Has been the trend we have been watching for quite some time future indicated 44 points by the dow. S p futures by 3. 5 this comes after we saw all three of the major averages sitting at new highs again on friday thats happened a lot recently the dow and the s p 500 up for the last seven of the last eight sessions nasdaq on an eightday winning streak and thats something that youre watching as we kind of rush into the Holiday Season here also look at whats happening in the treasury market. Youll see that right now the ten year looks like it is yielding 1. 91 just below 2 for the ten year we have some news breaking just literally in the past hour now. Report saudi arabia sentencing five people to death for the killing of Washington Post columnist jamal khashoggi, he was murdered of course in that saudi consulate in istanbul just last year by a team of saudi agents saudistate run tv saying three other people were sentenced to prison over the killings and reports say that the investigation found that the former top adviser to kraun Prince Mohammed bin salmon had no proved involvement in the ki killing. So, some form of justice being dolled out today but there will be lots of questions i dont think this is a story that ends. I dont think anybody believes it. I dont think anybody believes it. So is it justice kangaroo court. Were these the five men that we were seeing on tape hard to know then the question of course ill ask you, the question, of course, is does this change business does any of this change peoples view of doing business in saudi or doing business with mbs . Well, i think this is likely was done with that exact intention. Right. You saw the way Institutional Investors stayed away. You think because of this i was at that first big summit they had. And you were there as well and it was packed. All the great and the good, all the biggest pockets of money in the world twlr the next year, the year after kizzi khashoggis murder, it was a ghost town. Administration was back the next year before this ruling came out i think it was timeout. Youre in the penalty box for a year, maybe longer. Yeah, but its not full on back again, that ipo nobody invested in that ipo it was largely arnl twisting of the retail. You think that was a function not of the transparency issues, not of disclosure issues but of human rights i thought it was all of these issues. It was all of that. Absolutely human rights was a part. It doesnt help. Mbss position within saudi arabia, remember this is a guy who is a reformer. I put that in quotes to some extent but indeed there are some reforms. Locking up i dont remember the exact number over 100 important people in the ritz carlton there. And now this, five people sentenced to death do people look at this and say, wait a minute, they were following out your orders. That doesnt thats what i mean. I dont know that this turns the page. Doesnt feel just. Turns the page or brings them into a new chapter. The entire situation is so disheartening. Its hard to talk about. Right lets tell you what else is new this morning Chinas Finance Ministry says it will cut import tariffs for frozen pork, medicine to treat asthma and diabetes and Semiconductor Products on january 1st. The lower rates will apply to all of chinas strading partners tariffs will go to zero on some of the products. Over the weekend, President Trump said that the United States and china would sign the phase one trade deal very shortly in his words here is what he said in an event in florida we also took the toughestever action against china. And as a result, we just achieved a breakthrough on the trade deal and well be signing it very shortly. Theyre already buying billions and billions of dollars of products, agricultural products. Obviously the first step was on december 15th when we did not go ahead and raise additional tariffs on this front. But people have still been wondering what happens where is the deal . What interest terms of those deals . Watching the moves that china is making over the weekend does answer some of the questions they brought up before about what happens, how does this not violate wto which seemed rich at the time now theyre concerned about violating wto . Well see what happens with it. Meantime, i dont know what everyones view of this one is, former ceo of Uber Travis Kalanik sold 2. 5 billion of his shares since a lockup period puts him on pace to be completely die vested within days his remaining stake is worth about 250 million and still a member of ubers bhord kalanick is working on Cloud Kitchens buying real estate around the world in bet that restaurants will pay rent capacity to create food for delivery but this is an indictment, i think, of uber in terms of the view of the company or Something Else sell, sell, sell to quote joe. He built the business he knows the competitors i mean, this is a very, very smart man. Could bit either some frustration with the direction of the company that he just disagrees with and may not be wrong and or the company was not nice to him. Is it really an indictment of uber or is it just Say Something about the relationship. The relationship that is so soured this guy cares deeply about his own personal net worth the first time i met him, he told me how much that personal net worth was. So, i dont think hes making he likes to control it. Handing over control to somebody else to run his money, if he can take it out and invest it in a project where he has hands on experience even though hes on a board, i dont think he gets much of a say in what happens with the company and disagrees where things are headed as well. Things have been so frayed i thought it was poor form they didnt let him stand on the stage of the New York Stock Exchange. It was very petty. You think its a personality clash. I dont know. I dont have any insight into it. Raise more money for his new promgt i assume he could get a loan. He seems like the type of person who would like to run his own money. He doesnt seem like a passive investor or somebody who likes to say you run the show and ill figure it out. It seems to me that he wouldbe would want to be more in control of his destiny. Isnt it also a personality clash. Every time ive seen you ask dara and i asked dara the answer you get back suspected an emphatic we love each other. Were bestties. 