Good friday morning. Welcome to squawk on the street. Post 9 this morning. Jon fortt has the morning off. Watching the markets closely, the u. S. Employee number, 178,000 new jobs in november. Thats according to the labor department, almost in line with estimates. The Unemployment Rate ticks down to 4. 6 , the lowest level in nine years. Hourly average earnings falling 0. 1 , the final number before the meeting this month. Mike, we took your temperature on it. We talked to jan about essentially what hes calling full employment and whether and when wages catch up. Thats right. Basically its the economy we thought we had, the labor market we thought we had coming in. The market maybe dodged a slight bull net the sense it cements the certainty about december and what the fed will do. To on the wage front, i feel like the market is not getting too concerned about that mostly because the mix is probably partially to blame. So in other words, a lot more younger workers, fewer Older Workers that might actually damp overall wage growth. The bond market getting a little bit of a bid on that wage news. It seems like that very extreme sector rotation bonds into stocks and also within the equity market seems like its taking a break today, which is probably healthy. Taking a break because so much money has come out of bonds. Do you think its largely done or do you think that theres more to go in december as we get a little more volatility . Its interesting, kayla. I think it should by all sights be done for the moment, meaning, in other words, it shouldnt keep going up at this pace by any stretch. Its very telling that were not getting much of a rally in the bond market on what could be perceived as a slightly soft wage number. So its very tough to tell. What im assured by, though, is not so much the fact that the tenyear treasury yield has gotten up to this level, but the corporate debt market has remained so strong in the face of that, its basically the spreads have tightened, both high grade and high yield debt has been firm. Thats been supporting the equity market. Getting word out of blackstone, a press release that president elect trump has established the strategic forum, a group that will meet with the president elect and the president eventually to share their specific experience and knowledge. Members of the form up include steve schwartzman, eric barra, jamie dimond, doug mcmillan, kevin warsh, jack welsh, daniel jurgen. Still sorting through this but a big collection of heavy hitters. It would and certainly, you know, not all that were supporters of his. Clearly the word strategic would be a welcome thing to here. What will we do to attack the economy and not just necessarily go down a punch list of individual employers and try to save a few jobs. Interesting because the Business Roundtable already exists as sort of an outside group for Corporate America to weigh in on policy and then previously president obama had set up sort of niche working groups on cybersecurity, on technology to try and go deep on certain issues. This is a broad brush. Basically, as carl said, some of the heaviest hitters across the fortune 500, but it seems theres no specific agenda other than just economic yeah. One would assume its to try to have some kind of unified voice in terms of just exactly lets try to midwife the way this economy is transitioning in various ways, in longterm ways, shortterm ways. Which brings us to carrier. Well talk more about it in a moment. But obviously the president elect saying there will be consequences for companies that want to move offshore. The journal oped getting widely read today, arguing that job security depends on profits, may be moving jobs back home isnt necessarily accretive to eps. Time will tell. Broader point that its unprecedented intervention in private enterprise from the white house. Thats the take among some. No doubt. And i guess you could probably step back and say, well, look, this is a very special case. You had the governor, whos the Vice President elect, and all these things had to fall into place to have this kind of an effort. But i dont think you want to have an outside focus on this relatively small and narrow segment of the economy. Its probably not a winning approach very long term. Right. Of course you probably know by now the president elect is striking that deal with carrier to keep more than 1,000 manufacturing jobs stateside. He was in indiana yesterday. Heres what he had to say about the plant in mexico. I think its hard to negotiate when the plant is built. The plant is almost built. Right . I said, greg, i dont care. It doesnt make any difference. Dont worry about it. What are we going to do with the plant . Rent it. Sell it. Lock it down. I dont care. But theyre going to do fine with it. I dont know if theyre going to be able to do it with an american company, but what about reaction south of the border . Our michelle ka carusocabrera in monterrey with more. Were in front of a carrier plant, not the carrier plant that donald trump was talking about. This is one of the older ones, one of four that they have here. We did see the newer plant, couldnt get into that one. Thats why were here, by the way, because we can stand on the street. You can actually see the building. The new plant is in a massive Industrial Park that the landscape here, wherever you drive around, theres 130 of them, and go through any of them and youll see all kinds of american names, rieder, owens corning, international paper, caterpillar. We saw those names within 30 seconds of driving around one of these industrial plants. Theyre extremely common. Why . This area has been working on attracting american businesses and industrial plants to this area. I spoke with the local