tv Closing Bell CNBC November 10, 2016 3:00pm-5:01pm EST
>> the navy. >> thank you very much. >> of course, we are on dow 19 watch as we did cross into record territory. keep a watch on s&p. thanks for watching power lunch. "closing bell" starts right now. >> the dow is hitting record levels. we are on track to close at an all-time high has donald trump meets with president obama and congressional leadership. we look at why the nasdaq is declining. it's not participating even as the dow soars.
>> the key question is who will be in donald trump's cabinet? mr. trump's advisers are considering jamie dimon for that job. >> jamie, if you would like to call and confirm or deny we would love to hear from you. >> plus mr. trump's energy plan. he said he would cut regulations and revise the coal country. we have the ceo of conoco phillips with us to tell us how he is preparing for the new administration. i will be interested to hear from ryan lance. >> live from the dealbook conference interviewing. we look forward to those interviews. goldman on a tremendous run as there is lots of talk about repealing dodd-frank and other
factors. comments earlier have chipotle up. >> chipotle is benefitting there. let's start with the dow's run into record territory. bob pisani has been tracking the action. >> the dow is outperforming everything up 1.4%. very unusual because the dow has a lot of stocks benefitting from lower regulations and the infrastructure play. remember the dow's price weighted. here is the biggest -- highest priced stock in the dow is goldman sachs over $200. that has a big weighting in the dow. how about benefits from higher interest rates? travelers over $100 up 3%. there is another reason the dow is outperforming. how about the infrastructure play? home depot another high priced stock. $129. that's up 3%. other infrastructure plays. where is 3 m. another dow component. another really high priced stock in the dow.
$173. that stock up about 2%. the bottom line, you get a lot of stocks, infrastructure and you got new highs and an outperformance. >> it's a quite different story at the nasdaq right now. some big decliners weighing on the performance of that index. >> it is a tale of two markets within the nasdaq itself. it is large cap tech selling off. that is why nasdaq 100 is down. a lot of traders are saying it is not just the issue of politics. you had jeff besos coming out against donald trump and potential policy issue whz it comes to visas which are important to the big tech companies. they say some high beta names are selling off along with the rate sensitive stocks. people are looking at someplace else to put money. one place they are putting money is small caps. those names are on fire. the russell 2000 near a 52-week
high. its led a second day by the strength in bio techs feeling there will be less regulation when it comes to a lot of bio farma names. consumer names like fossil surging on earnings beat. oil related banks rising along with energy names and then taser rising on earnings. so the small and mid caps are what the strength is but they can't really counter the weight of the big cap tech selling off. >> thank you. that xpi bio tech index up 20% this move, extraordinary moves here. >> best week every for that. now to washington where president-elect donald trump is meet wg president obama. john harwood has the latest. >> in a time of stark divisions and high emoigz in the country it's a comfort especially to markets that we have a smooth peaceful and dignified transition of power. got off to a solid start today
when president-elect trump went to the white house to meet president obama. >> we discussed a lot of different situations, some wonderful and some difficulties. i very much look forward to dealing with the president in the future including council. he explained some of the difficulties and high flying assets and great things that have been achieved. >> of course, you had the same tone struck by president obama whose legacy donald trump is going to target. >> we talked about some of the organizational issues in setting up the white house. we talked about foreign policy. we talked about domestic policy and as i said last night my number one priority in the coming two months is to try to facilitate a transition that
inshurz our president-elect is successful. >> after that meeting donald trump, the president-elect went to capitol hill to meet with the two republican leaders who will be in charge of determining when and how much of his program gets enacted by congress. house speaker paul ryan, senate majority leader mitch mcconnell both of whom had strained relations with donald trump during the campaign met with him. they are expecting to come together on an agenda. exactly what they will prioritize and how much of donald trump's agenda will be enacted is coming up. >> john harwood in washington. let's get to our "closing bell" exchange with the dow up 270 points in record territory. bill lee is with us today. we have michael jones from river front investment group. rick santelli checks in from chicago. this is shaping up to be the
dow's best week in about five years. is this the kind of rallying you just go with or are you starting to think about fading this thing. >> i think on a short-term basis you have to be careful as the market tends to trade at these levels. tomorrow is a bank holiday. equity markets are open but bond markets are closed. a lot of traders are really positioning themselves trying to get everything in and done today because tomorrow there will be some significant light volume that we will see in our markets. that might be an opportunity later on today into tomorrow an opportunity to take short-term profits off the table. next week we have a full week of economic calendar and a week after that is a holiday week. there are a couple of pauses in the road coming up that i think investors might use as an opportunity to put money back in their pockets. we have the interest rate conversation that we will continue to have over the next three to four weeks that will play a part in it. >> tomorrow is veteran's day.
that is why it is a bank holiday. >> the bond market probably needs a breather. it has done about a year's worth of work in a week. >> before we get going here i know 211 is a big number. 2.41 is a big number. marine corps happy 241st birthday. we have veterans day tomorrow. my dad was a marine. in terms of the market this is a very important session. jonathan is exactly right. i think you seeing not any type of reversal, not people that were selling the market covering up. we are seeing an aggressive trade in front of a cash market close tomorrow. futures market close tomorrow for the treasuries. i think that is very important. we are getting ever closer to change. when you look at the stock market my hats off to it. i think the stock market has so many things right.
to think that the tech stocks and big entities are under pressure maybe that has a lot to do with politics. it is also rewarding many companies that are more domestic in nature we see that. i don't know that this is a move as much as it is a repricing. while i understand stocks have the story right if you are a consumption economy you can withstand. it has a whiff of higher inflation. i think that is part of what is going on in treasuries, as well. >> bill lee, it would seem that this stock market rally is anticipating a bump in the economy from fiscal policy which we sort of have been missing as we have been relying so much on monetary policy. what are your anticipation tlz for the economy going forward if we do get the kind of tax relief that mr. trump is talking about and some of the infrastructure spending that has been discussed, as well? >> i think the clearest shift in
the market focuses away from negative rates and hopeful stimulus that comes from fiscal policy. that shift alone in the conversation away from central banks is the most welcome breath of fresh air we have had in years. we don't know how much fiscal policy. the fiscal hawks is still there. the way congress makes the decision. may not get the size that we need to move the needle on gdp and may not move the needle for the fed. what about the negative trade implications on the new regime. so --
>> we are listening -- >> that is the president-elect donald trump with his wife on capitol hill. probably a comment about the meeting there. not taking a lot of questions. >> i wanted to ask you about the sell off we are seeing on amazon. i think all tech space is being pressured. probably more importantly think about the amount of retailing goods and services that are coming from china.
