tv Worldwide Exchange CNBC December 27, 2019 5:00am-6:00am EST
it is 5:00 at cnbc global headquarters 9,000 and beyond what the nasdaq has done for the first time ever and how 10,000 could be just a few months away. not to be outdone, the s&p is on track for its own banner year more changes at the top for boeing as another key executive exits. another win for tesla as that stock soars to new highs.
taking that road, the top most aggressive cities when it comes to driving ranked. boy is rahel solomon going to be upset about this one "worldwide exchange" starts right now. good morning and welcome stock futures are pointing to another record open for the major averages as the dow looks to lock in the 22nd record close of the year. the s&p on its 32nd record close. since 2013, when it gained around almost 30%. if it can ink out another 0.4%, it will have been the best year since 1997 so a big move.
>> major investor attention on the nasdaq after it closed above the 9,000 mark for the first time ever. just 486 days after closing above the 8,000 mark the faang name playing a role in that move. you can see hear the faang stocks facebook actually up about 19% amazon marginally lower. netflix down and apple a major driver for that faang outperformance more on that move to 9,000 in a moment let's go worldwide we are seeing markets opening since christmas. the shanghai about flat. nikkei down about 0.4 of one
percent as well. in europe, green across the map. the dax in germany up 0.1 of one percent as is the cac in france. a little positivity coming off the break. oil rising to a three-month high on optimism right now. you can see wti crude about a third of a percent to the upside to the u.s. base crude prices. we continue to watch what is happening with gold prices we are off the high of the year. 15, 16 spot 40 up about 0.1% looking at other top stories today. reporting the u.s. and china are working to finalize the text of the phase one agreement which will run up about 85 pages in
english running from preteks to purchases. the length of the document is reportedly down from 150 pages from when the talks collapsed back in may. the big issue remains how to word china's ag buy commitments and if the country can reach the figure touted by the trump administration japan considering selling a major plant to apple in a bid to boost its balance sheet. sources tell nikkei last week that sharp was also on the talks. telling the news outlet that parties hope to reach a deal by march next year. japan display up about 7%. sharp up about half a percent and apple about a quarter a percent up in the extended
hours. shares of amazon and out with numbers from the holiday season describing it as record breaking and that tens of millions of amazon devices were sold some of the best selling products were echo dot, fire tv stick and the echo show devices. up about 5% in the last week alone. getting back to the milestone. the nasdaq closing about the 9,000 mark for the first time ever check out the long road the index has traveled over the last 20 years and especially since the financial crisis it took the nasdaq 335 trading days to go
from 8,000 to 9,000. look at the semiconductors and chip moves up 82% universal display up 71% as well software performing great. the biggest gains in that sector coupa and trade desk up around 90%. software, semis, key joining me now, chairman at p palisade asset management. last year, you were talking about the outlook in 2019. it seemed like you got those things pretty right. what will you say now? >> when you contrast where we are today, it is a totally different picture. think about it, interest rates were much higher the fed was in tightening mode and not easying mode and you had
a fed chairman really struggling to find his voice. the trade deal so far had not been successful between china and the united states. the trade were decelerating at a rapid rate it is so different now the fed completely reversed course and injected a lot of liquidity and continued to keep interest rates low and is expanding their balance sheet. conditions are starting to improve in the eurozone. we are seeing that in areas like the dollar which is starting to weaken you sited strengthening gold and energy prices, that is the inverse of the weaker dollar >> what has you most excited it was in hind sight when the
market sold off as it did in 2018 the base was in place. moves like that are not difficult to achieve think about the lows of the financial crisis this is not a market that is exactly cheap. it has gone up markedly. is it still good to be excited about this marketplace >> very exciting for a stock picker again, you look at the indices on average we love to look for value. we can find value in various sectors. >> despite the fact that you are seeing forward valuations as high as we have seen maybe going back towards dot com, there is still places you can find value like the upside of the past year.
