Welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost. Very good morning to you. It is the last week of 2016. So we are playing the top songs from the year. This was this year . Seems older. It does, indeed. But i trust our expert producer. Dj sophia nails it every day. Lets check in on the global markets. Day after a big selloff on wall street. Big relative to where weve been lately. Worst day for the s p since back in october. Interesting because this time yesterday, i think you and i had a bet. We did futures were up double digits. We thought yesterday was the day that would hit 20,000. Not so much. So so i owe you lunch. Nice. Arbitrary bet. Im never going to say dow 20,000. We already said it about four times. About a thousand times over the last week. No dow 20,000. We have pulled further and further away from that. We saw a triple digit decline for the dow. You mentioned the second one since the election. Rare to see big selloffs. Dow futures are down 10 this morning. S p futures flat. Nasdaq futures down 7. The tenyear treasury note yield, a reversal of all of these trades and some buying towards these last few days of the year. Thats pushed the yield further south 2. 47. Strong auction yesterday. Rebalancing towards the end of the year. Hearing a lot of anecdotal evidence that Pension Funds are doing the selling of stocks and bonds towards the end of the year. That was a big move yesterday. Yesterday around 2. 55, already away from the highs of 2. 64. So another decent move away from the postelection trend. So lets look at data overnight. South korea cutting its 2017 forecast of growth forecast, down to 2. 6 from 3. 0. Citing increasing Interest Rates in the u. S. And trumps trade policies. Uk house prices increased slightly in december. Deloitte releasing its quarterly survey, morale at an 18 month high in the Fourth Quarter, helped by strong Economic Growth. Still uncertainty about britains departure from the eu caused firms to be reluctant when it comes to the investment spending. Lets check in on european equities right now. Softness continues spilling over from yesterdays selloff on wall street across the continent. The dax is down about 0. 3 . The ftse 100, pretty flat. It is hovering at a record high. Helped by a surge in the miners yesterday. Industrial metals rebounding. Spain and italy, spain down about 0. 2 . Nothing sharp in terms of declines, but taking a step back from the highs. The ftse 100s alltime high generally coming because of a weak currency. Thats also why we have seen strong gains yet to date for germany and france, particularly in the final quarter. Mentioned this yesterday, very different picture to what we got in the u. S. The u. S. Rallied despite a strong dollar. Germany, france, uk, japan rallying because of the opposite reason. They get a boost in earnings. As for asia overnight, the stronger yen in the overnight session hurting the japanese market. The nikkei closing down 1. 3 . The topix also had a rough day on the back of a stronger yen. Seeing a reversal of the trades that have been the post election theme. Hong kong is a star performer, closing up 0. 2 . Toshiba face its third day of massive declines, weighing significantly on that company and the sector. One of the reasons the nikkei is down. Oil prices, they have been on a decent steady gain. Oil had its seventh positive session in a row yesterday. Up 0. 3 . Today down in terms of wti by a similar amount. The international gauge of brent is slightly positive. Generally speaking, up about 10 for the quarter for oil. For the year, up 46 . A look at the dollar, which was stronger yesterday by 0. 3 against a broad index of currencies for its third positive session out of four today. It is giving that up. Decent move for the dollar south against all of those major currency pairs. Big move against the yen. Gold, has had a decent bounceback is up again today, 0. 11 . 1,148, still down since the election but up for the year as a whole. Add it all up, you have a 14 gain for the dow, 10 for the s p, 8 for the nasdaq. This is a pause. This is a pullback. Hard to tell if this is anything more than that. There was no real catalyst for the selloff yesterday. Saw the vix go above 13, gauge of volatility. Nothing alarming, just maybe normal correction of some gains that weve been seeing. Some yearend portfolio rebalancing. Nothing alarming. Interesting to point out two particular factors. We did see that move in yields. For the first month of the trump rally it was very much yields going up, equities going up. Ie selling of bonds, buying of equities. That reversed yesterday. Interesting to see if that trend continues. That could make us think things over more. The other thing, futures up yesterday. Up at the open as we were doing squawk on the street. The top stock at the open, goldman sachs. At the end of the day, financials were down 1. 4 . With that also saw its worst day in since the election. Thats quite interesting in terms of the turnaround. Similar from the bonds to equities point, it was financials, something so strong since the election that led to the downturn yesterday. It was a broad profit taking, but as you said at the top, not massive. 