Good wednesday morning welcome to squawk alley. Im Carl Quintanilla with sara eisen and john fort. Some record highs today. The nasdaq hit one today in the session, the dow has not done so the koptd mike santoli is at post nine to talk about the markets, and the run weve had and the seasonality were heading into last week he brought up the topic on whether the bears missed their good chance seems like that might be the case seasonality works for the whole market,me segments of the marke and momentum we talked about these rotations that happened over the course of the year from small caps to large, sometimes cyclicals worked tech has been consistent if you look at where within tech, maybe you would be encouraged by the fact that semiconductors within technology outperform the overall tech sector its the industrials of tech you only buy chips if you need them, if theres demand for them on the other hand you might be getting to a is this as good as it gets moemts for tment for th. We had record levels of etfs, everybody is on board with the seasonality. Hedge tufunds are concentrated the area and multiples have expanded earnings have been great, people are paying more for each dollar of earnings. One thing on seasonality, it has not worked in 2017 sell in may go away, didnt work october weakness didnt work thats true, seasonality didnt work within the seasonal patterns call for weakness thats one things people tell who look at the patterns, that gives you a picture of what the general climate is the weather is different within it when the market ignores a seasonal tendency, it means that trend is worth relying on. Its semantics, but thats the pattern. You mentioned the goldman report on hedge funds Short Interest as a share of s p market cap, below 2 , matches the left since january of this year, which was the lowest since 2012 people are very happy to be owning stocks right now. We can kind of slice and dice the sentiment picture how you want people are exposed to stocks, to the winning stocks that everyone has loved. Doesnt mean its about to end but its no longer kind of this huge wall of worry that the market has been climbing but then if it does end or if we get bad news, does that make it more likely that it will be a more dramatic reaction you have so many people expecting santa claus. This year yes. It would be a surprise i think in the middle of december, you sometimes get choppiness so, yeah last week, november was supposed to be also pretty positive especially starting in the middle you got 1. 5 down in the s p 500. A bit of wiggle in high yield debt apple was down, people thought it was the start of something big. The saving grace has been when you get a little bit of a pause, i think the anxiety rises to the surface. I guess im already thinking late december, january, if the lines, parking lots dont look as full as people expect or when the Holiday Quarter earnings come in. I think you will be fighting Higher Expectations into next year all the strategist notes for 2018 say more of the same. A continued calm, global expansion. All the stuff we got used to this year, but yooef only been used to it for six months. Six is not below 9. But it was earlier in the month. Hasnt happened that much looking at a chart of the vix this year. Majority of times its been under nine has been this year. Something structural and cyclical stuff going on now. If you look at all the measures of how calm this year has been, you have to go back to either 1995 or the mid 1960s, way before there was a vix but there were ways to measure how calm things were Consumer Discretionary is a group we look at its had a decent move so far this month up 2 . A lot of it is the media names like discovery, 21st century fox in there, the deal speck laying. Some reta speculation. Some of the retailers have done good that is very true you had all these stocks which were considered longterm losers like the chain retailers and media which have do then a lift. The equal weighted version of the Consumer Discretionary, it doesnt look quite as good but its been a bit of a lift the last month or so i will call this the alfred e. Newman rally. Worry yeah. Mike, thank you information on more than 57 million uber users was exposed and the company apparently covered it up. Deidre bosa has more the Company Covered it up with 100,000 of hush money and to keep it quiet they hid it from the public and regulateders for nearly a year already the new york attorneys General Office opening up an investigation on the matter. And the uks information commissioner has expressed huge concerns london already stripped uber its license over policy and ethics this throws another turn into the negotiations with softbank it would put uber on tinto quest uber did and did not disclose to the ftc. In a blog poest yesterday, Dara Khosrowshahi said he wont make excuse and cant erase the past, but he committed to learn from ubers mistakes. But the problem is that list has not stopped growing since he took up the position two months ago. Hes supposed to be fixing ubers culture, reputation, you cant help but wonder what other skeletons are still in the closet joe sullivan has taken the fall for the cover up uber firing him and a deputy this week. He was a highprofile hire in 2015 coming from facebook as their head of security im told that Travis Kalanick knew befoabout the breach but l