living ♪ >> good morning, welcome to "squawk alley." mike santelli is here with me, jon fortt's at ces. kayla will join us in a moment. here, brooklyn dwyer and wells fargo investment institute's head of global asset allocation strategy, tracy mcmillan. good morning to all of you. before we get started, in about ten minutes, a first on cnbc interview with intel's brian krzanich live from ces. you do not want to miss that. first up, our top story, donald trump expected to meet with some top intelligence officials at trump tower today in a little less than 90 minutes. it comes after a series of tweets from the president-elect targeting yet another automaker. our john harwood is live outside trump tower with that. good morning, john. >> reporter: carl, fascinating mix of issues that president-elect donald trump has put on the table or has on the table today. first of all, you mentioned that tweet which came last night against toyota, suggesting that there's no way they should build that plant in mexico. they should build it in the united states or be subject to a big, punitive border tax. now, toyota has responded by saying that plant does not involve diminishing employment in the united states. so we'll see whether or not there are any consequences from that. the president-elect also tweeted this morning about arnold schwarzenegger, the successor to him on "the apprentice," which he's still executive producer of, saying that schwarzenegger's ratings have been poor compared to his ratings machine when he was hosting the show. in addition to going after schwarzenegger, who's responded, by the way, by saying he hopes -- much on the job of being president as much as he did on his "apprentice" ratings. he is now meeting with the editors of "vanity fair" and other conde nast publications. he's feuded with "vanity fair" in the past, but the big business of the day is the meeting with top intelligence officials, john brennan, cia director, admiral mike rogers, the head of the nsa, james comey, head of the fbi, and james clapper, the director of national intelligence, who testified yesterday at the senate armed services committee hearing chaired by john mccain and indicated that he did not appreciate the way that donald trump has diminished the work of the intelligence community in identifying russia as the source of that election hack. here's james clapper. >> i think there is an important distinction here between healthy skepticism, which policymakers -- to include policymaker number one -- should always have for intelligence, but i think there's a difference between skepticism and disparagement. >> reporter: now, i think the intelligence community's hope, being that they're going to begin working with the president-elect in two weeks' time when he's inaugurated, is that he will emerge from that meeting accepting their conclusion without diminishing his election victory. you know, he tweeted this morning that he won because of the passion of his supporters. and a lot of people think the reason he hasn't accepted the conclusions about russia is he thinks that would delegitimize his victory. john mccain tried to separate those two issues at the hearing yesterday. we'll see if donald trump manages to do that today. do not know how long that meeting is going to last. i've asked transition officials, have not heard back, or whether or not the president-elect will come before cameras afterwards and advise of his reaction. >> we'll certainly be watching to see if he comes to the camera or to his phone, john, which has been his preferred method of communication in recent days. >> reporter: that's right. >> john harwood outside trump tower. talking about some of this. we've gotten tweets on intelligence, tweets about arnold, tweets about mexico, nothing, though, specific on taxes, and that is the one thing the market is really trying to get clarity on, right? >> yeah. they need a lot of clarity. there's a lot of, you know, unanswered questions, a lot of -- >> what are your unanswered questions? >> well, you know, how this protectionist-type policy is going to work. we've seen the tweets for toyota in terms of trying to get u.s. corporations or even foreign corporations operating in the touz do more in the u.s. what does that really mean in terms of effective tax rates and how corporations can shift their policy? and that's not really clear right now. too many loose ends. >> if you put it all together, between what he has said is his intent and then also some of the tax plans that have been drawn up about corporate taxes, about really incentivizing capital investment here, it seems to spell, if it all happens, something of perhaps a high-pressure, investment-led stage of this economic recovery when we already have full employment as we saw today with the jobs numbers, or near full employment. does it mean inflation flexes in this economy? >> credential that's the momentum now. all of the tax policy that is being suggested or talked about, both from house republicans as well as trump certainly implies some sort of higher prices. so, will that feed through into the consumer and how do corporations deal with that type of balance? in the end, whether it be toyota, whoever, they still need to sell more stuff, so they've got to figure out a creative way to do that. >> tracy, we're going to start getting earnings. it's going to come slowly next week and then quickly after that. one question is whether companies are going to comment on 17 business conditions anywhere near what sentiment is hoping it will be, right? >> right, exactly. so, we expect the