Week. Road map begins with one month since the election the rally rolls on. Too late to get in, or is dow 20 k around the corner. Plus American Carrier back in the jobs, president elect goes after a union leader in indiana. And plenty of stock movers to get to including lululemon, shares surging on better than expected results. First up, stocks looking to hit more milestones during this trump rally a. Tenpoint gain in the dow would give blue chips new intraday high. Transports coming off their first record high in about two years. And last night on mad money southwests gary kelly told jim the airline has seen stronger business momentum since the election. We strengthened throughout november, had an alltime record weektoweek . Yeah. Absolutely. So linear positive . Especially we could tell after election. So now 46 above the january low, but it wasnt just transports. It was rotation into tech, jim. I wondered what all this means. I know numbers are too low in the airlines, which is amazing because the pricetoearnings multiples are still very, very low. That was the most bullish ive had gary on a bunch of times. This is the most bullish ive ever heard him and thats because the 7 number in november is really interesting. Ive seen time and again people saying the last four weeks of november strongest in a very long time for a lot of industries. Dont forget the rails wont quit. The rails wont quit because we are beginning to recognize that the big utilities will not have to phase out coal plants as quickly as we thought. Especially with the new Energy Protection agency pick yesterday. Scott pruitt. I meant environmental protection. I get that confused. Not Energy Protection. Just catching to see if you were listening. I was out of this ear. I was focused on one other thing. Yeah, theres clearly that pick is going to be very as you say, hes opposed virtually everything the epa has done. True. Now hes going to run it. Lets put numbers on it. What does it mean . Utility stocks, now, we have rates are up today, utility stocks have spent billions retro fitting. And all the coal plants built 40 years ago when jimmy carter said we should be the saudi arabia of coal. This may be the end of the gigantic switch. And thats spending a fortune to try to retro fit and utilities may be able to raise dividends far more than people realize. Im using this because the ramifications of these picks are extraordinary at a time when a gary kelly comes on and says christmas is going to be strong. Whats the old saying . Personnel is policy. In this case its looking i mean, the switch from a lynch to sessions at justice now pruitt at epa, elections have consequences. When you talk about deregulation, i got some numbers today. Associated press had a story about how the dakota delay is costing Energy Transfer partners 83 million a month. Dakota access. Im just saying you change the regulatory people, you change the numbers. And some numbers are going higher. Just like every day you see bank of america up 22, 23 cents before we start trading. The numbers are too low when you see treasuries go when you see prices go down and rates go up. So we are seeing actual earnings per share, you know, being made in front of us. And taken away, by the way, when it comes to drug stocks. And taken away when it comes to the drug stocks. As long as we can go outside and still breathe clean air, that will be fine. Well, i dont know about you, i carry a mask at all times. You do. I do. Weve actually discussed that. Were aware of your surgical mask. What are you just a risk taker . I am. You should see me on my city bike weaving in and out of traffic. I really take risks. Not with my lungs, ill tell you that much. I see there was a fellow bishop on squawk, he delivered big time alpha with Tech Resources reiterated these metal stocks they can go up. There are stocks i can put numbers on and its not just antistink pants and abc pants meanwhile i talk to guys everybodys now getting out of f. A. N. G. Yesterday were Short Covering to a certain extent because we had that rally although facebook, but is that going to continue . Yes. Is this rotation it is really significant, just keep going . We had amazon named pick of the year, we had another firm. Citi takes google as top internet pick. But my problem with these is theyre going to have really good earnings and didnt need trump. Right . No. They were going to have really good earnings. I Want Companies with really good earnings that will be boosted by trump. Okay. So numbers are dwsh the rate of change is going to be much better this little calculus term. But youre abandoning Growth Stocks that have multiples that many would argue are quite reasonab reasonable. Not necessarily netflix but facebook and google certainly, or alphabet. But people dont want tuna and good taste, they want good taste and tuna. Okay. And f. A. N. G. Represents those stocks they know are going to do numbers. I think amazon is a great stock for 2017. I thi i think netflix is going to have a terrific year. By the way the anniversary of the founding of scotch tape. Stock upgraded today over at rbc. Went up 4. So you like sort of the bargain hunting here. I like when i look at kcostc today, okay, costco report inflection quarter. You had to actually be on the Conference Call, but costco has a very big tax rate. Theyre paying a 34 , 35 Corporate Tax. Can you imagine thats a wind at its back. A growth stock that the numbers go up very big in 2017 if you get tax reform versus just typical f. A. N. G. Good numbers. I like facebook, i think its great. Im saying these are being sold. Theyre going to be inexpensive eventually, but i like a company that i can cut numbers i can raise numbers dramatically off of deregulation, off of Corporate Taxes, off of repatriation. I dont really like care for the last quarter of cisco. We had Chuck Robbins on, ceo, but hes got 60 billion overseas, a high Corporate Tax rate. And i see sienna this morning coming out saying orders are better in europe. My thinking is a stock like cisco which is stalled can reignite. As a result of what would be significant buybacks, maybe more capital spending. Yes. And some m a. But thats kind of what makes cisco maybe more attractive my travel trust owns it. We own facebook for the trust. Maybe facebook look, have you noticed facebooks down dramatically from reporting that great quarter . Yes. Thats not idle. Look at Union Pacific how much its up after reporting a bad quarter . I know. But what would you want to own for the next three years . Three years . Yeah, three. Starbucks. Okay. Starbucks. Were going to hear some sound i cannot believe their expansion plan. Howard loeft at the right time. That number they gave last night 12,000. 12,000. And biggest problem is launch. Thats a high quality problem. Thats one of the reasons why Kevin Johnson because he can understand throughput. The Biggest Issue is getting people in and out of the starbucks. Second biggest is how fast they can do roastrie, thats Howard Schultz thing. He used a term yesterday that resonated with me. He said thats the bmw 750 versus bmw 350 line or the jordans, air jordans. So when you get the roasterie going it is going to be additive to earnings. If starbucks has a fiveyear plan, i want to own starbucks. Okay. So here in five years well check it out. Well discuss. That sounds like a fine plan to me. I signed on for that period. Something we didnt know. Didnt realize that was public. Arent you supposed to tell us . Not. Its not. But this is just us talking. Exactly. Its just us. When the show comes on its going to be radical. This is prep. You know, on the today show they do that 6 57 start . Like weve ever prepped for anything. Steve liesman joins us for back at hq taking stock of everything the ecb has said today. The dollar is absolutely ripping higher on this news from the European Central bank. The euro initially spiked against the dollar, and then it came right back down. And i think the overall assessment is that this is a dovish move. There it is. The 100 now back above 100. Just against the euro thats really where the action is obviously back to 1. 06. You can see it falling there after spiking higher than the announceme announcement. What was announced . Let me go through the bullet points. Qe extended to december 15th, that was expected. Second, monthly qe purchase has been reduced or will be reduced in april from 80 billion to 60 billion beginning in april. That will extend through april. Its less qe but for a longer time. Total sum is a bit more. Rules were broadened by purchases for the ecb. Signals if this is wrong, we will do more qe if necessary. Had a big spike in yields in german 10year, italian 10year, stocks initially up and down and up and down and u. S. Stocks eventually went higher. Im making this a dovish call but a little bit when it comes to taper one other amusing aspect to this is draghi says dont call it a taper. Taper wasnt discussed. I dont know. Im not playing that game. Go from 80 to 60 im calling that a taper, carl. People were lamenting back in the tapering tightening. Yeah. Weve been there. See that, weve been there already. One thing, steve, has draghi addressed the notion that europe could benefit from inflation that is state side based . He did not. But he was asked thanks for reminding me, carl, about new policies from the administration. He said these are things that take place over the medium to long term. And he said its too early to assess what impact they will ultimately have. And i think that probably holds true for inflation whether or not theyll be more inflation coming from the u. S. , the ecb, as the fed has said well deal with that when it comes. Carl, you are dead right. Look at the action in these stocks. These companies benefitting from the inflation in the carryover, finally they can refinance. They can issue all the stock they want. Deutsche bank right now i will offer you 25 million shares of i can do 50 million shares of Deutsche Bank and be grabbed up quickly. All those worries about capital, gone. You know what else has gone up . Really . Not to mention all the exporters in europe its time. Im telling you were close to conclusion with monte depashi. Need to raise a lot of capital. Remember the showed you that yes, i do. I know, theres a close similarity. Usually wears a tuxedo too wherever he goes. Wilfred frost is more of a sean connery than yes, he is. President elect wading back into the carrier debate tweeting that chuck jones, president of the local union that represents carrier workers in indiana, quote, has done a terrible job representing workers. No wonder companies