0. 8 for the s p. Potentially in part triggered by pending home sales which came out during the 10 00 hour which showed softness. Those are signed contracts, havent been closed on homes. Housing has been a big part and chunk of this economic recovery. We have started to see rising Mortgage Rates along with those rising treasury yields which could put a damper on some home sales. Something to watch going forward. Final point, volumes lower. To politics and the u. S. Economy, president elect trump announcing sprint will be bringing back 5,000 jobs to the u. S. From overseas. Another Company Called one web will be adding 3,000 jobs in the u. S. Hes taking credit for the move. Watch. Sprint, i just spoke with the head person, he said because of me theyre doing 5,000 jobs in this country. They just put a release out, hope has it. Youll see it. Thats that. Massa is doing 3,000 jobs with, as you know, one web. The president elect said the deal was done through softbanks ceo. You heard him refer to massa. Softbank owns 80 of sprint. Invested a billion dollars in one web. Earlier this month trump and softbank agreed to invest 50 million in the u. S. And 50,000 jobs. Those 5,000 jobs are part of the 50,000. Sprint said it is excited to work with the president elect. The founder of one web, that other company, will be on squawk box at 7 40 a. M. Sprint doesnt have any of its own overseas jobs. But i guess it works through employers and outsources when it comes to some Customer Service jobs. So it will bring those to the u. S. And sort of adding u. S. Positions in its own stores. Its expanding. Its been a great stock. The ceo has been doing a good job in terms of fighting debt. That was always going to be a big problem for sprint. Winning back subscribers in a tough competitive telecom industry. This is initially 8,000 of the 50,000 jobs that they promised. Interesting to see donald trump yet again claiming credit for this. To switch focus to what he claimed credit for yesterday, the market moves and data coming through, there will be blips, no matter what. However positive you are, somewhere in the fouryear term, well get a pullback. He will take credit for that as well . Will he come out with encouraging Forward Looking Statements . Of course were due a dip, but it will bounce back or something. Far its great press headlines for him. Great politics. Hes not even in office yet. When was the last time we saw a sitting or soon to be sitting u. S. President just calling up, making deals, going straight to the companies and ceos. President elect trump is considering moving the department of Veterans Affairs towards privatization. This according to a transition official. Trump spoke about his planned overhaul last night. I dont want to see veterans waiting in line for two weeks. In many cases they have a minor illne illness, it takes so long to see a doctor it becomes something more. People are dying. We will fix it properly. Trump has been meeting with a number of Healthcare Professionals as he searches for someone to head the va. The agency has been rocked by scandal since it revealed in 2014 that voeterans were dying while waiting fto see physician. This morning, weekly jobless claims are out at 8 30 a. M. Eastern. Forecast calling for a pullback in firsttime claims for unemployment. At 8 30, the advanced report on trade deficit. Especially now, trade such a heated political topic. In tech news, twitter is exploring new opportunities to build its audience. Landon dowdy has the details. Reporter so glad we got you to do the intro, just so we can hear you say twitter. Twitter is launching 360 degree Live Streaming video offering a panoramic view of the world, something that facebook and youtube already offer. Now anyone can watch twitter 360 live video, but only select partners can go live via the periscope app. You plug the camera into the bottom of the phone. Yesterday twitter said the new feature will get users to get a look at personalties and go behind the scenes at exclusive events. This comes after twitter tries to find a way for itself after a challenging year. Its been the subject of potential major acquisitions, and struggles with stagnating user growth and a brain drain in the new product department. Looking at the stock, for 2016, shares of twitter down almost 29 . Back over to you. So hard to believe with how much the president elect uses it. Wonder if he gets privileges for the 360 periscope video. Im sure he will be granted all privilege desired. Landon, thank you. A stock to watch today, toshiba shares falling sharply for the third day in a row. Down another 17 on credit downgrades. Earlier this week the company said it faces a possible multibillion dollar writedown of its u. S. Nuclear business. Po it has been downgraded deep near junk status. On the flip side, in japan, shares of takata surging today on reports that the company could settle u. S. Criminal charges before the Obama Administration leaves office. The part of the settlement would include takata pleading guilty to misconduct. The Justice Department is investigating whether the company hid information from safety regulators about the dangers of its defective air bags, which