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tv   Squawk Alley  CNBC  January 16, 2020 11:00am-12:00pm EST

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good morning it's a.m. at apple headquarters in cupertino, california, 11:00 a.m. on wall street and "squawk alley" is live ♪ good thursday morning. i'm carl quintanilla with morgan
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brennan and jon fortt at post 9 of the new york stock exchange stocks rallying today with that trade deal reaching phase one in the books. banks, earnings season capped off nicely by morgan stanley dow closes above 29,000 yesterday for the first time and we see s&p 500 up over 3,000 for the first time >> guys, good morning. chris, the question i've got this morning is where do you find opportunity in a market that's been roaring like this? you look at the growth fund, also small caps -- are small caps a place where investors should be paying more attention? they arguably haven't run quite as much. >> i spent the last two days meeting with about 30 companies, small to midcap. and the excitement in the hallways at the conference were quite good the opportunities are very specific, though i think you have to look at the end markets.
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you know, data center recover will be better this year 5g we've talked about, infrastructure and devices but we also see software security, clearly after the iran situation, companies started to rally. that threat isn't going away and software that helps to optimize businesses. when you think of retail, people think of amazon. what's powering the success in those areas that are causing companies to be able to compete with amazon? there's a lot of information in the background and those were the companies we were visiting with in the last few days. >> maybe some of the big guys still have room to run kevin, you have an outperform on facebook, which has had quite a run up to this point what's left that investors haven't considered >> thanks for having me. with respect to facebook, i would say the opportunity set over the next year or two years remains probably as vibrant as ever when you think through not just the advertising business but in
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opportunities in e-commerce, which mark zuckerberg alluded to in his outlook for not just next year but the next decade, that's really compelling. and i think from the stand point of sentiment, you have the opportunity where investors start to walk back some of the concerns they had about the worst-case scenarios in regulatory so you have the opportunity to have both positive estimate revisions and sentiment improvements so for facebook, it seems like the runway remains very long, very compelling. >> chris, big return, big rally for semi stocks last year. yesterday, you get this phase one trade deal, simultaneously reports there will be a greater crackdown on supply chain where huawei is concerned for u.s. suppliers and this morning taiwan semiconductor manufacturing coming out with strong guidance. are these still a buy? >> i think it's something you need to be cautious with yesterday at the conference there were a lot of those companies that are supplying that supply chain. you know, huawei is definitely
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separated from this trade agreement. and it should be i think it's more of a defense it's more of an extension of the chinese military, for example. and so i would be cautious in that area, but taiwan semi, it's still spending money there is a technological war there with intel and samsung and who can get to the smallest nanometer chip, and they are spending money what kwewe would like to see th year is a recovery and spend for the d-ram guys, which would be able to continue that spending trend, but we haven't seen that yet. they have moved far quickly. it wouldn't surprise us to see some correction in that area in fact, ithink it would be healthy to have the extension of that bull rally but to have some pullback that would give a better entry point for new investors to get involved. >> kevin, what is the 5g play in 2020 that investors should be paying attention to? what stocks are going to actually move on the rollout and
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potential upside in 5g infrastructure >> well, i don't want to disappoint anyone with perhaps a boring answer, but what i would say is for consumer internet, the opportunity in 5g is probably less than in some of the hardware sectors when you think through google, facebook, all of the app ecosystem, that likely doesn't really change with respect to 5g lte serves a compelling speed, enables a lot of technologies. maybe you think through five years out and there are new novel opportunities with respect to vr and ar, but i don't think you get that in 2020 you probably don't get i in '21. probably wait and see with respect to 5g as a catalyst for consumer internet. >> i wonder, kevin, if places like gaming or you can see the biggest or greatest adoption on a consumer side at least initially. you have an outperform rating on
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lyft, target price of $81. why do you like it >> i think the same logic applies to both lyft and uber, which is going to be you have a rationalization of the competitive dynamics in the united states, and i think from that stand point you have improved tape rates. when you look at the uber and lyft models, what you have is an incredible amount of leverage on tape rates so 100 basis points improvement of what uber and lyft can take from the overall ecosystem can drive for uber a billion dollars in ebitda. so when you think through what the rationalization could mean, a reduction in the promotional activity we've seen in the last few years, those have been very compelling sentiment about ride sharing and some of sven chur-backed recent ipo ds s is not great >> chris, what's the biggest pothole in the road in 2020 that