administration to go for a couple of really quick wins, one with tax policy probably in the form of bringing repatriating assets back to the u.s. and another quick win we might see from them is the appeal of the aca and then some repeal of some other regulatory options that are out there right now. now, we think that's going to be very complex, so that will probably take some time. and there's the potential that investors could be underwhelmed by the changes that they're expecting. >> yeah, there's -- well, you can be underwhelmed by size or timing, right? or composition. >> there's a gap right now. >> exactly. >> between expectations being built up right now and that delivery. and we don't know. there's a lot of trading days between now and when the delivery comes. so short-term wins is key to keep the momentum going. >> exactly. >> tracie, if you look back at a year ago, we obviously don't have oil crashing right now, but when companies were getting set to report fourth-quarter numbers last january, the strong dollar was a big area of focus. you did have a lot of focus on perhaps the possibility that the economy was decelerating. do you see any echoes right now on the environment? >> so, what we see in the environment today is a very different picture. instead of the fed coming in saying that they're going to raise rates four times the expectation in the markets themselves is for a two to three-time increase this year. so that is a very different picture than what we saw last year, where the market kind of pulled the fed in to a one rate increase in 2016. this year we're almost seeing the markets leave the fed to that two to three-time increase this year. so that is, again, kind of a very different picture in this quarter than what we saw last quarter. >> bricklin, your base case is two hikes in 2016? with a bias for more. >> that's right. >> what do you nee to see for that number to go to three or four? >> that gap we talked about earlier needs to be filled with a lot of good news. we need investment to really happen. we need to see things really starting to build momentum. we've seen the shift in expectations from businesses, and we've seen that in just about every survey right now, which is that expectations have been dramatically improved. we've got to see that follow-through. we've got to see investment plans shifting. and for that to happen, we probably need a bit more clarity on the tax front. >> i assume the minutes from earlier this week don't suggest the fed has any more clarity on this than we do, right? >> unsurprisingly, no. yeah. >> yeah, and i guess the other question is here, the s&p 500 is made up of companies that have been forced to be global, i mean, in large measure. so, now when you have china saying, look, we're going to look closely at companies doing business over here, is that where you would place the downside risk? >> yeah, there's a lot of external downside risks. you know, this kind of disconnect between expectations. we had the jobs report this morning on our trading floor. we were talking about, you know, what if we see a really weak number, you know? will that really kind of discount expectations for near term right now? and then we need to see that follow-through happen much later, but we'll deal with that when we start to see that. i think that's exactly right. near-term expectations, disappointment. external front, you know, do we see any kind of trade tweet that kind of ruffles the feathers again or something like that. a lot of scope for disappointment. >> hypersensitivity to any response from the president-elect on social media. tracie, bricklin, thank you guys. it's going to be a fascinating year. when we come back, a first on cnbc interview with the ceo of intel live at ces. then, why donald trump's pick for defense secretary reportedly resigning from one of silicon valley's most controversial corporate boards. later on, why wecode's kara swisher is calling on silicon valley to join the debate over cybersecurity, when "squawk alley" comes right back. >> announcer: post 9 is sponsored by fidelity investments. innovative ideas for serious investors. all right, let's get over now to jon fortt at ces in las vegas sitting down with a special guest. jon? >> reporter: thank you. i'm joined by brian krzanich, the ceo of intel. we're here in the intel booth at ces. thanks for being with us first on cnbc. >> it's my pleasure. >> reporter: i want to talk jobs. we got the jobs report out today. int intel's been in the process of streamlining, restructured, i think targeting 12,000 job reductions by mid-2017. are you looking to add also? because there's i lot of focus on perhaps upward pressure in wages. if that happens, it's going to come from companies like yours. >> sure, you bet. there was a portion of this that was reduction and there was a portion that was about restructuring how our workforce looked as we moved from a pc-focused company to focused around data center and iot and things like virtual reality. and so, there was absolutely some hiring involved in that, too. >> reporter: speaking of virtual reality, you had a keynote here at ces that involved vr headsets and barf bags. you've got a headset here, which is better than having a barf bag. >> yes. >> reporter: and it's a visceral experience. tell us about the technology that's in this headset and when we're going to see something like it on the market. >> sure, you bet. so, first, it was a great experience. and nobody had to use their barf bag, but we had it there to just kind of show or remind them just how real the experience can be in virtual