As for european markets, you ask, lets take a look at how we fared on the big three or are faring. All up with the ftse in the uk the biggest gainer so far. The tenyear note yield, certainly a focus since the election. Wow, still cant quite get over it. 2. 228. Where were we before the election, 1. 7 . I checked in for refinancing and its already changed dramatically. You had to make your move. They adjusted that one so fast your head will spin. Oil up this morning, which is a bit of a change and brent crude at the bottom there. Our road map starts with another record close for the dow. Thats six Straight Days of gains, but the s p and nasdaq were down. Plus a beat in a race for home depot as retail earnings kick into high gear. And the white house transition continues. Mary jo whiteout at the s. E. C. As the Trump Administration begins to take shape. The dow aiming for a seventh straight day of gains after hitting a record high yesterday. Warren Buffetts Berkshire hathway buying airline shares and home depot posting better than expected Third Quarter results. Lets just start there, jim. You just mentioned mortgage rates, housing, home depot, and yet theres another part of the story that says, well, taxes may come down, Infrastructure Spending, and it was a good quarter for them. Well, we have to listen to the Conference Call because those guys have always given you guidance much better. Their actual lease, i fault them rarely, but their actual release tells you less than some other company. Unless you hear what they say and the stock jumps on just the numbers, you wont know. Bill miller was saying earlier, maybe they have a high tax rate. When i look at home depot and i think this was part of a trade that went on right before the election, that spend has stopped on your home. You know, retail Sales Numbers were really pretty good, and i didnt get spend stop on your home from anything other than whirlpool. We had whirlpool and we had masco and sherwinwilliams. Thats the paint aisle, the appliance aisle and the cabinet aisle. Ive got to hear from home depot pause those companies arent doing how home depot did. No more than how foot locker did if nike and adidas are in a price war. They have been very, very constructive. Their fantastic cfo has urged people to stop looking at the quarter to quarter and look at the longer term, the big demographic shift in the country, people moving out of their house. Household birth rate. And it really just comes down to her saying theres a lot of money still pent up to spend on homes so i like her longterm forecast. Shes been more accurate than anybody else, any economist i follow. All right, but your point being a good one which is lets wait and listen because as you say they dont provide that much in terms of granularity. The stock up today is advanced auto parts. If you read the release its downbeat but the analysts are saying, hey, this is the beginning of the term. I dont want to caution people too much to not react but this is a quarter if you react off the headlines, you have been so wrong that it just doesnt pay to be able to say, you know what, darn the Conference Calls, full speed ahead. Its been the opposite. Conference calls are everything. As you pointed out, were going to get more retail earnings. Overall environment right now, were almost a week removed from the election, the unexpected market moves, certainly the unexpected result and then the market moving in a direction that people did not expect. And the biggest part of the story i think has been rates. I think bill miller earlier on squawk box saying the long bull market in bonds is over. Right. I can get that. Remember, if the government is going to start spending again and you have the united view the government is going to spend again and taxes are going to go down, we know that is bears for bonds because you have to borrow. Ive been saying if mr. Trump wanted to drill home the infrastructure, time to do a 500 billion bond because to make America Great again because thats what you need. I urged this to tim geithner and he said, no, youve got to borrow short. I said no, if you lock in long, even though it cost more money in the shortened, what a great opportunity. But a restaurant chain, zoes, they were trying to say why business is going to be better. Kevin miles, whos a terrific ceo, said one good thing is we have the election behind us. I continue to think thats what terry was saying with macys, mr. Ellison when he was talking about j. C. Penney which missed the quarter badly and the stock is up dramatically. Lets not lose sight of the fact when you listen to these ceos in retail, they think its a sea change. They actually think the election is a sea change and they definitely think now that its behind us, people are going out again. Popeyes, expect people to come back. Theres a look at jcp. I did reference those words from bill miller but lets take a listen to his thoughts about that 35year bull run in bonds. In my opinion the 35year bond bull market is over and so people are going to start losing money in bonds. The overinvestment in bonds is going to switch somewhere and i think a large part will go to equities like it did in 2013. Wishful thinking, jim . Its funny. It comes on the same day Warren Buffett loads up on airlines. Thats been bill millers segment. We have a lot of rep taj about different Fund Managers and their filings come out. I was going over where Warren Buffett may have been buying the airlines. He was buying them at six times earnings. United airlines, these are well off their highs. 