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tv   Closing Bell  CNBC  December 6, 2016 3:00pm-5:01pm EST

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one percent as the president-elect makes stock investing great again. >> whatever your political persuasion it has been fantastic for the market. "closing bell" begins not right now but in like four seconds. >> hang around. worth the wait. we want boeing to make a lot of money but not that much money. thank you. >> president-elect donald trump says he doesn't want boeing to make so much money off the new air force one. we have responses from boeing and the white house and a look at how this could impact defense stocks. "closing bell" starts right now. hi and welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> that makes me bill griffith. mr. trump announced a deal with softbank, the ceo there, they
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will have softbank invest $50 billion here in the u.s. sprint shares are popping on that news. we will have more on that story that could create as many as 50,000 jobs here in the u.s. financials are up again today. bb&t up nearly 20%. the ceo will join us with his thoughts on the incoming administration. >> and then after the bell trump friend and adviser billionaire tom barrack will tell us how president-elect donald trump is handling u.s. businesses. his view coming up. >> so much happening on that front. >> let's go to president-elect's call to cancer order for air force one. phil lebeau has the latest. >> before the opening bell there was a tweet from president-elect saying cost was out of control for the new air force one. he says cancel the order and followed up with comments in the
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lobby of trump tower. here is what he had to say. >> the plane is totally out of control. it's going to be over $4 billion for air force one program. and i think it is ridiculous. i think boeing is doing a little bit of a number. we want boeing to make a lot of money but not that much money. thank you. >> what are the numbers when it comes to the air force one contract? it is for at least two boeing 747 akt. the budget is $2.7 billion approved by the defense department for the first two years of the program. the gao estimate is that this is going to cost at least $3.2 billion. for this perspective the new air force one which is a pair of planes scheduled for delivery in 2023-2024 time range because the current air force one is 23 years old. by the middle of the next decade it will be due for retirement.
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boeing responding saying we are currently under contract for $170 million to help determine the capabilities of these complex military aircraft that serve unique requirements to the president of the united states. we look forward to working with the u.s. air force. as you look at shares of boeing which they took a decent hit in the early in the day and then steadily climbed higher and now slightly negative. we have not yet heard from the air force. the department of defense in terms of official response to the criticism from president-elect trump. let the negotiation begin in terms of what the cost of these new 747s will be. >> that's the curiosity about this whole thing. we have established that mr. trump is a master negotiator and a tweet like that suggests that
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he is willing to negotiate again a price for air force one. you wonder where the $4 billion number came from as an opening number there because it doesn't pgo with any numbers we are finding. >> it doesn't take long to go from 3.2 billion as estimate up to $4 billion. this country has a bad track record when it comes to defense contracts becoming way over budget, bloated, inefficient and i think what donald trump is saying especially to his base is i'm not going to put up with it on the new air force ones. one reason why boeing shares went positive today probably because people realize there will be new air force ones built. boeing will do that eventually. they are not going to give the contract to air bus. >> thank you. latest on that scrimmage. and then a little while ago sprint shares starting surging
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an trump announced softbank will invest $50 billion in the u.s. let's get to john harwood outside of trump tower with how this one went down. >> reporter: cancel one order rhetorically at least and take another one. that is what happened this afternoon when president-elect donald trump met at trump tower with the founder and chief executive of softbank. they met in the tow skpr then came out and announced that they had a deal to have softbank which has been raising $100 billion investment fund in partnership with saudi arabia to commit $50 billion to create 50,000 jobs in the united states. here is donald trump and the softbank ceo. >> ladies and gentlemen, this is masa. he just agreed to invest $50 billion into the united states
