A 50 billion deal and room to run. A closer look at the consumer and the stocks our expert guest says are the must buys heading into the new year as Worldwide Exchange begins right now good morning im dominic chu. We begin today in our Nations Capital warehouse democrats are set to impeach the president for the third time in the history of our country. The president sends a scathing letter to House Speaker accusing her party of, quote, unconstitutional abuse of bower. Going to tracie potts. We have new details of how this might play out and how it might get extended beyond the six hours of debate. In that letter you talked about. President trump on the eve of this vote is accusing democrats of declaring open war on democracy. Rallies across america on the eve of a vote to impeach President Trump on abuse of power and obstruction of congress i have not seen it. It is a hoax his comments follow a scathing letter to House Speaker demanding she immediately cease this impeachment fantasy arguing that more given to those accused in the salem witch trials. Hes going to go all in six hours of debate unknown will republicans use procedures to delay. The legacy of the 116th congress will be defined by her hatred for President Trump defined by a trial set to beginnerly january this thing is dead as Fried Chicken in the senate. Rejecting the request to call witnesses. Do you want someone who proudly says they are not impart al to be on a jury judging high crimes and misdemeanors . President trump almost certain to be cleared by republicans controlling the senate after becoming only the third president ever to face impeachment. The times are still fluid there are procedures on both sides that could stop the clock and delay or extend this six hours of debate. Dom, right now, lawmakers are expecting a final decision by the end of this day. So tracy, lets talk about some key layers you mention. As we talk about senator mcconnell and adam schiff on the house side, how are these folks approaching today and have they made any kind of comment and how much more pressure will be brought to bear in the coming day . They all will be talking. Im not clear anything they have to say will pressure anything more than theyve already heard. When you talk about pressure, you are talking politically vulnerable democrats we are counting 45 of them 42 of the 45 are still voting in favor of impeachment at least based on what theyve said publicly. Also on the senate side here, we know the impeachment will happen is there any indication besides what leader mcconnell said about what we can expect to see on the senate side of things as we prepare for this house vote . What we are hearing is that the procedure of the trial is expected to start around january 6 with the trial starting january 9. The big hang up is how long will it last. Mcconnell has been clear that he does not want the witnesses. We dont know how much pressure is being brought to bear by the white house because President Trump wanted his day in court so to speak as opposed to something that would be a short trial where he wouldnt be able to bring in all of the detail of the testimony he thinks would ignore the house thank you for the latest. Back on wall street, stocks continue to tick higher. S p 500 seeing the longest win stre streak since november. If these few tune gains hold, the dow will open up another 30 points and the nasdaq about 11 yields continue to be a focus. We are seeing a slight down tick the 10year benchmark currently 1. 873 the twoyear, right now 1. 625 around the world stocks slipping from recent multiweek highs your own Joumanna Bercetche is live in our london news room good morning, joumanna good morning. Lets start with european markets. We are trading moderately today just below the flat line this morning, despite data that came out about an hour ago that the Business Sentiment is beginning to improve and seeing positive signs that was the ifo data released cac in france up around a quarter of a percentage point. Very big deal announced. Psa, peugeot, formerly announced the merger fca on the italian index leading some of the gains on those indices. It has been a Long Time Coming one of the big stories driving autos. Ftse 100 is something weve been watching closely we saw that big bump on friday some of the stocks pulled back their gains also worth baring in mind big movement in the pound. Sterling trading back down to 1. 30 and up to 1. 35 that brought in a big majority for the conservative party people thought that would bring in positive news latest developments have shown they would like to rule out the possibility of another extension on brexit post 2020. Switching on, lets talk about some of the price action in asian markets. You can see moderate gains for shenzhen slipping overnight to the tune of about 0. 2 of a percentage point. Nikkei and germany slipping around 0. 6 of a percentage point. We saw weak numbers for november down around 8 yearon year. Imports dropping around 16 . Taking a bit of a breather but worth mentioning that all of these indices are up north of 20 for 2019 so still been a strong year. Joumanna, if i tilted you back towards europe a little bit. The broader measure of stocks hit its own record high joining the s p 500. What exactly has been the driving force recently behind those record highs in the euro stoxx 600. Are there sectors that seem to stand out . It is a very valid question we are all scratching our heads asking the same question it appears cyclicals are finally getting their love what are the best performing sectors. Autos were heavily beaten. Semiconductors as well all of the indices that were not loved are finally seeing a bit of love. Also financials that is a verier n undervalued sector paying high dividends north of 5 seen a lot for that sector as well a lot of people saying with the data back drop, you could continue to see in flows and perhaps 2020, we could continue to see that trend of sick clith outperforming the market new this morning, fiat, chrysler and peugeot reaching a binding agreement over a roughly 50 billion merger set to create the worlds fourth largest automaker and put brands like fiat, jeep, dodge, maserati and alpha romaine owe under one roof as the Companies Work to come up with a new name. The house yesterday approving a massive 1. 