have been linked to at least 16 deaths. New details on apples efforts to manufacture products in india. Indian government officials will probably meet early next week to evaluate incentives sought by apple to manufacture products in that country. Making goods in india would allow apple to open stores there. The tech giant only holds 5 of the Smartphone Market in india. It has been a big focus for ceo tim cook. He brings it up often on the earnings calls as a potential growth area. Still to come, financials have been on a tear since election day. Well look at what could be in store for the sect nor for 2017. First, we want to know what you think was the Top Investment of 2016 . Send us your answers. Well read some of them on air before the show ends. I hope somebody was invested in nvidia. That was a good one. Or bitcoin. Many others. Get in touch with us. Back in a couple minutes. Where, in all ofhis, is the stuff that matters . The stakes are so high, your finances, ur future. Howyou dont. Lve thi you paner with a firm that advises governments and the une 500, and, can deliverighterson to person, on wt matters to you. Morgan stanley. Anything with a screen is a tv. Stream 130 live channels. Plus 40,000 on demand tv shows and movies, all on the go. You can even download from your x1 dvr and watch it offline. Only xfinity gives you more to stream to any screen. Download the xfinity tv app today. Welcome back to Worldwide Exchange. Good morning. Lets get you up to speed on the market action. Some softness after a selloff yesterday. Second triple digit decline for the dow since the election. Dow futures down a little more than nine points. Nasdaq futures down around six. S p about flat line. The dollar pulled back in overseas trading action. Dollar is weaker for a change against the japanese yen. 116. 32. The euro is stronger. 1. 0474. And the british pound is stronger, which looks like were getting a reversal of the trades. Also seeing some buying of u. S. Treasuries, pushing yields lower. Potentially profit taking on those winning post election trades. Even the british pound is stronger. Not that much of a surprise. Great currency. Any way. Moving on. We are just he days left in 2016, cnbc is getting out the playbook of what could lap in various sectors of the year. Today we look at financials. Having underperformed not just for most of 2016, but most of the last decade, banks have taken off in the Fourth Quarter. Not least because of the election. As we head into 2017, here are the things to watch. The yield curve will be key. Of all the Fourth Quarter factors that have driven the banks rally, the most important is the rise in Interest Rates. Whether the yield curve maintains its recent rise and steepening will be the major factor for banks share prices. Bank of america is the most geared of the big names to Interest Rates which is why it has performed so well since the election. Other trump related changes, the key thing here, whether he can deliver more positive surprises as 2017 arrives. In terms of deregulation, repatriation of cash from overseas. All of which is very positive for banks. But how much is already priced in . A glance at how valuations have changed in the last few months shows the improvement in Investor Sentiment to the sector, but also the scope for it to improve further based on longterm averages. Risks remain. The main outstanding risk is credit caquality. Loan growth has been strong in 2016 and fears remain about how late in the cycle the economy is. The improvement in oil prices in q4 has been another shortterm positive in this regard. My voice is very serious and boring on those packages. I think its good. Very professional. You think . Sounds like a documentary. Am i unprofessional during the show then . It was a little more formal. The key point is the yield curve. Interesting to see it step back today and the last couple of weeks. Thats why share prices and banks have moved up, more than the hopes of deregulation and tax changes. So i think you can still be positive on banks from here, if you think the yield curve move has been justified. If you think the yield curve move will continue to steepen. In other words, better economic data, getting progrowth moves out of washington. Gdp hopes. Fed rate hike hopes. Exactly. So we dont need cuts of Interest Rates again, but less hikes. Question, do you think are you hearing better for regional banks versus there seems to be a divergence of opinions. The first is who is more geared to the yield curve, that can be a big bank or regional bank. In terms of deregulation, absolutely. If deregulation comes, regionals will benefit more. The big banks are already in good position. They have dealt with the regulation. It who will benefit the most if deregulation comes, smaller banks. Thats what Girard Cassidy told us yesterday, especially if they dont have to do stress tests. When we come back, the top political stories. First, heres todays National Forecast from reynolds wolf. Good morning. Lets look at that forecast. We have breezy conditions in the windy city. 34 degrees is the expected high. Atlanta, showers, maybe a thunderstorm or two. That will be earlier in the day, this afternoon drier air moves in. Upstate new york, you could be dealing with snowfall. Dallas, fairly mild conditions, 58 degrees. Denmark, 25. Seattle with rain. Los angeles, 77 degrees. The mild air will continue for parts of the soirn plains and along the gulf coast. Miami sitting pretty. 