tv Closing Bell CNBC November 30, 2016 3:00pm-5:01pm EST
what we thought we knew was true wasn't necessarily true. we've been surprised at every single turn. >> brexit, the cubs -- >> brexit, the cubs, trump, the market will suffer with trump. 5.6% growth if corporate taxes are cut. that sounds outlandish. it may well be true. "closing bell" starts right now. and welcome to the "closing bell." i'm sara eisen. >> i'm bill griffeth. the final trading day of november. the dow is the only one in the green right now but it's had a stellar month. for the first time in history, the dow gained a thousand points in one month. >> it was the best for the dow since back in march, second best
for 2016. >> the election of donald trump has helped make this one one of the best performing months the year, by the way, but if you think you missed the rally, think again. they will tell you what they would buy right now. we'll name names coming up. and today we learned steven mnuchin is donald trump's choice for press secretary. he joined us in a cnbc interview to discuss specific plans for tax reform and job creation. we'll have a look at those policies and their potential on the market and kmet. >> all very, very interesting. and we have a deal. believe it or not, oil prices on fire today after opec reached a deal to cut oil production by 1.2 million barrels. we will go live to havana to get details, and then later, the energy stocks that could get the biggest boost from that. that's coming up. let's start with the news of
the day. donald trump picking his cabinet. mnuchin was trump's finance chair during the campaign. he's also at goldman sachs. a billionaire has made a fortune of invest ing in a wide range o industries and has been a guest on cnbc. >> those two were on ""squawk box" this morning. they talked about mr. trump and his roles. >> i think we can sustain 3 to 4% gdp, and that is absolutely critical for the country. >> it's also not true that all jobs are created equal. the guy working in the steel mill now flipping hamburgers, he knows it's not the same. so it's the quality of jobs and not the quantity.
so when newly created jobs are not nearly as i mmunitive as thy were. joining me now for more on mr. trump's cabinet choice, paul mary is white house reporter for plitt co. she joins us with our own steven lease man and what they're saying will about growth in newt year. >> they were obviously safe picks. we've seen wall street types, gold men coming in and serving as press secretary. it was a safe pick. he's still an unknown, said, who
is this guy in he's maybe a lgt bit less known but still considered to be the safe, and you can see that today that wall street has become very excited and he has the capability to really make reform on the do dodd-frank and we'll see what happened. >> he threw out 3% growth which is a little more realistic sounding than the 5 to 6% growth we heard from donald trump on the campaign trail. is it plausible? >> are you talking about a couple quarters or changing the dna of the economy so they can return, sort of, to potential rkts probably the same ones you
talk to, a percentage point is one bill degree in other words, going from two to three. many would see 3 and. talked about if they are able to engineer a potential shift, that would be welcome across the economic spectrum and across the nation. >> as far as wil co loss goes, he's not a fan of regional of some kind. he assures everybody that there still won't be a still a
negotiation and something that's the table here. >> it seems like he's going to actually uphold, you know, president trump's promises to kill the trantranspacific trade deal. it looks like he's just sort of following the line mr. trump gave throughout his entire campaign. not really too surprising. the rest of the world will wait and see how aisle igs. i heard two rather than in the
cent center. get rid of the things he thinks reduces bending rather than scrap the deal. i've that's different than scrapping na trt recall. steven mnuchkin is chief secretary. he talked with donald trump yesterday, talked about being secretary of state. mayor bloomberg, many would argue that he was a great mayor
without any governmental experience, and he chose people around him who were maybe a bit more moderate or had different opinions. the thing is, is he going to actually listen to him? >> we have to go at this point, guys, but first a blush look at these two very important members of the new cabinet under donald trump. thank you both. good seeing you. the dow making another run at a record high. it's up 31 points, well off the session right now. in fact, the s&p and dow have turned negative. >> the goldman. >> jim hahn from wealth financial group, steve grasso is here and steve checks in from chicago. jim, we had this oil rally that pushed the energy stocks higher, but the other is lowering.
>> it's still financials and it's still materials. you have to look at where people were underweight. coming into the first half of the year, they were underweight in money and financials and they were overweight in large cap tech. today you see the large cap tech continuation of how it's being sold in the last month or so, and especially with the election results of lot longer row to go when adding on to their financials and energy. we look at the operating, maybe the first quarter of the new year as well. >> rick, ge got. a beige book report, anecdotal ronl r rooking record high and yet the ol.
what do you think is the message from the performance in november? >> i think the message in the market is before november and obviously back from november, there are a turnstooil -- turn t turnstile. on the other side, it's hard to get a sustainable gdp. if you look at the atlanta gdp now, it's moved from 3.6 to 2.4. you put in 2.4, so you had .8, 1.4, now put in 2.4 if that's to be the number.
a different wait. it's not all going be keeping up on the he can with it i side. we have to pay particularly close attention to what goes on with the italian referendum and how that affects progression, that is for sure. >> jim, we see what it's going to look like in nethe new year d we have a better portfolio. what do you see coming in? >> the dow and s&p are on track for best monthly gain.
