that there is around a billion dollar drag from currency on revenues just for the quarter. so the retailer is, though upping its earnings guidance for the year slightly on the back of these stronger q3 earnings, it's now expecting a slight increase. previously it was between a slight decrease and a slight increase of earnings for the year u.s. comparable sales for walmart coming in up 3.2%. that's slightly above expectations, and also the 21st straight quarter of growth for that metric. traffic also higher for the 20th straight quarter there for those walmart stores >>> now, net online sales in the u.s., so these aren't comps, these are net. these grew 41% that's going to be the strongest quart

right now with a look let's welcome christian amani and cnbc senior markets commentator mike santoli.oth for being here. mike, first of all, set us up with 28,000, what this means, how important it is and what momentum looks like from here. >> i think the fact that it's a new high and it's confirmed by new highs in the other indexes and also strong rallies around the world hitting at least 52-week highs means that the market is in tune with this idea that it's sniffing out a revival in global activity that's been the message of the markets. if you want to look at what the markets are suggesting and infer that's the outlook in the next several months, it is cyclical it is -- the global picture is firmed up. all of that is on the comp i think the only risk in terms of the levels we're at is the idea we're around a 2% rally in august at 2900 on the s&p. or if we get to 32,000 on the dow, that might not seem like a relief that's the relationship we have to watch we're not there. >> you think that will be higher than where we are and we're looking for new highs? >> absolutely. i think it's

kayla, thank you joining us with more, mike santoli and also scott ren how much is left in terms of uphe expectation that we get a deal? >> i think the premises of the rally for weeks has been progress on trade. i think any message of deescalation is what the market feeds off of it is not about the details or even about when, but it is about make sure tariffs are on a track to come down and just releasing the pressure valve on the global economy. i don't think it is the market saying this means great things for u.s. companies it is a way to release global growth a little bit. and you are seeing yields a little bit lift, you see the ten year treasury yield getting back to september highs and so it is a big relaxation trade. because we were afraid of things that had not come to pass. >> what is the extent of the risk to disappointment how much of this is priced in? >> it is getting to a point where the markets are stretching and testing how much good news it will take to keep going high higher 3115 in the zch s&s&p, just a ha percent or something like that, is a 3% advance off the prior

consolidate an industry going through massive disruption for a closer look let's bring in bob pisani and mike santoliou think is the key driver is it scale? is it the fact that the commission fees have been cut to zero what is it that these companies need that's driving this deal? >> first you have the sent irj story, remove costs, keep more revenue but scale is the big thing. if your average revenue per customer keeps dropping because commissions go down, how did you get more revenue you get more customers that's the scale story commissions going to zero, a very profitable bank business, 60% of schwab's revenues are banks but the amount they pay to their customers is very low, the rate, the interest rate, some pressure from other competitors like robin hood and fidelity have been making noises, we will pay more to bank for our customers, they are under pressure the final thing that's left is the advisory services, the wealth management business, it's a small part of schwab's business being 25% but it's growing. other parts of that adviser business in other companies are worth a lot. i think that wil

close to reaching a trade deal where have we heard that one before joining us now to discuss a mike santolieling optimistic this time or is it getting to a situation where it's the boy that called wolf >> obviously the market is not dramatically pricing in instant gratification after what larry said, but i do think that the premise of this real that we've seen from early october and before that since august is deescalation of trade. other parts of the premise of why we're rallying here is confidence that third quarter is the trough in growth, cyclical stocks doing better, bond yields going up, maybe the fed stuck the landing. all of those things am a mosaic are the picture of where we've come from and where we're hovering at these highs. i do think that the activity of unusually flat action in the major indexes for seven days when they were already overbought, when people were getting a little bit more bullish i think it shows you that kind of the -- the market has declined, lots of excuse toss pull back and it's seizing on this small kmus to nudge higher a little bit. i don't think we've g

i'm carl quintanilla with david faber, mike santoli at the new york stock exchange.ramer has the morning off after ten record highs for the s&p, this month alone, looking for another at the open as data is going to cross the board today. durables, jobless claims, revised q3 gdp surprised to the upsi upside road map begins with president trump's upbeat outlook for trade talks giving a boost to wall street stocks set to open at new records once again >> the stock market just hit another all time in history high, meaning 401(k)s and jobs everybody's getting rich and i'm working my -- off. >> shares of deere sliding, ahead of the open. issuing a profit warning for fiscal 2020 as trade tensions persist. >> the toys "r" us come back, after shuttering all the stores, the new companies first toy store set to open in new jersey this morning as stocks look to set some new records on optimism about trade, economic data today is also in the mix. 3q revised up. business investment up 1.2 proxy for investment, that was not a good number last month making up for it now. >> in tune