84 degrees expected. New york, breezy times. We can expect that cold air to stay there place for parts of the Northern Plains and central rockies. We are going to commercial, after that, more Worldwide Exchange. Good morning. Welcome back to Worldwide Exchange. Yesterday we did open in positive territory. The dow jumped about 0. 3 , but ended down triple digits, around 0. 6 with the s p, the nasdaq down further, around 0. 8 , 0. 9 . It was a negative day. We saw bond yields slip as well. Traditional riskoff move. Selling of equities, buying of bonds and financials. Today as you can see, pretty much flat. We will probably pause that decline. That decline, though it was the best part of 1 for the s p and nasdaq, nothing too much to worry about unless it proliferates further from here. Oil prices, they will seven Straight Days of gains for wti yesterday. Up 0. 3 . Slipping a slight amount this morning. Sara . To politics. Russias Foreign Ministry says if the u. S. Imposes new sanctions over hacking claims it would be an attempt to disrupt cooperation between the to countries. The Obama Administration is expected to announce those measures today to retaliate against moscow for allegedly hacking the Democratic Party ahead of the itself election. Republican senator Lindsey Graham says russia should expect tough sanctions. When asked about the issue yesterday, president elect trump said the u. S. And russia should lay the controversy to rest. I think we ought to get on with our lives. Computers have complicated lives great greatly. The whole age of computer makes it where nobody knows what is going on. You have speed and everyone else, im not sure we have the security needed. I have not spoken with the senators. I will be over a period of time. Trump has cast out on the findings of the u. S. Intelligence agencies that Russian Hackers interfered in the election. Another Foreign Policy issue that puts the sitting president and the president elect at odds, russia and israel. Three different stories we have used clips from trump on that impromptu talking. From maralago. President elect trump taking credit as two companies decide to bring 8,000 jobs to the u. S. Well talk to a Politico White House reporter about what happened behind the scenes. And also what was the 207to investment of 2016 . Steve says berkshire and nvidia. Good morning. Santa runs out of steam. Futuring poie ins pointing to a open on wall street. And president elect trump praises two companies for bringing 8,000 jobs to the u. S. Its thursday, december 29th, youre watching Worldwide Exchange on cnbc. A lot of good songs in 2016. Welcome back to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. To explain saras point, we are playing all the best songs of the year for the remaining couple days of 2016. You mentioned the santa claus rally proving elusive, just like that dow 20,000 level. Lets check in on global markets. More softness in the u. S. Equity futures. Saw a selloff on wall street. Futures just flipped positive. We will see what we get in thinned out holiday trading. Dow futures down five. Thats an improvement from a half hour ago after a triple digit decline. As for the nasdaq, futures down about six. If also fell off of recent record highs yesterday. Some of that softness is weighing on early european trade. Lets show you whats happening. The ftse 100 in the uk reached an alltime closing high yesterday thanks to the weaker pound, the comeback in Industrial Metals helping the mining shares. Its hovering around that record level. The dax is selling off about 0. 3 . And some fractional losses across italy, spain and france. The overnight action in asia. The japanese stock market did not like what it saw in terms of a strengthening yen. We got that in the u. S. Session. It continues this morning. Thats why the knee snikkei sol 1. 3 . You also mentioned toshiba, more problems there. Shanghai comp closing down 0. 2. I think worth pointing out in terms of international markets, the likes of japan, france, germany, also very strong in the Fourth Quarter, for Different Reasons why the u. S. Has been rallying. They love that stronger currency. Exactly. About 9 of gains for france and germany. Lets look at broader markets. Oil prices seven Straight Days of gains. 0. 3 for wti. Its just below 54 a barrel today. Brent, the international gauge, is higher by 0. 5 . Lets look at the tenyear treasury note. Yesterday it was a traditional risk off day in terms of selling of equities, buying of bonds. It was a reversal of the theme that drove the first three, four weeks of the trump rally. Back below 2. 5 on the tenyear. The high we hit was 2. 64 in terms of yield. The dollar was stronger yesterday. It was up 0. 3 for the third day of gains in four. But markedly lower today against all of the euro, yen and british pound. 0. 7 move in the yen higher. The euro move of 0. 