Good morning. Welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost. Good morning to you from me as well. Lets check the Global Markets after another solid day on wall street took the dow up not quite to 20,000. So close. Above 19,900 for the first time. Futures not doing a whole lot. The nasdaq yesterday stood out. Technology finally caught up after weeks of underperformance with the nasdaq surging a percent. Dow futures down 8. S p futures up 1. Nasdaq futures up 3. A lot going on today, including the fed decision. News conference from janet yellen, dot plot from the fed, economic forecasts as well. The tenyear treasury note yield is sitting at 2. 44. Were sort of within the range, towards the higher end of the range of where we have been. Bonds look like a sell. The stock market continues to be a buy. The dow 100 away from 20,000. It is slightly down at the open. The bank of japans tanken survey showing an uptick in japans biggest manufacturers, in line with expectations. Not moving the yen at all. The dollar hit a tenmonth high against the yen on monday. Since then it slitted a bit. The dollar treading water across the board today as we approach the fed decision. Asian trade as a whole, it is mixed to down. Shanghai down about a half percent. Globally the risk sentiment is one of just pausing. If anything theres a tilt to the downside on the european boards. Early trading indicating a pause in the strength weve seen in european markets lately. Kind of small. The dax down a quarter percent. France down a half percent. Italy is now flattish. Spain down 0. 8 . Maybe some caution ahead of the fed forecast, the News Conference and the tone from janet yellen. Feel like that Interest Rate increase is baked in. Its a question of how aggressive they want to be when it comes to forecasting next year. The thing on that that i would add is last year we were expecting our first rate hike. We got it. We were also expecting by this time this year we would have a downwa downward risk of rates. Now, if we dont get that kind of big risk event again, maybe we will be back to three or four hikes next year. P not necessarily the same playbook in terms of markets. China deval yvalued their curr. Oil has been moving the other way. Emerging markets current sis took it on the chin. A lot happened last year that spooked the market. Youre right, a lot is on the forecast for four rate hikes that the fed made for the following year. Well see what they make this year. Theres also hope, unlike last year, of fiscal policy, which is better. Which give the it more room for hikes. True. If you missed out on the rally and the dow goes up to 20,000, you can see the hats come out at the New York Stock Exchange what do you do . Thats a milestone but it makes the front pages and indicate that maybe we have a little bullish, or maybe its justified. Maybe this is a completely new outlook. The sevenyear bull market is not tired because we have a fresh burst of stimulus coming from a republican and trump controlled congress. Certainly the tech stocks joining none the rally. Broadening out. Broadening out. Rotating again. Knock stock left behind santoli said. And if the fed clamps down on inflation and we get this higher growth type environment, those stocks dont get derailed by higher rates. The question is do they get retailed by trump . Well see how that meeting goes today. Big focus on the fed and that tech trump meeting today. Lets round markets off with the other asset classes. Oil prices soft today. Very strong on monday. Flat yesterday. And they are down about a percent or so today. 52. 3 for wti. The dollar slipped a bit earlier in the week. Broadly flat yesterday. Today not doing much. All eyes on the fed. Particularly the forecast for next year. Gold prices this morning are a little bit positive, up about 0. 3 . To todays busy agenda its dominated by one event, that would be the fed decision on Interest Rates it comes at 2 00 p. M. Eastern time along with those members forecasts. Thats followed by Janet YellensNews Conference at 2 30. The countdown clock for cnbc is up, 8 53. 40. Stay here on cnbc for all of it. You dont have to watch the clock for all eight hours. You do. You have to watch the clock for eight hours, 53 minutes, 32 seconds. 8 30 a. M. , Producer Price index a nice read on wholesale inflati inflation. Retail sales at 8 30. 