>> because the cheaper stocks versus expensive stocks is quite high technology, you touched on some software companies there is valuation problems with some of those. by contrast when you look at financials and industrials, it is more attractive the federal reserve has changed course you'll see the curve stephen so our exporters will do better. >> you opened the door with the yield curve. i wasn't going to bring it up but since you did it, i want to move in on that. does that mean, financials have been a better performer this year you'd love to see tech and financials move higher financials have been talked about as a value trade for so long, is this the year of the
banks? 2020 >> 2019 has been the year of the banks and i think it will continue to 2020 when you think about it, having the financials in a strong position, that bodes really well for the overall market i think we have the right economic conditions for banks. a stephening yield curve a benign environment the federal reserve is going to be on the side of lagging versus leading. i don't think it is coming at least until past midyear when they'll think about changing course again and perhaps tightening conditions. that will only be based upon very strong economic conditions. >> good call in 2019 thank you very much. when we come back on the show, much more on the nasdaq run to
kong it is now 6:13 p.m. local time the sun already down there boeing is making more changes at the top announcing the departure of the key executive rahel solomon joins us this is their top council. >> continuing with the shake-up. mike luttig was a close advisor to ceo who was fired on monday he served as boeings top lawyer from 2006 until last may overseeing all of the matters related to the two deadly crashes. he is now the fourth departure from the company's executive
counsel following muilenburg and the senior vp of communications. the justice department is conducting a criminal investigation into the design of the max. luttig put together a team of outside lawyers to represent executives and employees his duties will fall to bret garage who will replace him as general council. >> cleaning house may be one of the ways someone will describe this it is just a changing of the guard. you had denis muilenburg who had been at the helm now he's gone, a lot goes with him. >> i think that is more cleaning the house than this. he was with the company for 14 years as general counsel and then he moved into this
position it seems like he's retiring. >> boeing will have a tough year in 2020 for sure given these things and reworking the executive ranks. thank you. disney getting yet another gift as the latest star wars film sets a new record. energy looking to bounce back after a dismall 2019 brian sullivan looks ahead when we return. >> announcer: today's big number 123,145% that is how amazon is up since its ipo in 1997. one of the stocks that help nasdaq hit 9,000 my joints for the long term. osteo bi-flex - now in triple strength plus magnesium.
welcome back take a look at that. we are seeing what could be another slate of records the s&p would open by about nine points if the future gains hold. nasdaq up about 80 points. the s&p 500 energy sector while up 7% year to date is the worst performing sector in 2019. our own brian sullivan looks at what to watch in oil, gas and energy in the year 2020.
stag nant oil prices, heavy corporate debt loads and conscious investors selling off stocks slammed the industry in 2019 all this as the u.s. reached a major milestone becoming a net exporter for the full month for the first time in 70 years all this as the race for another kind of development, so-called rare earth minerals heats up here is what to watch for in 2020 first, a wave in bankruptcy. companies may have to endure a number of reorganizations. companies dealing with a huge amount of debt unless oil jumps in price, they will look to reorganize obligations. after years of courtroom battles between the hedge fund and
government of venezuela, the final battle will come in 2020 it is likely the courts will rule against venezuela allowing s citgo to be seized and auctioned off. if you want to build an environmentally sensitive project like electric car or wind turbine, you need these products china controls most of the world supplies but there are many projects to help the u.s. catch up, this will be the ground to watch for in 2020. >> thank you for that playbook on oil and gas in the year 2020. tesla lands the win to make in roads in china and the tax incentive beijing imposed on it. plus, it wouldn't be the holidays without travel headaches.
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new york good morning and happy friday to you. >> good morning. happy friday to you. at least 12 people have been killed in a plane crash in kazakhstan that happened 19 seconds after takeoff. officials don't know why the plane lost altitude. it happened with nearly 100 people on board including eight children who were rushed to the hospital two survivors said the plane was shaking before it fell at an angel. >> commutes after the holiday are turning into a nightmare a massive winter storm is moving across the country snarling travel plans we've seen major con getton on the roads. a former sheriff is holding
amazon driver taking a delivery confirmation photo before removing the package amazon did refund her money. a spokesperson said they plan to reach out to the sheriff's office to apologize. reigning world and olympic champion simon biles has been named the female athlete of the year the first to do it in a non-olympic year she first did this in 2014 when she won four gold medals in rio. >> certainly the pride an joy of u.s. gymnastics overall. thank you. still ahead, the santa claus rally looking to set its sights on the 10,000 mark where stocks may find themselves as we head towards 2020.
