Ignorance in the rank and file over that 737 max jet. Why mcdonalds is looking to sprinkle a little msg on to its Fried Chicken sandwich all that as we begin Worldwide Exchange right now. Good morning welcome to the show, im dominic chu. Here is how we are looking to start your morning off with fresh alltime highs the dow would open by another 23 points the s p and nasdaq hit record highs yesterday. On the bond side of things, we are looking at yields coming down slightly. 10year 1. 839 2year 1. 745 . We look at the asian trade nikkei up. Hang seng down similar in the shanghai composite. India is up one quarter of 1 . We are seeing a little positivity german dax up. Ftse 100 almost one half of 1 the cac almost flat. It has been moving between major losses in europe four major headlines looking to dominate as trading begins today. New developments as the Treasury Department lifts the label ahead of the big deal signing. Earnings kick into high gear as three big banks are set to report earnings. Ahead of the fed decision. Investors are awaiting new comments from John Williams and george as well with. They are speaking later on today. The wealth of data to pour in including consumer prices, retail sales and sentiment as well lets go back to trade eunice yoon joins us it looks like the trade deal signing is on track. Thats right. I learned more about the purchase targets in the trade deal and the near impossibility of trying to reach them. Sources familiar with the text of the trade deal said china will be ramping up its purpochas over the next 10 years with 2017 as the benchmark this is the way those break down agriculture will be 32 billion. Manufacturing close to 80 billion. Energy at 53 billion and services at 35 billion. Most have been focused on the agricultu agricultural progress. The question here how china can reach other goals in terms of manufacturing. From the u. S. Perspective, their belief is that china cannot reach other goals nonTariff Barriers, procurement, subsidies or industrial policies the u. S. , japan, eu are all supposed to be meeting china ahead of the trade deal signing on wednesday to discuss some of these none market Tariff Barriers the u. S. Has dropped the label for china. China has responded, very pleased about it the Foreign Ministry said china will never be a currency manipulator and the recent review confirms chinas impeckibility when it comes to this issue eunice, the currency manipulator tab is a big deal ahead of these trade talks and signings tomorrow. There is an enforceability factor about why the u. S. Withdrew the label for china, right . Because now they can say we have a way to enforce you devaluing the yuan right but the buzz over here is about this decision by the u. S. Is that this is china asking them to drop that label before we agree to come on board that will prevent it from devaluing the currency, so a lot of the discussion here is that it is really china that is the one driving that narrative the latest on the currency manipulator tab. Now to the Market Reaction around trade as stocks try to add to record gains. Joining me now, you heard the report this now, perhaps, really puts trade on more of the center and even back burner for the markets, does this not i agree, dom. You are absolutely right on that i think the administration is going to be touting this phase one deal up through the election where you are going to hear a year of this anything past this particularly for the delivery of this property talking about the bigger issues. Talking about whether this would set things up decently we know markets are looking ahead to that as well. How much will that particular development go in favor or against the markets as we move towards november in the president ial cycle in the fourth year, the dow is up on average in the fourth year a president is running there is not a lot of uncertainty. Whether you like the president or not, you pretty much know what we are going to get if this phase one is signed tomorrow, that is a great back drop the fed in its situation here is that during the fourth year of a president ial term, the fed pretty much stays on hold. Is that something we can expect this time around or are we expecting rate cuts this time . You are right the fed did their work last year because they want to be on the sidelines. They dont want the president to be running against the candidate or the fed being part of that debate they would prefer to do nothing. Wildcards can get thrown in there. The u. S. Economy suddenly throws off a cliff. Maybe it will, maybe it wont. The other factor is that the fed said they wont raise rates above 2 consistently. We have cpi heating up what if we get the overheating economy. Those two things could force the feds hand through the rest of the year it appears as though varibility is still in play. Lets get a look at other top stories we are following today apple is pushing back against u. S. Attorney generals characterization that the country did not provide substantive investigation into the shooting in pensacola, florida last month now deemed an act of terrorism en in a statement, they turned overall information it had frances minister taking his countrys fight over digital tax to the u. S. Media. In an editorial in the wall street journal, he calls on the u. S. To make a deal by saying by introducing a digital tax, france is adapting to this reality. Digital companies in europe pay an average tax rate of 14 points lower than others this is unfair to business and citizens who pay their share sticking with france and nissan and renault, those two companies are pushing back on reports its alliance is in danger of being resolved in a statement, the company said the partnership is solid, robust and dead french officials weighed in with reports that they would want to break up alliance where it was, quote unquote malicious. Amazon steps up the fight that it lost the jed incontract. Plus what the hell was that a classic scene from space balls. How visa has taken a page. Rahel has those details. Later on, want a little msg with your Fried Chicken sandwich. Why mcdonalds is experimenting with the new receipt that is trending and Worldwide Exchange returns after this every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. 