everybody who is anybody does come out and i think that the star of this quarter as we heard from mike santolitech. so we have to hope that momentum continues. the most important tech story is the tech story that david owns what it does say, there is a need for the companies in the no growth mode to get together to have any earnings per share growth. >> we have seen actually a bunch of macro desks this morning and over the weekend jpmorgan asset management, morgan stanley more notable, saying we're going to raise our base case 10% for year end 2020. we don't think that changes the trajectory of earnings growth and we think the fed is on hold as they said over the weekend, we are on our own when it comes to interest rate cuts. but i wonder if you think this is -- can we call this capitulation at all? >> yes, that's exactly what it is people recognize at these big firms that there isn't anything that is going to derail unless we have powell remember powell from october to december, but it seems like everybody just said, listen, don't do anything important. let things ride. the research this morn

i'm david faber with morgan brennan and mike santoli, live from post nine here at the new york stockhange. let's give you a look at futures as we get ready to open a shortened training session today, this day after thanksgiving we're looking for a slightly lower open on all the major averages european markets open for some time let's take a look and see what the tone has been like over there as you can see the ftse all ahead for the session so far. ten year note yield, crude oil, you ask, and we always like to answer as well, look at our ten year note yield, 1.78. let's get to our road map this morning, it starts with what you expect, the shopping surge, facing a condensed holiday season, retailers raking in a record 4.4 billion online on thanksgiving day this is ahead of, of course, what is traditionally the busiest shopping day of the year, today. >> the final trading day of november and stocks pointing to a lower open on this holiday shortened session. >> buffett thwarted, the oracle of omaha's latest attempt to put his cash hoard to work, outed by by apollo global. >> we begin wi

. >> cnbc senior market commentator mike santoli breaking down crucial moments of the trading day and lindsey bell and on this black friday retail analyst lizhen dun from pro form aifr yoing us as well great to have everybody here seeing a session -- well we were at session lows, retreating down now 94 points. best buy et betting big on faster delivery this holiday season and franke holland has the story for us. >> hey, contessa best buy trying to use convenience as a weapon 199the battle for holiday shoppers. the company increasing logistics spending by more than 60%. increasing capacity to offer free next day shipping on orders above $35 to 99% of the customers. up from 80% in jun they built three metro e-skmerps centering allowing best buy for the first time this holiday season to offer 50 million people in new york, l.a. and chicago free next day on orders placed as late as 8:00 p.m the latest deadline of all major retailers. back to you. >> franke, i actually ordered a new laptop on the best buy website wednesday night. they told me december 5th delivery if you could ask them to

finishing yesterday at a record close its ninth of theyear joining us now, gihan above little our own mike santoliwith us as well. gihan, bracket capital your goal was to take international money and connect that with some technology stalwarts out in silicon valley and upstarts. >> that's it we focus on growth and late stage private companies. the likes of uber, wework, sp e spacex that's where we focus our investor's capital. >> in the last three months what do you make of what's happening and how does it affect whether your businesses -- some things are even more attractive. >> we have a long volatility strategy we have a lot of tactical allocation we are looking to invest on the second market buying early from employees. when volatility increases and uncertainty increases, we've seen that, it produces a lot of interesting entry points. >> there must have been a lot of interesting things you've seen in the wake of wework. >> we weren't an investor. >> all of a sudden, employees are like, hold on a second >> that's made that conversation a lot more interesting they thought they were investing in

mike santoli is joining us he has a key question about where they go from here. >> this two year chartclear but maybe tentative breakout we got a little overbought it is about 2.5% above the july high we have not had one of these new highs get at least 3% above a prior high since january of 2018 so that is about 3115 on the s&p. take a look at the russell 2000, this shows more back to the upper end of a long term range that has been stuffed. the good news is it doesn't have any magical predictive powers for the overall economy, but it does show you that it is struggling to break out of this range. we've been well blelow the 2018 highs. and the treasury yield, not too far from expectations. this shows you that it is still trapped in the lower zone. so maybe that shows you we need to settle out here for a little while. obviously still well off the low, but not yet back to that pre-july high above 2% on the yield. >> mike will stay with us. our next guest says equities are still in the early catchup phase. joining us now, chris heizy at merrill. bull market power is on, that's the bottom