dallas maverick's luka dancic signs a deal there welcome back to the show i'm dominic chu in for brian sullivan today whoever said money never sleeps wasn't kidding the major averages on track for another record setting day the dow will open by nearly 100 points if these futures hold the s&p 500 up about nine points and the nasdaq up around 29 to 30 points. remember for the s&p 500 there, gold star there, gold star here. record level and the nasdaq for sure a big focus as it hits that 9,000 mark the dow is looking to hit its
22nd record close of the year after a 100-point gain yesterday. the nasdaq is on a 10-day winning streak as well all of these benchmarks moving towards record levels and winning streaks. looking at the overall picture 9,000, the first time for the nasdaq composite the longest win streak since 2009 take a look where it took us to get to today from the top of the bubble burst breaking above just 8,000. 486 days ago take a look at the overall picture. looking at where we are right now. the moves have been a roller coaster ride for the nasdaq. still record high levels here. s&p 500 not to be outdone on the record high level as well. up 22% year to date on the best
yearly performance of 2013 when it gained 29.6%. if you remember why i'm mentioning the 0.6%. it will be the best year since 1997 when the index gained over 31%. that is why we are measuring things in tenths for more on this and on technology year to date, let's bring in joel, the head of tech trading. let's start off with the big news for tech, media and telecom. that is the nasdaq getting to the 9,000 mark as a trader, does it make you feel good or a little more cautious seeing that big mark? >> good morning. you know what, the chart doesn't lie. the world is in a lot different
place than we were 365 days ago. that is fuelled by the fed in early january. right now, you still want to be bullish on the stories that have been working especially with technology names like facebook has kind of done a lot of heavy lifting within large tech. growth complex especially. look at apple up 83% here we are in 2020. the iphone super cycle is around the corner and you've got firing on all sill anders even alibaba and tencent the most impressive move at tech has been the broadness of leadership across the board. there has been pockets of weakness if you look at the companies that have been leading the sector almost daily, it is phenomenal until we see a shift in technology and the waters get more choppy.
business is gaining traction we have a partial trade deal in place. it is game on for tech prices are reflecting that for the moment >> you are a trader, you manage client flow, order flow, you execute transactions and manage risk let's talk about all of those when it comes to amazon. up again after a 4% move yesterday. good news around that holiday shopping season. up 24% year to date. believe it or not, that trails the market what does it mean for amazon in the coming year? >> a good county you made right there. coming into 2019, we knew it would be a heavy investment cycle for bezos and company. the stock it up 24% year to date with the gain we witnessed on thursday it is still massively lagging
the nasdaq right now amazon is a little bit of a wait and see story. we know they are huge in the cloud industry i think right now, there is more interesting stories in large cap tech i look at the leadership gainche at google. looking for new changes and whether it is a boost, maybe bringing back some of their spending amazon is in a weird spot. there will be slight signs of deceleration spending is extremely elevated it is a little bit of a wait and see at the moment. it will probably underperform at the near term. when we do, then you pile back in >> speaking of wait and see, 2020 will be an interesting year
for a lot of investors looking for those to trend one of those big places is in wireless specifical specifically 5g or next again wireless is there a place we should be looking in that eco system >> on the retail side, you want to be careful buying names that just throw out 5g. a lot of companies do that with cloud. i think the easy money has been made with regard to 5g on the component side of things on the testing side, you have key sight, tera dine these are names you want to have on your wish list to pick up i mean 10% or so, not waiting
for a crash to happen. the 5g cycle will have a longer tale than the 4g that's where the bearsgot it wrong in q 4 and it actually smoked in the last four or five weeks. the end of february, we have the mobil congress in barcelona. it will be a lovefest. if we get some reaction out of that event, for the next two months, you want to trade them from the long side versus being too cute and not going against the momentum >> can you take us through from a trader's perspective what it is going to mean from an ipo perspective in 2020. what do you want to see? >> you want to see companies come to the market the pipeline will be hyped
pretty much everyone in the country knows air bnb, lyft and wework imploded in august. you want to see companies when they do come to the market, you want to see them deliver we've had companies this year come out and kind of miss numbers. guide well below consensus it has been a train wreck. there are some quality companies. whether snowflake, domino data, mason, gitlab. some high-quality companies. they have a lot of heavy tech backers. whether go 2 or others you will see stock trade well the first two or three days and deliver on earnings. >> big deal for tech, media and telecom in 2020. thank you. let's get a look at other top stories.