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. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. The sun is setting. Thats a live shot of hong kong. It is now 6 13 p. M. Eastern time over there in asia welcome back to the show, visa is making a move beyond credit cards playing up for a big player in the fintech world. We have more on that big purchase visa is striking the deal to buy plaid. Referred to the plumbing behind fintech that helps them connect to users bank account some of their users include venmo and mint, as well as coin base so plaid launched in 2013 and it has said it works with more than 11,000 banks and more than 20 million consumer accounts. Visa and master card were early investors. Visa has been known as processor of debt and credit cards and now refers to it selfas network of networks saying that the deal is a longterm play and it will help them accelerate Revenue Growth over time and says the deal has potential to add as much as 100 basis points to Revenue Growth by 2021. Visa was one of the best perfo performing dow stocks in 2021. Still ahead, why pot stocks could stage a 2020 turn around what changes at the top mean for one company in particular. That when Worldwide Exchange returns after this todays big number 5,142,000,000,000 is the total market cap of the five largest companies. They now make up 18 of the enre p00 but in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Is. Welcome back lets get a check on stocks on the move moodys is down and moving spirit to junk status. Saying it will quickly erode due to absence out of the companys control. Spirit makes parts for the 737 max jets cloud era shares moving higher the founder of horton works which they merged with last year affirming its out look and those shares up nearly 2 premarket shares of game stop tumbling this morning saying holiday sales fell 25 . They expect in store sales to drop market cap below 500 million. Very much a small market cap still to come, earnings central, we speak with a top banking analyst for his top picks for todays earnings rush. What investors canxp eect from delta when Worldwide Exchange returns after this some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. That is a live shot of our Nations Capital now at 5 22 a. M. Eastern time. A lot of stuff happening there top headlines with phillip mena live from new york with the latest good morning. It is a pivotal day for the impeach trial. Speaky pelo Speaker Pelosi will meet to decide how to move documents forward to the senate. According to Cyber Security experts, russian spies started targeting the Gas Company Burisma where hunter bider served as a board member the president was impeached in part for issuing investigation into activity of joe biden and his son. The same intelligence known for hacking Hillary Clinton in 2016 is responsible for this effort two shooters in jersey city had a bomb in their van powerful enough to kill or injury people blocks away. The two were found dead. President trump and the first lady got a front row seat to the battle of the tigers. Lsu dominated clemson. The quarterback ran one in and won by 4225 back to you. A big congratulations to the Louisiana StateUniversity Tigers when we come back to the show, more pressure on boeing. Profanity laiden Text Messages over the 7 m j37axet and the companys response when Worldwide Exchange returns at high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes 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. Its almost like a challenge everyday mywws been an amazing journey. To see how well i can eat and still enjoy myself all day long. I wake up every morning to see how much weight ive lost and how much better i look. Myww join for free and get two months free you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dowhwhat do you see . He world, and start trading we see patterns. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein bars. Try lemon cake. Record run investors look to keep this rally run to the markets futures point to green arrows as investors prepare for a slew of Quarterly Results of big banks googles Parent Company is on the verge of joining the one trillion valuation club. Our own jim cramer isnt buying it yet as the second half of Worldwide Exchange starts now. Welcome back, im dominic chu, here is how stock futures look you can see gains across the board for the dow, the nasdaq and s p 500. The dow would open up by 25 points it is not enough but the s p and nasdaq hit record highs. Moving every so slightly to the down side. Showing around 1. 837 . Twoyear note yield ar 1. 58 japan was up big about three quarters of 1 shanghai composite were down one farer of 1 . In european markets, you can see red and green there. Dax up 0. 