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tv   Fast Money Halftime Report  CNBC  November 9, 2016 12:00pm-1:01pm EST

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that out. >> kate, thank you very much for that. al, we appreciate your time. steve, thank you. mike san tolly, john fort. we still expect to hear from the president this afternoon. not too long from now as arguably the hard work begins in unifying america. let's get back to headquarters. scott whapner and "the half." welcome to "the halftime report." i'm scott wapner. your markets, your vote. what a trump presidency means to your money. we have two wall street legended with us today to help answer that very question. nelson peltz and carl icahn, they will join us in just a bit. let's first take a look at how wall street is shaping up. highs for the day on stocks, 18,500. that's a gain of 185 points for the dow jones industrial average. the s&p 500 is up nearly 1%. nasdaq is higher as well. a picture that looks far different from where it did last night when the stock market was
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selling off as donald trump moved closer to the presidency. it is a far different picture at this hour. we are trading all of it today with pete najarian, josh brown, joe terra nova, and courtney gibson, who is also with us today for the hour. pete, i'll ask you to give us your view on sort of where the market looks today, what you think people should be doing because that's the most central question. >> well, the initial knee jerk, of course, was the sell. we're down 800 points, and everybody was in a frantic -- because of the fact that they didn't have protection in place. what do you do when you don't have protection in place? you sell. the opportunity there was if you did have protection, we talk about volatility for a very long time. if you had some form of protection, scott, you were one of those people that was actually able to buy. i wasn't trading last night, but this morning it's been absolutely unbelievable day. we went from down 800 to up around 50. very, very early in the session. i think it's a good opportunity to take some off the table, and now actually as volatilities come down, i think it's been a great opportunity to buy in. i bought the vxx this morning.
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>> josh, i wonder what you do today. goldman saks has a note that says trump victory raises uncertainty. the victory is a surprise. the path forward, though, is not all negative. he does cut his target to reflect a higher risk premium. >> that's a big question. what do you do now? i think a couple of things. my first take-away is be very careful about who you are listening to. if you were listening to people that told you to do outrageous things ahead of the election, i think what went on between 11:00 p.m. last night and about 10:00 a.m. this morning is an abject lesson is how you can chop your own returns up by trying to play binary event whs when you are na professional and are not equipped to do the kind of things quite frankly high-wire acts and acrobatics. the second thing is to say just because the market has rallied back 800 or 900 points, which is unbelievable, by the way, just because we've seen that in the dow, you should not take that as
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a profound shift in sentiment. a lot of what we're seeing is people who got way carried away with protection. all unwinding at the same time. so you get this massive burst of buying, but a lot of it is mechanics, scott. it's not people who woke up and said i'm bullish again. this is great. i agree with the goldman note. i think this ebulance will subside, and we probably give back some of this -- i'm not going to call it a debt cap balance or whatever you want to call it. again, are we talking about trading in ten minute increments or talking about a time frame of five days and let's see if i'm right or wrong? for most people the answer is absolutely not. >> good advice. steve. >> so from my standpoint, i had been pretty light in exposures coming into it. it's a key opportunity on monday to get back in with some. hedge funds for the most part have taken down their exposure to the market dramatically. their nets were down. their short positions were up. i can't imagine that they're
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going in whole hog here because these are knee jerk reactions. i don't think there's a person out there who is not surprised about what's happening in the market today. these are professionals. they're not rushing in. some of the moves are truly outstanding. i doubled up my nbix biotech position earlier. i sold it today. up 10%. how can you not? >> some of the stocks that have ripped today from the get-go, whether it's the pfizer, merck, or -- things that have just really moved so dramatically. >> stunning. >> right. the steel stocks -- you take u.s. steel, up 15%. i would be tempted to short it. i don't think any of us here can actually call it. i'm excited for it. for full disclosure, i voted for hillary kicking and screaming because i like my family. i didn't want to have to find another place to live. if you look forward going out, if approximate you can have the donald trump of the last couple
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of weeks, he surrounds himself with the right people. his policies are actually very pro-growth. i'm not talking about the wall. forget about that. >> you are talking about taxes, infrastructure, spend. >> in the first -- he won't be the first president that will take the radical platform that he got people to vote for him on to not follow through with those, right? if you take those good policies, very pro-growth, very pro-economy, and i think you can see an explosive market ahead of that. that's where i'll look, but i'm not buying here. i'm still looking for values. the market is back to levels. i was uncomfortable with them before almost. i'll wait for it to come back. >> courtney. >> yes. it's interesting. i wish last night i could have picked up some names personally for my portfolio. unfortunately, couldn't get in on those lows. i do like to buy on dips, as we know. what we're seeing our clients doing at luke capital right now is pretty interesting. a lot of our larger institutional investors had already positioned their portfolios where he were this going to go anyway. it's one of those situations where you have an asset