4 trillion spending package it could stave off a looming federal shut down and fund uncle sam through september 2020 the senate is expected to vote this week before fridays deadline and on trade, the House Committee clearing the way for the new north american trade deal the usmca setting up a deal in the full chamber tomorrow. The senate plans to ratify the hearing after it holds the january trial on weather to remove President Trump from office fax ex ceo and what he told analysts on a call last night. And why shares of pg e are higher as they continue to deal with the fall outfrom the California Wildfires and its bankruptcy later, room to run and the consumer the stocks our guest says are posed for a break out in the year ahead all of that and more when Worldwide Exchange returns after this memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. For your worst sore throat pain, try Vicks Vapocool drops. Its not candy, its powerful relief. Ahhh vaporize sore throat pain with Vicks Vapocool drops and try new vapocool spray. Check out shares of fedex falling hard after the shipping giant reported disappointing earnings citing, quote unquote significant challenges getting to rahel for more. A lot of people will be talking about this Second Quarter adjusted profits fell 39 operating margins in both express air and ground divisions slowed significantly and they are cutting their 2020 earnings for now the second time this year citing the cost of adding sunday delivery for the holidays. Impacting the u. S. china tariff and the fallout with amazon. Fred smith was on a call yesterday. Due to continuing trade disputes and reductions in freight and at best b to b domestic parcel. We remain highly positive going into fy 21 absent negative macroeconomic elements also not helping thisyear, the Holiday Shopping season is six days shorter data from customers suggests fedex is trailing rivals like ups in on time performers. Shares are down more than 6 right now at almost 7. 5 if these hold, that would put the stock to negative territory for the year a big deal. For what many consider the bell weather of the economy still ahead, bullish on health care. One stock our guest says is a must buy as markets hover near record highs todays big number 500 billion the annualized dividend tera used by the s p 500 in q 4 a record high. What if numbers tell only half the story . At t. Rowe price, hundreds of our experts go beyond the numbers to examine Investment Opportunities firsthand. Like a biotech firm that engineers a patients own cells to fight cancer. This is strategic investing. Because your investments deserve the full story. T. Rowe price. Invest with confidence. 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Central time a live shot of chicago, illinois the winter storms that have battered it over the several days looking at the market themes well be watching into the end of 2019 and 2020 first of all, the big divergence that happened between large cap stocks and small cap stocks. The key to that namely the technology s p 500 and the russell 2000 we see a big gap the russell 2000 small cap has played catch up this last leg higher up 13 . Large cap still outpacing things well see if they invalidate those things a couple of bell weathers and indicators key groups we are watching hitting record highs again you can see the white line here has been positive all year long. The other place we are watching is the dow transportation index. Given what we saw in the earnings index report. We look to valid highs looking at transportation stocks to add to that story right now, over the course of the year, fairly flat. A Little Movement here certainly, a couple of big Industry Groups to watch as that plays out to the end of 2019 when we come back, we are live in washington, d. C. Where the house is set for an historic Impeachment Vote we are talking about the impact this could have on policies that matter to the markets and your money when Worldwide Exchange returns after isth brakes scr okay. So, today youre going to leave your phone with a guy named flip. ding but its more than your phone, its your business, your customer data, your sales figures. And who can forget, those happy hour selfies . Not flip. honking, gasping this isnt working. Introducing samsung Business Security solutions, with knox software. With the galaxy note10, you can remotely wipe data or lock phones, so your business is secure even when your phone isnt. Samsung business solutions. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. The house set to hold a historic Impeachment Vote against President Trump today. We have Team Coverage on the potential impact to you and your money. Fighting to stay afloat. Wework securing a nearly 2 billiondollar lifeline and our series, room torun rolls on. We take on one of the best performing sectors all about the consumer and their Discretionary Spending the second half of Worldwide Exchange starts now welcome back to the show thanks for being with us here is how your money and investments look right now as we are half way through the 5 00 a. M. Eastern hour. Looking at more gains to add on top of the records we have seen. Indicating a 25point rise in the dow. It is modest but still green s p is up by about two point is and the nasdaq up about nine points as well the 10year up about 1. 