morgan brennan took our cameras inside the mile long ft. worth facility where the jets are built. >> this is most expensive weapons program in history and it is at a critical point. >> the number of air planes in the field is growing exponent l exponentially. up to 200 now and many, many more. at the same time we're wrapping a bow around development. that continues to allow them to expand. >> it is falling and falling faster than before. it just slimmed below $95 million in the most recent pentagon contract. the you have per deal. a 50% decline. lockheed currently has about 140 planes in production right now around the world. but over the next several years, that will ramp up to about 180 at any given time. lockheed martin is turning out f-35s over the next month. to do that they're using automation. >> we want an $80 million jet wefl to take labor out of aircraft build process and make that process more fernt without any reduction in quality. we do that from very technological advances like this robot which can do the work faster. >> machi

. >> let's check in with morgan brennan live at cnbc world headquarters this morning. good morning, morgan. >> reporter: good morning. the markets ending mostly higher yesterday following a federal reserve decision to leave interest rates unchanged. that move was widely expected. it hiked rates two to three times today. sentiment has improved as of late. look for data on unemployment and work orrerproductivity. the dow rising 26 points yesterday to 19 now, 890. nasdaq up 27 to 5,642. now, watch shares of facebook today as well. the social media giants quarterly earnings easily beating wall street's forecast thanks to continued strength in ads. 2 million monthly users. 1.68 million check in at least once a month. ibm super computer is getting into the tax business. h&r block is teaming up on using artificial intelligence. it has been used in health care, retail. >> watson. all knowing. morgan brennan live from cnbc headquarters. thank you so much for that report. >>> women coming in the south bay to talk jobs, politics and the future. the watermark women's conference too

i'm wilfred frost along with morgan brennan in for sara today.ood morning. >> good to be with you. >> great to have you here. it's new music friday. kicking off a brand-new song from coldplay and the chainsmokers called "something just like this." i am a fan. i'll be downloading it. >> you guys always have the best music. let's get to the markets today. now the dow has notched ten records in a row. this is the longest streak of record closes since the first 13 trading days of 1987. the dow is up about 5% over the past month alone. taking a look at futures this morning, in light of that fact, u.s. equity futures are red across the board. the dow indicated to open 8 points load. the s&p indicated to open 2 points lower, and the nasdaq indicated to end 11 points lower. yesterday, the nasdaq ended in the green just barely, and we have had a shift into safe haven stocks, utilities, telecoms. >> utilities the best performing yesterday. that headline, ten straight record closes in a row masks the true risk-off nature of yesterday's move bit sector perfo

morgan brennan is here now with more on that story. morgan? >> that's right.54 billion. it's a 10% increase from last year. the reason that ita air space and etf is up 1% today it's gained 19% since the election, outperforming the broader s&p's 10% gain. who likely benefits from this? the navy, submarine orders, also air force, positioning lockheed martin, boeing for more jet orders and expect more readiness spending for army and marine corps. that could potentially mean more armored vehicles from ge, so despite the double-digit gains in defense stock since november, many analysts do remain bullish. defense spending has been on the cusp of a multi-year cyclical upturn. and not just here but globally. in addition to the 2018 proposal this week the pentagon will request more money for the current fiscal year. of course, congress will have to sign off on all of this. with nondefense spending expected to drop, that could be a challenge, especially since we've had budget caps that link the two together and have been in place since 2011. it will be an interesting fa

and as morgan brennan reports, the focus is squarely on washington. the trump reflation trade is alive and well. that is investors are betting donald trump's policy there's lift inflation and growth. it was after a meeting between the president and the japanese president shinzo abe. that gave industrial stocks a boost lifting names to new highs. lately, the markets have rid risen on just the near mention of tax reform or infrastructure spending. when issues like immigration and trade wars are on the table, they tend on drift slightly lower, suggesting the path of least resist daniel for stocks is higher. at least for right now. today, trump seemed to alleviate concerns of any tensions with either china or japan. the second and third largest economies, saying he had great almost for both countries and very warm conversations with both nations' leaders. another issue, earnings. next week will bring a lot more of them and that along with washington could determine direction of stocks. for "nightly business report." at the new york stock exchange. >> and

