Good morning. Welcome to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. Good morning to you from me. Lets check in on the Global Markets. After another small rally for stocks yesterday. The strength continues off the back of the election, ahead of the ecb meeting tomorrow. Dow futures up, along with the s p and nasdaq. Higher yields have been driving a lot of the action and strength in banks for instance. 2. 37 is where we are now. Backing up just a bit. Well see where we go through the morning. Lets look at european equities. Strong monday, strong tuesday. Again those first positive starts to the week because the fall out from the italian referendum was thought to be less bad than some initial fears. They are continuing strongly today. As you can see, up over 1 . This now based on the hopes that the ecb will ease policy a little bit more given the political pressures across the region. As you can see, about 1 of gains. The ftse 100 up 1. 3 . The pound is soft this morning. Uk manufacturing data came in weaker than expected. Thats moving the ftse 100 and the pound. In asia, we had weaker than expected gdp out of australia overnight. Down a half percent quarter on quarter. Quite a significant surprise decline there. All of the rest of the markets, hong kong, shanghai, japan are still strong. We saw india hold its Central Bank Rate at 6. 25 . Many had thought they would cut. As for oil, continued weakness in the price of oil again, pulling back from the highs postopec. There we go. And they just turned around. Theyre positive now, up 0. 4 . 51. 13. Brent, 54. 14. Looking at gas, popping 2 . As for the u. S. Dollar, the euro strength surprised a lot of people after the italian no vote on the referendum into an ecb meeting where there is expectations from economists that well get an extension of qe. Usually that pressure is kirntcy. F currency. For the euro, its the opposite. Dollar yen, earlier it was above the 1. 14 level. The pound, 1. 2590. As for gold, going the other way this morning. Searching for direction in terms of cross assets right now. Up 0. 3 . Its a light day for economic da data. The monthly jobs openings and Consumer Credit at 10 00 eastern. At 3 00 eastern, look for october Consumer Credit. Brownforman, the maker of jack daniels whiskey report before the opening bell. President elect trump continues his thank you tour last night with a rally in fayetteville, north carolina, near the ft. Bragg military base. Trump announced his plans to nominate general James Mad Dog Mattis as his secretary of defense and pledges to rebuild a strong military. In every generation a new threat to freedom arises. Just as we defeated these threats, we faced generations in the past, you understand that, so too will we defeat the forces of terrorism. Today the president elect travels to Ohio State University where he will be meeting with the victims of the recent attack there. Later tonight hell hold another thank you rally in des moines, iowa. Trump friend and supporter, tom barrack is defending some of trumps positions. He joined closing bell last night. I think its just a matter of telling the world, china you want to play fair, well play fair. On currency manipulation, you have to have a ph. D. From princeton and calculus to understand what happens between Central Bank Intervention and trade intervention. These are not simple things, its a president being a leader and visionary saying the world will be great, were a leader, we consume more than we produce, we have an unbelievable balance sheet, we can continue to print debt, no matter what people think about debt, the debt to gdp level is low. Barrack says americans need to give president elect trump a chance to unite those for and against his ideas. Ill tell you what, his ideas tend to move stock prices. Look at boeing yesterday. It did finish off the lows of the session. It did close lower. Came after the tweets about how trump is trying to negotiate down the price of air force one. Softbank on the other hand shot up after that great photoop and announcement from Masayoshi Son in trump tower yesterday about the 50 billion investment. On the boeing point that was happening just before the interview with Brian Moynihan and bank of america was about to start. We asked Brian Moynihan are you critical . Are you worried about this direct president to company type comments . He said no. We have seen this kind of thing before. Obama was critical in the past of banks at certain times. He said it means things might actually get done in the sector. It was interesting to hear him be supportive of this. They have to be watching their stock prices, which are on average up 20 since the election. Theres a lot of optimism that you reported on all day long. Well get to the highlights in a bit. No surprise there. The problem is for companies that are targets like boeing, carrier, united technologies, it puts them in a tricky situation. Maybe it is a good thing to have a president reaching out, negotiating, no more regulation, sort of red tape, getting it done. Person to person. Its an interesting new playbook, and starting on twitter. Speaking of twitter, the ceo says president elect trump is adept at using the social media platform to speak to his audience, but dorsey said twitter is not responsible for president elect trumps