868 . The twoyear about 1. 678 . New york life to buy cign about 6 billion the deal will expand new york lifesofferings giving signature gn wework with a credit of nearly 1. 8 billion. Tesla reportedly cutting the price of the model 3s made in china tesla is working to lower costs by using more locally sourced components it is set to be an historic day in washington, d. C members of the house set to gather in that building later on today to vote on impeachment charges against President Trump. Beginning at around 9 00 a. M. Eastern and debating the two articles of impeachment. That is expected to last about six hours or so. The final vote expected to take place 6 00 or 7 00 this evening. This comes as President Trump continues to cry foul on the impeachment process overall sending a letter to House Speaker calling it among other things an illegal partisan attempted coup we have full Team Coverage ahead of this vote live with us well start with you and what these charges all boil down to in the end i want to focus on the first article of impeachment which is abuse of power underpinning that charge has pushed the limits of washingtons budget and appropriations process democrats say that money was held up to ukraine to conduct the investigation of the bidens. We have obtained a legal memo that details why the administration believes it had authority to withhold this money. It argues that this is not a policy defer which would require notification of congress but a progr programmatic delay this is the technical debate happening today but certainly not the first time the white house has used the budget process to advance its own goals. The administration has been paying for the border wall by transferring money they have issued mixed rulings after the white house has acknowledged that budget couldnt balance over the 10year window, it changed the time to 15 years typically, the office of management and budget is one of the wonkier offices. Wonkier is a technical term these days lets go back to that memo it sounds a lot different than the angry letter than President Trump sent to the House Speaker yesterday. It seems thorough and thought out without a lot of color commentary what you are really seeing is the mood on capitol hill shifting when the house began the inquiry, they were very clear they were on a Factfinding Mission and they wanted to stick to the facts as this played out, youve seen sentiment harden on both sides youve seen poll numbers bounce around the middle not moving very much. Perhaps a slight edge to those who believe President Trump should stay in office. Really, the needle has not moved. You have seen the frustration boiling up inside the white house and capitol hill all of that will spill out on to the house floor in a couple of hours. You are talking about the move you mention the feel lets talk about some of the individuals at the center of this how can we expect folks like adam schiff and Senate Majority leader to take this in terms of their move for todays proceedings . We heard from the House Speaker that she wants to approach this prayerfully. She sent a letter to all of her colleagues to stand with them to say that no one comes to congress to impeach a president but that the moment has called them democrats really framing this as a moment in which they have no choice but to act saying that this is not something that they had preordained from the beginning of the election but certainly republicans have a very different view. They are arguing that democrats have had it out for this president from the beginning thank you for that update lets turn now to eamon javers we kind of know the house will impeach and the senate will likely not convict what happens next . They see this as all but a done deal today. No real doubt whether the democrats are going to pass. They feel like they have the votes in the senate as you are talking about to avoid being convicted. The question is what will they do with this in 2020 this is the first time we have seen a president running for election after being impeached by the senate. Saying the president will focus very much on the same issues hes been focusing on all along. Some of the big ones Prescription Drug pricing is something they have an opportunity to do in a bipartisan way the border wall and immigration and tax cuts 2. 0 following on the cuts made early in the administration a lot of these items will be negotiated with the trade wars or things that they really expect will pass on a very divided Election Year. Looking ahead, they are looking at the state of the union as an opportunity for a real reset they may have the timing as such that they have an early trial in january. That will give the president the opportunity to sort of clear the decks and start again. So eamon, is the white house going to get any of their policy agenda through the white house is this just talk at this stage . It is just talk a lot of these items are not going to pass. Precipitation drugs is one that has a chance this is all about igniting debates. The idea is that they need intensity going into 2020. They need their voters fired up. They won in such a narrow fashion last time. We need to get every voter they know they dont have a chance to reach across the aisle. Youve got to fire up those people that voted last time. You do that with intensity and emotion. This reelection is vindication he was hoping maybe get it in a trial. It looks like they are steering away from the strategy aiming for a strategy of a short and quick trial and moving on. The opportunity for this president is going to come on election day eamon, thank you for that update for more on this vote and the impact it could have, im joined by jim lucier of Capital Partners this is now pretty much a foregone conclusion but there are real world impacts to policies that we all care about because of what is going to happen in the aftermath of this impeachment process. What can we expect in an Election Year given those big hot button issues, like precipitation drug pricing, like trade, like immigration and border wall and like tax cuts 2. 