6 has not derailed european trade. Just below flat. Gold prices, a decent rebound in the last week or so. Higher today by 0. 6 . Turning to todays agenda, there is a pair of economic reports this morning. Weekly jobless claims out at 8 30 a. M. Eastern. Forecasts calling for a pullback in first time claims for unemployment following a big jump the previous week. Still jobless claims signaled strength in the labor market over the last year. At 8 30, advanced report on novembers trade deficit. In geopolitical news, last night trump took issue with the Obama Administrations decision not to block that United NationsSecurity Council resolution, critical of israeli settlements. Listen. Im very, very strong on israel. I think israel has been treated very, very unfairly by a lot of different people. You look at resolutions in the United Nations, look at what happened, theyre up for 20 reprimands and other nations that are horrible places, horrible places, that treat people horribly havent even been reprimanded. So theres something going on. I think its unfair to israel. His comments coming in the wake of a speech by outgoing secretary of state john kerry on his vision for peace between the israelis and the palestinians. Also president elect trump announcing sprint will be bringing back 5,000 jobs to the u. S. From overseas. Another Company Called oneweb will be adding 3,000 jobs in the u. S. Trump taking credit for the move last night. Sprint, i just spoke with the head person, he said because of me theyre doing 5,000 jobs in this country. They just put a release out, hope has it. Youll see it. Thats that. Massa is doing 3,000 jobs with, as you know, oneweb. The president elect said the deal was done through softbanks ceo. You heard him refer to massa. Softbank owns 80 of sprint. Invested a billion dollars in oneweb. Earlier this month trump and softbank agreed to invest 50 billion in the u. S. And aimed to create 50,000 jobs. Those 5,000 jobs are part of the 50,000 positions, but they will be funded by sprint. Joining us now is tar tara palmari. President elect trump is taking credit for a lot of things. Lets look at this sprint thing and jobs. Its decent but small relative to the bigger announcement he made with the ceo of softbank a month or so ago. Hes taking credit for any push of jobs in the United States. The truth is that deal was created back in october before he even won the elections. Also sprint recently slashed 2500 jobs in the u. S. So its probably a bit more of a restructuring deal. But its interesting because it seems like these Business Executives are seeing this as a way to have influence on the Trump Administration by vowing to keep jobs. Its probably cheaper than hiring a lobbying firm. But you get to have a chat with the president of the United States if you agree to keep jobs. He gets publicity, your company gets publicity. Its kind of a mutually beneficial relationship. Yes, he can claim credit for plans that were made months in advance of him winning. You used the word influence. I wonder what you have in mind here specifically with mass ias of softbank. Thats the kind of deal you do need influence for. Thats you would be spending millions of dollars in public affairs, lobbying, but, hey, if you can get the president on the line by promising to keep some jobs in the u. S. , thats much more effective. All eyes starting to foe k i towards january 20th. You were writing there could be a dearth of former president s there. Is that rare . It is. For obama, all the former president s attended. George h. W. Said he is not attending because of his health. But the only president who has actually rsvpd is jimmy carter. My sources tell me the bushes and clintons are still weighing whether or not to come. Obviously the clintons, every wins, cringe, tv cameras will be panning to Hillary Clintons face the entire time. She was the first lady and invited as the guest of former president bill clinton. Lets not forget about the bushes. Trump mocked jeb bush on the campaign trail relentlessly. Its a sore spot for them. George, george w. And george h. W. Did not endorse trump. They are all sort of weighing their options. We know obama will be there. Because theres the transition of power, the handoff. He takes the helicopter, flies away. Thats part of the inauguration process. It may just be jimmy carter. Final comment on israel. What is the significance of a lame duck secretary of state harshly criticizing, tough talking one of our closest allies less than a month before we get a new president . Its sort of a last ditch effort to continue the israel policy of the Obama Administration. They literally have about 20 days left. So theyre trying to really reinforce their policies right now. Of course, trump is saying dont worry about what they say. Its a new administration, its a new time. Its sort of cementing what they have been saying. It was symbolic that the u. S. Abstained from voting against the resolution for israeli settlements, what do they have to lose now . This is obamas legacy. This was part of his package so im not surprised to hear this rhetoric at the end of his presidency. Great stuff. Thank you very much for joining us. The founder of oneweb will be on