it in sullivans hands i think were at the start of this latest crisis back to you. Thanks. Mike, youre still here. You said Something Interesting in the last hour about uber, thats what the impact would have been had they been public already on Something Like this would think had they not disclosed this somehow in a regulatory filing when it happened, certainly a payment to hackers, i dont know how you would finesse that, if youre a Public Company the big question for me, bigger picture, through all this, theres not been a discernible effect on usage of the services, on the customer side i dont know if that will change i have an odd and probably unpopular take on this incident. Surprise. What a great deal just 100,000 to put to rest a 57 million account hack thats a bargain any company would take how do you know it worked we dont we dont know the full story. Theres also questions about how this hack took place it appear theres were credentials on get hub that were scraped, it was a hack into amazon web services, which raises questions about two factor authentication for me lots of questions that well continue asking and digging into if you can put down Something Like this for 100,000, thats great. The other question is do we need to disclose it is it a part of housecleaning now because of a reconstituted board or daras presence the new ceo getting everything out there, apologizing for everything and saying under new management. I wonder how many other companies are paying ransom to keep that hack data safe they dont have to disclose this stuff. No, you dont have to disclose it in the regular course of businesses its one of the regular yews of bitcoin. I was going to say i wonder what currency it came in meg whitman will step down as hewlettpackard enterprise ceo early next year. Hpes current president , antonio neri will take over while whitman will remain on the board. Whitman joined cnbc earlier today to explain how the Succession Planning went down. One of the things i think you know that we do well here is Succession Planning. Got a good track record at ebay and a great track record here. Weve been thinking about what the Succession Plan for years. I said the next ceo needs to be somebody we promoted from within someone who is a deep enterprise technologist, loves the company, has a passion for its products and culture. Thats antonio i think you also need to wonder when an executive like this, who has been in the market for so long steps away from a company, are we at a top in some areas of technology. A lot of times these savvy ceos have a knack for stepping away at the right time. Ibm comes to mind. Some breaking news here it sort of relates to meg whitman. P g put out a news release saying it has not launched a challenge to the preliminary proxy vote results as part of the normal process the ibs tabulation, the independent auditor, results are preliminary and the company is going through a customary review p g will release the final numbers as soon as the final report is given. David faber reported that the company is challenging through a different process these results. P g saying, no we have not started a challenge. We will wait until the count shakes out a lot of it is semantics, knowing when to accept a final result trian appearing to say they are challenging it when we come back, facebook comes clean. The tech giant admitting that its antidiscrimination policy is not working as a report reveals the company is still letting advertisers exclude users by race. Well discuss that, get more on ubers hack cover up later on, were in holiday central Mode Airlines and retailers who could win this thanksgiving weekend when squawk alley comes back in a moment. E. I used to have no idea what the American Cancer Society did. Research . Yeah. But also free rides to chemo and free lodging near hospitals. I used to maybe give a little. Then i got so much back. I used to have cancer. Call 18004944357 today. Your contributions to the American Cancer Society fund valuable research. But thats just the beginning. A cancer diagnosis can kick off years of challenge. And thats where your donation truly shines. You help us fund free rides to treatment. A live 24 7 help line, free lodging near treatment centers. And even efforts to expand access to insurance. So, please donate today at cancer. Org and help attack cancer from every angle. Black friday, a few days away, now getting ready to co combat amazon and some other retailers. Look at 9 nathe names getting r this week. Lets bring in brent bill Senior Technology expert from jeffries, and sama nshn is also joining us what is real estate financing looking like how much is retail changing as traffic is down at places like traditional malls . Good morning. Thanks for having me on the program. Theres winners and losers theres as many winners as there are losers, maybe even more in that the magic words in the world of brickandmortar Retail Investing is value retailing, discount retailing, entertainment, restaurant and experience based retail. Neighborhood grocery based and drugstorebased centers are doing well because theres been little new construction during this recovery given the change during the world of retail, the power of ecommerce. The combination of the Consumer Preferences towards those types of retail that create an experience, create the leverage to eating out trend