100 . Going to movies. Star wars, the rise of sky walker brought in 176 million in north america in its debut. The movie was hit with harsh reviews and 57 rotten score on Rotten Tomatoes. Most of the time i dont care what the krit ibs say. Its not going to stop me from going to say this. What did the family think were going to see it part is look it came out and the way the holiday falls this year, you know, im going to see it with the entire family over christmas. My brothers, their wives, my parents. Its a big todo. My son already saw it and he said its way better than what Rotten Tomatoes said. I tend to think thats the case most people i talked to said the same thing if youre a star wars fanatic if youre a fan and he said its better than the previous film if youre a fan, youre going. This is the first under 200 million opening. But lets be real, it was 176 million versus cats at 6. 5 million. The Farley Family contributed 60 to cats. Hold on stop stop the show. What happened . Give us a review of cats. It was three members of the Farley Family and not me you saw the early viewing before they updated the digital changes. Which is crazy. The review was scathing it was a big movie weekend frozen 2 on saturday they said it was actually quite good good music good plot not quite good and then cats on sunday. First of all it was confusing. What are the ages. 14 and 11 all girls. They said it was confusing and most damning taylor swift was in the movie for one short song. Bait and switch. Little bit of a bait and switch. The fact is theyre now putting in a new film. Theyre replacing the film i have never heard of that ever after the release date i think theres a lot of people like us. We had our big Family Movie Day this weekend and we had bought in advance the cats tickets. The reviews came out and we returned the tickets we went to see frozen 2 instead and it was great. Can i ask a question, why does as a business person, im reading about disney and star wars and frozen 2, why didnt they space out some of these movies 2019 thats been the way with the studio they have all the releases that come out fast i miss some of them because i dont get to movie theaters with the kids that was part of the problem with the last one they put out, the han solomovie. It came out the middle of cycle because they used to wait a year, that came out the middle of year and didnt do well as a result there is a saturation point, i think. And they tested right up against those limits okay. A lot more to come this morning. Can we call this a Holiday Edition of squawk box. Can we do that all week, Holiday Edition. I like the poinsettias they put in. Can we make sure everyone appreciates the full holiday spirit. Happy hanukkah everybody that was last night for us we do christmas, too were christmas loving jews. The fed was one of President Trumps favorite punching bags in 2019. What to expect from the central bank in the new year right after the break. Take a look at u. S. Equity futures right now. We got some green on the screen to match our red ties for this Holiday Season back in a moment announcer today s big number 5,175 . Thats how much Patrick Industries is up over the past decade ocinhe it the Top Performing stk t s p 1500 during that period. Welcome back to squawk box this morning the economy and the fed were a big focus for the markets in 2019 the fed particularly was a big target, of course, for President Trump. I want to show you Steve Liesman with a look at what to expect in 2020 on that front reporter nothing is more central to the outlook in 2020 than what happens to the trade war. It looks to have depressed growth here at home and around the world this year. It led the Federal Reserve to reverse course and cut rates sharply in 2019. Here is what to look out for in 2020 first, the trade war should improve somewhat or at least not get worse. As the year drew to a close that seemed to the case with the announcement of a limited u. S. china phase one deal. Businesses will learn to informs and prosper with a world of constant rumbling of trade disputes. Second, assuming a lot of damage hasnt already done, that should lead to improved global route and help the level of u. S. Growth to 2. 5 in 2020 or a half point above where it likely closed in and out 2019. Third, the Federal Reserve should remain on hold. It could consider raising rates if Global Growth confirms other Central Banks start to hike. And markets closing last week at record highs once again how should investors ride the rally and set themselves up for the next year . Joining us to talk strategy for the holiday week ahead good morning to you. Good morning. We have a week and a half to go. Yep. Theres a couple things going on i want to talk about the technical factors little rally into christmas and i dont know if you think that also rides into the new year, but theres also that people will sell, tax harvesting things, theres that point at which certain funds want to be in certain names can show on the disclosure forms next year. Yep. How does that play itself out over the next seven to ten