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tv   Closing Bell  CNBC  November 15, 2016 3:00pm-5:01pm EST

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e-mail. everything is being monitored. >> thanks for being with us today. >> we will. a little more than an hour you can catch up with marcus on facebook live at 4:15 eastern time on facebook.com/cnbc. do not miss the prophet in cuba tonight on cnbc. >> thanks for watching. "closing bell." >> starts right now. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> bill griffith. i love cuban food. dow looking to lock in a seven-day winning streak. another record close energy and utility stocks leading the charge today after a roughly 6% gain in oil. wti 6%. >> people find gasoline prices
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higher this thanksgiving than last thanksgiving so we are starting to lap. we have exclusive interview with united airlines ceo oscar munoz. that carrier unveiled some new fares. he will react to warren buffett's surprising new stake in his company. >> pricing is becoming more nuanced than before. facebook is taking aim at the fake news feeds on the site which some people blame for donald trump's presidential victory. we will talk about whether that can back fire and hurt facebook's business because it involved advertising. are we saying fake news on facebook is why donald trump won? it's a bit rich. >> let's start with runup in crude prices very impressive. >> as you mentioned almost 6%
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move in crude oil just today. about 2 1/2 dollars and settled at $45.81. we are still in the sweet spot range just around $45 a barrel. yesterday we hit technical lows. you definitely have buy in the dip here. what fuelled this rally? more optimism about opec. this move certainly notable because we saw dollar index over 100 today. that usually pressures crude. i want totalk about what traders are buzzing about. opec production in october was 33.8 million barrels. it continues to rise. the target in terms of what they said they would cut in september about 750,000 barrels. traders are telling me we are looking forward to november 30 and we want not only an agreement but maybe more than that. maybe a million or more barrels
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which seems like it could be difficult. it leaves a little wiggle room for the market. the market could be disappointed here. the range that traders are talking about, 45 plus or minus $2. very tight. back to you. >> and we are sitting on those levels. thank you. we also had positive news on the retail front today. it's not reflected in retail stocks. >> so the department says retail sales improved and today's retail reports have been solid, all three beating on all three big metrics. shares are down, some on profit taking. there is uncertainty about changes to health care wages under a trump administration and what is means for the sector. home depot did report another quarter where profits beat the street handily while whirlpool said appliance demand was soft in the u.s.
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the home improvement retailer is upping guidance and says it is currently on track to meet it already. tjx company which owns tj max, marshals and home goods beat. upping the guidance though still conservative and that is fairly routine from that company. dick's sporting goods ceo says it is grabbing gains as rivals go out of business. the sporting goods retail also beat out guidance. the retailer's comp guidance points to a much stronger holiday season this year than last year. the tone remains bullish for the holiday season saying consumers are in a position to spend. >> and investors in the mood to punish them. >> shares down about 10% today. >> skepticism. let's get to closing bell exchange for this tuesday with
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the dow up 31 points. i feel like i'm looking at mount rushmore there. look at the distinguished member. michael far, mr. art cashin is at post nine and rick santelli is back in his post in chicago. arthur, what do you make of this post election rally and how much of it is still an election bounce and how much of it now is all about fundamentals like oil and maybe interest rates? >> you are getting a big boost from oil. it's amazing what they can do with rumors. opec is finally going to get the act together. we heard that about nine times this year and still hasn't happened. crude has been an important part of it. earnings not unimportant. as you and i discussed off camera this is vaguely reminiscent of what happened after the ronald reagan election. they had a one-month honeymoon
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but then things didn't work out so well for the next eight months. >> a bigger sell off after the initial rally. what are you advising people do and how morose is the atmosphere in washington these days? >> washington is like everywhere else. about half the people you talk to are related and half the people are suicidal. there isn't a lot of in between. i think clients have to be cautious. stocks seem to be expensive. one of the things that we are doing is staying away from brick and mortar retailers, a lot of online retailers seem to be more attractive and look at stuff that has been beaten up like health care medical device companies under repeal of the affordable care act a lot of those companies are people think are probably not going to do as well. those prices are down so companies like medtronnic and striker we think represents pretty good opportunities.
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>> rick, the yields have pulled back a little bit here after peaking earlier. just taking a pause here or do you think we hit the highs for the year at the moment. >> i'm not sure that we have hit the highs. i will stick with my claim. yesterday's yield close is 226. one basis point away for the area referenced for quite a while now, last year's settlement of 227. i think the interest rate complex like equities will hold much ground of the recent moves just because of many technicians think we may close on change doesn't mean we don't visit higher yields. as far as all the markets and art cashin is a wise man, i'm not convinced that it will be the same as reagan. i think there is more steam. so many were so comfortable trying to weave together narratives where there was a lot more helium than the opportunity
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to do something in the future. one thing that nobody is talking about that is common down here and it is tough to talk about because everybody is looking forward, we have a two-term president that definitely didn't seem to be very pro wall street. no matter what you think there was a lot of vinegar there for business. i think both houses and this gentleman that will be president and donald trump will be more on the honey side i wouldn't under estimate that dynamic. i don't think we will get all of these helpings all at once. i'm optimistic there is pent up demand and investment that can't be made and funds to fund it. we'll have to see the details but at this point i would be surprised if this doesn't continue in fits. >> it was interesting where they outline a number of industries they are working in and ways they think trump's policies can help to accelerate progress.
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just like rick is saying. perhaps a better environment for companies. big tech is an area that has been hurt. more momentum play. since trump's election would you buy those names that people are selling right now? >> i would but i really want to take a look at where they are making their money and how they make their money. google has suffered and yet i like that company a lottism i think the fundamentals are very strong. i think it's a company that i would continue to buy today. i think a lot of the older line, larger companies that could still come under some more pressure and regulation may have a more difficult time. so i think that there is always opportunity when something goes down. i like to buy it when everybody else hates it. >> today wouldn't be the best day for that. they are recovering a little bit. >> i don't want to put too much of a fine point on the correlation but i think the point you were making was the
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business cycle kicked in and we had a deep recession not long after the president took office at that time and the markets had to deal with that before the big rally began in earnest in august of 1982. >> you had about a 6% to 8% honeymoon rally and then paul voker continued to strangle inflation to death. that had the business cycle kick in and the stock market sold off 20% before turning around in august of '82 and proceeding to double over the next several years. >> rick, the role of the fed comes into play we are talking about two very, very different economic periods, high inflation at that time and very, very high interest rates in the early '80s. the fed is going to play a role in this in the early days. >> i think they are going to play a much smaller role than they have the last 7 1/2 years. that is part of the magic of
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this move. art is a smart guy. i traded fixed income market and one thing i do remember that goes along with his description is you know the supply side seeded a lot of deficits for a while and those are going to be issues with some programs that donald trump is talking about with regard to infrastructure. i know he wants to finance it in creative ways. of course, unlike those years the deficit levels are very high especially as percentages of gdp. that could put drizzle on the party but i really do think we are taking our foot off of so many issues that just weren't a very fertile landscape for business. i think we under estimate what we have come from. >> rick, aren't we seeing a little bit of a shift from a monetary policy reinflation to fiscal policy? aren't we going to see more debt spending to inflate other balance sheets to take on the heels of what has been going on
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from the fed? >> i'm not sure if i describe the actual effects of monetary policy -- at this point i do think that the central bankers, the outcomes of trying to keep rates low to keep masses to spend money completely back fired. i think it is more about the fiscal side and we can make excuss that the fed needed to do something. in the end i think that chapter is over. i think we will have fiscal programs with a lot of movement to talk about 100 days after that january inaugural ceremony. >> in the early '80s at that time when yields were well into double digits and he says they couldn't give those bonds away at that time. now here we are practically zero and the demand is still very, very high. >> it was in the '50s.
