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the stock that has taken the thrown of most shorted name in the united states and paying big bucks for a massive uncut gem. all of that as "worldwide exchange" begins right now ♪ good morning i'm dominic chu in for brian sullivan your mystery chart for this thursday, you are looking at the most shorted stock in the united states after losing that title in september we reveal the name to watch coming up. first, here is how stock futures are shaping up after yesterday's landmark trade deal signing. you can see the dow will open up by another 100 points, s&p by 1 and nasdaq by 46 the dow and s&p coming off record closing levels with the dow coming off 29,000. that marks the 40th trading day since the blue chips finished above 28,000 for the first time on november 15 the fastest such climb for the dow since january of 2018 when it took only eight trading sessions to close above the 26,000 mark from 25,000. for perspective. to go from closing above 26,000 to 27,000, it took markets more than a year. yes, the percentage gains are different. still, though, some massive moves and accelerations in terms of milestones reached. to the bond market we are seeing a slighttick higher 1.792% for 10-year treasury. two-year note fields 1.567%. let's go worldwide going to our globe, you can see generally speaking, china down a half a percent on the heels of the trade deal signing hang seng in hong kong up. just about flat for the nikkei in japan spinning over to the european sessions cac in france about flat dax up about 0.01. and the ftse 100 down as well. rahel solomon is with us >> let's start with an unlikely alliance mo microsoft, apple and bmw are calling on the eu to stop patent trolls the hurting innovation shares of japanese sneaker makers are getting a boost world athletics are looking to make a ban on the vaporfly these shoes helped athletes break records. pairing those gains now to 2.5%. mizuno saw a boost but smaller >> and japanese lawyers representing ghosn quit today. in a statement, the lead lawyer said everyone involved in the case in his practice resigned, though they declined to give a reason this comes as renault's chairman said he sees no urgency to add a new ceo at this time and are working on scenarios for outside renault and nissan appliance are, quote, fake news. >> back to the markets stocks set to open in order ter tory after the dow closed above the 29,000 mark for the first time ever. reports from the big banks as earnings season kicks off. you can see the score card right there. generally, very positive a lot more green than red on that screen. joining me now, cnbc contributor, gina sanchez. let's talk about the tone we have for the markets record highs, dow 29,000, the banks are pretty good. is there anything that is wrong with this market right now >> well, where to begin? the last three months of fed losening in terms of the balance sheet has been a part of it. it has been an underappreciated contributor. most folks are focused on the fact that we are heading into earnings season. the fed has created the right shape by pushing down the short end. that really was a determined effort it does set up the banks for profitability. you still have also this phase one trade deal does remove some uncertainty from the markets but not all of it. you have to dig into these issues there are still issues that remain to be resolved. >> what kind of issues are first and foremost in front of mind? >> if you look at the trade deal itself, the main thing it accomplishes, it removes the hostility between the two countries. so you have the u.s. treasury department will no longer be labeling china as a currency manilag one for china. china has agreed to purchase $40 million in agricultural goods. that is a win. they've never purchased more than $26 billion the problem is that the actual deal is silent right now on a lot of other issues including protection for ip, including reforms to subsidies that are granted to state-owned enterprises in china that create competitiveness issues until those really thorny issues are dealt with, we still don't know what we are dealing with. >> let's say those issues are addressed in the negotiations that are undoubtedly going to happen this year in the phase two trade deal let's say things go on track, hypothetically speaking, what then is the outlook for 2020 is there any way you should be fighting that trend upside or do you think that this trend is necessary at this stage? >> i think it is necessary because of valuations. you can't grow your way given where you are in the natural cycle. i don't think we can fulfill the expectation in the market. once we get past the china trade deal, we'll have to deal with europe we are picking a fight with purpose, both germany and france we seem to be picking fight after fight. i don't see that there is enough growth in the economy to support the kind of growth in the markets right now. >> digital taxes certainly front and center then. gina sanchez, thank you for joining us we appreciate it >> when we come back on the show, jp morgan admitting to failure surrounding allegations of discrimination. plus, history once again in the making on capitol hill as the house delivers its articles of impeachment of president trump to the senate. later on, more than that 1,758 karat uncut gem that just ldso more ahead on "worldwide exchange" after this at the star. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. some things are too important to do yourself. nature's ♪ nty. get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. that's a live shot of hong kong markets are closed there we did see that. jp morgan is admitting to failures brought to life by the new york times and is taking steps to making changes. >> yes, the bank is acknowledging several short comings. detailing allegations of racial discrimination and an incident by an employee at a branch in phoenix. executives say, the customer, jimmy kennedy experienced several delays such as opening an investment saying it is clear mr. kennedy had a terrible customer service experience with us there were a series of delays in the process that would have frustrated any client. a discussion between a manager and financial advisor about the suitability of a customer in subsidized housing was unacceptable dimon stating he is thoroughly disgusted by racism in any form. a memo sent to employees yesterday saying they have created a team to spur improvements and conducted focus groups with both employees and customers. >> a good friend of mine works there and told me there has been a memo shared admitting short comings. >> this is one of the most recognizable names in america. chase is one of the biggest names out there. does the bank lose customers because of this? it seems like the bank is trying to get ahead of that right now and depends on how wide spread that is. we are talking about that here that does amplify that issue they are trying to get ahead of it if that is the problem, right fully sho so >> that is up about 0.01%. still ahead, twitter ce o's meal prep plan is trending right now. and putting the spot in spotify. we'll explain when "worldwide exchange" returns after this >> announcer: today's big number $189.7 billion that's how much the market cap of the russell 2000 has increased over the past year thhe iexwi tnd hitting a 52-week high yesterday they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes just between us, you know what's better than mopping? 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>> it is not if you look at who is likely to vote on the president being guilty, it's pretty much all the democrats. then you would need well over a dozen, i think it is about 20 republicans to vote with them. they've been clear that most of them think this impeachment trial is unwarranted now interesting, there are republicans that may be willing to vote with democrats on hearing witnesses for this trial. they'll need at least four we've heard at least four republicans say they want to open this up so witnesses and new evidence can be presented. >> all right high drama tracie potts with the latest thank you. let's get a check on other top headlines with phillip mena live from the new york news room. good morning to you. >> good morning. a new lawsuit has been filed against jeffery epstein after his death. the attorney general in the virgin islands has filed a civil lawsuit against his es katate accusing him of sexually abusing girls on his private island. up to 2019, he brought underaged girls as young as 12 to his private island using his private plane and helicopters. >> new fall out after a china flight made an emergency fuel d dump over schools in los angeles. experts say they are puzzled by the unusual decision about 60 people including children suffered minor injuries >> a guy in utah found himself locked in the gym overnight. he didn't get the memo that gym closed at midnight he thought about leaving through the emergency exit but didn't want to set off alarms eventually contacted emergency dispatchers and he was freed about an hour later. >> you wonder if they would change the signage, not 24 hours. >> i would he sounded the alarm. we come back, a possible turning tide in bank stocks our next guest says may warrant a portfolio shank up singer, rapper akon making his at cinaly.ams a reit th'somg up after this break. legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. think you need to buy expensive skincare products [♪] to see dramatic results? 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>> reporter: dom, the state news agency is quoting the vice premier as saying that the chinese are full of confidence when it comes to the economy and optimistic about the economic trends for 2020. he was speaking to reporters in washington and said that this is thanks in part because of the phase one trade deal he has been describing the deal as a deal that eases trade tensions and helps sto to expectize predictions on the economy. the press has been presenting the trade deal as an equal treaty they have been playing up the fact that the u.s. does provide some tariff relief to china and that there are protections for trade secrets and ipr. there is a discussion about dispute settlement system. not necessarily referencing enforcement but that this dispute settlement system will be conducted through consultations. the currency monitoring is reciprocal and in return, china will open up the financial sector with the chinese that they are doing on their own and that the chinese will be buying more american goods. there is a blog carefully followed by trade experts here somebody anonymous who people believe is traveling with the vice premier that person wrote after being gone about two months saying this is not a bad thing for china to buy american but it has to be based on the market need >> eunice, can we also talk about what would be phase two. how important are tariff roll backs to any further trade discussions from the chinese point of view? >> well from the chinese perspective, one of their red lines has been a tariff roll back they want to make sure as much of the impact of the tariff is mitigated. they want to see all of these lifted in an ideal world when it comes to the discussions of phase two, some of the people i've been talking to say the discussions might start. exactly how far they get is a big question mark. the chinese aren't necessarily in a mad rush to be able to push ahead with the phase two when they are still unclear how a phase one is going to go as many americans are concerned about the chinese keeping good to their word. they are very concerned at this point that the trump administration won't follow through with their promises. >> live from beijing with the latest on the trade talks. thank you. the nation's fourth largest bank by assets announces q 4 results. expecting $1.08 per share for morgan stanley expected to be 40.3 million compared to earning in 2018. the latest in a string of big bank results this week most surprising to the upside. they are beating wells fargo, the only exception there so far. joining me now, is r.j. grant, head of equity trading thank you for joining us >> thank you for having me >> let's talk about the banks. they are one of the lynch pins, people say for this rally. they've been a strong performer at the second half of last year, starting strong again this year. the earnings season is good. are your expectations that the big banks stay that way? >> sure. a couple of things to touch on coming into earnings, there is a positive bias. a little less in the regionals i don't think earnings surprise anybody. they remain under pressure because of the rate cycle. then the latest banks have shown better results that has been driving the dynamic and that is what people have been expecting. >> big surprises are the gap forming between the large univers universal center banks if you take a look at regionals, they are underperforming some large cap peers. >> we have an interesting call right now. a lot of the dynamics that have benefitted the big banks are going to slow a little bit you've had rate cutting cycle that has boosted you have a fed that has been accommodative. hopefully the fed gets the balance. we feel if the economy stays strong, the consumer stays strong, consumer banks are due for a little catch up. we think that big 10% gap in the fourth quarter will be closed a little by the regionals. >> is i want to call your attention to what we are showing viewers, which is a chart of the kbw bank index versus the regional bank etf it has doubled the performance the large ones over the small ones on an index basis that move, is it a mean reversion trade to happen there? >> sure. historically, they've been a lot tighter. i think the play right now, what i mentioned, the rate cutting cycle has hurt the banks they are more dependent. our call is that if the economy remains strong and folks feel good about the financial and the banks overall, that the regional banks, it is time for them to have a little bit of a day in the sun. >> is it a day in the sun, are there certain banks better than others >> sure. our analyst like the higher quality banks where we feel the street estimates are too low we like hancock whitney. two best ideas for 2020. we are trying to steer investors towards the higher quality it is not like a lot of these regional banks are comed over. >> a chance for the outperformance and underbanks out there. thank you for joining us this morning. thank you. coming up on the show, a wild ending to last night's matchup between kentucky and south carolina leaving the wildcats in kentucky stunned. >> twitter ceo jack dorsey bishing on his rigorous eating hats and how little of it he's actually doing "worldwide exchange" will be right back every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward. the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. le let's find out who else you'll be talking about today. you've got some good ones today. >> twitter ce o's eating habits are the subject of conversation. back in march, he revealed his wellness routine of eating one meal a day and at times going a weekend without eating he's provided an update to his intermittent fasting clarifying he now eats seven meals a week i've done if, not to that extreme. just eating within an eight-hour period it worked great. he also said he does two hours of medication a day and calls that physically painful and mentally painful >> whatever works for him. he doesn't have the energy from the fasting side of things, so maybe it is morepainful. >> he said it gives him focus. if you are at home watching, maybe you should consult with your doctor first. love this story, from singer to city builder akon can do it all. the musician from senegal has received official approval to start the production of akon city it will be a crypto city that will trade on his currently acoin. has an estimated $2 billion price tag and is expected to take 10 years to build it is nice to see him go back to his home country and give back and create some is jobs and some fuel for the economy there it is wonderful. >> it is at the same time maybe there is news and headline momentum to get going. >> even better i love it. good for akon. this one, pet lovers listen. spotify has said it found a way to make man's best friend or woman's best friend feel happy if the owners are away creating a playlist exclusively for pets after learning that 70% of owners play music for their pets users can complete a quick questionnaire about the type of pet they have and get a custom list i leave cnbc on for my dog, hi, teddy. i have never played music for my dog. am i neglecting him? >> i have two dogs i don't leave music on for them. there is a dog walker. i'm not sure if i do that, is it carbon neutral because of the energy >> my question is what kind of music would your dogs listen to? >> i will say this, my daughter listens to soothing music to help her go to bed i think the dogs are used to that country music is probably what they would listen to because my wife listens to that the most. >> i'll ask you off camera what you listen to. in sports, a thrilling finish to college basketball last night the 10th ranked kentucky wildcats taking on the unranked south carolina team. coming out hot controlling the game with a double-digit lead. south carolina fights back coming within three points of the final minutes of the game, in the final seconds, firing off a three pointer as south carolina beats kentucky with a buzzer beater, 81-78 the final score. one of the biggest upsets in an already upset ridden ncaa mens basketball season. still ahead, the streaming wars get a new player. what comcast peacock can do to separate itself from a crowded pack to can watch us live on the g onhe cnbc app. "worldwide exchange" is back in a moment ♪ some things are too important to do yourself. get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. welcome back apple has snatched up an artificial intelligence software startup. it is buying them with the price tag of $200 million. marking the last move by apple which has bought several ai startups and following a new york times article of racial discrimination detailing experiences by a black customer and employee in phoenix, arizona they plan to lead improvements of