days. Sure. Theres two fears i want to talk about. Fear of recession and fear of missing out. Most of 2019 there was a fear of recession. Two and tenyear invert and fed cut three times where there were concerns about Global Growth slowing. Now we have seen that the market hits record high we have a phase one of the trade agreement. Last six weeks we have seen 43 billion go into equity funds investors are now trying to play catch up and that momentum will push stocks little higher for the balance of this year and into the First Quarter of next year. My fear is a different fear wch we have a nice run and january is softer. Thats a polite way to put it. Strong Fourth Quarter earnings more validation that the consumer is still strong and still spending and likely record holiday sale which is is going to push the Consumer Discretionary sector higher particularly ecommerce thats one area we like going into the First Quarter. What about forecast concerns . Right now the forward pe is 17. 5, 18 times feels normal, could go up. Is it possible earnings will come down . Not for the first half of the year well see them continue. We have 50year low for the unemployment rate. Wages have risen inflation is 1. 8 . That feels good. More disposable income and consumers are working theyll continue to spend. Is there anything that would happen to would shake your confidence. The phase one of the trade agreement doesnt happen, the Federal Reserve starts to do things were not expecting but after the second quarter, all eyes are going to start focussing on that november 2020 election around who will be in the white house and who will be controlling congress. You think fomo is playing out, fear of missing out or the see if the carpet gets yanked out from underneath them. I think were in the six to 8 upside potential next year. Thats going to really be during the first two quarters of year and investors will sit on their hands. I have an election fed question. Sure. Do you think an Election Year jay powell wants to do anything . Dont you think the whole strategy of saying what he said at the end of this year was to say, look, hands off the wheel for the next year. You guys have at it. I think thats a large part of it. Right. But then also with earnings continuing to grow at least for the first two quarters of next year if things get either worse than expected or better than expected, you think he puts his hands back on the wheel in an Election Year . Worse than expected thats why we had the insurance cuts last year i dont that ip flags will ramp up fed does nothing in 2020. I have an election question predicted has Bernie Sanders and Elizabeth Warren 20 chance one of them wins the presidency. If were sitting here in march and it looks like theyre not going to win the election but the presidency, what does that look like for the markets . June or july well see who the candidate is, what the conventions are and a lot will be priced into the markets as we get closer to that point in time and i think for the first half of the year not knowing who the democratic contender will be well be riding the strength of the economy. Great to see you, kevin happy holidays. Coming up, a Public Service for all you procrastinators out there. We have five gift picks that you can still get if you havent finished your shopping list. Hand selected by the style director at good housekeeper thats next. Ever since we downloaded the 30 day fitness app, weve been working out every day. Together weve already lost 15 pounds. Didnt you say you gained a few . Yeah of muscle. The point is were doing it together. This whole process has really made me realise how much extra weight ive been carrying around. I might just want to drop another 180 pounds. Thats almost how much i weigh hun. Exactly. All right, if you are a lastminute shopper, you dont want to miss this segment. This morning well share with you some hot ticket items for the Holiday Season you can still pick up before christmas if you hurry. Joining us right now is lori, Good Housekeeping style director lori, thanks for being here. Thank you for having me happy holiday. Happy holidays. You brought us some interesting, unique gifts, toys almost to a certain extent, but things that most kids would like having in their Stocking Stuffers and some adults, too. Last minute doesnt to mean you have to be lazy and only get a gift card. There are some really good options. Well start with the beauty junkies in your life andrew, will you bo my model this is how you turn it on this is a lacer thing that will make my skin beautiful. You have Beautiful Skin this is the you look like eyes wide shut. Press it one more time. Okay. Here we go. You can see its lighting up. Thats l. E. D. Light, red and blue light helps to stimulate circulation. Can someone call my kids and make sure theyre watch this up right. Its around 430 it really re thats pricey does it really work . Ill really does work we were just talking about this in the makeup room ive seen this does it really work . It really, really works. Prevent acne. Thats what the blue light does. The red light fights wrinkle, promotes blood circulation, improves your complexion this had over 97 of the people show a significant improvement how long am i supposed to keep it on my face. Three minutes you can take it off now . The rest of the show. I want the get the benefit. Only three minutes three minutes it will shut off by itself. I do it for three minutes everyday. Everyday. I hold it to my face like there. Pick that up at nordstrom move to the next one can i just ask, do you have one of these. I want one of those. This is on your wish list. We have it in the good houses keeping Institute Beauty lap it comes with a head s