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tv   Power Lunch  CNBC  November 22, 2016 1:00pm-3:01pm EST

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buying at the 34 strike, i like it. >> what do you got? >> facebook. a favorite of mine, off its -- >> what is the ticker symbol on that one? >> not exactly undiscovered. but it is well off its high. it has such a long runway here. >> good stuff. >> happy thanksgiving, everyone. >> happy thanksgiving. >> another day tomorrow. >> i don't. >> "power" starts right now. >> scott, thank you very much. tyler mathisen here, "power lunch" begins right now. market milestones topping your menu. record falling on wall street, all day long, so what should you do with your money right now? nearly a trillion dollars worth of investment advice coming your way straight ahead. donald trump taking on trade and regulation. but is it putting him at odds with his own party? and the interest of big business? does he care? and is amazon about to break up the bundle by betting big money and they have got big money on live sports? "power lunch" begins right now.
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welcome to "power lunch." i'm sara eisen. it is a record day on wall street with the dow crossing 19,000 for first time ever. the nasdaq and the s&p 500 also hitting record highs in today's session. the s&p now just off of that record high. it just has gone negative, barely. among the biggest dow standouts in today's session, verizon, home depot, walmart and boeing. brian? >> sara, thank you. welcome. here is what else is happening at this hour. we're still in a holding pattern on the filling out of the incoming president's cabinet. this as trump prepares to leave new york for florida tomorrow. good news in housing, home sales jumping in october to a new ten-year high. the question is now what will these higher rates do going forward? and guess what is not going forward? lufthansa flights. the german airline canceling 876
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flights worldwide because pilots have walked off the job. so if you're thinking about spending thanksgiving in, you know, hamburg, good luck. but we are certainly lucky to have your next guest for the next 120 or so minutes, the billion dollar buyer himself, tillman fertitta. >> we're going to talk everything business, gambling, restaurants and college football. >> and trump, of course. >> what? all right, tillman, sit tight. let's get more on this amazing stock rally that sara referred to. dom chu live on the floor. >> what we got now is a market that is pretty much halved its games on the dow now, up by about 27, now 29 points. we were up significantly more earlier on in the session, however, we are seeing some momentum come out right now ahead of the thanksgiving holiday on thursday. some of the big winners, the ones that investors have been taking some profits on over the course of the past few weeks, if you look at the sectors that
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have been driving things ahead for past few weeks, ever since the election, look at financials, no secret there, we have been talking about this for quite some time, a lot of the big banks and insurance companies doing really well since the election. accounting for most of the gains in the s&p 500 in that time. industrials also doing well there. consumer discretionary. the laggards, consumer staples and utilities, though we are seeing a little bit of strength in those sectors today, they have been beaten down quite hard since the election, but with interest rates coming down lower now, below 2.3%, for ten-year yields, those are some of the stocks to watch here. also looking at some of the individual issues doing pretty well, on the dow jones, goldman sachs, jpmorgan chase, american express, on the financial side of things, really helping the power gains for those financial stocks. and caterpillar and united health doing well. for the s&p 500, invidia, you heard josh referring to the chip stocks on fire during "halftime report." invidia is a stock you want to keep an eye on.
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kohl's, free port mcmoran, best buy, advance auto parts, so some big winners. back over to you. >> dom, thank you very much. joining us, jim mcdonald, chief investment strategist at northern trust. got nearly a trillion under management. welcome. the dow is up 9% year to date, not including dividends. the small cap 600 is up 20%. tell our viewers, our listeners, why they shouldn't sell some stocks right now, take some profits, lock it in. >> well, we think that the environment is actually been improving over the last couple of months. it is not just the election bounce that made the environment better, breaking up the legislative logjam will be helpful, but the global economy is actually gaining momentum since august and so we think this momentum will continue into next year. as long as rates don't jump too high, which we don't think they will, we think the rally can continue through 2017. >> tillman, i'm curious your take on the trump rally and
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whether you see it as justified. >> i think it is 100% justified because he's very pro business. and he's going to deregulate regulations in energy, eoc, nrob, the labor department. it is going to be an easier environment to hire people, to keep people. it is a friendly work environment today. now, i'm not saying he's not going to make some other mistakes, but from a business standpoint, we're definitely in the right area. >> deregulation has helped the banks. is that one secretarier t one s benefit from that theme? >> we're overweight the financials. i don't want to overestimate how much the rise in interest rates have helped banks. financials are one of our favorite sectors. >> so, jim, what was going on back there in late october and early november when we had 10 or 11 straight days of down action
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in the market, supposedly in anticipation of a trump administration, as his stock was rising in the polls a little bit, after the comey letter, and investment, guys, i'm not saying you were among them, but a lot of people were saying, the market is going down because they're trying to figure in what a trump administration would mean. and then, now, we go up, up and away. what was going on there? how did people get it so wrong? >> so my best guest is there was too much of a focus just on the presidential candidate, and not on the entire legislative team that will be and the fact there is a sweep means we can't break this legislative logjam. so i think that's the biggest reason that people may have been a little bit offsides and now that things are a little more clearer, the ability to analyze economic growth going forward, which we think the risk under the new administration in congress is relatively low is what is driving risk taking.
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and sentiment has been re relatively cautious. >> jim, thanks. appreciate you being with us. we got a news alert in the bond market, five year notes up for auction. santelli is covering it at the cme. >> yes, 34 billion five-year notes hit the street in a dutch auction. the yield at that auction by the way, the highest yield in a dutch auction since december of 2015 is 1.76. it was about right with the one issue market arguably, maybe a few -- a little higher all things considered. looked like 175 1/2, 175 was trading. 244 bid to cover. 59.8 indirects, below 61% ten auction average and 4.5 less than 7% on the directs, which was a ten auction average. 35.7% of this one going to primary dealers, c minus,
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charlie minus, you know, basically all average, but some of the key metrics, below average, tomorrow, seven year, 88 billion in supply, and no wonder in front of a holiday weekend with rates moving higher that investors aren't necessarily stepping up to the plate. sara, tyler and the gang, back to you. >> donald trump taking on trade in that video that his transition team posted on youtube last night. watch. >> on trade, i am going to issue a notification of intent to withdraw from the trans pacific partnership, a potential disaster for our country. instead, we will negotiate fair bilateral trade deals that bring jobs and industry back on to american shores. >> we need to get reaction now from cnbc's senior contributor larry kudlow. good to see you. >> thank you, appreciate it. >> so we have been talking about trade for a while with you. i think you've been urging the trump team to back away from the
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tough talk on tariffs. nobody expected the tpp to pass, both parties against it, but the concern would be for multinationals and for other countries that this is a signal that he is going to go there. what is going on? >> well, hang on a second. he's not talking tariffs. they're happy about that, i might add. he's talking about renegotiating and talking about pulling out of the tpp, a flawed, whatever it is called, pacific trade, a very flawed document. i don't think it would have passed no matter who is elected. here is the distinction. think of it this way. i think this is what mr. trump is getting at. global free enterprise trade is a good idea. but global government run and regulated international boards, not american representation, is a bad idea. and that's the biggest problem with this pacific trade deal. it is run by a bunch of globalists, international boards, kind of like the world
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court or something, the u.n., that can impose regulations and laws and so forth on american people. that's all wrong. so there is a big difference there between government run and between private enterprise run. between international organizations run or between private enterprise run. and mr. trump intends to renegotiate. i'm fine with that, frankly. >> it doesn't violate your free trade rules? you are known as a free trader, larry. you're profiled in the wall street journal piece about the two different sides of donald trump's economic team, one pushing for tougher talk and tariffs and then you on the other hand, this goes against what a lot of what you've said. >> didn't i just answer that? >> no, but i think a lot of people see this as a signal. >> no, no. let's rewind the tape. what i said was, he's not talking about tariffs. that's good. he is talking about renegotiating deals. that's also good. my point is, any of these trade
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deals should be in the interest of the united states governance. i don't want international boards to run trade deals. because they make decisions that are enimical. i just want to clear this up. the prior question missed the whole point i'm making here. tariffs, i don't like. renegotiating and giving american governance over its own trade, i do like. i can't be any clearer. in other words, i'm a happy camper as a free trader because i'm not hearing tariffs, i'm hearing renegotiation. this is good. >> i remember hubert humphrey called the happy warrior. you're the happy warrior of the right, larry, i must say. one of the problems with the tpp as far as i'm concerned is nobody knows what the hell is in it. it is secret. >> that's true. >> you're very fair. that goes to my other point. if you talk to people who know a
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lot about this. my pal david mal pass is doing transition would, there is all kinds of boards and votes that do not represent america. this is like the u.n. of international trade or world court of international trade. we must decide what is in our own interests. now, that doesn't mean trump is against trade. if he was talking about immediate 35% tariffs here and 40%, i would be very upset. that's been my position from day one. if he's talking about negotiating better deals, i'm fine with that because, look, my favorite is the chinese, who lie, cheat and steal on everything they do, they steal our property rights, hack into our security, they counterfeit our goods, they're violating all kinds of things. we have to stand up and do that. but that's different than protectionist tariffs. i like trump on this. >> to your point, about 5500 pages long. even the people who wrote it aren't necessarily sure what's in it. if tillman served up a dish at
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one of his 500 plus restaurants and the waiter said, i'm not really sure what's in it, but it is a lot of good stuff, your customers aren't going to eat it. you're from galveston, you're from a heavy trade shipping area, most of it oil and gas, but still, what is your view on trade? >> you live in houston. that's a trade-based city. >> huh stwhat trump wants to dot a separate deal with every country, which is probably the right thing to do. you can't go take a dozen countries and say, okay this is going to be all secret, and this is the way we're going to do it. when every country has something else to offer. so i think what he wants to do is say, we're going to take you one by one and knock you out. okay. now, would the chinese love for us to pull out -- >> they already said they want to step in and do some sort of regional deal with other members. >> but -- >> let me just -- this is very important point. i would love to see mr. trump
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who is in favor of brexit, okay, i would love to see him begin to negotiate a large substantial free trade agreement with our cousins from britain. i think that would be a fabulous signal that he is in favor of trade, as long as that trade helps both countries equally. that would be a great signal. so you have a positive move and then you might have to have some punitive moves. but we have to stand up for our interests. i always argued that and i think that's the direction trump is going, because, again, i'm not hearing 35 to 40% tariffs and that's good. >> larry, got to leave it there, thank you very much. donald trump meets the press. more on his big media tour straight ahead. and speaking of donald trump, is there anything else to speak about? will he make twitter great again? we'll debate that. later, the latest fitness fad that got our goat. don't go anywhere. "power lunch" will be right back.