9 15, industrial production, 10 00 a. M. , business inventories. President elect trump will hold a roundtable summit with tech leaders today. Among the intended attendes aes are tim cook, sandberg, jim bay soe bezos. One noted person not attending, is dorsey of twitter. Maybe saying im not going to go because its a conflict of interest, but apparently not invited. Ginny rometty announced her firm plans to hire 25,000 new collar employees. She says that the new jobs will come over the span of four years including 6,000 added positions in 2017, next year. The company will invest 1 billion in retraining and developing u. S. Workers over the same time span focusing on vocational education. Its interesting here that she is coming out. Clearly ceos know what trump has promised voters and knows what they want to hear about creating jobs. Looks like well get that if she gets her way, the conversation turns to education, skills, and training new workers. She will be attending todays meeting hoping to urge trump to support some of the measures she writes about. Indeed, she will be there. Another appointment by president elect trump, he has tapped ryan zinke to serve as secretary of interior. The department employs more than 70,000 people. He is a proponent of keeping public lands under federal ownership, putting him at odds with some in his own party who favor their privatization. Hes apparently an outdoorsman. From montana. I think its more than 70 of federal land they control. Back to markets. Warning from the socalled bond king, jeff gundlock. Landon jodowdy has the details. Reporter he says investors should watch out for an s p reversal around Inauguration Day. Yesterday he said further rising treasuries would hurt the markets saying is the tenyear, if it goes above 3 t could start to bring into question some of the aspects of the stock market and the Housing Market in particular. The tenyear sitting just below 2. 5 . He said president elect trump could be bond unfriendly and that investors should embrace for a 6 treasury yield when four or five years. He said things could turn around after Inauguration Day when reality sets in, and that trump doesnt have a magic wand. He warns that dollar softness could be coming in the weeks ahead. To todays corporate news. Federal regulators dealing a blow to wells fargo. They determined the bank has not done enough to come up with an adequate living will plan. As a result, the fed and the fdic are placing new restrictions on the lender barring it from setting up new International Banking businesses or buying nonbank subsidiaries until it resolves the issues. This is the first time the fed imposed penalties under the living will. If regulators are not pleased with wells fargos regulators could impose fines. Penalties are not an issue for wells fargo at the moment. They could become a things if they dont hammer out things by march. Wells fargo fell about a half percent when the news came out. Back in may john stumpf said very clearly were taking action such that in october were confident well pass that. Clearly they didnt. Its a surprise they found this. I think the investors attentions are elsewhere with the fed rate hike coming, but youre right, its important still to watch. In Global Financial news, italys bmps confirming that the ecbs rejected its request to raise capital. Th the ecb told the bank a delay could cause further deterioration in its liquidity threatening its survival. The monte dei paschi board is meeting today to decide whether to launch a lastditch effort to raise cash. Part of the unicredit news yesterday, the biggest italian bank, this one, bmps is much smaller, the ceo of unicredit also saying in the press conference that he felt bmps would be sorted by the end of the year. Especially with this political limbo theyre in. They have to come up with some sort of package. They do. Then it goes back to the same issue that the greeks are like, hold on, guys, why are they allowed to do this why cant we . Theres a lot of political hurdles to get over. In deal news, some news to tell you about, Johnson Johnson dropping its pursuit of swiss drugmaker actelion. Reports say Johnson Johnson was unwilling to pay the price needed to seal the deal. Sanofi is reportedly in talks now. Theres a look at all three. J j up slightly, actelion getting slammed on the news. Coming up, well discuss d fed expectations next. Girl youre going to need me. Youre going to need us. All of us. Youre going to need our help with your water. Your air, your food. Youre going to need our determination, our compassion. Youre going to need the next generation of leaders to face the challenges the future will bring. And we promise well be there when you need us. And we promise well be there whentadirectv now. Stream all your entertainment anywhere anytime can we lose the all. Theres no cbs and we dont have a ton of sports. Anywhere, any. Lets lose the anywhere, anytime too. You cant download onthego, theres no dvr, yada yada yada. Stream some stuff somewhere sometimes you totally nailed that buddy. Simple. Dont let directv now limit your entertainment. Only xfinity gives you more to stream to any screen. Welcome back to Worldwide Exchange. Good morning. The fed widely expected to raise Interest Rates for the first time all year this afternoon. The big question is what will janet yellen say about the future . Joining us now to discuss this is paul donovan from ubs wealth management. How has the backdrop, rising stocks, bond yields and the dollar changed the outlook for what janet yellen will