through restaurant presence is actually very, very effective on the other side of the ledger, you have old malls, even newer malls that did not retenet along with the changes happening creating an experience for the consumer that are lagging. Those are at most risk in this Holiday Season i think theres more fallout and your local retailer, the very small smaunonfranchised retailer that doesnt have the power to stave off ecommerce. Thats where the pain is brent, in your world of winners and losers, theres not just amazon. Who else do you perceive as a winner and a loser in your group . Amazon is the big winner. Theres clearly a massive tailwind selection, ease of use, price. They win across. Covering internet, if is a winner take all mentality when you see that on the ecommerce side the Jeffries Team believes walmart will be a beneficiary. The company has been doing well. The retail team is bullish about what walmart is doing as well. We also think, you know, ebay has been fundamentally performing, but undergrowing the ecommerce market. Ebay has been showing a slow improvement. So we think that, you know, ebay is one to watch. Certainly is not executing quite as well as others, but keep an eye on ebay. Im curious about i guess we call them dark malls now, those malls that could not survive. I wonder, is there a trend as to how theyre being repurposed now . Is all that space going to become Something Else entirely is it going to draw some demand for retailers who might want to have more physical presence . Some of our most aggressive investor clients are actually going after that opportunity because of the partial reuse, where you can bring in a fitness orients tenant, healthcare tenant, medicalen tenant, scho, reshape the whole investment thats a great value added Investment Opportunity then theres the wholesale complete reuse some malls may become Distribution Centers for amazon. You have target, macys, home depot doing a great job creating that ecommerce presence and catching up. Even macys has really made a big shift. And then you have traditional ecommerce type of electronic types of entities like apple, amazon, going into the brick d brickandmortar side of the equation by Opening Stores i want to ask you along those lines about mobile the expected growth in mobile this Holiday Season is about double what is expected for ecommerce overall it seems to me like retailers have not done a great job in building great mobile apps to run after that will that make the difference in who runs ahead this Holiday Season thats a huge part of it. Mobile is so important. Sorry we teamed were com score and they looked at this data 62 of the time is spent on mobile the explosion in mobile commerce is 20 plus spent share versus 7 year two years ago when you look at behavior of consumers, this is critical and why amazon is doing so well. You can be in the kitchen, order something on your phone. You can ask alexa, i need more cereal or toothpaste its so easy its not happening in front of a desktop anymore. Well leave it there. Thank you very much. Thanks for having me. When we come back, one of the busiest travel days of the year is here well get a live report from chicago ohare in just a minute. At tmobile, when you holiday together, great things come in twos. Like tmobile and netflix. Right now when you get an unlimited family plan, netflix is included. Ho ho ho tmobile covers your netflix subscription. Best Christmas Gift ever . So you can binge watch all year long. Now youre thinking christmas and now when you buy any of this seasons hot new Samsung Galaxy phones, you get a second one free to gift. Thats one samsung for you. And one to give. Tmobile. Holiday twogether. If youre traveling this holiday weekend, you can expect busy airports. The number of people expected to fly could break records. What does that mean for the airlines phil lebeau is in chicagos Ohare Airport with more it means it will be a busy start for the Holiday Season for them lets look at what it looks like here at ohare in all the years ive been doing this, this is the calmest ive ever seen this airport on the wednesday before thanksgiving. Almost 4 Million People will be flying in the u. S. This holiday weekend. Thats up 5 compared to last year the busiest the airlines have been for thanksgiving weekend since 2008 today the folks here are relieved theyre not dealing with super long lines. We were wondering how crowded it was going to be when we got here, it was crazy already. Its not as bad as i expected for the airlines, what does that mean . It will help in terms of revenue going into the Fourth Quarter and in the Fourth Quarter. The airlines, these stocks, if you look at the airline index, have not been recovering to the levels they were earlier this year because of concerns about the cost pressures, specifically what weve seen with jet fuel as it has moved higher. As you look at united, delta, american, the good news is theyre not seeing massive delays, mild weather across the country and the plains are pretty full. Almost good news for them and a good start to the Holiday Season they need this to continue through to january this is really where the airlines are hoping to make some hay, and then they have to hope jet fuel prices stay in check. Back to you. Yes, make or break. Thank you very much. Phil lebeau. Lets get to seema mody back here at post nine and get the european close european stocks mixed the Oil Producers are standing out. Sha sharply higher ahead of next weeks opec meeting in vienna. The pound is in focus. Higher now, but initially fell after the uk Government Cut its fullyear growth forecast to 1. 