2 , ftse 100 up by almost one half of 1 . The cac down about flat as well. Looking at other top stories today. Rahel solomon has more good morning. The Treasury Department has unveiled a new wave of Foreign Investment overseas investors will need clearance before they can invest in a firm that either handles personal data or American Technology used by the military. The u. S. Is exempting countries from some of these reviews amazon taking new steps in the battle with microsoft over the jedi contract. Reuters is reporting that the company will ask for a temporary block on microsoft from working on that project. The plot thickens between those two. Newly revealed internal messages show boeing employees mocking the lion air call. According to a report, employees express concerns themselves over the possibility of one of its biggest customers potentially requiring pilots to require costly simulator training, now friggin lion air might need a sim to fly the max and maybe because of their own stupidity im scrambling trying to figure out how to unscrew this now. Idiots just the latest of the string of pr nightmares after those two deadly crashes what is interesting now, we are coming to expect some of these reveals. The issue now is to look forward. Boeing is one of the standard barriers for the u. S. Aerospace industry now david calhoun, day two of his job would have to deal with so much more thank you for that earnings season kicks off we are expecting results from citigroup, wells fargo and Jp Morgan Chase bank of america and more financials as a group have been on a tear up about 8. 5 since august alone the stand out sector up in that time frame Jp Morgan Chase around record highs. Joining me on the phone gerard cassidy. Can these big banks report results that would help power the recent leg of their rally . Thank you i think they can what will be interesting is the big universal banks which youve described reporting today have a very Diverse Revenue stream. What we have seen from the Federal Reserve lending data is that Consumer Lending has really accelerated over the last six months i think all three of these press on wells fargo because of the issues they are having as you know, Jp Morgan Chase, citigroup should see the results driven by the lending business, which are now stock prices the consumer stock prices are going to be key here, how much are you looking at the Economic Data around Consumer Spending and the strength to factor into the model and how you view these banks . I think you put your thumb on it that is critical banks are a product of the economy. With the Consumer Spending being twothirds of the economy, it is very, very important with the employment picture being what it is, they saw the Unemployment Rate almost 3. 5 , wages up, the consumer is in very good shape. On top of all of this, the consumer Balance Sheet is in good shape you look at debt to disposable income, it is nowhere near where it was the consumer has real power to spend money in our opinion lets talk about the power play right now we know Interest Rates are fairly interesting right now only because the fed is perhaps on hold and may be throughout the course of this year. Is the yield curve difference still something that matters to these banks . It sure does. I think if we see a steepening of the curve this year where we see the second half of the year, the bond yield approach 2 to 2. 25 that will approach the positive margin. As you probably have seen, the Net Interest Margin which is probably the difference weve seen under the funding of their liabilities. That margin has been under pressure we expect to see the pressure in the results today. We think the worst in that Net Interest Margin pressure will have taken place and start to ease up in the first half of 2020 and possibly the margins could go up by the end of the year a few moments here, is there a top pick of the banking universe yes, jp morgan and following that citi. And the diversified revenue coming from the capital markets. Thank you for your thoughts on banking, we appreciate it on deck today, Delta Airlines set to report Third Quarter results in a few hours hitting a record high from last year trading under that level for more, lets bring in the Senior Equity Research analyst this is a big deal because we have been watching these airlines given everything happening with boeing, how much is delta affected by the boeing situation . In some ways, theyve benefitted from it they have no max, no 737s on the ground theyve taken some revenue benefit from the grounding of the max. It has some knock on effect from the unit cost because they are dealing with high volumes of traffic. That is something that might proceed into this year as well what is the key you are watching when it reports results today for delta. We talk about revenue for the available miles and fuel costs what exactly is going to be the indication about delta and the rest of the broader Airline Industry at this stage i think everybody will be focused on the unit cost metrix. Expecting to be a little cautious and pricing flatup a little bit it is seasonally less important quarter historically the least important. I think given the cost and the business, all eyes will be on the unit cost metrix lets talk about delta. Are there leaders or ledgers in terms of where you see the future in 2020 yeah, i think it has been an interesting experience i think theres a lot of caution now across the space, across the u. S. Airlines in particular. I really Like American Airlines as well as delta just because of the fear and worry of where pricing is that is a good set up of earnings how much is fuel costs going to factor into the models. Do you expect those to moderate, accelerate what is the view there we look at the forward curve and what that is telling us. It has been clearly volatile typically, the u. S. Industry has been very good about modifying their capacity plans and when fuel runs. If there is an outlook to rise quickly, the industry is very good at pulling capacity down. Thats what wed expect Going Forward as well. Even though we have a relatively flat forward curve weve seen a lot of the major u. S. Airlines turn coming up on squawk box in a cnbc exclusive the ceo of Delta Airlines at 7 00 a. M. Eastern. Coming up, pot stocks are looking to bounce back after going up in smoke. Talking about the potential for