say and what the others will forecast this. This afternoon . I dont think it changed it terribly much. The fed is for now run by economists. The economists are going to be looking at the economic fundamentals. The economic fundamentals is you have an economy running well, so that dictates rising rates now and next year. The movements in the dollar and bond markets so far are probably not big enough to change the feds perceptions of the risks. Given quite a lot of expectations are baked in at this stage, could one of the surprises be president elect trumps reaction to any decision the fed makes . Do you think hes likely to comment on the fed does . Tweeter in chief. The risk of a tweet is something new. We have not had to worry about this before. Yes. This is relevant. In the good morning. The past we had that meant trump has been hawkish on Monetary Policy. I think thats a naive interpretation. This is a man whose business is built on leveraged money in the past. Its somebody who is very clearly not afraid of stimulus at the expense of a bit higher inflation. So i think that the interpretation of this could be quite significant. There are still two vacancies on the fed at the moment. There are potentially another four vacancies by the middle of 2018. Chair and vice chair are up for reelection. And there are questions about the very independence of the fed coming from congress. So the attitude of the president elect, i think, will be really significant here. Paul, can i also ask about the euro and where were heading, given that were expecting a hike today. Last week the ecb extended the timeline of the easing. Stark difference in the Monetary Policy were seeing in europe and in the u. S. , raising many questions as if we will hit parity soon on euro dollar. The euro bounced back a bit this week. What is your view of where that goes from here . Our view is that the euro is likely to remain relatively strong. Probably strengthen from here on in as we go through next year. Its a noisy currency pair, of course, but the direction is stronger. You have to remember, Interest Rates dont drive currencies. I wish they did my life would be easier if Interest Rates drove currencies, they dont. Theyre one of many, many factors. Think whats hatppened this yea. The u. S. Had rising bond yields. Europe has negative bond yields for the most part. The u. S. Has positive policy Interest Rates. Europe has negative policy Interest Rates. Euro dollar is basically where it was in january. So when you have all of that outperformance, the dollar can barely manage to hold itself together against the euro. If we dont get that degree of outperformance next year, fundamentals suggest the euro goes up. Theres an underlying buyer we dont know about for the euro. Paul, how many rate hikes next year do you predict . Two, though i think they should consider doing more. Theyll only do two. Got it well see what they forecast this afternoon. Paul donovan, thank you. Dont forget, you can watch coverage of the fed decision including that allimportant janet yellen News Conference here at cnbc starting at 2 00 p. M. Still to come, china making a not so veiled threat of retailiation following comments from president elect trump. Thank you for calling. 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 . 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 . This is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. Welcome back to Worldwide Exchange. Good morning. Lets get you up to speed on the market action. Happy fed day, the trump rally has continued. Didnt quite get to dow 20,000 in yesterdays session. The dow added more than 100 points and closed above 19,900. Foug futures are under a bit of pressure, down 11. S p is up about 1. Tech up about 2 points in the premarket ahead of a busy day. The feature is the fed decision at 2 00 p. M. Eastern time followed by the News Conference of janet yellen at 2 30. Lets show you the tenyear treasury note yield ahead of that. We get some ppi data this morning, wholesale inflation and retail sales. 2. 44. You can see that climbup in bond yields is hovering around the mid 240s level. Well see if anything happens with the fed if it leads to more of a bond selloff. All eyes on the fed. Thank you. To politics, china sending a not so veiled threat to president elect trump today. Staterun media saying if the u. S. Leader wants to cause problems on the one china policy, beijing will take its revenge out on American Business in china. Eunice yoon has more. Reporter when trump first started calling into question the one xhchina policy, he was worried American Business would be a political football and there could be retribution. Today he has another reason to worry. The official media has been forecasting problems for u. S. Companies. In fact the global times, specifically called out starbucks. Saying the coffee chain could suddenly lose market share to its british rival here. And antitrust authorities are now