official, the secretary of development in charge of trying to get companies to come here. He says how does he do it . First of all, he says, look, we have plenty of land here so Land Acquisition is cheap. After that, what we already know about the lowcost labor, he says a Regulatory Environment that they try to make as easy as possible. Certainty of law. And then many more freetrade agreement s so if you produce here and export somewhere else its actually much cheaper than producing in the United States because there are fewer tariffs. He says that he hopes that the companies that hes working with will stay here even if donald trump pressures them to go. We dont want that the investors money will be wasted. We dont want that they go away from our city. Reporter theres been a lot of criticism from government officials about this idea of politically directed capital, something that used to happen here but theyre trying to get away from. G guys, back to you. Excellent point, michelle. Thank you so much. Of course trumps carrier deal draws the spotlight on the relationship between government and business. Weighing in on that this morning, the road ahead for business and the trump administration, joined by fred haas, former ceo at scheringplough and pharmacia. Bill george is former ceo of medtronics, sits on the boards of goldman sachs. Good to have you both. Politically directed capital, fred. Is that the environment were now in . And how are ceos supposed to adjust . Thats the reality. In fact, when somebody in ireland or in mexico wants your plant, they try to do it through various incentives. I think the president elect is saying lets be competitive, try to keep the jobs here. I think it does make a lot of sense because weve seen a hollowing out of manufacturing jobs over the last several decades and thats a pity because if manufacturing gets separated from r d, then the incremental innovation opportunity starts to disappear. In the case of carrier, this was one of the First Companies in the world to come up with the innovation of air conditioning, and now if youve got manufacturing somewhere else and r d here, youre not going to get the easy improvements in air conditioning, whether its a quieter air conditioner or a better air conditioner. Im a big believer that manufacturing should be very close to r d. Bill, the reason why the carrier deals and last week a plan for ford to keep lincoln production in louisville, kentucky, happened is because those jobs hadnt been moved yet. You are a company thats executed certain agreements with unions, moved overseas, built the plants, is there anything you can do or you just sit and watch this all unfold . Well, i think bill. Bill george. Go ahead, bill. I dont think youre going to see any ceos that i know bringing plants back to the u. S. And lets remember that were talking about only 40 of the 2,100 jobs that are going to stay in indianapolis. The other 1,300 are going. I think freds right about innovation. My concern is that i think theres a signal move on trumps part, he had to do it. United technologies had no choice given their defense contracteds but to go along with them and make concession. Forget about the 7 million over ten years from indiana. Thats a very small amount. In the long run theyll have to be competitive and im not sure theyre going to stay competitive unless they have two choices. They have to automate that facility or move the work overseas, and i think theyre going to have to automate it very heavily and i think thatll mean fewer jobs or maybe more technici technicians, more highergrade jobs. We need to upgrade our workforce so we can have workers that are fully qualified for those highskilled jobs like you have in freds pharmaceutical industry. Thats not what you need to have. And i think thats the future of the country is to get a better Education System for skilled jobs, not just people that can do 2. 50 an hour job and get paid 25. Thats not an economic move for the long term. I completely agree with you, bill. Yeah. Go ahead. Go ahead, fred. Ifls going to say, this focus on manufacturing jobs, is it really important that they be manufacturing jobs . In other words, why is a job on an Assembly Line privileged over lets say somebody who installs, you know, Cable Systems or somebody who drives a u. P. S. Truck, other jobs that are semiskilled. Why are we having this nostalgia kick on midwestern Assembly Line jobs . I do agree with bill in light of the political circumstances right now the focus is on manufacturing jobe jobs but they have to be all kinds of jobs. The reality is our middle class has not really seen a raise in the last 15 years. We have to do something different. We cant go on decade after decade with our middle class not getting a raise. And the best way to do that is to reskill the jobs so that we can create more productivity, more value per worker. Fred, really quick thats the future right there that fred just laid out. Thats the only future for america. Its not trying to compete low end with china. By the way, the service jobs, those jobs, you cant go from making 50,000 a year to making 20,000 a year at mcdonalds. Those will be automated out too. In the future, youll come in, put your order in on an ipad and pick it up at the end of the Assembly Line. You wont have all these workers. That will be cut way back. Im very encouraged by the announcement we just heard about the Strategic Advisory board. I know all of these people. These are the right people to be talking to the president elect. Im even impressed he wants to bring them in. They will give him very sound advice. Barra will advise him on what you have to do to build the Chinese Market in addition to competing in the u. S. Market. Im encouraged. Definitely got our