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allocation. you have the securities that you think are going to do well, and you're holding them. what we did see today, which was very interesting on our desk, was with some of the stocks that have rallied, whether it's infrastructure related names, whether it was some of the steel companies that people think are going to do better, whether it was some of the pharma names, a lot of our clients have price targets. they're large institutional investors. when it hits their target, they're disciplined, and they sell. we're seeing a little bit of that, and some folks picking up on names that they think will do better in the future, whether it's financials and the like. >> joe, you got two and a half months. you got, what, two months. forgot we're already in november. >> two months, and i think the right thing to do is not to pay attention to the markets. steven and i talked about that yesterday. i think you want to talk specifically about asset classes. i think you want to talk about sectors. >> i'm sorry to interrupt you for a second. let's talk about what's on the screen. ten-year note yield goes over 2%. how problematic is that? >> listen, fixed income is going to be a popular conversation right now. one of the strategies that
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really over the last couple of weeks has been out there for the institutional investor is getting away from the bond-like proxies and moving into things like the financials. i believe from a capacity of looking back over the last four to five years, this is the moment for the institutional investor when it relates to financials. you now have all the tail winds behind you. you're not moving a speed boat. you're moving a big battleship. you want to make sure you have certainty, that you have conviction. you have that for the financials right now. looking at sectors -- >> maybe even more so today, right? >> even more so this morning. >> they're going to get inflation because of a big spend, and you have a fed rate hike perhaps. >> and additional potential revenue stream for financial institutions. specifically the goldman sachs, the morgan stanleys, the asset managers as it relates to dodd frank legislation being paired back. >> is this what pops the -- did the trump -- does a trump presidency pop the bond bubble? >> yes, because what he is talking about with his policies
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are you know what he wants to do in terms of spending, you don't know what he wants to do or how he is going to meet it on the other side from the cost containment. right? he hasn't been clear about that. his policies are inflationary as we know them now. i had been not related to trump because i didn't think he was going to win. i thought it would be close, but i had been looking for the bond market to trade through the 2 percent recall. anybody who thought that the fed is not going to go in december is lunacy. >> we're eight minutes into the show and are have yet to mention health care, which is going to be noodles today. >> i did mention that. >> i said health care. >> guys -- >> not looking at -- look at all of us. >> i got to tell you. this is what traders and investors are talking about today. what you have seen this morning on the biotech index is the biggest gap open of all time. like since they have recorded data on these sectors. what you have seen in the xlv, the biggest gap open for that
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index and holding it going back to august 2015. i think the exhalation that's happening in this group right now is really noteworthy because this is where the growth at a reasonable price stock resides. >> you know what, in financials i want to go back to that really quick -- >> i got to -- >> on sectors. people need to actually separate the investment banks that you were talking about versus the asset owners that have a large amount of assets and alternatives. that carried interest piece is going to be an interesting, interesting discussion now that trump actually is in office and the question is is he really going to try to change the tax rules on carried interest? >> yeah. let me just jump to phil lebeau who has a news aeither will up in chicago for us. >> scott, let's call it a part of general motors because general motors is cutting 2,000 hourly workers at two of its plants. one in lordstown, ohio. the other one in grand river in lansing, michigan. this is because they have too much supply, so they're pulling back the third shift of production at both of those plants.
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in the case of lordstown, it's because they make the chevy cruz there, and inventory is building up. they're pulling back production of that ship starting in the first quarter. in grand river it's the cadillac ats, the cts, as well as the chevy couple aerothat are built at that plant, and as a result of bloated inventories with those vehicles, they're cutting the third shift there. bottom line is this, scott. we will see more and more of this from automakers which are running most of their plants on three shifts, and we see auto sales plateau. they're going to cut that third shift because they don't want to build up inventories too much. in the case of general motors, they're going to be cutting the third shifts and laying off 2,000 workers permanently starting in the first quarter of next year. >> thanks. general motors shares ticking by 4.5%. for more in the market, reaction to the election results. let's bring in someone who makes a business in volatile trading. doug is the ceo and co-founder of virtu financial. joins us live from new york city. good to see you. >> good to see you, scott. >> want to give us an idea of what last night was like?