reviewing Business Practices of an unnamed american automaker which would likely be slapped with a penalty soon. Ford says it is not aware of any investigation. Gm says it wont comment on that report. But it does adhere to the lays of the land. For both of these companies, including starbucks, china is a huge market for him. Howard schultz said he believes china would be a bigger market for the company than the United States. The American Chamber of commerce had said today that he was hoping there would be stability in this relationship, beijing through the official state media says it also wants to see a stable economic relationship. But it is sending a signal beijing will use its levers of influence if trump rocks the boat. Who else stands to lose from this besides starbucks . Well, i think specifically starbucks, also gm, ford, Big American Companies that rely on the chinese market. Another one that people here have been talking about, kind of almost like a sick bet, boeing. Because boeing has such massive business here. In 2016 is supposed to have about 11 billion in orders. The state media also had suggested that china might suddenly see more airbus orders than boeing if trump were to continue to question this one one china policy. Im sure that will come up today at the tech meeting in new york. Still to come, the top stories including the big fed decision. Plus many of the nations top tech executives will be meeting with the president elect this afternoon. We will take you live to trump tower for a look at exactly what issues are on the agenda. Good morning. Its fed day. We will talk expectations. Face time with trump. The titans of tech descend on new york today to meet with the president elect. And the force is strong with the fans. Star wars diehards are lining up for the premiere of rogue one. Could the spinoff smash Box Office Records . Youre watching Worldwide Exchange on cnbc. Good morning. Welcome to Worldwide Exchange. It is busy today. Im sara eisen. Im wilfred frost. Good morning to you. Lets check on Global Markets after another rally sent stocks higher. The dow is about 9 higher since the election. It was at 18,300 then. Now weve marched almost to 20,000. Oh so close. Not quite there yet. Half a percent away. Yeah. We closed at 19,900. The levels are important. Brings you back to dow 10,000 during the tech boom in 2000. Can we get to that round number . Well see. A lot going on today. Dow futures down 11. S p futures flat. Nasdaq higher by 1 yesterday. The early action in european trade so far shows a bit of a pause in the buying. Right across the screen. France down a half percent. Italy also watching carefully after that big bank rally yesterday on some positive unicredit news. Illy down 0. 3. Spain down 0. 8 . Overnight action in asia. Weakness for stocks. There the shanghai closing at a fiveweek low. The nikkei in japan closing up barely. Hong kong also flat ahead of the fed. In terms of data out of asia, the Tankan Survey was better than expected. We said how retail manufacturing has been better in china, but the driver of that is credit data, and that was stronger than expected. Banking lending picking up. Mortgage lending failing to slow down, so, yeah, the data is better but its very much stimulus led. Something to bear in mind as we go into next year alongside the fact that weve seen quite a lot of capital leaving the shores of china. Still some risks around. Currency has been weakening. You can also attribute that to dollar strength. It is true that stimulus is driving emerging markets as a whole will be a big question next year if the Federal Reserve continues this pace of Interest Rate increases. If we continue to see the bullish momentum in u. S. Stocks at the expense of other countries, continued heated trade rick santelhetoric from dp and others. Investors are focused on domestic policy improvements and dont forget, january, february last year, china derailed domestic markets. Were forgetting that a bit at the moment. Oil prices derailed markets earlier this year but not doing that ending the year. A little soft this morning, down 1 , but after a decent bounce the last few weeks. 52. 4 on wti. Tenyear treasury note just slipped a bit. Certainly still significantly elevated since the election. 2. 