nomination. I think thats interesting. Its fascinating. Its something we have not seen before. Were entering a world where everything is on the surface, in real time. We can have conversations about it. Where it goes, im not sure, but its been fascinating to learn from. When asked how he feels about the whole situation, dorsey said its complicated. Hes got to be pleased with this. Sure. It made twitter the most relevant News Platform. We know it has not taken off as a social media platform. Its always been a News Platform for people like us. Trumps own following is now 17 million. When he announced being a political candidate, it was around 3 million. Not at katy perry levels. But should be. Its mistread. Must cover for journalists like us. And its must follow if you want to see what the president elect is thinking about in realtime, but can twitter figure out a way to grow people and bring in money from it. I dont know. Have it sponsored. The guys on squawk on the street talk about this all the time. The s. E. C. Is an important Government Agency to wall street and corporate america. Reports this morning say former itself attorney Debra Wong Yang is being considered to chair the s. E. C. They met on monday to discuss the role. In other washington news, at t and time warner will pitch the benefits of their 85 billion merger to a Senate AntitrustSub Committee today. While campaigning trump said he would block the combination of those two firms. At ts ceo, Randall Stevenson and time warner ceo jeff bukus will testify before the panel today. Stevenson will say the deal will disrupt the long established tv model in a way that would benefit consumers saying it would be a gross mistake to view this transaction as anything but pro competitive. Senator mike lee will join squawk box at 8 5 a. M. Eastern. I mentioned that comment as a campaigner, he does continue to bash cnn, which people see as a clue, maybe it will be hard on them. Its interesting to see whether he gets behind this deal or not. If he will comment at all. He wants a pro business friendly exactly. Great to see that interview on squawk box. Coming up here, banks soaring post election. Well hear from some of the industrys most powerful leaders next. Stay tuned, youre watching Worldwide Exchange on cnbc. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back to Worldwide Exchange. Another mini rally happening in u. S. Futures following another strong finish for u. S. Stocks. Futures are up 16 points. S p is up less than a point. Nasdaq futures are up 1. 75. We saw the nasdaq outperform all three in yesterdays session. The mid caps and small caps continue to flex their muscles. Thats where the strength is, and more record highs there. As for the early currency action, its flat on euro dollar ahead of the big ecb meeting where there are High Expectations of an announcement of expected stimulus. The dollar yen dropping below 1. 14. Its been a strong dollar, weak yen. Oil prices were under pressure and turned around and are trading higher. Wpi just hovering above that 51 mark. Brent above 54. Financials hitting a fresh 52week high in yesterdays session. Wilfred sat down with some of the biggest names in the industry what were the highlights . A lot of optimism. The Goldman Sachs chief bank analyst who organized the event said interest in the sector was off the charts with over 1,000 investors attending. The main takeaway, there was no bad news to dampen the positive mood across the sector, there remains significant division on the level of possible deregulation in the sector. Steve swartzman saying he expects a substantial reversal of regulations of all types in the Financial Sector probably more than hes seen in his 45year career. That was offset by the big banks who were more reticent on the topic. Here is steven scherr. I dont know that it gets rolled back to that extent. I think theres an expectation held by the market that well see a big turn to the positive from the perspective of the banks and regulation. What we heard today in the various rooms from the various ceos, which goldman would hold as well, we need to be a bit guard guarded in terms of how much change well see, the pace of change, but its clear the market has a high expectation of what regulatory change may bring. Jamie dimon suggested Interest Rate sensitivity could be better than expected. Brian moynihan said expense targets have not changed raising hopes that the upcoming boost to revenues would drop to the bottom line. Also positive shortterm points, both bank of america and jpmorgan confirmed trading continued to be strong in q4 as it was in q3. The sector got a bit of a bounce during the course of the day. Because Higher Expectations for the current quarter, not just the year or the quarters ahead on some of these pick picture ideas. That but also the point that the Goldman Sachs said at the top of the hit there was no bad news. Everybody is coming into this positive. Theres momentum behind the sector, nothing across the presentations that dampened that. The big division on regulation. I wonder whether the positive tones are more likely to be true on regulations, just the Big Bank Ceos didnt want to come out and say that unanimously. So they were like lets step back and wait to see what happens. And tim sloan was there as well, of wells . You almost