flee country, he says. The union replying on twitter, chuck is a hero, not a scapegoat. You and others know about carrier because of his members tireless work since day one to save all jobs there. Chuck jones will join us later this morning on squawk on the street. Another example of you speak out against the president elect, you will get called out publicly. Yeah, you probably have to ask chuck jones about what the absentee rate is on the various i would ask that on the various shifts. Because only reason i say is because when i was up with greg hayes, he said that the mexican absentee rate is about 1 . I asked him why would you want to move jobs to mexico, he said the absentee rate is 1 . That might be an issue. Yeah, turnover. And Something Else has come up in this debate, which is again, numbers are so small when you look at the totality of what were talking about, but within this how many jobs are really being saved . I remember when i was reporting on the story prior to it being made public trying to understand and itd been very difficult to do that. During your interview hayes introduced some ideas of further automation that could lead to job losses. Thank you. See, you just nailed that part of that interview that i thought was really subtle. The absentee and automation were the two big issues because theyre going to have to automate to stay competitive. Which may mean job loss. Look at that whitney factory making the turbo fan, they used to have seven, eight times the number of people working there just a few years ago. Right. Because of automation. Weve made this point many times, you win the battle, lose the war. Automation is going to destroy an awful lot of jobs from here until you pick your date. Its only going to pick up. No, look, this is real. This is real. Its your iphone, its the automation. They have to be competitive. Everyone else is adopting the automation. You know what the only industry doesnt have a lot of automation . Pipelines. Going to be making a lot of pipelines in the country. Need natural gas to go to texas to be able to export it to the rest of the world. Thats probably the biggest job creator in the next five. I hear when it comes to natural gas in texas theres an opportunity in 18 from somewhere closer down there that natural gas is going to be coming. Louisiana and oklahoma. Yeah. We have a deficit of natural gas in texas now because we have to be able to ship it to the rest of the world including mexico, which frankly has done very little to be able to drill. This is the biggest job creator in the world. I shouldnt say that because china has the eighth Army Building bridges. You made news today. You made news that your fiveyear pick at starbucks and pipelines will be the key job creator. Yes, they will, like they were in the 30s. Jim, permian associated Gas Production going from 7 bcp per day today to 12 plus by 2018, 19, isnt that going to replace the northeast and therefore not need those pipelines . No, more shale in utica coming down to reverse pipeline, pennsylvania and ohio, reverse pipeline to make up for the deficit of what sha near is going to be exporting. Also could contribute. Have to reopen eagleford because been a little low in pricing. You have to recognize as much as permians producing, that is not enough to feed the world of natural gas. We are sending it by pipe to mexico and we are exporting it. The biggest actual project in the country other than apple headquarters is to be able to take our natural gas to send around the world. But we need more pipe. We do not have enough pipe coming from the permian, which is by the way the second largest oil and gas field in the world after the saudi field. I rest my case. You get the last word. Absolutely. Prosecution rests. When we come back, a big morning for lulu as the stock surges on earnings today. Also ahead, former dallas fed president Richard Fisher on yellen, trump and whats at stake for the economy. Dows up 18 of 22. And just a few Percentage Points now from 20k. More squawk on the street from post nine in a minute. Alpha seems more elusive today. Is it bee so many go aer it the sameay . Chasing after short te. Instead if getting cahtp with the crowd, the investmentanags at pm take , teaming specialized tive iting th rkmanant rigor, tok ouglobalecialized topportunitie we mtractingy of theion worldleading stors. Thglobal investmt manament sinessesprudential yeah, chevy was great inhat. Who played the wife . Berly dangelo juliette lis costd as theaughter. At inhat. Chris lumbusas the director. Berly dangelo juliette lis itsnarwha reallexist. Inhat. Actual guys, it s e ost of ctmas past. Never sticyour tongue on a frozen flag pole. Yukocorneliu. Die hd is considered a christmas mo thats the unlimited effect. Stream your enteainment with h to at t and have dectv. Lululemon surging in the premarket. The retailer upbeat guidance with higher than expected Gross Margins. Stay tuned for sara eisens exclusive with the ceo. We got a buyback, at least two upgrades on lulu today, jim. Yeah, went from a sell to a buy. I thought the most salient thing other than the fact Gross Margins going up is terrific in different products is shanghai movement. Reminds me of the inflection move from under armour from 2013 they moved aggressively in china and stock doubled. I think people are, quote, a lot short because felt same store sales would be down instead of up. I like this quote from laurent, i think its important to from the athleisure trend and how people want to live their life. I think lulu is a metaphor for hour people want to live their life. Thered been a out of athleisure into denim and its a false premise. What it really is as laurent told me in the interview is its a lifestyle. Lululemon is a lifestyle. And my bill for my wife will prove to you its a lifestyle. In other words, not a fashion trend that changes by season . Exactly. Now, i knew that he had me when he used the term mindfulness. He said its about mindfulness. There was a time when i would have said its about eps. But i am schooled enough by my kids to know mindfulness is millennial and genx eps. Mindfulness, im still grappling with that concept. There are words that come up and youre like i never really heard that before and now everybodys using it. When you meditate youre in the now, david. Okay. You want my chimes meditation or rain meditation . I would like to watch you meditate. I meditate at the maul. I dont believe it happens. I meditate between shopping between stores, except for sears and kmart. Obviously it is a big deal. We havent really mentioned what i call what they call at home depot the donor. Sears is a charity donor. Yeah, were going to get to shld in a few moments. Well get cramers mad dash, one more look at the premarket before we kick off this thursday. More squawk on the street from the nyse straight ahead. Will your business bready when growth prests itsf . Americanxpress open rds can help you ton a n job, or fill a big der expand your office and take on whatever com next. Find outow American Press cards and servic can help prere you for growth at open. Com sometimes the songs crack me up. I dont know about you. We got a mad dash. Its thursday. And you want to talk about scotts miracle grow . The upgrade of the year, happened in the last month of the year. This is a sell to buy upgrade, why at bank of america . Not your dads grass company. What does that mean . They have a division, its like plastics in the graduate, it is a division, david, that allows you to be able to grow cannabis. Its called hydroponics, hydroponics, allow you to grow cannabis. So grass is really grass now. Yeah, they think the Legal Marijuana user base has doubled, the guide is conservative. This is going to be the biggest thing that has ever happened to scotts miracle grow. Read that to me again . Its for hydroponic pot . Hydroponics because thats what you need to grow marijuana, david. So theyre going to give you the soil . Its only right now very small percentage of the business. But i have to tell you when i was out visiting my daughter recently in oregon, she is near the jackson pinot noir fields, legendary, david, they are being plowed under. The grapes are being plowed under for marijuana. I am telling you this is a brilliant upgrade. Sell to buy, everyone must get this. This grass has room to grow. Badumdum. Does anybody call it grass anymore or am i dating myself . I dont know. There are so many names for it. I like the chronic. You know what im going to do with my lawn . What . Im going to lace it with ketamine. Oh, god. Were going to get back to some other stocks when we come back. This car is traveling over 200 miles per hour. To win, every llisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing canhare critical information about every inch of the car from virtually anywhere. Brakes are getting wm. Confirmed, diel you need tocoo. Understood, brake biasack 2 clicic. Giving them the agity to have speed precision. Because no one knows like at t. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in just over a minutes time. Coming off of that rally from yesterday. Biggest since election day. The dow has not had backtoback losses since november 4th. Amazing. Meanwhile, german 10year yield highest since january on this ecb news. China exports were up for the First Time Since march. Yes. A lot going on all around the world. Well, look, i think you got those yields were all very unnaturally low as we talked about it. So theyre kind of coming back to reality. There was a line in the costco Conference Call where the cfo said that post election theres been a big traffic improvement. He said the election week was, it was worse than a snowstorm in terms of nobody wanting to go out and buy stuff. I think this again is the Inflection Point of the election. No one says look, a lot of people are unwilling to say because of trump, but they want to say because its over. I think thats important. Much less political to say its over than because it was trump. Fair point. Lets get to the opening bell here. The s p at the bottom of your screen, at the big board envision Health Carousel bre ceg merger. At the nasdaq, United NationsDevelopment Program celebrating its 50th anniversary. [ bell ringing ] so have you done sienna yet . European order up 20 very good even though the headline number didnt look so hot. What i like about sienna is frankly switching orders, which is what weve been looking for for that whole industry. Those are the big, big orders that used to be the mainstay of what they did. So i regarded that as being very positive. Some people have been upgrading juniper. So