reality. what's unique about this headset is all the compute is inside here, so you don't have to be tethered to a pc or anything like that. and then it has two real sense cameras here right in the front that actually map the environment and allow you to walk around. and so, you know, if you want to walk around and play a game, you know, you won't run into your couch or your coffee table, but you can also map the room and turn those things into part of the game. that's what we kind of demonstrated was we turned them into bunkers and turned our living room into a spaceship fighting aliens. and so, it can really transform your play area. >> when we're thinking about long-term revenue and margin for intel, is it more about the chips that are going to be inside these headsets, or is it more about the data centers that might be feeding data through into experiences like this? >> you bet. so, it's all about data. you know, the thing that's explosive about whether it's virtual reality or whether it's autonomous driving, is the massive amounts of data, right? the kind of data that -- you know, i always talk about the data centers of today are built on humans, the data you and i put together. the data center of tomorrow will be built on the machines. autonomous cars will put out something like 4,000 times the amount of data the average human does in a day. these headsets about 2,000 times. so it's quite a bit more data. so, it's the data center that's really powering intel of the future. >> reporter: now, i know you're transitioning intel away from reliance on the pc market, but there were some hopeful signs in the pc market in q-4, at least from gartner's numbers and things said from hp. what is your take on the health not just in the u.s. in developing markets but in emerging markets? >> sure. the way i look at intel is it's not that we're giving up the pc. we want to strengthen the other areas so we're a more balanced company. but we're excited about the pc. we think this is some of the best products in the history of the pc. we have a product coming out. i demonstrated our 10-nanometer cannon-like product at our press conference. and our oem partners are really innovating. so we're excited about the pc for 2017. we think the innovative products and the really thin and light and great battery life are going to drive people back to the pc. >> reporter: now, you're in that meeting at trump tower last month with the president-elect. >> yep. >> reporter: i was shouting at you from the rope line but couldn't get you to stop. >> i saw you, though. >> reporter: see, don't tell me that you saw me and didn't stop. i want to ask, now that you've had some time to chew on what was said in that meeting and the implications from intel, when you look at even relations with a country like china that's become important for intel from an intellectual property perspective from a partnership perspective, what do you think about the dangers of this trade tensions rising? are there opportunities you see? >> you know, i guess i look at all of this as opportunity. one thing i always remind people is intel is what i consider one of the great american manufacturers. depending on the technology, anywhere from 60% to 75% of our chips are built in the u.s. our major manufacturing is in the u.s., yet we export 75% of our product. we're the second largest exporter in the united states. so we consider ourselves kind of the role model manufacturer. you produce high-tech and ship it to the world. china's an important market for us. it's the fastest growing market we have. and so, you know, for us it's constantly balancing between, you know, great relationships with china and growing there but also the manufacturing presence here in the u.s. >> reporter: so, given that, what do you want to see policywise that's going to help intel to do more exporting to the rest of the world? >> and this was part of that discussion at the trump tower. the real answer is not a trade war, is not restrictions. it's really about making the u.s. more competitive, right? lowering the tax rates, making it easier for people to do manufacturing here. you know, all of that discussion, that's what will bring manufacturing back to the u.s. and/or make it stronger in the u.s. >> reporter: besides a lower tax rate, what's going to help you add jobs faster particularly that you have here in the u.s.? >> well, it's exactly that. it's the tax rate. we have the 35% tax rate. it's r&d tax credits, because it's really r&d that fuels those factories. and then it's, you know, making sure we don't do undue regulations. >> reporter: you mentioned cannon link and the 10-nanometer process. you're going to have more efficient chips that are also more capable. the pace of moore's law still strong? still going to, you know, be going for a decade or more? >> yeah, i guarantee moore's law will go way beyond my career. if you take a look at the history of moore's law, and i went back and studied it a little bit over the last couple years -- it's averaged anywhere from two to three years. most of our time, it's two years, but going back earlier, it was three years. we're going to end up about 2 1/2 years it looks like this time. so i still think it will be in that two to three-year range, but i see 10 nanometers, 7 nanometers, beyond that 5 nanometers. that's out there a ways, so moore's law's alive and well. >> reporter: and intel's tick-tock pace on changing the technology and adding design featur features, will that get back on the cadence we've been familiar with? >> yeah, and during this time period, we've learned