forget. Thats the obama days, bad bank behavior. You contrast the optimism, turnout at this conference not only compared to the conference last year, but even two months ago. Before the election it was all Deutsche Bank and wells fargo, doom and gloom again. But a change in sentiment. The treasury in italy denying a report that the government plans to ask the european stability mechanism for a 15 billion euro loan to prop up bmps and other struggling banks. An italian newspaper says in exchange the country would have to commit to tighten the budget and make use of the funds would have to be approved by italys new government by the end of the year. The scheme is similar to what spain used in 2012. Citi group is the focus of a uk investigation into octobers flash crash in the price of sterling. This all according to the financial times. Specifically officials are looking into the japanese Trading Operations of citi group which fired off repeated sell orders that made the currencys fall worse. It was off by 9 in about 40 seconds. According to the ft, one of citis traders panicked raising questions about supervision at the bank. Citi said it managed the situation appropriately. Anyone who got in and bought, what did it go to . There were disputes to 114 briefly. Some said 118, 114. Either way, if you locked in your hotel room in the uk that minute, you did well. I missed that day. Still sad about it. It was a moment. I wasnt here that day. Still to come, president elect trump continuing his thank you tour today. Well tell you whats on his agenda plus what barry diller has to say about the incoming administration. First, as we head to break, heres todays National Weather forecast from jen carfagno. Good wednesday morning. We have a bit of precipitation out here. A wintry mix in the northeast, rain, snow. Not a lot measurable right now. Clearing out by this afternoon. We have the cold, that is a huge story. That is continuing to be a factor along with the snow and wind in north dakota. Bismarck, only 7, that cold on the move. Denver, 19 with morning snow affecting the commute. Then well be looking at the cold spreading. That will be the big story over the next couple of days. Spreading throughout the plains, into the southeast and northeast. Today only 30 for a high in chicago. 38 in seattle. Looking at an active time in the west, a lot of wind, rain and snow. Thats the latest coast to coast forecast. Im jen carfagno for the weather channel. Worldwide exchange continues after this. When whirlpool builds an appliance, they put everything they know into it. But once its sold, there usually isnt a way to keep improving that product. Today, whirlpool can analyze iot sensor data from connected appliances on the ibm cloud. So they can continuously learn how customers are using their products. And how the machines respond. Harnessing data to make great products better thats what the ibm cloud is built for. Good morning. Welcome back to Worldwide Exchange. Lets check in on the markets. Gains yesterday relatively muted. All less than a half percent for each of the indices. The nasdaq was the best performer, just shy of a half percent. The dow hit another alltime closing high. Tech was the best performing sector. This morning were higher, but just slightly. About 26 points or 0. 14 . Oil prices on a tear last week as we know after that opec deal, they gained 12 . It meant yesterday we saw some profit taking from oil traders, down in and around 2 for wti, now back up again, about a half percent. 51. 14 on wti. Sara . We need a trump dashboard, softbank shares trading higher, boeing lower. Tracie potts has the latest on the trump transition. Reaction to the boeing situation, where trump called out yet another big business and the president elect has a message for congress about his now official nominee for secretary of defense. Mad dog plays no games, right . Reporter its official retired general james mattis is president elect trumps nominee for secretary of defense but only been retired for three years, so mattis needs a special civilian waiver from congress. I look forward to being a civilian leader. Reporter late tuesday lawmakers put the waiver on a fast track, tieing it to a spending bill to keep the government open past friday. Oh, if he didnt get that waiver there would be a lot of angry people. Reporter big businesses not angry but anxious after trump tweeted a multibillion contract to rebuild air force one should be canceled. Boeing replied theyll deliver at the best value for the american taxpayer. Privately sources confirm boeing contacted the president elect suggesting changes could be made to lower the cost. I think for boeing and for the suppliers, i wouldnt worry. This is not going to go away. Reporter congress is considering mr. Trumps 35 tariff ones go goods made overs. We want to keep american jobs from being exported. I think tax reform is the answer to that problem. Reporter this week he is continuing his thank you tour. Tomorrow hes making another stop in ohio. He visits ohio state to talk to some of the victims from last months attack. Tracie potts in washington, thank you. You know that the uk has its own equivalent, only in the last six months of air force one. We never had our own plane. David cameron commissioned one. It was nicknamed cam force one for a bit. I