if we can't repeal frank-dodd or repeal industrials, you could see a lower s&p in 2017. that said s, if you look nationally, it should be better. so as i look overseas, the u.s. is trading at two-time sales. the s&p 500 is trading at two-time sales, and the others are selling at one-time sales. those areas look cheap with the u.s. dollar appreciating the way it's appreciating. countries in those geographiege even more from those policies and our estates. i would probably say it will be coming all the way. >> is it painting too rosy a picture of the trump policies? where do you come down on this
and do you agree? >> i do agree with the adage buy the rumor, sell the news. when you look at financials and energy still ripping higher, it's a testament to positional trading, and you see that people were underweight on those two sectors, and there's still a chase for performance going into year end. i do believe, though, energy, crude as a whole, should be sold here. it can't rally above 50. 55 is where hedges come on, where you see people start to drill more, production hits the market. i hear you on opec and i hear the market on opec, but the problem is it's bigger than opec production and fracking is going to be a lot larger this year than last year. >> this is a fascinating time we're in right now. the markets, policywise.
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right now the streaming video giant says it is offering offline playback on select content. users can hit the new download button to watch shows later while they're away from a data connection, and they can select video quality options depending on how much space they want to use. content available for downloads varies by region, and right now
it applies to netflix's original tv shows and movies. netflix said more content for download is on the way. >> there is one way to react to this. you have no reason now not to watch stranger things on a plane. opec agreed to cut output for the first time since back in 2008. our steve sedgwick is live in vienna where the key meeting all took place, and he's here to break it all down for us. hi, steve. >> hi, sara, bill, we wondered if there would be a deal or no deal. i think we got the first scenario, ie, a deal. we got 2 million barrels off the table, we have saudi taking a half million barrels off the table, and saudi arabia taking 10,000 off the table. let's listen to the saudi oil
man, perhaps the most important man in the oil industry today, thought about it. >> we are happy because it brings stability back to the market, raise volatility and it will give an impetus for investment flows to come to healthy levels into the market. >> reporter: what is really interesting as well, and i think it's in the detail of the agreement which i've got in my hand here as well. it's not just opec with 200 million barrels on the table, it's non-opec as well. the russians are coming to the party on this one. there is a meeting next week on the ninth of december. opec is opening that non-opec led by russia, including the likes of kyrgyzstan in mexico
will take some. that is why we saw futures, and indeed, the underlying markets around 9% today, getting to about $50 a barrel. >> i get the russian participation in this, but i haven't heard anything about u.s. producers who are playing an ever greater role in the world energy market, and there is no sign that they want to cut back on production to a great degree, especially if prices go higher here. they want to reap as much as they can from this. what are you hearing about that? >> well, there is no sign that texas is going to join this one, i can assure you. the fact of the matter is the oil producers in the united states are producing around a million barrels less than they were. we were at 9.6 a day, now we're at 8.6. but they can turn the taps on very, very quickly compared to the old days as well. if we get to $159.
this deal starts on the first of january. they're going to have another look at it in six months' time. they are permanently aware remembered, not just for this lot, but for u.s. producers. >> they wanted higher prices and that's what they're getting today. we'll see how long it lasts. steve sedgwick doing 340 minutes before we go. of the three major averages, we put the russells as well. technology shares and alpha bit and amazon under some pressure here? >> yes. >> valium shares are selling hard after talks to sell a key division fell apart.
business selling to japan for $10 million, that deal has collapsed. the two sides couldn't agree on price, apparently. it is considered to be one of their crown jewels. remember when they were talking about selling that and the stock was taking off there? >> more than 30% on their part. i was looking at the valeant cap, about $5 million. last summer this was a $90 billion pharmaceutical giant. it shows you how fast it's fallen and that was after it purchased salex for $60 million. how time has changed things for this company. the dow closing out a very strong month. up 56 points right now. up more than a thousand points this month, only the fifth time in history that's happened. a leading trader will tell us what he's watching going into the close coming up in a moment. plus, banks have had a major
trump bump since the election. now the treasury secretary telling cnbc he's looking to make dodd-frank less complicated. we have something that could rally even further off those comments, next. and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. is that they contour to your body.r-pedic mattresses... it keeps us comfortable and asleep at night. get your tempur-pedic. the most highly recommended bed in america for as low as $25 per month and 90 night free trial.