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investors should be worried about and kind of what quarter or month do you expect for us to really see whether it's a significant danger >> look, i think some of the real risks are, you know, typically a tweet away, are we going to throw up an embargo on certain companies. we saw that last year with huawei, and i think for tech investors, that is something we've seen and keck see the impact that's something i am really very much concerned about. asml and the pressure they were feeling selling tools in the semiconductor manufacturing space, those are real risks, black swan events we need to pay attention to otherwise, you know, we're in an election year, and i think people want to get re-elected and we're going to see spending out of the government, military modernization on our front those are all real positive trends as an investor i can get e behind >> are there names in aerospace and defense you like >> there's lots of jamming, so
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if you can spoof our military out there, there are new technologies being developed being put in the battlefield that are protecting our soldiers, precision-guided missiles with greater precision. there's a lot of activity out there but not your household names. >> kevin, chris, thank you >> we are hours away from comcast streaming with pea contact. why nbc is betting big on ads. >> i am a peacock! you got to let me fly! 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.
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comcast and nbcuniversal set to unveil the company's streaming service, peacock, at an investor meeting later this afternoon. it's news out of our parent. julia boorstin as more with what to expect. >> that's right. at 4:00 p.m. today, cnbc's parent company, nbcuniversal, will unveil peacock, its new streaming service set to launch in april and this will be a comcast investor presentation in manhattan today. the service is expected to include a free option. investors will be eager to learn how much content will be included in this free tier, the pricing of other tiers, and how the service will be bundled with comcast cable offering to incentivize consumers to keep
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paying for tv. the key differentiator is ads. they bet some are willing to watch some rather than pay for another streaming service like netflix. "the office," rather than spending big on a slew of new originals. nbcuniversal has said it will spend about $2 billion over two years on peacock it's planning to break even by year five. in contrast to apple tv and amazon prime, both e spending around $6 billion last year on content, and a new report predicts netflix will spend $17 billion on content this year with its new service, nbcuniversal is looking to top into growing demand from advertisers. they predict u.s. marketers will increase ads on connected tvs by 20% to nearly $9 billion this year the media giant is looking to avoid subscription fatigue nearly 60% of americans say they
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won't pay more than $20 a month for streaming services according to a report. if you think about how much people are already paying for netflix and hbo, it makes sense not to try to burden them with another paid streaming subscription option. >> we'll see if that strategy works, thanks it is a big bet on ads as part of the streaming an early facebook and google investor joins us. good morning, roger. great to see you >> great to see you, carl. >> strategically, does this make sense to you >> i definitely think the pricing strategy is it peacock is not one of the first ones in so it has to go into a crowded space. having a free option is a complete no-brainer. to me the real question, not just for peacock but for everybody is how differentiated is the content because of the local affiliate
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network of incomes, nbc, it's gb hard to bring the prime content onto peacock, at least not in a way that harms the local affiliates, so i'm not sure how they're going to walk that particular line. but i definitely think that this notion of the free -- you know, the advertising supported version is absolutely hitting the mark >> are you saying the affiliate dynamic makes this more of an innovative's dilemma >> think about it. netflix doesn't have anything to worry about there. they put all their best stuff right out in front disney, of course they've got things related to television that they have to ect, but they have the whole disney film library, marvel, all of they have a lot of unique content. the question is how does peacock compete with that? is "the office" enough to get that done? in an ad-supported model it's definitely enough to get you
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started, but what happens as this market shakes out and people stop being -- you know, the $20 threshold julia described, i don't think that's going to last. my assumption is you're going to see people moving from traditional video distribution to streaming and their budget will move away from cable, which is innovator's dilemma for not just comcast but for others who are really successful in the traditional distribution model >> roger, it's jon i would argue, i would bet that we're on verge of a great rebundling >> yeah. >> but all these services, eventually people are going to say there's all these services, why can't someone put them all together for me and charge me less do you agree, and if so, what type of company, what type of player is going to be best positioned to be that bundler, that biller who kind of controls the experience of the pocketbook >> jon, i don't know how it