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we'll listen. we'll talk. we'll plan. baird.
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welcome back to "power lunch." a live picture at the lobby of trump tower in new york. guess who's not there? donald trump. he's a few blocks away meeting with journalists from the new york times. big story today. eamon javers is live outside of trump tow we are ter with the l.
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the meeting is back on? >> yeah, that's right. we had a flurry of tweets this morning back and forth between donald trump and the new york times over whether this meeting was even going to happen today. in the end, zondonald trump lef trump tower, look at the iphone video i shot of the motorcade departing the building here. you see he's getting the full presidential treatment as president-elect, multicar motorcade rolling down to the new york times offices, not clear necessarily how much of this is going to be off the record, how much will be on the record, we'll wait and see what the times puts out on this. but this has been this back and forth between donald trump and the media all week here this week. also have seen a number of comings and goings here at trump tower. we saw the vice president elect mike pence arrive earlier today. he's in charge of the transition here. he's been in the building all day, and as far as we know he's still here. rudy giuliani discussed as a potential director of national
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intelligence also arrived, talked to reporters here today, but didn't have much to say, wouldn't say anything about what particular job he wants to take in the trump administration, so we're sort of on stand by here waiting for new announcements in terms of major cabinet positions being built, nothing so far. we'll keep you guys posted on it if we get any news here this afternoon. >> thank you very much. eamon javers at trump tower. more insight into what is going on with the transition team, tillman fertitta is with us on set. you're not on the transition team, are you? >> no. i should be. >> you should be serving meals at the very least. michael costas, you've been meeting with some of trump's closest associates, did that earlier today. what are you hearing from them and who specifically has trump's ear the most these days? >> the answer to the latter question, you see the son-in-law jared kushner very close to the president-elect, so is stephen bannon, former head of breitbart news. the populous whisper in trump's ear. and others, rudy giuliani,
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kellyanne conway, but it is a tight -- >> the usual suspects. >> usual suspects. >> is this smaller than a normal team? it seems like there is six or seven close associates and that's it. >> that is it. >> if you're not in, you're out. >> trump, because he's an outsider, and he had a campaign that was small in operation, he trusts very few people. and he's keeping that circle pretty tight. >> when are we going to learn who the next treasury secretary is? >> steve mnuchin remains the front-runner. he has trump's ear, one of the few who does. he's trusted by trump. they're looking at mccormick and others for the position, but i think you'll see that in the next week. trump is going to mar-a-lago today, for the thanksgiving holiday, to think through defense, general mattis at the top of that list for treasury. you have mnuchin. he wants to spend a few days finalizing who is going to be his cabinet. >> going to florida, why don't you stop by? >> i'm dropping in.
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i'm going to drive right by mar-a-lago tomorrow. doesn't look like the transition team needs another middle aged white guy. >> that's an important point. trump knows he needs diversity. >> you look at that transition team, where are the women? >> the news this morning is that trump was in talks with dr. ben carson to come on as housing secretary. trump knows he can't just have old white men as the face of his administration, so one person who is in the running for a u.n. ambassador is tolleson gabbert, the democratic congresswoman and ben carson perhaps for housing. >> i thought ben carson was a neurosurgeon. he did build houses? >> he grew up detroit and he's been advising trump on housing policy. by no means an expert in housing. >> homeland security is so important. so much falls under homeland security today in the united states. that's how we protect our own country. we haven't had any talk about that. i think rick perry has a good chance to get veteran affairs,
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which would be wonderful. rick is an experienced chief executive and that's what you want to look for. people that have been chief executives, made decisions, that's been the problem the last eight years. >> what i heard from robert there about mnuchin and mccormick, and these are smart people, not knocking them, but they have trump's ear, or they're trusted. what i haven't heard is, wow, they're exceptionally qualified for this extremely important job. what are people saying about the qualifications of some of these people? >> there is a tension between trump's inner circle. that's why you have someone like mitt romney being considered for secretary of state, versus a mayor giuliani, because trump knows he can't just have loyalists. and talking to people close to him this morning, he's trying to really think through, so ben carson is a loyalist, brings diversity to the table, but who else can he bring in from the outside? >> when i asked you, who's got his ear, the answer was jared
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kushner, his son-in-law. he would love to have him on his staff, i can't imagine he wouldn't. but there are anti-nepotism rules there. not that there hasn't been close white house advisers related to the president, think of robert kennedy, as attorney general. and he was certainly the key adviser to president kennedy. how is he going to thread that needle? can he? >> it is going to be difficult because ivanka trump, jared's wife, and the trump children, still want to have their business enterprise. not a move to divest from the trump organization. jared, because of the trust he's built up with the candidate, with his father-in-law, one of the fu people w the few people who calls trump donald, he'll be at his side whether he has a title or not. >> you talk about a pro business agenda that we're get iting at, how are you doing things differently? >> i just feel good it is go to be a great three or four years. if he doesn't implode it somewhere else. i think from a business
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standpoint, deregulating everything is just going to be great. >> what do you mean doesn't implode it somewhere else? what is that suggesting? >> it could be a conflict of interest in the media come after him for something else. don't think that if he doesn't -- if he does something wrong that a republican congress wouldn't impeach him, okay. don't ever forget that. because they like the guy that is behind him. you're not a god up there as president. we will come after you. >> one of most important jobs is white house counsel. who is going to step in and really tell the president, candidly, what he can and can't do. >> we have some wire headlines crossing on trump from his meeting from the new york times. this is according to some of the new york times reporters on twitter. the headlines, trump says, he's not taking the clinton investigations off the table. that was, of course, big news this morning after kellyanne conway said he will not be going after her. trump telling the new york times he doesn't want to, quote, hurt the clintons. trump telling the new york times, quote, i'm not looking to
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go back and go through this. trump saying he does not feel very strongly about clinton prosecutions, does not think supporters will be disappointed. he's leaving his options open, robert, and clearly this is a question, as also whether president obama would pardon hillary clinton. what are you hearing about this? >> it is fascinating to see steve bannon's former website criticizing trump thinking he's selling out to the base by distancing himself from the idea of going after the clintons. trump knows when he talks to speaker ryan and mcconnell, they have a finite window to get through reform, they don't have the time for the investigation, they can't say that explicitly to make sure -- >> the final question, yesterday, mr. trump met with a bunch of of network news anchors, network news executives, one report in the new york post said this was frankly a dressing down of these individuals. what did you hear? others say it was fairly pleasant, benin. >> joe scarborough said, he
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talked to people in the room, i'm not sure -- there were nbc folks there, wasn't harsh at all. >> what did you hear? >> it was a dressing down. >> good natured dressing down? >> not entirely. he called the press coverage unfair. one person described it like something out of the godfather, bringing together the families, they think they're going to have a moment of peacemaking and it turns out they're all kind of getting killed at least politically inside of that room. trump sent a signal to all these executives that he's president, he won in his mind without the press' help, without fair coverage, and he's going to remain confrontational. >> puts them on their heels. >> can i ask you a personal question, may want to avoid like a hot rock, as a prominent member of the print media in d.c., do you fear trump at all in any way? >> no, not at all. i think the press needs to be -- >> some people say i don't want trump coming after me. >> he calls people out. he did during the campaign. >> we had rough and tumble times with presidents in the past. i think the press needs to be as
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vigilant as possible. and also remember we're not the story. >> you have never had a rough and tumble time like you will get now from donald trump. >> that's true. >> let's not even go there. >> the washington post was banned for quite some time, but you can still cover him from the outside. >> folks, thanks. good point. still ahead, if regular yoga simply does not do it for you, can we goat you into taking this class? we're talking yoga -- we went from trump to yoga with goats. we're not kidding. we're back right after this.