that there's more opportunity inside the technology and the products. we've added a third product to our product line. so, used to be, you know, two products reached technology node. we've added a third. that third is generating like cavylink, performance improvements in both battery life and just processing, equal to a moore's law, but we're doing it through tweaks and architectural changes in the silicon itself. >> reporter: now, you were telling me before we were talking in this interview that you did more than 15,000 steps yesterday. >> yes, 4 1/2 miles, 15,000 steps. >> reporter: what have you seen here at ces that's maybe surprised you in terms of what people are doing with the technology that might influence what intel starts designing for the future? >> well, i saw three trends here. ai. ai is everywhere, right? in all the things that you have that are connected to the cloud, that cloud is going to become smarter and have artificial intelligence that helps feed back. so, whether you're making a wearable or a virtual reality headset, you've got to think about ai now. virtual reality is another one. and what we've really focused on is content is coming. you know, hardware always leads content. content's coming. great content's coming. and then the last thing i've seen is how far we've come in roughly a year or so with autonomous cars. i went on a six-mile drive with our delphi partner -- it's intel, delphi and mobile eye -- six miles on the road, including freeway, all hands-off. >> wow. >> did it yesterday morning. so, autonomous cars are coming. >> reporter: speaking of great content, thanks for joining us here on cnbc from inside the intel booth, intel's brian krzanich. >> thank you, jon. >> back to you in new york. >> thank you so much, jon fortt. a great conversation with intel. as we head to break, tech stocks have been leading the market throughout the morning and leading the nasdaq composite to yet another record high, currently sitting at 5,510. still to come, why james "mad dog" mattis is reportedly moving on from one of the most controversial boards in silicon valley. later, a cnbc exclusive with chicago federal reserve president charles evans. he's sitting down with steve liesman at 3:10 p.m. on the east coast, right here on cnbc. ♪ retired marine corps general and donald trump's pick to lead the department of defense james "mad dog" mattis is resigning from a corporate board according to the "wall street journal." the move effectively distances mattis from the controversial blood-testing start-up ahead of his confirmation hearings scheduled to begin on thursday of next week. mattis, however, will remain on the board of general dynamics, which is a large defense contractor with some $15 billion in revenue tied to u.s. government contracts. it does make you wonder, guys, what will happen to that board seat, whether they haven't found a replacement for him, whether they're waiting it see how the confirmation hearing goes, any number of reasons why. but you are seeing plans for tiller season to cash out of exxon, building the groundwork for the confirmation hearings to go well. >> they are, although interesting. it gives a glimpse of what's interested to be kind of a toxic relationship in the incoming. theranos, nobody wants to be associated with it. >> perhaps the confirmation is a good cover to resign from that board. >> you would think so. all right, we are counting down to the close in the uk and across europe. let's get to seema mody back at hq. good morning. >> hi, mike. european stocks are trading in a tight range following the release of the u.s. jobs report, but they're still poised to finish the week in the green. let's look at the rebound in european banks, playing a critical role in this resurgence that we've seen in european equities over the week. the sector now back to its levels of the year ago, up more than 22% over the past three months. of course, a sharp contrast to what we saw last year when negative interest rates and bad debt resulted in a sharp decline in many of the big financials in europe. take a look at currencies. the euro on track to post a weekly gain against the u.s. dollar. strategists surveyed by reuters say there's a 50% chance the euro will reach or fall below parity with the greenback this year, this on expectations that president-elect donald trump's planned tax cuts will force interest rates higher. the euro trading at 1.05 against the u.s. dollar. now, the weaker currency is one of the reasons ubs is slapping lufthansa with a accelerasell r saying the airline continues to struggle with rising fuel costs, uncertain demand and increasing competition. shares down 3%. speaking of losers, french drugmaker sanofi also among today's losers. a u.s. federal judge ruling sanofi and regeneron refringed the patent they hold for a cholesterol drug. sanofi ending lower by 2%. back to you. >> seema mody, thank you. we're about an hour away from trump's highly anticipated intelligence briefing at trump tower. we'll talk to re/code's kara swisher on what tech companies may do, when "squawk alley" comes back. first, two retail names moving in opposite directions. jcpenney, the latest department chain to have lower sales but gap to the upside. dow's up 40 and now just 60 points away from dow 20,000. back in a minute. good morning, everyone. i'm sue herera. here is your "cnbc news update" at this hour. elizabeth warren announcing via e-mail this morning that she is running for re-election in 2018, seeking a second term as senator from massachusetts. she said voters didn't send her to washington to