i think youve got a little bit of a tech story there that can work, old line tech. Its a compliment western digital, micro and advanced micro which have become the three mus ke ti three musketeers. That picked up steam dramatically after you talked about it in the morning. Its a home run move. Those guys have really reinvented that company. And i think micron is theres finally supply and demand in balan balance. For mu that stock can go much higher. So a couple areas of tech that have been really out of favor coming back in favor. And then youve got the areas of just pure internet that are kind of, you know, i dont know, you know, kind of yawns. So i assume earlier in the week last week you were saying this cannot be all about financials. Thank you. Or energy. Or this is going to be limited. Right. So are you beginning to feel like theyre spreading the wealth in a move that will help the markets longer term . Well, yeah, i think again you mention that you reference the 3m upgrade, like look, business is getting a little better. You can repatriate and cut Corporate Tax on those are what people are now focusing on. Theyre refocusing on what to buy. Yesterday they decided to focus on teleco which was an oddity. Certainly, sprint and tmo benefitted from that visit of masa son to trump tower a couple days back in which he discussed this 100 billion fund raising at softbank and then investing here in the states and people speculating, well, maybe it will mean that his desire to put together sprint and tmo will prove to happen. Wow. I am not youre skeptical . Im somewhat skeptical. Okay. I think that its still hard to imagine four going to three given the competition thats taken place between those four wireless carriers in this country, particularly for a candidate who appealed to populism to say, okay, were going to go 43, your bill may end up going up. But that said, jim, if tmo were to consider doing something with sprint, you have to wonder whether our Parent Company would consider doing something for tmo. Thats a great point. And only you have made it. Because ive read all the research. Thats a very compelling point. Not been included. If you want to speculate on maybe youre better off buying tmo which has been so just on the fundamentals of course so competitive and strong as opposed to buying sprint on the hopes that, you know by the way, its a smaller company. And what would the germans do . So many different things. I think they were concerned when the stock was in the 40s that the comcast Parent Company would buy them. No indication that is the case, but no shortage of speculation on that front either that you are going to see a coming together of wireless and cable as we describe it in a more significant way than these mdnos we talk about where they get to resell and reuse some of the spectrum capacity. Big 2017 story, i think, toward the end of 2016 amazon pushed very aggressively by cowen, stock not up. Google, alphabet, made the switch that was recommended by citi, not up. This is a new world. Those stocks would be gapping up in the previous world. On similar upgrades. Yes. Now its people, look, i get a chance to be able to sell those stocks. That wont last forever because companies will have good quarters. But i come back to caterpillar that said please dont buy our stock, its well ahead. And that was the clarion call to buy. There was a great joke somebody joked on twitter that caterpillars only a few more profit warnings from 100. Come on. Thats essentially whats happened this year. Thats very good. Thats a good routine. When you look at a chart of goldman over one month, or yeartodate, where i know youve said these numbers are too low, we dont understand the eps numbers here given new policy. When do you say enough is enough . I dont know. I thought it could go to 250 at one point. My travel trust owns citi, citi is at ten times earnings. I think you have to start thinking about pricetoearnings multiples. Whats it doing . I forget. It was cross selling. Whos Elizabeth Warren . I dont remember that either. She was in butterfield 8 and national velvet. Got it. Thats a joke. Thats a joke. Did you see here in Butterfield National velvet you knew early on. Still by the way, best selling fragrant in history, diamonds, elizabeth taylor. Really . No kidding. Whatever happened to virginia wolfer . But i do think these are important changes in the market that goldmans got the animal spirits and doesnt have much stock to buy. First National Bank of trump, again bank of america going to 25. And citi is still very undervalued. So i think people should recognize that there are some valuation conundrums in the bank group. Goldman sachs of course best performing stock in the dow. Rather amazing. When it was at 160, 170 reporting that last quarter saying, listen, were trading at discount to book value, so yeah. Goldman, its back, bigger than ever. Golden slacks, david, how do you like that . The teailored man. It is. And financials have proven to be an incredibly lucrative place to be this year. Yes. Much of that in the last four to six weeks. Tradings been great. By the way, if you invested with Warren Buffett this year not doing too badly either, berkshire right at a high, look at the b shares for example. Many of the companies that are part of berkshire, rails and other things that basic industry will benefit. Burlington northern. You hit that trump button yes, right, in mad money . I did that for you. I know. So what does it say . I think we have sound of it. Oh, is that what it sounds like . Its the voice of god. Theyre going to rack it up. Well get to it later. But you took our advice. Tweaked it. I ripped up the sound board, i took off the hog squeal and the star spangled you know, music. And put in trump, no trump. Im not talking about bridge. Lets hear it. This is on mad money last night. According to Time Magazine trump suggested and i quote that some stock analysts may have misread his intentions. The biotechnology stocks. Not a trump stock. Not a trump stock. Not a trump stock. For example, which enjoy large Profit Margins under current law rose 9 in the day after trumps election. See, that is how you stay relevant there, my man. I didnt realize you were going for the full thing. Not a trump stock, not a trump stock. Then i got trump stock, trump stock. So berkshire hathaway. Gtrump stock, trump stock, trump stock. Got it. If companies dont adopt Brent Saunders pledge to raise pricing theyre going to be in the cross hairs. There will be a tweet which says i dont like the way lyrica went up in price, or i dont think the epipen im looking for more epipens. Not a trump stock. Not a trump stock. Not a trump stock. And you dont see that any different than obama calling someone a fat cat banker or demeaning las vegas post crisis, same thing . Yeah, i think so. Las vegas down 40 after that . I think that the American People voted in someone who said that there was 300 billion in drug stock savings now Medicare Program is only 78 billion, i dont know how you save but that could be like the 4 billion air force one. Its the art of the deal. Its your opening statement. Its your opening bid. Its your opening bid, david. Most of the gids u bids on drug stocks are lower this morning again. Well, they dont fit. They havent taken the Brent Saunders pledge. Theyve got to do that. Regeneron said the same thing and theyve invented drugs. They are not salesforces. For those who may not know, what is the Brent Saunders who is the ceo of allergan pledged . No double digit. Just kind of just being what most people would say is reasonable if youre selling tide or proctor for noninnovation, for brand new drugs, yes. But if youre just going to make the same thing over and over again and raise the price, thats strucken have we done sld yet . Oh, yes, sears. Narrower than expected but fifth straight quarter of a loss. Not an Inflection Point there. Comps down 7. 4. No more talk of profitability. I dont know what to say about that one. You know, home appliances, consumer electronics, apparel weak, what else is there . Home appliance is home depot gaining from them according to the fabulous cfo. Sears minus ten. Still talking about monetization, david you know what dies hard . The notion theyre going to monetize die hard. Its like die hard 7, right . Remember . I do. What did we end, four or five . Theres a new one called christmas party, i think thats die hard one thats a sequal. 1. 2 billion market value if that at this point what . Less than 1. 2 billion market value for sears. They have 258 million in cash versus 238 million in cash last year. I was looking for a positive. Heading in i dont know. End game . End game yet . I dont know. I once bought tires at the sears next to the costco in neptune, and the cfo of costco called me and said that was ridiculous that i had done that. So i realized that, you know, you got to be careful if you ever buy sears over costco. Its right near a new 52week low, but not quite. Trump stock, trump stock, trump stock . No, sears is. Is that a trump stock . Oh, no, they dont have a Corporate Tax rate. Right. Because they make no money. Its true. Havent for a decade. Still havent gotten same store sales moving in the up direction. You and i are going to go there and buy some shirts this weekend. Really . Yeah. Maybe they have carhart. They have that in lou cage, one of the best netflix shows ever. I have some time let me know where to meet you. You want to shop . Were going to midtown this weekend. Theres no sears in midtown . Were going to go to tiffany, Harry Winston and sears. Which is better than kmart by the way. Are you going to finally get me that ring . You know, every kiss begins with kmart. Goldman and j. P. Morgan once again leading the dow, record highs on the dow and s p. Lets get to bob pisani. Good morning, carl. We have a mixed open here. About even on the advance decline line. But weve had quite an extension of our rally overseas. Let me show you what happened in asia. Big spillover there, nikkei had a great day. 18,765, thats the highest level since january for the nikkei. Were up about 14 since the quarter began. The yens weakened, dollar strengthened, elections help the nikkei as well. Europe was up even before the draghi announcement. And its extended again, you heard steve telling us qe extended to december, so theyre extending but tapering at the same time. I guess satisfying hawks and doves, but all the european stocks are on the upside. Take a look at the etf sectors here in the United States that are on the upside. Looks to me like its november again. Banks as carl mentioned are the leadership group, but energy and materials is exactly what we saw in november. Theres the pharmaceutical stocks, thats pjp down 0. 