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>> it was a long night. i didn't get a lot of sleep. >> that makes two of us. a lot of other people around here, i should say. >> yes had our whole crew -- our global crew was in. we were making markets all evening. the great story was that the markets didn't break. they performed really well, as has been reported. obviously the s&p futures went limit down. they continue to trade. there was price discovery. there was a lot of trading. we traded about 5 million or 6 million times before the equity markets open, which is generally what we do in a full day. there was a lot of good news in the fact that the market actually performed very well. >> wow. in all different asset classes, if you will. currencies must have been big. just giving what the peso had been doing over the last 24 hours. >> absolutely. the volumes in the peso were two to three times the normal. the overnight volumes in currency on the cme were about five times what we typically see. the nikkei out in japan was active. they closed before the president-elect could get up and make his concession -- or make his speech, if you will, and so as a result, the nikkei was down
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about 5%. it will be an interesting open in japan in about 12 hours. a lot of volatility. a lot of volume. the good news, as i said, is the market as a whole performed very, very well. >> i just want to remind our viewers, we are waiting for the president at the white house to make his first public comments after the trump win last night. doug, i just tell you that just in case we have to jump in and interrupt you for the president. what you said at the top, seems to be the most important that the market structure worked, and it worked to a t. >> yeah, absolutely. obviously there's been a lot of cataloged events where there's been, you know, flash fractures and what not. there was an incredible amount of volume and volatility last night. you really have to applaud the market structure, the cme, the s&p futures went limit down for a long time. they kept trading. that's the important thing. people were able to have price discovery, liquidity gathered around that limit down price, and there was a bit of a bounce. as obviously we've seen today, a full recovery. the market structures worked very well.
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i'm not sitting here defending the entire market structure, but we have to give it credit. there's a lot of risk that was transferred last night. very, very effectively. my firm was involved. we traded an awful lot last night, and that's our job to transfer risk between buyers and sellers. the global interconnected market worked exceptionally well last night. >> doug, it's joe. let's talk about the regulatory policy and the changes that we may feel here. obviously, hillary clinton was in support of a transaction tax on hft's of which you are market maker, not an hft. let's be clear about that. now do you feel comfort that that transaction tax will be removed and that secondarily do you believe the investment banking community reengages on proprietary trading,and how do they go about doing that? human capital algarythmic problems. >> obviously, it's not part of trump's platform, so i'm very optimistic now that, you know --
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it doesn't make a lot of sense, and i don't think it will be on the agenda. i think the point you made about regulation, i think, what the president-elect has said is that he is in favor of sensible regulation. whether that means dodd frank or more importantly the volcker rule gets rolled back and banks can become more proprietary traders, it's difficult to say right now. i think really we'll see a less activist approach from washington in terms of regulating the markets, and i think ultimately that will be a good thing for the marketplace. we have seen a real lack of confidence and conviction. the volumes in the third quarter were extraordinarily low. the intraday volatility was extraordinarily low. having the markets have that confidence and investors get back into the market to me is the most important result of this election. >> doug, we'll make that the last word. it's good to talk to you today. thank you for sticking with us. >> du. let's bring in ceo and legendary investor nelson peltz. >> it's good to talk to you this morning. >> hey, scott. same to you. >> especially given the events
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of the last 24 hours, we just heard, and i'm not sure if you had a chance to hear it or not, a gracious speech by hillary clinton followed by what was certainly a gracious speech last night by the president-elect. the market looked ugly last night. it has certainly shown a different picture today. the market seems to be applauding the way our democracy works even though sometimes it's not pretty. >> scott, thankfully the election is over. the market correction, as you said lasted about a nanosecond, and the pollsters were 0 for 2 should find new jobs. most important, i think, that we all need, as hillary said and donald said, to come together in support of our new president. you know, donald isn't an ideolog ideologue, and i hope and i know he will -- he will bring this country back to the center. scott, that's where we belong.
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that's where this country works. from the center. you know, i'm involved with an organization called no labels. you can visit their website, which reaches across the aisle and bring everybody together and donald has now control of both houses, but i still believe that he will do everything he can to get the democrats to buy in and get this country working again. you know, he has to take the easy wins first, which is upgrading our infrastructure, which has been overdue for 20 years. that both candidates agree on that. they both agree on repatriating the corporate cash. finally, finally let's bring it home. i think donald will get some corporate tax reform, which i think will actually help create more jobs. you know, i'm pleased with where both candidates spoke last night
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and today, and i am very positive about where we're going to go from here on in. it was a rough election, but it's behind us, and i think we're all going to come together. >> what do you make, nelson, of the way that the market reacted so violently last night and the way that it was able to recover today? what is the message in that, if you would, for the people who are watching, the longer-term investors who are trying to decide what to do, they want and are in need of advice from experienced folks like yourself. what do you tell them on a day like this given what the last 24 hours have looked like on wall street? >> you know, scott, we're very long-term, so we pay no attention to these short-term swings, but there were short sellers, there were long buyers all the time in these markets. these short-term swings are overcorrecting in both ways, but here the market is up nicely today. people feeling good about the
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future. i think they feel that everybody is hopefully going to get behind our new president. i think that's going to happen. you know, it was a nasty election, but it's over. now we're all going to act like americans, get back to making this country great again. sorry to borrow that phrase, but i really mean it. i think that's what's going to happen. >> well, knowing mr. trump, he might have trademarked that. >> i did. i did. all of a sudden they woke up and said, you know, dividends aren't really so bad anymore, and these big companies aren't so bad anymore because after labor day if you were paying a dividend, your stock price got knocked to