comcast is reportedly in advanced talk to buy the video streaming company xumo they say the negotiations could break down at some point xumo offers a free ad supported platform the deal comes as comcast, the parent company of this channel and others prepares to launch peacock that will happen later on in april. >> tesla enters agreements for the shanghai car factory the automaker has agreed to two loans totaling about $1.6 billion and tesla has won a tax exemption for vehicles built in china. the vehicle is included in the
list of autos able to avoid the 10% purchase tax the new star wars movie continues to find success in the box office pulling in $32 million on christmas day the second highest in history. only star wars the force awakens had a better showing back in 2015 coming up, the list nobody wants to be on details on which cities take top honors when it comes to having the most aggressive drivers. "worldwide exchange" rolls on after this ugh, another electronic signature. you have to print, walk, sign, scan, recycle, walk, email yourself... really? more walking, try again, waiting, recycle, walk, email yourself, then get back to your day. or not. this isn't working.
to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. welcome back let's find out what else you'll be talking about today we turn to rahel solomon the gift giving season is over
except some people are taking stock of what they got >> some people had a really nice christmas. >> you know what is better than getting gifts for christmas, getting gifts from a billionaire. on a platform where users get matched with strangers to exchange gifts this user was matched with bill gates. she got an 81-pound package of gifts. including a hammock, original manuscript of "the great g gatspy." >> ticket prices for the top 100
tours has nearly doubled a reason for the spike is the changing music industry. reporting that musicians have had to rely on tours for the bulk of their income the justice department recently invest gating live nation over potential antitrust violations >> this is why you don't gloat about your home town gas buddy has released a list of most aggressive drivers in america. surprisingly new york didn't crack the top 10 taking into account factors like frequency of speeding and hard braking. of the largest 30 large cities the city with the most aggressive drivers is los angeles. drivers spend upward of 90 hours
a year stuck in traffic. philadelphia, my home town, number two, followed by sacramento, atlanta and san francisco. that is three california cities in the top five, six was san diego. friday is the most aggressive driving day of the week. >> we are all trying to get home i'm not going to gloat at all. because as a native of california and the fact that there are three of the top six from california. new york doesn't top that list because nobody drives. in california, everybody has to drive. it is the only way you can get around places. >> let this be a less on to everyone or me not to gloat about your home town >> i give rahel a lot of grief about the fact that she'll never drive an suv i hope you'll never drive an suv
aggressively around. >> i will never drive aggressively >> safe driving. in sports, nike is adding another superstar. luka doncic has signed a deal with the jordan brand. a five-year agreement and seven figures in size. le join players like jason tatum and zion williamson. he came dallas on the heels of a successful euro league stint and ended in a championship. he was awarded nba rookie of the year the jordan brand taking notice and paige up to sign doncic. still ahead, the latest leadership shake up at boeing.
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the best year since 1997 what a run for the s&p 500 of course it comes after a rough fourth quarter in 2018 still a banner year, a record year for the major indices for the united states. a recap of the headlines boeing has announced a senior advisor on the board of the max crisis luddig who has served as general council since joining back in 2006 he helped lead the legal defense after those two crashes. mudrik capital closing out ton the top of returns looking at an annual gain of more than 20% in part because of an investment of e gret maker
njoy that market has soared despite the backlash the faa is looking to identify and track all drones in the united states. the agency would track virtually all commercial and hobby drones except the smallest models the goal would be to prevent midair collisions and to feed data into air traffic systems. if you are a drone user or owner, take note 2019, a banner year for the u.s. markets stocks set to continue while markets have found success over the last decade. it has been a different story for international stocks seema has more on whether this will be a banner year for the overseas market versus the u.s >> reporter: global stocks
rebound, europe goes east and china launches digital currency. our predictions for global markets in 2020. u.s. stocks outperform most international markets from 2019. strategists are saying a pickup may push more into a handful of emerging markets among measures to boost respective economies. tenses will rise over huawei despite warnings that huawei uses backdoors to spy on customers. leaning on the company for the build out of 5g broadband. creating strained relations between the u.s. and the eu. third, china goesdigital officials have hinted that a central bank has launched a digital version of the yuan. there on their way to becoming a cashless society
a digital currency changes the way consumers purchase goods giving the way for the u.s. to green light facebook's libra >> a question if the launch of the digital yuan will be the launch to another companies. it is already using 5g broadband. any pick upcould threaten overtime this digital launch and how china navigates this will be watched closely. >> it is fair to say china will be key no matter what part of the market or asset you want to talk about let's talk about whether the 2020 election in the united states could impact the markets or economies will china outperform given that tension sure to persist.