attention. Fred, you know time warner well, on the board. Yes. Trump during the Campaign Said the dwight tiendalte at t will not approve. Today the team saz hearing aid the company dont worry about that. Whats true and whats the larger lesson for those in the midst of big m a . There is a lot of change going on. The speed of digital. Mover into millions of homes. On the other hand, theres a content company and content is king. If youre in the distribution business, your best way to add value is to marry up with content and thats what at t did in this case. As far as blowing up this deal, we will see how things develop. However, these are separate businesses that are coming together. They are not horizontal businesses that are coming together. Bill, we have seen i think that points well taken. Its not a monopolization move. We have een is a move from the president elect, actions have spoken louder than word. A lot of things he said on the campaign trail he has said he wont actually act on. Do you think the time warner at t deal is one he will not act on, that he was just saying that . Well, the Justice Department has to take a look at this. Theyll have to examine competition and whether customers or consumers get hurt or not. As i said, one is a distribution company, the other is a content company. So itll be not that easy for a case to be made that consumers are going to get hurt. These are two separate businesses coming together. Finally, bill, ive got to ask you about some of these reports were getting that tillerson and raymond are being looked at for state. Youve worked with them both of course on the exxon board. Thoughts about that . Wow, that would be a powerful move, ill tell you, for lees up there in years but rex is a fantastic person, just in the mid 60s. That would be a powerful move to have someone of that kind of insight. Hes been all over the world, knows everyone in the world, and has shown himself to be an extraordinarily effective person. By the way, i think the leadership moves and people hes asking and talking to, the Business Community is generally encouraged by the fact hes making some moves. I know elaine chao is going to transportation. Gives him a link to mitch mcconnell. People are wondering about tom price but gives him a link back to the house. Hes making some very interesting moves and i think a lot of its wait and see. But i think most Business People i know and ceos are willing to give him a chance right now. And hope we can keep that economy going. Im glad to see employment down to 4. 6 . We are in the midst of a sea change, gentlemen. We always appreciate you helping us work our way through it. Fred, bill, good to see you. Good weekend. Fred mas san and bill george. Thank you. When we come back, why Silicon Valley is paying close attention to trumps pick for defense. And why facebook users say people should not be afraid of its plans to use a. I. To weed out fake news. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. At cabinet appointment for team trump, james mt. Mad dog mattis to become secretary of defense. We are going to appoint mad dog mattis as our secretary of defense. But were not announcing it to monday so dont tell anybody. Mad dog. Hes great. He is great. Silicon valley going to pay close attention to that one, the appointment of mattis. Of course he serves on a board of thereanos. Kara swisher joins us at post 9. How you doing . How important is his relationship to that company . Hes on the board of a company accuse of bad things. Theres a lot of people, kissinger and shults and others. Its not great to be on that board. At this point with the amazing reporting of the wall street journal, really problematic company and more to come. Theres lawsuits, all kinds of things he could get dragged into. Walgreens or one of them is suing them, all kinds of allegations of fraud and things. The company was that they cobbled together a board with a lot of diplomatic expertise but with no medical expertise. None. It was a board that was totally incompetent. I dont know how else to put it. Theres a lot of incompetent boards but this one takes the cake. Why was he on the board in the first place . Its the most unusual board in Silicon Valley. What is kissinger and all the others doing . You have to wonder what was happening there and of course maybe they were selected for that reason because nobody had the lights on or anything. Their should be questions around it because everybody skates over it but its a problematic situation and if theres more lawsuits well see. The storys not over. No. Its hard to imagine it being as important as his experience at Central Command or hawkishness versus iran. Its a question of judgment. Someone on this board, highprofile, highprofile issues, subject of a lot of inquiries. I dont know, you know, culpability of boards, but its definitely everyone on that board is also responsible for whats been happening there. Of Course Congress will take that up during the confirmation hearings next year. This morning, kara, we got news that the president elect was putting together what hes calling a strategic and policy forum and on that forum he has had a spate of ceos basically volunteering to give him advice. Hes seeking feedback from a multitude of industries. What do you think the message will be . I dont know. It depends. Everybody has different opinions about where we should go. I think its more im sorry, i think its just am i allowed to say the word . I think it is, but its one of these things you put together all these august groups of people and they advise and nothing happens. I think what will be more important is like the transportation secretary, elaine chao, thats a critical appointment because of drones, about selfdriving