0 . Dom, there is a political and Business Cycle the political cycle seems to be back ended, back loaded on the year we are doing big things right now on the u. S. china trade deal, defense authorization. Congress is enormously productive in this final week. Well see something similar. We have a very quiet january and february well have a late state of the union this year. The reality is most of next year is the election. Probably also when we have the lame duck session after the election about a year from today when we may actually see the last opportunity for this administration to do big deals on the way out long, quiet year and another big november and december. This impeachment process. We already know the nation is divided on whether President Trump should be impeached or not. In the aftermath of this with this economy going forward, are there places that could go forward would be in health care or precipitation drugs the taxpayers and policies some of them really want to push through wealth taxes and other things certainly it does we will see that impact on the election and the outcome likewise, impeachment will be the lead into Iowa Caucuses and other primaries. The super tuesday process. We have not one but two super tuesdays. Delegates will be chosen those days President Trump who doesnt have a primary opponent will be trolling those constantly. The odds of anything big happening early in the year or even the end of the year are really low investors can basically take the starting victories in the past couple of days usmca, china, no government shut down and can concentrate on the election that overshadows those. Thank you, always appreciate it lets get a check on the headlines outside the world of business with the latest there good morning President Trumps former Campaign Manager is facing jail time prosecutors asked for probation. The judge sentenced him to 45 days in jail his former business partner, paul manafort, is serving seven years in prison for his role yesterday, the former Campaign Manager was sent to prison hospital for heart problems. Family and friends gathered for the funeral of detective laid to rest after being killed in a shoot outin jersey city described as a devoted husband and father of five one of his sons could be seen saluting at the service wearing his cap. A pair of missing sibling were found alive following a threeday search found a short distance from their home lost in a wooded area the children were treated for dehydration and minor injuries they said they were so hungry, all they wanted was a cheese pizza. Thank you frances rivera. Great to hear those stories this Holiday Season coming up, our series room to run continues we are putting the consumer front and center in the spotlight and asking what companies will need to do in the year ahead to keep them spending Worldwide Exchange is back in just a moment. Thats a live shot of 30 rock in new york city. You see the ice rink there the tree is not lit up but it wouldnt be christmas in new york without seeing Rockefeller Center taking a deep dive into the Market Performance today, the focus on the consumer and discretionary sector one of the best performing since 2009 up 315 and led by power house names like amazon and target the sector consistently outpaced but will that run continue in 2020 joining me now, ceo and head of research at telsy advisory group. It has been a bull case for this run. Do we have room to run in 2020 i think you do have room to run in 2020. The consumer with low unemployment youve got wage growth if anything, more elements to Consumer Spending than seen before dynamics and changes going on. That chart is up over 3 amazon is a big driver of that it is because it has grown so large. It is not the only one out there. We talk about amazon fication of retail i think one of the things we are seeing is there is a tejerness required in order to win, you need the physical and on line combined. Product innovation if you dont have something new all the time, youll need to track the consumer what about speed and seamless. You can execute. Think what 2020 will bring it will be about data and the reading of that data in order to inform personalization will allow management to have visualization. Speed and data will be the attributes to win. When we think about data and speed, we think amazon, target, even walmart when i think about the stickiness of retail, i think of brands and the loyalty to them these days, its up in the air which brands have that loyalty are there companies out there, brands out there that have done abetter job than others that will keep me as a con surm coming back to them . A number are powerful and are capturing different generations. Look at nike we have the olympics coming up in 2020. Nike is powerful for active and lifestyle. Take a look at the f corp. The house of brands. North face or timber lynn. Lvmh, just buying tiffany. They