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takes for that rebundling to happen my guess is you have to have a bloodbath first. you'll have to have some people who realize they're losers and are willing to surrender their autonomy to someone else i agree long run, but i think the immediate play is you'll see disney, comcast, apple spending big piles of money to secure a leadership position in the hope they will be the bundler and what happens over the next three or four years feels to me like a consumer paradise, where, yeah, there's a lot of confusion, but this is going to be an amazing amount of new content. i don't know about you, but i was pleasantly surprised by how good apple's original television programming was on apple tv plus and, you know, can they sustain that i have no idea obviously, amazon has done better than they might well have done and netflix has done fantastical fantastically. i think from a consumer's point of view you'll spend a period of
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time with people thinking they're the winner and you're going to just have to do your own bundling the effect of that will be i think to change the mix of programming that people consume. and i wonder if sports is not one of the things that suffers from this because it doesn't feel like that's getting -- you know, the sports treatment here has been very high-priced, premium services and, you know, there's a small but very vibrant market for that. and i wonder what happens as we rebundle to the amount of sports that people consume. >> the live component there is truly a game changer when it comes to sports. roger, you mentioned apple, and we have this growing rift now between the company and the doj as they refuse to unlock these two iphones that belong to a shooter who opened fire on a naval base inpensacola it's deja vu in a lot of ways. do you see this ending any
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differently this time? >> one never knows, but i don't think the issues have changed from apple's perspective, which is if they create a backdoor for law enforcement, they're effectively creating a back door for everyone, criminals, the government of china and russia are going to have much easier abilities to penetrate phones. that raises the threat to every user of smartphones. i think the argument the doj has here is very weak. we live in this time of surveillance capitalism. everything you do on your phone touches the network in some way. so to the extent they're trying to track who did the shooter meet, you know, where was the shooter at any point in time, any kind of interaction they had, all that stuff exists in the environment. it's easily accessible to law enforcement with a warrant they don't need the phone. there are a small number of things that are captive in the phone. some photographs, for example, if the shooter did not have
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facebook or other things that automatically download your photographs, there may be some photos in there that are unique. as a generalization, i think apple's position on this is exactly correct and i think doj in some ways is manufacturing, trying to use other issues to keep people's attention away from shall we say the news of the way. >> i do wonder, though, roger, if this is the doj and attorney general barr trying to drum up more of a debate and get ahead of the trend in technology, which is more encryption look no further than facebook. does it warrant debate as we see that become a bigger and bigger part of how people turn to their phone, turn to their apps and communicate? >> morgan, i absolutely agree there should be a debate my view on this debate is that the balance between what doj is asking and what the industry currently is advocating stre iiy supports the industry's
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position at the end of the day, people need to have some sanctuary, some opportunity to live their lives without being scrutinized every moment of every day. and where that comes down is the debate we're having right now fapt moment, if you think about it, it's not the government we have to worry about. it's facebook, google, amazon, microsoft, the folks who are the surveillance capitalists who are invading every aspect of our lives. so that is a debate i've spent three years to try to make us have i'm glad to see doj engaging in it but you know my position. >> i'm not sure they are engaging in a debate somehow the government seems to consistently position themselves against encryption for everybody except the government itself i think there are a number of people out there, security researchers, bruce schneider who i followed far long time, who would argue, especially in the 5g era, encryption is the only answer you have to assume a dirty
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network. you have to assume lots of people try to get acses to their data, so there have to be ways to protect it. i question if the government is going in the right direction, villainizing encryption that they can't break >> jon, you're absolutely right. bruce is the guy, he's my guru on this topic, and this is only going to make it a bigger issue. >> roger, good stuff we'll talk soon. >> my pleasure >> getting some data out of the nrf on holiday retail sales. courtney has that for us >> this is the final holiday sales number, the one the industry uses at the benchmark and the national retail fed case says sales rose 4.1% to $732 billion over the year prior, $29 billion more than what we saw last year. last year we had a bit of a weaker result than most expected
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we had a government shutdown and some kind of noise in the numbers. last year's growth rate was only 2.1% this year it's 4.1%. online sales alone were forecast to grow between 11% and 14% and according to the national retail federation, did grow 14.6% that total number, that 4.1% was right in the higher end of their range. they had forecasted 3.8% to t s 4.2% back to you guys still to come, why the fefshg is souserv is sounding the alarm on a new type of fraud. we will tell you what it is next if you need lumber wood, lonnie's is better than good. we got oak, cherry, walnut, and more. and we also have the best selection of plywood (clattering) in the state... hey!