44. Can we get movement around that today . Not so much depending on whether we get that. 25 basis point hike, but more hikes moving forward. The dollar not doing much at all. Pretty much bang on flat against all the currency pairs. Hit a high against the yen on monday. Since then slipped. Gold prices bouncing back a bit today. Having slipped a bit yesterday. Now to the intersection of politics and business. There is an important meeting on president elect trumps agenda today. Hell gather with the biggest names in technology. John harwood joins us from trump tower with what to expect from the roundtable. So much sub text here, john. So many plots to this meeting, sarah. The Tech Industry was opposed to donald trump. They thought Hillary Clinton was the more modern, tech friendly candidate. You had donald trump calling out specific tech executives during the campaign. He chastised apple for making products overseas. Went after jeff bezos for accusing him of using the Washington Post to hurt him and try to protect his position in washington. You had the use of tech platforms for fake news, for the russian hack that took place that will be the subject of a bipartisan investigation. And then you have the trade policies that donald trump has threatened to implement, pun iring companies that go overseas. Theres a lot to talk about. I would expect this meeting to be a courteous meeting. People sitting down with the incoming president are going to be respectful to him. I would also expect some executives to stand firm behind the things they believe in, and the idea of a modern economy they stand for. The Tech Industry represents some of the highest value added work within the u. S. Economy. A model for how the United States can lift incomes longterm if we can figure out ways to add jobs that pay well within this country. Thats Donald Trumps agenda. Well see where they come out. Quite a lot of focus on the fact that jack dorsey is not expected to be there. Any more news on the background behind that absence . No. Not intel on dorseys absence. The chief executive of uber also wont be there. Theres going to be plenty of big games there. Yesterday trump met with bill gates. He got a little warmup for what he will be encountering today. It feels like in terms of representation from big business in the future Trump Administration, its very much industry, sort of old economy, big banks like Goldman Sachs represented, big oil represented, not much in the way of Silicon Valley and technology. Depends how open president elect trump will be that some of these policies happen and how they can also stimulate the economy and bring back jobs. Look, the feeling is mutual. Aside from peter thiel, you had very, very little tech support for donald trump. I think peter thiel who is on the board of facebook was part of the orchestration of this meeting along with jared kushner, the president s soninlaw, Reince Priebus the chief of staff. Theres a feeling out process and how the two sides live together. I dont think there are a lot of tech executives who would view favorably the idea of coming into a Trump Administration, even if they were asked. I think the social values intersecting there with some of their economic policies. Not to mention immigration. Absolutely. It will be fascinating to read the body language. Glad youre there to see how they look going in and coming out. When they come down that elevator at trump tower and face the press pool, well read a lot from the expressions on their face. Hopefully theyll gave us insight into the meeting. I wonder if theyll have the photoop ala kanye west. Thank you very much for joining us, john. I wonder whether his whole administration when hes in washington will be this fascinating . Who is he talking to today . Who is he visiting . The reality show. Unbelievable stuff. In corporate news, learning more about the future of Goldman Sachss leadership following the departure of gary cohn, both coo and president , now moving on to join the Trump Administration. David salomon and current cfo Harvey Schwartz will split the roles that gary cohn took. Martin chavez will assume the role of cfo. The main role being split, going to salomon and schwartz. Couple of points. Salomon is only two years younger than gary cohn. A lot of people saying cohn did not feel he had the chance to be ceo, because if blankfein steps down, he would be near 60. Salomon is not that much younger. But now salomon assumed to be the favorite to take over for black fine, for the key reason blankfein, cohn and schwartz have the same background, commodities and security background. The belief that anybody can reach the trade without challenge, salomon cohead of the Investment Bank has that at his background. For now doesnt seem to be n influencing investors. Some saying this isis a positive because it gives the second wrung that there may be a change. They wont be disillusioned that no one will be promoted. Social media exploding with tributes from fans and stars in response to the sudden death of alan thicke, the former star of growing pains. Suffering a heart attack yesterday in los angeles. Ellen degeneres tweeting america loved alan thicke. So sad hes gone. Ben stiller saying just heard of alan thickes passing. First job in l. A. Was as an intern for him. And bob s ashgsagat saying he w so sadly missed. Never saw growing pains myself, but a lot of love and outpouring for him. Star wars fans lining up at the chinese theater in l. A. Aheard of the premiere of the rogue one. The latest of the Star Wars Franchise is expected to bring in more than 300 million at the Global Box Office this weekend. You were