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and 50,000 jobs. and he is one of the great men of industry. so i just want to thank you. >> i like to celebrate his presidential job and commit because he will do a lot of deregulation. i said this is great. u.s. will become great again. >> reporter: that was the biggest meeting that the are president-elect had today but not the only one. he started out his day meeting with kpon mobile ceo who is believed to be a candidate for secretary of state or perhaps just advising president-elect trump on that position. he also met with the mayor of washington, d.c. and talked about the new home for the next four years. and just a few moments ago the president-elect had laura ingram, the conservative commentary who is candidate to be the white house press secretary. if she gets that job she is
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going to become a very familiar face to the entire american electorate. >> i want a front row seat to those exchanges. just going back to your point about softbank the $50 billion, is there any specifics as if these are companies or investments yet to be announced? >> reporter: no. he said that they had committed. he had a piece of paper which expressed the commitment of $50 billion, 50,000 jobs. beyond that he simply said they were going to invest in startup companies. we don't know any specifics. he may not know specifics. he has been in the process of wrapping up this fund. it appears that he is close to doing that. we will start to see where that money goes. >> thank you. john harwood outside of trump tower in mid town. the chief u.s. equities strategist appeared on squawk on the street. here is what he had to say about
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how much attention he is paying to the president-elect and his impact on the market. >> the idea of lower taxes thrks patri rules those will have an impact on an individual basis to have impact on a particular company. broadly speaking it the general theme of the market to focus on the hope, the opportunity set of higher corporate earnings. >> and that it has. equities up sharply. bond prices down sharply as rates rise over the period after the election. joining us right now to talk about it kenny polcari and rick santelli checks in from chicago. it would appear that the post election rally has stalled to some degree here. we seem to have hit a wall even though we do keep hitting record highs the dow is in record
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territory the s&p is very close today. >> the market is up. it is performing nicely. you have to love what has happened in the last three or four weeks if you are looking forward to what the hope of the future is. i wouldn't be so surprised that we seem to be hitting a wall near the highs. the market has moved quickly. it has moved in a straight line so it needs to digest. it doesn't feel like it wants to collapse. it does feel like it needs to digest right after before it makes the next attempt to move higher. >> what about the strength of the small caps? is this one of these indexes you would still look to as a kind of leading gauge for the rest of the market or is it in its own world? >> understand something, small caps are very u.s. centric names. they are not affected to the stronger dollar story that affects multinationals. if we are talking about turn around in the u.s. economy small mid cap names should do very
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well. i'm bullish. i'm very bullish. you hear news like today. you see what trump has done with carrier and sprint and calling out boeing. i think it is great that he has done that. >> we welcome the exchange richard weiss. good to see you. i'm glad you can make it today. earlier this year you had been moving aggressively into defensive stocks but clearly after the election it has been growth stocks that have outperformed at the expense of some cases of the defense. have you changed your investment mix or holding steady on defenses? >> in fact, even with this recent bump in stock prices we are taking the opportunity to back off in our equity positions overall. we are taking profits here as you know and we have spoke many times we have been overweight in equities for the better part of six years. and we see this as an excellent opportunity to back off, take some of those profits and wait
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and see at this point. we have made good returns in stocks, surprisingly good towards the end of the year. we will get a position more conservatively for the coming year and really wait for the economic implications that will fall out of the new administration. >> rick, we have been talking about the stock markets and bond markets. the credit markets are kind of the link here. people talk about how much further could we run, some of these credit indexes are at lows. in other words, they are saying there is no fear in the market, that spreads are kind of collapsing, credit markets are on a tear and is that going to bolster stocks broadly here? >> at this point -- >> go ahead, rick. >> this is for rick santelli. >> i don't know that fear is the driving force. i think the correction in a fixed income market has long been in the waiting room. greenspan talked about a bubble.