8 , second day in a row its been down after trump said he was going to do something about drug prices. Utilities weve seen 10year yields moving on the upside. Many of the utilities and even some of the Telecom Stocks are weak today. Again, looks like november. Jim had a very good point about costco because they saw more shoppers, traffic was up 2. 2 . Thats a really nice move. But take a look a little closer here. Average transactions down 1. 3 . Huh. Comps were only up 1 . So whats happening here is this deflation problem we have been talking about with many other retailers that are out there. So electronics now double digit deflation that were seeing. Were seeing gasoline down. Were seeing food prices down overall. Thats impacting the ability then to increase revenues and the average ticket prices here. So, again, great news, traffic is up for them but that deflation a big issue. Good news for consumers, by the way. So its december 8th, its one month since the election. Hows every done . Take a look at the winners and losers. Weve talked about this often but its worth bearing in mind that the russell 2000 has been the big winner, banks have been a big winner and to a lesser extent industrials and materials have all been big winners in one month after the election. The losers that weve been talking about, well, its the same today. Looks the same. Utilities were down, Consumer Staples had been down notably, golds been a big loser and 10year treasuries, prices im talking about, treasuries, are down 4. 3 overall. Now, a lot of people have been saying, gee, when they open, your quarterly statement at the end of the month assuming prices, everyones going to be happy. Well, it depends on what your mix looks like. Let me show you how etfs breakdown. The largest stock etf out there is the spider. Thats the s p 500. You are now up 3. 8 if you would have bought it on the first of november. However, if you had a significant bond presence, the largest bond etf is the agg, this is a mix of treasuries as well as corporate bonds. So its a mix. Its down 3. 8 . So heres my point, essentially if you had a perfectly divided account, if you had 100,000 on october 1 st you put 50,000 into the spider and 50,000 into the agg, youre essentially flat, including dividends between the two. Be careful here while weve had great moves up in the stock market, weve had similar moves down in the bond market. And if you have a similar portfolio and evenly split portfolio, your gains really arent there for this quarter. Youre going to hear more about this in the next week or two as we get closer to the end of the quarter. Right now the dow up 23 points. Carl, back to you. Bob, thanks so much. Bob pisani. Lets get to Rick Santelli as well at the cme group in chicago. Good morning, rick. Good morning. Lots of volatility. Lets start at the most beneficial sector and in my opinion thats equities. Consider a lot of volatility in fx, no new extremes, lots of volatilities in rates, no new extremes, but if you look oneweek of the dax its been climbing. It started its climb in earnest yesterday. When you consider, open the chart up to early 2014, what youll see is the dax alltime high is in the spring of 2015 at 12,374. Its currently at 11,150. That is a oneyear high. As you look at our record equities, look at the dax making up lots of ground, all the boards throughout europe equities really seem to be the beneficiary. If you look at a european twoyear, yeah, we moved in a way that really is a steepening trade as theyre mostly lower in yield, but really not making any new extremes. You look at a 24hour chart of bunds, the extreme made here takes you back to the highest yields since january of 2016. We are flirting with the high yields in the neighborhood at least of july of 2015. But really it is about equities. If we go back to our twoyear and look at a oneweek chart, we didnt really surmount to huge moves. As a matter of fact, yields are coming off a bit. You could clearly see it in the 10s. So consider this, were currently at 2. 40, we had lots of volatility, high yield close is still 2. 45 on the first of december last week. Now, currencies megavolatility for sure, look at oneweek of the euro versus dollar, first direction versus the uturn which makes sense. If youre looking at a defining route in terms of fowl language, dovish or hawkish, the euro way dollar is trading, euro is trading, its really dovish with some asterisks. Fouryear chart of the euro versus dollar, this is the chart. This is the chart theyre all looking at. And they made some money looking at this chart because if you recall the renzi referendum low was literally right on top of 1. 05. So 1. 05 is what you want to watch. And here we are 1. 065, so, yes, lots of movement. No new extreme. We want to continue to monitor as our central bank is on tap for next week of course. Carl, back to you. Thank you, rick. Rick santelli in chicago. Still to come this morning, united Steel Workers local president chuck jones who had harsh words for president elect trump and his characterization of the carrier deal will join us in the next hour. Got record highs for the dow, for the s p, for the nasdaq. Were back after a break. For decades, investo have a 640 stock and bond model, withittle in alternatives. Yet alternatives can taportunities that traditional assets nt. And even though theyre called alternatives, theyre actually designed to help meet very adional gos. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinarsympms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Or adempas® for pulmonary hyrtension, do not take cial if you take nrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drinklcohol iexcess. To avoid longterm injury, get medical lp right away for an erection lasting more than four hours. To avoid longterm injury, get medical lp right away if you have a sudden decrease or loss of hearing or vision, an allergic reaction, stop taking cialis and get medicahelpight awa ask your doctor about cialis. re droroing in infmation. Where, in l of this, is the stuff that matters . The stakes are so high, your finances, how do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matter you. Morgan stanley. Starbucks hosted its investor day yesterday. And outgoing ceo, incoming executive chairman Howard Schultz joined jim last night where he outlined the companys store expansion, ceo transition and running a company in this new era. What weve tried to demonstrate over many years is that a great Enduring Company must do everything it can to share success and take care of its people and the communities we serve. I think in the world that were living in today theres a greater responsibility on companies to ensure the fact that we balance profit with social impact. And thats the kind of message i would share with the president elect. And i hope that he would share that. A lot of talk about share of gdp going from capital back to labor. Thats all part of that discussion. I know howard would love to sit down and talk about job creation with the president elect because hes created a lot of what i regard as being excellent jobs that give you college degrees. And technology because of whats going on and throughput. And also talked about how hes not really concerned about china because 30,000 people, but more importantly when they go to china they meet with the moms and dads and parents of the people who work at starbucks. Howard thinks thats important. My father worked for the chinese, they respected my father in his early 90, in his 80s selling, respect in this country lets say not thought of as being as productive in their life. Yes. Absolutely. The respect. They love my dad. At 92 my dads big numbers. As we hurdle towards those ages ourselves. Well, lets say we nice to be appreciated for our wisdom. We canter. We dont hurdle. Im hurdling. Im taking my time. Well get stop trading with jim in a moment. Dows up 25. Time for cramer and stop trade sglg theres a stock up 250 just this year alone even more that be last year and this is a company upgraded from sell to buy, love double upgrades on bank of america, why is this . Considered to be the poor mans intel when it comes to pcs and the poor mans nvidia when it comes to great graphics chips and theyre saying this may be more legs than that. This is very important upgrade and i also believe theyve done some great refinancing, the Balance Sheet is much better. If they hadnt i think they would be taken over by now. When will they . I said micron should buy them within the next year. Micron needs that leg of graphic chips. And micron needs to be able to go beyond dram and flash, so, yes. I think in the interim theyre creating a lot of wealth. Were all old enough to remember when they were clearly david to somebody elses goliath. There you go. Stay alive long enough youll get lucky. Thats how it works sometimes. Exact. Whats on mad tonight . I have ellie and two incredible company. Ellie come down because of banking regulation, ollies up on a selloff. An unbelievable guy those remember him from the sell side so to speak recall how great he was and now hes an even better operator. How many of these guys come from the critic side actually turn out to be great operators . And congratulations to bob peck on his new job by the way. Yes. I got to come up with a new name. Im sure hed like the deal king. Yeah. I like that. Jim, well see you tonight. Wow, what a show. Mad money 6 00 p. M. When we come back, more on the trump rally, a month since the election. Plus, the president elect calling him out on twitter, chuck jones of the Steel Workers will join us live to respond when squawk on the street continues. Tell me, how do you like to learn . Songs are my favorite ooh elmo likes songs puzzles me love puzzles. Well. Puzzles are a great memorization too dinosaurs yess puppies ooh i love puppies so do, i. Actually. Pets can teach important lessons abou dancing elmo loves to dance. Okay then, lets dance. everybody cheers yeah baby is happening before our es. Shift in Human History siy to seventy Million People are moving to cities every year. At pgim we help vestors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the globalnvestment management businesses of prudential. Good thursday morning. Welcome back to squawk on the street. Im Carl Quintanilla with sara eisen, david faber at the new york stock exchange. Record highs once again for the dow, the s p and the nasdaq. Although all three have just dipped modestly into the red a few moments ago. Financials