73 for the high in 2014. American was at 56, delta 42, southwest at 49 last year. Look at, guys, youre buying them back where they were. Youre not buying them where they were july 7th or june 30th. Plus we dont really know. I guess it does bear mentioning, hes not making all the Investment Decisions at berkshire. No. Hes got other people doing that and i think hes been empowering them more to do so. I know he spoke to becky. Becky row lelayed to us southwe airlines also a name. By the way, he was burned way back by u. S. Air. Investors have poured their money in airlines with terrible results. Its been a death trap for investors. In 96 he said u. S. Airlines revenues would increasingly feel the effect of an unregulated and fierce competitive market. My favorite one is he said that theres little competitive advantage ever since the days of the wright prorbrothers. If a farcited capitalist was present at kitty hawk, he would have been shooting them down. He has not been particularly positive. Its been a long time since he owned an airline. He did end up making money on u. S. Air. Most people dont remember that. I like ever since oscar came into United Airlines. He came in in september of 2015. The stock is not back. You can still make a case for that one. But its now selling at eight times earnings. Jet fuel is a big variable. Theres new engines coming out. But when you take a look at where these stocks have traveled, david, just this quarter, i think that people who get excited, they must realize that youre talking about stocks that have had remarkable runs. American has traveled from 25 to 43, its now up 5 . During the period when buffett was buying. How about this one. United continental is up 9 for the year, it was 39 on july 6th. Its going to open around 64. So people who think theyre getting the buffett bargain, no, thats when buffett was getting the bargain. And it always bears worth repeating 13 fs are dated and we also tend to make a lot of some of these hedge Fund Managers, those that have not had particularly strong track records, though i would not take away from their smarts, but its interesting how we can celebrate some of their stock picks when they have not been able to perform at all or deliver any alpha. Maybe it really did peak when we started paying attention to these filings. Yes. The filings, when i was a Hedge Fund Manager we had to make the filings. There was 50 of my fund that i never traded. Those are the Cape Cod Bank and trust names. 50 of them are like are you kidding me . I cant believe that i filed that i owned x. Im short x. But people just presume that i loved x. And x, by the way, was not no, not letter x, i understand. I remember, i used to talk to you back in those days. You owned something and lets get more from carl at ges mines and machines event in San Francisco. Carl. Good morning, david. Yeah, fascinating your discussion about aviation, certainly thats going to be part of the discussion here. This is the minds and machines conference, 2600 vendors and partners of ge. Its been going on for about five years where they talk about digital and innovation. Of course a big part of ges strategy Going Forward. We talked to immelt a couple of weeks ago about that baker hughes partnership but have not spoken to him yet about the election. If you believe the election was a rebuke of globalization and free trade, you do have to ask what is ges playbook. It was designed almost entirely in the 70s and 80s to compete dploebl globally, to take on the japanese and the germans. They compete in every country in the world. Twice as many workers abroad as there are in the u. S. So well talk about the results of the election, what it means for production, manufacturing production in this country along with an update on bhi and alstem and the q4 guide and media. There arent a lot of large cap ceos who dealt directly with trump in his private life. Immelt did some of that when ge owned nbc and nbc ran the apprentice. So thats coming up in the 11 00 a. M. Hour east coast time. We cant wait. We are looking forward to it also, carl, thank you. The stock looks like its breaking out. Ge. Yeah. It would be curious to hear his thoughts. Its funny, in the few conversations ive been able to have with chief executives, embracing, as you might expect, tax reform, Infrastructure Spending. Very concerned about immigration and believe that if in fact the Trump Administration follows through on the promises made during the campaign that will be a negative for the economy and for business overall. Obviously in that newspaper, Chinese Communist party, they talked about we could switch from boeing to airbus. Ge is agnostic and can have their emergenci engines everywh. You notice that their bids in tech are furiously again because Interest Rates it turned out they were so tied in with Interest Rates. Youll sell the banks with rates coming down. Even down a little bit, and youll buy the financials. One i want you to keep track of. Please tell me. Is the features that twitter added last night. Control features expanding the mute feature, giving the ability to mute words and phrases. Hateful conduct option with reporting flow, i like. Improve the ability to process these reports. A lot of this enforcement overall in training our support teams, all of the things are something so that salesforce backed away even as mark benioff reiterated they may have elected the president. I just point that out because a lot of