dont know the nickname now. Is it made by airbus . I dont even know. They have their own plane, copying you guys. Media executive barry diller spoke out on trump, the win and the transition. The ioc chairman spoke on fast money last night. It is kind of a grand experiment. Every day we see things weve never seen before. Certainly theyre interesting. And im, of course, skeptical. At the same time i say, you know what . This has been a vote for change. It seems like well see almost undiluted change. So fine. Lets see what this experiment brings. An experiment. Diller was not a fan of trump and had given a series of interviews and comments before the election. What did he call him . A clown or something . Im trying to find the exact wording. Changing his tune, giving him the benefit of the doubt, like many ceos that were anti before him. Well have to see if he turns out to be right. Coming up, the top stories including a Global Market rally. Later this morning, a huge lineup of top Corporate Executives on squawk box live from the business round table in washington. The ceos of caterpillar, cisco, dow chemical, u. P. S. And many others. Plus an extended interview with special guesthouse Speaker Paul Ryan. All that begins at 00 a. M. Eastern time. Absolutely mustwatch viewing here. Become on Worldwide Exchange in a couple minutes. Good morning. U. S. Stocks soar to record highs and Global Equities are jumping on hopes of more ecb stimulus. The ceos of at t and time warner will go to capitol hill to defend their deal. And never say never. Joe biden meeting colbert and the late night comments are trending everywhere. Its wednesday, december 7, 2016, youre watching Worldwide Exchange on cnbc. Good morning. Welcome back to Worldwide Exchange on cnbc, im sara eisen. Im wilfred frost. Good morning to you from me as well. Lets check in on the Global Markets. Another round of strength in yesterdays session, though led by tech. Some big names that have been beaten down since the election like amazon, facebook, they showed some strength with the nasdaq outperforming. Nasdaq futures up almost 2 points, dow futures up 18. S p futures up a half point. To underscore the point, nasdaq since the election up only less than 3 . Transports up 10 . The small caps since the election, up 13 . The domestic picture improves. As for the early action in europe, european equities strong ahead of the ecb meeting tomorrow. The dax is up 1. 5 . France up 1 . Ftse 100 up 1. 4 . Real strength here. Is this really what were still applauding that the hope of ecb action comes and thats a positive thing . Its a positive thing with a lot of political question marks in places like italy where were seen bond yields tick up a bit. The hope is the ecb will come in and be a buyer and smooth things over. The other factor driving markets is that bmps is up 11 today. I think this hope of stimulus, i thought we moved past that thing. Maybe its part of the trump rally, the financials have been very strong. Oil prices have also been firmer. The Energy Companies are getting a boost. Ultimately mario draghi. As for asia, lets show you what happened there. Sort of a mixed picture. Nikkei was outperformer again, up 0. 75 after the dollar yen went above 1. 14. As for hong kong, up a half percent. India closed lower by a little more than half percent. Australia finished higher despite what was a weaker read on australias gdp. The aussie dollar got hit hard. Data coming out of china, which has not moved equity markets, but as we said for a while, forerex reserves in november hit the lowest level in six years. The monthly drop of 70 billion worth of reserves was the biggest fall weve seen since january. Back in january we know when that started to spook markets. Coming off the back of a strong dollar. At the start of the year it was coming off the back outright of a weak yuan. Thats why markets have not gotten spooked yet, but data we will keep an eye on. It suggests it is becoming more expensive for the peoples bank to keep their currency in chec check. Something to keep an eye on. The shanghai market similar to the Hong Kong Market up just shy of 1 today. As for the broader market. Oil prices. Lets look at that. Theyre higher by 0. 2 . 51 for wti. Down about 2 yesterday. In the last week or so, since the opec meeting, up over 10 . Tenyear treasury note settling in and around that 2. 4 level. At 2. 73 today. The dollar, not Much Movement today. Yesterday some dollar strength. The broader index up about 0. 4 . That broke a threeday losing streak. Today the only big mover is the pound, down 0. 