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The U.S. government has launched a national security review of TikTok owner Beijing ByteDance's $1 billion acquisition of U.S. social media app Musical.ly, according to two people familiar with the matter.

While the $1 billion acquisition was completed two years ago, U.S. lawmakers have been calling in recent weeks for a national security probe into TikTok, concerned the Chinese company may be censoring politically sensitive content, and raising questions about how it stores personal data.

TikTok has been growing more popular among U.S. teenagers at a time of growing tensions between the United States and China over trade and technology transfers. About 60% of TikTok's 26.5 million monthly active users in the United States are between the ages of 16 and 24, the company said earlier this year.

The Committee on Foreign Investment in the United States (CFIUS), which reviews deals by foreign acquirers for potential national security risks, has started to review the Musical.ly deal, the sources said. TikTok did not seek clearance from CFIUS when it acquired Musical.ly, they added, which gives the U.S. security panel scope to investigate it now.

CFIUS is in talks with TikTok about measures it could take to avoid divesting the Musical.ly assets it acquired, the sources said. Details of those talks, referred to by CFIUS as mitigation, could not be learned. The specific concerns that CFIUS has could also not be learned.

The sources requested anonymity because CFIUS reviews are confidential.

"While we cannot comment on ongoing regulatory processes, TikTok has made clear that we have no higher priority than earning the trust of users and regulators in the U.S. Part of that effort includes working with Congress and we are committed to doing so," a TikTok spokesperson said. ByteDance did not immediately reply to a request for comment.

The U.S. Treasury Department, which chairs CFIUS, did not immediately respond to a request for comment.

Last week, U.S. Senate Minority Leader Chuck Schumer and Senator Tom Cotton asked for a national security probe. They said they were concerned about the video-sharing platform's collection of user data, and whether China censors content seen by U.S. users. They also suggested TikTok could be targeted by foreign influence campaigns.

"With over 110 million downloads in the U.S. alone, TikTok is a potential counterintelligence threat we cannot ignore," Schumer and Cotton wrote to Joseph Macguire, acting director of national intelligence. [see story]

TikTok allows users to create and share short videos with special effects. The company has said U.S. user data is stored in the United States, but the senators noted that ByteDance is governed by Chinese laws.

TikTok also says China does not have jurisdiction over content of the app, which does not operate in China and is not influenced by any foreign government.

Last month, Musical.ly founder Alex Zhu, who heads the TikTok team, started to report directly to ByteDance CEO Zhang Yiming, one of the sources said. He previously reported to Zhang Nan, the head of ByteDance's Douyin, a Chinese short video app. It was not clear whether this move, which separates TikTok organizationally from ByteDance's other holdings, was related to the company's discussions with CFIUS over mitigation.

In October, U.S. senator Marco Rubio asked CFIUS to review ByteDance's acquisition of Musical.ly. He cited questions about why TikTok had "only had a few videos of the Hong Kong protests that have been dominating international headlines for months."

Facebook CEO Mark Zuckerberg, whose product competes with TikTok particularly for younger users, has also criticized the app over censorship concerns.

The United States has been increasingly scrutinizing app developers over the safety of personal data they handle, especially if some of it involves U.S. military or intelligence personnel.

Chinese gaming company Beijing Kunlun Tech Co Ltd said in May it would seek to sell its popular gay dating app Grindr after it was approached by CFIUS with national security concerns.

Last year, CFIUS forced China's Ant Financial to scrap plans to buy MoneyGram International Inc MGI.O over concerns about the safety of data that could be used to identify U.S. citizens.

The panel also compelled Oceanwide Holdings and Genworth Financial Inc GNW.N to work through a U.S. third party data administrator to ensure the Chinese company could not access the insurer's U.S. customers' personal private data.

ByteDance is one of China's fastest growing startups. It owns the country's leading news aggregator, Jinri Toutiao, as well as TikTok, which has attracted celebrities like Ariana Grande and Katy Perry.

ByteDance counts Japanese technology giant SoftBank, venture firm Sequoia Capital and big private-equity firms such as KKR, General Atlantic and Hillhouse Capital Group as backers.

Analysts have called ByteDance a strong threat to other Chinese tech industry firms including social media and gaming giant Tencent Holdings Ltd and search engine leader Baidu Inc. Globally, ByteDance's apps have 1.5 billion monthly active users and 700 million daily active users, the company said in July.

The seven-year-old Chinese start-up posted a better-than-expected revenue for the first half of 2019 at over $7 billion, and was valued at $78 billion late last year, sources have told Reuters.

Arbor Realty: "It's had a move. It's up 40% and I don't like the specialized real estate financial business 'cause I don't really know what they own."

Crowdstrike: "It's new, it's good. I like the company, but I prefer — look, Proofpoint just reported a good quarter last night."