if you are going to have more restrictions if through is trade restrictions and higher input cost to their product set. >> look what is happening with the retail sector. you have kohl's, dillards, j.c. penney's absolutely surging. why would this be piled on to amazon? >> because they uniquely live on price if you have a larger value proposition, a larger capacity to bring clients into your stores, into your -- you have amazon with one thing going for them and that is price. if price is no longer going to be as attractive then they might
lose market share. a turbulent week to be holding these how do you think they went and what foreign participation? >> they didn't go very well. in the treasury market you want to be a seller. as for the threat of what everybody wants to say and that is chinese and big liquidation they have been doing this i don't notice anything out of the ordinary on these options that didn't go well other than market direction. >> we are going to go at this point. thank you all for your thoughts on today's market action with the dow sitting in record territory. >> already been a record-setting day at 18,839. if we stay close to here it will
be a record close, as well. s&p is up eight points. nasdaq is lagging today. >> up next conoco phillips ceo will give us his reaction to donald trump's victory and how a rise in the coal industry could effect profits. and jamie dimon is on trump's list of possible treasury secretaries. we discuss the likelihood of secretary dimen in the trump administration. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests.
the rally for the dow continues today. 43 minutes left. industrial average up 239 points putting it in record territory now. the s&p is up -- look at the disparity here. the dow is up 1.3%. the s&p up a third of a percent and the nasdaq is lower as selling in some major technology issues continues today. >> and oil prices continue to slide. the stock market has been at those record highs in the wake of donald trump's victory. oil is a different story. it is said that a trump
presidency will result in -- there are still many unknowns once he takes office in january. >> joining us in a "closing bell" access interview, ryan lance conoco phillips ceo. did you change what you were going to say after tuesday night? >> we didn't. it was same story for us. we were trying to lay out our value proposition to the street and how we accelerate that. >> the feeling is that mr. trump is more pro energy. maybe we get a reconsideration of keystone. coal stocks have been rallying here and make it easier to drill in this country. so do you not change what you're going to say here? >> no. i think there is some comfort in the fact that the way he talked on the campaign trail recognized the energy renaissance going on here in the u.s. and i think we can work together. we are about the economy. we are about good jobs and revolution going on in the u.s.
energy business. it does take some infrastructure to move our product around. i think it is encouraging to hear him say things like he recognizes that we have to do something about that. so certainly that piece of it is encouraging i think to the energy industry sfrmpt which i wonder about two consequences of a positive outcome to the energy industry of could it push prices lower and if rates are moving higher and you are dealing with debt loads, higher interest rates does that take away from the benefit you would otherwise receive? >> certainly, we are prepared for a volatile world trying to set up as a company to lower cost. some non-corps assets that we are not investing in. we recognize to get money back
to the shareholder and announced repurchase program. we have to be prepared for the volatility. what wins in that is low cost, high flexibility and low cost of supply. >> you have to have an opinion on where you think oil prices are going. do you see them staying at these current levels? do you see them going much lower? >> i think the market is balancing. we have inventory overhang in the market today. we start working that off through the course of the remainder of this year. we see a recovery coming as we work that inventory off as we go into 2017. i think there is light at the end of the tunnel. it's a well supplied world and we are all watching demand. >> to kelly's question earlier it's not just about how much we are drilling but you have to think about what saudi arabia and the rest of opec is doing with all of this. >> we are all waiting for november 30. we are waiting for the end of november. feels like they have gotten serious about what they need to do. they need to take crude oil off
to accelerate and stabilize the price and volatility. we will see we are not counting on it as a company. i don't think that is something we can count on. you have to take actions by yourself and do things in your company to be able to survive and survive with volatility. >> what about one outcome here which would push corporate tax rates significantly lower. it sounds like an early priority of lawmakers we spoken to of the trump transition team. how much impact would that have on you guys? under what scenario could you say we are not only hanging in here but adding jobs? >> we support as a general part of the business community we support what speaker ryan, what president-elect trump has talked about, eliminating deductions and making it more pro-growth and capital oriented tax code. we think there is a lot of merit to that. as long as you recognize that a
lot of companies are trying to compete on a global scale and compete internationally. whatever we can do to make that a level playing field is everything we support doing. some of the words they have we are encouraged to hear that. >> we mentioned earlier mr. trump talked about reviving coal country, coal stocks are up. there are those who feel that coal has fallen on hard times not because of policy but because of the rise of natural gas which is a big part of your business right now. what do you think the outlook is for that for natural gas and the impact on the coal business? >> it has changed that competitive landscape. the innovation and technology that they are making we have a century of gas resource in our country t. will be great for the consumer. it is going to lower heating bills and electricity bills and does force competitive landscape with the coal companies. you see them respond, as well. they are lowering their cost. they are figuring out how to
burn their product cleaner and cheaper. the u.s. today is at the lowest level of co 2 emissions since 1972 as a country. it is really dramatic the progress we have made not only lowering the cost of energy for the consumer but cleaning up the environment. >> thank you for joining us this afternoon. >> thank you so much. ryan lance, ceo of conoco phillips. we are heading to the close with 37 minutes left in the trading session. we are in record territory for the industrial average. coming up, td ameritrade ceo will tell us whether he is seeing a spike in trading in the wake of the election. also ahead jamie dimon apparently is on donald trump's list of candidates for treasury secretary of state. kate kelly has the latest coming up.
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new york city and washington to houston and los angeles thousands marched on streets and highways and town squares chanting not my president and no racist usa. the protests were mostly peaceful although arrests were made in some cases. there was a shooting near seattle. police are saying it did not appear to be connected to the anti-trump demonstration in that area. >> trump saying his top three priorities will be border security, economy and health care reform saying we are looking at jobs. jamie dimon said to be on one of trump's lists. kate kelly rejoins us. she broke the news earlier. >> so jamie dimon according to two people familiar with the matter is someone that the trump camp has seriously considered. even though dimen has said recently that he would not be
interested in such a post. in an interview in september he hinted at higher aspirations. let's listen to what he said then. >> i have said i would love to be president but i'm not going to be and i'm not going to run. we torture those people, too. look at the politics. my slogan, make america fun again. >> make america fun again, make it great again not so far away. in any case i reached out to the trump transition team. no response as of yet. jp morgan said they couldn't elaborate beyond the past comments and worth noting in that recent september interview we did not know who the president-elect would be as we sat here this week. interesting because the word had been that steven manuchin would be front runner for treasury secretary. at least one feeler has been put out to jamie dimon as they
consider the possibilities. >> don't you think when you get that call that says will you serve as treasury secretary, how do you say no to that in. >> i think in his case he has never shown a lack of energy or interest in the job at jp morgan. i think he is a case of someone who really enjoys the job. with the ceo type it may be hard to think about being a cabinet appointee because you don't have the ceo executive authority. you is to get engaged in a more consultive process than someone like dimon is used to. >> and he was very, very reluctant to take the job when george w. bush called him. >> you have to move to washington. >> among other things. >> absolutely. there are certainly advantages and an opportunity to serve.