cars, around regulations of that. That particular perp. Education secretary. What are we going to do to educate our public for the new jobs that are coming . And also when a. I. Takes over jobs, how do we retrain our population . Those are the more critical appointments as far as im concerned. These boards of strategic command, i dont know. It feels i dont know. Better than a alternative, i suppose, having no input from business . I guess. Okay. Sure. Glass half full. I dont know. Its like what are they going to do, all get together and meet and say something. Youve seen this a million times. Yes, we have. I would like to see some Serious Technology people involved, some Serious Technology people, and, you know, some of the statements trump hatz made about tech are ina inane. A year ago he said we have to close up the internet and let bill gates do it, which is just shows a startling lack of that was one year ago of information about the internet. And so id like to see some significant Technology People around, but i dont know if theyll participate. Thatll be an interesting thing. It does bring us to facebook. Continuing to develop a strategy to fight fake news on the social network. One possibility of course is using a. I. Hat a recent round taibl the head of a. I. Research said the technology could be used to take down fake news, detect violence on live videos, this isnt magic. This isnt terminator either. This is Real Technology that could be useful. The key they say is using the technology responsibly. How much is an empty promise . They can do it. I put a tweet up last weekend saying if theyre always so smart 364 days a year and when somethings really problematic, they cant do it, oh, its super hard. I was joking about it but i got a lot of responses from technologi technologists. Its a very hard problem. False positives, all kinds of things and whether facebook or twitter or any of these people should be deciding what is news. Tame, they pretend theyre not media companies. They are creating problems and making money off it. They have to think hard about the Technological Solutions to deal with it. They can deal with child pornography and all kinds of things in their advertising and fraud. They should be able to do this but its a little more problematic because of issues around censorship, all kinds of things, but some of the stuff is dead obvious. Call me a skeptic, but if you rely on technology, algorithms and a. I. To solve this problem you also get plausible deniability when something gois wro goes wrong. Absolutely. Google did this with the panda update, killed off a lot of companies who had crappy news and elevated the good news. I think the question is can the people who have good news, accurate news be elevated compared to some of this other stuff. You know, it shows how easy it is to game all these systems and thats the issue. The other issue is people want to read this stuff and thats hard to deal with. People want to read the things they believe. So theres some wacky story, i think one about Michelle Obama kicking Hillary Clinton off twitter. My mother called me, like, did you see Michelle Obama and i was like, its untrue. Prove it. I was like, its not true. You spend all this time, like, prove it. Factual world. Yeah. And when the president elect tweets things that are not so true, you know, i dont know how else to put it, some of the stuff around the New York Times and stuff like that, what do you do . What do you do . Its my opinion. Okay. Like its really hard to get a Technology Solution for people being obtuse. I dont know you know what i mean . I just dont know. Well see you next week. Yes. Absolutely. Great to see you as always. Thanks a lot. Kara swisher. When we come back, first it was brexit. Now investors eyes are on italy this weekend as the country prepares for an historic referendum. A live report from rome up next. Counting down to the close in the uk and across europe. This weekend all eyes will be on italy and the countrys historic referendum. Our Julia Chatterly is live with details on that. Hi again, julia. Hey, again. Youre United States quite right, european stock markets ending the session pretty much flat after carrying earlier losses. I think its clear investors are cautious ahead of the vote this weekend in italy. Let me briefly explain again what this vote is. Its a referendum on constitutional reform. Its basically about reducing the power of the upper house here, reducing the number of senators, concentrating power in rome. But its become way bigger than that. Why . Because the Prime Minister here, matteo renzi, offered to resign if the no vote wins and thats now what the markets pricing, a novote win, renzi then resigns, and its already had a huge impact on the bank stocks in italy so far this year. Let me give you a look at that index. Its down 50 already. And if we get a novote win on sunday as predicted i think we could see further pressure on some of these banks across both italy and europe, ultimately if that no vote wins. But, guys, as i say, dont just look at italy, look at the other european banks, too, because this is just one of many votes set to follow across europe in the coming months. Weve got the austrians going to the polls this weekend. Weve got the french vote next year. Weve got the germans voting next year too. And for all of these guys, populism and protests are likely to play a pretty critical role. Guys . We cannot wait to see what happens this weekend, julia. Thank you very much. Julia chatterley with maybe the leicester shot of the year in rome. When we come back, the relationship between government and business taking new shape under president elect trump. Tennessee congresswoman Marsha Blackburn is next with what it could mean for jobs in her state. Meanwhile, a busy morning for Rick Santelli. What are you watching, rick . You know, of course im watching interest rates. Theyve come way down since the number. But theyre still higher than they have been. Were going to talk about the reasons. Were also going to talk a bit about how globalization is a lot like a broiling frog. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Good morning once again, everybody. Im sue herera. Heres your cnbc news update this hour. Michigans attorney general has filed a lawsuit to halt the green partys requested recount of the president ial contest in that state saying the effort would be too expensive and he criticized green Party President ial nominee jill stein for what he called an inexcusable request. Florida governor rick scott says the state has cleared the little river area in northern miami beach of local zika transmission. But officials still believe the southern part of miami beach is still affected by active zika transmissions. Ford is recalling more than 680,000 midsized sedans in north america because the front seat belts may not hold people in a crash. The recall covers 2013 to 2016 ford fusions, 2013 to 2015 lincoln mkzs, and 2015 to 2016 ford cars. Theyre also listed on the ford website. The nations largest mall is hosting its first ever black santa claus this weekend. The star tribune reporting the mall of america in suburban minneapolis has hired Larry Jefferson to play kriss kringle as part of its santa experience. You are up to date. Thats the news update this hour. Back downtown to squawk alley. Carl, have a great weekend. Same to you, sue. On the heels of president elect trumps agreement with carrier, eamon javers is looking at how the Incoming Administration will interact with businesses, a theme weve been following all morning long. Hey, eamon. Reporter thats right, carl. Just getting news within the past couple minutes that the trump transition is creating an outside Business AdvisoryGroup Calling it the president s strategic and policy forum to advise the president elect and the president once he takes the white house on business issues. Its all about creating jobs. They say this organization will have its first meeting at the white house in the first week of february. A lot of the names on this outside council will be very familiar to cnbc viewers. These are some of the biggest names in business who will be advising donald trump including Steven Schwartzman of blackstone, paul adkins of potomac global partners, somebody people kept their eye on as an s. E. C. Appointee, jamie diamond, barra, bob iger of walt disney company, doug mcmillan, the president and ceo of walmart, also on here, ginny romedy, the chairman, president , and ceo of ibm, of course jack wel welch, the former chairman and ceo of general electric. All those folks who will be advising donald trump on how to create jobs going toward. Thats a new development. One of the things to watch for as that group meets with donald trump is the relationship now that we see evolving between this Incoming White House and business executives. You saw this in play yesterday in indiana at the carrier plant where donald trump announced that 1,100 jobs would be saved. Look at this interplay, though, between donald trump and the ceo of United Technologies, the Parent Company of carrier. That personal interplay is something that a lot of ceos will be watching and paying attention to. Take a look at this. Hes a ruthless boss. Hes ruthless. I said, say that number. He said 16 million. Well, the minimum is 16 million. It will be in mim a lot more than that. He said, well, id rather say the lower numbers, but theyre going to spend more than 16 million. Theyre going to spend a lot of money on the plant. You know the plant is almost built, right . I said, greg, i dont care. It doesnt make any difference. Dont worry about it. A little bit of a teasing relationship you might say between donald trump and the ceo there. A lot of other ceos around the country will be watching that to see how they should expect to be treated by this new white house, particularly if they run afoul of donald trump on issues like outscattered showers sourcing of job toss mexico. Thats something a lot of people will be paying attention to, carl. Talk about getting your hands dirty, it will be fascinating to watch, eamon. Well talk with Marsha Blackburn, a member of trumps transition team. Well get her fn on carrier, cabinet picks and more. Dows down five. Investors digesting this mornings jobs number. The final number before the feds meeting later this month. Lets get to the cme group and check in with Rick Santelli and get the santelli exchange. Rick . Thanks, carl. You know, todays number we had ed lazear on and he went through all the internals pretty good. Nothing to shout home about. Very compressed, these numbers are always close to expectations as of late. If you look at the response in the market on a twoday chart for tenyear yields, youll see weve definitely given up a lot of ground, although since we closed around 235, 236 last week. As i look at the board and see 238, almost 239d, what we gave way on the expectations of a whisper number higher than expected with internals better than expected especially wages, what we still end up with is referendum this weekend, ecb meeting next, markets starting to delink in terms of both policy and direction, and those will be upon us far while, especially when we consider the notion that will ultimately the u. S. Is going against the grain and all markets are so highly correlated. Very quickly, you know, i was trying to place a bit of a word and head game with ed lazear regarding things like tariffs. Im not saying these are good policie policies. Im