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hell, but right now, you know, we corrected september pretty quickly. the market has come back. i think -- i think this election scared people for a second, but now we understand we've got a guy there who wants to get rid of this suffocating bureaucracy and all of this regulation that has been troubling washington, it's been troubling small business for decades. i think we're going to get rid of it. i think people are going to feel -- are starting to feel good about what's happened here. that's the way they should feel. this is a way america is supposed to work. >> and maybe that's why i said, you know, one of the reasons why the market has reacted the way that it has, you have -- >> you know, there was a wonderful quote in "the atlantic monthly" wherein it said the media made the mistake of taking
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donald literally but not seriously, and his supporters took the liberty -- took donald seriously but not literally. i think that sort of sums up what happened here. i really do. i think that's what happened. >> it's going to be interesting days ahead. nelson, i'm going to let you run. the president is making some comments. his first, in fact, on the election of donald trump as the 45th president of the united states. nelson, we'll talk to you again soon. here's the president of the united states. >> good afternoon, everybody. yesterday before votes were tallied i shot a video that some of you may have seen in which i said to the american people regardless of which side you were on in the election, regardless of whether your candidate won or lost, the sun would come up in the morning, and that is one bit of
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prognosticating that actually came true. the sun is up. i know everybody had a long night. i did as well. i had a chance to talk to president-elect trump last night about 3:30 in the morning i think it was to congratulate him on winning the election, and i had a chance to invite him to come to the white house tomorrow to talk about making sure that there is a successful transition between our presidencies. now, it is no secret that the president-elect and i have some pretty significant differences, but remember, eight years ago president bush and i had some pretty significant differences, but president bush's team could not have been more professional or more gracious in making sure we had a smooth transition so that we could hit the ground running. one thing you realize quickly in this job is that the presidency and the vice presidenty is bigger than any of us. i have instructed my team to
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follow the example that president bush's team set eight years ago and work as hard as we can to make sure that this is a successful transition for the president-elect. because we are now all rooting for his success and uniting and leading the country. the peaceful transition of power is one of the hallmarks of our democracy. over the next few months we are going to show that to the world. i also had a chance last night to speak with secretary clinton, and i just had a chance to hear her remarks. i could not be prouder of her. she has lived an extraordinary life of public service. she was a great first lady. she was an outstanding senator for the state of new york, and she could not have been a better secretary of state. i am proud of her. a lot of americans look up to her. her candidacy and nomination was
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historic and sends a message to our daughters all across the country that they can achieve at the highest levels of politics, and i am absolutely confident that she and president clinton will continue to do great work for people here in the united states and all around the world. now, everybody is sad when their side loses an election. but the day after we have to remember that we actually are all on one team. this is an intermural scrimmage. we're not democrats first. we're not republicans first. we are americans first. we're patriots first. we all want what's best for this country. that's what i heard in mr. trump's remarks last night. that's what i heard when i spoke to him directly. i was heartened by that.
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that's what the country means. a sense of unity. a sense of inclusion. a respect for our institutions, our way of life, rule of law, and respect for each other. i hope that he maintains that spirit throughout this transition, and i certainly hope that is how his presidency has a chance to begin. i also told my team today to keep their heads up because the remarkable work that they have done day in, day out happened without a lot of fanfare, often without a lot of attention. york work in agencies. work in obscure areas of policy
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that make government run better and make it more responsive and ma make it more efficient and make it more service-friendly so that it's actually helping more people. that remarkable work has left the next president with a stronger, better country than the one that existed eight years ago. so win or lose in this election, that was always our mission. that was our mission from day one. and everyone on my team should be extraordinarily proud of everything that they have done. so should all the americans that i have had a chance to meet all across this country who do the hard work of building on that progress every single day. teachers and schools, doctors and e.r. clinics, small businesses putting their all in to starting something up. making sure they are treating their employees well. all the important work that's
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done by moms and dads and families and congregations in every state. the work of perfecting this union. so this was a long and hard fought campaign. a lot of our fellow americans are exaltant today. a lot of americans are less so. that's the nature of campaigns. that's the nature of democracy. it is hard, and sometimes contentious and noisy. it's not always inspiring. to the young people who got into politics for the first time and may be disappointed by the results, i just want you to know you have to stay encouraged. don't get cynical. don't ever think you can't make
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a difference. as secretary clinton said this morning, fighting for what is right is worth it. sometimes you lose an argument. sometimes you lose an election. you know, the path this country has taken has never been a straight line. we zig and zag and sometimes we move in ways that some people think is forward and others think is moving back. that's okay. i've lost elections before. joe hasn't, but, you know -- so i've been sort of -- >> you beat me badly. >> that's the way politics works sometimes. we try really hard to persuade people that we're right, and
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then people vote, and then if we lose, we learn from our mista s mistakes, we do some reflecting and get back in the arena and try even harder next time. the point, though, is that we all go forward with the presumption of good faith in our fellow citizens. because that presumption of good faith is essential to a vibrant and functioning democracy. that's how this country has moved forward for 200 years. that's how we pushed boundaries and promoted freedom for around the world. that's how we've expanded the rights of our founding to reach all of our citizens. it's how we have come this far. that's why i'm confident that this incredible journey that we are on as americans will go on.