our viewers focus on tweeting and some of us got so turned off because our wives look at it or our kids and say, geez, thats a horrible thing. It can be very deflating if people are attacking you. Even if its 1 out of 50. Mine is closer to 25 out of 60. Obviously you know the company well. Is this an important seminal moment for them or just another oh, carl has stepped away. You know what, lets take a break and talk a bit more about twitter when we come back on squawk on the street. Also be focusing on the markets for you as well. Weve got a lot more. Stay with us. How else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Now lease the 2017 gla250 for 329 a month at your local mercedesbenz dealer. Mary jo white will step down as the s. E. C. Chairman in january after more than three years on the job. This comes as donald trump prepares to assume the presidency. Whites departure paves the way for trump who has vowed to dismantle doddfrank to pick a new chair and potentially reshape the s. E. C. Youve had some issues with Mary Jo White. No, i had issues with Elizabeth Warren attacking Mary Jo White. I think shes a dedicated public servant. She recruited me coming out of harvard law school. So all i can say is she directly tried to interpret as an agency, tried to interpret the law. And i think that people like Mary Jo White, who are they come from a background of enforcement but also private practice recognize you cant free lance. You cant just say im not going to enforce that law. But i think that the phase of that, if you dont believe in the law and you think the law is going to change would put her in a very untenable position. She would not be serving really the overall ethos. Do you have any expectations in terms of what an s. E. C. Will look like under a Trump Administration . I think that the s. E. C. Has tried to be enforced with both spirit and letter. Maybe it will be more letter and less spirit. I didnt think, by the way, that Mary Jo White was a particularly heavy hand. I also think that the u. S. Attorneys have been very straightforward in prosecuting Insider Trading. I dont know. I totally understand that she did some very good things about money funds. Her hands were tied. I mean obviously like a lot of other people in government, they were split in the s. E. C. But i wish her well. She didnt need to take this job. Shes had a very, very successful career doing a lot of things and i thought she did her best in an acrimonious environment. And tasked in part to modernize the s. E. C. Yes, without a lot of money. Its not like in britain where theyre the highest paid the head of their s. E. C. Is one of the highest paid people in government and they have a lot of latitude. But, look, in the end, david, the s. E. C. Is not going to be able to say heres what Insider Trading is. Thats up to congress. Yeah. And that actually could even end up being up to the supreme court. Yes. So i just i feel like that she was under attack from both sides. I thought Elizabeth Warren did a a i wish i could call her and say, listen, i just want to apologize on behalf of people, that was wrong. On the other side it looks like that she is being whipsawed by the prospect of lays a fair. The s. E. C. Tends to be reactive rather than proactive. And to your point, the real veterans tend to move on to be heads of compliance where theyre paid multiples of what they were earning in the s. E. C. Shes had a chance to be in private practice and done quite well. Look, im really out here saying this is who you want in government, Public Servants who have worked on both sides, understand prosecution. She did a great job and i salute her and i hope that she goes on to a less acrimonious world because that would be deserving. I think she did her best and she did a darn good job in a world where things change rapidly. Are you thinking about your mad dash . I hope so. Sure. Because weve got it coming up. We didnt get to that many stocks in the open there. That will change. Well also give you a look at futures so you can see where we stand on the markets. Perhaps a bit of a higher open, especially for the nasdaq. Tech has been beaten up pretty badly. Yeah, maybe its done for the day. And that seems like it may have run its course, at least for today. A lot more squawk on the street right after this. Alpha seems more elusive today. Is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade message in a bottle. Yes. Youve got a mad dash. Where do you want to go . Yesterday i had a cyber call which is they do email security and we know theres also email security. Most of Cyber Security has come down. This morning morgan stan be upgrades fort net. Why is this important . Because they announced bad numbers. They actually had a shortfall. People are circling back to these stocks, i think theyre circling back because i think in some ways people feel like the Trump Administration will take Cyber Security far more seriously. I think that you have to because of emails, the emails. I would like to think that the previous administration, the Outgoing Administration was taking it pretty seriously too. I think everyone takes it seriously, but youre beginning to get agencies, like theres a new york state regulator who says, listen, you guys have got to do this. So what the ceo said last night was very interesting. He said, you know what, a lot of people did lip service bent. Now its going to have to be you are at fault if you dont spend a lot of money. No one wants to spend a lot of money because its v