up all night waiting in line, right . I did see the last one. I enjoyed it. Me, too. Last one was good. James corden is at it again. This time bruno mars joined the host of the late late show for his viral moment. Take a look. Oh theyre ready for me you make me feel like ive been locked out of heaven far too long because uptown funk going to give it to you, its saturday night were in the spot dont believe me just watch updown funk you up, uptown funk you up bruno mars made for this a bunch of outfit changes there. They liked to get the street involved there. It would be fun to see them pass by. I imagine that is a massive excitement and energy to take part in. Another outstanding bit there james corden. Great year hes having. Britt in america. Coming up, todays must reads, first we head to break, a look at european equities which are soft today, just slipping a little bit after very strong six or seven trading sessions and of course treading water ahead of the fed. Back in a minute. Welcome back. Time for our mustread stories. A lot to choose from today. My pick is in the usa today because its penned by ib ibm ceo Ginny Rometti meeting president elect trump at trump tower. We need to fill new collar jobs that employers demand. Saying she will be hiring, which is the right message to be sending for a tech ceo going into trump tower today, writing one step in terms of collaboration with the government would be to pass an update to the perkins career and Technical Education act. Leaders should focus more on connecting High School Graduates and others without fouryear degrees to jobs. We should modernize federal College Work Study programs which dispense nearly 1 billion to help students work to earn college tuition. Currently most of those jobs, she says, federalized with federal funds are lowwage in College Cafeterias and libraries. There are specific policy prescriptions for government. At the same time shes saying what ibm is doing, hiring thousands of workers in the u. S. Next year and over the next few years. Also subsidizing different Educational Programs as well to make sure that its not just very high level, higheducated engineers that these Tech Companies are hiring. If the conversation is about that today that could be productive. Big focus not just here, but globally, trying to boost productivity for those less qualified people. My pick today is in the financial times. Tehran is the real victor in the battle for aleppo. I bring this up, because it comes hot on the back of headlines around the world about whats going on in aleppo. The fact its likely to fall any day. On the back of Rex Tillersons appointment. Russias action in syria is not even about syria, its about its global role and a coalition of equals with the u. S. For iran, as a regional and shia muslim power this is different. Russia and iran are allied in syria but differ on what is coming ahead with president elect trump. Its a difficult situation. If trump felt he could step back away from the International Scene and focus on the domestic issues, i think he has a wakeup call coming. The appointment of Rex Tillerson so fascinating in terms of this debate. Its a difficult one. Difficult question. No and well hear a lot about it during the hearing. Rex tillerson has to go through the Senate Confirmation hearing. All of the issues about the potential hacking from russia, the complex syria relationship will all come into focus. And the iran nuclear deal. Tillerson and other trump picks face extreme vetting is how usa today put it. Were approaching the top of the hour, that means the team is getting ready for squawk box. Melissa lee has a look at whats coming up from new york city on a busy wednesday. All about one thing, as you guys know, fed, fed, fed, fed. Well talk about the fed as we count down to that 2 00 decision, the 2 30 press conference. Talking two sectors that have come under fire in the Incoming Trump administration, biotech and tech. Tech was an outperformer in yesterdays session finally. And the tech summit at trump tower. And were on dow 20,000 watch. A guest were having on says theres another 20 go in this rally. And a third of the team is right next to you, sara. Well see wilfred later. Ill be racing that way. See you shortly. Squawk box kicks off in 11 minutes time. Still to come, stocks continue to hit new highs. Will todays meeting of the fed fuel or challenge that rally . Well have michael barr how he is positioning himself. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. 