are leading, s p and nasdaq are working on their fifth straight gain. That would be the first since july. Our road map begins with that trump rally. Stocks settling in here at record highs. Well discuss how high this market can actually go and more with former dallas fed president Richard Fisher. Carriers Union President chuck jones says president elect trump exaggerated the number of jobs he saved at carrier. Trump going after him on twitter after those accusations. Chuck jones will join us. Plus, lululemon soaring on its earnings beat. The company also announcing a 100 million stock buyback. How the ceo described the quarter coming up. First up, lets get to john harwood outside trump tower to talk more about the latest on the transition and this twitter fight with carriers Union President chuck jones. Good morning, john. Reporter good morning, carl. The president elect continues to fill out his cabinet yesterday for the environmental Protection Agency he selected scott pruitt, the Oklahoma Attorney general close to the oil and gas industry, skeptic of Climate Change science. For the Small Business administration he picked his longtime friend and wrestling executive, linda mcmahon, former republican candidate for the u. S. Senate in the state of connecticut. But the most notable thing that donald trump did last night was continue his practice of using twitter as a weapon, this time targeting chuck jones, the local union leader in indiana who had questioned the extent and the impact of the carrier deal donald trump said, as you indicated earlier, he said that donald trump had exaggerated the number of jobs saved. Now, this is consistent with what donald trump did earlier in the week with boeing going after them after their chief executive had expressed doubts about Donald Trumps trade policies. Now, so far if you look at the Public Opinion polls, the public is liking what donald trump is doing. He is trending up. He now has a favorable rating that exceeds his unfavorable rating. That was not the case for most of the year. Look at these numbers from the Huffington Post averages, 49 to 46 in positive territory for donald trump. But there are some conservative voices beginning to raise questions about the way donald trump is approaching the practice of singling out individual companies and trying to get specific results from them, interfering with the market, george will, the conservative columnist wrote in the Washington Post today that this was the opposite of conservatism. Well see whether he gets resistance from republicans in congress. He has not so far. And one postscript on the cabinet discussion, we do expect secretary of state choice next week. When i asked this morning a senior trump advisor whether or not mitt romney was the leading candidate as some have indicated for this post, i got a simple oneword answer, no. We will find out the choice next week, guys. John harwood, thank you very much for that. Outside trump tower. As we mentioned well be joined by the president of united steelworkers local 1999, chuck jones, in just a few moments. First up, the trump rally continuing. The markets as you saw coming off record highs a few moments ago all ahead of next weeks fed meeting. Getting more conversation joining us this morning Richard Fisher the former dallas fed president. Always good to see you. Welcome to post nine. Thank you. Thanks for joining us. We know what the president elect has done for equities and Inflation Expectations and bondholde bondholders, but are you seeing big changes in the macro forecast . No. We refer to black swans, i refer and my friends refer to donald trump as the orange swan. Obviously based on his hair color. Yes. Its kind of interesting because we had rates move up, you would expect a negative reaction in the equity markets. Its based on expectations. The business communitys excited for a couple reasons. One is tax reforms a real possibility. And the other very importantly is deregulation. Not just dodd frank but everything across the board. You unshackle businesses, theres an expectation theyll be able to grow their top lines and not just be able to maneuver their bottom lines as they have for the longest time. So i think this is what we have. We have an orange swan effect. And well have to see. Now, when Ronald Reagan was elected between the time he was elected and time he took office, the s p 500 was up 8. 5 . After he took office for one year we had a selloff of 20 . So the expectations, you know, it takes awhile for things to kick in. Uhhuh. Well see if this happens here. But for business, you know, if wed had president clinton, it would have been more of the same. And thats what i think im hearing when i speak to ceos around the country. You cited the reagan rally, but the difference there is that rates became lower throughout the reagan tenure. Yeah, but remember they were rising for awhile. And volcker had to slam on the brakes. Thats right. But the backdrop is totally different. Were going into potentially the first rate hike of the year next week. Yeah. And a period of sustained Interest Rate increases. And i wonder if that kind of fed policy, higher rates, higher treasury yields is going to get in the way of this enthusiasm. The markets well discounted the first rate increase. I think my personal view is way behind the curve. We need several to catch up. But what really counts is what they do with the system open portfolio. Theres 1. 1 trillion in rollovers occurring between now and 2019. That will help shape the yield curve. Its a powerful tool. I dont think people are paying enough attention to that. We had Larry Lindsey on this morning, he said were drawing fuel on a fully employed economy, viewers wrote in saying what are you talking about . Is he right or wrong . In the key demographic which is 25 to 54, which im not a part of, im too old, but were pretty much fully employed. And where were not employed, youll notice whether its the Small Business group or large businesses, im on the board of say at t, theres a shortage. Its hard to find people with a skill sets that you need. So i would argue that we are if not fully employed certainly very, very close. But we live in a globalized world. And now of course with this we dont know whats going to happen in terms of our interaction with the rest of the world under a new president , but domestically i would say we are fully employed. So does that complicate efforts to bring manufacturing home at scale or do infrastructure at scale if labors so hard to find . Yeah. First lets put manufacturing in perspective. Its only 12 of our economy. And the majority what we manufacture is exported. So a lot of this is, you know, you have to be careful. You dont want to cut off your nose to spite your face. Manufacturing is very important to the United States, but only about 12 to 14 of our economy. The rest is service driven. Remember also we consume more than we produce. Which means we have to import. So given you laid out all the bullish cases for why the market is rallying, how do you expect us to finally break out of this sort of start, stop, lumpy, economic recovery that cant get above 2 . I think its very possible because otherwise we have secular stagnation, but think of this as a businessman operating. You take off the shackles of regulation, you create a tax reform that if its properly done incents you to expand your cap x to grow your employment base, to basically increase volume. Thats what this is all about. And then i can see us if we do it properly, if they do it properly, having some escape philosophy from this secular stagnation so many people have talked about so long. And theyre trying to bump it up to 4 . Whether this is doable or not, but certainly you could do it better than we have because i can tell you a small, big, large, public, private, businesses feel that they have been hampered and hemmed in by regulation and poor fiscal policy. We dont even know what taxes will be in 2017. Right. Speaking of regulation just having a fiscal policy would be nice. Thats true. Many people i think are perhaps not even as focused as they should be on the changes that will take place in the tax code and how thats going to be so important. This is our first chance for tax reform since Ronald Reagan. Since 86. When it comes to being a board member of the at t and as you refer to him as the orange swan. Right. During the campaign he of course came out against the deal to buy time warner. Yesterday the ceos were in front of the senate. What are your expectations there good try. Ill let Randall Stephenson speak for the company. I dont think its appropriate for me to everybody seems to be more optimistic though. And not really expecting anything thats going to come from those comments that took place previously. Well, again, were in the middle of something. I dont think its right for a board member to comment on it and randall speaks for all of us. Got it. But very good try, my friend. Well, i have to try, richard. People have different views about how to discount trumps tweets. Some call it white noise. Some say in the absence of press conferences its all the media has to go on. Should a yellen or any fed official worry about being called out by the president on twitter . I think two things. First, every president ive worked for two, they all want to go to the public directly. Roosevelt started with the radio. This man has mastered the new media, face it, thats the fact. Secondly, my interpretation for what its worth is while hes bringing about these appointments hes made and trying to figure out how to govern and move in the right direction, he has to feed red meat to his constituency. And to me thats what these twitters are. Meanwhile, i know theyre taking this very seriously. He wants to be a successful president. Its going to require some moderation. But i think to carls question, a deeper one is that is the fed independence and credibility at risk under this new administration . Hell have the chance to appoint six new governors over the next four years. There are two vacancies and then you have braynard for writing checks to the wrong candidate, viewed as being heavily partisan and wanting to move and then you have stan fischer coming up, six to ten hell have a chance to appoint, that maybe will influence fed policy, but i hope he realizes its important to keep central bank independence. Remember, the Congress Left and right, Bernie Sanders to the congressman from east texas wanted to take away our independence and the fed, et cetera, they cant even get a budget together. How do you expect them to manage Monetary Policy . It would