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>> 45 minutes to go in the session. the dow is up 25 points. up 61 points today. >> united airlines ceo speaks with us about his airline's bold play for budget travelers. the carrier will offer discount fares that will not let buyers pick seats ahead of time. it will limit them to a single carry on bag. you don't want to miss that coming up. up next, new developments on the president elect's leadership team. we will go live to washington with the details. is it because so many go after it the same way?
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welcome back. today it is a bit of a reversal, everything that did poorly is doing well. that includes the nasdaq up 1.2% and a lot of big winners are taking a pause.
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>> the dow is back in positive territory. put it back in record territory. >> remember when we had the nine-day losing streak. >> very streaky. let's check other moovs in the market. raymond james upgraded the stock to buy. same store sales fell less than expected offset by new store and world pack branch openings. with a $190 price target on the stock. raymond james has $180 price target. the stock at 164.5. jd.com a gainer. china's second largest e-commerce company with better than expected revenue. ceo touts the company's growth in new users sig.
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>> new developments in president-elect donald trump's leadership team. >> we have seen opinions crystallize about where big jobs might be going. steven manuchin who was fundraising chief is rumored to be leading candidate for treasury secretary. he was talking about plans for a trump tax cut bill. and rudy giuliani, one of the closest surrogates for donald trump was auditioning for secretary of state last night at the wall street journal's ceo council. >> isis short term i believe is our greatest danger and not because of isis in iraq and in syria but because isis did something al qaeda never did. isis was able to spread itself
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around the world. >> but now we have also got turmoil within the transition operation. rand paul, the senator from kentucky has come out strongly against a potential alternative to rudy jogiuliani of secretaryf state and that is bolten. and mike rogers, former chairman of the house intelligence committee resigned from the transition team that he had been participating in saying it was an honor but he would turn over the effort to mike pence who is leading that team, not chris christie who brought mike rogers in and it is indication that the trump family is also having a significant role in the transition. he referred to the trump family in his resignation statement. one thing we know for sure is that the leadership team in the house of representatives that will be dealing with the trump administration will be led by
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speaker paul ryan and kevin mccarthy both renominated by caucuses to those positions today. >> clearly this would be expected of anybody. during the early obama days a lot of people from chicago found themselves with jobs in the administration and you're going to find that in the case with a lot of people that the president-elect relies on and trusts. not only -- it's only natural to expect that to happen in the early days of an administration. >> what is significant here is that we have had within the last several days we have had a turnover of the leadership of the transition office. chris christie was the leader of that office. he was bumped out, demoted and mike pence has become the head of that effort. so mike rogers is one of the casualties of that change and there may be other christie confidents who are falling out of runnings of big jobs with the
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administration. that's not a kind of turn we see usually at this point in the process. >> we heard from john boehner but how he thought trump would govern and what kind of president he thought he would be. >> donald trump is not an ideal. he is barely a republican. nobody really knows where he is going but made it pretty clear during the campaign of what his issues are. but i would expect things like infrastructure, tax reform and immigration reform are things that are doable in this next congress. >> echoing we heard from president obama yesterday about him being more pragmatic. >> exactly. if you are somebody who is not a staunch partisan who wants to see grid lock ended, who wants to see some significant progress
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on things like infrastructure that assessment from john boehner is as hopeful and encouraging as president obama's was. the idea that a republican president could get a republican congress to do some things the democrats agree with. if that can be successful there are a lot of people pleased by that and might help the economy. >> thanks. see you later. massachusetts senator elizabeth warren is holding no punches in her reaction to the way the trump team is shaping up. eamon javers has that part of the story. >> democrats are scrambling to react to this incoming trump team and figure out their own path forward now that they are shut out. democrat jerry said that the appointment of steve bannen to be white house strategist to the trump team said that is disgusting and elizabeth warren speaking to a business audience
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made her pitch specifically to that audience on the issue. here is what she had to say. >> there are a lot of people in this room who helped lead the charge to make work places open and accepting places to say we are open to all customers. we want to make sure that we serve all americans, that we treat everybody with dignity and respect. if this white house goes in a different direction that damages everyone of us and i think it calls on the business community for leadership. >> democrats have decided to postpone leadership votes on nancy pelosi as their leader in the house of representatives. that is going to take place not thursday but after thanksgiving and that might indicate some potential difficulty down the road for nancy pelosi maintaining her leadership position. she has been viewed as a very strong leader of democrats in the house. very strong control of that caucus, but given the scale of the defeat the democrats have
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faced here in 2016 there are some democrats who may want to move in a different direction. we'll see where that vote goes after thanksgiving. >> thank you. eamon javers there out of washington. a little more than half an hour to go. with the dow up 31 points about the high for the session. as kelly said, other averages that have been trading lower recently are back up higher today most notably the nasdaq almost 1.25% gain. >> the dow is positive by 31 points right on the button. 18,900. don't worry. all the 19,000 are getting ready. silicon valley venture capital tim draper tells us if he is backing a renewed push for california to secede now that trump won the white house. facebook ezit is taking steps to halt the spread of fake news.
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welcome back. generally the market is higher but certainly not teva pharmaceutical after a quarterly earnings beat but did mention that revenue missed and it cut full year guidance citing launch delays for some drugs by as much as a year or so.