6 after manufacturing data came in much weaker than expected. A fall for november when a slight gain was expected. Gold prices to round things off are currently higher by a quarter of a percent. As weve been discussing, the ecb is front and center this week with an announcement due out tomorrow. Joining us is tlindsay. The stock market rally which is a little bit global with europe joining has been relentless in the united states. With the ecb tomorrow and the fed next week, are central bankers going to disrupt it or add fuel . I think with the recent strong rhetoric coming out of the ecb, expectations are for the central bank to announce further policy initiatives, likely extending the current Bond Buying Program at 80 billion a month beyond that march deadline. Against the back drop of market volatility, still moderate conditions in the euro region. And recent rising concerns over the health and sustainability over the italian Financial Sector. The ecb will be seeking to increase confidence and shore up investors. We do have some critics of the program questioning the marginal benefit against the back drop of a rapidly rising cost. That is expected to reach nearly 2 trillion by that end march date. Still at this point we do expect the central bank to stay on the path of continued accommodation for the economy. Lindsay, thats the important point. The marginal benefit that we get from such late in the day attempts to extend these policies. Is this not a bigger negative than it is a positive . Its highlighting the need for extra help, but really little that can be done anymore by the central bank as a whole. Well, i think central banks, particularly the ecb, is going to have to walk that delicate line between continuing to increase confidence, but also falsely increasing the notion that any further improvement in the youre reuro region is goin dependent on further central bank stimulus. Some banks talked about a compromise. Maybe announcing an extension of the program but at a lower clip than weve been seeing. This might be a very difficult message to send to the market as any reduction in purchases could be seen as sort of the beginning to an end process. And cause the very adverse reaction in the market that the ecb is seeking to avoid. Its going to be dave cult balance. Lindsay, on the u. S. Economy, you had been one of the economists in the past few months that weve been talking to that was gloomy in terms of the data, and finding some weakness buried there. Have you changed your tune after the election and after weve gotten good data . As we look out to 2017, certainly the Trump Administration is talking about a plethora of progrowth policies that could help arrest some of those downward trends that weve seen across a number of key sectors in the domestic economy. Should those come to fruition, that certainly would help restore some underlying growth to the economy. When offsetting extreme weakness that has continued for years, even vast improvements result in more modest growth range. So we have increased our forecast, but still not looking for the 3 , 4 that i think the Trump Administration would like to see associated with some of these policies. Some tempered optimism. Thank you for joining us. Today in washington, at t and time warner will pitch the benefits of their 85 billion merger so a senate anti trust subcommittee. Randall stevenson and jeff bukus will be testifying. According to prepared text stevenson will argue that the deal will disrupt the long established cable tv model in ways that will benefit consumers. Saying it would be a gross mistake to view this transaction as anything but pro competitive. Senator mike lee will join squawk box live at 8 5 a. M. Eastern time with a preview of some of those questions the member also have. Unclear how president elect trump feels about this deal. In his campaign he said he wouldnt approve it because theres too much concentration of power. Well see what we learn today. Indeed. Squawk box has that interview coming up. Brownforman, the maker of jack daniels whiskey reports results before the opening bell. Landon dowdy has three things to look at. Beyond the numbers, here are the three things to watch. Sales growth. While jack fire is trending higher, jack daniels straight bourbon and jack honey have worsened. Sales in the Second Quarter could fall victim to currency headwinds. International volatility towards spending in the u. S. Has been lifted by japanese tourists in the last quarter, but japanese travel remains difficult because of the geopolitical environment. And the outlook. Brownforman stocks are down more than 4 in the past three months. Back over to you. Thats a volatile chart. Thank you. Top trending stories today, Vice President joe biden dropping by the late night show with Stephen Colbert last night. The two discussed past regrets, the election and speculation about bidens interest in returning to the white house. Who knows what would have happened had i run. We might find out because yesterday you were on capitol hill, you were asked by a reporter will you rub for on foe again . I quote, yeah, i am. Im going to run in 2020. Reporter, for what . For president , you know, what the hell, man. Biden says he does not plan on running again, but reminded colbert never say never. Just a few days ago biden teased reporters that he would run for president in 2020. I guess hes rethought that. Decided to rethink it. He also said its good to tease people up and say actually im not, but then you become popular again. I become popular when youre not running. Youtube releasing its list of the top videos of the year. The top spot is probably not a major surprise, adele appearing on James CordensCarpool Karaoke with more than 135 million views. Just to add to how impressive that is. This is like a 17minute video. Its not like the top viewed one was a quick clip. Its a proper long clip. In second place, a viral video called pen pineapple apple pen but a japanese comedian. Have not watched that. Is that in japanese . I dont know. Well have to watch it. In third, whats inside a rattlesnake rattle . Which shows a little kid, an older guy cutting open a rattlesnakes rattle. The rankings are based on views, shares, comments and likes. The top ten videos had 550 million views and were watched for more than 25 million hours in total. Numbers two and three sound confusing. Number one, outstanding. And madonna is apparently on tonight. On Carpool Karaoke. Its outstanding. You introduced it to me. James corden has had a great year. Blast store is out with the list on the best places to work in america. At the top of the list, bain company. They knock airbnb. Airbnb slipped to 25th place. Bain is followed by facebook and boston consulting group. 