5 , down from its estimate of 2 that it put out in march. Philip hammond deliveringing his budget address today saying the uk marked 4 billion over the next two years for the brexit. Hammond pledged billions in tax breaks and government loan guarantees to boost Home Building over the next five years, but the uk Home Builders are falling on that news after the government said it would also reclaim land that was not developed quickly enough potentially weighing on future profits. You can see berkeley down nearly 3 the chancellor said the government will start the privatization process for the royal bank of scotland by march of 2019. Selling its 24 billion stake. This stock up 20 so far this year travel and leisure in focus. Thomas cook down sharply in london trade after shrinking margins in the uk business after four years of Profit Growth due to increasing competition. Germanys tui falling in sympathy back to you. Seema, thank you very much. Still ahead, add it to the list uber dealing with another controversy after covering up a Massive Customer data breach lesawdiscuss it when quk aly returns my name is jamir dixon and im a locate and Mark Fieldman for pg e. Most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Good morning im sue herera lyft joined the growing list of companies approved to test selfdriving cars on california roadways lyft launched a selfdriving division earlier this year and also signed an agreement with ford which should put that automakers cars on lyfts platform by 2021 the u. S. Trade commission is recommending tariffs to curb imports of washing machines made by south Korean Companies lg and samsung. If approved by the trump administration, that levy would be placed on machines over a 1. 2 million unit threshold whats the one thing you shouldnt buy on black friday . Apparently a christmas tree. Square looked at data from serlgs and fou sellers and found the day after thanksgiving is the day when trees are most expensive. And drivers pulled over for speeding or other offenses inlar ra in loredo, texas, instead of a ticket, officers are giving motorists a turkey but also a written warning. Thats the latest for this hour. John, back to you. You have to speed to get the turk turkey thats the message there. Im not sure okay. Moral hazard of a sort amazons Cloud Business and its march towards 17 billion in annual revenue, it will announce its teaming up with cerner, one of the Worlds LargestHealthcare Companies sources tell cnbc that andy jasse will make that announcement at reinvent, the conference in vegas next week. Shares of amazon trading at an alltime high today. Facebook under fire again this morning over targeted ads on its flat forplatform users could Place Housing ads that discriminated africanamericans, mothers with high school children, people interested in wheelchair ramps and jews among other groups. The company says it is a failure that should have been caught lets bring in jason good to have you back. Happy thanksgiving happy thanksgiving. Not a good look for facebook. How does this run afoul of a model that allows you to micro target in all kinds of ways . I think what were looking at here is facebook is telling congress and the public that theyre going to fix this ad network and stop allowing the tar getting of individuals by race this is a controversial feature they added and they have no safeguards on their advertising network. Very few and if you look at the ads that were placed. This is coming after pro publica did the same thing in 2016 the ability to get ads to exclude africanamerican people, jewish people, people with kids, people have to decide did we create this platform and care so much about making money that we have no regulation of the platform as we saw when the general counsels were under fire on capitol hill, they are going to be regulated they need to take action quickly. The investigatie ivive journali will keep poking holes in this if you can identify me in a photo out of billions of photos were your Machine Learning, you can apply that same Machine Learning to the ad network, but theyre choosing not to put their best minds on these things where is the line if im an ad buyer and i want to reach people in charlotte who like jeeps, im excluding other categories by that very buy. Sure. Theres two different filters here one of them is the law so the Fair Housing Act is very clear. You cannot discriminate by race, by gender, by religion thats a law then theres the moral and ethical compass that facebook lacks in terms of what should we build and how much friction should we add to the system . They need to add friction and safety to the ad network it has never existed in the history of humanity that a person anywhere on the planet can reach 2 billion people on the planet they have to take responsibility of these inknowunknowns allowing people to target by race is a mistake on their part. They should come out and say we should have never allowed this you can target what you want to have in the ad market. Housing is different. Its one thing if youre i saw this on twitter, if youre advertising hair Care