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facebook announced measures to halt the spread of what it calls fake news on its plat forms. company updating advertising policies to point out that its ban on misleading content does apply to fake news. >> and some facebook employees are reportedly starting an unofficial task force to question the role the company played leading up to the presidential election. let's bring in fitzgerald for more on the impact fake news had and the changes on facebook. let's start with the impact to facebook here from your analytical point of view. >> so from a financial standpoint we don't think it will have much impact. this is a company that for the first nine months of the year grew north of 50% with a huge margin, margin north of 60%. so what we think it may have
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less than 1 percentage point impact on the top line and maybe on the bottom line. we think the impact will be deminms. from pr standpoint it is different. it is clearly not a great thing. it is clearly negative. >> my question is, are they trying to stop the spread of fake news or urban legends or hoaxes per se or are they trying to stop those that get through the pipeline with an ad attached because that seems to validate the fake news or the hoax or whatever it is if it has an ad attached to it. >> if the perpetrators of this are doing it for one thing and that is to make money. if you want to get rid of it and reduce or eliminate incentive you need to cut off the money supply. i agree with what they are doing. they are trying to eliminate the
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opportunity or the ability for the fake news sites to get advertising. i think in doing so they will disincentivise these people from trying to create fake news. it's like shrinkage in supermarket. you are always going to have a little bit of it. the question is, is it 2% or a fraction of 1%. we are hoping that it is the latter. >> is it just facebook or google, youtube face the same issues going forward? >> absolutely this is not a facebook only issue. this is an internet issue. anytime you have the opportunity to make money in an opaque environment because the advertisers don't know where the ads are going you will have this opportunity of taking advantage of the system. we have seen it in the early days with frankly sites and
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facebook and google has done a good job of eradicating that. >> good to see you again. thank you. >> thanks. >> time for a cnbc news update with sue herera. >> here is what is happening. speaking at the u.n. climate conference in morocco french president hollande urging u.s. to respect the paris agreement. scientists say oil and other fossil fuels are biggest contributors to man made warming. donald trump called global warming a hoax. one person shot at will rogers airport in oklahoma city. the local affiliate says the shooting took place outside in a parking garage. one person was transported from the scene to a nearby hospital in emergency condition. all air traffic at that airport has been suspended. jet blue launched a 48 hour flash sale with air fares under $100 round trip on many routes
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good for travel through march 9 and does not include free checked baggage. a philadelphia-based organization is raising money to help restore the grave stone of men juman franklin after a significant crack appeared organizers say the crack was caused by years of people tossing pennies as a tribute to his quote a penny saved is a penny earned quotation. that is the news update this hour. back to you guys. >> how many pennies. >> millions and millions of pennies. >> they are not trying to repair the liberty bell. why repair the head stone? >> i think they are trying to avoid further deterioration because it is next to the liberty bell, one of the most visited sites in downtown philadelphia. >> i want someone to write "franklin" the musical. he has to have it coming. the autobiography is so good. >> it's great. >> still haven't seen "hamilton"
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yet. >> i'm going tomorrow night. funny you should mention. >> you could have taken a couple of dates with you. >> true. >> maybe cindy and me and kelly. think of how popular you would be. >> i'll let you know how it was. >> thanks. see you later. >> you got it. where are we? 27 minutes left in the trading session. the dow holding steady with a gain of 30 points putting it in record territory. a leading trader will tell us what he is watching into the close. united ceo speaks about his company's new basic economy fares and whether he thinks customers will buy into the tight baggage and seat restrictions. stay with us.
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welcome back a leap in crude oil rising on erenewed hopes to
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cut production. among the gainers look at murphy oil, hess and chevron up today. >> with about 24 minutes left in the trading session we have the dow up 29 points still in record territory. i'm joined by matt chezlock. an impressive rally since the election. it started before the election. we had the gain the day before but we are seeing a market that is trying to figure out who the winners and losers are going to be. >> the first part of the rally was probably due to non-trump win and people were confused about what would happen after the fact. now you see the tremendous rally. it caught people by surprise. shorts got squeezed and that was immediate push. you are seeing certain sectors rally. today we are seeing oil rally. it had been financials, bio techs, infrastructure. now we are seeing other sectors see the rotation. >> you and i joked a lot.
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you had been skeptical of the rise for the most part. >> is this for real here? >> we are talking about santa claus rally and retail numbers were really good meaning the economy is really good. this probably is a short term blip because he is probably going to overpromise and under deliver in the long term. o that is the question is who he puts into place to enact all of these new ideas that they have. so the rally i'm not going to say is going to stall. it should pull back a little bit. this was too far too fast certainly on what expectations were. >> very good. thanks. >> thank you, guys. let's get to the nasdaq. it's leading major averages and bertha coombs has more. >> last sessions about bio techs. it is all about big cap tech with bio tech taking a rest here. big cap tech up for the second
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time in the last five sessions. apple up for the second time in five sessions. take a look at amazon, facebook, google all of them finally breaking a four session losing streak. amazon providing the biggest point impact. that said, let's not ignore the small caps, the russell 2,000 on pace for ninth straight day of gains. that is the longest winning streak for the small cap index since the first quarter of 2013 and today we're also seeing a big boost for airlines overall. airlines are up with warren buffett's berkshire hath away taking stake. jet blue going along for the ride. sky west impact with a 52-week high. >> bertha, thank you. we'll keep an eye. 20 minutes to go into the close and a dow that is positive by 37 points. the s&p 11 points shy. president obama has opened up cuba to businesses here in
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the u.s. and the host of cnbc's "the profit" has visited the island nation now for a special edition of his show to learn how cubans are experiencing their first taste of freedom as entrepreneurs. and tim draper who once advocated to california to be broken up into six separate states with the election of donald trump as president we'll see if he is signing with those who believe california should secede from the union. stay with us. ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. (bing)
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the dow up 45 points less than 100 points now from 19,000. >> and s&p 2,190 isn't as catchy. >> if you gave up a dentist salary to run a bakery most people would laugh apparently. >> marcus recently travelled to one country where you wouldn't be laughed at for that career move part of a new documentary called "the profit in cuba". >> what did you do before this? >> dentist. >> and you are selling sugar?