>> there is certainly bipartisan support in washington to be tough on china the difference is the tool being used that is tariffs. this administration believes tariffs are an effective tool to get china to the negotiating table and carve out a better trade deal many democrats including senator elizabeth warren have criticized the use of tariffs that will be the difference as to how the 2020 election outcome will impact the ongoing trade negotiations >> seema, thank you very much. to for more on the markets straight ahead, i'm joined by managing director and chief asset strategist john, what do you say? it is a banner year for stocks in 2019. i don't want to be so bullish because i know things can go wrong. what is so positive about 2019
and can that carry into 2020 is. >> the way we look at it, 2019 is a do over year. we have that fourth quarter the market declined about 19% from september 20 of last year to december 24. what we have seen is a rebound, a do over, a recognition that the further quarter of 2018 is way overdone we think it is a great platform for the markets this year. particularly if we continue to see trade talks continue with u.s. and china >> the macrorespective of the u.s./china trade and a do over from the fed as well specifically fed chair jay powell a lot difference from q 42019 and q 4 2018 what needs to be done in 2020 to keep going >> we need to see further
removal of tariffs you need to see trade reinvigorated. we think that it is really in progress the reason is that it is too impractical to continue doing what it has done so far for both china and the u.s. for china, the costly thing about the tariff war has been companies diversifying away from china in their global supply chains if they are doing business in china, of course, it's still very china centric, doing business outside, china has been identified as a problematic partner. they want to get this trade war over back to reinvigorate. >> so those are the big themes you are one of the folks we poll at cnbc for the strategist survey take us through your thesis, your expectation for 2020 and what is driving that
>> okay. first thing is the reassertion of global growth we expect will happen as you get a removal or lessening of the trade war with that, you should see the dollar decline we've already seen the dollar begin to come off its high perch this year. with that, we think foreign currencies will strengthen some what the value of investor holdings will increase. based on valuations, we will have the opportunity to diversify further on a global basis. should be good for the global markets. we are going to see more employers begin to train particularly in u.s. corporations but globally, really disappeared today, we expect they are going to come back in fashion. with that, we think that will help the consumer too? >> how much can the s&p go
higher >> our target is 3,500 we think it is conservative and likely to be exceeded next year if these things really happen. we do think first quarter, we can see a speed bump this year, globally, without a doubt, it will be an opportunity first quarter there will be an opportunity for impatient traders to find a catalyst to justify selling without feeling fomo or fear of missing out. >> valuations are the highest we have seen in years, do valuations concern you >> certainly will concern us if we don't get the improvement in global trade we would see an interruption to the expansion we've seen in the u.s. driven by the consumer. that said, we think we are going to get a break here. we'll likely see revenue growth
plus good earnings growth. even if it is modest, that is good enough. no boom, no bubble, no bust will take it. >> no boom, no bust, no bubble will take it john, thank you for joining us that does it for "worldwide exchange" today. "squawk box" starts right now. good morning, nasdaq 9,000 we'll talk about the pace of the market ral ly tesla shares getting a boost on two positive headlines. we'll tell you why buying a model three in china is about to get cheaper. >> an epic christmas for the new star wars movie. hauling in millions globally in just eight days. it is friday, december 27, 2019.
"squawk box" begins right now. >> good morning, everybody welcome to "squawk box." we are live from times square. i'm becky quick. joe is out today our guest host is ed lee >> hello, hello. how did everybody do on christmas day? >> lots of presents. >> best presents can you disclose >> i tried to do this yesterday and they wouldn't play