be a disaster. No more gridlock now maybe. Yeah, i know. Its very important that we all know this to have an independent central bank no matter what country you are from. Richard, its good to have you back. Thank you for coming on. Thank you for having me. Richard fisher, former dallas fed. One of the stocks on the move today, lululemon, shares are soaring right now. Beating on both the top and bottom lines. The company also boosted its outlook and announced a 100 million stock buyback program. Look at shares up 18 . Some of the highlights in this report 7 Comp Store Sales growth, 51 plus margins and a forecast of mid single digit comp growth. That was all above wall streets expectations. I did speak exclusively last night with lululemons ceo, laurent, he told me it was, quote, our merchandising and assortment that drove the better sales growth in the quarter. He gave a shoutout to 20 sales growth in bras as a category. Mens is also apparently working quite well. As for how the growth is set to continue here, potdevin said the holiday looked absolutely strong. Record days for black friday where lulu saw 16 comps and 29 on cyber monday. He cited three major strategic goals going forward, growing internationally, growing the mens business and growing digitally. On that Global Growth he is inching high right now. He mentioned they had 10,000 orders from china on singles day alone. He said the biggest opportunitys right now in front of them shortterm its accessories, but he says youll see faster growth with mens and part of it is the success of those mens pants. As for the peak athleisure which you see reflected in stocks like nike and under armour so far this year, potdevin says lifestyle is not going anywhere. This idea of healthier living and wearing more athletic clothes and if you look at the chart, say lululemon versus nike or adidas or under armour, it sort of says it all, guys. The quote that potdevin said was, fashion brands dont have the athletic mindset. Athletic brands dont have the fashion mindset. Our styles are the intersection of both. And they are resonating. And if you think of that, it seems like the consumer while this athletic athleisure trend is still going on wants more of a fashion take on it and thats why youve seen the rise of adidas capturing the number two spot back in the United States and strong sales at lululemon last week. Yeah, cramer obviously agreed this morning when he said its not a seasonal trend. Its not about spring or fall. It is a different way of thinking about apparel. And thats whats leading a lot of this. By the way fascinating to see evercore go from a sell all the way to a buy. The sell side was a big part of this story. They were all negative, stock had been crushed more than 25 since the lags quarter. In august they were down beat. A retail expert contributor on twitter saying they were part of the problem here. They all were downgrading into this quarter and, bam, you saw that surprise. And thats why youre seeing such a big reaction. When we come back this morning, drama in the twittersphere as united steelworkers president chuck jones accuses the president elect of exaggerating the number of jobs he saved in that carrier deal. Jones is going to join us next as we go to break take a look at the top s p gainers since election day. A lot more still ahead. Dont go away. Maryuys a little lamb. One ofilons of ordon this companys servers. Accessible by thsand of spliersnd eloyeglobally but wi Cyber Threats of spliersnd eloyeglobally on the rise, marys data could be under attack. With the help of at t, of spliersnd eloyeglobally on the rise, and curity tt senses and mitigas Cyber Threats, their itical data safer giving tm the agility to be open secure. Cause one knows like at t. Oh heyso we can share r coamazing trading knowledge. Thats are idea, but why donyou just go to where you n are stratees, ids,ven acal tradesoms wi market professionals and thousands of other trars . I know. Ur brain told my brain before you tolmy face. Mm blueberry . Tap in thenowledgef other trs. Generosity is its oyou can handle being a mom for half an hour. Im in all the way. Is that understood . I dont know what shes up to, but its not good. Cant the world be my noodles and butter . Get your mind out of the gutter. Mornings are for coffee and contemplation. That was a really profound observation. You got a mean case of the detox blues. Dont start a war you know youre going to lose. Finally you can now find all of netflix in the same place as all your other entertainment. On xfinity x1. Donald trump taking to twitter again last night, this time to criticize the local union which represents workers at carrier in indiana. The president elect saying chuck jones, president of united steelworkers 1999 has done a terrible job representing workers. No wonder companies flee country. The National Union responded on twitter saying chuck is a hero, not a scapegoat. You and others know about carrier because of his members tireless work since day one to save all jobs there. Chuck jones joins us this morning on the phone. Again, his union represents workers at both the carrier and rexnord plants in indiana. Mr. Jones, great to have you with us. Thanks for your time. Thank you very much for having me. You regret criticizing trump publicly . No, not at all. What i did was trying to get the people to understand that the numbers mr. Trump and governor pence gave werent accurate. And some of the statements that he made werent accurate and i stand behind all of them. Im not sorry about what i said. Does it inhibit you from calling him out on any topic from here on out . Is there a silencing effect . No. No. It dont effect me one iota. Ive been doing the work of the union for 30 some odd years and a whole lot more drastic things have happened. And ive got through them. So, no, this is not a big deal by no means. Talk about some of the numbers behind the criticism you said when you said that he was lying i wont repeat exactly what you said, but what should he have said in his appearances in indiana . What he should have said and what they should have said when they first broke the story is that he got involved with utc and saved jobs. He should have said what they saved was 800 jobs, which is consists of 730 union jobs and another 70 management jobs. So that was the number. But what he did, he come out and said prior to and at the carrier facility that he saved over 1,100 jobs. At that point in time we couldnt get any details, the company wouldnt share them with us and our people did not know, you know. They assumed, i would guess, that they were most likely going to have a job. Okay. When we met with the company last thursday, when trump come into town, the company broke it down telling us that 800 was the total, 730 union and the other 30 that were management type jobs. Well, what they were doing in february when the company made the announcement they was perfectly clear that 350 research and Development Jobs were going to stay in this city. That was publicly known. Carrier announced that when they made the announcement on the plant closure. Then all a sudden excuse me. Cold. Then at that point in time then trump wants to count back in that he saved the 350 research and Development Jobs that were never leaving this country anyway. So i took exception to that because our people at that point in time got their hopes back up that they might have a job. And during his interviews or during his speeches at carrier he did not allude to any of that. And so people thought there was a good chance they was going to have a job to be able to provide for their families moving forward in order to find out friday when we told them, no, 550 peoples jobs going to monterrey, mexico. So people had false hopes on something that i dont think was necessary for him or pence or the company to address in the way they did it. Mr. Jones, as somebody who was reporting on the story and in fact broke the story itself, i can also tell you though, utx, i mean, he may have just been taking numbers from utx, which was using that more than 1,000, close to maybe even 1,100 number. I mean well, you know youre blaming trump, but it seems like your employer also was putting some numbers out there that ended up not being exactly right given those 350 jobs they already committed to keep. Okay. But donald trump in his own words is a skilled negotiator. I dont know if youve ever heard that one. Ive heard it numerous times. I negotiated a lot of contracts over 30 years. And one of the things that i would have to assume that when youre negotiating Something Like that you know how many damn jobs youre talking about. Yeah, but chuck, why come out so publicly against him . When was the last time the u. S. President intervened . He did end up saving hundreds of jobs. You cant reverse globalization or raise wages in mexico to make it less competitive. But he did do what he was able to do and save some jobs in the process. Why not applaud that . Ive said in every interview that im grateful very much for president elect trump getting involved in saving 800 peoples livelihood. You know, without his involvement these 800 jobs would not remain here in indianapolis. Very grateful to that. But, you know, i want the truth to be known and thats what i said he took an exception to it. All he had to do, in my opinion, was come back and say, well, you know, i was misled by utc or maybe, you know, i shouldnt have said what i said. Instead of doing that he goes on an attack on me . Right. Mr. Jones, when we spoke to greg hayes, or i should say when jim cramer spoke to greg hayes, ceo of united technologies, he of course praised his workforce in indiana, but he also did say the level of absenteeism is far higher there than it would be in mexico. So to bring up this idea of productivity, how do you respond to that criticism . Okay. Im going to respond to it right now. The companys got the right to make reasonable rules of conduct. In the reasonable rules of conduct is an absentee program. The carrier facility has got negotiated sorry, over there its negotiated. Weve got a negotiated agreement. If the company would have had issues with their attendance policy, we ought to sit down and work something out in order to work for both sides on attendance. That wasnt an issue on this past negotiations. And so if in fact they got a problem with their attendance, you know, they should address it. You know, theres some who might argue and were hearing a lot from Trump Supporters that although you say youre grateful for the 800 that calling him out on specific targets or numbers was sort of like looking a