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>> yes. >> how much did that pay? >> they pay me 1,000 pesos. >> that's about $50 a month for a dentist. >> and you make more money selling donuts? >> yes. >> in one day? >> not in one day. >> pretty close. >> is it difficult to talk with the cameras because you worry about people seeing you? >> yep. >> tony and sandra are clearly doing well. >> marcus joins us now to talk more about this fascinating -- what you found there is there is a tendency, a desire to be entrepreneurs but there is also the fear of what the government may do with it or their peers out there. >> before we get into that i want to know why you didn't invite me down there. i have all of this cuban food
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friday and you said you didn't want the food. >> you couldn't have made it down here. you had 45 minutes. >> borrowed trump's helicopter. >> i think you have your own helicopter. you could have brought that down. >> the experience in cuba was eye opening to say the least to find out there are dentists, lawyers, engineers, doctors leaving their trade to just find a job where they can make a reasonable amount of money, $25, $30 a week or a month didn't cut it for them. >> but what is the risk for them? is it basically if anybody waupts to-do this have a bakery, can they? or are these people running a big risk? >> there is a list that the government provides of 201 businesses that you can get into. you can be a palm tree trimmer or a restauranture. everyone of those things has rules around them. if you want to open up a
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restaurant you can have 50 seats. a lot of people thought i was going down to invest in small businesses there. there is no way. it is way more oppressive than anybody would believe. i felt like my communication was being monitored. i felt like they were very careful to say only things that they felt would not get them in trouble. it's a tough place. >> i was going to ask you about that and what surprised you most. we have this i guess romantic notion that once you lift the embargo that the sun starts to shine over there and they will be able to embrace our way of life. we are years away from that. >> when you hear about american companies seeing an opportunity to invest their dollars in a foreign country like cuba we think marriott or american airlines that will be a big boom for them. the infrastructure is so poor that it would take decades to build up the infrastructure. so if you are a company that specializes in technology
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infrastructure or any sort of other infrastructure your opportunity to monetize cuba is there far before marriott hotel. >> there is a lot of people trying to go to cuba and see it now. based on your experience speaking with these people, what is happening from all those new dollars that are going into the economy? is it fundamentally helping people? >> it probably not the as much as people would think. obviously, the hotels that people stay at are profiting. those are owned by the government. most stores you would want to shop in that maybe you could shop in are owned by the government. you want to buy milk you buy it from the government. it is really controlled. what is most for tropical storming and i don't want to keep you too long is i really believe that the cuban government opened up this entrepreneurial spirit not to create entrepreneurship but to get people off their payroll. they essentially were providing wages and infrastructure, education, health insurance for these people. they were able to change their
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cash flow and get them off the payroll, allow them to open up a business and collect tax for them. a real big swing in terms of cash flow for the country. >> whether it means more liberalization is yet to be determined. >> no matter what people believe exists in this country today whether they like what is happening or don't like what is happening it is a hell of a lot better than other places. >> see you later. >> you can see more on the bakers that were featured there and their push to succeed along with other entrepreneurs at 10:00 p.m. eastern and pacific the profit in cuba tonight. >> 12 minutes to go into the close. dow up 39. nasdaq up 63. up next a veteran technician it says here choose on new future of fang stocks. i apologize.
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later than its ever been. the dow up 32 points. nasdaq has the better gain percentage wise. joining us on the floor of the new york stock exchange what do you think of this market and
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what it has done here especially who the leaders have been. >> so big rotation i think the interesting thing from our standpoint is we get 28 highs. they haven't expanded to the point to classify it as a new phase. you have winners and losers. tech until today was a relative loser. staples getting creamed. >> a lot of people are wondering when do we get overbought. does that fit in? >> as long as it is expanding won't market. when wu hit 20-day highs while they are okay they are not at 4r5i% that say this is a whole new ball game we have a new trend in place. this is rotational in nature. i don't think it matters between now and the end of the year. as we look into 2017 we haven't seen the expansion i think we are in the same funk that we have been and it will be more
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rotational nature. i am hopeful that between now and christmas surge because that sets the stage for a pretty good 2017. >> art cashin wrote i never seen this before and said it never happened before yesterday on new york stock exchange we had 300 stocks that hit 52-week highs and had 300 stocks that hit 52-week lows at the same time. how crazy is that? >> that is the polarization that we are talking about. bull markets tend to have money coming in. staples are still going up just not as fast as industrials or tech or something else. that's a point of contention for us. between now and the end of the year i'm not worried about that. that will set up for 2017. >> the market is as polarized as the country is. >> red and green versus red and blue. >> so does trading action help change any of that? the fact that the nasdaq caught up and winners are taking a pause does that make for a
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healthier market? >> no. >> healthier is everything going up? >> if it is 90% day where you get 90% advancing i feel good about that. >> is that new money coming into the market that drives that behavior? >> it is a new mindset that says it's risk on versus risk off. the only thing we are seeing which i think is important is small caps have really taken the lead versus large caps. that was not happening. you were seeing elements. it hasn't expanded to the thresholds that we find to be most important historically. >> we are still stuck in the range. don't blame the weather guy. we just notice how hot it's not. >> renaissance. we will take a quick break and come back with the closing count down. >> united airlines ready to break new ground and possibly anger flyers with a new plan. we'll talk to oscar munoz about
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we're talking about this seven-day consecutive gains for the dow cht let's go back to a week ago yesterday, the day before the election. there it is with the dow if somebody will move i can see up about 5%. nasdaq was doing just the opposite until today. so let's see what that chart looks like. there you go. hop skip and a jump. >> the weird world that we are in today. all of the stuff that has lagged has rallied today. energy stocks, bring up oil. >> after i show you the ten year which we saw this rise in yields after the election. it's tempered now. we got to 230 at one time. now we are at 223. >> all of a sudden what has been lagging, telecom, utilities they started rallying today and have been held back. you mentioned a moment ago the
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nasdaq. tech stocks had been lagging. they started rallying. the rally has been broadening out and big leadership took a back stage. >> wti impressive rally today but it was just relentless going south here as we kept hearing about a lack of a deal with opec. >> what a con game this is. $42. that is why energy has lagged. angie is another group that has become moved up. you have energy lagging up today, tech, interest rates up today. the market rally is broadening out now to those stocks that had been, those sectors that had been lagging. much more impressive than the dow would indicate three to one advancing to declining stocks. that's a broadening rally. >> thanks a lot. see you later. >> the dow is going out with a
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50-point gain seven days in a row. a fourth day of record closing highs. this time everybody participated. hour number two of "closing bell." we have the ceo of united continental on with new seat pricing to hear about with kelly evans and company coming up right now. see you tomorrow, kell. thank you, bill. welcome to "closing bell." i'm kelly evans. again, we are finishing at record highs with the dow jones closing 18,923. it's 54-point gain good enough for another high close. puts up above 18,900 for blue chips with a gain of a quarter of a percentage point pretty much out there of the highs. the s&p 500 ten points away from the closing high. it had a much larger rally up three quarters of one percent or
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16 points. the nasdaq led the way after lagging for so much of the recent run. it's up 1.1% or 57 points to 5,2 5,275. shares of united continental popping after warren buffett revealed he is a major buyer of airline stocks. coming up we will talk to united chief executive oscar munoz and his exclusive interview about that and new fare options announced at today's investor meeting. joining me on the panel pro columnist michael santoli along with susan ox. steve grasso joining us as soon as he is done on the close. mike, the story of the day was supposed to be the nasdaq. now the dow is at a record high. >> i think the guys were just talking about bill and bob you had areas of the market that really got super stretched.