welcome back. the dow is up 55 points. we mentioned before if not for goldman sachs, the dow would be negative right now. the dow is accounting for 40 points higher. without that one we would be up by only about 18 points here, but you can see the majority of dow components are lower at this hour with the dow up 55 points. time for sue herrera. hi, sue. >> hi, everybody. josh earnest says donald trump deserves credit for keeping nearly 1 million jobs in the united states. but he added that trump would have to be successful at repeating that event 840 more times to keep manufacturing jobs. bharara will remain federal
prosecutor after meeting with trump today. he also met with jeff sessions, trump's pick as attorney general, who also asked him to stay on. a judge said she will make a ruling at the end of the week on whether to appoint a special prosecutor in the chris christie bridge scandal. she said she will need to hear more before she makes her decision. facebook is bringing classic video games like pac man and space invaders to its users. it's rolling out a new thing called instant games, and the idea is to keep people on facebook as long as possible. that's the news update at this hour. sara, back to you. we are in the final half ho hour, the most important half hour of trading of the day and the last half hour of the trading in the month of november. what will you be watching at the
close? >> this has been a fairly interesting month, i would say. as far as traders we've done really, really well. a lot of volatility really helped. but it's all about next week, and it's all about what the fed's going to do, how they'll operate, what they're thinking of. me personally, i don't think it will have that big an effect either way if they do raise rates. >> 100% raise in increase. isn't it all about the politics now and not the central bank anymore? >> i do think politics will play a big part until we get to the next 100 days. >> we had some economic thinking this morning, two important positions. what is the trade that you're hearing? >> i think it will be very pro business, which we're very happy about. i think the financial sector is probably going to do fairly well regarding reduction in regulation, maybe rethinking dodd-frank, trying to reinvent -- not necessarily
reinvent, but at least change a little bit about the financials. i think they're probably going to be the hottest group in the first quarter of next year. >> on top of what they had done. >> in fact, it was after the rate hike of last year. >> thank you for joining us here. over to you, bill. >> sara, thank you. president-elect trump named steve mnuchin as his pick for staff secretary. mr. mnuchin joined us with his thoughts on bank regulation. listen. >> the number one problem with dodd-frank is it's way too complicated and it cuts back lending. so we want to strip back parts of dodd-frank that prevents banks from lending and that will be the number one priority on the regulatory side. >> joining us now for what this means for the financials. david ellison, and from
financial markets. welcome, both of you. the markets have done very well since the election, but there's more left to run. david, you like the financials, don't you? >> yeah. first i'd like to say to paul miller hello. i can't see you on the tv, but i hope you're doing well. bill, to your question, i've talked to probably 25 banks as i normally go through my routine and as iver been hearing from the last 25 banks and the lowest policies that are glg to generate my. and i think next year will be an okay year for the group.
>>, sdr that add up to a further bank rally on top of the double digit rise we've already seen, particularly for the regionals? >> we still need to see devils in the details of holding bank dodd-frank. you cannot originate a marginal vallone today. you have to marge nature really pristine loans. if we open up the credit and if these poefld. i think these banks do look like a lot more room to run, mainly just because there were such tailwinds except the hank. >> i have six companies that you
liked. are there any banks that wouldn't benefit from this? >> i don't -- well, certainly i have two, so i wouldn't quite call it throwing darts, but certainly that's how much it has to do. do higher rate mean higher profit for these guys, or is something else at work for you. >> the problem is, as we go further, who is going to turn the positive microvai rant, and therefore, bigger buy backs, bigg
bigger. >> i know you like ciya zions something you enrichd. >> with higher short term rates, those will benefit the most out of the gate. those are the names that we say if you really want to take explosion now. if you get to the fed to start raising out of that group of names. >> well, as we mentioned, we've had a terrific month for these guys since the election here, david. you still like these banks? isn't it becoming a crowded trade?
>> that's an obvious sort of question, so i guess i'll sell something. i guess part of it was driven by things the banks did, but everything has been working against them for at least half a decade, and now we get a whiff of some good news on rates and regulatory stuff, they go up and all of a sudden it's over. i think you have a run-through that will last the next couple of years. now the next phase, the manager has to turn these positives into real earnings and that's where the pm will come to. that's what we hopefully try to do here. but this first phase was here. . . i don't think you give up so
quickly in salary. hang on and see what happens. >> dave he will son, paul miller. it sounds like you two get to have lunch anytime. >> the s&p and nasr dk both invent i have. a new president-elect started bill record-breaking. weighing in on the month that was, whether they're practicing their portfolios. we will get reaction from bill daly who henced.
financials are also having a very strong day. gopro is higher today. the wearable action camera maker is cutting about 200 employees. they said they will be closing their entertainment unit which makes original content. they are helping the company return to profitability on an adjusted basis next year. today's layoffs coming after a 7% reduction announced at the start of the year. >> they have a lot to do to right the ship here. much more competition than there used to be when they were the only game in town with these extreme sports cameras and they introduced their drone not too long ago with high expectations for the holiday season, and i think what they're foreshadowing is maybe the sales are not meeting expectations, so they have to cut in order to go back
to. >> i was going to say something snappy about buying stocks, but i won't. >> parker, chief u.s. he cequit strategist, explains why next. [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that
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>> i'm sorry, what? >> go ahead, i'm sorry. so apple, yes. what else? >> little apple, little walgreen's, and i sent you one other. i can't remember what it was. >> we have sunpower on here and general electric. >> thank you, thank you. so ge, just because it's in the eye of the global trade issue, and they're heavily invested in alternative energy. that might not do well in the trump administration. >> damon, it sounds like you have a different view of the markets here. >> yes, i'm actually cautiously buying. i'm looking at everything going on right now. pharmaceuticals, it looks like they'll be attractive in months and years to come. mining, with the global --
sorry, infrastructure that donald trump wants to put in place, somebody has to go get the material so we don't have to get it from china, and hopefully newmont and barrick are the companies he turns to for this material. i'm also looking at health care. because if obamacare gets rolled back some and there is a big market for health care, i believe that the competition will bring the companies back up and make them more profitable which will, in turn, give us more profit when we buy more stock in those companies. >> susan, what would you buy? is there anything you would buy here? >> i would definitely invest in com dad e com comdex. that's health care. >> how about dexcom?