at the same time it is a ton of public scrutiny. the confirmation process seems to get harder by the year. there are a number of disadvantages, too. we will see how this thing develops, whether or not there is more persistence in trying to recruit or whether there is a much longer list and we will hear additional names. i will keep you posted if i hear more. >> certainly jamie dimon has the chops to be treasury secretary. >> it will be interesting reaching across parties. >> speaking of goldman ceos the current one is expected to speak about the future of banking at the conference being held right now. his interview, you don't want to miss that. time now for a cnbc news update. >> here is what is happening. britain's chancellor says brissen is looking forward to
discussing future trade opportunities with the trump administration. as it begins the process of negotiating its exit from the european union. >> certainly we look forward to working with the new u.s. administration. we have very strong and close ties with the united states and as we begin the process of negotiating our exit from the european union we will want to talk to the americans about future opportunities. >> the white house says enrollments in obama care spiked with more than 100,000 people signing up for plans under open enrollment. trump takes office on january 20. and hazard on the 16th green in south africa, a pack of 20 mongoose held up play during the first round. they didn't touch the golf ball sitting on the green and ran right past them. i don't know if i would know
what a mongoose was but it is a little frightening. that is your news update at this hour. >> i have had to contend with canadian geese. >> an alligator sometimes in the southern u.s. mongoose is a new one. >> when you confront an alligator on a golf course you take a par and move on. >> i wouldn't confront it at all. i would let it go. >> keep going. thank you. >> 28 minutes left in the trading session. dow holding on to gains putting us in record territory. it's the s&p that's not gaining quite as much and the nasdaq continues lower. we have a leading trader going to tell us what he is watching. think health care stocks. >> td ameritrade ceo telling us if he expects the new rule slated to take effect in april to survive the trump chopping
let's take a look at 30 components that make up the industrial average. i beg your pardon. we are not going to do that. i would say golden sacks leads the way to the upside kelly evans while big technology stocks are in the red. >> how about those health care stock snz i'm here with mark newton, the owner and technical analyst at newton advisers. >> i think health care is sick no more. you look at sectors that could show a mean version health care had been worst performing this whole year until the election. you starting to see signs of bottoming out. you look at charts versus s&p you see signs of bottoming out. there is not a priority in terms of enforcing this whole drug pricing scandal and everything that is going on. there might not be the same priority under a trump administration. a couple of charts to look at. this is xlv. you have been down about 11% in
health care since august of this past year. >> this goes back to 2008. this is the peak back here. >> this is last year. severe under performance. you have gotten to a level that is pretty compelling to think the health care can bottom out. important to see the long-term basis this sector is really in very good shape. >> some of those people, if we look right here that is the teeny little spike we had the last week. you way more focussed on the fact that we have been down so much than on the start to move higher? >> it looks like a really good risk reward. you have seen a little bounce. it is up about 5%. you are probably going to get back to new highs based on a trump administration not being as hard necessarily on drug pricing. pharma, bio tech not necessarily hospitals which might be under pressure. >> thank you so much. >> mark newton from newton
advisers. >> nice circle on that. 23 minutes benefit on the strading session. we are still very comfortably in record territory with a gain of 230 points. we go live to the deal book conference where we are talking to goldman sachs chief about the election, move by financial stocks and much more. in this rally tech has not been enjoying the after glow of the trump election trade groups like apple, facebook, google all reportedly meeting tomorrow to map out a plan for dealing with the new president who has land based at silicon valley companies. we get a gauge on the tech game plan.
pepsi are fizzling out. 16% gain after earnings beat saying it is focussing on promoting itself as maker of sparkling water products to capitalize on the health conscience trend. it is not read as a positive thing. declines of about 3% to 4% today. >> counter top carbonation machine maker. td emertrade stock is higher today up since the election perhaps indication that a donald trump presidency would be good for the markets. joining us so far tim hock president and ceo of ameritrade. >> monday and tuesday were considered hillary rallies and now we have the donald trump rally. >> in our business obviously we saw that happen in real time. remarkably we had a record futures because all the action was happening overnight. >> take us there for a second.
at about 9:00 on tuesday night you can tell that people had seen the results from florida because the markets were immediately moving lower. what was happening during those hours? >> we saw a volume spike and the futures move so dramatically. you can imagine what the background chatter among my team was saying we are sending people in making sure we had good coverage and systems and availability was great. record volume on the futures front. it really drove new investors and traders on to the platform sfrm. >> new accounts? >> almost double what we had. >> investors like certainty so we got certainty around who the president was going to be. >> might be different than what you thought? >> it wasn't just who the president was going to be but now we have the makeup of congress. they are all aligning so it
would appear that the market is anticipating future growth based on fiscal policy. >> i think we saw the investors were deciding once you had that play out in real time on wednesday morning they were making their bets on who was going to be the winners and losers? there is a great degree of uncertainty. >> it is interesting since the election you're finding your customers bought amazon, tesla and google but sold bank of america and wells fargo which is just the opposite of what has been happening here. >> not the opposite if you assume what might be a bit counter intuitive about what people normally think about the investor. our retail investors and traders are very savvy. >> i get that but the market has been buying the banks and the health care stocks and have been selling big technology which is the opposite of what you guys have been doing. >> maybe we have smarter clients. >> if this market has it wrong
it is a buying opportunity for amazon. that is kind of the idea? >> that is what our clients are doing, buying on opportunity. >> what happens now? we have had huge swings. one interesting question for all those people piling in, they might have seen a great buying opportunity. now we are well above record highs. i wonder if that makes people sit back on their hands. >> i think you get a little bit of pause while peek take stock over the weekend and decide what it is they want to do. we are seeing investors deciding now is the good time to take a look at the portfolio and figure out what the sectors are that are going to win. >> one of our trader friends saying it is a golden era for investing because people are so energized by what might happen under a trump administration. would you go that far? >> i would love that to be true. >> what about the fixed income market? what kind of trading are you seeing there as deals have been backing up big time here and spending much more than just a
fed rate increase. >> the steepening of the curve and in anticipation of a big investment that might be coming for this country in terms of putting money back to work. that is i think fuelling both sides. that might be a little bit of an overreaction in the initial days. who knows? >> the infrastructure play same question, the one era where for weeks into the election it was whatever the outcome is, infrastructure and gold people were betting on gold is coming off. he sold out his positions and so where do you see precious metals, infrastructure plays? >> i think those things like the currencies that are essentially risk off bets, they are basically balancing out simply because people are saying the sun did come out and people aren't reacting and there might have been a few protests but aren't riots in the street. as a result there might be a longer term boom in investing. >> what did you make of the trading in the mexican peso? seeing it as an inverse proxy