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♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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welcome back to "power lunch." we're inching closer to that 19,000 level, we saw the market go over that level earlier this morning. for the first time ever. we're in record territory for the dow. the s&p 500, the nasdaq and the russell 2000, leading the dow now verizon, home depot, boeing, visa and j & j bringing up the rear. >> do you do yoga? >> i do occasionally. i don't do yoga like what you're going to say. >> fave day five days a week bh goats. >> forget downward dog. the downward goat, it is yoga with goats. people find them comforting. in oregon this is one of the
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places offering classes. there is already a waiting list for spring of 2017. this is not like some fake video on the web. there is a goat -- if you're on the radio, picture, you hear goat yoga, you think what does it mean? exactly when you're picturing as you drive down the road. a bunch of people doing yoga and goats wandering around. don't leave your phone on the ground, by the way. a goat will eat anything, including a phone, eat your athletia pants, whatever it is. >> they're peaceful goats and there is already cat yoga. people do yoga with their cats and with their dogs, i believe. >> my cats are around when i do yoga. >> in the studio with you? you do -- >> i do it at home. >> there are a lot of animal poses. >> two or three minutes a day, that's what is required. i reach -- hold on, reach for the -- that's good stretching. >> i can't see you doing yoga. >> reach for the chips. >> how did this make the show
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today? >> because we came off this -- all this trump stuff, and we need to give our viewers a little chuckle. >> trump gives us a chuckle. >> let's send it over to sue herera with the real cnbc news update. >> thank you very much. and here's what's happening this hour, everybody. grief counselors are on site today at woodmore elementary school in chattanooga, tennessee, to help students deal with the school bus crash that took the lives of five of their classmates. the driver has been arrested overnight and was charged with vehicular homicide and reckless driving. researchers in brazil say microcephaly caused by the zika virus may take months to develop. the study looked at 13 babies whose head size appeared normal at birth and grew more slowly than normal. the ncaa is ordering notre dame to vacate wins from the 2012 and 2013 football seasons over academic misconduct by a student athletic trainer. the program has been put on a
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one-year probation and was fined $5,000. notre dame says it will appeal the decision. on a lighter note, and speaking of animals, lots of excitement at the columbus zoo over these very cute polar bear twins. this video is the first to be released of the two week old cubs with their mom, aurora. if all goes well, the public will be able to see them in real life at a zoo this spring. no word on where they're going to go. that's the news update at this hour. back to you, sara. >> we give them bears, goats, everything. a menagerie. >> a menagerie of animals on "power lunch." >> sara? >> stilg ahead on tl ahead, big housing front, something we haven't seen in nearly a decade. our next guest supports tpp, but his state voted for trump. republican congressman tom cole of oklahoma joins us live to talk about that and a lot more when "power lunch" continues. miles per hour. is0 to win, every millisecond matters.
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welcome back to "power lunch." the record run continues and look at where we are, back up
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above 19,000 on the dow jones industrial average. we crossed that earlier this morning, the first time ever the dow reached that milestone. doesn't take much if we close higher that would be a new record close after brian yesterday's quadfecta with the russell 2000. >> the quadfecta, just coined something new. i heard of a quad copter. it is great. spectacular. >> remember what happened in 2000, they all went -- >> you don't think that's going to happen? >> is that going to happen? >> not under trump, of course. this pro business president. >> let's be serious for a second. we see the dow go up a thousand -- we have amazing stats coming up in 30 minutes on the market. dow goes up 1,000 points in 12 days. 12 trading days. >> and just like the restaurant industry and we can talk about it later, negative comps, the worst in years, and yet
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restaurant stocks are going nuts right now. >> you ask the question earlier, i'll flip your question a little bit to you, which is do you see a direct jump in sales when the stock market goes up? >> they don't have anything to do with each other. that's what's crazy now. >> everyone will be spending money, you're at forefront -- >> it is about lower corporate taxes, it is about rolling back regulation. >> sell more -- >> i'll bet you feel it conversely if house values are going down. >> yes. >> people's sense of wealth is much more, i think, tied to the value of their -- >> that's why you don't want to build restaurants in suburban america. those are the ones that are hurt the most and that's why i try to stay out of suburban america. >> all in, in new york city. >> i'm all in. wherever there is lots of people. >> well, from budgets to infrastructure, even to the transpacific partnership, the tpp, there are a lot of moving
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pieces in d.c. and the new president hasn't even moved in yet. joining us now is republican congressman tom cole of oklahoma. thank you for joining us. i tried to lay it out there. a lot of stuff going on now, obviously. you have the trifecta, the house, the senate and the white house. and we'll see -- what is job number one and job number two. what is the legislative priority as you see it? >> job number one is probably the repeal and replacement of obamacare. number two would be major tax overhaul, and then there is some other thins that have to happen too, border security, infrastructure, frankly, the lifting of the sequester on the military, so it is going to be an exceptionally busy year going forward and don't even count the deregulatory activity that i think the white house will take up from day one. >> maybe you can confirm some stuff that we have read and i also made calls, talked to some folks in the hill, around the hill, about infrastructure and what i keep hearing, congressman
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is that there is no infrastructure bill. that's going to be d ox a, in the on the gop agenda, infrastructure, what the gop wants, maybe not what mr. trump wants, will be rolled into a broader tax reform package. is that what you're hearing? >> there is a lot of hard work done, actually bipartisan work on repatriation of stranded profits to help fund infrastructure through an infrastructure bank. but, look, i think we're going to wait and see what the president elect has to say. if he has a different idea or that's only one of a number of tools that he wants to use, frankly i suspect he'll be able to get out of republican congress broadly the things that he wants, particularly in the opening year. >> i remember back in 2008, 2009, a lot of talk about keynesian economics, stimulus packages that were moving through congress and a lot of people oppose, a lot of people on the gop opposed on that basis. now it feels to me, congressman, like we're embracing that kind
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of fiscal stimulus in a different way. how do you think the republican caucus in the house, which has been pretty aggressive about holding the line on deficits is going to react to a series of proposals that may in fact expand deficits and end up ballooning the federal debt? >> well, certainly a lot of skepticism about anything that does that. and frankly i think there is a hope that eventually we'll get to and not -- if you want to deal with the debt and the deficit, you got to deal with entitlement reform. there is no way around it. over 60% of all federal spending is social security, medicare and medicaid, and frankly to repeal obamacare, that's deeply entwined in both medicare and medicaid. so you can't actually put this social safety net programs off the table, so to speak. >> congressman, i want to ask you about trade, i believe you're one of the republicans that supported the tpp,
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president obama's trade transpacific trade partnership, we were talking with larry kudlow earlier on the show about the idea you can still be a free trader as long as trump's not talking about tariffs and you can still embrace this idea that it is america first, and y're going to abandon the tpp and go at it unilaterally. do you agree with that. will you be on board? >> never did support or, you know, took a position to be fair on tpp because i hadn't read it. i nknew from the minute both presidential campaigns were against it wasn't going to happ happen. i am a free trader. i've always voted for trade deals. and frankly in my state, it is very good for agriculture, very good for the export of energy equipment and machinery, technology, so -- i've got a large boeing presence in my
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district and they're major exporters. i tend to be inclined to be supportive of free trade, but i certainly don't have any problem with what larry kudlow -- you can do this a variety of ways, and if we can find ways with bilateral deals or negotiate better deals, that's good. i frankly know a lot of people that had some skepticism about the quality of the deal, that the administration was bringing back. not about free trade in general, but about whether or not we had been best at the negotiating table. i think that's less likely to happen with a president trump. >> congressman cole -- >> go ahead. >> i'm done. >> we're going to wrap item. thank you very much. >> appreciate it. >> happy thanksgiving. >> fantastic. big news on the housing front. exiting home sales jumping to near a ten-year high. diana olick is with us today. often the case in housing, there is more behind this headline than meets the eye.