>> i love dexcom. >> do you feel like you have a picture of the economy donald trump wants to create? we started to hear more and more. are you getting that? >> yes, but it's hard to really gauge, because what they say and what can actually really happen aren't going to be the same things. so i believe that a lot of american manufacturing and maybe oil production might be on the rise, but it's still a wait and see game with the trump administration, because they have a lot that they said they're going to put out, and i'm just not so sure they're going to be able to do everything, so i need to sit back and watch and then pick and choose where i feel most comfortable getting in at. >> before we go, susan, apple.
i'm curious why you would sell it. i thought that was a buy and hold for life here. why now? >> you know, they don't have me convinced that -- i don't think they have others convinced that they have the great new, sexy things in the pipeline that they need. nor have they figured out how to monetize that mountain of data which seems like a good thing to do. so this might be a good time to take some profits, but not sell all of it, and wait and see. >> always good to see you, folks. thank you, two of our investment retailers joining us with their strategies as we go into the holiday season here. now equity strategist at morgan stanley who apparently has been waiting patiently to come on the air here today. adam, thanks for being here. good to see you.
>> thank you. thanks for having me. >> what do you make of the rally since the election and are you on board with this? where are you putting your money here? >> as you know, we've been pretty bullish on u.s. equities for the last four years, but i do think this republican sweep itself is higher than the regime. we are predicting higher earnings but lower price to earnings attached to that. i think 2017 will be the year of higher tensions and lower multiples. we still see an up side to the base. we had a big party the last few years, now we're in the after party. the after party can be great, and sometimes it can leave you with a hangover. i think timing when they get a little tired will be the 2017 main goal. >> does the afterparty contain strength in small caps? >> i think you'll have to face
trade at some point. you've seen it in industrials in small caps at banks. i'm a little surprised -- it's almost breathtaking how fast people have changed to thinking there is gridlock in washington to there's no gridlock. it's been such a huge reversal in the mindset. part of me wants to trade the inflation trade a little bit, but we have to put sign posts out there about how we're going to engage the fade, and is it going to be a change in industrials and metals? is it going to be widening credit spreads? is it going to be tighter financial conditions? is it going to be stuff in washington where it's a little less kum-ba-ya than we think? >> or is it going to be the stronger dollar which is at a 14-year high, both of which have disrupted equity markets before. >> i think you need goldilocks on that. we've been saying good news is
good, bad news is good. i think what changed now is good news might be good for the parkts. especially with the fed or yield that blow ofd. i can't imagine that a tender out for multiples to expand. >> one thing that caught my attention, you liked utilities over, say, community staples if you're looking for a defensive play. even if rates continue higher, which seems to be inevitable now? >> if you say i'm underweight staples, i'm underweight utes, i'm underweight reeds. one of the things you do with a
portfolio is risk management. and i don't mean the amount of risk you can take without getting fired, i mean trying to figure out how to balance rates desire and utilities in the portfolio. i like having utilities more than i like having staples because they don't have exposure to strong dollar, and per unit of availability, per unit of stocks volatility, they're cheaper. they're expensive and absolute terms and clearly you're going to perform with rates back up. but i think they're a better value for the stability than, say, staples are. i'm going to be paired around -- there are things like banks, but it's a risk management portfolio hedge. >> good to see you, adam. thank you. >> adam parker. >> adam parker of morgan stanley. as we head to the close here. >> $1.4 billion to sell going into the closure.
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heading to the last two minutes of the trading day, capping off a big month in the major markets. bob with me for the countdown. only the fifth time in history, the dow gained a thousand points in a month. >> you don't see that very often. >> the last time it happened was in march of this year, so we had it happen twice in this calendar year here. >> that march was when people realized we weren't going into a recession. remember january and february we went into a recession? wrong on that one. >> given the rally we had today, tremendous volatility leading up to the opec meeting here. >> this is very important. you cut oil over $50, revenues of the oil companies are going to go up bigger than expected.
that will be a major contributor to this earnings that we're talking about. >> a huge beneficiary from the election has been the dollar. the dxy, we can show you the dollar index, as sara mentioned earlier, a 14-year high right now. >> and remarkably, the dollar strength hasn't been a real deterrent to what it has in the pa past. >> the 10-year up sharply since the election. we're at 238 right now. we were at 130, as memory serves me, back in july. >> remember, they need that yield curve. >> speaking of this, i didn't ask for this, but if we have freddie mac orph fannie mae, bi day for them as steve mnuchin.
huge moves up in freddie and fannie for the month. we have new highs on many energy stocks and bank stocks. tough tough stocks is he. welcome to the "closing bell." i'm sara eisen in from carol he have nz. . the russell 2000 all closing lower. the nasdaq was the real underperformer. big cap tech got pretty hard
today. >> naming steven mnuchkin as press secretary and aaron rodgers as for your money. joij us on the panel today, we have scent olg. carol roth is here, and fbb commerce to talk about this market. boy, if you would have said -- first of all, you maybe would not have predicted. the optimistic at a time. >> hard to attract that ahead of time. but said you want to is the
narrative attached, incoming trurp administration if r and r. when you dumb and all the rest of it, the market in general, had already got there. the market probably shl, more i i it's a republican house of representatives running it. >> she's just ready to go. >> we're making the stock market and the government great again. and i think that while a lot of the commentators didn't necessarily sthaemd prmd people
really looked at the people being put in place, the fact that the republicans do, like you said, bill, have control of the house and the senate, that they're actually going to be able to mike that nshl. i think there are a lot of people who were really, really optimistic in a way that couldn't fully. i think it has to do with the senate and the house. the factor that has changed, and the only thing we know aside from all the static right now i'm very curious to hear your thoughts on what transpired.