for the fortunes of donald trump during the campaign? >> i think it was mostly a reflection of one of the first things that he said in his campaign. it is a mirror reflection of what we saw with brexit which this is a currency pair that has movement as a result of the new presidency. that makes sense. traders were taking advantage of those shifts. >> it would appear we are in for a period of volatility. he said the obvious. >> because he is relative unknown politically and has a tendency to be a little more provocative in statements than traditional politicians. >> or during the campaign at least. >> we expect that will drive more volatility in markets which is something that traders like. >> thanks for joining us. let's send it to seema mody for a market flash. >> what a day for the markets. the dow continuing to rise as we approach the end of the day. financials, the best performing
sector among those in the s&p 500 on the prospect that donald trump president-elect will deliver less regulation for the banks and potentially more hawkish fed policy which would be positive for u.s. financials. some of the big movers include jp morgan, bank of america, wells fargo moving to the upside. financials best performing sector followed by industrials. president-elect did reference infrastructure as one area where we may see more growth. it is one of those days where politics are playing a driving force in driving stocks. emerging markets continue to stay under pressure. the mexican peso down 8% yesterday and continues to fall on concerns around u.s./mexico relations. in brazil etf big loser down about 6%. >> thank you very much. we get about 12 minutes left in the trading session. dow up 231 points in record
territory. joining us here is michael block. what have you been doing with this market this week during this rally? are you with it or trying to think about trading it? >> right now i'm thinking about fading it. you had your opportunity but it was overnight on tuesday. we said all alone on a trump victory it would be a dunk. >> you had to be quick about it. >> you didn't have time during cash hours when the new york stock exchange is open here. i have been surprised at the veheemt and stories we are getting about why markets are rallying. suddenly everything is to buy here. it tells me more about positioning. everyone is claiming of course trump is good for the stock markets. we have been hearing he is the great unknown. >> i don't this can anybody anticipated a republican sweep. in other words, a president and both houses of congress from the same party. >> that was the big surprise. you had a lot of political
operatives out on monday. hedge funds were paying them a lot of money for their call. they were saying things like clinton is going to win florida by three, 296 electoral votes. democrats will win the senate because -- bae didn't win indiana. there you have it. that has been a big part of it. the rally is not surprising. the thing is suddenly we are giving trump credit for being like the great really -- jeff said he is going to pull a ronald reagan, pro business. everyone will love him. he is painted as cutting taxes, pro business, rolling back dodd-frank. what is interesting is he paints himself as champion of the common man donald trump does. he is going to roll back dodd-frank. the guys in power are going to be put away. >> if there is one sort of common message from donald trump
and he just reiterated it is about jobs and jobs and jobs. it would seem whether they are in the banking sector, whether they are in the manufacturing sector or consumer sector or oil and gas sector that the whole point is has there been repression in terms of their ability to grow. he was not somebody out there on the campaign trail talking all that much about the big banks. >> look, if you can create jobs and spend money on infrastructure it will be a good thing. it is all a little bit one sided right now. the banks, everything is perfect like party like it is 2005 again. bring back subprime mortgages. >> one is not partying. >> let's make this meaningful for investors. if you are skeptical about what you able to do with the banks do you sell them? >> i'm fading the banks. i don't think it will be a perfect paradise for them. it was an opportunity for the banks to make a lot of money. i don't think that is coming
back. stocks are trading like some banker paradise is coming. i don't see it happening. health care i'm buying. i think the clamps are off of health care. got beaten up. a lot of deals. i want to buy tech here. >> this sell off in the big tech companies. >> stories about amazon. a lot has to do with positioning. into the election people are long tech, short banks and we are seeing it get flipped on the head. >> part of the switch from momentum to value t. seems a lot -- >> i think it is more of a sector play. it is morphing into a style play which is value versus growth. i see it more sector wise. i'm sure there are factors coming off in the style factors. the point is everyone is making up stories about amazon. he is going to beat up on companies. let me say this. if trump will single out companies and be vindictive is that good for business?
you can't have -- it has to be one or the other here. >> one of the classic indicators of the economy is copper. for the last three weeks it has been ripping higher. what do you make of that and what are you doing with that? >> it makes sense because you have a situation where if we are going to build infrastructure the middles will get a bid here. trump is talking protectionist. u.s. companies get their way in trade. really under estimating what china and europe and the rest of the world are going to do here. does it mean u.s.-based copper producers are going to be great? it is going to be a battle. he is a negotiator. >> with all due respect, it's clear which way you lean politically. you're being very skeptical about what he will be able to accomplish once he is in office. does that effect the way you trade this market then? >> no.
i'm trying to roll with it. the problem i have with trump is not that i don't like him. i was not a trump supporter. now i have an open mind. i have no qualms about seeing what we can do. the message to me is inconsistent. he got elected on one thing and now people are saying something slightly off. i want to see where it goes. i am a little skeptical that it is quite there. >> that goes to my point. is it possible you might miss a move if you are that skeptical going into this? >> you are going to either miss a move or top tick the banks on the buy side. i feel strongly about this. i'm edging into this. you maneuver and keep your feet moving. keep the hooves moving. >> is this good for your business? >> people are being a lot more tactical. there is a lot to do and people to talk to. we have a saying. you know how you get rebounds in basketball? stay under the hoop. we stayed under the hoop during
quiet times and holding people's hands. business looks great. >> what do you know? >> that's good. >> tim hock told us there is huge influx of new customers tuesday night. >> good for ameritrade. >> are we seeing renewed interest in the markets? >> i don't think the banks are headed for disaster. i think it is too much too quickly. i think we are pricing in some sort of banker paradise here. >> they are also priced to just kind of die a long slow death by a thousand cuts. some of that seems to be reflecting a lot of regulatory burden and higher interest rates. this is the first time we are seeing evidence that the higher rate move is for real. >> i am concerned that we will hit a break point. if yields keep backing up how will that effect the u.s. ability to service the debt funding the wonderful infrastructure spending. how does it effect bond
portfolios. >> good to see you. thanks for joining us. let's go live to the "new york times" deal book conference. >> it wasn't worth it. so much to talk about including the election. let me start with this as you can imagine did you ever imagine there would be what some people are describing as a trump rally? >> a trump rally? in the market. of course, i imagined that he could win. i thought a rally as in people -- i thought the election was over. of course, i imagine that he could win. i did not think it was a high probability but if you told me he was going to win i would tell you there would be a rally in the equity markets. >> you would have? >> of course. >> all of the prognostications
including those who thought the world was going to come to an end. >> there was a chance that the world would come to an end in which case we wouldn't have the rally, not because of him. i would have thought it would have been such a jarring prospect that it would have been a discombobulation of the market at first followed by what people are -- spending on infrastructure, more fiscal spending even in excess of what secretary clinton was going to do and lower taxes taelsh lighter regulation. that is kind of a burden on free trade. if you netted it all out it was supportive of asset prices and equities providing you got through that jarring moment when you found out that he got the election and created that uncertainty. that jarring moment happened.