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i'm looking forward to doing everything that i can to make sure that the next president is successful in that. i have said before i think of this job as being a relay run. you take the baton. you run your best race. hopefully by the time you hand it off, you're a little further ahead. you have made a little progress. i can say that we've done that, and i want to make sure that handoff is well executed because ultimately we're all on the same team. thank you very much, everybody. >> that was the president speaking for the very first time publicly on the election of donald trump, saying that he spoke to mr. trump last night, invited him to the white house tomorrow, so we expect that to be quite an event tomorrow at the white house. our john harwood, our chief washington correspondent listening in here. john, pretty extraordinary stuff over the last 24 hours.
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if you take the speech of mr. trump, the speech of hillary clinton, and this one by the president, we bicker pretty good, but we also come together to celebrate our democracy pretty good as well. >> there's no question about it. that was a speech from president obama of precisely the kind that donald trump would want to hear as hillary clinton's was. he said that he is going to do everything he can to make the transition from his presidency to donald trump as successful as the one from george w. bush's to his. he said he is our president now. we all have to look forward to try to make him as successful as we can, but he also, of course, spent a lot of time consoling hillary clinton, consoling his coalition, consoling his team at the white house. young people, urging them not to give up hope. this is a president who knows that his core priorities, especially on things like the affordable care act, his efforts on climate change, his efforts on financial regulation are all in grave peril right now.
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maybe in consoling his supporters, he was also consoling himself a little bit, scott. >> yeah. john, thanks so much, john harwood, wrapping that up for us. we do have another biggest right now. billionaire investor, outspoken donald trump supporter carl icahn joining us on the phone from new york city. carl, it's good to you can that to you today. >> yeah, good to talk to you, scott. >> how does it feel? >> well, you know, i'm certainly happy about it. i really think that it's very, very important thing for our economy in general. a step in the right direction. that's why i supported trump throughout. we must stop the gridlock that you have in washington. the federal reserve cannot do this alone. we are holding this economy up with zero rate interest rates, which is unheard of and i think -- and it's not just to be saying this. you cannot work. you're just building a bubble. i think this is going to be a major change, and, you know, i
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don't think it's really such a personal thing. you know, against hillary. i personally met her a few times and like her. the issue here is it's the going against the establishment and in any -- this happens with companies. you go one way too long and it has to be changed. it changes very -- in this case i think very important. >> carl, what do you make of the way the stock market has traded over the last 12, 15 hours or so? >> well, yeah. i think last night -- last night -- at the risk of being -- i was at the trump thing at 11:30 i saw that market going down like insanity, says and i personally, you know, don't believe that trump is bad for the market necessarily. i left and went home, and i bought a lot of stock in the
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overnight market. i'm glad i did that. i guess that is what makes me happy today too. i just -- usually i don't trade, so, you know, i feel good about that because i really don't think that having donald in the white house -- i never thought this -- is going to be so terrible. he is not going to do such crazy -- you know, everybody is saying he is going to do this, he is going to do that. i think donald is a real smart guy. i've known him for years. i think he is going to do things for this market -- one of the most important things i hope happens and i have said all along, you know, regulatory agencies you do need them. it's like a rule of law. you do need them, but in many cases they run amok. the e.p.a. has just run amok, and it's run amok, and i have said this over and over. it's killing the refinery business. it's putting refineries out of business for no reason.
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it's just an absolute -- >> did you speak to -- did you speak to donald after he was declared the winner last night? >> i think donald has enough to do right now without having to bother to just listen to people congratulating him. i intend to speak to him. i think that there will be many positive changes. i think, again, you know, i point out that to get back to my point, just for getting the e.p.a. there are good regulatory industries, good regulation, but to get companies comfortable again, to get them confident again, says they have to know their business is not at war with them, and i think under the obama administration it was perceived that business was at wash -- that government was at war with business, and you can't
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have that in a free enterprise system, and i'm not here to criticize obama. i'm just saying that you can't have that, and that's why i'm so strongly behind donald. >> what do you think he is going to do? do you think we're going to see tax reform? do you think we're going to see a big infrastructure spending? you see the way that bond yields are trading today in anticipation that we may see that? we may see a good bit of inflation. what should he do first? >> as i have said and conceptually you have a tremendous amount of capital. ironically, hillary clinton said that in a way. there's a tremendous amount of capital to end up in companies that have nowhere to go because they're afraid to invest in the machinery of this country. to go et away -- it doesn't all have to be technology. i think technology is all -- you still got a great country.