i'm morgan brennan. >> higher premiums help etna top premiums. are lower medical costs also help overall of profit was hurt by higher restructuring cost and after a federal judge blocked the proposed $30 billion takeover of humana take over. it isn't giving up just yet. >> i think one of the things we have to consider, we have until february 15th to make the decision, that's when the agreement ends. we believe this combination will provide a better product for seniors. a better product for the medicaid population. more affordable and simpler. >> etna shares were up more than 1% to 118.61. ely lilly said strong demand for diabetes medications. shares were up 3% to 77 the.03. sprint's subscriber growth topped expectations and beat its rivals at&t and verizon. it was the most in four years. on the earnings front, they posted a narrower net loss but it was still wider than expected. it sent shares up 12% to $9.23. >> an increase in customer spending during holidays listed results. the company did miss revenue targets. mastercard also warned the dolla

for the rest of the news before the bell, let's check in with morgan brennan live at cnbc world headquarters. good morning morgan. >> reporter: good morning. the markets ending mostly higher yesterday following a federal reserve decision to leave interest rates unchanged. that move was widely expected. it hiked rates two to three times today. sentiment has improved as of late. look for data on unemployment and worker productivity. the dow rising 26 points yesterday to 19 now, 890. nasdaq up 27 to 5,642. back over to you. >> morgan, thanks. you are not going to be surprised to hear the patriots are going to win. what is surprising is how close that game will be. just three points. brady and edelman will score the final touchdown. ea is almost always right. >> it's that close on the scores? >> on the ravens/49ers, they got the score exactly right. >> and the interception right that cost the 49ers the game. >> there was actually a 49ers super bowl. >> i know. >> they have gone it right nine times. >> pretty good odds. >> it is. better than vegas. >> thank you very much. we have plenty of red fo

morgan brennan is there in ft. worth, texas. i wish you'd also be able to go up in one too. works, morgan? >> reporter: i'm not going up in one. i did get to see one up close and personal yesterday. we will see some fly today. i did do a flight simulator. i will tell you, even though i was doing the most basic level of the simulator, i did get a little nauseous. maybe it's for the best i'm not going up in one. i hear something like 98% of people who go up in a fighter craft for the first time throw up. but i want you to take a look behind me, joe. these are the f-35 joint strike fighter jets. they are on the lockheed martin assembly line. they're all in various stages of production, all three variants of this self-aircraft are put together here on this same exact line. the f-35 is the most expensive weapons program in history, and it is at a major inflection point right now. i say that not just because of president trump's recent criticism and subsequent unprecedented involvement in contract negotiations. lockheed's turning out four f-35s per month right now, but that's goin

morgan brennan, aforementioned one. new report suggests there might be some very high flying reasons for u.p.s. and fedex to be nervous here. what's going on? >> yes, yes. so this is -- we're taking to the skies here. add air cargo hub to the pieces that amazon is putting together as it builds out its own shipping network. this is a $1.5 billion investment at the northern kentucky airport. this is expected to employ over 2,000 workers. no timeline given by amazon, but this will be home base for the prime air fleet of 40 cargo planes leased from atlass air as well as air transport services group of which 16 are currently in service right now. this, as amazon looks to lessen its reliance on u.p.s. and fedex for its prime two-day ship ipin operation. truck trailers, transpacific ocean containers, which it's recently gotten into. u.p.s. and fedex have said that they're not worried about the past but this is picking up steam here. moving about 250,000 packages while u.p.s. and fede combined shipped 340,000 via air and deferr

i'm morgan brennan. >>> check it out, there's a new alert this morning about identity fraud. a leading cyber security group says i.d. theft has jumped a whop 16% in the last year. >> the credit card with chips helped cut down on fraud, crooks are finding new ways to steal. here's nbc's >> reporter: it happens every second of every day in america, someone's personal identity is stolen. last year six out of every 100 consumers were victimized while new chip credit cards have cut down on instore fraud, criminals have changed their strategy. >> they went from targeting the retailer in the brick and mortar stores to the retailers.com sites. >> thieves stole jerry's social security number then racked up thousands in fraudulent charges. >> using my information, they attempted to open almost 30 accounts, ten of which they were successful. account takeover froud was up 61%. they hijack the information and orders new credit cards and in 2016 a 40% jump in card not present transactions with criminals using stolen credit cards to make online purchases. >> because so many people use the s