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everyone rushed to price in certain policy assumptions. i think he did see moderation there and didn't see small caps and winning huge. i also was i think it is positive to see the emerging markets up 2% today. that was down 7.5% or so, 8% in the prior week. i don't think you want to see the u.s. market prosper to the exclusion of other things. i think it is a healthier market but we are not just trying to guess about policy impact and we are talking about is the consumer in good shape. >> and how about the retail sales number? the monthly was up 0.8. the core was up 0.6. grocery was solid. department stores were weak. consumer overall message was good. >> to what mike is saying i think there is uncertainty. people are guessing. there is a lot of speculation
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about what is going to happen with the market. i think the banks are totally overblown. christmas has come early to the financial sector. take a breath. >> credit swuisse said we basically see 30% upside to the earnings forecast. people are talking about four to five percentage points on higher return. >> it's not going to happen. people think instantly he will walk into office and dodd-frank will disappear. not even in the first 100 days will they make efforts to look at that. there are other priorities. >> we are barney frank on yesterday he said this is one thing that came out as a top priority. is it you think the machinery of trying to do that in. >> it is a lot more complicated than they are realizing. what everybody can agree on is that community banks need
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regulatory relief. everything else they are talking about doing is a political hot button. there are conservative republicans who it would be untenable to pull back even if people don't know what it means they understand banks gambling with your deposits. i don't think this is the big win that everybody thinks it is. >> i think you can have a middle ground by saying the yield curve doing what it has done. it didn't widen out more today but stayed where it was. >> that's not an 11% rise. >> when you're trading at 80% of book value what is the hurdle? >> very low. that's the argument. they're running very high. you have four billion dollars coming to the financial sector you have to go back months to get to 2 billion. in other words, everyone bought on to the trade really fast. >> steve grasso joins us here at the close. the banks what would you do
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here? >> i am on the same side as you. the banks prior to the financial collapse xlf was 30 and change. so i have said this on the fast money show. if you believe that we're going back to a deregulatory environment are we moving everything off? is all regulation leaving? no. which is going to stay? how much is going to leave? is it a percentage basis or not we are not going to 30 to 1 leverage again. so then the xlf is not going back to $31. does it have room to appreciate further? yes. it caught everyone offsides. that is what you are seeing in the market place. >> we are seeing banks broadly. asset managers people saying departure of mary jo white would be a death nail for leverage rules. so really interesting effects start to happen once you get people moving in and out.
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that is another area where people have been highly cautious of what the political environment will be. >> the news came out as if it was a big surprise. she was going to step down at the end of the obama administration. who they put in place and names kicking around while running the transition he is a conservative member of deregulatory mindset. i think you can start to see asset managers back there. >> i think what would really help the asset managers is in flows into equity funds and active management having more to do. in the very early days of the last week and beyond that before the election you did see pockets of the market operate differently. it wasn't all about going up or down. that is probably net positive. that is a long way to go before you convince the masses that the old days are back. >> nice mental image of the big blob. bill miller from ll ml lc was on squawk with his take on
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the next great rotation. >> i think that the greater rotation is out of utilities, bond proxys, consumer staples. that's where i think the greater danger is. google is 18 times next year's earnings. so that is certainly not demanding in this kind of environment. and facebook despite the slow down in facebook you are still coming to the low 20s. so the consumer staples are tearing those multiples and grow 3% to 5%. >> so to his point there the market is already making these moves. we might call this mini rotation taking place. >> those numbers are right in terms of the value at parody. but i don't think you have a lot of people sitting there day to day saying is it going to be alphabet or proctor & gamble? i think proctor & gamble replace income you weren't getting from
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bonds. that trade can stop working before you get to the point of saying i'm going to jump into alphabet and facebook. i think it is about what were the trades? i think both of those were crowded trades. >> we were in a completely different environment. everyone was searching for a yield. now that pricing in the s&p like a growth stock. it doesn't matter. you don't have to show them anything. he was the unknown candidate. now he is delivering rainbows and sunshine from above. i think everything happened a little too fast. there will be a time -- >> that's what markets do. >> there will be a time to buy utilities and staples once again. this is a one-day event. i think you have to believe that that rotation from basically out of tech and into financials is over. i don't think that is over. >> this may be a tough question. if you are a manager do you change? if you are in consumer staples
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what did last several years mean? what happens if this is kind of starting to take place? >> i don't know that you would. you had kind of the wind fall. i don't know gnat if you haven't done mma to now is it all of a sudden rich currency and try to do something or maybe you don't stress dividend increase as much. we were kind of like the cool kid for a while and maybe it is not going to be that way. >> maybe it is caterpillar. >> tech stocks are our future. that's the growth and where we are going broadly as a society. >> what do you think about the idea that donald trump white house is just less friendly, less supportive, less open to innovation? >> i think it is possible. when he gets in there and he starts to realize the realities of our economy and not just what he throws out on the campaign trail i think it will be different. i expect to see once people see where threats shake out we'll see where it happens.
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tech people tend to be more liberal and supporting hillary clinton and more vocal about the support of hillary clinton. on the trail he was lashing out against them. i'm hopeful he will do the right thing and start to move in the right direction. we'll see. >> he is always on twitter. he clearly loves that communication platform. we have a news alert on snap chat. julia boorstin tell us about this filing for ipo. >> that's right. snap chat's parent company snap inc. filing for ipo according to dow jones saying the company filed papers before the presidential election and that an ipo could take place as early as march. the dow jones citing sources saying stock can proceed with ipo. the valuation has been also estimated at around $30 billion. a lot of questions here but we are expecting to see an ipo from snat chat in the first and second quarter of next year. >> thank you.