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i think it is more about positioning and more about reversal of policy and considering all of that it has moved a lot considering in july it was at 135 and is currently around 240. it could have room. when i look at the markets in general i see a little bit different picture than we would like to paint especially with the president-elect at the epicenter of everything. today boeing was the story. i understand why whole heartedly but there was a time where market movement was how we handicapped how something was. think back to tarp. what is boeing doing today? closing lower 52. high going back to april of 2015 where last week a little over 152. so in the end looking at what is going on with trump i understand but you can't back it up with the money which is all that matters. i think that the markets by
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holding is certainly not a bad thing. after this run you fear big retracements, not side ways to slightly higher. >> since you are looking to take profits from the equity gains we have had, what about the slide in bond prices? do you see value there? >> yes. yes and no. we are certainly not ratcheting up the risk scale here. we are not reaching out in terms of duration or credit risk. shorter term, tips oriented instruments. potentially higher inflation we have to keep the bond investments conservative, as well. >> keeping it conservative in the heartland. good to see you all. thank you for your thoughts on today's market action. 45 minutes to go. the small caps are at an intraday high. the s&p in particular thrks nasdaq. the dow with a gain of 10 and would put it at another record.
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chipotle is under pressure after the burrito maker's co-ceo said he was nervous about hitting the company's 2017 sales forecast. we will look at what lies ahead for the shaky recovery from its e. colicrisis. bb&t stock shot up since the election. we'll discuss what kelly king wants to see from the trump white house. you're watching cnbc, first in business worldwide.
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welcome back. some movers we are watching on wall street. netflix rising. ever core upgrating from hold tosell. the firm raising price target on the stock from the 101 to account for a modestly higher forecast. that stock trading at 124. nike among worst performers in
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the dow. cowan trimmed price target to 54 from 59. the analysts warn that nike's market share losses to underarmunderar underarmer could accelerate. right now we have nike stock at $50.41. chipotle lagging on the s&p after comments made by co-ceo about the burrito chain's sales prospects. >> it has been a tough year for chipotle and the recovery is still not where they thought it would be at this point. that had the market and analysts wondering whether or not they would hit their aggressive targets for the year. ceo says he is not even sure. >> we did not put a target out there. we want to hold ourselves
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accountable and we want to share with investors what we thought would be a respectable year. >> speaking in new york acknowledging that chipotle dropped the ball with customer service thmpt stock is down over 30% over the past year. it is paying for it under performing even since the election where other shares have rallied on hopes that tax cuts means americans will eat out more. one person who thinks chipotle is still under valued is bill acman. this year becoming second largest share holder and according to reports he is fighting for a few seats on the board. stevels addressed saying he spaekts announcements soon and making statements on trump saying the best thing for chipotle is some sort of tax reform in the future. >> that certainly couldn't hurt. >> the best thing for them would
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be confidence from consumers again. they have yet to convince many consumers to come back to the store there. >> they have done everything. giving away free guac, free burritos, introducing a loyalty program. that is not doing the trick. stevels saying every month same store sales have been hard to predict. >> very candid comments from that ceo. susan lee thank you very much. let's get to breaking news on boeing. phil lebeau, what is happening. >> we have yet to hear from the air force. we have a statement from the air force. remember, this is an air force contract with boeing to build the pair of 747s that will be the next generation of air force ones. the air force says we are still conducting risk reduction activities with boeing to inform the engineering and manufacturing development contract negotiations that will define the capabilities and cost. we have budgeted $2.7 billion
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for the fiscal year 2017 future years defense program for research, development, test and evaluation but expect this number to change as the program matures with the completion of the risk reduction activities. a lot of terms there that you often hear with military contracts, risk reduction, trying to work in terms of bringing costs down. the fact remains, guys, historically military contracts are never under budget. it is rare that they come under budget and they often are well over budget. it is that message that donald trump hit on this morning that is resonating with some people. >> i heard robert frank earlier saying that it's possible that mr. trump is looking at his own jet, the 757 that he flies around and feeling like he can get a better deal. >> is that possible? >> there is no way and john harwood talked about this earlier today. no way that the secret service
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would let that happen. the defense capabilities within air force once, some of these features are there to make sure that the plane can't get shot out of the air. let's say there is a pulse following a nuclear explosion there is shielding in air force one so the electronics and communication capabilities will continue with that aircraft. you just can't take any airplane and fly a president around on it. nobody would put up with it. you may not be a fan of him but you do not want the president in anything other than air force one. >> indeed. thanks very much for that update on this story there. we are heading to the close. we have about 40 minutes left. a little lesson. the dow up nine points. >> creeping higher. >> apple losing supreme court battle against samsung which could save samsung a few hundred million dollars. coming up long time friend
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of donald trump tom barrack weighs in on proposed tariffs on companies moving jobs abroad.