gift horse in the mouth. Is that not the case . Okay. Yeah. Let me put it this way, lets say youre one of the people that in february you were told that were moving the plant, youre going to lose your job, okay. Go through a traumatic experience. All of a sudden trump enters the scene saying were keeping some 1,100 jobs in indianapolis, now all of a sudden for whatever you get your hopes back up. Right. And people did in order to find out the 550 jobs, which nay never announced at any point in time when he was in town were still leaving to mexico. We heard about the 550 leaving two hours before trump got in town. Why couldnt he address that . So consequently people got their hopes up theyre going to have a job and provide for the families to find out from us the next day that wasnt the case. Right. Thats just wrong. Understood. Finally, mr. Jones, i just wonder as someone whos helped lead and negotiate labor contracts for a long time, what do you make of trumps public negotiating style . Taking public stances in front of everybody and hoping that leads to a better bid . Well, i dont know. Everybodys got their own strategy. You know, what me and mr. Trumps differences are right now if he would, you know, elect try to do something to save the jobs at the carrier facility or one of our other plants which is a mile away, rexnord 350 jobs that are scheduled to leave this country after the first of the year, id be glad to sit down and work side by side to try to do something to keep these jobs here in this country. Chuck jones of steelworkers local 1999. We really appreciate your time. Thanks again. Thank you very much. Quick programming note, we will continue our conversation on unions with the International President of the united steelworkers of america, thats coming up later on. And well hear from the ceo of a airstream bob wheeler as the discussion and debate about labor negotiations, state of manufacturing, employment at large goes on. Yeah, whether you can really bring back manufacturing jobs en masse to this country. When we return though, we are keeping an eye on the stock market in rally mode lately. Were sort of hovering around the flat line holding onto those record highs for the s p and the dow. The nasdaq actually outperforming today. Transports hitting a record high for the first time in nearly two years. Well break down what sectors you should be keeping an eye on and what it says about the outlook. And then tomorrow weve got a big interview coming on the u. S. Economy, the chairman and ceo of fed ex, fred smith, who spoke with president elect donald trump just recently. Much more ahead. Stay with us. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . The dow transports hitting a record high yesterday. It was the first time we saw that in nearly two years. Our Morgan Brennan joins us now with a look at what is fueling this sector. Pretty bullish, morgan. Certainly is, sara. So despite a modest move lower today, take a look transportation has been one of the biggest trump trades with the dow transports up 12. 5 since the election one month ago. So driving the surge we got prospects for Stronger Economic growth from infrastructure spending, possible tax reform since many carriers do pay top rates. And these are offsetting perceived risk of more protectionist trade policies. However, this is more than a trump trade. The index is up nearly 25 for 2016. Now, the biggest winners, some of the trucking names including land star, ryder, j. B. Hunt, as long as rail stocks yeartodate many of them are companies with big exposure to the Industrial Production which has shown signs of stabilization in recent months. So after a year and a half long freight recession, weve got volumes beginning to pick up. The cass freight index ticked higher for the first time in 20 months. Shipments over year over year, up 1 sequentially, better than normal seasonal surge according to that index. Weekly rail data looking better as well. Some easy comps there. Also some of the trucking data has been more upbeat. And weve got signals that Consumer Spending is ramping up as well. Air freight tonnage up 10. 5 last month according to avondales. So all this is contributing to the transport rally. Keep in mind we still have a lot of risks that some analysts warn are not getting fully priced in to this rally right now including higher oil prices, rising Interest Rates and of course the strong dollar, carl. Big story. Especially yesterday, morgan. Thanks so much. When we come back, the state of medicare and medicaid in the trump era. Well be joined by acting administrate for the cms andy slavitt. Take a look at the top dow gainers since the election. More squawk on the street continues in a moment. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fila big orde or expand your office and take on whatever comes next. Find out howmerican exprescards and services can help prepare you for growth at open. Com. Welcome back to squawk on the street everybody. Im sue herera. Heres your cnbc news update at this hour. Secretary of state john kerry says there has been a troubling shift away from democratic principles in too many of the 57 nations that comprise the organization for security and cooperation in europe. He spoke on day one of the twoday osce meeting in germany. South koreas opposition controlled parliament has formally introduced an impeachment motion against President Park gunhye. More than 7,000 protesters took to the streets in athens taking part in three different demonstrations against os tausty measures. A strike called for by the unions also disrupted Public Services across greece. And Airline TradeGroup Airlines for america says it expects 45. 2 Million People will fly worldwide on Domestic Airlines during the 21day holiday season. Thats a 3. 5 increase from a year ago. The busiest travel days will be december 22nd and december 23rd. Get there early. Thats the news update this hour. Carl, back down to you. Sue, thanks so much. Lets get to Bertha Coombs this morning. Hey, carl. Andy slavitt is the outgoing chief for centers for medicare and med case medicaid held thb for about 18 months now to help fix Obamacare Exchange in 2015. Andy, thanks for joining us on i guess whats your farewell tour here. Youve been at a number of conferences, one of which yesterday you were saying that with the changes afoot in washington that Health Reform should have no authorship. What do you mean by that . Yeah, thanks, bertha. And its great to be here. I think what i said yesterday is we really shouldnt have any pride of authorship for better ideas for improving health care. I think once we get past the rhetoric of the Campaign Season and into the reality of governing, i think doesnt matter whether its democrat or republican but if we can build on the progress that weve started over the last eight years ensuring 20 Million People, bending the cost curve, improving quality in america, that can come from anywhere. And i think everybody should have a rooting interest in that success. That said, you also have issued warnings about the republican repeal and Replacement Process and plans. You have concerns. Well, its not just my warning, bertha. Yesterday the American Academy of actuaries issued a warning to the speaker which said theyll be an immediate disruption and significant disruption in the market. And i think that disruption will come in the form of health plans really being paralyzed and not knowing what to do. Hospitals and others, and i think that begins to ripple. One of the things we tried to do, bertha, and we still try to do is be very cognizant of the fact 20 of the economy is in the balance whenever we make a decision. So creating uncertainty whether for companies, consumers or investors generally not a good thing. The insurers have complained about the uncertainty over the last year or so because there hasnt been the risk reimbursement to offset the big losses they have seen. What do you think the problem will be if there isnt a replacement plan in place and a process and timeline in place if the Republican Congress repeals obamacare in january or february . Well, hospital ceos and health plan ceos are saying privately and are now beginning to say publicly that theyre really going to be in no position to continue to invest. Theyre going to be in no position to understand as they move into 2018. By the way, 2018 in our world doesnt start in 2018. 2018 starts at the First Quarter of 2017 when Companies Need to begin working on their rates and filing them. So those decision haves to get made right away. And if the Congress Says were not sure whats going to be there, in all likelihood were going to have really significant parts of the country without coverage. Were going to have resulting in people without coverage. And i think what results from that is job loss and so forth. Remind everybody that among many of the other things with the aca 2 million jobs have been created since the aca began. In health care. In health care. 2 Million Health care jobs. Meantime yesterday cms put out some new figures for spending on drugs and Medicare Part d, a lot of the names that saw some of the biggest increases were generic drugs and the range of 300 to 400 in one year. Its the same day we saw the president elect say hed like to do something about it. Its been impacting biopharma drugs. Theyve been down. What do you think the next administration should try to do about it . Yeah. You know, i think for too long were living in the schizophrenic universe where the other thing that happened today the cures signed by the president , i was proud to work with the president and Vice President and dr. Biden really set an enormous amount of progress for our country forward because were now going to have really a shot at the cancer moonshot area, which is what hes been so much championing. So we need these cures, but at the same time if we cant afford to deliver these cures to the american public, if so should medicare and medicaid, should they negotiate with Drug Companies . Oh, i think so. But i would say this, i was pleased to read the president elects comments yesterday. I think, you know, to the extent that the new administration sees what we see, which is that individual americans are getting taken advantage of, were getting taken advantage of by other countries because theyre of course riding on the back of our r d, were not able to negotiate prices, as you said we have generic drug prices increasing. Thats something hes going to need some stamina, but its something hes going to want to do something about. Thank you so much, andy slavitt, were going to leave it