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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. welcome back to "squawk alley. a new type of fraud is the fast e growing crime hitting some banks. kate rooney explains
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>> it'synthetic identity fraud a criminal makes uppen identity, sometimes called a frankenstein i.d. they randomly pick or can buy a social security number they look for other fake information like a birthday and slowly build credit over multiple years they open accounts with financial institution, take out credit cards or auto loans with no plans to pay those back notre dame federal credit union was one of the many caught off guard by fraudsters. >> these look like bona fide, real people. looking at them one-off, they looked great, but pulling them all together, especially on p specific geographic area this fraud group was working out of, all the red flags and alarm bells were going off >> analysts tell me smaller lenders like notre dame are especially at risk because they don't have the same resources to spend on cybersecurity that the big banks have
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i spoke to one fed official who says it's largely underreported because there's no consumer knocking on the door complaining their credit is going haywire. some in silicon valley are tackling the issue using data. i spoke to the founder of a start-up working with major banks to verify customer identity they estimate this is hitting lenders to tune of $2 billion to $3 billion a year. it's getting worse as credit can be applied for online and they're loosening standards with the economic boom. >> amazing kate rooney, thanks. getting catfished. who would have thought great story and great insight. kate rooney. european markets set to close in a couple minutes mold mode h seema mody has the breakdown of the action >> most global markets are brushing off the signing of the phase one u.s. trade deal with the u.s. and china
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stocks little changed. in germany, gdp growth in twichbt f2019 for the full year dropping to a six-year low, 0.6% versus the 1.5% growth growth seen in 2018. glen kor is in talks to strike a long-term contract with tesla for tesla's new factory in shanghai analysts say the deal would help tesla increase production. it's the world's largest cobalt miner and has struck cobalt contracts with bmw and other key battery makers that stock up fractionally on the day. central bank easing. that story continues in the new year, turkey cutting its interest rate to 11.25%, its fifth consecutive rate cut, while south africa lowered its rate to 6.5%, a slowdown in its
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economy. let's get a news update with sue herera >> thank you, carl hear's what's happening at this hour, everyone the federal government's watch dog agency, the government accountability offe abilitabilie white house violated federal law in withholding security assistance to ukraine. it's at the center of the impeachment of president trump harvey weinstein and ji ji hadid arriving at court as jury selection continues in his sexual assault trial court officials confirming hadid is no longer a potential juror in the case. a new survey data shows millennials are the least likely to get the flu shot. more than half said they didn't get the shot this year and of those, a third said they won't get one at all and mariah carey has been inducted into the songwriters hall of fame she has co-written 18 of her 19 hit songs. joining her, annie lennox, dave
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stewart, the eisley brothers, nick noles, will stevenson and steve miller congratulations to them. that is the news update. back down to you, carl >> a lot of talent in that list, sue. >> really is after the break, chip stocks getting a boost this morning following that trade deal yesterday. we'll break down the biggest values in the sector as the s&p is in a tight range today, 3,305. a golf course is designed to be difficult. to challenge your thinking and test your execution. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take. they learn that embracing those challenges is what sets them apart. i am justin rose, and we are morgan stanley.
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welcome back with the ink drying on the u.s./china trade deal, the focus shifts to huawei >> there have been a number of developments that threaten to ut u.s./china relations back on edge the chinese tech giant remains on the export block and the trump administration is reportedly seeking to tighten restrictions on the company by elimina eliminating a loophole that has allowed u.s. companies to sell to it. mean while, the u.s. continues to pressure governments in europe to ban huawei equipment as they ramp up 5g huawei is fighting b ing back the chinese ambassador said were germany to take a decision to ban huawei, there would,quote, be consequences.