not saying theyre bad policies. We take so many things for granted as set in stone. A simple analogy. If the u. S. Economy is this car and we measure the speed, the car doesnt need to be running. If i put some sugar in the gas tank, i guarantee it wont run. Its still going to go down this hill until it gets to a point where theres no more gravity to help it. Im not sure where were at on the hill, but i know that sometimes policy like sugar in the tank gives you inaccurate measurements. It might be speeding up or slowing down because the slope of this analogy is the u. S. Economy. And its higher than any other economy. Doesnt mean the medicine and the policy has given us the intended consequences. It just might be gravity. And finally, everyday low prices are like boiling frogs because if you look at who grows the most in a large global economy, its your large corporations. But the middle class for those low prices, theyre the frogs because ultimately all the jobs that theyre not going to be able to qualify for, theyve gone overseas, are gone. So maybe if you put tariffs you would reverse that. Who would suffer . Who would gain . Listen, you need to kick the tires on it because if Milton Freedman is right and you raise tariffs 20 , theoretically inflation shouldnt go up at all, should it . Because its not a monetary phenomenon. But as ed lazear pointed out, it probably would. Thats probably the first time the broiling frog analogy has been used to describe Corporate America but perhaps, rick, not the last. Appreciate it. Rick santelli in chicago. When we come back, why United Technologies may only be the first u. S. Company to bend under a President Trump, and why pandora may be open to a deal after all. Stock is um 10 . Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] with these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. 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Then youll love this. Incredible protection in a pad this thin. I didnt think it would work, but it does. Its called always discreet watch this. This super absorbent core turns liquid to gel, for incredible protection thats surprisingly thin. So i know im wearing it, but no one else will. Always discreet for bladder leaks coming up today on the halftime report, a famed wall street investor whos been calling for 20,000 on the dow is doubling down on the trump rally. Youll hear from him. And the risks that could turn that trade upside down and the big names to short on jpmorgans 2017 ideas list. It is all today at the tom of the hour on the halftime report. See you in a few. Thanks, scott. Another story in tech were watching today, david faber reporting earlier this morning that pandora is open to selling itself, according to people familiar with the situation. They have consistently resisted calls from some of its biggest shareholders to consider a sale. One possible suitor in a deal could be sirius xm, though any talks according to fab rer in early stages. Shares are um 10 , sirius shares down 3 . Theres a sense, carl, perhaps the models of those two companies would fot Better Together because of exactly how sirius distributes the content to its users versus perhaps one of the bigger content players swallowing up pandora in a deal. They did change Financial Advisers earlier this year, which was a signal to some on wall street that maybe they were needing a little different advice. Weve gotten inklings on this when weve talked to them in the past. The carrier deal is not just utx. Several other u. S. Companies could find themselves in similar situations when it comes to making the deals with president elect donald trump. Eric has details. Obviously the market has sent Government Contractor stocks soaring on the assumption theyll spend big money. But carriers job to keep deals in the u. S. Rather than send them to mexico has other firms wondering what could be the next targets. Utc earns about 7 million a year from the government. Compare that to general dynamics, northrup, others, make over 10 billion a year. Defense revenues were cut in half and dropped on the list compared to the year before. Because of the sale, utc only gets a meager 12 of their overall corporate rev flew the government. Consider that list from before but rerank it based on how much these companies depend on government revenue. Now youll see the big names get the vast majority of the revenue from the pentagon, many well over 50 . Utc is only 12 . So we went through the track record of these companies and found that many of them have been named in government filings by workers who apply for federal help as a result of their jobs being offshore. The records show boeing, raytheon, and lockheed were frequently named in those filings. Consider that these companies could possibly find themselves with similar scrutiny to carrier parent utc. Firms that are well under the government but also have a track record of moving out jobs. Finally, an index of Government Contractors is actually outperformed the overall market since the election. Investors think a Trump Presidency and a conservative government could mean bigger military spending to come. But contractors may have to play ball to actually get that money. Back to you. That is increasingly going to be part of the game. We will find out. Good stuff. Eric chemi at hq. When we come back, marsha back blurn on everything from Donald Trumps cabinet picks to that deal with carrier, what it means for jobs in her state. Stay tuned. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats 10 times faster than slow internet from the phone company. Say hello to internet speeds up to 150 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. From now on its going to be america first, it okay . America first. Were going to put ourselves first. Our next guest tennessee congresswoman marcia blackburn. Her state is home to 100,000 manufacturing jobs. Is the trump message resonating . Congresswoman, thanks for joining us on the phone today on squawk alley. It is so good to be with you, and, yes, the auto manufacturing jobs, about air conditioning, hva systems that are made in the state. What were hearing from people is they are excited that donald trump is bringing the attention to the American Work force, the American Worker and the strength that they bring to the u. S. Economy. How does that excitement transition into action in the state of tennessee, and what conversations have you had with the governor of the state and with the companies that operate there about keeping those jobs in your state . I have had no conversations with the governor at this point. I have talked with some of the employers that are in our state, and auto manufacturing is prevalent in our state. So are the aftermarket auto parts and the just in time Component Parts that are needed. People feel like this is a very good thing because made in america is going to be important. People feel this is going to be bringing attention to them. Folks that im talking to think this is going to be good for them and good for some of their export markets. If they dont pursue that opportunity, to use your word congresswoman, the president elect has said there would be consequences for those companies. What consequences would you be willing to address with Companies Like general motors, nissan, volkswagen. If they said we need to move jobs outside the country, higher taxes, new tariffs . What would you do . I think at that point what you do gm and nissan both have a presence in my as does toyota, and what you do is sit down and work with those companies and look at it wholistically to. To define that for you at this point would be inappropriate and really at this point irresponsible, but the focus is going to be on americanmade and on the American Work force. You know, take some of the folks that are in my district that work with some of the auto plants. They are pleased that production may go up and may be more consistent instead of running one or two lines, youre running or one or two shifts, youre running three shifts 247. They like the thought of that. They like the sound of that. They like the opportunity of adding production lines and having more models that are being made or more parts that are going to be shipped to, say, a facility in alabama or mississippi or ohio or somewhere and be utilized in production for automobiles or vehicles there. Congresswoman, how common do you think it will be that President Trump is so involved with one companys actions, and what do you say to those who argue it flies in the face of free markets . I look at this with the carrier situation in indiana as what was transpiring there you have Vice President elect pence who was the governor there. It is almost that this is a situation that was evolving, and the jobs loss was taking place, and, of course, that happened during the course of the campaign, and as mr. Trump was visiting the state. I think you have some situations that did come to bear there. Theres been several individuals that i have talked to that have likened it to what happened with reagan and air traffic controllers. That type of situation that the presence of leadership has made a difference. Somebody who is willing to stand up and help defend, if you will, those that were going to face losing their jobs, and i think the presence of mr. Trumps leadership and how he stepped in to this process to say, hey, lets not accept something thats a foregone conclusion. Right. Lets see if theres a way to make this work, and, of course, the state came through. The local government came through. Thats so important. Congresswoman. Unfortunately, were out of time. It has been such a busy news week for the transition team. Yes, it has. We appreciate you joining us this morning. Good to be with you. Thank you. Congresswoman marcia blackburn. When we come back, more details on president elect trumps strategic and policy forum. Which ceos made the cut on this group and which did not . 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Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. President elect donald trump establishing a strategic and policy forum shared by blackstone strooef schwartzman and mary, toby cosgrove, larry fink, bob eiger. One name not on the list is Howard Schultz who announced he was stepping down as ceo of starbucks. He did take the time to chime in on the president elect today. We as Business Leaders can recognize that we can make a difference and not wait for washington. Obviously, the dysfunction and polarization that weve seen for years hopefully is not going to continue, but whats going to be coming out so far is not as encouraging as what we had hoped. Nice exchange between schultz and ken langone this morning, two men who built entire corporate icons on opposite ends of the political spectrum. Having a debate, a civil one, about education. Theres a question about whether starbucks is that was a passion project of schultzs in particular. Yes. Look out for this weekend. Referendum. Well see what we wake up to on monday morning back here. Have a good weekend. Lets get over to headquarters and the half. With why one notable market rally and could bring another 5 gain for stocks in december. With us for the hour today, steven weiss, jim levinthal, John Najarian as well. Also on set is paul richards, the president of medley global advisors. We want to begin with that call. It is by wharton professor jeremy seagall. We welcome him in today. Happy back. Happy to be here. This rally doesnt fee