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let's bring in max wolf who is a market strategist at 55 capital. would you buy shares of the ipo? >> snap chat is one of the darlings of what may be a fading universe of unicorns and want to get out there before comps and public market get hit too hard. there was pressure before the election and the reset you were just commenting. i think the notion is they are a leader of the pack and want to get out when the promise of the future is part of what they are valued on because obviously they don't want to be valued on today's cash because that would be hard to get near the 25 to 30 range that they are seeking. >> so 20 to $25 billion is what dow jones is reporting for value of the firm which is hefty if you put it up against fortune 500. how does that compare, max, with where they have raised money with the latest valuations? >> it's a great question. they clearly have been very successful and growing at
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astronomical rate. just over half check in every day. they are starting to push more and more. we tend to see them as an augmented reality company maybe first to get to a million dollars. i think people think of them more of photo sharing. i think augmented and virtual reality enhancements and trafficking such a huge amount of fan base is very hot. on the other hand they are looking for probably somewhere on the order of 20 times next year's top line revenue. there aren't many companies trading in that particular thin air. >> have you bought some of the goggles i et? >> it doesn't look like an infrastructure play or on the yield curve. i think you're trying to -- >> so i think that there is a good reason why they want to get out there and do it right now because they don't know what the unknown is. it is unknown for a reason. >> the things to look at and fix
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ate on when it is coming public is how ridged they have to be on targeted valuation. they raise money privately six months ago. are they going to say 25 or above? you don't want toput your employees under water. i think it starts the question of is there growth coming from someone else? is there enough to go around for alphabet, facebook, snap chat or whatever twitter has. >> what would you say about that in. >> i think the growth story here is very much in place. the valuation story remains an enormous question mark and huge caution is required. they are going to be to 300 to 400 growth and just turning on half of the monetization profitability. you are deep into high triple digit on the growth unless they fall off a cliff here. i think the growth story is great. i think the ultimate valuation absolute numbers are a lot less convincing mere.
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>> thanks for joining us. >> my pleasure. >> steve, we'll let you go. >> i guess it all depends when it comes to snap inc. >> i would think these are the companies that are going to lead us forward, tech companies are always out there. they are leading the market forward. but it's all about environment and what the environment is right now. >> and the price. thank you for joining us. much more coming up on fast money next hour. julian emanual will explain what he thinks the street is missing. united airlines announcing a new seat but passengers won't be able to bring on a full size carry on bag. whether the change can help compete with low cost rivals. some warn california to cede
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from the union. tim draper who once championed splitting up california into six states weighs in next. you're watching cnbc, first in business worldwide. they say the world does not revolve around you. but today, maybe it can. i am helping 1-800-flowers find the perfect gift out of trillions of combinations. and working with the new york genome center to find treatments as personal as dna. and i am helping sesame street make education unique to every child. hello, my name is watson. working together, we can outthink anything.
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the election of donald trump as president has given new life for calls for california to secede from the union. tim draper has been promoting the idea of dividing the state into six separate areas. the founding partner of draper associates joins us to tell us now. since we just got this news about snap chat first whether you think they will be able to raise money at the rumored valuation here? >> they have a lot of users. i'm sure there are a lot of enthusiastic users who want to invest in snap chat. >> no matter what the price? >> well, no. >> okay. yet to be determined what that price will be. in the meantime, california seceding from the union, is this
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just a way of expressing discontent about what happened tuesday? >> i'm not in favor of this. i believed in six californias because i believed there could be more competition amongst governments for us. geographic borders continue to fall around the world because of social media and challenges and people are seeing that some governments are better than others and are saying maybe i want to be a part of that government. so i think competition amongst governments is terrific. competition for us for the people and the businesses and the capital of the world i think this is a great time. i doept think it is a good idea to secede. i don't think brexit worked out well for britain. i think it's a knee jerk reaction to people who are unhappy with the outcome of the election and i think they
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will -- i think it will subside. but i think this is an interesting time. it's a great opportunity i think now. we have a reboot in the government and it's a great opportunity to get behind our government, get behind our president and see how it goes. i didn't really support either candidate this time. i feel like we have a president. he is going to do the best he can. let's see what we can do. it's a great opportunity. >> tim, it's susan ox. i think there could be a great opportunity but you have to acknowledge there are a lot of people in the country who are very scared and scared for their physical safety. >> i think change scares people. >> it's not just change. i have heard reports of people in new york city who have been
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harassed and threatened. i think the fear of the erosion of our social values is very real and is a very visceral fear. when we talk about let's move together and get behind the president and grow the economy i think there needs to be the communication from our leaders that we all need to come together and put their money where their mouth is. i think the idea of competition among government could fracture us further. >> no. i think competition among states is a good thing. i don't think it fractures us at all. i think governments need to perform. right now i think our state in california is providing bad service at a high cost and i think our federal government is providing bad service at a high cost. i think this is an opportunity. i think it is absolutely true that -- and i totally understand that people feel disenfranchised
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and didn't vote for half of the population. we have a new leader and i think we should support him. i think it is a great time to potentially really change things in the ways that you want to change things. i think you have a big opportunity now. and i think it's in all of our best interests to sort of get behind them and let's go. and i think it is going to be great. i think we have change is always scary and there are always people that get twisted up and do and apparently they are doing stupid things. i think after this initial shock is over for people i think they are going to say let's see what we can do. let's see how we work under this and let's see what our new administration does. i think this -- i'm really positive about change because i feel like we were getting stagnated.
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>> i was going to give you a hard time because you defended them so much when we spoke. after that message i decided to move on with bringing people together. look for better investment opportunities seriously. >> elizabeth homes is a great example of maybe why the women are so frustrated. she is a woman entrepreneur who built a fabulous company, did great things for consumers and she got attacked. >> you don't think she is the victim in all of this? >> absolutely. she has been totally attacked. the media is included in the attacks. >> if you sell a false promise of your what business is all about. >> nothing false about it. >> fingerprint blood test. >> her competition came and picked at her and she never responded in the press. so the press looked at that and thought she was doing something wrong. this is a great entrepreneur who wants to change health care as
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we know it. the wall street journal rr the same guy 45 times. he has an ax to grind. >> he was the first person to report. >> it's a great company. by the way, that technology will happen whether it is somebody else. people don't want vampires taking gallons of their blood every time they get tested. there is a great opportunity to do a finger prick blood test. i think it is fabulous what she has done. this is a great time -- hello to wyatt. hang in there, wyatt. that's a little shout out to a baby who is five pounds and he just got out of the hospital. >> we all say hang in there wyatt. thank you, tim, for joining us. silicon valley for the most part threw support behind hillary clinton. could president-elect donald trump's tech plan be better for
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tech investors? don't miss interview with oscar munoz ahead on "closing bell." ♪ ♪ is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. (bing)
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tax reform appears to be at the top of president-elect donald trump's agenda. it could have big indications. josh lipton has more out of san francisco. >> that's right. trump favors lowering that corporate tax rate to 15% but
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that might not benefit tech companies as much as some think. analysts at burnstein note the tech sector tax rate averages about 20% and that is lower than the market overall. and it suggests that the boost to earnings from a lower tax rate might be 7% just for context sectors with much higher tax rates like transports could see earnings boosted by 20% or more. but there is also the prospect of a holiday on foreign cash. tech companies with big offshore cash balances include apple, microsoft and cisco. says it could benefit tech stocks from increased stock repurchases. trump's stance on other issues does cause concern among some tech investors. his call for tariffs on good manufactured overseas could mean higher prices for consumers here and potentially lower sales for those companies. on a personal level trump does
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not have a strong relationship with tech. he accused jeff bezos of evading corporate taxes and called for a boycott of apple products after tim cook's company refused to help the fbi unlock a terrorist iphone because of privacy concerns. big tech did enjoy a bounce today but the sector is down some 2% since trump won the presidency. >> it did rebound today. >> it did. i don't really think the sector is trading too much on the tax proposals. these are big growth stocks, not cyclical. i think it is interesting lower tax rates simplified corporate tax code benefits these guys as much as anyone because they have a lot of foreign earnings. i don't think bringing piles of cash over for the biggest tech firms is all that bullish because they don't lack for access to cheap or free cash to buy back stock through acquisitions. if anything the question would be what are you going to do with
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it? >> i guess in the past didn't blip on the national level. >> apple's borrowing $70 billion against overseas cash. time for a cnbcs news update. >> here is what is happening. republicans have renominated paul ryan to be house speaker next year. the house gop picked the wisconsin republican at a closed door meeting earlier today. he must, however, still win formal election when the full house picks its speaker when the new congress convenes and that will be on january 3. the trump apartment complex in new york city is about to drop the president-elect's name. the three rental buildings will be renamed for street address which is the landlord. equity residential owns that and basically runs it. about 600 people signed an online petition urging that company to dump the trump name. greek police clashed with
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leftist supporters. they rur protesting president obama's visit. police blocking marchers from the rkts part of the city where the president was. and mcdonald's is testing a siraucha big mac rr. the company announced it will offer bigger and smaller versions of the big mac. a new twist on the secret sauce. >> back to you. >> love siracha. thats is worth a try. it was an investment that caught wall street by surprise. warren buffett making a big bet on the airlines. a sector he shunned for years. the ceo of united reacts to the investment in the carrier. alpha seems more elusive today. is it because so many go after it the same way?