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>> there always is. look, it was a beautiful jump. we saw sales up nearly 6% year over year and the realtors are calling it an autumn revival, but, remember, these numbers are based on sales that were made in july, august and september. so these are closings that are reported for october. we're in a very different world right now. we all know that. we have mortgage interest rates that jumped more than half a percentage point post the election. you talk about a dow jump, same thing happened with mortgage rates. when you see the first time home buyer coming back in this market, which is where we were looking for the growth in the last couple of months, and where the realtors seem so excited about it, that first time home buyer on the cusp of affordability. we say, oh, you know, the hike in mortgage rates isn't that much, still low, maybe 50, 75 bucks a month more to that first time home buyer, not the monthly payment, it is do i qualify for the loan? we start to see the numbers come in, december, january, based on deals made now, i think you might see a little different picture.
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>> so you expect -- what is it going to do to prices? >> well, we already have seen prices get very -- i don't want to use the word bubbly, but others have used that word. and we're starting to see them continue to rise and rise even though they were pulling back, the gains were pulling back in the spring and summer. we're seeing the gains increase now too. when you put that with higher mortgage rates, are the sellers going to lower their prices? reports i'm gehling from ttting field are, know. >> they buy on the monthly payment. so if rates go up, what you can afford goes down unless the price must necessarily come down? >> right. but you have to are a seller who understands that. and right now you have very heady sellers out there, sarah was talking about france -- and san diego, before they even get to the house, they have to put a bid out because supply is so incredibly low. >> let me correct sara, it was solana beach. i grew up in encinitas.
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that's like saying parts of new jersey are all the same. solana beach. >> nationally we have a very low supply issue. that is across the nation, low supply. that's what's pushing prices up. sellers say i don't care if mortgage rates are higher, only three other houses for sale, i'm going to keep it at my price. >> it is all about the monthly payment. and as rates go up, the houses will stop selling and people with equity in their houses today will lose it and never sell their houses. it is all about the monthly payment. >> i think i see the gains shrink. >> i thought i was negative. >> i think that's where it's going. >> never selling another house in america again. >> all right, great to be with you. >> thanks. >> is the tv bundle prime for erosion? amazon planning to tackle live sports. what that could mean for the rest of the industry. that's next. hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren?
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welcome back to "power lunch." we're learning news that is trickling out of the meeting that donald trump has been having with new york times journalists. that's a live shot inside the new york times building. we're waiting for president-elect trump to emerge. but we are getting headlines here from new york times reporters on twitter saying that trump has received calls from apple ceo tim cook and from bill gates, that is, of course, according to the reporters. we also learned he's sort of lukewarm on hillary clinton and deciding whether to prosecute her. said he's not ruling it out, but also sort of playing down the possibility. as we get more information, we'll share it with you. we are interested, of course, in the conversations between tim cook, someone he went back and forth with, during the campaign. "power lunch" will be right back in two minutes. we're going to tell you more about this record rally for stocks. the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't.
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amazon shares are higher today as the company looks to add live sports to its sites. amazon in talks with the nba, the nfl, and major league baseball, whether they can land major league sports another story. right now most of them are locked into long-term deals with the cable and broadcast
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networks. and that one outlier twitter in the case of the nfl. the next guest says don't count out amazon's long game. here now, three-time nba champ -- is it three or two? >> two. we can round up, though. >> two. former gm and president of the seattle supersonics and now runs a capital company in seattle. amazon is all over seattle. they are a powerhouse. they got more cash than just about anybody. can you see them coming in as a credible bidder to carry nba games, to carry nfl games and so forth? >> well, the area they're competing for their prime customers, they want content, so sports is still very critical to attracting and keeping customers. so, yeah, i can see it. >> and they have been paying a lot of money for entertainment shows, willing to pay up, and it would take a lot of money to get the nba to share some of their programming with them. >> well, yeah. and there is a trend towards, you know, the unbundling of
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games, which we have seen in the nfl now, with twitter and if the nba is willing to go there or individual teams are willing to go there, i don't know. you seat hore the horse probabl the barn there. >> if you were on the inside of league meetings, how do you think they would think about the idea of moving away from turner, moving away from espn or abc toward amazon? >> well, they're going to love the loyalty of their current partners and the dollars they're receiving from the partners frankly. but from a the league's perspective or the team's perspective, can't have too many high quality wealthy distribution companies who want your content. that amps the competition and that's what you love. >> wally, in your money management business, i note that you moved recently, long short fund, hedge fund, that you moved recently into small cap stocks. why did you do that? what did you see?
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and, boy, it's been paying you very nicely over the last few weeks. >> it has. but prior to the recent couple of weeks, it has been a flat year and actually, of course, earlier in the year very tough for small caps. this is where i see relative value. i own large cap stocks, but i've seen value and places where i think i can add value by knowing the companies. >> the overall market overvalued, fairly valued, undervalued? >> i think fairly valued. we have had this bump, certainly may have robbed some of 2017's returns based on whatever you want to call, what happened since the election. but i think, again, sentiment is positive, but not crazy positive, so certainly the year end as people in my business try to catch up on their performance, i think it looks very benign. >> i have a quick question, back to this amazon story for a moment, this is coming at a time when nfl ratings are actually
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going down. it is unclear yet whether they'll rebound, but i wonder is it too late to be getting into the sports business, live sports? >> well, i don't think it is too late because there is always going to be a market for live sports. and i think later about how much you're willing to pay. people may have got in for a lower dollars, though you can't argue that now with where the contracts are for the national guys. but if amazon wants to get in, and they're willing to pay, they can get in. >> wally. i think i knew you when you were in houston? >> spent two years there. wasn't the finest years for the rocke rockets but -- >> what do you think when you talk about the content and the barometer for sports as espn and when disney is losing hundreds of thousands of viewers every single month that the
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millennials could care less about turning on espn anymore. >> well, i guess disney disputed those numbers, but even assuming they're true, one of the things that goes into the way they're measured and the reality is, live sports are still going to be watched, going to be watched en masse and you have an event like we have here in seattle with the seahawks, galvanizes the whole community and sports rights and viewing, still going to be very, very valuable. >> interesting. >> wally, got to leave it there. good to see you. >> thank you, ty. >> thanks a lot. wally walker. breaking news coming out, yesterday, an alt-right -- i guess a way to put it very mildly, semiconference in washington, d.c., some people were seen giving nazi salute, alt-right, whatever it is, and trump apparently according to this meeting disavows and
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condemns this -- i don't want to call it a conference, makes it sound more official than it is, but anyway, donald trump apparently is meeting has rightfully disavowed and condemned whatever it was in d.c. five spectacular stats about this record rally on wall street. plus, incredible video of the jewelry heist in broad daylight. billion dollar buyer, season premiere tonight, 10:00 p.m. eastern tonight here on cnbc.