squawk box at 7 40 a. M. Talking about the decision to bring jobs to the u. S. Announced by president elect trump last night. In corporate news, weve been watching shares of nvidia which soared more than 230 this year. Site drawn researchs andrew left argues the stock is not worth the current valuation. He joined fast money last night. I want to know what has changed in the past two weeks . Left is shorting the stock. Down a lot after hours. Time now for our top trending stories. Hollywood remembering Debbie Reynolds after her sudden passing yesterday. Just one day after the death of her daughter, Carrie Fisher. Reynolds, one of the biggest stars in the 50s and 60s was known for her roles in singing in the rain and the unsinkable molly brown. Debra mess iing tweet ining deb went to be with carrie. Its such a devastating punch. She was my mom for years. And ellen saying i cant imagine what Carrie Fisher and Debbie Reynolds family are going through this week. And william shatner, Debbie Reynolds was one of my last hollywood royalty. It breaks my heart that she is gone. Lyft crowning the Top Destinations of 2016. For the secondyear in a row, the company revealing the passengers most visited locations including restaurants, bars, hotels and event spaces. Nashvilles acme feed and seed the most visited restaurant in the country and the abby in l. A. Is the most visited bar. The mgm grand in las vegas is the most visited hotel. I have not been to any of those three. Maybe i should hit all of them in 2017. You should. Though ill be behind the curve. You have to go to nashville. Todays mustread stories. First, check out the trading picture in europe at this hour. Some weakness across the board. German dax down about a quarter percentage point, fearing the worst. Ftse 100 hovering near record high. Stay tuned, youre watching Worldwide Exchange on cnbc. Whatsm spir wor . Costs 14. Ike . cheers whats it worth to talk to your m . Whats the value of walk in the woods . E value of capital is to create, not just wealth,but thi. Morgan stanley welcome back to Worldwide Exchange. Two of our mustread stories, my pick is in the financial times. It has been a brilliant year in politics, written by paul nuttle, the leader of the new uk independence party. The kind of people who have had their world shaken to the foundations by the Eu Referendum result and the surprise win by donald trump are the kind of people who needed to have their world shaken. Those inside the out of touch westminster bubble who have been ignoring the frustrations and dissatisfaction of the rest of the population for decades. Important point of view to take on board. Mainly focused on the uk and brexit, but mentions the u. S. And the trump victory. Framing it as a super positive year. And he also picks apart various commentators who start their end ofyear pieces by saying, oh, its been a terrible year. Surely next year cant be as bad. Theres a lot of that. Saying this has been a positive year. And saying those people inside the elite, both in the press and politics are already missing the point. We were very much in sync. What i picked was in the wall street journal. Ed lazeere, Holiday Cheer from the dismal science. A lot of gloom and doom about the labor market and the economy. He reminds us of all the reasons to be thankful in this country. He says americans are industrio industrious. Data reveals that hours worked per working age person is highest in america among the g7 countries. Hours are about 45 higher in the u. S. Than those in, say, france, the lowest of the g7 countries. American exceeds all other g7 countries in work effort. So a lot of statistics in here about the american exceptionalism in terms of workers and the opportunity to rise. The fact that the 20 top earners did not come from that kind of means. Sort of other reminders as we head into the new year. We should be grateful. Absolutely. We certainly should. I wonder whether our next guest will be grateful of those two picks, the mustreads. We approach the top of the hour, joe kernen is joining us to preview squawk box. He likes everything he hears here. Everything is every year is the best year, i think. When you finish it and look back. But it was the best of best of times, the worst of times. Who said that, wilfred . Some guy. Wasnt he english . Dickens . Yeah . Remember him . I dont know. Charles dickens. Could have been. Im afraid, if thats one of his quotes, i cant agree. I thought that would be any way. Yikes. Okay. That was dickens. So i think it was a great year. But then look what happened yesterday. The heart and the mind are strange things. Were always surprised when Something Like that happens, when someone dies of a broken heart. We see that actually, you know, the couple that lives together for 50, 60 years, one of them dies, the next day the other one dies. Its very strange that things like that are real. And it makes you take a step back and think a little bit. We are in kind of a netherworld. Were between president s, its like we got two of them or something, or none. Or zero. I dont know. Its weird. Theyre both sharing power almost. Very strange. We have that going on. Sharing power in opposite