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welcome back. another record setting day for the dow. it was up 54 points to 18,923. that is your new high water mark for the blue chips. they were weakest performer with that about a quarter percent
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gain. s&p up. nasdaq up 1.1%, a 57 point gain. shares of united airlines were higher. they were nearly 5%. yesterday we told you warren buffett revealed he was buying shares of airline stocks including united that was in the third quarter once the filings came out. united announcing today more fare options for customers by introducing the basic economy offering at its investor day. joining us now in an exclusive closing bell access interview is oscar munoz. welcome, oscar. >> thank you. >> thank you for joining us. quite a day here. we're still a little flabbergasted by warren buffett's investment into the airline. we'll get there in just one moment. could you please tell us how the new fares will work. what are you no longer allowing for your basing fare customers? >> what we are allowing is the
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concept of options. there is a degree of customers that want that price sensitive area and we are offering that price but we are also offering price points above it. it's in essence what we have today but with an option for lower price. >> is it the first time you have done something where seats are no longer assigned where people just first come first serve? >> it's not first come first serve necessarily but an evolution on the industry. other people have been doing this for some time. so we are just slowly catching up to the process. yes. there will be unassigned seats. >> why is it economical for united to go this route? is it because you are trying to fend off the discount competi r competitors or because the cost and time of getting those carry on bags on the flight all the time is too much? what are the economics of it? >> it's a combination of all of those above.
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we had an investor today who flew here from los angeles with $110 round trip fare. that is not a sustainable fare. we want to offer not only that fare but that particular customer would have paid more to get a seat assignment or a bag assigned and those concepts. the way we make money is that ability to upgrade. >> i will bring a panel in here. have you heard from warren buffett directly? has there been contact since the announcement about are you just surprised yourself to hear he is involved? >> well, listen, all of our conversations with investors are welcoming confidential. there is two or three different sets of values that it creates. by his investment it gives us the gold good house keeping seal of approval for the industry and for our company t. provides what i call an anchor tenant in this
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industry and stock. somebody of that quality really provides us a lot of support. it is a testament to the hard work of not only this industry but 86,000 people that are really driving the new spirit to create a better service product for you as a customer. >> michael santoli here. today you laid out series of plans that you say will get you to $4.8 billion is it by 2020 of net income enhancements so basically enhanced profits. exactly how much of a stretch going is that? i know there are several components of what you are planning to do. is this stuff you feel is pretty much easy enough to do just by basic execution or is it a stretch? >> i smiled and laugh because just a year ago the concept of aggressive, the concept of trying to achieve an objective that was difficult was not something we were talking about at united. it was more of what is wrong. we have evolved that to kind of
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an exciting what is next. as we lay out the numbers it's a highly accountable set of numbers to a highly group that will hold us highly accountable for those, as well. we have a great deal of support for those numbers and more importantly we have action plans and initiatives and importantly a leadership team that i think has great trust and great believability in achieving those kinds of numbers. >> it's susan ox. how are you thinking about the new administration, donald trump coming in? there is potentially a lot of investment in infrastructure which would essentially help you. on the other hand there has been this divisiveness in the country and i'm sure people are feeling -- how are you feeling about the next four years? >> well, with regards to the divisiveness on the day of the election sort of suggesting to our family inside united that the people we work around will always work around and i think it is important to move forward
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together. with regards to the administration all the different topics that have been discussed during the campaign we are waiting and seeing. we are very focussed on running a great airline but at the same time we will be monitoring and closely watching what the new administration might or might not do. >> you would push i would imagine a boon for the airlines. he might push back. is that a priority for you guys? >> i'm sorry, i didn't hear that last part. >> president trump when he takes office would push back against some of the middle eastern airlines that are trying to make further inroads here. >> that is one hot topic for us as an airline industry. we provided our documents, proof points and facts as we know them to the transition team and hoping they will review that and act koorthly. >> it has been a busy day and crazy week. we appreciate you joining us this afternoon. >> that's oscar munoz, ceo of
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united airlines. president obama has been mapping the brain. he has made mapping the brain to solve alzheimer's two of his top science initiatives. the director of the national institute of health weighs in on what he thinks the future of scientific research will look like under president donald trump. first climbing higher by more than 46%. the chief executive of the state of oil company petrobras joins us with how he is turning the company around from a scandal ridden to a success story. when it comes to healthcare,
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right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. donald trump's election has impacted financial markets world wide and impacted currencies especially in latin america. the trump presidency has been the talk of a major conference. we have an exclusive interview with the ceo of petrobras. >> he is sitting right next to me. good to have you here. >> thank you very much. >> kelly was talking about the hit in the wake of the announcement that the donald trump would be the next president. dollars soared and that means almost all currencies fell. what is the reaction within the
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brazilian business community? were you as shocked as we were? >> it is too early to assess the impacts that we are going to see in the world. i see that for brazil the impact will be much more indirect impact to the change in the world because we don't have that close relationship in trade and so on with the u.s. but in the case with brazil we know the central bank we have a huge line of reserves and the central bank is very competent. i think they will manage not to have very high volatility in this market. it's initial reaction where it is still to see what will happen next. >> we were talking about whether or not petrobras was going to survive. the stock is up 132% year to date. if you bought it five years ago you are still down 63%. what are you doing to right this ship at this point?
