We begin on dow 19,000 watch. President elect donald trump lays out his first 100 days in the form of a video. Says hes going to abandon the tpp trade pact on day one in the white house. Amazon could be getting into the lucrative live sports business. Reports say they have held talks with the nba, mlb and the nfl for live game rights. But first up, stocks hitting those record highs, the dow is within 44 points of 19k, the s p just two points from 2200. Small caps making history as well. The russell at an alltime high and in the midst of its first 12session winning streak in 13 years, jim. Technicians love this setup over the next few weeks. More than 700 stocks hit an alltime high. Thats very positive. The groups that have been involved in this rally are broad based, they dont seem to just be all oil or all tech or all bank, its really a huge part of the s p. We saw yesterday the kind of a catchup trade with a lot of the oils. Weve got cold weather, a potential opec deal, a president who obviously a little more pro fossil fuel so its a broad panoply. Ive got to admit every time you think its done, it finds something else. Yesterday was oil going up. It was like a pretrump move. Oil going up, a lot of stocks go up with it. So its today would be a day that it could rest if oil comes back down. So what dont you trust going into the new year . Let me give you an example of what i dont trust of the last night im reading jack in the box and im on the palo alto call. The palo alto call fraj frankly was i dont want to just call it disappointing because they did a lot of things. They talk about a mixed environment and taking longer to get some deals done, which is unfortunate, not as robust as expected quarter. Now, one of the things thats happened, is no one is paying attention to these. Wait a second, its a new year, everything is great, its tech, theres servers. Weve got to protect servers, right . Email. Sometimes the facts dont get dont fit the story. But this is worrisome because its not what you want to hear on a call. You dont want to hear that jack in the box had not great a slowdown in samestore sales so weve got to deal with reality, deal with the fact that medtronic did not do the number, but dollar tree, signet, they were two a lot of people expected bad things from and the short squeeze is on. Yesterday was a fang day, both fang Diamond Energy and alphabet now google. So you had a lot of money coming in or else those couldnt be going up at the same time as all those others. Not to put too much stress on it, overnight the earnings we got were largely not good on monday. No, thats right. You mentioned palo alto and burger king. Also we got dicom, a small provider of Telecom Equipment and the like. Broadcom i think had some headline numbers that were pretty good. Yeah, look, dont get in the way of the Semi Conductor rally. The Semi Conductor rally is just incredible. Do not get in the way of that thing. I just have to tell you that the semis have been leaders here. Micron and particularly amd, as everyone keeps thinking that theres something going on in your world, david. Which world would that be . In m a, i mean . West world. I have yet to catch that. I think thats a fair assumption. Things are a bit quiet right now. Its unclear what well get in terms of before year end in m a but the pace continues and probably is quickening. Everybody ive been speaking to in t t, technology, media, semi com tends to be out. A lot of people talking about some of the Bigger Tech Companies getting together, but what you have to realize is that the balance of power went from the western digitals and the seagates to the companies that buy. The companies that buy exercise a little too much power so the companies that are suppliers got together, being a little bit more tough. That is how broadcom managed to get some strength. Qualcomm trying to do that but here theyre worried about china. Theyre worried about not the trade war, but the ongoing trade wars. Its not a trade war, theres already been a trade war. We just didnt know. We were on the losing end of it. Were kind of like, well, geez, there could be a trade war. Theyre like we have a vicious trade war going. And the video although qualcomm has come to a much better place in china over the last year and a half than they have been. If you caught the youtube channel, david, i dont know if youre busy watching broadcast or cable, but theres tpp is one of the first things that goes and that says although thats a benefit for china. Right. The tpp was sdiedesigned to exclude china. If it goes away, thats good for china. Right. But im saying that the tenor of the discussions with china are not theyre a little strained. Hence that china outlet, that newspaper thats communist party was talking about apple. Now, i happen to look the qualcomm nxpi deal very much but qualcomm has been going down ever since trump got in. Nike responding to that tpp vow to make it the first day one priority. Do you believe that as we withdraw from the deal that free trade finds a new Global Leader in china . I mean its not going to just stop. I was against tpp. I had stances on mad money that were prewhatever happened in the election. I always thought that we didnt get the bet of these deals and that this would be better but not better for nike. Nike was a champion of it. What can i say. Nike you can make nike a champion. That should be maybe a policy strategy. Or maybe you look at it differently. Im trying not to cast aspersions on nike, its a Great American company, and they want to be able to produce at a low cost and beat adidas, which i dont blame them. I want us to win on trade. I dont want us to lose on trade. You look at me like what . Im aware of that. Youve been talking about that for some time. You are i dont like the fact that the koreans and the mexicans and japanese ive watched the koreans, mexicans and japanese build plants within a few miles of where i have a place and i just think this is