i didn't think it would only last eight hours until the market opened. the dow was down, futures were down. and the market closed up the next day. that happens a little quicker than i thought. there is really no surprise. his policies are market supportive. i'm not saying it is good or bad. you have to draw a different set of conclusions. just as far as asset prices in the market is concerned in the near term how could they not be supportive. >> to the extent you want to prognostkate further out -- >> depends on what kind of president he is. all i know is i know how -- we know a lot about trump the campaigner. now we have to find out about trump who needs to get things done and starts to think about what his legacy is going to be.
i assume you go into that office and you think about your place in history and things change. >> i don't know if you saw the report this afternoon -- >> i'm going to see how it goes before i join, before i become mournful. >> before you become mournful. i don't know if you saw the report this afternoon that apparently on the short list of people for treasury secretary is a peer of yours, jamie dimon. >> terrific. >> do you think that is realistic? >> i think -- >> look, certain attractive aspects to that. he would be a great treasury secretary. he has been a terrific competitor and i would say in that one move he could kill two birds with one stone. >> let me turn it around.
>> the possibilities are terrific. >> if you got the call -- >> asking me whether jamie should be treasury secretary? >> if you got the call to be treasury secretary, there have been others from goldman sachs -- would you take the job? >> i don't know. i think people -- look what i said a few minutes ago about your place in history. you would have to weigh that. whatever else people have pronounced and said or thought, when you have an opportunity to make that kind of an impact you have to think quite seriously about it. you have to know what your role would be and your relationship with your boss and those things are important and what kiepd of license and latitude and what priorities your boss has. gosh, people who say -- i'm familiar with a number of people who have accepted that job. i know what they said before and i know what they said during the
process and i know what they said when they were sworn in. knowing that as i do i think a lot of people would take that job. of course, people would consider it. >> let me ask you about your views and personal relationship to the extent you have any with donald trump. you ended up in a negative ad that donald trump ran. did you know that was going to come? >> i didn't. >> and you thought what when you saw it? >> after i got up off the floor i was thinking that -- i didn't take it -- i didn't take it that personally. i didn't realize there was janet -- i said i'm in pretty good company. >> janet yellen was also. >> and the voice over about the power structure. i said i didn't know i was that powerful. i just think the campaign, i
have been in the press a lot from time to time. that does not make my top 30 list of things i would be concerned about. >> let me ask you about two other former goldmanites that may get this job if jamie or you don't take it. former goldman sachs alum. steve bannen. i don't know what job he would take in the administration. can you tell us about them? >> i never met steve bannen. i don't know him. steve manuchin when i was running fixed income he was a partner at a young age, did very well. so he was a very senior guy at a very young age at goldman sachs. so he is a smart, smart guy. i followed his career. i know what he has done. ivent really engaged with him
that much since then. i'm sure he stayed just as smart as he was when he worked at goldman. >> good answer for when you visit him at treasury. >> now i'm visiting him. i he's not visiting me. i got demoted. >> let me ask you about this headline in vox saying donald trump's administration is going to be a bonanza for bankers. this is ultimately going to be very, very good for the financial sector that ultimately he may reverse what was dodd-frank, that many regulations may come off and that much of what has happened over the last four and five years in terms of regulatory environment is going to look very different 24 months from now. do you believe that? >> look, regulation is not going to be repealed. it could be modifications. i wouldn't want regulation to be
repealed. a lot of regulatory framework we could regulate the amount of capital and activities. you could have regulated remedies. did everything. so if there was something that could have contributed to stability let's not choose. let's do them all. there are certain things that have a back bending effect and repress activity. it could be appropriate to hook at some. you wouldn't want to repeal it in toto. if you want to be good for bankers you have policies that drive economic growth. that would be good for bankers, companies and citizens. >> let me ask you this in terms of trying to understand what may or may not happen around dodd-frank. one of the things he did say on the campaign trail, i don't know if you think he will ultimately go through with is glass-steagall, bringing it back. do you think that is real? >> i don't think it is
realistic. that almond as been made and that toothpaste is out of the tube. glass-steagall separated investment banking from commercial banking lending. at this stage you can lend to a bank or under write a corporate bond from a bank. they are economically equivalent things. that is the way the markets evolved over the last 25 or more years. the fact of the matter is we stayed pretty close to a much more pure investment bank than the ones you consider our competitors and we would be the closest to a -- in fact, very close, to a historically glass-steagall compliant model. that would do very little violence to our business strategy and plans not withstanding that i would say that the world has evolved since then and you really couldn't separate those activities because lending, corporate bond
trading are substitutes for each other. >> where do you think the popular image of bankers is at this point? >> in the household? >> i would say i don't have to rely or speculate. part of what we do is we try not to be tone deaf and we try to hear things and listen closely and we ask people. i would say it's not in as low ebas it was in the heart of the financial crisis. it's still low and to that extent we compete with a lot of other institutions, congress. institutions and in some ways this election and other elections around the world is a reflection of lowest in which a lot of institutions and businesses and within the context of businesses industries, pharma,
extractionest industries. all of these things do great things and are essential for society. i would say bankers is very competitive for the lowest, but we have a lot of company these days. we have to work on that. >> what was your reaction -- i don't know if you talked about this, your reaction to wells fargo and what happened there? >> we are in a different -- >> i want to talk about, you are about to get into retail business. >> my reaction to wells fargo, wells fargo is kind of sounds like an institution where like we are as different from each other as any banks could be that are among the biggest banks in the country. but i have -- i don't always know, but, of course, when you are in that kind of spot light and have to make rapid decisions you get caught up in the whole vortex and you don't have a lot of respond. it brought back i had stress
syndrome. a lot of people go through the washer. if you haven't gone through it yet you don't realize it. if you have been doing this stuff as long as i have you find yourself with challenges to work your way through. i know the senior most people there. they are quite good people but people get -- you find yourself in challenging situations. they are very big companies and things happen. >> you talked about you have been at goldman and in this position, you have the longest running tenure in this role. >> i have the longest teenunure a long time. i'm not going to be competitive. >> what i wanted to ask you, you named new partners yesterday. >> we did. >> one of the things that is so interesting and i think is happening across wall street --
>> that was the other election that took place this week. >> the other election. people are staying longer at these firms. there was a culture question. >> feels longer. >> people are staying longer and it used to be you would work at a place like goldman and maybe when you are 55 or 60 you work in government. there was an enormous amount of turnover. >> it still is. >> whether you think that has changed. >> i don't have the numbers but it is pretty close. the average tenure is ten years. it is probably around between six and eight years. a lot of people make partner in their late 30s or early 40s. and so most of the time when people leave goldman sachs, look at the names of people you are mentioning there is certainly time for another act. when i became a partner -- there
are exceptions. i have been a partner for almost 30 years. i remember when i became a partner i was taken aside by the managing partner, the administrative partner. he said lloyd, there are just blah, blah, blah cht this is how you have to live your life and pay taxes and here is two other things. you should be philanthropic, set up a foundation and join boards and the other thing you should do is arrange your life so that if and when they finally write an obituary about you and it is nine paragraphs long, no more than two or three should be about goldman. you should have balance in your life. >> let me ask you about -- when you think about being a banker today, young person being a banker, it could be argued that
the quote best and brightest were going into banking. you can make a lot of money in the banking business. you can't make as much money as you used to. >> we will have more coming up. he is going to be speaking with bill acman and we will bring that to you when it does happen. you can continue to follow this along if you guy cnbc.com. we have just closed at record highs in the dow jones industrial average beating out prior closing high from august 15 and continues the streak since donald trump was elected president late tuesday night. there is the gain 218 points higher. 18,807. it was a very different story for the nasdaq. we will get to that in just a moment. joining today's panel we have michael santoli here along with cnbc contributor stephanie link. along with us is fast money trader steve grasso.