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the next few weeks and months will see decisions in key european markets that could put huawei squarely back in focus. remember huawei is a familiar bargaining chip, one of china's biggest and most important tech companies. it leads the global field in 5g equipment and is the world's second largest iphone maker. the company forecasting a difficult year ahead to top it all off, the ceo and daughter of its founder will be back in court on monday for her extradition trial. this is a case that has been dragged into the politics of the trade war and would pressure relations. back to you. >> deirdra, thank you. chipstock, some of the biggest winners from yesterday's trade deal signing several ceos were in the room during the event let's break down the biggest winners and losers in semis. mitch steves joins us now along
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with j.c. catch. >> thank you >> mitch, we saw semis sell off on the heels of the signing yesterday but rallying today what are the names that could be the biggest winners and losers >> for 2020, we're sticking with western digital and micron we like amd and video for the 5g side and a company called analog device devices. even though there are issues with huawei, these companies have low inventories, no clarity on tariffs that is cleared up so people can increase their inventory levels. >> v.j., how much is the risk around a greater supply chain decoupling where huawei is concerned for u.s. chip stocks, how much is that priced into the names with the most exposure >> thanks, margaret. looking at 2019, a lot of the semi companies like huawei,
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trade concerns, and recession, as you look at 2020, most of the huawei contribution has been taken out, so most of the suppliers today have little to no exposure to huawei. so if huawei gets a reprieve in stekd half, there's an upside. if they don't get it, fine looking at 2020, we think it's more about some tensions cooling down and much better return to growth, much better valuations, earnings up for the semi group overall. we think huawei will be less of a concern because it's out of the numbers of a lot of the semi companies here >> mitch, does the apple versus the government conversation, when it comes to encryption, have implications for chips? meaning one way or the other, if we start to have policies where different governments want access to different types of data and information, does it affect the market for devices and the free flow of commerce?
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>> i don't think that will impact the chip sector i think that's more of a software issue in terms them handing over the keys for the information the government may be looking for in terms of chip stock, the end of the day, you'll still have to increase your sales of smartphones because you'll move the 5g low inventory ace cross the board for all chips in general we think as smartphone ramp up over 2020, on top of data centers coming back, you have a lot of growth drivers for semis with the high beta names like thnvidia and xilinx. not a big deal just another legal overhang. more to do with the software security code associated with apple. >> v.j., given all the different conversations we're having that can affect the chip sector this year and not to mention the run we've seen in the stocks in 2019, what are your top picks? >> our top picks are similar we think all the industrial
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names will be acting a lot better in 2020 after a pretty dismal 2019. the data center server side, amd and nvidia micron, western digital, are names to focus on. we are more neutral on xilinx. the big impact would be huawei, where they don't have any exposure and huawei seems to be moving >> smimitch and v.j., thank you. >> let's get a check on where we stand across the major averages, all higher by a little better than half a percent, the s&p at about a half a percent and can't get enough "squawk alley" not only can you watch us live on the app and on your tv, you can watch us on the podcast.