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great working people. great factories. you can do a hell of a hot here. this happened after world war ii. everybody thought there's going to be a depression. what are they going to do, and you had one of the greatest rises in the economy because business was there incentiveizing -- government was there incentiveizing business with a marshall plan. something like that. to spend it in buying machinery and factories and the productivity of their workers. you don't have productivity today. i mean, this is basically -- i'm not, you know, going to sit there and take a big -- i look at the big picture. that's what i do in my businesses to figure out what you can do and what kind of moves you can make on a big picture basis and what you have to do is incentivize business. doesn't even have to be a tax
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change, but just incentivize. let the average ceo know government is behind you. government is pushing you. hey, look at the railcar business. you know, i bought in the mid 1980s. you can ride on my railcars because the government incentivized railcar building. a government -- you have to feel government is with you. if government is not with you, then we're like argentina. what or was argentina. 100 years ago we were the same kind of country as argentina, 150 years ago, and instead we incentivize and in argentina they still had an economic establishment. this is where we have to go. we have to get that done. i think trump is an extremely bright guy, and i think he is going to get this done. he has now the open road. somehow he got it. look, i was with him and behind him the whole time, but, you know, it's not just one person or two people doing it. he said it right last night.
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this is a movement. this is a movement going across the world. it is time to break up these establishments that you have. by the way, i'm not against regulation. i think wall street does need regulation. you know, i'm talking against my own friends, but you do need it. i'm not telling you that you can't have rule of law or regulation, but you can't let the regulators start running the country. >> i mean, there are some people wondering now if you are going to get a roll back of dodd frank and some of the other regulations. would you be in favor of that? >> no. i just told you that -- i just told you that i believe that you must have -- you can't have a market that runs amok either. it has to be a middle ground. therefore, wall street ran amok in 2008, okay? , a so you need regulation. i'm not going into every item of dodd frank, but you need some regulation wrr
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regulation. i'm not here saying, oh, let's have the wild west. you can't have an e.p.a. bankrupt companies. it's not the job of a regulator to go ahead and bankrupt you where. >> if you were feeling negative or cautious about the market, from what i can tell is at least the last year and a half do i sense a maybe newfound optimism in your voice about where you think the market is and where it can go as a result of mr. trump being elected president and some of the policies that he may be able to put into place? >> well, look, as you know, i have been very hedged, and now is the first time that i think that there is a chance for our economy to come out of this. again, the reason that i was so negative, you know, and for the last few years is that negative in that look at the earnings, look what we've done. you can't -- i have said this to
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you many times or said it -- not that it's my job to say it to people. you can't have an economy run on zero interest rates, and the government was doing nothing, nothing, to also let business perceive they're behind them. that's just the one thing. it's just -- it's almost a perception that you must feel that government is with you. not against you. unfortunately, the obama administration, you felt the government was fighting you. look, i have a lot of companies. i built up 10, 15 companies. i used to spend a fortune on my railcars, on my refineries, and i and many others were frightened to really put capital into this country, and now i think that whole perception is going to change. >> would you -- i mean, donald himself has said he likes low interest rates. if he wants to keep rates low, would you urge him to do
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differently? he has also suggested that maybe janet yellin is not going to be the federal reserve chair in a trump -- under a trump presidency. >> i don't -- frankly, you know, donald -- in different speeches he has said different things. i frankly haven't heard of him saying give me low interest rates. i think he is generally talking about what -- i want to stimulate this economy, i think. >> he said he likes to borrow money. he said he likes low rates. i mean, he is a low rate kind of guy. >> why is he going to get rid of janet yellin? >> i certainly raised the issue. he has called her out on a couple of occasions. i'm sure you're aware of that. >> yeah, but -- >> do you think she should stay? >> i'm not going to get into that. it's not my job to decide, you know, who should be in the federal reserve. i will say you have to shake up a few of these -- there's some good regulatory agencies, but
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you still have to shake up a few of them, like the e.p.a. i don't always say that over and over because i'm involved. there are regulatory agencies that you must shake up. i'm not going to get into the others. the other ones -- i think the ftc has done a good job. that's the ftc. i am not sure where you would go with this. i would tell you that you can't have strangulation by regulatory agencies. you can't perceive the government is against you. you have to have a rule of law. wall street has taken advantage too much of a lot of the rules. i know a lot of my friends are going to be mad at me for saying this, but, come on. wall street took advantage, and i don't think illegally in most cases, of the rules in 2008. coming out with securities that weren't what they were worth. i'm a plain-spoken guy, and i don't care what i say anymore, so i'm saying it.