it's been an extraordinary couple of days. >> really violent rotation within the marketism people feeling under invested in general in stocks. that is why you have the dow up there. the divergence in the index does tell the story. the dow is up a full percentage point more today. normally they are much more in lock step. all about haves and have notes into riskier financial sectors out of stable growth like big tech. the stuff that has been working was not working the last two days. to me there is a certain leap of faith aspect. stuff that is working, stuff that is crowded is not working. on the other hand it is not a straight line between two days after the election and ultimate fiscal policy decisions. >> are you leaping? >> i don't know. my portfolio seems to have the trump end to it. i have been into the cyclicals. i was early, for sure. i'm enjoying it right now. the xli up 3.5% relative to s&p.
banks versus utilities up 18% in the last two days. these are really big moves. we are not going up in a straight line. you don't need to chase but i think the direction from defensive to cyclicals is the right call. today felt particularly nasty on the staples side and growth technology. you make your lists on the extreme days and there will be time to pick and choose at other things that are getting hit. right now let the momentum go where it is going. >> do we need to make grasso bullish again hat? >> never. >> when you look at the xlf i believe it is getting overextended now. when you look back towards -- of course, you had to say that. >> i'm going to take a step back. yesterday i came in. i bought uri. i bought it right off the bat. i bought spiders. i also bought eem. >> emerging markets.
>> it's the unconsensus trade now. the xlf to mike and stephanie's point, that's where the chase is on. no one is thinking about eem right now. that is why it is going to pop next. >> everyone is concerned about what is going to happen. there have been such huge runs if you look at the banks and bio tech etfs up 20% this week. >> the stuff that does make the most sense is something where by the stroke of a pen the regulatory structure changes and it's automatically to the bottom line of certain companies. that could be financials and pharma where you are not going to have pressure on pricing. that stuff makes sense. in terms of penciling in infrastructure spending and giving credit today in a $67 billion increase in caterpillar's market value that is a lot of bull dozers to sell. >> caterpillar is the best stock this year before this week.
it is on top of all -- >> that is worth pointing out. the fact that you had your portfolio set up this way means it was not about the election entirely. it was a reason for the market -- >> jump back to bio tech. for me it is a bipartisan issue on drug pricing. just because donald trump is elected i don't believe that that -- i think that -- forget about him. it is congress. congress on both sides of the aisle have been against -- it's a poster child. >> i don't hear mitch mcconnell saying first priority is drug pricing. >> you will hear all other -- >> mylan had earnings last night. a couple of other big moves we have been seeing, how about copper and baltic dry. gold was one. oil also going the other way. there are interesting things if you are trying to figure out what is left to buy or what to do in this environment the
materials and commodities space got to be a little careful. >> in the cyclical group what is surprising is energy stocks have lagged. we have the binary opec meeting and people really don't want to take too much of a big bet. that said energy has been a nice performer over the last couple of months. you are getting opportunities. that is where you are picking away if you want that exposure that hasn't gone up yet. >> we have earnings coming at us including disney. shares are moving. julia boorstin has it. >> that's right. disney earnings missing on both top and bottom line reporting $13.142 billion in quarterly revenue compared to expectations of 13.5 billion. disney does not give estimates. these are wall street projections. earnings per share coming in at $1.10 versus expectations of $1.16 and that is versus $1.20 in the year ago period.
disney explains front and center here in the report that the decline is in part due to the fact that the year ago, the full year a year ago because we are at the end of their fiscal year had an additional week which was responsible for another 13 cents for the full year. that is how disney explains declines pretty much across the board in terms of lower than expected operating income. so declining operating income. especially when it comes to the median network business, cable networks revenues down 7% while broadcasting revenues increased 8%. they say of the cable networks because we are focussing on espn that the decrease reflected lower advertising and affiliate revenue and saying lower advertising revenue is due to fewer impressions and lower rates and saying that there was lowered affiliate revenue due to the fiscal period impact.
now, in terms of the other divisions, parks and resorts they say lower resorts at disneyland paris due to decreases in attendance and occupied roomnights. as for movie studio which did have record results in the year thanks to "star wars" they say there is lower than expected performance of "pete's dragon "in the current quarter and tough comparisons to "inside out." on consumer products and interactive media division had a tough quarter largely due to discontinuation of infinity consol game business. >> disney shares down about 2% on this news. let's bring in robert luna for his reaction. if i'm looking at the numbers the cable business is an issue
here. >> it's been an pongoing issue. that is really the challenge. julia mentioned there are five major divisions over there but there are three that matter, networks, parks and resorts and studios. studios and resorts continue to do well. they have great pipe lines. if you are a disney shareholder i wouldn't be too concerned there. espn continues to be an issue. until disney is able to articulate a go forward path and put out a platform i know they bought bam networks or took a major stake in them they need to stem that tide. when you are talking about operating income that is still that division counts for over half of operating income. it is a concern. i have to go through the numbers. if you are a shareholder i think it is more of the same. that challenge is there. i think a lot of it is priced into the stock trading at 15 times. >> let's listen to this. john maloan speaking about the pressure on disney because of
espn and what might happen for the future there this morning. >> if somebody went after disney, my guess is apple would have to finally make a decision because they are very close with disney. >> i was on the board of apple. >> correct. >> if i had to guess what you will see is a split of disney with espn spun off and probably espn could be owned and protected by a distributor in the u.s. disney should be trading at a substantially higher multiple. let's face it. they are fabulous studios. they own theatrical. >> that was john malone this morning. what do you think? >> i think much of this is what we have been talking about for the last year. i don't this can the forward
estimates is still a premium to the grume and the issues are very much right there for us. it's espn but now parks are a little weak. they needed a clean number, a beat and it is not going to happen with the overhang on espn. >> you are right. it's not at a discount but a premium except for time warner. that's the whole idea. at $150 billion nobody is paying a fat premium very soon for disney. i think the comments are pretty fast hitting. he is thinking several moves ahead. i don't think he thinks next quarter that they will separate out espn. julia take down the list. everyone of those reasons is plausible. disney didn't have to used to give excuses. they never used to miss earnings even though they didn't give guidance. it is still a bit of a struggle.