Products targeted toward a certain segment of people with a certain texture of hair. But in housing, if you arecludi groups of people last week pro publica did this test its baffling that every Single Housing ad specifically exclut s excludeing a demographic is not reviewed it undermines their whole argument that they can selfpolice against discriminatory processes if this is still happening, how is that credible heres what we know from inside the Technology Industry when a Brilliant Technology company thats reached billions of consumers says we will work on it u they can get it done they have chosen not do it if youre capable of building a huge graph and can find my photo out of billions and can tag me with an algorithm, you are capable of policing advertising. They have chosen not to do this and theyre put themselves in the cross hairs of regulators. This will become a huge risk and will remove any good will facebook has for sharing baby photos, bar mits whatever else about it well wait and see how it builds over time and the other big story, the fcc releasing this plan to dismantle landmark regulations that ensure eke wrqual access to the intern. Ajit pai made some comments about how if youre going to have investment and bring internet to rural communities, you need a light touch on regulation is it wrong . 100 wrong. Hes 1000 wrong this is a complete disaster. Oh, come on whether youre left, right or a centrist i will explain it. When you get on the internet if you dont have Net Neutrality, theyre going to throttle Certain Services not there. So verizon, now has yahoo they might make google slower or could even charge you to access google a company like netflix or youtube, if they were a nascent company, they would be killed by verizon or comcast they would not be allowed to grow there are ways of addressing that without title 2 it baffles me that Silicon Valley has insisted on conflating title 2 with Net Neutrality with open internet. The real issue is that we need a structure that encourages competition in broadroadband, multiple choices why go straight to competition to do that Rural Broadband is something that we can actually figure out a way to solve by charging everybody on the network a dollar a year, or an extra 2 a year and subsidize it. We just got done talking about how facebook has all kinds of ethical and moral issues in terms of dealing with their ad network. You cannot trust Large Companies to do the right thing. The reason why we had this boom over three decades is because the internet allows a lechl pve Playing Field this legislation will remove the level Playing Field and allow different providers to pick favorites. You can be 100 certain they will ankle any competitor at any time weve seen it in the history of media, whether its the Cable Companies or other distribution systems. You want an open, level Playing Field. By putting this legislation in place, youll have to pick your service provider, verizon, at t, comcast based on which content you want to get. Its like picking up the phone and your phone company decides the cost of calling a bar versus a Church Versus a store versus a school we should not allow them to determine what content we see. We should have an open Playing Field and continue to have the next youtube and netflix emerge. If you regulate or allow the individual companies to regulate what content individuals see, you will not see another net flick or youtube you will not see massive innovation that has driven this stock market for two decades well have to wait on that one as we get a lot of conflicting signals about the governments view of market power. Happy thanksgiving happy thanksgiving. Another check on shares of hp, not doing well today sliding on news of earnings. Meg whitman stepping down. A check on the markets overall losing some steam here the dow down 46 points close to session lows. Back in a minute today on the half time report, the spread between the tech index and virtually everything else. Is it time to find opportunities in the everyone elthing else and the Consumer Discretionary stocks have the best chance of breaking out as we hit the Holiday Season half time report starts at noon eastern. Well see you then. Lets get to Rick Santelli at the cme group and get the santelli exchange. Hey, rick. Good morning. The interesting thing about thanksgiving is that all of a sudden yearend, all the holidays between now and the end of the year, new years eve, traders started to try to think exactly how the markets will close out the year equities, maybe equities are the easiest. They had small corrections, volatility has been low. And they just keep forging ahead. It is a global dynamic there was some nervousness a couple weeks ago when the german dax had a key reversal day had a high, closed above the previous settlement. Maybe it pten years, after talking to so many trarsd wderso start doing this this year, i decided to try the easiest method tenyear yields are trading at 2. 33 i find that an interesting number look at a yeartodate chart of tenyear notes see it see what the low is . 2. 04 see what high is 2. 63 lets go to the white board. Told you this would be easy. So, 2017, the low is 2. 04 on september 7th. The high, 2. 63, midmarch. The average of those two is where were trading now, 2. 