20 Tech Companies are on the list. Number one was a consulting firm. Number four, cnbc. Was it . No. No. But it should have been. When we come back, todays must read stories, first check out the early action in europe at this pour. Were seeing 1 gains across the continent. Places like france, 1 . Ftse 100 up 1. 3. The german dax up 1. 5 . Much more Worldwide Exchange when we come back. Olay total effects vitamin enriched to revive skin and fight 7 signs of aging your Old School Dance moves might show your age, your skin never will olay. Ageless. You fine but your passengers in your carsmell this. T smells eliminate odors youve gone noseblind to for up to 30 days with the febreze car vent clip break out the febreze, and [inhale exhale mnemonic] breathe happy. Well be with you shortly. Yeah right. Xerox Predictive Analytics help companies provide a better and faster customer experience. Hello mr. Kent. Can i rebook your flight . Im here xerox Customer Care services. Soon to be conduent. Wait im here mr. Kent . gasp shark diving xerox personalized employee portals help Companies Make benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping xerox Human Resource services. Soon to be conduent. Welcome back. Time for todays must reads. I went with a mocking piece from the wall street journal titled help wanted at google. The Editorial Board is poking fun at google now that it is looking to hire a conservative policy analyst to sper ar inter the new administration. Now google will have to scramib scramible to preserve its enormous influence on everything from copyrights to privacy regulation. Eric schmidt was close with the Clinton Campaign as revealed in some of the emails, it hints at this idea that a lot of these big Tech Companies, google, amazon, microsoft, they were so against trump and prepared to have a clinton presidency, now theyre all scrambling to do things like hire conservative experts. Just the lobbying community as a whole were positioning themselves to be closer to the democrats and b trump doesnt want lobbyists to have any influence at all. It will be interesting to see how president elect trump deals with the Tech Community versus campaigner trump who did go after tim cook at apple for sending jobs overseas, amazon for a no moply. Not much tech representation. True. Swartzman said he did ask bill gates. My must read, martin wolfs column, more perils lie in wait for the eurozone. He writes the combination of weak aggregate demand and huge post crisis divergences in Economic Performance has turned the eurozone into an accident waiting to happen. Yes, were not facing an in out european referendum, but i think the positivity post the result, perhaps a bit overdone. Martin wolf traditionally positive on europe, highlighting the perils that still exist. Worth a read. The Political Risks are still there, despite the fact that the euro turned around, rallied, italian banks up again today. He goes through the economic stuff, other people around here are saying we have europe growth coming back, china growth coming back. Thats why the u. S. Is rallying. Still a lot of economic weakness across europe. Well see what draghi says tomorrow. Approaching the top of the hour. The team is getting ready for squawk box, the focus about to turn to them, theyre live in washington. Joe joins us with a preview. Good morning. Good morning. We have a really big show. I know that Means Nothing to you two probably. It Means Nothing. If i were david frost you would know. Do you do a david frost . I cant do that. But you do a good one. The ceo, the roundtable, i think these guys were like, wow, trump doing a bunch of stuff, tax reform, deregulation, the last couple of days its like i dont know, theres been a bit of a change. Anybody can be called out at any time. It will be interesting to talk to these gentlemen from cisco, u. P. S. , american air, its not just ceos, well have an extended interview with Speaker Paul Ryan which should be interesting. Also kellyanne conway. So, this is going to be one of those shows with this is a green screen. I know you think im actually here. Im on new jersey avenue. I was going to say, joe, such a nice back drop. You look like such a traditional reporter with the stick microphone. And a jacket. Wait until watch what i do when im ready to sign off. I learned this are we ready to sign off yet . Sure. Go for it. There you go. I liked that more than you. I really liked that. Hes been waiting a while to do that. Joe kernen with a good sense of humor. When we come back, tom lee joins us on set. My business was built with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Welcome