Nokia: "In order to be able to catch up to Huawei it has to just kill its margins. ... I don't have much hope for Nokia or Ericsson over the next 18 months. 5G's here to stay. If you want to play 5G you go to Skyworks, maybe you do Qorvo or most importantly with Marvell Tech..."

Coca-Cola: "Look, Coca-Cola's kind of doing nothing. ... Coke's fine, Starbucks is better."

As November unfolds, stocks should continue to make gains in one of the best months of the year for the market, and it's very likely the Dow will soon join other indexes in setting new highs.

The S&P 500 and Nasdaq both traded in record territory in the past trading week, boosted by some better economic news, a better-than-expected earnings season, and hopes that trade talks will soon lead to a first-phase deal between the U.S. and China. On Friday, China said it reached a consensus with the U.S. in principle after a phone call among high-level negotiators.

Analysts say stocks could follow the seasonal trends higher, barring problems in trade talks. The market is starting the best three months of the year historically, and it has a few catalysts in the week ahead. There are a number of economic reports, the most important of which will be the ISM services PMI on Tuesday.

Third-quarter earnings season continues, with about 80 S&P 500 companies reporting, including media companies Disney and News Corp. and chipmaker Qualcomm.

November is the third-best month for the S&P 500, which has been higher two-thirds of the time since World War II with an average 1.3% gain, according to CFRA. As good as November has been, December is even better, and as the No. 1 month, it is up 76% of the time with an average 1.6% gain. November, however, is the month that has seen the most new highs for the S&P, on a percentage basis, according to CFRA.

"Investors likely remain too skeptical on the impact of Brexit, the U.S.-China trade talks and the impeachment hearings. They're too skeptical that the market can advance," said Sam Stovall, chief investment strategist at CFRA. Many strategists say the efforts by Democrats to impeach Trump is not hurting stock prices currently but it could if there are any developments that would put his re-election in doubt.

"I think November and December are pretty much going to buck the emotional trend right now. The market is telling us it wants to go higher," Stovall said.

Of the more than 350 S&P companies that have reported earnings, 76% beat earnings estimates, according to I/B/E/S data from Refinitiv. Earnings are down about 0.8% for the quarter, based on companies that have reported already and estimates.

"This will be the 31st consecutive quarter in which actuals exceed estimates, but as much as earnings are coming in better for the quarter, they're going down in terms of Q4 and 2020. That's not good," said Stovall. But he said stocks could be lifted by the end of the trade war, the impact of lowered interest rates and a possible tax cut from the White House.

"I think because the market is doing so well, it might be telling us we're underestimating forward growth. Prices lead fundamentals," he said.

The S&P and Nasdaq soared into record territory Friday after the October jobs report showed nonfarm payrolls grew by 128,000, much greater than expected. The number was weaker due to the strike against General Motors but not as weak as feared.

The Fed also added to positive sentiment with a rate cut on Wednesday, but the central bank went out of its way to signal a pause in policy.

"The rally is definitely broadening out. The measured move is 3,200 on the S&P 500 by year-end. In the last two sessions, we retested and spent some time above the 3,025 area. Today's move showed some needed power, after a jobs report that was Goldilocks: It had something for everyone, not too strong to have the Fed as a headwind but strong enough to keep recession fears away," said Scott Redler, partner with T3Live.com. "Today's move lends some power to the bulls."

Redler said Apple's performance this week was a big boost to sentiment. It ended the week up 3.7%, at a new all-time high, after strong earnings. "Traders love when Apple leads the way," he said.

The S&P 500 was higher for a fourth week in a row, its longest winning streak since March. The S&P ended the week at 3,066, up 1.5% for the week, while the Nasdaq closed at a record 8,386, up 1.7% for the week. The Dow gained 1.4% for the week, lifted by a 301-point bounce Friday. It finished the week at 27,347, 0.2% below its all-time high of 27,398.

Historically, industrials have had the best gains on average in November, going back to 1995. Industrial stocks have been up an average 2.9%, followed by materials, up 2.7%, consumer discretionary, up 2.6% and then technology, up 2.4%, according to CFRA data.

"The cliche thing is everyone is focused on the breakout. I think the key technical event that's been developing for weeks, it's really been this rotation toward cyclicals," said Robert Sluymer, technical strategist at Fundstrat.

He said he expects the Dow to break to new highs soon. "We think the market is strong through year end and well into 2020. We continue to think the market cycle low developed in late 2018. This is the next leg up in the bull market," he said.

The bond market did not respond in the same way as stocks to the jobs number. Yields were slightly higher Friday but remained near or below the level they were at just prior to the Fed rate cut on Wednesday.

"We're actually down on the week. That tells you what the bond market thinks about the economic landscape, particularly with the jobs report. I know there's a lot of enthusiasm about it," said Peter Boockvar, chief investment officer with Bleakley Advisory Group. "The bond market continues to send a very different message than the optimism in the equities market. The pace of job growth is still slowing, and this number is going to get revised multiple times. Everything is pointing to a slowdown in growth."