roll over and play dead to donald trump and his team of billionaires and bigots. those are her words. the whale that killed a trainer at seaworld orlando in 2010 has died. tilikum was also profiled in a documentary that helped sway popular opinion against keeping killer whales in captivity at seaworld parks. he was estimated to have been 36 years old. no cause of death yet. according to adobe digital insights, 2016 online holiday sales topped last year's tally by 11% at nearly $92 billion. mobile sales -- those that were made on smartphones and tablets -- rose 23% to more than $28 billion. and having a mean boss could take a toll on your health and your reputation. a new study shows workers who felt bullied or intimidated by their bosses were unhappy, more depressed and unproductive. they were also more likely to behave badly themselves. that's the "cnbc news update" this hour. back downtown to "squawk alley." carl, back to you. >> sue, thank you very much. president-elect donald trump set to meet with top u.s. intelligence officials next hour for a classified briefing on russia's alleged hacking and influence on the u.s. presidential election. trump has routinely questioned the validity of this intelligence, even telling "the new york times" this morning, "china, relatively recently, hacked 20 million government names. how come nobody even talks about that? this is a political witch hunt." joining us to talk more about this, the executive editor of "re/code." kara swisher joins us having written about this lately. good morning to you. >> good morning. >> your point is that with so much doubt being sewn about these findings, it's incumbent upon the tech community to weigh in with whatever they know, right? can you expand on that? >> yeah. all i'm saying is i think they should support full investigations of all of these things, which john mccain and lindsey graham are trying to do. these are republicans trying to do this. i don't think that we shouldn't think that there's not a lot of political fraughtness around this, but that, you know, tech companies especially have been hard hit by hacking for years, and any support they can give to these investigations to find out exactly what's going on would be great. and i think they have a lot of expertise in the area. they should support, you know, and publicly support full and, you know, fulsome findings around this. and i am not quite clear why protect trump wants to not do that. i think that's the issue i have. and if he wants to not do that or wants to only investigate one or the other, i think we should investigate the entire thing, because it really impacts the tech community here. it impacts our economy. it impacts their ability to do business, and it's a concern to everybody in the united states. >> what kind of disclosure, kara, do you think would be hurt, though? because we've had the founders of crowdstrike, which were hired by the dnc back in may when they first realized that there was some rogue actor in the system, and they will say loud and clear on the record that it is russia, that it has the marcations of russian code. how much will it take to convince people who are skeptical? >> well, i think there are some statements, just general -- it's the same thing i've been talking about. it's general statements of principle. and in terms of what can be done and to lend its expertise to, or support to someone like john mccain, who's trying to get to the bottom of this. i think what's interesting about that quote from trump today is nobody said we shouldn't investigate china, too. i'm not sure why -- that's just being thrown out there to cast doubt and aspersions. nobody said we shouldn't be looking into all the hacking by china, which is extensive, and i think we know that, but this is a really important issue, and it's not a political witch hunt. it's what happened here? let's figure out what happened, how to stop it and what to do about it going forward, because it's only going to get worse as we move forward. and i can't imagine anybody, whether republican or democrat, wants to be manipulated by foreign governments in this manner. and i think -- there's nothing wrong with finding out, and i think the tech community could help do that and lend full support and weight, whether via lobbying, via public statements, via behind-the-scenes help, so that we can get to the bottom of this. and as difficult as it is, and what the problem is, is saying it's confusing doesn't mean anything. what we should try to do is try to take that confusion and make it into some sort of clarity, if we can. >> of course, we've seen companies who have been targeted by trump even in the past 48 hours. do you get the sense that silicon valley firms have the nerve to step into this debate, knowing what could come back at them on twitter? >> well, that's a self-interest thing. i think this is in the interests of our whole country. i think that's what they were talking about. there's nothing wrong with skepticism about intelligence information. of course we should have skepticism. that's the whole point of the check-and-balance system. i think skepticism is different than just casting aspersions with no evidence and making it look confusing. obviously, we should look into this, no matter how it comes out. and so, i think they have to make a decision just the way apple did on encryption, that this is a bigger issue than just their companies. apple has gone on the line, went far out on a limb on that issue, because they felt it was an important, critical issue. the same thing about foreign hacking. tech companies -- not just tech companies, every company should be worried about this issue and every citizen in the united states should be worried about this issue. and again, the more we can figure out what happened, we can figure out what's going to happen and what we can do about it going forward. and i don't know why that's an unreasonable thing to want to do, and that president-elect trump has made it unreasonable to look into things is -- i find it unusual. >> kara -- >> i don't know. >> as you're talking, we're watching pictures of elon musk walking into trump tower. what do you think he and the president-elect could be discussing? >> although we should point out, the pool is reporting he's there to meet steve bannon. >> okay. >> just to be clear. >> what do you think is on the agenda? do you think it would be economic? do you think it would be something else? >> i think probably climate change with him. i think that's a big issue for elon. i think probably, if i had to guess -- and i'm just guessing -- i know he wants the paris accords to be supported. so i think he's probably making his arguments on that issue. obviously, energy-efficient vehicles is important to him. he may be talking about that. maybe space travel. he has a lot of issues and things that are important to him that would be something he would want to advocate for. and he's a very forceful and convincing advocate around the issues that he has. and so, he has any number of issues he could talk about, but i'm guessing it's climate change. >> he also is a domestic manufacturer of cars. i don't know if that's going to come into play exactly. >> yeah, yeah, yeah. good for him! they can't attack him, right? yeah, yeah, he's got a lot of things that are very -- he has a lot of important companies that are all in these areas that trump talks about. so i'm sure they have plenty to talk about, all kinds of things, including with steve bannon and others. >> kara, i just wonder, you know, 14 days ahead of the inauguration if you have put into your head expectations for what the first 100 days will look like, whether that's from a policy standpoint, from an optics standpoint, from the standpoint of west coast reaction from tech companies, any of that. what do you think the story's going to be in the first quarter? >> i think everyone's looking at the repatriation of funds. i think that's -- if you want to go into just purely economic issues, i think that's going to be an interesting thing. >> really? >> and then what companies do with those funds. yeah, i think that's an -- i mean, i had all those reasons. i wrote the article about the reasons tech likes trump. and obviously, trump people retweeted or put on facebook, which was interesting. but i think one of them is the repatriation of funds. the second one is how much regulatory relief these companies are going to get. a lot of them feel like there's too much regulation. a lot of businesses feel that. so, i think that's one issue. i think that probably those two issues the most. and immigration. what's going to be the stance on immigration. and especially immigration as it relates to visas for foreign engineers and things like that. so i think those are three major issues. >> yeah. some commentary this morning is focused on china and whether or not once we start getting earnings coming in, whether or not companies comment on fears of china's retribution to anything trump-related, whether that's targeting u.s. companies, buying fewer products, more antitrust investigations. is that valid? >> sure. yeah, absolutely. i mean, a company like apple, that's one of its key business areas. china is an important market for apple, for example. some of the others say facebook, they don't operate there. but i think for a company like apple and many other technology companies, obviously very bad relations with china would not be good for a lot of companies. you know, we'll see where that goes. there's nothing wrong, again, with pushing back on china. a lot of u.s. companies have trouble operating there. it's just how you push back and what kind of dialogue you have. and if you just want to fight with them, i don't know how that's going to get anybody what they want. but whatever. i'm not a political negotiator, so i don't know what the best tactics are, but it surely will hurt if u.s. and china have a lot more acrimony, some companies here. >> your piece on "recode" this week is a good read. everybody should take a look at it. kara, thanks again. >> thank you. >> kara swisher from "recode" joining us from out west. coming up, richard gelfond talks to us from post 9 about china to expansion. still watching the 20k level now 55 points away. don't go anywhere. bri coming up today on "the halftime report," is the momentum for facebook, amazon, netflix and google back? all four f.a.n.g. stocks up big. plus, investor andrew left known for his short suggestions gets long for a key name in cybersecurity. find out why he is doing that. and a call on commodities that will simply blow you away. then, two notes set off debates today on disney and mcdonald's. we'll discuss and debate those as well. "halftime report" top of the hour. mike, we'll see you in a little bit. >> thanks, scott. you'll be talking about the big tech stocks. they are some of the leaders today. let's look at what the index is doing. the dow got within 44 points of the 20,000 mark, trading just a couple points below that right now. it has not been the typical reflation trump trades that have been working as is tech. it is industries. also, the 10-year treasury yield is higher, helping the