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two big stories to tell you about involving apple. the tech giant lost a patent battle against samsung in the supreme court of all places. it was a unanimous decision.
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the justices threw out an appeals court ruling that requires samsung to pay apple for copying parts of the iphone's design back in 2012. a jury found samsung infringed on patents and copied the appearance. today's supreme court decision ruled samsung's violation only involved a component rather than the entire product so threw out the amount of money they would have to pay. the case returns to a lower court for further proceedings. ceo tim cook says sales growth of apple watch is off the charts and during the first week of holiday shopping. cook was responding to new data that research firm estimated a 71% decline in apple watch sales in q 3 down to 1.1 million units shipped versus 3.9 million in the same period last year.
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>> stock is up a little bit today. lot to get to as we head towards the close with about 30 minutes left in the trading session. the dow is in record territory. the s&p is close. nasdaq not close. leading trader will tell us what he is watching into the close. the ceo of bb&t weighs in on his hopes for bank deregulation and tax cuts in the trump era. stay tuned. i got it, dad. ow! ♪ we love to keep them safe. so we made the nest protect smoke and carbon monoxide alarm. it speaks up and can alert your phone if there's a problem. or let you know if everything is just fine. because, ya know, we worry. ♪
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let's go to seema mody. >> i want to draw your attention to telecom. at&t and verizon gaining substantially here. those large cap names at&t, frontier, advisory posting significant percentage gains. verizon with 1.3%. the s&p sector on track for best days since november 22 up almost 8% over the past one month. a lot of attention being thrown into t mobile which did spike just after softbank announced deploying more money into the united states. there is a speculation out there that if we do see less regulation around the telecom
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industry that will lead to higher chance of him renewing talks with t mobile. >> $50 billion will do that for you. >> joining me on the floor of the new york stock exchange. what you are looking at is a future that includes higher interest rates and lower taxes and a group that caught your attention as a result is -- >> home builders. we have seen outlaw home builders. if you look at what corporate tax cuts are going to do they are going to benefit companies disproportionately. you want to get the full benefit. when you look at home builders higher rates means people are not going to get mortgages.
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home prices are going up by as much as $16,000. >> the run rate on new home starts is 1.7. that is historic norm. we are at 1.1. the rate for mortgages is up around -- worried about mortgage rates moving from 3.5 to 4 seems granular to focus on a small section and we have to get millennials out of the home. >> making the case for the home builders. thank you. >> thank you guys. time for a cnbc news update with sue herera. >> the iraqi army pushing into another neighborhood held by isis. iraqi forces launched a campaign in october to retake the second
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largest city and the last stronghold. the new prime minister shifting from his job as interior minister after stepped down to focus on running for the presidency. he handed over the reins. and the man who shot former nfl player joe mcknight has been jailed on charge of man slaughter. he was arrested after being released last week without being charged. and the makers of the snuggy blanket have sued amazon accusing it of trademark infringement for letting a number of counterfeit products be sold through its website. i have a snuggy, a real one. >> are you sure it is real? >> i checked it.