what america could look like. I mean the growth, the unemployment, 4 in the county, in the state that im in. Its just amazing. You would love that kind of growth and all the ancillary businesses that are formed because of it. But some argue we got that in the southern united states, south carolina. Yes, but the last few years we havent. And they have gone there. Bombardier just went there in a big way. Thats going to be a key test of trumps promises. You know, i think there are others who wonder whether the jobs will come back, how many will there really be. If you build a new plant, how much robotics will be in that plant as opposed to human labor. Its the ancillary. You need to put a ppg there, you need to put a Semi Conductor factory that makes those just in time chips. Its those guys. Its the need to have Grocery Stores and the need to have dry cleaners. When you see these executives get off these airplanes from japan and germany, theyre not staying at motel 6. No, understood. Ive stayed at motel 6. La quinta, i love la quinta. We understand the multiplier effect, yes. We get that. Oh. We do. Okay. Im defensive. Im defensive. No, you may be right and its going to be fascinating to watch. Im going to have a youtube show on it. Because i need its all the rage. The president elect releasing a statement on video outlining his priorities once he takes office. This was created and distributed by the transition team. This was not an event that was open to the press. Trump began by talking trade and said, as david pointed out, he plans to withdraw from tpp and then he moved on to energy. On energy, i will cancel jobkilling restrictions on the production of american energy, including shale energy and clean co creating many millions of highpaying jobs. Thats what we want. Thats what weve been waiting for. Clean coal and shale. There are not millions of jobs that can be created, theres just not. One of the reasons is because the epa has made a mandate that all of the utilities are following, which is the phaseout of the 40year plants that were built when jimmy carter called us the saudi arabia of coal. You know, those plants had a 40year life. You can try to augment them or scrap them and build natural gas. Coal is still the baseline fuel, but natural gas will be the baseline fuel in five years. But there are tremendous number of jobs involved with transporting natural gas from where it has to go and oil from where it has to go. But in terms of the drilling, look, if the gulf of mexico were economic, yes, you would have more drilling. But were stuck in a world where president elect trump does not control the price of oil. Natural gas is very cheap. Coal, can you bring coal back . Maybe to ship it away. But, look, our utilities thought that hillary was going to win too. They made judgments. Well, its easier theyre all moving natural gas is whats powering them. Its cheaper. Natural gas is plentiful. We have the most natural gas of anybody in the world, why not take advantage of it. There will be no new coal plants built in this country, period. Period. Thats just what the major utilities are committed to. Millions of jobs seems like it might be a stretch. Theres a couple of states where they are without a doubt whats coal right now, fo40,0 jobs . If you speak with Norfolk Southern and Union Pacific and csx, the coal loadings are down more than 20 and thats because natural gas is triumphant. Thats not bad. Natural gas i would argue is cleaner. I know there are people that think natural gas is dirty. Its certainly cleaner than coal unless you spend a fortune to make plants clean and the utilities have given up on that. Sure. It made sense. They were afraid that one day you would get a president that wouldnt do it and say, listen, were not going to have nicole plants. So they were phasing it out before what they thought would be a series of rules. I happen to be pro utilities. They have to have a balancing act. You cant just make it so that people who have no means get electric bills that are super high. You cant have it be a big part of disposable income. Icahn, if the small and merchant refineries start shutting down, it will jeopardize the economy and National Security alike. The Trump Administration with new leadership at the epa should move quickly next year to reform the biofuels mandate and forestall the crisis. Thats just a papered over trade that has gone wrong. It is an act that is wrong. 2005 when you read his editorial. Hes totally right. Regulation from 2005 that allows others to create them and ones who dont have them, buy them. The biofuels hes so right on that. That was such a good, well articulated argument. Everyone whos followed now, people have investments in these companies. But this is entirely like a cap and trade program gone completely wrong. I cannot believe that president obama didnt get involved in this, but its small potatoes in terms of the larger world. Yeah, this is a system that failed. And small refineries are paying way too much. Its a big subsidy for other refineries. Its ridiculous. I wish it didnt take icahn to get there. But hes dead right. That is just a factual set of arguments he puts out that are very cogent. Very good piece. A good read today. When we come back, we might see dow 19k and s p 2200 this morning. We need 43. 2 points to get 19,000 on the dow. Take a look at the premarket, looks like we might get there at the open. More squawk on the street in a moment. 