33. Another method that traders like to use especially the gan traders, they look at various things and give them High Priorities one high priority is where a market closes. Its huge. Its very important. 2015 closed at 2. 27. 2016 closed at 2. 45. Take that average, its 2. 36 fascinating. If you look at the last six trading days, today the seventh. The tenyear note yield closed between 2. 32 and 2. 37. You see whats going on here were establishing a High Frequency area of trade. Will it close there. Im still leaning towards highly unchanged on the year in the mid 2. 40 squawk box, squawk alley gang back to you yeah, dont mix that up, rick of course not though ive seen you all morning on all the shows, ara. And you, Rick Santelli. As we head to break. Look at the retailers that are closed tomorrow for thanksgiving giving their employees a bit of time off home depot, apple store, bloomingdales all closed on thanksgiving surely their websites will be up and ruinnng. Ege and ege and you start trading. Yeah, 5 years already. 5 years, hmm. You ever call your broker for help . Once, when volatility spiked. And . By the time they got me an answer, it was too late. Td ameritrades elite service team can handle your toughest questions right away with volatility, its all about your risk distribution. Good to know. Thanks, mike. We got your back kate. Does he do that all the time . Oh yeah, sometimes he pops out of the couch. Help from real traders. Only with td ameritrade. Allow you to take advantage of growth opportunities. With a level of protection in down markets. So you can head into retirement with confidence. Brighthouse financial established by metlife. Holiday retail has always been a fierce competition. This year a major focus on using stores to get your online osrder free, fast and efficiently Courtney Reagan has a special cnbc pick up challenge what did you learn so cnbc and our nbc affiliate partners in chicago, dallas and san diego tested out six retailers sameday, buy online and pick up in store plamerogra. Each team placed orders at three competing retailers. Heres how it went at macys and kohls the first step is finding our items at the right store for sameday pick up which wasnt so easy with macys even after narrowing the search to a particular store. I chose pick up at store, did the search but it says its not available. Your pick up store this is not closest store it keeps going back at check out we had to choose the store for pick up. Kohls is next paramus this is not available within 50 miles of paramus kohls had us check pick up in store again, but the shop and search process was less clunky than macies. 42 minutes after placing the kohls order was ready once figuring out where to go, we had the order in hand in three minutes. Macys order was 2 hours and 33 minutes after. Between macys and kohls, kohls comes out on top for speed and easier ordering. Like other have a more endless aisle online macys has 900,000 unique items on line, 20 of that in stores, so its the instore inventory youre really buying from when youre picking up same day both macys and kohls see shoppers spend 25 more on average when they choose to pick up the id emin store because they are adding more to the bag and coming up on power lunch well roll out how home depot and lowes stacked up and well put all six retailers headtohead, who is first and last across all four cities. Back over to you guys. Thats news that shoppers and investors can use. Thanks, courtney. Another trend changing the retail landscape is the use of social media and influencers to drive steals revolve is an ecommerce retailer that may have cracked the code to monetizing social media. The company is on track to make perhaps 1 billion in sales this year with 70 coming through influencers. Joining us now are michael mente, the coceos of revolve. Good morning to both of you. Good morning. Good morning. So explain the formula, how influencers drive sales at revolve. Well, influencers today are some of the most trusted people from our, you know, influencers of our consumers, so ultimately we have to partner with them to share our message and tell our story in organic true ways i think the consumer is so much smarter and inundated with trusted media and invoice it is that trusted choice. How does that work . A lot is sharing the revolve lifestyle and product in natural settings, doing real things. In times past, fashion was very editorial and hyperstylized but now its really real people that are just like our consumer living the lifestyle and doing what they want to do. Give us the mechanics what are the influencers actually doing thats driving people to buy from revolve at the end of the day sharing pictures, similar to print ads would be, wearing our clothes and looking amazing. Of course, there are also representing our brand and linking and tagging us and ultimately educating the consumer that to live and look like me you can shop and buy your clothes at revolve. A lot of people dont realize, it but biggest influencers in the world have much broader reaches than some of the biggest media channels. Some of the biggest influencers have reaches over 10 million so its all about telling stories through the influencers that can reach millions and millions of people. Some people may not have heard of revolve i mean, ive shopped on it what i like about it is theres a lot of independent labels. Im just wondering, were having all of these conversations