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here's what's coming up top of the hour today. stocks surging today, the s&p topping another key level. we'll ask how far stocks can climb. and the stocks are flying. and a big blow nor the regional bank our "call of the day." which one got chopped. we'll do it at noon, morgan. >> chopped
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all right. looking forward to it, scott thank you. it's been a decade for delivery or a decade of delivery for uber, door dash, grub hub. some analysts say only 6% of the $350 billion food delivery has been tapped. frank collins joins us at post 9 with what the future holds for food delivery. >> a lot of current challenges but also a lot of opportunities. the market for food delivery could grow to $467 billion in the next five year, a 31% increase those estimates project 13% of restaurant spending will be used for food delivery. today we have an exclusive look at the growth of the four leading companies, door dash, grub hub, uber eats, and door dash captured 33% of the market in 2019, showing tremendous growth, 143% year over year. grub hub, the leader in 2018, only seeing 4% growth. the industry is growing. they're expected to be up to 85%
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of online orders by 2025 but another trend will have an impact on the industry while usage has increased double digits in each of the past five years, the growth of spending on those orders continues to decline. the use of aggregators could be responsible for the trend. there's cost and speed for restaurant of your choice, think expedia but with delivery. millennials make up 70% of online delivery customer so the future of the industry could be impacted by what feature is the most important to millennials and what i call pizza penetrati penetration. 50% of delivery orders, they still take orders over the phone as they always have. >> pizza travels well. a third party referral to third party delivery interesting concept. >> that's part of the problem
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for the industry the promiscuous diners, the grub hub ceo coined that phrase, the numbers, there's so much crossover especially from grub hub to door dash that's alarge reason why the market share changes do dramatically a quarter of postmates use doordash >> we talk so much about economies of scale and just to go back to the other graphic you had, i was surprised to see uber is only in 500 cities. everybody else is thousands of cities >> some of these companies are focused on food, others want to deliver things long term, like grocery, things from ikea. other services are like we'll stick to food, our core business >> some are going horizontal, delivering all kinds of things some of them are going vertical. the business model will probably
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look different in five years >> ghost kitchens is an interesting development that everybody is keeping an eye on because overall people are spending less when it comes to delivery but they spend on restaurants themselves, that's flagged. so where does the min come from for these ghost kitchens do people still go to a restaurant some people want to go, sit, have a glass of wine when you see the ghost kitchens pop up, where will they get revenues from? >> and that last mile delivery >> we have video, pictures from my alma mater, university of pittsburgh, they have a delivery robot on campus right now that you can just deliver -- you can get food from on-campus eateries we had it for a second the pictures aremaout to my schl >> drone, robots, and human beings bringing our food to us. >> twwhat a world we live in. >> when we come back, do real
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men not rent we'll explain and debate that with the style editor of "g.q. >> even during this time we've been using that profitability to put it back into our business and be able to expand the business to men, uk us, kids, sw want pob profitable and reinvest that profitability into our future
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do real men really not rent? i'm talking about clothes here that is the thesis from "the new york times," as clothing subscription companies like rump the runway struggle in the male demographic. joining us at post 9, "g.q." style editor cam wolf. good to have you >> thanks for having me. >> i would argue if men don't rent it's because we're too insecure to do it and because the culture is i'm not going to feel that bad if you're wearing the same shirt i am. like, oh, my gosh, he's got on a white dress shirt, i have one on, not the same like culturally for women if someone is wearing the same dress at a party. >> what do you mean they're too insecure >> it takes a certain amount of confidence to say i'm going to go for this bold piece, i don't want to spend all the money for it, but it's going to tie this outfit together and need it for one night but i'm going to look fabulous i don't think most guys care >> tuxedos excepted
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>> women in our life, my wife, is forcing you to look fabulous, so, yes, you will rent it. otherwise, most guys go, i look okay >> i think absolutely the rental market is aimed as those big, bold for a couple of months but foreing ar >> do you think it has anything to do with the fact that the guys may not want to wear clothes that have been worn by somebody else before >> i think the "new york times" story addresses that head on and says no. i think a lot of what is popular for men, whether it is sneakers or supreme t-shirts and street wear, those are trickier items to rent. you don't want to be wearing -- t-shirts get more messy or more dirty than a coat. >> don't lose that train of thought. breaking news regarding the labor department and the degree to which reporters will have tools to break economic data elon mui is watching that. >> the bureau of labor statistics announced it will no
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longer allow news organize zass to bring computers into the lock ups for major data releases it could impact righters and bloomberg that rely on the near intan containious transmission of that information to their readers and viewers. now, officials say they are particularly worried about an inequitable trading advantage that the lock up could provide to firms that preload the data for high-speed and algorithmic trading. they want to eliminate the competitive advantage that creates for those firms. this will take place on march 1st. it maybe a long time recommendation of the inspector general. he this say there has been no specific incident that caused this tomorrow bring this up now. but news organizations will no longer be allowed to bring computers into the will be up.