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♪ welcome to the second hour of "power lunch." i'm sara eisen with tyler, brian and billion dollar buyer tillman fertitta. two hours until the closing bell. good to have you here. let's show you what the major averages are doing. hitting all time highs. dow is back above that 19,000 mark. went above that level this hour. we're just below it. the s&p 500, the nasdaq and the russell 2000 are all hitting new records, new milestones. big moves in the bond market as well. yields on the two-year note yield hitting their highest level in six years.
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let's lack at whook at what right now. dsw, is that the shoe warehouse? that's my wife's favorite place. next to home goods. dsw up 10%. mixed quarter for the shoe retailer. they say better inventory will lead to better results, better fitting shoes coming up. the opposite direction, medtronic, down 10%, missing revenue estimates, cutting its full year forecast. campbell soup up more than 3%. the company beating on the top and bottom line. all about the noodles. brian? >> fired up. >> you bet. i love that shoe stuff. >> remind me never to combine soup and shoes. spontaneous combustion. by now you know the dow climbed above 19,000. that's already old news. happened a few hours ago.
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we wanted to go deeper. we're going to present our five spectacular stats about the stock market rally, counting you down from the semiinteresting to the what i think is absolutely mind blowing. stat number five, 130, that's the number of s&p 500 stocks that have made investors 10% or more on their money just this month. stat number four, 12%. that is the incredible amount that the biggest bank etf has gained again just in november. goldman sachs, up nearly 19%. it is all on higher rates and some optimism that financial regulation might be dialed back just a bit. stat number three, 121, that's the number of trading days it took to go from dow 17,000 to dow 18,000 from july of 2014 to december of that year. at the time, that seemed kind of quick. then you're keenly aware the dow did nothing but fluctuate for
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nearly the last two years which brings us to spectacular stat number two, which is 12. those are just the number of trading days it has been including today that it took to go from its last close under 18,000 to break above 19,000 today. incredible. so 480 some days since the dow first closed above 18,000 and just 12 days to go from that to 19,000. and finally, perhaps your most spectacular of all the stats is about the run. 22%, that is the dow's return since the lows at the beginning of this year. we hit 15,503, dow was terrible in january. february was bad. all the market guestes s es sag we're doomed. i thought that was kind of a spectacular stat.
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so put those in your hat and smoke it. >> it was the worst start to a year ever for the stock market. that is spectacular. thank you. how high can the market go is the question we're asking today. and is your money better off here in the u.s. or overseas? let's bring in david marcus, and dom chu covering stocks on the nyse floor as well. so, david, we have seen the u.s. outperform other global markets. does that mean you stick with a winner and continue to put money in the u.s. or go overseas? >> i think it is a little of both. look, we have a global fund we can go anywhere in the world, but today we have about 70% outside of the u.s. and mostly in europe. we do have only about 20% here. as a special situation investor, there is a lot going on here in the u.s., but europe is so far behind the u.s., so much opportunity there that hasn't been tapped yet. >> i guess the question is has the world changed after this
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election with donald trump winning and the republican sweep, is that going to be more progreth friend growth friendly u.s.? >> i think it will be more pro growth. infrastructure spending, lower corporate rates, things like that, are going to be a boon to consumer spending. will be fantastic. at the same time, europe is so far behind the u.s., they're going through their own changes. we had brexit a couple of months ago. you have a big vote coming in italy to change the whole way the government works, merkel announced she's going to run again. >> some people see that as scary, not necessarily as bullish. >> that's how you get bargains. it was only bullish, it would be too expensive and a market that we would see is too good for us and wouldn't do anything. i like some scare so i can get a discount. i would say there is going to be more volatility and the key is to take advantage of it.
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>> i'm stooarting to hear a tremendous amount of consensus, everything is going to be great, fantastic. and it reminds me of pre-brexit, pre-election. they're going to stay -- clinton is going to win, wait a minute. step back. tell me what i -- you say unless, you say it is going to be fine unless trump implodes somewhere else, ominously, what do you think could derail all this era of this flush of good feeling that we have got right now? >> trade barriers is one. so trump's talking about all kinds of tariffs tariffs. if those materialize, that's not good for business. rates are low today. just all this talk of rates going up. what happens if they start going up and keep going? so believe it or not, high rates can be very bad, good for certain banks, and financial stocks, but kind of bad for everybody else.
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i don't think rates are going that high, but i'm not making market calls. i'm really just a stock picker who likes to find one off ideas that will hopefully do well in spite of this, but as i say, i like volatility in a market because that gives me days to buy when others go into panic mode, and the fact is trump is not -- >> sorry to cut you off. live video of donald trump leaving the new york times building. >> highly anticipated meeting. was called off. and then reinstated. >> let's kind of take in -- >> a mix of cheers and boos. is on their phone. >> just trying to listen in.
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well, there goes mr. trump. >> it is amazing, he walked out, you can hear a mix of -- i don't know if there was any cheers. hard to make out what people were saying. if you're on the radio, every single person had their phone up, nobody is actually now watching anything. just go back and watch the video to see if you actually experienced it. >> he's going to see hamilton. kidding, kidding, kidding, everybody. >> eight hours ago, in a tweet, he called it the failing new york times. >> the failing. >> wonder if the tone will change. >> this is the story of next four years. it is on, it is on, it ff, it i it is off. >> but riveting to watch. >> let me ask you this, let's just say trump and congress passes, we're able to repatriate the trillions of dollars that are overseas. is that going to hurt the foreign economies? if we brought all that money back over here? >> i don't think it will. a lot of that money is sitting in banks.
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not working through the system. and if you bring it back here and start spending it, what do americans like to do? spend money? you import a lot of goods. and so the key is i don't think it will impact negatively because they're not being taxed there. it is really just sitting there in cash. the fact is there is a lot of companies that are in europe and other parts of the world that the largest customer for them is the u.s. so just because i like companies in europe doesn't mean i'm saying buy europe, i'm saying buy certain companies that are taking vaee ining advantage of opportunity. in the old days, they couldn't do it. rules have changed. they aren't changing, but they're so far behind the the u.s. that all of these opportunities and threats create dramatic potential as a value investor. so i'm excited. i was also excited before brexit. stress creates bargains. >> all right, thanks so much. appreciate you being with us. i liked your answer. eamon javers at trump tower.
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>> we're having a bit of a media moment here. you saw donald trump leaving that meeting with the new york times, we're expecting him to show up here at trump tower any moment now. but in a sign of the modern social media age that we live in, the new york times reporters as you have noted have been tweeting out details of this meeting while it has been happening. trump style, you might add. i want to give you a couple of the latest ones we see from new york times reporters, live tweeting that meeting with donald trump which just wrapped, trump says he's seriously considering james mattis for department of defense. he said he asked mattis about waterboarding and was surprised that he didn't favor it. another tweet saying that donald trump said, quote, i would love to be the one who made peace with israel and palestinians, that would be such a great achievement. also, trump saying that jared kushner, his son-in-law, could help make peace between the israelis and palestinians. and on syria, donald trump saying, syria, we have to solve that problem.
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he adds that he has a different view on it than everyone else. we're waiting for the trump motorcade, which we're expecting momentarily, not all that far between the new york times headquarters and where we are standing here at trump tower. donald trump has not been leaving this building all that often over the course of the time that he's been president-elect. went to new jersey over the weekend, out to dinner and now left and met with the new york times and he'll be back here any minute. >> it has been a stunning 24, 48 hour hours or so. he meets with the new york times. his team releases a youtube video without inviting press to outline his plans. wrap it all up. did we get some clear sense of what the trump presidency and media relationship is going to look like? >> absolutely. it is clear one of donald trump's biggest priorities as president-elect is to take on the media and particularly the
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media elite who he feels have not been fair to him during the course of the campaign. he would like them to change the tone of the coverage of him. would like to influence individual pictures that they use of him according to one report of the meeting, he was not happy with the picture that showed him having a double chin, he thought that was unfair. and nasty. and so trump clearly making his views known to the media elite here in manhattan. this is not like we have seen other presidents handle the media. we have seen other presidents meeting with the press, off the record, inside the white house, we have seen them cajole and beg and borrow and try to get coverage they want to get. this is more of a full frontal assault by donald trump on the media. >> no one has mastered the media the way trump has mastered the media. we can look at what he's done through the campaign as going over the heads of traditional media and he's going to keep
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doing it? >> thinking the same way that john f. kennedy was the first television era president, he mastered that medium and helped him become president, donald trump is the first social media era president and he's mastered that media and it is absolutely helped him. i'll give you one quick example of how alert donald trump was in the old days to the old media. i wrote an article on him for business week magazine in 2007. he had never met me before. he called me -- summoned me here to meet with him, we sat for an hour in his office face to face talking about the article afterward, and i left the meeting, i had no idea why he asked me to come there but what i realized was here was a new reporter writing about him that he didn't know. he simply wanted to take my measure, wanted to meet every single person who is covering him. donald trump has been hyperaware of the media coverage he's gotten for decades now. he's a master of it. and now a master of the new media form as you say. >> the new media guys, let's take a page from the sports book.