are you buying into this or not right now? >> we're more buying into it. rear low on he can with it is. . people who get the spread on the interest rate. >> how do you explain that, susan? syst system. many are worried about the future and several of them missed the boat. >>. we don't know that yet. i think that in the long term, this will be a great thing for t the. i do think in the short term,
though, we do have obviously a fed. we have the potential fundraiseren right-hand were i'm more optimistic chblt the small business owners i'm talking to are more optimistic and people tend to be op if i kmisk the la last. >> if anything changed about those tax tack ix would furl i don't know that anyone is going to pencil in the proposed tax structure we're looking at. what the market is contending with is not just what these policies might be, but these policies are are come ago long at a time when the economy was
quickening a little bit, at least on a temporary basis. you had 3.2% in the third quarter, you're tracking somewhere close to that in the 4th quarter. earnings were edging toward the top line. you might be getting helped from an economy that is seemingly needing it less. >> we have earnings from a company called boblx. a drk adti roadway, what were the earnings here? >> they reported revenues of 1.8 million. the lern the earnings coming in a nickel short. other important metrics. on billings the company came in at 104.12 million, beating a streak. the stock, however, is going down, minus 4.6% at the moment. we'll continue to dig into these numbers and continue to see where that's coming from. back to you guys.
>> aditi, thank you. >> it had a decent run, it's kind of picked up off the lows. not really a box. >> now the dow is not moving. it's doing the stutter step. let's talk about oil and oil prices. they soared today after an agreement with opec to cut production. >> analyst 1.2 million darrells a day, and are you part of this bound wagon to get all these.
>> most of them are in the middle east led by the saudis, but a lot of countries that have historically cheated, essentially, they don't really have the flexibility to do that, whether it's financial or just people, that sort of thing. we're pretty optimistic most of this can come through and markets can continue to balance as we go into 2017. even though stocks are up for today and the end of the year, we think it's a great time for individual investors to buy many energy socks. >> what i almost bought which was by the. it didn't really twiblg oef. it's not really the swing partner it's supposed to be. it doesn't really move the needle economically.
>> look at that, we never because this matters so much in the economy, and i think we did break the link between s&p 500. >> well, we think oil prices will continue to rise through 2017. and i think moving into the 50s is the way to think about it, the opec decision today should accelerate that a little bit. kind of an average price, kind of in the mid ufd, a continued upside frr the. >> who would you buy here? >> i would look at the global kapz which should grow faster than oil. we think the did i have dernld a
cash generating. on the u.s. side, auto the shell side, there was more uncertainty of what goes on there next month. we think they'll go back to offense real quick. if you're looking for a little. susan fullton, would you buy oil? >> iwe've had a position every day. >> is that a dividend you like? >> the dividend and the fact that it's a reasonably honest oil company. it's not like exxon there's nothing worse than somebody who fudges their books. >> i always have to chuckle when
everybody clears collusion. i find that to be a musing. but that inside, i think he doesn't rely on the inclusion. you have to look at somebody really going to be 5 and v. i'm curious from bryan's perspective active he it teams. these are are people likely to stoik this long term. >>. i was. and they're just trying to pump out what they can right now. they actually agreed to a small kelt. it's not like we have this huge extra capacity to allow this
country to i can't think back up, a& we'll tli to get them balanced in 2017. >> that seems to be in today's sale price. suzie fulton. treasury secretary stooe our post. one of the most important things is equalized growth, and i think we can easily get 4 poirnt 278. >> and could trump's poe pose to terz can you see. budget office director hold bill plus former congress tech dale
our most important priority is sustained growth, and i think we can get gdp. to get there our number one priority is tax reform. this will be the largest tax change since reagan. >> that was treasury secretary steve mnuchin. >> i had a cabinet meeting with he and william ross on. that was pretty cool. >> mnuchin was giving his plan for a stronger economy. which stocks stand to win in that kind of environment? joining me with their picks, david nelson is here with us from post 9 and chris farrell from regional capital is here also. david, are you finding value as this market gets away? >> it's pretty tough to come on this show with this meteoric run, and some of our sectors
have gone out of control here. but i'm going to talk about names retail investors may have forgotten about. delphi automotive. they talk about electric vehicles, and i get that, i understand that. but what they don't understand is a lot of these outlying companies, they moved forward. it was just last night that intel was going to do a test regarding driverless urges. >> the big trend from growth to value, that's going to play well for this company year to year. >> you do have one, it looks i can, election related pick which is defense stocks. >> yeah, that would have done well regardless of who owns this. it's nice to have some portfolio insurance, and i can tell you at some point in time there will be likely, unfortunately, some sort of terrorist event in this country, and it will be one you
look at in your community. >> chris, you like, among others, goldman sachs that just had a stellar run since the election. you still like it at these levels? >> bill, i still like it at these levels. i turned my piks in overnight and it was sort of, when we look at the repeal or the restructuring of dodd-frank, that was basically in the capitol market space like having a pillow fight. there wasn't any longer a bare knuckles brawl in the capital markets. people were fighting with pillows. when they take those pillows off, who is my money on? it's with goldman sachs. they're the ones to figure out the stuff we see. the. >> david, given tax reform is so
important, one of the things is we have these big cash hordes overseas. do you know if there is a plan to recover that cash? >> about half of the s&p 5 million. i think the big question is, what will they do with it. there sflob investment in h and d to goose their own pay. >> mike and i debate this always. >> we talked about this earlier. >> we talk about it every day, mike. zpz now, they've skewed more toward dividends and buybacks. >> i can show you the chart. how much money for buybacks in the last five years? >> it's been half the market
move. >> we could do dividends and special dividends all day long. >> maybe it's because he's picking two companies with a lot of cash overseas. what would a microsoft or a pfizer do with that cash taxed at 10% that they couldn't otherwise do tomorrow by going to borrow the same amount of money. >> what they're going to do, because we looked at mark. microsoft has more than enough cash to by repatriating the cash they have. they need to get it off the books. the tax is artificially there. once they get it off the books, that's going to help their earnings a whole lot.