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i looked at the tag. >> are you wearing it at work? >> constantly because it is so cold in the news room. >> big problem for amazon. >> thank you. we have a news alert on apple right now. what now? >> well, you guys were just talking about the supreme court deciding to send the patent infringement case between samsung and apple back to a lower court. the court ruling they may have to pay for copying parts of the phone. the question was how to calculate the amount samsung should pay for their copying. the case has always been about the blatant copying of ideas. that was never in dispute. we will continue to protect the years of hard work that has made iphone the world's most innovative. we remain optimistic that
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stealing isn't right. the case closely watched in silicon valley beyond just apple and samsung. does a patent violator have to hand over the entire profits from the sales of a product if the infringe design only cover specific components of that product. it looks like this will continue. >> thank you, josh. those apple shares up half a percent. bb&t is a bank benefitting from the so-called trump rally. that stock up 18%. we are joined with kelly king in an exclusive interview. >> yes indeed. from one kelly to another. i am joined by kelly king. good afternoon. thank you very much for joining us. this afternoon here at goldman sachs financials conference steve schwarzman said he expected very substantial reversal of financial regulation probably more than he has ever
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seen in his 45-year career. is that something you agree with? >> i think that two aspects to that i think there are substantial regulations to rules that should be and will be rolled back. remember this dodd-frank bill was enormous. there was 2,300 page bill that required 393 new rules. it's been absolutely a huge negative impact on the industry skpm . and then the matter of application of existing rules and new rules. what happens in regulations of all areas including banks is you have the rule and then you apply the rule. both of them, a lot more rules and intense application of the rules. that has been a negative impact. i think he is right. i think there will be a substantial rollback. i think the energy on both sides of the aisle would agree. when you talk to business people
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across all walks of life they will tell you that they have been absolutely inundated with rules from all areas and it is really, really hurt their businesses and their ability to add jobs and grow the economy. >> clearly, there has been a hot of optimism off the back of factors like that in your share prices and for the sectors as a whole. when you speak to your regional heads is that optimism carrying through? is the share price move we have seen justified? >> it really is. i actually for myself i want to know and share with our audience so we polled our 26 regional presidents to say talk to several of your business people, what are they thinking and feeling and saying? it was incredibly encouraging. universal robust energy, very positive and enthusiastic comments like i have been waiting.
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i am ready to invest. i am planning to invest. i will add more employees. these people have been driving trucks for 250,000 miles. they have 20-year-old computers. they needed to invest but wouldn't because of concerns about the environment that we are in. that has changed so there is clearly an immediate sea change in terms of the mindset. does that turn into reality. you will find some of it fairly immediate. the bulk will come once we see changes occur. a lot of hope but it has to turn into reality. >> bill griffith here back at the new york stock exchange. we talked to your predecessor last week after he spoke with donald trump about possibly taking the treasury secretary job which went to steve mnuchin. he would call for elimination of
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federal reserve even though he realized that would not be that realistic and elimination of deposit insurance. would you go that far, as well? >> no. i would not. john and i are good friends. i would disagree with him on that. i do not believe you should think about eliminating the federal reserve. obviously there are changes i would make. i would not go back to the gold standard and i would not eliminate fdic insurance. i think what john is trying to say is it is possibly better but from a practical point of view i don't believe the world and the united states is in a position to make that work. rather, let's talk about balanced regulation. let's talk about making the fdic work the way it was originally
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designed versus having to use it to bail out the other systems like we did in the last crisis. there are many things that need to be improved. >> just to follow up on that you said there were things you would change or improve. what would those be? >> well, for example, i think we clearly need to improve the overall structure of the cfpb which came out of dodd-frank. nothing wrong with cfpb just that the structure is unreasonable. not having any type of government structure makes no sense. and so it needs some form of commission. it makes no sensz for it to have unlimited funding coming from federal reser federal reserve so we need to focus on nonbanking sector. part of the reason we got into
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the crisis is because there was little if no regulations. so we need to think more in terms of not eliminating and blowing things up. we need to think in terms of balance and making the appropriate changes that will make our country better, make our financial system better and make it a lot more effective. >> just to round things off you have a positive view looking forward on the economy and on your sector itself. in the past you were very aggressive on deals. there has been a pause, a hiatus rece recently. are you looking to start that up again? >> we are still on the pause now. the reason we went in is because we had just done four deals about $35 billion which is a lot for us. and we clearly needed to have time to assimilate those and do it well. we have done a lot of merges and
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do it well. we have a lot of back room infrastructure investments we are making to prepare us to deal with a more complex environment to help us deal with digital transformation. we had a lot of things that help support our organic growth which is job number one that we wanted to invest. we will be in the middle of that and will be for a while. there will be a time to think about it in the future but not now. >> great to have you with us. thank you very much. kelly king. guys, i will send it back to you. we are heading to the close with 18 minutes left in the trading session. any change of the dow puts it in record territory. the s&p and nasdaq are not. trump talk. tough talk. tariff talk. they pretty much have the same meaning and the president-elect's position is finding opposition and support in congress. we look at both sides coming up.