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if you look at derek jeter, if you're a star on the houston rockets, you don't need all the press conference anymore, the twitter feed, some athlete owned things, this youtube video will show people that he doesn't need a distribution platform. donald trump is going to be his own distribution platform. >> that's the point. >> he's going to tweet, youtube videos, going to go over and around and the other thing i'll say, guys, this is no knock, a lot of friends and colleagues in the new york media, whatever, which is most people still get their news from the cleveland plain dealer or the columbus dispatch or the seattle post intelligencer, not the new york times. he's doing all these meetings here, a lost people at of peopl to feel like d.c. and new york are connected at the hip. >> more people get their news from facebook, right? look at the influence of
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facebook on this election, that's where people are getting their news. as much as i love the cleveland plain dealer and local newspapers and grew up in media in that culture, that's not where people turn to. people turn to their devices and look at what they see there. >> i'm not even saying they read the newspaper. everybody misunderstood me. >> straighten us out then. >> always somebody else -- >> they're not reading the new york times. >> they're not reading the new york times. >>s they a point. >> what i'm just saying is that it might do any administration, not just the trump administration, to include whether or not people read them or not some major regional papers as well and not all the newspapers that are based within a 200 mile -- >> it strikes me that the markets, if you look at the markets now, if you look at some of the groups, the banks continue to break out here, utilities and industrials, but the markets are sort of ignoring some of these risks that the media has been hyperfocused on, some of the social issues,
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bigger world view concerns, and they're focused on a domestic economic policy agenda. and so far, trump hasn't said anything to upset that. in fact, in his plan, he talk ed about less regulation. >> yeah. >> we'll take a quick break. and maybe pick up on that thought in a minute. major protests planned for one week from today. low wage workers pushing for a higher minimum wage. we'll talk to the head of one of the biggest labor unions about the so-called fight for 15. tillman may get involved here. [vo] quickbooks introduces jeanette. and her new business: i do, to go. jeanette was excellent at marrying people. but had trouble getting paid. not a good time, jeanette. even worse. now i'm uncomfortable.
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but here's the good news, jeanette got quickbooks. send that invoice, jeanette. looks like they viewed it. and, ta-da! paid twice as fast. oh, she's an efficient officiant. way to grow, jeanette. get paid twice as fast. visit quickbooks-dot-com. hon, i don't know if i deserve this - i don't really work with my hands. you change a ton of diapers! your usual? not for me - for him. hon, you have something in your hair. would you like an oatmeal scrub? i already ate, actually. hon, we listen to carol. make my eyes pop? is this supposed to happen? (screams) i'm just kidding. we should do this more often. hold hands? no, sit in crazy chairs. get together and shop small on small business saturday.
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thousands of workers plan to walk off the job next week in what is promised to be a nationwide day of disruption as they push for higher wages and union rights. the far ranging strike will take place at airports and fast food chains among other businesses and hundreds of cities just as folks return from the thanksgiving holiday. helping to lead the change is mary kay, of the seiu service employs international union, joining us from detroit. mary, thank you for joining us. >> glad to be with you. >> what is the primary goal of these walk outs? >> i think we want to shine a light on poverty wage work and make it crystal clear that we're not backing down. airport baggage handlers, fast food workers, higher education, adjunct faculty have something in common, which is they don't earn enough to feed themselves
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and their families. raquel is a baggage handler, airlines subcontracted jobs out and now they're minimum wage jobs with no benefits and no guaranteed hours and these workers are saying enough is enough, we can do better as a country. >> tillman, take the other side of the argument. >> that employee is making $11 an hour, there is a reason that they had to subcontract out, they had to subcontract it out, because of the fact that they -- all the airlines are going into bankruptcy. so what do you do? it is a merry-go-round. i have lots of union employees. but it is an issue, but it is american capitalism too. if you can find somebody to pay this, it is fair. why do you even need a union today if you want to know the
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truth? i pay a lot of people a lot of wages. but i don't need to protect an employee today. there is lots of jobs out there if you want a job. >> well, a lot of jobs don't allow people to make ends meet and feed their families. and this is a situation where airlines and fast food companies are earning record profits. and shareholders are getting buybacks, and ticket prices are going up for airlines but workers are having their wages cut in half. something is wrong with this picture and that's why workers want to join together and demonstrate collectively on november 29th and saying we're not going to back down, we're not backing down on wages going up, we're not backing down on immigrants being welcome in our country, we need an america that works for everyone and economy that allows us all to win. >> so you have no problem with disrupting businesses when you do this? and affecting --
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>> our preference is for companies to come to the bargaining table and reach an agreement. that's the way it ought to work. but we have been trying to do that for over a year at o'hare and so this is a way to create a deadline for the companies to act and if the companies are unwilling to act, we think we have to join together to try and improve our lives. >> i appreciate what you're saying. i feel like there should not be a poverty wage in america. i believe for restaurants it should be the tip credit, and people in the kitchen, i have no problem paying $13, $14, $15, $16, $20 an hour if they're qualified. but i don't understand the nontip credit, but that's really not your union, a tip credit, is there? >> we care about every one of the workers who are working in more than 40 hours a week and living in poverty. i'm glad to hear that you and i agree that we need to end poverty wage work in america.
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and that's why we think the national demonstration on november 29th is so important, because it draws the country's attention to the fact that millions of americans are working their hearts out and unable to feed their families and i think that is something we can all agree is wrong. >> well, i hope that they come to the table so it doesn't happen, because i hate to see other businesses disrupt it and i go back to what happened at the taj with carl icahn and all the people lost their jobs because they went on strike and all it did was help unemployment in atlantic city. and that's where i'm close to it. and it is just disappointing sometimes and sometimes it back fires on you, but i hope it works out for you, mary. >> great, thank you. mary kay, thank you very much, happy thanksgiving. americans holding on to their cars and their trucks for longer than ever. just how long? and what that will mean for car sales and the industry.
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plus, a smash and grab robbery at a high end jewelry store in manhattan in broad daylight. we'll show that to you next on "power lunch." this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. if you're on medicare, remember, the open enrollment period is here. the time to choose your medicare coverage begins october 15th and ends december 7th.