financials. pretty much as close as we've gotten. the s&p 500 came within a point of its all-time intraday high as well. so a quiet rally building throughout the morning. >> haven't had a new high on the s&p since december 14. >> it's been about four weeks it's taken a breather. >> we'll see if we get anywhere here. goldman helping the dow. let's get to the cme and rick santelli and get "the santelli exchange." rick? >> thank you, carl. you know, when i was doing some earlier hits, when interest rates and the dollar started to turn and you could look at a two-day chart of 10s, there are some important aspects there, i made a comment, how long will it be before the dow moves into positive territory? and indeed, it did, and it has, and it's actually powered significantly through there given the size of the ranges outside of the last few days of volatility to the downside. the number this morning, well, as many have said it was about wages, but there's a lot of issues as we get to year end. i want to focus more on other things. that two-day chart that you were looking at. what i find interesting is that yesterday and today virtually both stopped in the low 2.30s. i always say intraday is important, but it's the closes. but it gives you important information, because normally, intraday swings are reactionary movements to today, of course, it was data. maybe china leftovers from some of their overnight rate volatility. but indeed that tells you where closes become important. the other chart is, of course, the dollar index chart. and the reason that's important is because it really is linked at the hip. now we're going to go to something broader. we're going to do a channel check, but not like the business newsy channel check. a 30-year channel on 10-year note yields. and i'm going to go through this quickly because it isn't that tough. this is what a squish charlotte going back to basically '93 looks like for 10-year note rates. here we are right now, of course. we have turned. since this is a big chart and the scales are big, it's just important to know that 2.60ish is the high yield close. but this is what i want to point to. the reason channels are nice is the reason they're following it right? but something's happened that's different. we hit the channel, we hit the top, make a new low. we hit the channel, hit the top, make a new low. we hit the channel top, we make a new low. but look it. do we hit the channel here? no, we do not. do we hit here? no, we do not. as a matter of fact, everything after this area is where all the gold is hidden, because once this thing failed and it bottom a double bottom, all bets are off. so, basically, what i would think should happen is, is that the next time we go through the channel is the important issue. if we back away, it's just going to turn into a consolidation trade. remember, this is a long-term chart! so, as time moves on, months and months, just by the very nature of the channel coming down, we will eventually test it. so, what's the point of all this? the point is, given that we've actually broken the pattern, i think it's going to be a volatile year for treasuries, especially if you're looking for a big 3% move. but should we get it and close above it on a daily and weekly basis, that is the most explosive setup for 2017 that you need to monitor. kayla, back to you. >> all right. thanks so much. we'll be watching it, rick. still to come on "squawk alley," imac ceo rich gelfond joins us at post 9. look at stocks. we came within 44 points of dow 20,000. we're getting close again. we're awaiting trump's intelligence briefing as well, and we'll have more "squawk alley" in a moment. we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. the first all-time intraday high since december 13. the dow at session highs, 19,961. 39 points away from dow 20 k. still have been looking for 1% intraday moves in the s&p. tough to come by, especially on the downside. >> yes. haven't seen up with of those, i think it's one of the longest stretch necessary 20 years you haven't had a 1% downside move. it seems like you needed bond yields to resume their climb in order to get stocks unlocked again from this rang. at least for the moment it looks luke they likes the jobs number, not too strong. upgrades of disney and the banks working again. we'll see if it's just a matter of flirting again with that 20,000 mark. it's been hovering for four weeks now. >> although it was a -- as joe described it, ham on rye jobs report we got this morning. 156,000 jobs added. but the best wage growth since 2009. that's something that people are hanging their hat on. although now people are saying with the employment picture where it is, if we did get those 25 million jobs out of the trump wants to add, unemployment would go negative. >> that's right. >> so figuring out where to put those is -- >> need a lot of immigration in that case. really full employment. so we're doing to keep our eye on all these levels. don't forget next week, earnings, bank earnings a week from today including jpmorgan, pnc and others. alstt an n m, s&p hit that all time intraday high a few moments ago. the dow session highs, 39 points away from dow 20k. we're going to keep on eye on that. kayla? >> earlier this morning elon musk met with the trump transition team continuing the president-elect's teams to. i max announced a new deal with regal today to expand the u.s. footprint while remaining optimistic on china which is a key moving market, especially for i max. rich, it's good too we you. >> great to see you, too. >> you guys have a few screens in