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now is an opportunity. that's why i was behind donald. i like him. i think he is a smart guy. look, everybody has their own thing. everybody has flaws. you'll have to bring in a guy like donald. i think donald will build a consensus in congress and we're going to see -- i mean, i'm hoping to see something after world war ii where you really went in and you really got things moving. >> what if he asks you again to be treasury secretary? would you reconsider? >> no, no. i am not -- i'm not leaving -- i have a business. i got 20 companies. i work day and night on them. i'm not leaving, and i don't think i would be the right guy to fit into washington. you know, i'm not an establishment guy. i never worked for anybody in my life. i'm not an establishment kind of guy. there's no way i would do that. >> would you be an sad advisor of any kind in his -- >> look, if donald -- >> in his economic department. >> i would be happy in i in way
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i could do to help them do what i think should be done, which is stimulate business and incentivize, but i think donald has some smart guys. he is going to -- donald is great at picking good guys, and i have seen him do that. you know, like everybody else, he has had his ups and downs. so has everybody else. you can't have a situation where you have a gridlocked establishment in this type of an economy, and that's why i think this is a great moment, i hope, for our economy, and i'm really thrilled that he won. essential like everybody else i have my doubts who was going to come, but -- >> why do you think the polls were so wrong? why do you think people were so wrong, and why do you ultimately think that he won? >> you know, i think -- i said
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this along the way. when you listen to donald and you got off all the craziness. against hillary. against donald. all this nuttiness. if you just look at what donald was saying, i think that even the pollsters -- i think they didn't see the forest through the trees. i think -- you know, people have a way of doing that. when it's going good for new york establishment, you know, everything is good. isn't it wonderful? isn't it wonderful? sense of entitlement. out in the hamptons you just hear sense of entitlement. there is no sense of entitlement in a dem creates. i think that -- i listened to him speak, and i always say to myself, you know, if the middle class guy that is worried about this next paycheck, worried about his job, worried about getting a good job, yeah, you got some employment, but a lot of people are out of kbof emplo
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arena, and you don't really make that much money. you are a skilled worker. you don't have productivity. you listen to him say i'm going to change that for you. you listen to hillary say, hey, we could have more of the same. obama has done a great job. it's strange listening to it. it was really striange. you listen to hillary, and, you know, as a person i met her a few times. i like her. nothing personal. you listen to her going on and talking about on one hand we must change things, and then the point is where have you been for 30 years? on the other hand, we're going to keep obama care. we're going to keep away had we got. we're going to keep going. i mean, you listen, and it doesn't make sense. then that same guy in the middle west who doesn't have a real good job, listens to donald, why wouldn't he vote for donald? i don't think it's -- i don't think he has to go home and agonize over it. why wouldn't he vote for him? now, you had all this digression from it, but when you listen to that thing, to me it was open
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and shut. black and white. why the heck wasn't somebody voting for donald instead of for the establishment? instead of hillary? >> they certainly did. they did in big numbers. donald trump is the president-elect of the united states. carl, before i let you run, i would be remiss if i didn't ask you. you said you ran home and bought more stock. you didn't run home and buy more herbalife, did you? >> the s&p. you know, i have -- obviously you know from the 13 days, have been buying herbalife. i have the voter right 50% of it. we got that right from the ftc. it saved me having to talk to the other reporters that keep asking me about, you know, buying the herbalherbalife. i have the right to go to 50% of it. i'm not saying what i'm doing, but, obviously, i have been buying it, and i think it's undervalued, and so that's -- >> are you still thinking about taking it private? >> i can't really comment on that.