. you're basically saying, i give up. i have no idea what to do with the money p. i think there is okayed nif dends. i hope not, byebacks, because the sthaes. >> if the company doesn't have a good investigation. in a month the market went up so. and the new administration and the new congress is going to mean for its. so many other sectors are up but large cap techs are flat to down.
and i think the cloud. microsoft has real furnd. that's where their cash is piling up. i see it as a really bright future in the coming years. >> i like microsoft. we own the stock itself. there is a lgt company out there called amazon that might have something to say about it. >> i do a lot of work for kaiser, so the fact that small benefits bik. p. there is nothing like a good old-fashioned, knock-up dragdown. donald trump nominating two key members of the cabinet
today. coming up, we take a look at the impact of s frk. meanwhile, m we are capping certain markets. later on the closing bell. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the k anymore.
welcome back to "closing bell? ". a pair of retail earnings to report here. the company that makes tommy klein, tommy hilfiger. revenues also stronger than expected. however, the guidance for the fourth quarter is weak on both earnings and revenues. they say they're taking a prudent approach to planning holiday, and they are not experiencing a significant improvement in traffic and spending in tommy hilfiger in heavily traveled tourist areas. if we can switch gears and talk about special retailer guess, they actually did miss for both their earnings and their revenue was reporting 11 cents in earnings. we're looking at 14 on light revenue. they also are forecasting weak revenue and growth for the
fourth avenue. it will have a four-year plan which includes closing some of those stores when offers expire. >> thank you, courtney reagan, for both of those reports there. steve mnuchin says tax reform is a priority. we'll tell you how low rates could go and whether that will result in jobs and a boom, coming up. using billions of data points. and working with medonic to predict the highs and lows of diabetes, hours in advance. and i am worki with orreco to use biomarker data to boost the peormance of athletes. hello, my name is watson. working together, we can outthink anything.
show you how wall street closed today. the dow was up 200 points. the nasdaq fell down to 1% on the day as they continue to lag in the market and the russell down five points. but a lot of them capping off a very strong month of november, sara. >> the dollar shot up past the yen, you forgot to mention. the best for that pair since 1979. >> thank you.
>> bill should have seen that one coming, sara. here's what's happening at this hour. three protesters in france found themselves guilty of violent conduct in protest. prince's estate is worth about $200 million, according to a new court filing. it's the first time a specific estimate has emerged publicly following the singer's overdose death back in april. police in pensacola are looking for two bold thieves. they stole an atm. they released this video showing two men wearing ski masks, tying a rope around the machine. a few minutes later, there it goes. it's ripped from the floor, smashz the glass on the way with alabama and west virginia leading the way.
more than 60% of the population in those states has been diagnosed with this condition. 8% of the population diagnosed with this disease. so it was a mixed picture on wall street today as you saw earlier as investors wait to find out who president-elect trump will nominate for some more key positions. now we're waiting for secretary of state and defense. a mr eamon javers drew the short straw today. eamon jav ers? >> we saw barique farrar showed up here trump tower. he has been asked to stay at the trump tower. he got his start working as
chief counsel for chuck schumer in the united states senate. schumer, of course, a democrat. schumer put out a statement today saying donald trump had asked for his opinion and that he endorse the but then as you say, we are still waiting on the picks for bentz. . here's what we know about his background. he was in the marines from 1972 to 2013. he retired as a commander in u.s. central command. his nicknames include mad dog mattis have the. the most likely pick appears tovsh mitt romney. he had dinner last night with president-elect trump yesterday.
factor in the pain, he said. he is very, very smart. i'm afraid when it comes to foreign policy, he's very, very not smart. now i wonder remembered sfrmd. we had another discussion about affairs throughout the world, and these discussions i've had with thim have been enlightening and engaging. a big product, guys. >> you mejs. >> 1980 when the campaign was. many. they call the plan voodoo economics. then when president reagan chose him as his running mate, they asked him about that statement and he said, gee, i wish i hadn't said that. so i bet ronnie is in a fm fm.