The 10-year Treasury yield was at 1.73% Friday afternoon, and it had been at 1.80% at the end of the prior week.

"I think it's a bit of moderation from the sell-off we saw last week. The Fed was pretty much in line with what people were expecting," said Ben Jeffery, a rate strategist at BMO. "I think probably stocks are viewing it as the Fed is comfortable leaving rates on hold, so many recessionary fears are a bit overblown. You could make the argument the bond market is less convinced about that."

However, Stovall said it's a positive for stocks when the yield on the 10-year is lower than the yield on the S&P 500, now about 2%.

"I would say another positive for stocks is historically when the dividend yield on the S&P 500 has exceeded the yield on the 10-year note. The average 12-month return for the S&P has exceeded 22%," he said.

Monday

Earnings: Occidental Petroleum, Uber, Prudential Financial, Shake Shack, Tenet Healthcare, Marriott, Consolidated Edison, Bausch Health, Groupon, Ryanair, Hertz Global, Tenet Healthcare, Under Armour

10:00 a.m. Factory orders

2:00 p.m. Senior loan officer survey

Tuesday

Earnings: Allergan, Becton Dickinson, Regeneron, Mylan, Arconic, Tapestry, Ratler Midstream, Hersha Hospitality, Caesars, MBIA, WW International, Whiting Petroleum, Assurant, Devon Energy, Virtu Financial, Diamondback Energy, Microchip Tech, Match Group

8:00 a.m. Richmond Fed President Thomas Barkin

8:30 a.m. International trade

9:45 a.m. Services PMI

10:00 a.m. ISM nonmanufacturing

10:00 a.m. JOLTS

12:40 p.m. Dallas Fed President Rob Kaplan

6:00 p.m. Minneapolis Fed President Neal Kashkari

Wednesday

Earnings: Qualcomm, CVS Health, Baidu, Wendy's, Humana, Capri Holdings, Expedia, Adidas, Softbank, TripAdvisor, Square, Hostess Brands, Valvoline, Elanco Animal Health, Liberty Global, AXA Equitable, IAC/Interactive, Papa John's

8:00 a.m. Chicago Fed President Charles Evans

8:30 a.m. Productivity and costs

9:30 a.m. New York Fed President John Williams

3:15 p.m. Philadelphia Fed President Patrick Harker

Thursday

Earnings: Disney, News Corp., Activision Blizzard, Zillow, Monster Beverage, Booking Holdings, Toyota, Air Products, AmerisourceBergen, Cardinal Health, Johnson Controls, Keurig Dr. Pepper, Teva Pharma, Norwegian Cruise Line, Discovery, NRG Energy, Ralph Lauren, Zoetis, Tradeweb Markets, Sturm Ruger, Cloudfare, Dropbox

8:30 a.m. Initial claims

1:05 p.m. Dallas Fed President Kaplan

3:00 p.m. Consumer credit

7:10 p.m. Atlanta Fed President Raphael Bostic

Friday

Earnings: Allianz, Ameren, Duke Energy, Honda

10:00 a.m. Consumer sentiment

10:00 a.m. Wholesale trade

11:45 a.m. San Francisco Fed President Mary Daly

8:30 p.m. Fed Governor Lael Brainard

Academy Award-winning producer Brian Grazer told CNBC on Thursday that he wouldn't just take his upcoming projects to whichever streaming service pays the best price.

Instead, the producer behind "A Beautiful Mind" and "Apollo 13" said the "personalities" of the services play the most important role in making sure that projects reach their full potential.

"Many times, every one of these streaming services, they all have different personalities," Grazer said in an interview on "Closing Bell." "So you want to match your show or movie or documentary to the platform that is going to best service that movie, television show or documentary."

Grazer's comments come just ahead of the debut of Apple's streaming service, the latest entrant in the streaming wars. AT&T's WarnerMedia announced details of HBO Max on Tuesday, Disney's service launches in about two weeks and Comcast's NBCUniversal will bring its own offering to consumers next year.

All of these companies are seeking to compete with Netflix, Amazon and Hulu, creating an entertainment landscape that gives content creators all sorts of choices while forcing streaming services to spend billions on new shows and movies.

Grazer's remarks suggest that big Hollywood producers are taking a multilayered approach when considering where they want to go.

Grazer said there are some films he knows fit with a particular company. For example, he said his upcoming project on Aretha Franklin, for the third season of "Genius," works best with Disney.

"That's a perfect Disney program," Grazer said. "And I don't mean Disney in the G rated ... It celebrates genius, and that's within the ethos of what they do."