morgan brennan looked inside the ft. worth facility to see what developments lockheed is making. >> reporter: the most expensive weapons program in history, it's at a major inflection point. >> the number of planes growing in the field is growing, over 200 now, and many more going as we increase production. at the same time we're wrapping up development. that continues to allow them to expand. >> reporter: the price of the f-35 fighter jet is falling, and falling faster than ever before. it just slipped below $95 million in the most recent pentagon contract. an f-35 like this one takes about four years to make from order to delivery. lockheed has about 140 planes around the world in production. >> lockheed is turning out four 4-35 a month, but in the next months that will increase to 14. to do that, they are using automation. >> we want an $80 million jet so we have to take the build out of the process and make that process more efficient without reduction in quality and eliminating waste. so we do that with technologica

thank you so much, morgan brennan. got a view on space, jim?as been -- >> why not land on the moon? >> i imagine it's logistically complicated, these rockets and things they're doing. jim grant is with me. president trump has been a long-time critic of the fed. with dan turullo's resignation there are three empty seats to be filled on that board. you have come with some suggestions. >> well, yeah. i mean, there are three empty places and we have two goldman sachs operatives the top of the trump administration. gary cohn and steve mnuchin and one might ask why. is this not a namm mow louse. this is meant to be a populist regime. two people believe ever so much in the excellence of one thing just as they are. one doesn't get to the top of goldman sachs -- >> i've heard gary cohn be critical of the economy. what does that mean that president trump will do with the vacancies? >> what i would like him to do is appoint my friends. these are people who question the status quo. lou laraman should be there as well. what i think is going to happen is he

our morgan brennan is inside the production plant of the f-35 and she has more for us. ey, david, that's right. this is actually as you can see behind me this is where these f-35 joint strike fighter jets are assembled for final delivery. but let's talk a little bit more about those contracts because after years of cost overruns and including as you mentioned most recently from president trump, the price of lockheed martin's self-fighter jet is falling and falling faster than before. the most recent contract priced the a-model at $94.6 million. that's more than 7% drop from the previous deal. but if you exclude the united tech pratt and whitney engine, which is negotiated separately with the pentagon, also fees lockheed's airframe price actually fell 8%. that's a full percentage point more than expectations. now, according to lockheed, president trump's intervention sped up contract negotiations which materialized in a matter of weeks. the previous deal just to put some perspective on this took 18 months to hash out. so what does this mean for lockheed's profits and thus

i'm morgan brennan. >>> 5:56. after rurchbing the numbers, nestle decided arlington was the sweetest spot for its newest headquarters. the candymaker is moving its headquarters from rosalycalifor rosalyn. nestle is investing about $40 million and creating 750 new high paying jobs. >>> all right. calm down, everyone. don't listen tll america's favorite breakfast food is not in jeopardy. >> right. >> there had been some reports out there that the country's bacon reserve hit a 50-year low. >> you know you went out and bought like 17 packs. >> the pork industry says not true. they can keep the world demand supplied. so don't worry, your breakfast bacon is here to stay. >> lunch bacon. >> plenty of business out there waiting. >> you see? you don't want to think about it that way. we just want to think of bacon as bacon. >>> still ahead at 6:00, finding success on social media. meet a mom who turned her love of facebook and blogs into a money-making business. >>> plus, new video giving us a better look at a man accused

morgan brennan has breaking news for us. i apologize. morgan? >> that's right.o take a look at shares of csx right now. we've got headlines coming out from dow jones that csx and hunter harrison, the long-time railroader who used to run canadian pacific, they have discussed a three-year ceo contract. harrison along with paul who used to be at pershing square has his own fund, mantel ridge, have been reportedly in conversations. i shouldn't say reportedly. they have been talking to csx in a move to potentially put harrison in place as the ceo of this company. the dow also saying that they have not reached a deal. excuse me. they have not reached a deal yet over requests for border seats by mandl ridge. today was a deadline for proxy statements to be added ahead of csx's may shareholder meeting. that deadline is extended to 24th. taking look at shares, up more than 30% since we first got these reports in january. back over to you. >> all right, morgan, thank you so much. a story morgan has been reporting and following a couple of weeks once this news broke. hunter