the bank. >> louis visit on buys the largest uncut diamond marking the growing ambition in the high-end jewelry market. comcast is set to join the streaming giants they will unveil the peacock service making it the last and latest companies to enter this highly competitive sector. we have more on what to expect from peacock >> reporter: unveiling the streaming service called peacock. the ad supported streaming service is expected to include a free option. investors are eager to learn how much content will be included and how it will be bundled with comcast cable to incentivize consumers to keep paying for the tv bundle. peacock is going in a different direction than netflix along with disney and apple. betting that people would rather watch some ads than pay for another streaming service. they will focus more on the deep library of popular shows such as "the office" rather than spending big on originals. it is spending $2 billion over two years on peacock planning to break even by year five. netflix spends an estimated $13 billion a year on content. >> markets will increase ads on tv to 28% to nearly $9 billion this year. the media giant is looking to avoid subscription fatigue nearly 60% of americans say they won't pay more than $20 a month for streaming services back over to you >> thank you joining me now for more, sara fisher, media reporter you heard the report you are going to be reporting on this story later on. we are going to get a lot of questions answered today what will you be looking for comcast and nbc universal to say in this particular release >> i want to hear the actual details about the service. what are going to be the pricing tiers? how will they bundle this to existing comcast subscribers and are they in costs with other companies about bundling with their officings as well. i want to hear more about their strategy what we've heard from other companies primely at&t is how they will priorities their content. we don't know nbc-used studio, universal will have window priority will they make movies exclusively for peacock. i know investors are eagle to hear about this strategy we are only a few months out from launch. >> having covered the space, is there a disadvantage to comcast nbc universal coming out of the gate do you think it is a positive given that they've been able to learn from other competitors >> good question they've been able to learn a lot. you had some services that went all in on marketing and day one couldn't deliver i think about disney plus having a lot of issues crashing on day one. the marketing play helped them out. in the first week, they had 10 million app downloads. what it does is buys them time to negotiate for programming windows. nbc universal has a lot of programming tied up with hul owe and netflix. this has allowed them to negotiate to say, hey, we want our programming back so far, they've been able to win some back. they have rights now to the office other programming that they are hoping will lure to their service. >> the 800-pound gorilla is still netflix. how big a deal is it that peacock will go against netflix? >> one, netflix is a subscription service with no ads. peacock, they are hoping people will buy the ad-light tier the reason that matters, they see potential from an ad perspective. where i see it being competitive. at the end of the day, you'll have a lot of people getting this service for free with their comcast subscription but a lot who will not in order to make it a sexy thing they'll want to subscribe to, nbc will compete with netflix for talent and other programming rights that will be the biggest challenge for them >> great insights. >> thank you back to the markets now, stocks continue to post new highs. gains will be extended given future markets this morning. joining me now, joel, large caps leading the way like they have for so long right now, does that trend continue this year >> we think they are going to be a lot of large cap companies that will benefit. our little group is up about 5.9% year to date. we think those indices that are heavy weight, microsoft and apple will more than others. last year, representing about 16.61% of the russell. this year, it is u.s. small caps they've been an a tear since october. non-u.s. small cap leader 5.3% entrepreneurial small caps are up >> i saw that. to start this year, they are starting to faulter again. what is going on what does the market need to see to get them to really start that trend higher >> again, we are not seeing it in the entrepreneurial space they are up about 9% for u.s., almost 5% for u.s. small caps. there are certain pockets that haven't caught up the last three years. companies are up 50, 60, 70% the u.s. are stillcoming back. many companies are still 20% below the highs. revenues and profits are there >> is it geographically focused or more industry focused banks, biotech >> we are sitting across the areas. we are seeing swedish tech, consumer discretionary, we are seeing china china has been strong year-to-date coming out of the gate, china has been the strongest country we are seeing global growth, valuation plays. it is a duel market. >> thank you for those market thoughts that does it for "worldwide exchange" this morning "squawk box" begins right now. good morning, the dow surging above 29,000 up triple digits pre-market as u.s. and china sign that trade deal >> tesla has reportedly regained the honor of being the most shorted stock in the united states shares ahead >> shares of sneaker makers are on the advise after reports say nike's controversial vaporfly shoe may be banned from competition. it is thursday, january 16, 2020 "squawk box" begins right now. ♪ good morning welcome to "squawk box" live from times square. the dow and s&p coming off record highs the dow closing above 29,000 for the first time ever. marking the 40th trading day since the blue chip's last milestone met november 15, 28,000 we'll talk about the moves that drove that over. we are indicating the futures up sharply. dow futures up 118 points which would put the dow at a record. s&p indicate

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