joining us now to talk more about investing strategy with markets in record territory, david bianco, mike santoli title, chief market commentator. >> senior markets -- >> chief markets senior markets i gave you a promotion. >> i think he should have that. >> i think he should be chief. >> i do, too. >> since there's so many. >> chief is good. >> the top, right? editor in chief. >> too much accountability attached to it. >> you want to be senior >> add global. global chief commentator david, i'll start off with you what we've seen is such a risk off movement in the markets. i mean, gold and silver on pace for the biggest weekly decline for the year we've got the ten year yield touching 197 yesterday we have yields around the world going higher is that a clear signal to you that where we are in this rally is pretty stable >> it's a clear sign that people feel a lot better about the global economy, the u.s. economy. i myself am feeling better, too. i was starting to get quite alarmed during the summer and in the summer, late summer i was positioning myself for a correction to occur in the autumn i w

trillion in assets joining us to talk more about the deal is devin ryan he's financial analyst and mike santoli is jason trennert devin, let's talk about what this means for the industry you cover. what happens i know the deal is out today what can you figure might happen >> sure. clearlyyou're putting together two of the best brands in the industry so if schwab kind of the leader in the industry and on the options side, you are putting together a great advice based platform and active trader platform it looks like a good deal. 15 to 20% accertion. i think on the revenue side, there are not a lot of details in the press release i suspect there's going to be more there probably a little bit under promising, over deliver, is what you're going to see here good deal from the first glance. >> watching t.d. ameritrade, up initially on the deal getting done watching them this morning, they were up 4%, down a few percent, back up 2% what do you think that is? >> i think people are trying to make sense of essentially what the ecretion is. that's part of it. it's going to take a while to get there. i thi

. >> under an hour actually now to the opening bell you know what that means mike santoli standing in moving things around. >> working up to that. >> in "groundhog day" bill murray goes like that. >> i'm practicing. remember how the weather mapp used to write backwards. >> it's reverse. what we do have is a look at some of the biggest tech stocks. another round of pressure on google in terms of news anyway attorneys general looking the at the business this is google alphabet against the nasdaq 100, microsoft and facebook over the last year. it's hard to look at this chart and say you have a discernible effect of concern about threats to the business model. foogle here has basically tracked the nasdaq 100 not as well as facebook under some regulatory threat alphabet, if you want to subsequent say some of the premium has been taken out of the company. forward pe for alphabet has trended from its highs in 2018 this is against the s&p 500, so it peaked what about 1.7 times the pe multiple of the market. now it's around 1.5. again very hard to see the market done think it has to price anyt

reaction to mcdonald's firing its ceo, eric dezenhall of dezenhall resources and cnbc commentator mike santolit does tarnish the company to some extent let's talk about what it means for shareholders and in general. i go back a long way with jeff sonnenfeld talking about all the ceo turbulence at mcdonald's and there were a couple of unexpected deaths, if you remember. >> right. >> people that didn't seem really to fit into the long-term strategy of the company, that didn't succeed as ceos the company does keep plugging away -- >> that's right. >> -- in terms of results. is that what we should assume? it's not about one person. he was a pretty good executive, this guy he turned it around. >> we have to talk about what kind of crisis this is this is a human frail at this scandal not a corporate crisis it's one of the easier type of scandals to get out of which is you bounce the person who caused the problem. i mean, one of the questions i get a lot is why don't these people fight and the answer is in this climate, you can fight but if you fight, there is only one story and that's the scandal an

joining us is christian mumani and mike santoli, cnbc's senior markets commentator.ks of a christmas rally if it were to happen, and i'm not saying it will, but the default every morning seems to be green. >> so far, yeah. >> and we could -- >> last week was interesting because it was like this barely perfect septemberible shakeout and i think a lot of people said, maybe we finally get it down 2%. just a little bit of a pull back to buy yesterday had the feel of people feeling like i'm not sure if i can wait for that. the market doesn't feel like it wants to give. there was a little bit of a chase and empty the tank and get s&p to 25% year to date at the close. russell 2,000 breaks out it was hard to figure out. the only question is are people just kind of, you know, emptying the tank early before we get into, you know, december, january when you have to pick up the numbers to make sense. >> we might have been flat last year but if the headline around december 31st is at 25 or 30% growth and the s&p -- i mean, you can't really discount that if we were flat in 2018. t