growth for 2020 plus mlb comes down hard on the Houston Astros over the sign stealing scandal the growing fall outand atwh comes next when Worldwide Exchange returns after this twod at the start of every race. Every new job. And attempt to parallel park. electrical current buzzing each new draft of every novel. typing clicks the finishing touch on every masterpiece. newborn cries it is humanitys official twoword war cry. Words that move us all forward. The same two words that Capital Group believes have the power to improve lives. And that, for over 85 years, have inspired us to help people achieve their financial goals. Talk to your advisor or consultant for investment risks and information. Now you can, with shipsticks. Com no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. Sending your own clubs ahead with shipsticks. Com makes it fast easy to get to your golf destination. With just a few clicks or a phone call, well pick up and deliver your clubs ontime, guaranteed, for as low as 39. 99. Shipsticks. Com saves you time and money. Make it simple. Make it ship sticks. Shipsticks. Com saves you time and money. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. That is a live shot from the top of 30 Rockefeller Center in new york city. Still dark outside 5 41 a. M. Eastern time a new man in charge of pot producer, david klein takes over today. He had been a cfo of kons lags brands it was a disaster. Companies were hit by supply issues in canada and high tax rates in the United States where pot is now legal in many jurisdictions. Check out the ticker mj down 31 last year. Joining me now tim seamoure. Ticker there cnbs and an advisor, for a full list of disclosures head out to cnbc. Com you do own a lot of these names. Good morning. Lets talk about the trading action for pot stocks. It seems like bitcoin. When will they start trading on fundamentals is. Definitely not bit flowers or bitcoin, it will be one of the great Consumer Product stories where do we start to trade on fundamentals you can make an argument that starting in july last year, valuations didnt make a lot of sense. Where we started out the year, have we seen a bottom, the important thing is first of all in an industry that is constrained because of the federal dynamics, companies tend to be very rational and focused on putting together a business that makes sense and ultimately is profitable and generates free cash flow. A separation you are starting to see within the ranks and within the countries themselves we have seen Enormous Growth where we show nearterm profitability. Talking about the haves and have notes. As an investor, where do you look what are the key risk metrics you want to look at . Is it balance street help, growth and revenues. What says this company is better than another one if you understand the Balance Sheet, you understand the stories and the next potential disaster in many cases, it has been either debts or raising equity with a huge amount and also warrants attached to it. You want to find the companies proving some path way to be near term capital or have the Balance Sheet to withstand a difficult period to be clear, i dont think youll need to see the change. I dont think youll need to see large investors come in full bore certainly not in the next 6 to 9 months look at cannabis growth. People have been critical but it is a company with enormous Balance Sheet where a dollar allocated today versus in 2019 will be not only much better spent but there is screextreme u when it comes to m a people are very worried about its Balance Sheet. Also a big capital race who look like the balance rate. These are names where you are starting to see separation, gti, people are very excited about. The big turn picture is very much a story that is coming true valuations and fundamentals arent always balanced up. How do investors go to investing in pot stocks. What is the best strategy and approach and Risk Management here. Just because a company is listed on the exchange doesnt mean it has to be its own. Looking at 10 qs and filings and try to understand the insiders selling and buying and understand the capital structure looks like i know that is not simple, the Balance Sheet is important now companies are well positioned where theyve built an asset base in a state or in a country where there is profitability they havent necessarily tried to put a bunch of assets together m a last year seemed like one plus one equals three. That is not necessarily the big Business Model these days. Thank you for that insight. With that information on pot stocks has you hungry for trending stories, lets find out what else is trending today. Rahel solomon is here. If you have the munchies im here to deliver. Burger king is facing some backlash from the Group One Million Moms in the ad, one customer says, damn that is good. Calling the line controversial and damaging mcdonalds is continuing efforts to launch a new chicken sandwich currently testing msg in two new sandwiches the enhancer has been linked to Health Concerns and can be controversial but is considered generally safe by the fda. Both chickfila and poppies uses it in their sandwich as well jeff bezos announced hes making a dont nation of millions to the australia mild fire efforts. Some say that is chump change and others defend him saying, he really didnt have to donate anything if you donate anything, it is better than doing nothing at all. There is so much going on there now that needs to be addressed there are reports that maybe a billion animals could have died. Im also curious about the msg thing. Havent we moved away from the msg . Apparently not. It is in the poppies sandwich and chickfila. The race to be the best is back. You know im out rahel is a vegetarian thank you so much. In sports, the Houston Astros