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>> i think that we need what we need to do is what we are telling we are going to do. to build it again it takes time. so we announced recently a new strategic plan. ri it's very solid and transparent and focussed. it is important that we deliver because then we are going to see the impact in the result and share price. >> reducing debt and expenses. kelly has a question for you. >> exactly on that vein. hi. so your debt load is tremendous. how can your company pay it off? >> i mean, i think that what is really good in the case of petrobras is the fact that we have good assets.
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they are very good probably one of the better of oil and gasoline. high productivity. the issue is more to organize the company and the working in which we are going to reduce our debt to half of what it is today and then i think that we will see a much better company and the investors i'm sure will like it very much. >> can you give investors world wide confidence that the corruption scandal is in the past now? >> you know what's very important to consider that the company hasn't put a lot of measures to improve exactly to prevent this kind of problems we had in the past does not happen again. it's very important to consider although petrobras was a victim it is different because you
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don't see that petrobras has benefitted by any means on this kind of corruption scandal. you will see that the more number of executives that benefitted, companies benefitted outside, politicians but not the company itself. it is completely different. petrobras were victims. >> what about the country itself? with this investigation and so many people going to jail, has brazil entered a new better period with less corruption? >> i think so because it's very important to understand that enforcement is key in insuring that we do not see a gain in corruption at these levels, of course. but what i see is that people want to do this kind of stuff, they now know they can be
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caught. that's a huge difference. in the past they assumed they would not be caught. and you see all the relationships between a number of different people not only the company but outside of the company, as well. you see that these people they thought they would not be caught and that is different now in brazil. >> huge change. thanks so much for joining us. >> it was a pleasure. thank you. >> kelly, back to you. >> thank you. president-elect donald trump has made the scientific community a little nervous with tough talk on health initiatives. a look at what research in public health projects may look like during his presidency. stay with us.
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welcome back. president-elect donald trump has called the national institute of health terrible. what did you find? >> well, guys, because of comments like that, calling nih, quote, terrible and climate change and about vaccines and autism, a lot of people are calling trump potentially the first, quote, anti science president of the united states. a lot of people refer to tweets like this one, he tweeted out back in august 2014 during the height of the ebola outbreak in west africa, saying, quote, the u.s. cannot allow ebola-infected people back. people must suffer the consequences. so the academic science community is quite nervous. mike milkens runs this conference. we sat down with dr. francis collins and he expressed hope there could be support for science-funding in the u.s. because he said it's a bipartisan issue. >> it's also a great stimulus to our american economy and has
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allowed us to be the leader of the world in this area, which has all kinds of other spinoffs. so it's such a great case to make. i'm not particularly concerned changes in political leadership put this in jeopardy. we all kind of agree. >> he pointed to the fact the nih budget, while it has been squeezed, academic scientists have been growing over the recent years. he and mike milken emphasizing the fact there shouldn't be interruptions. it doesn't happen in long-term projects. and a lot of people are looking to policy position. two things that relate to the drug street and science. informing the fda to put focus on new and medical innovative projects. >> does any of that sound like he's going to shut down science funding? >> that in and of itself -- republican-controlled congress
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is there hostility. >> we have the budget over the last few years under president obama. if you go back even further, and i'm not sure we have the data to show folks, it has been growing steadily. there is support under both republican president's and democratic presidents to support science. so i think a lot of folks are looking at what trump has said in the past and hoping he'll take a different tact in the future. >> and considering the -- trump's priorities to grow the economy, any of that is stimulative could be included as part of his agenda. as long as we get the frame right. >> i think francis collins was seizing on that, where he said this is a stimulus to the economy, really important. it was a message we're hearing from both milken and collins at this conference. this is good for the economy. >> meg, thanks for joining us. meg terrell name retail earnings rev up. we'll give the big names when we come back. isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles...
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welcome back. you can see there the earnings parade this week marches on tomorrow when we get results from lows, target, cisco and l brands. a bunch of interesting names. dick's down 10%. home depot managed to come out with a beat. >> home depot, the stock down 2.5%. the competitor is reporting
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tomorrow. i am watching both of those. and target, as well. all these retailers have the same chart. tremendous dissent from 2005 into this year and this very sharp vertical, partial recovery, but just barely. i do think there is room for the street to be impressed. >> is target that sellitelling? they have so many issues. ahead of the business just left. >> i don't think it's a bellwether, but investor positioning and whether we're going to believe there is going to be a decent thrust. >> and the policies like trump's administration, what are you watching for in those terms, susan? >> i'm certainly still looking at the banks and what's coming out of the administration and particularly what that meejs for the get. everybody feels it's a foregone conclusion we'll have a raise in december. depending on what happens in the next couple weeks, that may start to back slide or we may see different language in december. >> even stanley fisher, speaking today, but kept it confined to
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liquidity conditions. >> and you had other commentary from the boston fed, eric rosengr rosengren, saying it could take a lot for us not to move in december. i think it depends on what happens from there. what happens from there. because i do think a lot of people in the way the bond market is acting maybe you have to okay sell rate something more for next year. >> and he will the early selloff. inflation expectations shooting higher. bond yields, too. is that all priced in now? in other words, if they do something in december and when we hear from yellen, et cetera, is it about communicating the path, any future hikes? >> i think it would be a process. it wouldn't be turning on a dime and saying, oh, bifd, what we were saying about that really shallow tightening process, maybe we're going to have to deepen it all of a sudden. so i do think it's going to have to be a slow process. >> i would also say when we're expecting a big infrastructure plan coming out of this new
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administration, right. once they put a number on that, you know, if it's like $2 trillion or something, i think you're going to see some impact in that in the markets, too. >> the fed certainly would have to take that into regard. if it is true. >> call it stimulus for some reason. >> mike and susan, thank you so much. that does it for us here on "closing bell." "fast money" begins now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. pete najarian, kiran finerman, tonight on "fast," confused about how to invest in trump's world? that man, julian emmanuel, has the best way to do it. plus the penny stocks surging under trump. what they are and why investors are so captivated by them. and currencies have gone wild around the world, creating a boon for a number of stocks. we'll tell you how to cash in, even if you don't trade currencies. first we start with another record close for the dow. the index is within striking distance of that key 19,000 le

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