>> now we're seeing it and his campaign finance chair nyaa. >> any deductions we have by income taxes will be off set so there will be no tax cut for the upper class. there will be a big tax cut for the middle class, but anything we have for the upper class will be less deductions. >> that was big news. joining us on more what to expect is the man who knows hashes. he's also the former director of the congressional budget office, and he joins us now with our very own cbc editor robert frank. dug, is that even possible to in
stell the math really understands up namd. there probably aren't enough deductions out there to make that absolutely break even for everybody. it's an sbes srl. the best thing is to turn into the campaign mode of talking about how great it would be and getting past the reality that you'll have to pass a very specific piece of lenls lags, through the house, through the nat and a lot of. doug is being diplomatic. let's put a fine point on this. it's impossible. all of the analyses of this plan say the p 14% cut and the fiddle
to see that those deductions are going to upset the capital gains, the amt going away, the corporate tax going to 15%. mathematically there was no way. >> i said the upper class. who i thinks how he's dwinl that. we'll set you -- does that mitigate some of the gains that the upper. i'd say three thijz r thingd. it obviously depend on where you draw the ind inz. i was on a campaign.
i know how much work it was putting together those two campaign proposals. they tell you where someone wants to go, they're aspirational in lore. . efforts on capitol hill. and the new job that will face mr. mshlgs nuchken. the business community you is co cone. >> fom. >> the place i'm concerned with, i'm not going to critique a non-plan, but the place i'm concerned with and i hope we have a voice, again, comes back to entrepreneurs and small business owners. we heard a lot about corporate tax reform, but the reality is 9.9% of all business ted tease
plus things like the self-employment tax. so it's really. with small business owners to make sure that legislation makes sense for them as well as these big corporations. >> so the trump plan is a very specific plan. i don't agree with doug that there's no plan. it is a very detailed plan, pass-through income being a key component taxed at 15%. >> it has to get through congress, too. >> absolutely, but here's my point. the trump plan and the ryan plan are very similar with one exception, that the corporate tax rate would be 15%, and in the house with the ryan plan, it's. i don't know, obviously.
i think the house plan is a good starting point to think of where an actual piece of legislation would evolve. i don't think they're all that similar. the trumpt plan had a worldwide income base. the house plan does not. the trump plan is borderline and something worth doing. these are decline and strti'm ready to step back. there are congresss that have to legislate, and i want to see who makes the first move. is it the house or does the congress sell up a plan? how do they sell this to someone who has a deeper interest and a tax code. >> we have to go. robert frank, as always. the diplomatic judd aiken
joining us today. dominic chiu. >> the company just declared its semi-annual cash dividend is going up 78 cents per share from a prior 71 cents per share. that means if you kind of project forward, the new dividend yield about 7.5%. it used to be 7.3%. they did set their annual share time march 8, 2017 in denver, colorado, you guys. >> not seeing much action in the after-hours. >> that's money not going to capex. >> i don't think they'll be short on roller coasters at upgrades of any of the national parks. >> they're just kind of bringing the dividend up, i think keeping it steady with cash earnings growth. it's never been a big yield stock. it's always yielded 4.2 spae%.
and when we come back, how trump stock could change the yield in stock. >> jim daugherty will be joining us and what he expects in the trump administration on trade. you're watching cnbc, first in business worldwide. 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.
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than moving it to mexico after striking a deal with president-elect donald trump. phil lebeau has details for us. phil? sfwlz we' >> we're headed to that plant after donald trump has a victory meeting there, so to speak. those plants are not going to be closing. according to david faber, his reporting sources say they'll leave a thousand workers at those plants. they did get inducement from the state of indiana, though. we don't know what those inducements were. this deal was brokered by vice president-elect pence. remember, faber still has many contacts with the department of defense, and it was probably implied you don't want to start off on the wrong foot with the
trump administration. for perspective, united technologies, otis is 21% of the company, pratt & whitney, that's a quarter of the company, aerospace, 25%, and then carrier falls into the largest share of the company, 29%. remember, it was less than a week ago that donald trump tweeted out, working on a deal to keep those workers employed in indiana and now they've closed that deal. he'll be there tomorrow, we'll be there as well. we'll let you know what some of those workers have to say. no doubt, guys, they are relieved that some of them will be keeping their jobs. >> you wonder what those conversations were like between vice president-elect mike pence, presumably donald trump as well. thank you. it's not every day we see future presidents calling up and talking companies into staying in the u.s. his opinion on how to approach trade in president-elect trump's administration. >> everybody talks about tariffs
as the first thing. tariffs are the last thing. tariffs are part of the negotiation. the real trick is going to be increase american exports. get rid of some of the tariff and non-tariff barriers to american exports. >> let's talk about wilbur ross as commerce secretary. for reaction we're joined in this cnbc exclusive under bill daly who now manager of gentile capital. nice to have you back. >> thanks for having me. >> what do you think of wilbur ross as commerce secretary? >> i think it's good. the secretary has a personal long-time relationship with the president himself, so that's an enormous advantage. second of all, he's been in multiple businesses, has seen the good and bad of a lot of