As for Netflix, Grazer said he has two movies that "really should be there." They are the film adaptation of J.D. Vance's best-selling memoir, "Hillbilly Elegy," and Lin-Manuel Miranda's directorial debut.

"That's perfect for that service," he said. "Absolutely perfect."

Grazer said that producers willing to do the research will find access to plenty of data to show them which services are best for which shows.

"Their algorithms pretty much do know what their audiences are," he said. "Any good producer is going to take advantage of that data."

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

WATCH: Brian Grazer on the import of 'face-to-face' meetings

U.S. stock futures were higher Friday morning and gained more ground after the government's October employment report showed better-than-expected job growth. Dow stocks Exxon Mobil and Chevron reported earnings Friday morning. Exxon beat estimates with profit and revenue. Chevron missed on both. Thursday's losses on Wall Street ended an otherwise positive October, which has historically been the most volatile month of the year for stocks. The S&P 500, up 2%, and the Nasdaq, up nearly 3.7%, saw their best monthly gains since June. The Dow Jones Industrial Average was laggard last month, edging higher by just a half percent.

The Labor Department announced Friday morning that the U.S. economy created 128,000 nonfarm payrolls in October, despite a drag from the General Motors strike. The nation's unemployment rate edged up a bit to 3.6%, but remained near 50-year lows. However, October ISM data on the contracting manufacturing sector, out at 10 a.m. ET, could provide a much more useful picture of the economy. Investors are looking to these reports for more clues on the economy as they try to figure out if this week's interest rate cut by the Federal Reserve, the third such move this year, will be the last for a while.

Leon Cooperman sent a critical letter to Elizabeth Warren, one of the top Democratic presidential candidates, marking the latest salvo in the war of words between the billionaire investor and the liberal senator who wants to tax the wealthy to pay for a broad social agenda. "You proceeded to admonish me (as if a parent chiding an ungrateful child) to 'pitch in a bit more so everyone else has a chance at the American dream,'" Cooperman wrote. Warren responded to Cooperman's letter in a tweet, saying: "Leon is wrong," adding he "can and should pitch in more." Separately, on Friday morning, Warren pledged not to raise middle class taxes to fund her "Medicare for All" plan.

China turned on its 5G networks ahead of schedule on Friday, pushing ahead with the next-generation wireless technology at the same time it's engaged in a protracted trade war with Washington. The U.S.-China trade dispute has also turned into a battle over tech supremacy, with the Trump administration pressuring Huawei, citing national security concerns about Beijing using the Chinese telecom firm's equipment to spy. Huawei has repeatedly said that would never happen.

Apple TV+ launches Friday, with just a handful of original programs and a lack of old shows and franchise films. The latest entrant to the video streaming wars costs $4.99 per month for usage by up to six family members. Apple TV+ is free for a year for buyers of new Apple devices such as an iPhone or an iPad. Among the competition — aside from established services from Netflix, Amazon and Hulu — Disney Plus launches Nov. 12 and AT&T's HBO Max is out in May 2020.

— The Associated Press contributed to this report.

From smart thermostats that can be managed using our cellphones to energy efficient lightbulbs and rooftop solar panels, today's buildings use a wide range of technology to reduce their environmental impact.

In London, a system has been developed which could transform the way buildings look and behave.

Architectural and urban design practice ecoLogicStudio has produced what it describes as a "photosynthetic building cladding system."

Called PhotoSynthetica, it uses solar energy to take carbon dioxide (CO2) and other pollutants out of the atmosphere. The panels of the system harbor a solution containing algae microbes.

In the latest episode of CNBC's "Sustainable Energy" Marco Poletto, ecoLogicStudio's director, described how one of the bio-plastic prototypes works.

"The sun shines through the curtain and activates … photosynthesis," he said. "The design of this cavity is such that we can inoculate, or introduce, dirty air from the bottom," he added.

"The air naturally rises through and comes into contact with the molecules of the algae, which cleans it. And then clean air and oxygen is released from the top back into the atmosphere."

Poletto went on to explain why micro algae were useful for the system. "Their ability to capture CO2 is 10 times higher than large trees and that's because their entire body is photosynthetic," he said.

"So when we integrated it in our technology, even a thin layer has the same capacity to absorb CO2 as a micro forest. This offers renewed potential for integrating carbon capturing technology into dense and polluted urban environments."

Ideas like PhotoSynthetica could become important in the years ahead, as governments and businesses look to transform the built environment and make it more sustainable.

Speaking to CNBC, Derek Clements-Croome, an emeritus professor at the University of Reading, emphasized the importance of adapting and adding to existing buildings to make them more sustainable.

"I mean, this is very important that we do this because over 80% of the buildings that will be present in 2050 are already here now with us," he said.

"Now, when you're doing restoration, retrofit, the inside of the building is easier to cope with," he went on to explain. "It's usually the shell of the building which is the most challenging part."