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 im stressed trying to figure out this complex trade whats with the dogsized horse . So i brought in my comfort pony. Well, you could get support from thinkorswims inapp chat. So you dont need a comfort pony. So what about my motivational meerkat . Inapp chat on thinkorswim. Only at Td Ameritrade. Amazon reportedly exploring a Premium Sports package with prime membership. According to the journal, the company has held talks with major league bail, the nba, the nfl, and mls for live game rights. A lot of these rights are locked up for years, but youve got to start somewhere, jim. You know, its funny. I dealt with some of the people in sports two years ago around the super bowl time, happened to be on a panel with a lot of the guys who were in charge of sports for the major networks. All they said was weve got to do these tenyear deals. Why . Because google is going to come in. They were worried about google, alphabet. They said its only a matter of time before alphabet does this preemptive, look, youre paying x but we want all the Games International and will intrude. It turned out they were right about that idea but the wrong company. We talk so often about the crumbling of the socalled bundle, the bundle of programming that you buy as a consumer of cable news, including this very channel. And that sports is really what holds that bundle together. As you point out, these contracts are longterm in nature but we guys are in the midst now of significant and i would argue seminal change in the way people access tv. The internet is now tv. Tv is becoming the internet. And whoen you have directv now, which launches i think next week, 100 channels at 35. Some say you cant get the broadcast networks. Last time i looked you can still put up an antenna and get the broadcast networks. Hulu is coming out with their package before not too soon. Just put that up. Youre like al franken right now. My parents are like, did you who pulled the jimmy, did you move over the thing . Just think about if you have a netflix subscription, an amazon subscription, you get an over the top package, what more do you need if youre going to be able to get some sports or can get the broadcast networks in some fashion through your antenna, if its possible. Maybe thats somewhat naive and in an urban area it gets tougher. This change is happening and everybody is paying very close attention. The time warner at t deal of course also is a key and we are going to see real change, i think, in the next 18 months in terms of at least responses strategically from a lot of companies. Okay. Then what does it say about whos currently buying and whether they should now be prepared and will have to pay much more because of a deep pocketed player like amazon can go make a deal. Thats a great question. If you were time warner, you might want to sell out. You might want to sell at this point or will you see more integration. More integration of once again back to distribution and content the way weve seen with time warner of course and at t. If you were cbs maybe youd want to tie up with a movie theater. With a viacom and then something. But if youre a charter do you want to own content . If you are a comcast, which you already have a lot, do you want more . Its going to be fascinating. Amazon has got a lot of money and they play with wamp em. They have a lot of money. Why dont they just bid for the nfl . Would you really want all that . No, i dont like the cleveland browns. Right . The jags is all yours, small market. Keep the big market players. When we come back, ill get cramers mad dash, count down to the opening bell and take a look at the premarket on this tuesday. More squawk on the street in a minute. Weve gaot a mad dash. Tuesday, thats the day. Thanksgiving is in two days. Yes, it is. Its getting cold outside. And isnt that interesting . Because the old Burlington Coat factory which morphed into burlington once again more like tgx which had a great number. So this is a trifecta of companies that discount. Burlington, tjx and ross. And, david, i was looking for roughly 34 cents. It came in at 51 cents, Comparable Store sales well in excess of what the street was looking for. Just an extraordinary story because they were private equity turned. Not unlike Dollar General. Dollar tree reported great number this morning. So were seeing some this is not a surprise. Burlington has delivered. What did surprise was the stock had run so much, people thought it would sell off. No. And this is just a remarkably wellrun retailer. I dont know if youve been to yours lately, it looks much better than it used to. So retail still can win. Not only can it win but some of these Standalone Stores like burlington and best buy, very, very good. Its been a very good season for retail. Very good. And we are on the cusp of buying season. All right. Speaking of buying and selling, were going to have the opening bell in just a few minutes from now. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in two and a half minutes. A day after all four indices have intra day and closing highs. The last time we got that, december 31st of 99. And a lot of the people i talk to who are market historians are continuing to compare this period to what was about lets say 38 days before we hit a high of record proportions. I come back and say its the makeup. Its the companies that are doing quite well. When you look at where alphabet was on a market multiple yesterday before it took off, it was below coal gate, equal to clorox. This is not the way it was in 1999. Cisco was not the most valuable company back then. Cisco was not a high dividendpaying company with slow growth, it was a Fast Growth Company with no prospect of dividend. So we can decide that amazon and tesla are out of bounds, but facebook announces a 6 billion buyback. Why . Because their stock goes down to a point where actually on 2018 numbers irz not expensive. So i dont want to compare those two other than the fact they happen to be calendar dates. Somebody pointed out the buyback from facebook is the same amount of capital they raised in the entire ipo. Its an extremely lucrative company. I really felt that this idea that the metrics remember, they have 200 metrics. Some of them were off. This is a company when you speak to ceos, when they try to figure out how to get to people, they just go right to facebook. Like how did you get those new customers . Its a monster. Financially too. Take a look a