there. Carl, gang, back to you guys. Thank you so much, Bertha Coombs. Union in the hot seat as president elect takes aim at Companies Moving production overseas. Were going to talk with ceo of airstream this morning. Right now dow is up 8. Dont go away. As the market rally rolls on, one stock, apple, on all of your minds. Should you buy it or sell it if you own it . The answer at tradingnation. Cnbc. Com. More squawk on the street coming up. Mary buys a little lamb. On millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at and security tt senses anmitigates ber threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Welcome back to squawk on the street. The s p 500 industrial sector standing out as the worst performer so far in early trading. This after hitting alltime highs amid yesterdays big market rally. Defense stocks among the names weighing on the sector the northeast, northrop, the biggest laggard kneelsen holdings, down about 4 hitting a 52week low in trading with, david, those defense contractors some of the biggest gainers since the election win for donald trump theyre pulling back a bit today. Back over to you guys. Thank you, dom. Dom chu. Now lets get to the cme group and join Rick Santelli who has the santelli exchange. Good morning, david. I would like to welcome my ecb meeting day, thanks, chris for taking the time this central bank day. Yes. Thank you. All right. Now, lets go through it just on the numbers. If there was no extension wed have 80 billion for three months and im just rounding everything thats euros of course 240 billion euros, now its going to be 60 billion. So we go from what was with no extension 240 to now nine months of 60 at 540, thats a difference of 300 billion more. The other way to look at it, my traders tell me this is a better way, is they were looking for an extension, but they thought maybe it would be all 80. So you go from 720 to 540, thats 180 billion less. How do you look at what mario draghi did with regard to less for longer . Well, im still struggling with why its not called a taper. I think for the first 45 minutes from 7 45 we thought going from 80 billion down to 60 billion starting in april its a lesser amount. Isnt that a taper . But he said no. I think the consensus ahead of time was that they might loosen these limits on what they could purchase below that deposit rate and that, you know, realistically they could go 80 billion per month through september from april through september. But then theyre really pushing it. I mean, theyre really running out of stuff to buy there. But, you know, what was interesting to me is that he still doesnt sound very satisfied with where the economys going to be in 2019. They dont really see inflation getting to 2 target. And thats why i think hes kind of trying to tell people theyre in it to win it, theyre going to be there for awhile providing support for, you know, the euro area. Well, you know what, lets get to the crux of the matter. I looked at all the headlines that he had out today on all the News Services and i picked up two threads. First was, reform comes in a lot. Ill give you one example here, countries that need reform have to undertake them. This makes reform easier. Been there, done that, mario. The reform many of these southern countries like to take the sugar but they dont want to do the reform. The other thing was politics. You know, politics are uncertain. Yeah, theyre uncertain, theyre kicking all the policymakers out. Comments on all of those issues and wrap it up. Yeah, the reforms going to be very difficult to achieve. Weve been down this road so many times before. You know, the u. S. People in the u. S. Are very concerned about Political Risk in europe. But, you know, frankly we dont see it quite that way. I think merkels going to be okay. Lapenn is probably not going to win in france. Maybe a little bit overstated the Political Risks, but people are nervous. Well, listen, chris, thank you. And many would debate whether the Political Risks are that status quo remains or status quo goes, case in point donald trump and the markets. Chris, thank you. David faber, back to you. All right. Thank you very much. Now lets send it over to jon fortt give us a look at whats coming up on squawk alley. Jon. Good morning, david. The back and forth between the president elect and the Steelworkers Union continues. Were going to continue to dig in on what the issues there are. And j. D. Com, Big Technology company in china, are they worried about a trade war . Finally, well take a look at where the markets go from here as we head into president trumps first term. All that and more coming up on squawk alley. The companies were not stopping the flow of production and jobs south of the border and overseas. The president elect calling them out for not keeping jobs in indiana. Airstream known for its iconic silver trailers. Joining us to discuss this issue is their ceo, bob wheeler. Nice to see you. Good morning. Thanks for having me. I know that your manufacturing employees are a, in this country, b, nonunion, but what are your thoughts on this feud between the president elect and the head of the united Steelworkers Union 1999 . I saw that interview. It made me feel grateful our markets have been primarily in the u. S. Its never been the impetus for our industry to export jobs so regardless of what policies come out of this administration, we think as a recreational vehicle goes were going to be fine. In other words, youre thankful few yore another going to be called out on twitter or singled out maybe a phone call from the president elect. To move your jobs. I dont anticipate well have any issues with the current administration. Its been kind of fascinating seeing things unfold in the days leading up to inauguration, but i think were in very good shape. Do you think he made the right move by getting on the phone with you nighted technologies ceo, the company that owns carrier, negotiating a deal that involved some incentives to keep those workers in this country and therefore keeping we know now not a thousand but hundreds of them here . Well, keeping jobs in the u. S. , no ones going to argue against that. You know, how its done historically and how its going to be done in the future, you know, things are really evolving. Im not in a position to say whether it was right or wrong, but certain number of jobbed were saved in indianapolis and its hard to say thats a bad thing. As you said, having your employers in this country, a lot of industries are focused on what deregulation will occur that will benefit them. From your point of view, is there anything that you see in terms of deregul that could be benefit to airstream . Our industry as a whole and airstream in particular, weve benefited from being selfregulated. Theres a great Industry Association that makes sure the products are safe, theyre built to great standards. So were not a heavily regulated industry as it is. So we dont anticipate a big impact with deregulation. The products we make are made by hand. You know, theyre typically nonunion facilities. We think all the Economic Indicators that we see moving forward look very good for our industry. Just out of curiosity, why do you keep your manufacturing in this country . Greg hayes told jim cramer that wages are significantly lower there, about 80 on average, absenteeism runs about 1 , turnover 2 , dedicated workforce. Why not go south of the boarder . Why havent you done so previously . Because we have all those same things here right in ohio. The airstream workforce in shell by county, ohio, is really second to none. Weve got tremendous attendance. Weve got very low turnover, tremendous worker loyalty. When your labor costs are kind of in the high single digits, shaving a few Percentage Points off that is really not going to impact our company as a whole. And when it comes to airstream, hey, were made in america. Its all about hand built, hand riveted. We couldnt dream of taking our products elsewhere even if we wanted to. And you expect that growth we just saw, 12 , going to continue beyond this year . Yeah. Theyre calling wrapping up this year at 12 as an industry. Airstream in particular is going to finish the year up 22 . Weve been on a great run. The rv Industry Association is calling for 5 growth next year. Frankly, i think thats a little conservative, but time will tell. All the Economic Indicators are really pointing our way. Its low Interest Rates, gas prices are still low, credits available. All the things that really drive our Industry Forward are looking good for years to come. That Consumer Confidence is up. Thank you for joining us to discuss it. Thank you. Bob wheeler, ceo of airstream, a subsidiary of thor industries. Coming up on squawk alley, well speak with the International President of the united steelworkers of america, leo gerard. Our business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. Find out how American Express cards and services why pause a spontaneous moment . Ciis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. Lets take a look at where we are on stocks right now. Theyre holding their gains. The gains that took the s p and the dow to fresh record highs in yesterdays session just barely positive on the session, the nasdaq performing about 0. 3 , one of the three thats not actually yet at a record high. The russell 2000 is also at a record. Were also watching the euro today. After mario draghi, Central Bank Decision of the day, decided to extend their stimulus program, bond buying, by more than the market expected. Thats weighing on the euro. Its getting crushed right now, down 1. 3 . Theyre also deciding to taper or scale back the amount of bonds that the ecb is buying, perhaps a little disappointing there weighing on the euro as well. And add that up and off strong dollar getting even stronger. Watch out, multinationals in the latest earnings. Doesnt seem to be affecting the dow right now, which is up 11 points. Also the Consumer Discretionary sector, which has come to life in this trumprelated rally, this idea that Consumer Confidence is up, animal spirits are back, and the sector as a whole has turned around from earlier in this year. Lululemon a big part of the reason why today. It is up 18 after a blowout quarter, 7 comped growth. Talk to the ceo. Has a good outlook for this Current Quarter on holiday sales. And if the s p closing at a record, carl, 16th of 2016, and the sixth since election day. Over the you for squawk alley. Sara, thanks so much. Sara eisen. Good morning. It is 8 00 a. M. At twitter headquarters out west, its 11 00 a. M. On wall street and squawk alley is live