dont discount. They have global reach that is impactful. Look at off price. They surprise you all the time with the experience and they are capturing different generations. I agree, brands have to say what they do and do what they say and they attract the consumer on a repeat basis are there trends with he should be watching in 2020 play out . Weve spoken about a supposed barbell in retail. You mention lvmh, the luxury high end doing pretty darn well and then the Dollar Stores and discounters doing well do those continue . Are there other ones we should by watching . What will be hot in 2020 i think there are new trends out there. New channels whether rental, consignment. Subscription look at stitch fix and that they are capturing new customers. Look at rental Even Companies like nordstrom are testing rental look at consignment. It is only going to grow larger, sustainability it means something in every category i think well hear more about it it has become more important to the consumer and retailer. You mention consignment recommerce, the idea of secondhand commerce how much should retailers fear for e commerce and recommerce. I think they should embrace it watch Business Models morph is part of 2020 and beyond. We appreciate it. Coming up on deck, we are teeing up for the day ahead including pressure as fedex shares fall short of results and eli lily ceo throws ldco water on the Elizabeth Warren plan what he says coming up next. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Struggling to clean tough messes with wipes . Try mr. Clean magic eraser sheets. Just wet, squeeze and erase icky messes in microwaves and on stovetops for an amazing clean, get the power of mr. Clean magic eraser in disposable sheets. Time for your executive recap. Shares of fedex down after the shipping giant reported weaker than expected Second Quarter results and issued the latest warning for 2020 profit over a continued slump in air shipment. Fiat, chrysler and peugeot have reached a binding agreement on a nearly 50 billion merger and expect it to wrap up in the next 12 to 15 months once completed will make the worlds fourth largest automaker eli lily ceo speaking back to Elizabeth Warren disputing the senators accusation that the drug maker failed on its pledge to provide patients with lower priced insulin. Thats nonsense nonsense . I can tell you what the facts are today. Many policymakers encouraged us to lower the price of insulin. We did that. We halved the price. Only one in four americans will part d coverage have access. That doesnt show we didnt try. We did try this shows what is broken in the rest of the fapharmaceutical system stocks are looking to add on those record highs with futures up slightly now. To mark, room to run, does it last in 2020 given the record highs weve seen in stocks consistently this year in the short term, there is morris being than reward there is not a run in the short teem the fed issues an ikata boy foregoing up there on the sidelines in 2020 they are not going to hike or cut. The focus really shifts more towards the election or earnings more towards trade the market remains in a strong uptrend. You have roughly 80 of the s p 500 trading up, which is really bullish that trends up at 50 . We are at 80 pull backs remain viable they would expect another good year in 2020 not as good as 20 as we have seen in 2019 but should be another good year. If cash is not a fourletter word and i have some of it, where should i be buying those dips what parts of the market goes on the Shopping List . One on our list would be the Health Care Sector heading into 2020, i think there is a lot of potential there. This has been one of the worse performers all year long until Elizabeth Warren began slipping. There was concerns about medicare for all as soon as she began slipping, now it has been the best performing sector. Youve got a strong positive uptrend. About 95 of the stocks traded above their average. Next 12 months returns when it crosses are positive 17 versus positive 11 when you are not in that condition you just had three obama care tax increases. There were a lot of tail winds for the sector that move, can we put up the chart again has been crazy health care has been lagging it is almost a 30 to 45 degree angel. Given that move, are there stocks that provide a better opportunity . Ill give you one that is a catch up trade to the catch up trade. This is a stock in our opinion is completely miss priced. You have the bare case scenario. They have a less invasive, more patient way to detect Colorectal Cancer the old School Testing are not fun so it causes people to put off or avoid testing this has been approved now for younger ages, which expands the market further there is a lot of room theyve only got 5 of the market now they have the best testing method possible. Do you have a position in that stock we do not always great to get your thoughts here. That does it for Worldwide Exchange this morning squau squawk box picks up coverage now. The house set to vote on the impeachment of President Trump cbs h we have full coverage and what to expect from the president. And the market and economy and the president s agenda it is wednesday, december 18 and squawk box begins right now good morning we are live from the marketsite in time square if you look at the u. S. Equity futures, you will see green ar owes across the board. We have now seen 30 record closes for the s p 500 this year the nasdaq with the biggest gains up nearly 33 yeartodate nasdaq up by about eight points. S p up by 1. 5. The 10year seems to be yielding about 1. 87 . The house prepares to vote on articles of impeachment today