different industries and the difficulties internationally and he's been a strong advocate for a different trade policy. the truth of the matter is probably trade policies that are more historically close to democrats than historically close to republican positions. so it's an interesting pick. i think it's a good one for the administration, and he'll be -- the third thing, he'll be an important senior person on the economic team. so when things are discussed, and he is there, he'll be listened to. a big advantage. >> mr. daley, one of the things wilbur ross has said is that he's basically against, and mr. trump is against these big multilateral regional trade deals. he said all trade deals should be bilateral, sit down, figure it out country by country. functionally speaking, is that possible? how long might that process take? >> well, that can take -- obviously the advantage of trying to get like ttp, 12 or 13 countries together, is that you can negotiate in a room with a
relatively small group. if you're doing one on one deals, you go and do a separate deal with the chinese, a separate deal with japan -- that's not only taxing, you've got a lot of similarities when you look at a region like asia that you would like to be able to take advantage of. obviously a world trade organization deal, they have failed miserably at a global deal to be done. that's the ultimate way to do it, and i doubt that president-elect trump or secretary designee ross would want to get back into those negotiations. they failed miserably at doha. so the idea of individuals country by country, we'll have issues there. it's easier said than done, in my opinion. but i admire him at this point
in his life if he wants to try to do 30 or 40 different trade deals individually himself a and i trade thgd, which obviously election, obviously tariffs is one thing he brought up. but the big issue there, around things like intellectual property protection, how difficult do you think that is going to be to get the kind of deal that really opens up a market like china that would be absolutely tremendous for businesses in the u.s. to have access to? >> well, look, we have tried -- as long as 20 years ago, when i was secretary of commerce, to try to push that constantly. to get more exports into china. exports have grown, but obviously the difference between what we export and what they export to us is dramatic. and has grown every year. so it's easier said. i heard mr. ross this morning talk about tar i was is the last
thing, he is right. but that is the hammer, if you're thinking you're going to get a big deal and a tough deal to more a country like china. that's your hammer. and if you're willing to use it, if you're not willing to use it, pardon me, then you've got a very weak hand to play. but we all want to push and open china. but it's not as easy as some people think, having been part of negotiating with them. >> always good to see you, mr. daly, good for you to joining us. bill daley joining us, today. all right a cap on the mortgage interest rate tax deduction. but treasury secretary designate, steve mnuchin said today the trump administration would lower that limit to help offset the income tax cuts they're talking about. the potential impact on the housing market is coming up. and still ahead on "fast money" tonight, the stocks sinking today. but a top technician says they're about to join in on the trump rally. he'll explain why.
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up next, how trump's plan to lower the cap on mortgage interest deduction could have a big impact on the housing market. that's next on "closing bell." the greatest population shift in human history is happening before our eyes. sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential.
as we know, donald trump has promised to lower taxes for all americans and treasury secretary designate, steve mnuchin appeared on "squawk box." >> diana olick has details on how that could impact the housing market. diana? >> reporter: well, first, the mortgage interest deduction is already capped at loans up to $1 million, if you're married and filing jointly. $500,000 if you file separately. that said, the median price of a home in the u.s. is just above $200,000, so not a lot of people make it to that cap. still, this deduction is wildly
popular. a hot potato that lawmakers really don't want to touch. and they would have to pass any changes. interesting that it's so popular, given that only 62% of adults own a home, and of those that do, one-third do not have a mortgage. but let's get to the basics. the vast majority of the benefit from the mortgage deduction goes to people who earn more than $100,000. these are the least cost-burden homeowners. let's say you have a $500,000, 30-year fixed mortgage at 4.5% and you're in the 33% tax bracket. in the first year, the deduction saves you just over $10,000 in taxes. so what if the trump administration caps deductions at even $100,000. well, you're total interest payment was only about $23,000 a year. so it doesn't affect you on just the mortgage, which is one of the biggest deductions for most people. and again, most loans are not that big. still, the deduction is a big seller for home builders and real estate agents trying to
convince today's young rent-loving americans that home ownership is a good deal. and with mortgage interest rates now going up sharply, that's more money in interest flying out of your pocket, so you're going to be looking for more savings. back to you guys. >> diana olick, thank you very much. they have tried this before, but they haven't paired it with tax cuts, income tax cuts at the same time. >> not part of the package simple any occasion. what i do find interesting, not that i'm this cynical, but in those markets where you have the high-value homes, a lot of blue states. >> not only that. when you're talking about costs, those are the houses that have tremendous property taxes. so when you look at overall cost of ownership, it's not just the mar mortgage, it's what you're paying in property taxes and in states like illinois. >> and mortgages rates are rising and set to rise further. >> it will be interesting if the housing market was not really phased by some higher rates, given the fact that rock-bottom rates had a recovery but didn't exactly take off to the old
highs. >>. >> got to go at this point. carol, safe trip back to chicagoland. >> thank you. >> go bears. >> go cubs, she was at the game. >> i was. >> we're having such a good game, we're going to do this again tomorrow. >> maybe we'll match. >> and will match, no doubt. >> here's "fast money." see you tomorrow. ♪ money money money money >> another record day for stocks as the trump trade continues. and americans making big money. get this. since the election, the s&p 500 has added more than half a trillion dollars in market cap. $587 billion, if you want to be exact. but the dow and s&p hitting record highs during today's session, the dow posting its best month since march and the gains are fueled by these comments by trump's nominee for the treasury secretary, steven mnuchin on "squawk box" earlier today. >> our number one priority is tax reform. this will be the largest tax change since reagan. we have talked about this during the campaign. wilbur