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tier 1 and tier 2 drugs, delivered right to your door. in fact, our medicare advantage plan members saved an average of over $4,500 last year. now is the time to look at your options. start getting the benefits of an aarp medicarecomplete plan insured through unitedhealthcare. unitedhealthcare has been helping medicare beneficiaries for over 30 years. we'll connect you with the right people, help schedule your appointments, and with renew by unitedhealthcare, you can learn about healthy living and earn rewards, too. remember, medicare open enrollment ends december 7th. call unitedhealthcare today about an aarp medicarecomplete plan. you can even enroll right over the phone. don't wait. call unitedhealthcare or go online now. ♪
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check this out. a smash and grab at a high end jewelry store on madison avenue in manhattan in broad daylight yesterday. so the robbers are boundled up, faces covered, one pulls out a gun and orders the three employees to the ground, while the other smashes the glass, turns out they made off with five watches valued at more than $300,000 in total. police are seeking help from the public to identify these two men. unusual sight. >> middle of the day, yeah. >> cops outside of trump tower. >> too many resources. >> we are hanging on to our automobiles longer than ever. more than 11 years on average. phil lebeau is looking at that story and who might benefit from it. phil? >> if you're in the auto industry, you're benefiting, brian. let me show you the chart. whenever we talk about peak auto
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sales and how many people are out there that haven't bought a new vehicle and have we seen the top, probably not. we're still seeing the age of vehicles continue to rise. it is now at an all time high, the average age for an automobile in the u.s., 11.6 years. there you see it going all the way back to 2004 and the growth there. what is happening with the vehicles? couple of things, first of all, better reliability, and also you have new car buyers because the price of cars has gone up. they're stretching out their auto loans, taking longer to pay it off. as a result, they're owning the new cars for on average almost 7 years. you put that together with the way the vehicles are made now, with better reliability, and that has a lot of people saying, sure, i'll stick with my old car. >> it is the technology that has been improved, the components in the vehicles, the suppliers are using much better technology, new technologies are being discovered and with the innovation in technology, all of
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that leading to a vehicle that lasts longer and more importantly gives the consumer more confidence in driving that vehicle well beyond the average age of 11.5 years. >> you want to see who is benefiting as far as if you're an investor and you have noticed this trend? and by the way, this is going on for some time, it is the auto parts retailers. they have been benefiting from the fact that people are coming in for brakes, spark plugs, anything you might replace on an older vehicle. one statistic from ihs market i find amazing by 2021, there will be 20 million vehicles in the united states, at least 25 years old. that speaks to the fact that this trend will continue and, by the way, we talk about who is benefiting, new car dealers benefit, because eventually people say i want to have something with more bells and whistles. >> i hope you agree with this premise, phil, you may not, but i think cars have gotten ridiculously expensive. so are they expensive because
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cars last longer so you're going to sell fewer, so you got to make more on what you sell or expensive because they're higher quality and therefore they just last longer? i'm trying to put the cart before the -- >> i understand what you're saying. the prices now, the average transaction price over $34,000 in october. and the reason that the prices are going up, technology. the automakers are able to say to you, if you want the latest bells and whistles, want this connectivi connectivity, you'll have to pay up. people say, i will pay up and you can stretch out that auto lone longer, separate issue. because of that, people are saying, okay, i'll do it. >> the same thing we're talking about in housing. people buy the payment, not the sticker price. >> right. >> if they can do a seven-year loan and pay 119 a month or whatever it is, they'll -- they'll gladly pay $35,000. >> and the key mark right now, $500. if they can keep their monthly payment under $500, generally speaking, people do it, the average right now is about $495.
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>> we come at this story, i look around today, and i didn't see many cars that seemed like they were 11 years old in my area. however, we come at the story as though it sounds like it will be a bad thing. the average car is older now than it has ever been in america. >> i'm older than i was. >> average person is a record age in america. >> i remember when i was growing up, your car, when it got to 60,000 miles, or five years or 4 1/2 years or whatever it was, it was time to go. because bad stuff was going to happen. now, cars are running 120, 150, 300,000 miles if you take care of it. >> it is the quality of the car is what it is. i own a bentley rolls dealership and how they are built is -- >> are they any good? >> pretty good. a few of the customers want to know what the monthly payment will be if they lease it. no matter what it is, everybody -- >> what is the monthly?
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>> that's the truth. about 60, 70,000 a year for an average bentley. >> what is the cause for reduction up front. >> maybe that's why they're rich, maybe that's why, phil, thank you. >> you bet. >> jackie deangelis is at the nymex with the stuff that powers bentleys. >> good afternoon to you. watching crude prices today, we took a dip down, but we balanced out a little bit closer to the flat line at the close. i don't have the final print, but i think it was over $48 a barrel. that's strong dollar taking a little impact here, and also remember, we have got a holiday on thursday. so you can see a little selling going into that, volumes tend to be light on friday. and then more volatility picking up early next week as we anticipate and await the crucial opec decision. traders are saying they expect that volatility to be within this range, but not impossible to get to $50 a barrel. so that is what we'll be
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watching. more "power lunch" coming up after the break. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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president-elect trump is vowing to end the transpacific partnership. the obama administration is holding trade talks with china this week. here for a "power lunch" exclusive is penny pritzker.
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secretary pritzker, welcome. good to have you here. how worried are you that all the work you and the current administration accomplished over the last eight years, particularly on trade, will be undone? >> well, i think that, you know, regardless of administration there is a recognition that we need to trade with other countries. the united states is only 5% of the global marketplace, 95% of the market is outside the u.s. and one of the things that we have pursue ed our administrati is trade agreements. and the reason is that's how we can shape how we do trade with other countries in a way that is consistent with american values. and providing opportunity for american workers as well as protecting our environment as well as making sure our small and medium size businesses have more access to the rest of the world. so i remain bullish on our need to trade and look forward to seeing how that's pursued in the next administration.
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>> we have been talking about the tpp a lot today, and one of the criticisms has been that not many people, very few people have read it. and parts of it are still, i think, sort of classified. would people look at it differently if they truly understood it better? >> well, first of all, i don't think any parts of it are classified. i do think if people actually understood it and read it, they would support it and the reason is fundamentally it reduces tariffs for american companies to sell their goods into the asia pacific region. today, the united states doesn't have such barriers. and so it is an opportunity for our companies and our workers to be able to make our goods or sell our services into markets where we -- where today there are very high barriers. what it does is it really levels the playing field, creates market access, and that's something that is important.
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>> madam secretary, let me ask you a question, because you should understand this more than most, just like i get difficult questions when i appear, you should understand conflict of interest and understand what everybody is talking about when they're talking about donald trump. do you still serve on the board of hyatt hotels right now? >> absolutely not. i was -- i had to resign from every organization i belonged to including my own family foundation when i took the job as secretary of commerce. >> i mean, i have so much respect for you and your family and what you all have accomplished and so iconic yourself and we so appreciate your service to our country the last few years. what will he do about this conflict of interest. you recognize that it can happen, being the secretary of commerce, if you were still involved with hyatt hotels. what is he going to do in. >> i have absolutely no idea what the president-elect will do. i can't speculate. but i think it is something that needs to be explored. i mean, all i know is what i had
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to do in order to take this job and i'm very proud of the fact that i've been able to serve and not -- no one had to worry about my other interests. >> secretary pritzker, thank you very much for being with us. we appreciate your time. >> thank you. >> to seema mody for a news alert. >> this is an update on the ipo market. the wall street journal is reporting that app dynamic, an it services company, is planning to postpone their december ipo to next year, perhaps sometime in january, and the company according to the support is citing the uncertainty around the u.s. presidential election again. this is app dynamics, an it services company, reportedly valued around 2 billion to $3 billion. we have been talking about how the election outcome has been somewhat positive for markets but perhaps some companies don't see it that way. we'll keep an eye on this name, app dynamics. >> interesting because it was thought to be very uncertain for
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markets and yet stocks have taken off. seema, thank you. some in sill coicon valley searching for the fountain of youth. what are they doing to live forever? that's next on "power lunch." ♪ if you're on medicare, remember, the open enrollment period is here. the time to choose your medicare coverage begins october 15th and ends december 7th. so call unitedhealthcare to enroll... in a plan that could give you the benefits and stability you're looking for, an aarp medicarecomplete plan
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insured through unitedhealthcare. what makes it complete? it can combine medicare parts a and b, which is your hospital and doctor coverage with part d prescription drug coverage, and more, all in one simple plan for a low monthly premium or in some areas, no plan premium at all. an aarp medicarecomplete plan offers you benefits like an annual physical, preventive screenings and most immunizations all for a $0 copay. you'll also have access to a local network of doctors and much more. you can get routine vision and hearing coverage, a fitness membership to help you stay active, and worldwide emergency care. for prescriptions, you'll pay the plan's lowest price, whether it's your co-pay or the pharmacy price. or pay zero dollars for a 90-day supply of your tier 1 and tier 2 drugs, delivered right to your door. in fact, our medicare advantage plan members saved an average of over $4,500 last year.