back to Worldwide Exchange. The dow turning in its ninth positive session in another record high close yesterday. Slightly higher in the futures market this morning, albeit only slightly. Lets discuss what to expect in markets today. Joining us is tom lee good morning to you. Good morning to you. The march higher in terms of the u. S. Dollar and in terms of bond yields has slightly paused. Equities continue to eke out more gains. Can that continue for the rest of the year . I think so. You know, you have the seasonal december rally. I do think sentiments turned. I think people were caught underinvested into election day. I think were starting to see risk being put on. Should continue to the end of the year. What are you seeing in the flows . Is the march to record highs i think theres 11 dow record closes since the election. Is that drawing in the Retail Investor finally . Yes. I think its even drawing in foreign investors. We have a client in asia, they talked record inflows into the u. S. I think coming at the expense of other markets . I think its coming mostly out of cash. We have to remember, u. S. Households, asian households have a lot of cash sitting around. In the u. S. , trillions. 11 trillion or so. What other factors do you look at in terms of data points, what could switch to you being more bearish . Thats a critical question. I dont think the level of constructiveness is out of whack with fundamentals. I think the markets now just finally are catching up to the recognition that inflation is good, like low Interest Rates are bad. Theres a chance for policy change. We do have to worry about strong dollar generally is not great for stocks. We have to kind of theres some consolidation early next year. Do we have to worry about tweets where the president elect is actively tweeting about u. S. Public companies . Whether for better or worse or trying to do deals with them . Its not the greatest way to spread policy through twitter. Its obviously surprising. But the market doesnt seem concerned about it boeing fell, finish the down a half percent. I think one of the reasons it hasnt been negative, investors are viewing this as a chance to shake up the way washington deals with the private sector. Thats a good thing. I think its good. What about this factor, fiscal stimulus t could be good at the start of a cycle, less effective late cycle. Is that something that you disagree with in terms of why youre positive on markets . Its interesting, unlike the last few expansions, Capacity Utilization is quite low. We can say theres a lot of room for investment spending to pick up, the labor markets are tight. You have to go back to the 50s to look at a similar period. I think we have to be cognizant that the area it could get dangerous is if Wage Inflation starts to accelerate. Wanted to ask about the banks. Wilfreds world. They were the worst performing s p group for nearly the entire year. Now they shot up 20 this year just behind energy stocks. Do they continue to lead this rally into next year . I think banks have to be bought. They underperformed for ten years, theyre a huge beneficiary of rising rates, deregulation, and i think banks are meernlging from this siege mentality that seized on them. What about a look around the rest of the world. Are there concerns there that could derail this u. S. Rally or is this u. S. Rally becoming very domestic focused . Thats another key question. We get the sense that u. S. Is delivering like an impulse to the rest of the world. I think if u. S. Inflation picks up, inflation is picking up everywhere else. I know, lower the end of low Interest Rates is a positive for the global economy. I think in general theres Political Risk outside the u. S. But i think that whats happening here in the u. S. And the rise in Inflation Expectations will spread to the rest of the world. Tom, we have to leave it there. Thanks. What are you watching today . Squawk box. Paul ryan particularly, great after this new approach to business from a businessman president elect. That will do it for Worldwide Exchange. Squawk box is next. Next. Good morning. Welcome to a special edition of squawk box live from the Business Roundtable in washington, d. C. We want Business Leaders to tell us what they expect from the Trump Administration, especially after those tweets yesterday. What changes theyve made to their business since the election, and how they have react reacted if president elect trump would call them out. I did this from on Worldwide Exchange, i have to do it again. Squawk box begins right now. Welcome to squawk box right here on cnbc this morning live in washington, d. C. Im Andrew Ross Sorkin along with joe kernen. Coming to you from the Business Roundtable meeting in washington, d. C. We have a huge lineup. We have the ceos of caterpillar, cisco, american airlines, dow chemical, u. P. S. Donald Trumps Campaign manager as well. Kellyanne conway will join us at 7 50 a. M. Eastern time with an update on the transition, plus we will be talking to house Speaker Paul Ryan that will happen at 8 40 a. M. Eastern time. You will not wanted to miss that. Our host here in washington and for the next hour of the program is Business Roundtable president john engler, we will get the governor to talk to us in a minute about so many issues. Thank you for