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you know, i have this confidentiality with the board, and i really can't comment on anything that should be the perview of the board. >> can i get you on the record quickly? i don't think you have reacted publicly any more than a statement to michael johnson as ceo saying that he was leaving. can you react to that? >> well, i think -- listen, michael johnson has done a great job. he has brought this company through two, three years of what i consider to be unnecessary -- this company serves a purpose. again, it creates jobs for a lot of people. i think that, you know, did they do some stuff? did some distributors say things and do things that maybe they shouldn't have done? i'm not going to get into that. it does serve a purpose. the model has worked for many, many years in many countries. it certainly makes for employment. look, china has been up and down, but continually to move up, although, you know, like
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anything else, it's been some down side, up side. you got billions of people around the world looking for a job. if you are -- if you are a worker there and you have friends, this is a way to almost change the retail paradigm by going in and selling this product. i think it is a good product. i use some of them. i use the vitamin that they have. it's kept me from getting a cold, actually, i think. what i'm saying is that i think -- i think that it's a great paradigm. i think -- again, i have no personal animosity with bill ackman. in a certain way, i have to put it this way because we've had our differences. i sort of like him. i think he is an interesting guy. i just think he is just dead wrong in this area, and it's
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unfortunate, but sooner or later that's going to come to a head, and -- but i think obviously it's under valued, but -- >> right. >> i just bought the s&p when i but i think -- >> i was tongue and cheek. thank you for calling in. it's good to hear from you today, the day after donald trump was elected president. actually the same day since it happened in the middle of the night. we'll talk to you soon. >> sure. thanks. >> carl icahn. we've been talking about treasury yields. jack jackie deangeles. >> what's driving the move in bonds today? break it down for us. >> remember the curve was
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steepening before we got caught up in election fever. a combination the fed said a couple of different times they are willing to let the economy run hot to make sure we have inflation. now we have what seems to be a more bus-friendly administration. add that the fact he talked about fiscal stimulus and cutting taxes. the only solution to that would be issuing more debt short term. that could be weighing on long-term treasuries, as well. >> brian, you're looking at the charts. the 10-year note. what does the chart say about its next move? >> i think there's 2% level is a huge psychological level we've hit. when you look at the down trend, let's call it the brexit down trend in interest rates, we've broken that to the upside here. we could see it 1.5% we've seen in the 10 year. 2.25% is in the cards. we've had 30 years of declining interest rates. now the borrowing cost will likely increase under this new administration. certainly we could be back in an uptrend on interest rates, 2.25%
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the next stop for me. >> gentlemen, thanks. we'll see you for the live show online tomorrow at 1:00 p.m. eastern "futures now." >> thanks. we are back in two minutes. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.
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three hours to go till the markets close. let's get your final trades.
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i love this morgan stanley note, make my portfolio great again. >> where's that hat? >> there it is. >> i'm going to task you guys with that. what am i going to be -- >> pharma which are names i loved a very long time this. extreme move to the up side is an opportunity. we will see some pullback. i'm looking at oil and exxonmobil. huge buyers in there. this will go higher. >> time for sector rotation as a result of this win? >> i would say this. if you think that some of the things we are bandying about that trump's going to do would really happen, that would not just be great for u.s. stocks, it could ignite entire sections of the world. >> it may be also things that may not happen. >> correct. >> overregulation on health care and biotech industry. >> what? you think trump is for more regulation? >> no. i'm saying things that may not happen. >> right. >> that's why those stocks are
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off to the races today. >> i completely agree there is an exhalation there. >> if you ran for the hills in the last year and a half after a hillary clinton tweet is now the time to come back home. >> if you ran for the hills, then you sold some of the highest-quality stocks in the world. absolutely. you don't wait for days where they're up 11% to get excited about them again. let the next murmuring in the market come along and use that as your opportunity. >> i don't think anybody thought through their portfolio after this big surprise. >> i'm saying maybe it's not that difficult to do. if you think interest rates are going to go up if there's going to be an inflationary -- >> that was my base case.
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if you're going to buy anything, buy the domestic companies. i think they'll do the positive things not do the other stuff. that's my view. i would buy a company that had great quarter, great forecast and the stock's beaten up. >> northrop grubman took off as it relates to the defense names. >> you leave your portfolio where you had it yesterday. any of the sectors are pricing in a signature amount today. at this point, if you're not sitting in cash, you're waiting for a dip because i firmly believe there is likely going to
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be one. >> if you take stocks like usa steel, i'd be more prone to shorting it than buying it. >> how we are paying for it? are we taking on more debt, the debt we shouldn't have? is anybody talking about selling u.s. bonds? >> can we get a chart though of the xme? these stocks sniffed this trump victory out. if you look at martin marietta, some of the xlb names, materials, industrials, these stocks have already been ripping in the case of xme, snapping a five-year down trend relative to the s&p. >> they were moving up. >> they are moving up on the fact capacity is now constrained in all the mining operations around the world.
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i think they got a whiff of the possibility of massive infrastructure. >> the longer term thinkers, they are going back to financings thinking about the ability to raise dividends, less restriction in that capacity. if there is one area where you're measuring what's the monumental change today for a longer term money manager who is actually managing a significant amount of money, it is on the financials. >> because of the move you've seen going into this. the financials are virtually 52-week highs across the board. >> that is a significant move in a short period of time. you need to wait and be patient. >> i agree. it's crazy to go out there and buy stocks that moved before you even know who is going to be his treasury secretary. before you know who is going to be his cabinet. >> treasury secretary is scott
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baio. >> i put my name in the hot. >> chochi comes in. >> chochi is inflationary. >> what a heck of the last 12 hours it's been. the way the market looked last night and the way it looks now. >> we should do this every month. >> can we do it again? do-over? welcome to this post election day edition of "power lunch." we will look at the vote, aftermath and more importantly, what happens now. can donald trump really deliver on all the big league promises he's made? with us for the entire show the legendary jack welch. we have so much to ask jack, including the number one piece of advice he would give president elect trump. punch your vote for "power lunch." we begin right now. welcome to "power

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