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and the time warner at&t proposed merger is moving forward. president-elect trump has already voiced concerns. we will hear from heads of both companies who explain why they believe the deal will win government approval. stay with us.
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caterpillar ceo saying he is worried about retaliatory tariffs in the u.s. after president-elect trump sent out tweets earlier this week about potentially implementing a 35% tax on companies who move abroad. >> jim cramer spoke with jim hayes about that deal that the company made with trump to keep jobs at the carrier plant in indianapolis. here is what he said about that. >> we are going to make $16 million investment in that factory in indianapolis to automate and drive the costs down so we can continue to be competitive. is it as cheap as moving to mexico? no. we will make it competitive because we will make capital investments. it means there will be fewer jobs. >> for more on whether if or when tariffs would be a good idea for the economy or if more companies should be concerned about this let's bring in former office depot ceo and economist
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gary shilling. good to see you both. gary, you favor these tariffs that mr. trump talks about to level the playing field with a country like china that you feel takes advantage of us. but i don't know anybody who hates inflation more than you do. wouldn't these tariffs be inflationary in a big way? >> well, they could be, but i don't necessarily favor the tariffs. i think what trump is interested in doing is trying to level the playing field. he regards himself as the world's best negotiator. i think what he is really doing is throwing the opening gambit out there to see where we go from here. he has been rattling china's cage with his call to the taiwan president. but the facts are that china has basically had tremendous growth
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in the next three decades largely on the back of u.s. consumers. we had a lot of cheap goods from china. i'm not saying that we don't have some subsidies for our companies and so on. china is pretty notorious for subsidizing government-owned companies and all kinds of action. >> steve, your point of view sounds more like caterpillar here. >> global trade has lifted hundreds of millions of people out of poverty. united states only has 5% of the world's population. if we want to continue to grow we need access to the other 95%. trade is a two-way street. we want exports but you can't tax imports. it raises the cost for consumers. number two, remember a lot of imports go into goods that we then manufacture here or reassemble here. it is all interlinked. i completely understand the need
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to take a shot across the bow and mr. trump ran on this. i think it is great from a negotiating standpoint. i don't think we should get down the road here of instituting tariffs. i think we need to work out our differences. there are plenty with china and we have to deal with those rather than trying to come at it through penalties. >> i know it depends on sectors and industries and geography, steve, but the president-elect's dream would be not to have to impose the tariffs but rather have companies here in the u.s. bring jobs back here so they don't have to import the parts that they use for assembly. how realistic is it to expect more jobs to come back to the united states? >> i think we are in the global economy and the supply chains are completely interlinked. you talk about boeing and 777 has about 700 different suppliers that are manufacturing
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all over the world for that one export. so i think what we are trying to do is trying to have more not go over. at the end of the day you have to deal with the underlying issues and those are that we have the highest tax rate in the world. we have a terrible regulatory environment. we have very high cost of labor. we need to work on the policy issues around regulation and taxation and that will be the best thing that we can do to keep our jobs at home. >> we have to go at this point. i wish we had more time. good to see you again. happy holidays. >> thank you both. ten minutes to go into the close. a gain still good enough for record high. we will pair it off at the close. kind of reflects the tenure of the market. our next guest says marketing is right for stock picking. she will tell us which one she is picking when we come back.