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now is the time to look at your options. start getting the benefits of an aarp medicarecomplete plan insured through unitedhealthcare. unitedhealthcare has been helping medicare beneficiaries for over 30 years. we'll connect you with the right people, help schedule your appointments, and with renew by unitedhealthcare, you can learn about healthy living and earn rewards, too. remember, medicare open enrollment ends december 7th. call unitedhealthcare today about an aarp medicarecomplete plan. you can even enroll right over the phone. don't wait. call unitedhealthcare or go online now. ♪
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technologists have revolutionized entire industries from finance to media. well, now they're targeting a much bolder goal, extending life. our josh lipton is in san francisco with that story. how far along are they? >> well, sara, tech entrepreneurs want to extend their life spans and do so with unconventional and sometimes very expensive therapies. for help, they seek care from anti-aging specialists here in northern california who prescribe a range of treatments. so customized sets of supplements including vitamin k, and high dose antioxidants, individualized doses of testosterone and administer human growth hormone which some use because they think it changes associated with aging like decreased muscle mass. the founder of bulletproof coffee is one big fan of anti-aging supplements and therapies. he takes 150 supplements a day. for $6,000, he had his own stem
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cells injected into his brain. >> i've also had my stem cells injected into every site where i ever had an injury in my body. the leftover ones injected into my face, into my hair and anywhere else i could think of where stem cells might be active because i'm looking at living to 180 yearses old. i'm 44 now. and i've got a long way to go. >> not everyone is a fan of these treatments. dr. john newman is a professor of geriatrics at the university of california san francisco. he says testosterone replacement therapy can lead to an increased risk of heart attacks and strokes. as for hgh, he says that hormone does have potentially serious side effects as well, including diabetes. guys, back to you. >> fascinating. the fountain of youth in silicon valley. thank you. tillman, you have a pretty good life. what are you going to do to live forever? >> you just exercise a little bit and i don't think you --
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>> you're not injecting your brain -- >> i'm not injecting myself. he looked a little old too. >> i injected liquidity over the years. >> you go to the doctor and live well and have checkups. but -- >> another school of thought, i don't know where it was, national geographic last month or one of these magazines where they said, one woman who lived to be 122 in france, and she died in the '90s. they said that was an outlier. they don't believe that we can live -- there is a certain point at which you're just going to go. you're not going to be able to -- we can live to be 90 now because we treat stuff, but we won't live to be 180. the human body just stops. >> i worry about the accident factor more than anything else. you fly around in helicopters, land on boats, go snow skiing, you do wild things. that's what i worry about. i worry about -- >> the random accident. >> chopper on a boat? >> driving around in the city,
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and taking in all the exhaust, i mean -- >> new jersey transit. >> right, the germs in the station. >> now you're getting morbid. i wanted to know your secrets. >> down 19,000 is already old news. looking for 20,000 right after the break. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade okay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is:
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time for street talk, the four big stock calls of the time for "street talk." the four big stock calls of the day we want you to know about. >> world research, upgrading anthem to out perform. they cited an improving industry outlook as reps look to repeal/revive obamacare in 2017. the price target here 173, and, brian, that's a nice 26% upside over the next 12 months. a lot of insurers have been mixed post the trump victory, but mostly higher. >> that one a big one today. number two is the mexican company, america mobile. bank of america upgrading to a buy for the upgrade. the weaker peso, your favorite thing talking about currency.
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at 5.5 times, they think the valuation looks good. increased the target of amx to 15. it is the recent upgrade for american mobile. raised the rating to a buy back on october 28th. >> a remind there are upsides from the bigger currency moves. cowen and company downgrading, citing a number of factors including caution on outlet and tourism pressure, tepid handbag market growth and fair valuation target $16 per base. that's come down a all right. >> today is doing well so downgrade is not hurting. fourth call, smaller cap call of the day. that is therapeutics md, txmd is ticker. jeffrey assuming coverage of the buy. get this, an $18 target, it is a $17 stock, folks. analysts believe their in
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development hor monday replacement therapy will offer a different one. this could, that's the key word, could become the only fda approved. that's if the drug data comes in positive enough. when you're on a buy, you're betting on the drug being approved. if it is, the analysts see, lock buster, their term, not mine. stocks at 734. >> by nary risk factor here. >> txmb is small-cap call of the day. let's talk the overall markets on a day wu the dow hits 19,000. r.a. wall, max wolff. ari, i'm going to start with you and the charts. took us 12 days to go from previous last close below 18,000 to 19,000. is it sustain snabl. >> we think so. yeah, we think so. you know how we see it, this is classic bull market behavior that, you know, when the feds start to tighten, you have your mid cycle correction. that's what we had over the last year, the wide gyrations. now we're breaking to tup side,
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brian. we see the infliction from the 200 day moving average. not only are we breaking out, we're breaking out with the right leadership. risk is coming back to the market after really how we see it, a two-year deliver favor risk off trades. we think the bull market is continuing. talking about dow, 20,000. 5% up from current levels. i think that makes sense looking out into the first half of 2017. >> max wolff, are you the dow 20,000 camp before, i don't know, next 4th of july. >> before thanksgiving, why not? >> it actually happened already. it was so fast we didn't report it. >> probably in the next commercial break, which might have to stay tuned through the break. look, what we think of the market staggering is a little inebriated here. when you have had a few drinks, you think you're sober and will have a few more. it is the other 4%, we could get there. we fundamentally think the terrible last eight years saw a tripling of indexes and weren't
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that bad. assets were cheap on a historical basis, pe basis, relative international basis. they're not cheap now. the truth is while it is fun and nice and maybe a respite from the doom and gloom we talked about going into the election, we have baked success in everything, no blow back and failure for the next president, and that would be awesome. >> 20 grand before the end of the year? >> yeah, we think we're likely to see 18 again than 20, but really the short term is not what we do. we do sort of for the long term. we risk target and we are there to desober perhaps when other folks aren't. >> do not drink and buy stocks according to max wolff. ari wold says lead it ride. that's why we do it both ways, charts and fundamental. both of you have a happy thanksgiving. visit trading nation cnbc.com. >> now the latest from trading
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nation and cnbc.
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leslie hansen is a business owner in the beautiful northern california coastal town of half moon bay. her shop, odyssey, sells products related to science and nature. she will be encouraging customers to shop small all holiday season. watch "your business" sunday mornings at 7:30 on msnbc. >> i'm so excited to present you guys with all of the new server's uniforms for the h 2 o pool. went with a solid color palate. this is gold la may.
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this might be fun for vegas. this is a one-piece option that will make them feel great and look great. it has really straps in the back, something interesting and fun. >> all right. darling, you look great, but is this a joke? i'm not in the adult business. i mean this is a family pool, if it doesn't get better real quick we have a serious issue. >> so that's from the "billion dollar buyer" season premiere tonight. you want to watch that at 10:00 p.m. eastern time. >> trying to please all -- >> it is for the viewer of the listener and radio. >> it is a business show. >> i think you best not. >> it is a business show. >> what was the concept here? who are you hiring for? >> it wasn't a bikini. >> remember, i buy everything. well, all of my h 2 o pools at my resorts and casinos i wanted to change the uniform, so i have to buy 1,000 of them for my
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cocktail waitresses. >> wonder woman costumes? i like that. >> that's why i said, is this a joke. i thought maybe on the golden nugget, i didn't know what. i really thought it was a joke. >> so what happened? you turned it around? >> yes, she ended up getting better, but you will have to see the show tonight to see if i ended up giving her an order or not to grow her business. she scaled up. >> a clothing designer you were dealing with there? >> yes, out of cuba. she is a great woman. >> who were the other folks whose jaws dropped along with yours? >> believe it or not, one of them is vp of hospitality division and the other is my brother todd, who is chief operating officer of my galveston properties. >> you did a lot of taping for this season. >> my gosh, i'm worn out. don't ask me if i'm going to do it again. it was fun, because i'm tired right now but it was great. >> the reason i asked, it is clear it was your team. >> yes. >> how do you assemble a good team? what would you tell the president? >> you know what is funny, the guy that's the head of my
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hospitality division, this is a great story. when i bought that resort 20 years ago, it was a has-been property, and he was the caretaker. i said, i noticed that he had ability. seven years later he got resort general manager of the year under me. okay. it is taking people and taking them to the next level. if somebody said, tillman, what do you do best? i take somebody and i take them to the next level. >> tillman, great to be with you. >> thank y'all for letting me come into your space. >> have a good time when you're here. >> thanks, guy. >> i don't know why, but it happens. "closing bell" starts right now. ♪ we can't dance again >> hey 19,000. welcome to "closing bell." i'm kelly evans of the new york stock exchange. >> we got steely dan in there. it is good when it fits. not so big on the 1980 election rerun but it is a song from 1980, might as well fit it

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