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 matters to you. Morgan stanley. Welcome back. The dow jumping more than 9 since last months president ial election. Today the market is focused on the fed meeting. The dow is 90 points from 20,000. Just under a half percent away from that mark. We wonder if we cross it today. Michael farr joins us to help answer that question. Michael, good morning to you. The futures just a little soft on the dow. Expecting a slight pullback. Is it impossible for us to rally until we get a clearer red prediction from the fed . Lets see . No, its never impossible for the market to spike one way or the other and cross that 20,000 mark. It could happen. This fed meeting and the remarks that will come from it that well hear later today will be very important. The fed has a big problem. They have all of the remarks from the Trump Administration saying that well have these new initiatives that will lower taxes, increase Infrastructure Spending and defense spending, and the fed is nervous about inflation. Theyll try to normalize Monetary Policy, raise rates here slowly, and now the fed is moving into a role with where they could be at odds with what mr. Trump wants to accomplish. They have some real complications as to what happens if he starts tweeting in the middle of the release or the press conference. It will be an important day. I love how thats the biggest risk of the fed meeting, whether or not the president elect will tweet. We had you on december 1st in the middle of this trump rally. You were super skeptical, say its overextended, not looking at the risks, yet it climbed higher almost to dow 20 thosh,0. Are you capitulating or still saying its overdone . Sara, i will probably bore you to death with my skepticism. Im always fully invested. Im a longterm investor. My annual turnover last year in my portfolio was about 16 . While im cautious, i dont move stocks in and out. If i think its expensive Alan Greenspan thought it was expensive at 6,000 when he said irrational exuberance, eight months later it was 8,000. I think my skepticism is very much warranted. Regardless of the shortterm market actions. I think the markets have been pricing in all of the benefits of a lot of the trump proposals without the consequences, ignoring most of the potential consequences. This is probably a song ill sing for a while and did in 1999 as well. I was the old curmudgeon they brought on and said this doesnt make sense. Michael, big meeting between President Trump and various tech leaders today. What do you think of the tech sector . It has started to take part in the rally more eventually. The rally has broadened, tech is playing catchup. What is your view of the tech sector . I like the tech sector. I continue i always liked it i like the innovation and productivity it creates. Productivity is something we need economically now. Kind of desperately weve been lacking increases in productivity for years. The wild card in the discussions this morning are what you all were talking about earlier on the program, thats whats going on in china. Chinas response to some Companies Like starbucks, ford, are they really going to create headwinds because of the president elects International Policy or trade policy . I would think those tech leaders today will be laser focused on the International Business environment essentially that he will be creating, fostering or stirring up. Ultimately we have to make sure those benefits accrue to the u. S. Thank you very much, michael. That china question, it will be interesting to see if that will come up from the tech leaders, they are betting on growth in china. These trade tensions have to make them nervous. Would be interesting if tim cook would say to him, if you do block trade to china this is how much the iphone will go up for consumers. All eyes on the fed and the fed meeting covered throughout the day. Squawk box is next. Ict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Tadirectv now. Stream all your entertainment anywhere anytime can we lose the all. Theres no cbs and we dont have a ton of sports. Anywhere, any. Lets lose the anywhere, anytime too. You cant download onthego, theres no dvr, yada yada yada. Stream some stuff somewhere sometimes you totally nailed that buddy. Simple. Dont let directv now limit your entertainment. Only xfinity gives you more to stream to any screen. Good morning. Dow 20,000 within striking distance. But could the fed announcement spoil the party . The strategy session is straight ahead. Tech meets trump. The ceos of apple, google and tesla meeting the president elect. And china will reportedly take punitive action against the u. S. Automaker for what it calls monopolistic behavior. December 14, 2016, squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome here to squawk box on cnbc. Im melissa lee with andrew ross sorkin, joe and becky are off today. Equity futures at this hour, locking to maybe approach dow 20,000. Looking to open lower on the dow. Down by about 8 points. S p adding about 1. 25 points at the open. Nasdaq down about 3. 5. All of this in anticipation of the fed this afternoon. Lets look at whats going on overnight in asia. After china came out with stronger industrial output numbers and retail sales numbers. Slight gains in the hang seng and the nikkei over in japan. The shanghai down by a half point. European equities await for the