>> would you echo that? >> it is exactly what it is. parks and studios. the parks are off a little bit. if you go a california half the park is closed right now. there are a lot of reasons you can see why attendance might be off. major issue is espn. it's a huge outflow in revenue and something they need to do fast if they want to continue to improve on shareholder value. >> why not do it more quickly? these are huge assets and traditionally have been hugely valuable. if you are disney what is the point? >> i think it was a similar question before time warner bought the bid from at&t. why don't they separate out hbo. it has separate economics. time warner felt there was a value. you are selling into the cable pay tv ecosystem. the thing is espn has never been fully integrated to the rest of the company. >> no real reason that if you
separate it out -- >> wide world of sports little mini theme park somewhere. >> the other issue when we saw the ratings come in and there is this whole issue with nielsen and did they lose that many subscribers? what is really happening here? it is just one month and was much worse than usual. so i guess you have to be on the inside to know how bad things are. >> the results speak for themselves. espn was the reason this thing got a premium multiple. i don't think it should trade at a premium multiple to the group. they haven't articulated what they are going to do. i don't think they know what to do because things are moving at such lightning speed. i think they have to take a step back. i admire that they are not rushing to do something. i want them to create shareholder value. i don't need to be a shareholder while trying to figure it out. >> the 15 times earnings last traded in early 2013 before
frozen came out of nowhere before they integrated. there is a lot in there if it gets cheap enough and espn manages the decline. >> they don't need to start channeling let it go just yet. >> there's a huge pipeline going forward that they will be able to value in. i wouldn't give up on the stock too soon. >> thanks for joining us. bill acman set to take the stage in new york as investors await what he has to say about stocks like chipotle and valeant. big tech stocks selling off on fears a trump administration could negatively impact silicon valley. we will look at whether tech will sink under trump coming up. . because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others.
illegal monopoly. investors shown nervousness. tech has completely sat out the rally over the last two days. amazon has been hit hardest falling as much as 6.5% since tuesday. ceo jeff bezos on twitter after trump suggested amazon was illegal monopoly he offered to send trump to space. today striking a very different tone tweeting congrats to the president-elect. other responses have ranged from hopeful to anxious. tim cook told apple employees the only way to move forward is to move forward together. facebook's mark zuckerburg addressed the election result saying let's go to work even harder. under the obama administration tech companies became some of the most valuable and prosperous companies on earth. now they have to digest what a trump administration could mean for the industry.
there was peter thiel. his support for trump put him at odds with most of silicon valley. he is now maybe one of the few people in tech who will have the new president's ear. >> we have an earnings alert on nords strm. how did they do? >> reporting 84 cents adjusted taking out to one-time items. wall street seems to like it. we are seeing that we have a beatful revenue. 3.54. comps coming in up 2.4% exactly in line giving us a little more narrowed focus on the guidance shares there up almost 9% here. that is a strong reaction in the after hours. and we can run through what we saw with michael kors. a beat on michael kors for profit. earnings of 95 cents compared to estimates of 98 cents. comps down but that was better than expected there.
however, for michael kors full year earnings is light. the third quarter a little light. the full year is giving us the most trouble. you can see shares down about 2.5%. >> that explains it. u.s. airlines hoping policies will protect them against highly subsidized rivals. that is coming up. also hedgefund manager bill ackman about to take the stage. we will bring you his comments live when we come back. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be. our clients can now leverage customer intelligence
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time for a cnbc news update. >> the illinois congressman who resigned in scrutiny of lavish spending was indicted on 24 federal counts today. the former congressman remodelled his capitol hill office. a new report from the cdc says tobacco is linked to 40% of all cancers diagnosed in the united states but also said fewer americans are smoking. about 15% of adults in 2015 a drop since 2005. president obama welcoming the 2016 nba champion cleveland cavaliers to the white house. kevin love giving obama a personalized jersey.
the president thanked the team for another reason. >> i should add that by knocking off the warriors they cemented the 1996 bulls as the greatest team of all time. so your president thanks you for that. >> that is your news update at this hour. like i said before t has been kind of an incredible year for sports and politics. >> a lot of upsets. big ackman is about to take the stage. investors are anxiously awaiting his comments and whether he thinks the trump rally will continue. we are bringing that to you live when we come back.