directions. Yeah. Yeah. Pushing and pulling. Bizarre. I dont ever remember it being like this. But i dont remember a president being a part of the election as much either. And the honeymoon was over. The smooth transition was over. A bit of sniping on both sides. You wonder what the market is to think. Yesterday the biggest pullback in a couple months, maybe puts off that 20,000. Maybe we shouldnt hit 20,000 until after the 20th. Well talk to a lot of good strategists today about things. Charles canner, we have him for an hour. We have andrews buddies from the new york sometimes, james stewart. Hes always engaging, smart. So well have that. John riding coming on. We could talk to some politician here from new jersey. Its our penultimate show at the at this studio that we have. Then were moving to bigger and better things. I did see my face on a like a fivestory high times square screen. It was frightening. Well i will talk to my makeup person. I dont think i need makeup. I think i need a surgeon. I think you need a selfie with it. Maybe a selfie with that. You should. Do i need a selfie stick . No, you need a lumie, which makes your selfies beautiful by lighting it up. Did you say what your Favorite Song of the year is . Beyonce, hold up. Whats yours . Not that. I think singing in the rain. You thought Debbie Reynolds, sara, you thought she was they werent talkies when she was around, right . Have you ever heard of her . Debbie reynolds, of course. Good. Okay. Joe, we have to leave it there. We look forward to squawk box. When we come back, paul sheard, well get his thoughts on the year ahead, the year that was, and whether the rally is matching up with the economy. Welcome back to Worldwide Exchange. With us is paul sheard. Hi, sarah. Holiday shoppers were in good spirits says the wall street journal today. Will we see that translate into higher spending this quarter . I think so. I think the second half of the year will turn out to be much better than the first half of year. This sets up things for a good start for 2017. The big question is how long can that last . How long can that Consumer Confidence data that we had a few days ago, very encouraging. Thanks, donald. Will it peter out in q q1, o is this the start of a new, encouraging cycle . Nobody knows. The Trump Administration is full of uncertainty. Certainly at the moment the markets are taking the view that Economic Policy at least will move in the right direction. You also have to bear in mind that the economy has been recovering for six, seven years. Its been slow and muted. The back drop for the economy to actually move up to that next stage, really break out of this lovelle lossity, recovery that weve had is very much there. That sort of debate from economists, whether this late in a recovery cycle we can get another burst of Economic Growth without having inflation. Where do you come down . I dont really see this Business Cycle in terms of the clock is ticking. You have to look at what the economy looks like. Of course unemployment has been coming down. Still substantial slack in the labor market. I think thats still there to come. I dont think we should look at the clock and say the cycle is about to peak out. Q4 has been great for markets stateside and around europe and japan. Is that just ified . Markets are look out to 2017, second half, maybe 18, seeing this important policy switch. The markets are look at one half of the trump equation and dismissing the other half. Im talking here about the stimulus part of it, thats a bad word in the u. S. , but in some sense its a good word now. Could trump be the answer to secular stagnation. Thats what everybody was worrying about the last two, three years, the economy could be stuck in this low Interest Rate environment forever. If we had, as i put it, smooth holly coming back from the grave, that would shake markets. Can we break out of at least 2 growth next year . I think well get above 2 . Growth has been around 2. 1 since 2009. If we do get the tax cuts, tax reform, supply side policies and infrastructure stimulus, thats pro growth. Great stuff. Thank you. Paul sheard. About 20 seconds left. Im not watching the dow. Were not watching the dow levels anymore. Why would you be . Its too far away. We crossed below 19,900. How about oil . It broke its winning streak. And bond yields as well. Thats it for Worldwide Exchange. Squawk box is next. Maybe it should be after january 20th when it happens, when we associate that with 20,000. Troumponomics, announcing 8,000 jobs coming to the u. S. Did we already know about these or is he taking credit twice . And toshiba shares down nearly 45 this week. A big cap stock down 45 . Well tell you what drove that selling overnight. Its december 29, 2016. The best of times, maybe some of the worst of times for this year. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box here on cnbc. Im andrew ross sorkin, along with joe kernen and melissa lee. The dow fell yesterday by more than 100 points. Look at how things are setting themselves up for this morning. Looking at u. S. Equity futures now, dow opening off just about 3 1 2 points. Nasdaq opening down. Close to 4 points. S p 500 up just a tad