have fired general manager and manager over Major League Baseballs sign stealing scandal. The move comes after the League Suspended the two of them over the accusations that the astros cheated by using a camera based sign stealing system during the season and world series as well in the 2019 season houston got a report 30 million for winning the world series as part of the penalty, the team was fined a record 5 million. The most it canbe fined. It will lose first and second round draft picks this year and next year as well. What is curious now for fans, there is a man central to this right now. Alex core, the manager of the Boston Red Sox it has been talked about widely as being the next person possibly implicated in this process. A big developing story and well keep tabs on on deck, the biggest names in health care coming together for a highprofile conference. What Industry Leaders are telling cnbc about the challenges the industry is facing the Parent Company of google moves closer to joining one of wall streets most elite groups. You can always watch us live on the go on the cnbc app Worldwide Exchange is back in a moment some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Shares of tesla are set to open at the new alltime high. Stock is trading there up two and a quarter percent after rallying yesterday to close at 524 a share the stock has been on a tear since last october and the entrance to the key chinese auto market alphabet is closing in on a 1 trillion market value which would make it the fourth largest tech kl. Our own jim cramer is not convinced on buying into the hype right now i dont like this move. It is based on nothing fundamental, just the momentum weve seen in so many tech names. We are mentioning two other things that are microsoft and apple which means they will not be able to withstand Earnings Results and the super beat i dont know ifs that even possible facebook is in the same boat for more on hat, marching forward to stocks go over to cnbc. Com larry fink is out with his letter and claims Climate Change has become a defining factor blackrock is announcing it will exit certain investments that present a high sustain stainabilityrisk, among them coal producers the attendees of the 38 annual Jp Morgan Health care conference reconvene plenty to choose on from rising costs and the upcoming president ial election. More on the big take away from that conference. Drug prices were a major topic as they are in every year. This year, there was a new topic. That was the formation of a new company to undercut the price of branded medicines. We spoke with the founder and ceo of that company. The spread where prices have gotten and Technology Makes those prices possible today. That spread is an enormous opportunity. This is very simple and difficult. We say we see that opportunity we want to reengineer the system to bring the patients. Including eli lily ceo individual ricks this has been tried before with lower list price drugs. They havent found as much success. We asked ce os about the impact of the election we have been working with policymakers in washington to look at ways we can contribute more to help patients have less burden and outof pocket costs. A recent study came out to suggest that over 50 of the cost of medicines actually going to payers and other systems, that number up from only 30 from five years ago. Everyone agrees drug prices are a problem that needs to be addressed. They dont agree on the solution well have more from the Conference Today including exclusive interviews from ceo of signatu cigna, pfizer and more we have more im joined by david kats, lets talk about the markets they continue to set record highs. Is it a good thing or does it worry you . Both. You are seeing a lot of the faang stocks melt up we would not jump on that brand wagon. We like the stocks we hold a number of them we dont think now is the time to put new money in. If you look at the market, there are a lot of good businesses that didnt participate much company like viacom, great company. You just had the ceo of gill yad speaking paying 3. 9 dividend very good business, very attractive valuation lets talk about the banks. They will be a huge focus this week citigroup, jp morgan today what are you looking for those have been outperformers as of late. Jee we do. They are still selling at a Good Discount we think this will be a very good place to be things you are looking for are the credit quality, loans picking up are they able to make a profit we think jp morgan, citibank have better than expected earnings wells fargo is a little more caution. We think wells fargo has the best upside over the next 6 to 12 months. Are regional banks much to look at. The money center started out best we think theyll catch up over the next year. Theyll make a good return, not a 50 p return but 10 or 12 return thank you always good to get your thoughts that does it for Worldwide Exchange this morning squawk box begins right now. Good morning, chinas delegation arrives we learn more about the hundreds of millions of goods china has agreed to buy. Earnings season here and more and larry fink making environmental sustainability a goal of all of the firsts decisions. It is tuesday, january 14, 2020. Squawk box begins right now. Good morning, everybody. Welcome to squawk box here we are live from the marketsite in times square. Lets look at he can quity few turz yesterday, we saw s p 500 and nasdaq setting highs nasdaq up about 1 gaining 95 points dow up 83 points but did not make up for the losses the dow experienced last friday. This morning, you are seeing a slight give back dow down by only 12 points s p down by about two, nasdaq down about nine. Theyve been up three of the last four days lets look at the treasury yield. Looking at the 10year yielding