ahead of that interview, morgan brennan looking at how immelt has tried to reinvent the company and ignite stock. hey, morgan. >> hey, scott, that's right. general electric is in the midst of a massive transformation and the clock is ticking. so the company has shed almost $200 billion of assets since april 2015. that's when ceo jeff immelt announced off-loading of financial business shed that dreaded sifi designation. and returning to a pure play industrial giant, which by the way spurred a $2.5 billion bet by nelson peltz' try and fund. he laid out a three-year timeline. two years in. it's been mixed. divestitures have gotten prices ahead of plan. hard hit oil and gas is merging with baker hughes. we've seen better margins, growing services orders. analysts say so far free cash low lags peers. guidance was lowered last fall. to be fair the entire sector is i'm merging from recession and analysts say ge's well positionposition ed as the conditions improve. it should be a profit power house by 2018 and the big bet on tech while still small leads a huge trend for this sector. this is a gian

morgan brennan now with the stocks that are moving in that sector today. , morgan. >> that's right. $54 billion proposed an additional defense spend for 2018 if that is a 10% jump versus 2016. >> this budget will be a public safety and national security budget, very much based on those two with plenty of other things, but very strong. and it will include a historic increase in defense spending to rebuild the depleted military of the united states of america at a time we most need it. >> so in response the ita, aerospace rising 1% today on this news. keep in mind it's already up about 19% since that november election. that's versus the s&p 500's 13.5% gain. so, who likely benefits? for starters the navy, meaning more ship and submarine orders for general dynamics and huntington ingals. and air force, lockheed martin, northrop grumman and boeing. more readiness spend for army and marines. more armored vehicles from gd and more helicopters from boeing, lockheed, and textron. peter believes defense stocks can remain at a premium to the overall market for the ne

morgan brennan is live at the new york stock exchange. hi, morgan. >> hey, melissa. it would need to close 1.33 a share. it needs to move higher and go to $1.34. top performer in the dow account for nearly a third of the blue chip index gains in 2017. the dow, s&p, nasdaq at new highs again today. crude climbs on opec outputs. freeport-mcmoran hitting a new year high. martin mar yetta and vulcan also higher today. back to you. >> thank you very much. >> karen kimbro head of strategy at merrill lynch management and commonwealth financial network cio. good to have you both with us today. karen, i begin with you. new highs for stocks. they moved even higher after we witnessed the prime minister at the news conference. how much credit do we give to donald trump we have this announcement with trump and abe. foreign trade relationship is a little bit more solidified, going in a positive direction. >> isn't it the other way around? this is a trump rally, is it t not. >> it's not a trump rally. take trump completely out of the picture. earnings starting to grow. earnings acc

morgan brennan takes us inside a rare look at the facility where the f-35 is made. morgan? brian, that's right. not only is this a rare look but i would note the fifrs time there's ever been a live broadcast inside this f-35 facility. so, with more than 200 jets now in operation in the expensive development phase likely to end as soon as later this year, lockheed martin's f-35 lightning two is finally starting to get attention for something above and beyond the cost. and that's capability. so, first off, it can fly undetected by radar. this is stealth technology. it can't be added to a plane after the fact. it has to be incorporated into the design from the start. second, as lockheed's f-35 test pilot billy flynn told me the million lines of code mean this is like flying a super computer. >> we are only now unleashing the smallest part of the capability of this airplane. it will be a fabulous intelligence surveillance and reconnaissance platform, gather data of what the enemy threats are and pass that back to commanders hundreds of miles behind us on the ground or in the ai