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it was a record high close for the dow jones. 18,807 with a 218 point gain. the s&p 500 only added about four points today so not nearly as strong as the dow. the nasdaq was worse. it fell 0.8% with big tech decliners like amazon to close at 5,208. transports hitting a high as investors hope president-elect trump will boost infrastructure spending and some u.s. airlines
are hoping to take advantage of trump's protectionist campaign speech and ask for assistance. phil lebeau has more. >> this is not surprising that this group would make this renewed claim that there should be some action on their behalf by the trump administration. they have been fighting this battle for a couple of years. it comes down to this. the persian gulf carriers, these carriers have dramatically increased the number of flights coming into the united states. what the coalition of u.s. airlines are saying is these guys get about $50 billion in subsidies in a number of different ways and it makes it unfair and too tough for us to compete. when you look at things from the u.s. airlines perspective they have fewer flights and they are now seeing the potential to have flights to europe suffer because some of the carriers are saying maybe we will do a flight to milan to jfk. and they are saying those types
of flights potentially could hurt u.s. carriers why they are asking the trump administration to work on redoing the open skies agreement in terms of making these carriers be much more transparent in terms of what subsidies they get, how they do accounting and perhaps put a limit in terms of the number of flights bringing into freedom flights from destinations in europe. it will be interesting to see what happens for the u.s. carriers with the trump administration in terms of this battle with the gulf carriers. i can tell you they have been fighting this battle for a couple of years and haven't made a ton of progress. there have been discussions between the state department and the middle eastern entities. so far they have yet to make the kind of break through in terms of changes in policy that the airlines are looking for. >> still those shares up 79% this week. they are -- another possible
treasury secretary under donald trump. >> the wall street journal is reporting that the trump team is considering congressman jim hencerly as possible treasury secretary. he is the chairman of house financial services committee. he has been a member of congress since i believe 2002. so this would be a natural fit. wall street journal, to be clear, not saying exactly how they know this, just citing people familiar with the matter a lot of names floating around washington for a lot of positions. it is clear in this case as it often is that only a few people really know where donald trump is going to land on a lot of these major positions. donald trump being one of them in a small circle of aides near him. a lot of people in town will float names in order to get somebody on the list or off the
list. that is a lot of what we are seeing today. i think through the rest of this week. i can tell you we have obtained a list here of officials looking to see who the key players are on each issue. one person who might know is listed as being one of the key figures on economic issues inside the trump transition. there are a few people who know the answers to this and a lot of people trying to figure it out all out. it is a big and important question. >> thanks. what about him? >> seems like he would be right in line with the plan to basically gut dodd-frank. it really would do a lot to reduce the impact of dodd-frank. i think policy wise it makes sense. he is not a wall street banker if they care to take an elected
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he is going to get a lot done and nothing has gotten done in a very long period of time. and if you are an activist investor you want someone to come in and take over and get things that need to get done done. i think that is extremely bullish for growth in the united states. he is also going to -- if you look at his financial advisers they are not your typical presidential financial advisers, they are business people. and the united states is the biggest business in the world. it deserves to be run by a business person. i think he will attract the best and brightest to help him grow the country. i think he is going to reduce regulation. he is going to get rid of the sporadic washington, d.c. i think it will increase bullishness of ceos. >> i am almost on the floor hearing you say -- only because i think the last time i talked to you you were supporting hillary clinton. >> not true. i supported mike bloomberg. i worked hard to get bloomberg
elected. for the same reasons. i thought bloomberg would be a better candidate, a closer match on social issues and supreme court issues and other things. i have said for years if we could have a business person to run the country that would be a wonderful thing for america. i think i had one of the gralt meetings of all time with donald trump about 20 years ago. i take the rest of this panel to talk about that meeting. >> tell us about that meeting. >> it was just a great meeting. no. bad idea. >> i spent an hour and a half with donald trump 20 something years ago about rockefeller center. he had an idea and we wanted to work on it together. it didn't work out. i met him then. i saw him at a wedding a number of years ago. i have been a big fan of ivanka.
my most bullish argument for donald trump is it is hard to produce children of that kind of quality. i think that speaks obviously to him. so you can say what you want about personal qualities and issues. i believe in the -- >> i woke up in the morning. >> the concern with donald trump is volatility. who knows what he is going to do? this guy just became president of the united states. this is going to be his legacy. does he want to screw it up? he wants to be the greatest president the country has ever had. i remember when i was a kid ronald reagan getting elected and people said the guy was a clown, an actor, didn't know anything. people think ronald reagan is one of the greatest presidents we have had. this is a guy who knows how to
build things, get them done on time and on budget. that skill is very useful when you are going to spend a trillion dollars on fixing the infrastructure of the country. the american people are very wise and the american people voted not only to put donald trump in the presidential seat but to keep control of the congress and the senate in the hands of the republicans which means the president can be effective. we have not had that opportunity in a very, very long period of time. i think that is bullish for growth. i'm not carl icahn. he left the trump rally at 10 to
go trade. >> index futures. that's not really what we do. i think it is very good for companies that we own. we are long america. i have donald trump to take care of the rest of the portfolio. i'm done. >> we got to talk about a lot. i want to talk names, herbal life and valeant. i want to ask you about activist investing. the theme here is planning for lo long term. we talked about activist and activism. they all send their best and their love. this was said about activist investing. don't try to make ceos look like fools and use the media constructively because shaming ceos doesn't help. if you run a real company you wouldn't be saying this.
i think asset creators get the short end of the stick and don't get enough credit. asset managers and manipulators get all of the attention. what do you make of that in. >> i think she is entirely right. if you look at what we i think. one of the things we learn from the success of donald trump, the media here has to feel pretty embarrassed about the election and how they called the election. i've learned not to trust the media, unfortunately, you can't believe what you read in the newspaper. that perhaps perception -- >> it's tough for me to sit here like this. >> if i were a paid guest, i would have to be more polite. i'm here for free. [ laughter ] so who is using whom, let me just be really clear. so i have a lot of respect for her. if you look at what we do, we're not manipulators, gatherers. we're business builders. we stepped into canada pacific, the worst-run railroad in north
america. we recruited the best shareholders in the industry. we controlled the second largest railroad in canada. he built the most profitable railroad in north america over a four or five-year period of time. they had the best on-time performance. they reduced delivery times. septa isemi made it the most profitable. we're still a shareholder. look what we did -- >> that is bill ackman speaking about his enthusiasm for the country's prospects after the election of donald trump. check out the conversation at cnbc.com. we'll be right back. ♪ it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios
with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average? what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water.
welcome back. we have an earnings alert on invidia. >> shares are spiking here, 83 cents versus wall street estimate, up 57 cents. revenue beating expectations. quarterly revenue jumped, helped by growth in its gaming division. it's also reporting a 22% rise in its quarterly dividend from 11.5 cents to 14 cents and a $2 billion share buyback. a strong report here, shares are up about 13% here in extended trade, kelly. >> big move, seem aseema, thank.
what are the implications, stephanie? >> it's really talking about gami gaming, virtual reality. i'm wondering if this gives a spark back to growth technology stocks which got hammered today. >> disney's earnings call is coming up, we'll tell what you to listen for, after this. when a moment turns romantic, why pause to take a pill?
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welcome back. we're soon going hearing from walt disney on its conference call with investors, after the shares are down 2.6% on an earnings report that frankly has people still concerned the bottom line was a miss, $1.10 versus $1.16. >> what's the trajectory, do they have a hand on subscriber growth or decline? wouldn't you love to hear about
what bob eigert things? >> the stock is down 2 or 3%. to mike's point, we have to it some of the strategies in place to go to comfortable with actually buying it. i just think there are other places. if you want to be in media, comcast is where i would go. not at all, not at all. >> back to the broader markets here, all-time highs for the dow not the case for the s&p 500 and the nasdaq. do you buy on the catch-up trade? >> the catch-up trade would be more the tech stuff and maybe some of the over sold, more stable companies. the bond markets are closed tomorrow. >> steph? >> i think you let the cyclicals ride a little bit. some names are quality companies, they're getting hit hazard 3g is looking to buy. all we need is one deal and these stocks will rally.
>> it's such a high level for low interest environment. >> huge exporters to latin america. >> you don't want to buy the whole group. you want to buy some of the little gems. >> stephanie, mike, thank you guys. that does it for us on close close. "fast money" begins now. we discussed a lot of different situations, some wonderful and some difficulties. i very much look forward to dealing with the president in the future, including counsel. he explained several of the difficulties, some of the high flying assets and some of the really great things that have been achieved. so, mr. president, it was a great honor being with you and i look forward to being with you many times in the future. >>