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>> i could ask you directly whether or not this puts you at a disadvantage as a reporter >> there is no change for the tv and video lock up. we already both print -- both print and video, we are no longer allowed to have electronics like cell phones or wristwatches we have to use the pen and pad whatthey are saying is that this puts both video and print on even footing. now no one will be able to use computers. >> thank you this is an interesting step backward some might argue in an increasingly digital era getting a sense what have rules you have to have in place to ensure an even playing field i wonder how, if at all, this impacts people who are trading on this information. i'm sure that the -- >> bingo. >> -- that the wire also figure out different ways to argue they are faster and get the information out regardless. >> yeah, exactly
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you are talking about seconds, milliseconds, nanoseconds, that information can make a difference for trading it is going to be interesting to see how it plays out come march. >> maybe they will bang trash cans to get the data out all right. back to renting. you said you wouldn't know where to go. why isn't rent the runway your first stop >> doesn't rent to men they have made a very successful business renting to women but they mentioned in the "new york times" that men just isn't really in their sights. >> do you think it is going to change. >> yeah. >> for them? >> for anyone. >> is there a big business opportunity? half the population is not going targeted >> a medium sized opportunity. i don't know if you are going to get most guys buying into it on the bleeding edge of guys who are into fashion and care about it this is definitely something that would be of interest. >> the summer before my last year of college i was interning in myrtle beach and it was so
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club focussed and who looks like what, i got a taste of what it is like to have the scrutiny that young women have as guys were trading each other's clothes. i think the kul culture could move into this direction if guys get even more insecure they will be driven to raid each other's closets, rent clothes. i think it could happen. >> as they diversify away from the suit, that's possible. >> i don't know that those are items that you would be interested in renting. >> i mean i would shop in your closet, carl. >> vice versa. >> yeah, there we go. >> wow. >> we could start the trend. >> you are both fashionable. i could see night are egoing to kayla here we talked about the labor department move. now we are getting a senate vote on usmca. >> the latest tally on the usmca
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vote, 89 yeas, 9 nays, enough to pass it into law and ratify it into a treaty if the president approves it, which could happen later today. there are notable democratic senators voting again this deal. in theic with a of senator bernie sanders earlier this week at the democratic debate saying the deal is a modest improvement but it doesn't address climate change therefore he won't vote for it following in that wake, chuck schumer, kiersten gillibrand and a handful of others acknowledging it makes sol gains for labor but not for climate change and therefore they cannot vote for it. but an overwhelmingly partisan vote we anticipate the president will sign it in short order >> what a week for trade it has been kayla tausche thank you for bringing us the latest on usmca.
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still ahead, a new ice cream flavor for searstrme we will explain that next. "squawk alley" returns in less than three . . the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.
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this round's on me.eat. hey, can you spot me? come on in. find your place today, with silversneakers. included in most medicare advantage plans. enroll today by calling the number on your screen or visit getsilversneakers.com
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non-gmo, made with naturally sundown vitamins are all sourced colors and flavors and are gluten & dairy free. they're all clean. all the time. even if sometimes we're not. sundown vitamins. all clean. all the time. in case you missed it, ben & jerry's introducing a new flavor of ice cream
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this one in honor of a certain streaming service called netflix. it's called netflix and chilled. we got some. i don't know how >> i don't care. >> john has already finished his. >> it is under -- it's relatively small if it is a gift, it is low dollar i think we are okay ethically. it is pretty good. imsay, netflix and chilled it is tongue in cheek. i don't think this is for streamers. i i think it is for lovers. >> if you don't have a peanut or a glue ten allergy. >> sends a message to that special someone. >> pretzels, brownies. >> packed into peanut butter ice cream. there is a vegan option made with almond milk. >> no popcorn. you think popcorn if there is streaming involved.
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>> it is available around the world and in their kroop shops. >> i like it. >> it beats the bugs we were is it eating on the set. >> don't give doug chambers ideas for new ice cream flavors. but i like this one. >> let's get to the judge. guys, thank so much. i'm scott wapner front and center, stocks surge, the s&p crossing 3,300 for the first tomb ever. the rally now in full gear how far can your money go? it is 12:00 noon, and this is "the halftime report." >> record highs, soaring valuations, is this market getting too rich and is there anything that looks cheap. hitting the brake. tesla downgraded by a long time bull the road ahead for the stock. a slew of chip names getting their price targets raised the traders take their positions. morgan stanley soaring on its earnings beat bu

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