around black friday and the shopping period about some retail woes. How you guys see that hand how you see an ecommerceonly site trying to address some of the issues that the strug lung retailers are facing right now and what kind of success youre finding. Definitely. I think you hit the nail on the head with these independent emerging designers, exactly what this generation of consumers are looking for. They are turned off by mass Market Product so its all about creating an experience for the consumer that feels more special and something they cant get elsewhere. So for us its been key to our success and actually as important as black friday is to us, its not necessarily even our biggest day of the year because our customer is not discountfocused in fact, over 80 of our sales come at full price a lot has been written about your own fundraising strategy, the degree to which you either kept Venture Capital at arms length or welcomed them in do you see yourselves as having done something unique in that area completely. Weve had zero extra Capital Funding and started the business with 50,000 out of the house and build it to be a 100 million bootstrapped so i think were highly capital efficient and a little bit more old school in that regard in that were building a business we want to own forever. And how do you maintain that discipline is it just that you dont want to cede control or youre not interested in what they have to say about the model . I think at the end of the day the Business Model for us really works and were able to Growth Business without additional capital. In the future, know, theres a potential ipo on the horizon, but at the same time theres no rush for us because we dont need the capital michael, i see some similarities between you guys and stitch fix which just went public on friday where do you see the differences being, because youre both disciplined with your resources. You seem to be going after the consumer thats not looking for a financial bargain. Whaep whats the main difference theres two main differences. Even though we both sell clothes online to women, our fundamental business mod sell completely different. Were a little bit more of a traditional Digital Retail where theres a subscription model and people have a lot of questions over the subscription model over the long term and secondly if you look at the financial profile, especially at the moment, things are dramatically different, you know. Stitch fix, the revenues have declined or desell rated significantly over the past year where weve had a long sustained steady growth rate over the past decade i think thats also important to note that stitch fix has tripled their marketing spend while their profitability has shrank whereas we continue to get more and more profitable over time as we continue to grow. Our profits have tripled year over year versus stih fixs profits have declined year over year. Sound like a couple of guys getting ready for an ipo mike and michael thanks for joining us on squawk alley. Have a happy thanksgiving. Happy thanksgiving. As we go to break, two Companies Moving on earnings salesforce would be a big story on any quarter and slipping after issuing guidance on the revenue side game stop rallying after they surprised on samestore sales to the upside dow is down 52 points. Tek le wl bk ac afr this [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. whoo woman class, lets turn to page 136, recessive traits skip generations. molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. billionaire peter thiel sold 73 of his stake in facebook sold off nearly 170 million shares for 29 million obviously a huge owner and influencer of the forming of the company. Transaction is the latest in a series of sales in recent years. Wonder if hes getting some dry powder together to do Something Else of course, he has plenty of powder even without selling much facebook. Hes a billionaire. Could have a fact that facebook shares run, i dont know, 60 , so far this year, but hes also a trump ally so were always watching him to see. Hasnt actually gotten any appointments yet but hes on the board and its always interesting to watch what thiel does tech leads the market broadly. Not seeing a ton of action and nasdaq is the only major index thats positive. Saw the biggest gain there yesterday so the leader now in this rally, the leader pretty much all year for the s p 500 and the nasdaq. A couple of recent ipos doing very well this morning stitch fix which suffered after ipo day. We were just talking about them there. Up 8 so far this morning and roku, which had just a great quarter recently up about 7. 5 . Oil maintaining a pretty good day up a buck, not far from 58 which is the highest since 2015 so watch that. Half day on friday, and enjoy the thanksgiving holiday, guys. Well see you back here on friday. Lets get to the half. Happy thanksgiving. Welcome to the halftime report. Im melissa lee in for scott wapner the tech index is outpacing the market by a bigger margin than at any other time dating back a decade is it time for investors to move on or to keep piling in . With us joe terranova, steve weiss, jon and Pete Najarian and also with us is kevin ollie. And we start off here with this giant spread between tech and everything else. Dom chu is running the numbers. Hi, melissa its really tech and everything else, and just a han