last night on "mad money" jeff weighed in, and morgan brennan with the details. >> that's right. saying there's a lot of like about president trump's plans, infrastructure, regulatory reform, tax reform, but he largely slugged off risks saying we have to keep running our company. >> we're a net exporters. in other words, we run the president's play. we're at $20 billion u.s. exporter, export more than we import, and i think at the end of the day, look, we have 5% of the world's population 25% of the world's gdp. we create great jobs here when we sell products every place. i think the president knows that. >> adding, quote, you're winning, mr. president, but keep in mind as a net exporter, ge would like to see a border adjustment tax. also, after jim pressed on disappointing quarterly results, he doubled down on guidance. >> we're forecasting 3-5% organic growth, 100 points improvement, good bag log and momentum, a strong 2017. i like the way we're positioned in 2017. >> you're going through the bears. >> and there are bears. this stock's dramatically lagged the market since he to

joining us now, morgan brennan. >> certainly the question and one a lot of investors would like to knowhis is not the same company that your father invested in. a jeff immelt announced plans to exist the financial business, spurring a $2.5 billion bet. immelt laid out a three-year timeline. we're two years in. it's been mixed so far. $2 million in divestitures. subjecting ge to stricter regulation gone. hard-hit oil and gas division merging with baker hughes. margins growing, service orders growing. analysts say free cash flow lags. missed 10 of past 13 quarters. guidance was lowered past fall. emerging from an industrial recession and ge is well positioned as those conditions improve. the austin power business should be a profit powerhouse by 2018. and we've got that big bet on tech. 3d printing still small but leading a huge trend. 65% of the revenues inherited by immelt have been divested, and will likely mark his tenure which started before the 9/11 attack. ge trading at 29 a share. but down 27% since he took the helm in 2001 or up 5%, including dividends, versus the dow's 104% surg

. >> morgan brennan's on the floor for us as we got record highs across the board. carl. happy friday. we have record highs for the dow, s&p, nasdaq, albeit on relatively average volume at least here at the stock exchange. now, keep in mind it's been a very tight range this week. we've got volatility really just nonexistent. vix below 11 this morning. that said, reflation trade is what is back in focus. that's after those tax comments from president trump yesterday, which pushed the s&p down, nasdaq to record highs at the close. that's playing out again this morning. you can take a look. it's materials, energy, financials that are leading the charge. rate sensitive safe haven sectors, utilities, consumer staples, real estate, the reits, those are falling today. though traders do expect this to be somewhat short lived until we get some of more of these policy details. not a lot of data or earnings today, but we do have a flurry of political headlines in focus. trump's support of one-china policy, the blocked travel ban and of course the president's meeting with japan

brennan, michael malice. ♪ hannibal lector, piers morgan, what do all great villains, why do they all have british accents?re's a reason, people who speak the queen's english are seen as more educated but less trustworthy, sincere, and friendly. here are some of our favorite british villains. >> apparently louis had murdered transient and done things with their skins. >> harry potter, the boy who lived. come to die. >> one ring to bring them all. >> oh, come on. >> tom: you don't think he was a villain? >> he's not a villain. >> tom: he's the one who brought the bring to the hobbits in the first place. >> i like that they put him in there. it >> you are sipping hatorade out of a martini glass. >> sociopaths are always brilliant, and the most brilliant people sounding on earth are british. we wanted to party with our various religions and have a good time, we're going to stay here, you guys are frigid, we're going to go over there and have a big party. with some cannibals. >> tom: did that make sense to you? >> if i tell you in my accent, that to this is correct, does that mean you have to miss trust me and

brennan. >> thank you for joining us today. >> you bet, morgan. >> a lot of talk about a rail recovery particularlyvestment community. we've seen it in rail stock performance in recent months. is business improving? >> yeah. so we expect that 2017 will be a better year than 2016. we look at about 22 businesses on the railroad. in 2016 about 16 of them were actually negative. the rest were positive. we expect that trend to turn around modestly. the biggest issue we have had has been the change in the energy markets with thermal coal being down so much due to both the price of natural gas as well as the regulatory environment. so we are expecting a better year this year. >> you talked about coal. i know you mentioned in the hearing today that coal volumes are -- i think the business is half what it was during the peak for bnsf. energy, crude by rail. huge for bnsf. has the best in term for business and growth already happened given that president trump is approving pipelines now? >> it depends. there will be a niche play for the railroads. the most it got to for the industry is 2%. the volumes are do