china. you worrisome of this rhetoric makes it tougher to do business there for you? >> i don't really. we have over 400 screens now open in china which is actually larger than north america in terms of how many screens we have. here, we are hong kong company there, so we spun out our china business into another company about over a year ago. so we are a chinese company actually. and the parent company is a canadian company. i think even if the worst case happens it not going to effect us in a material way but also our business is pretty good over there. i think the movie industry is unlikely to be an industry that's impacted by a lot of the talk. >> so if the chinese government opened investigations into taxes or anti-trust as now is reported that they would if this talk continues to be tough on the president-elect, you don't think that would have any material effect on your business? >> i don't think so. because, again, we're not a u.s.-based company. we're a chinese-based company. the reason we did it is we want to be part of the landscape of china, our investors are big chinese mutual funds, state owned companies. we try to insulate ourselves in advance from what could go wrong. and in fact i think we're pretty good shape. >> while you're talking, rich, we want to get to eamon javers. >> president-elect is tweeting, within the hour before his scheduled to go into the high-level intelligence briefing in which u.s. intelligence officials will give him their report on russian hacking in the 2016 election and explain to him exactly how they came to the conclusions they came to here. we heard a lot about that yesterday on capitol hill. now donald trump is tweeting about that. he says, aim asking the chairs of the house and senate committees to investigate top secret intelligence shared with nbc prior to me seeing it and to refresh you, let me bring you the story on nbc news said that they sell bracelebrated when tr. they reported a senior u.s. intelligence official with direct knowledge confirmed to nbc news the report on russian hacking delivered to president obama thursday says that u.s. intelligence picked up senior russian officials celebrating donald trump's win. now, donald trump saying he wants to know how nbc news got that information and he is asking the chairs of the house and senate committees presumably here, he's talking about the intelligence committees but not specified in this particular tweet, carl. we'll wait and see whether the president-elect tweets more before that meeting which is scheduled at 12:30 eastern time at trump tower. >> an awful lot in the air today. thank you for the update on that tweet as we now see the dow just about 31 points away from 20k. rich, you make the point you guys are essentially in china's view hong kong company. do you feel though for truly u.s.-based companies if, in fact, the chinese start to bristle here? >> i think it's way too early to say, carl. i think, you know, president-elect trump is -- he said things and then he backed off them. and i think china's such a big part of the global growth story and the u.s. makes a lot of money in china. i think it's complicated. >> you did mention the movie business doesn't seem to be in the crosshairs, a big export of the states. what about china rationing more of the u.s. movies that get to go over there? >> one of the things you look at is the chinese film industry than a very bright spot of growth for the chinese. and they went from like 2,000 screens to 41,000 screens. they're now the largest film market -- largest number of screens in the world. and that's going to real engine of domestic growth there. as you know they started to look at domestic consumption rather than export. so i just think why would they punish their own real uk succes. they also hope to have an export business in film. that's been in the news. why would they hurt that? >> they got "rogue one" today. >> they did. >> how does that matchup to "force awakens"? >> some early numbers. as in the rest of the world the relationship of the box office to episode seven is about the same, which means 50%, 60%. i max indexing interestingly is way higher of the midnights. you don't want to wake too much out of it but did 35% of the whole country in the midnights. >> geez. >> incredible statistic as we're looking to forecast how this movie going to go. rich, always appreciate your time. thanks for being here. >> thank you. >> rich gelfond from i max. the story of the near future as we play the dow 20k game just about 30 points away or so. ten-year, 241? >> yeah. >> there had been talk about whether or not we were in this breather period, whether the reflation trade although not reversing was taking its time. >> some air has come out of it although 261, i think, three or four weeks ago. obviously a little ways to make up. >> sometimes we have a case of jinxing ourselves when we put the market alert up. >> don't we know it. let's give the ball back to wapner at hq. >> guys, thanks so much. we'll pick the ball up right there. welcome to the "halftime report." i'm scott wapner. s&p 500 hitting a new record high. carl and the gang were just saying we are once again closing in on dow 20,000. a little less than 50 points or so away. we've been flirting with a little bit better than that over the last several minutes as well. lots to talk about including what's happening in the markets. keeping our eye on trump tower as well half hour before trump -- president-elect trump is scheduled to get that intelligence briefing as well. with us

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