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seven minutes left in the trading session. the dow still heading into record territory. any positive close will be a record. joining us on the phone of the new york stock exchange from wells fargo funds. you're a stock picker. are you buying broke or
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defensive? >> coming out of the election a lot of the names that worked well prior to the election were the names that started selling out. prior to the election more so after. there were areas that we were really interested in. those areas had big rallies. >> everybody is jumping into the financials trade and you are backing away? >> we still like the banks. we are still bear. putting money to work is tougher now. we are spreading out looking for opportunities that are under valued. >> you like 21st century fox, for example. >> i think their growth opportunities for '17 are just as good if not better than their peers. they have room to grow with the affiliate revenues. stock is trading at about two point multiple discount. i think that is a name that is being kind of ignored by the market. >> interface is a carpet tile
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company. those carpet tiles that you see in big office buildings on every floor and get lifted up when they put computer lines down. >> we just got a new one. >> they provide those mostly commercial buildings. the company has gone through kind of a tough cycle with low revenue growth. they had some pressures. we think that in 2017 should be set up well for revenue to grow a little bit. there has been a new focus, a new cfo and coo who is focussed on margin improvement. >> good thing they put them in before they focus on the margin improvement. >> exactly. we want them to make a lot of money, just not that much money. good to see you. thanks for joining us. heading to the close with five minutes left we have the closing count down. >> after the bell president-elect donald trump promised to bring jobs back to america and is meeting today with ceo of softbank appears to do that.
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we will get more from the long time friend and current adviser of president-elect, tom barrack coming up. you're watching cnbc, first in business worldwide.
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records. that would be the dow and the russell. the s&p is close. we are about a half a point away. 2213 and change. and the nasdaq is far away there. >> and the big thing is should the analysts and strategists be upping their 2017 earnings estimates? huge fight about this. the numbers are higher. about 10% higher. they have increased before the trump victory. now they are trying to figure out how much more if any we should increase it. david costa was on this morning from goldman. they assigned numbers saying we could have increase in earnings. >> stock of the day had to be boeing from mr. trump's tweet first thing this morning. lost market value right away but then came back. looks like will finish positive. >> can you imagine what they must be thinking? it goes on -- >> negotiations have begun. >> exactly.
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>> the airlines situation, we had [ inaudible ]. >> positive sign for the airlines. we get the record again for the dow and russell. stay tuned now for second hour of "closing bell"." i'm kelly evans and we have another record close on wall street. the dow with a gain of 35 points. closing high 19,251. the other indexes were stronger. the s&p added about 7.5 points and closed about a point shy of its all-time high. nasdaq up half a percent. it has further to go if it wants
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to close at a record. and the russell 2000 a gain of 1.1% today. 1,352 is closing high. that is a fresh record for small cap stocks today. the dow and the russell are giving us a couple of new records here. coming up, long-time friend and business partner of the president-elect tom barrack will join us to discuss everything from softbank's investment in america to tariffs on companies that move jobs overseas. on today's panel we have cnbc michael santoli here along with dennis berman from the wall street journ ljournal. so much has happened since this morning. eight minutes before we -- half an hour before we opened we had donald trump's first tweet about boeing. then we had the thing with softbank. what kind of line would you draw between what happened with the
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administration and closing for the 11th record high. >> on a market wide basis it doesn't seem to be buffetting. but on name by name and stock by stock there is a sense of alert. if you do business with the governme government, if you are a big exporter i think that stuff will matter. when it comes to softbank announcement i think the rules are big round numbers. very few details. we are not sure how much is going to be implemented in terms of policy or corporate actions but it is something you have to be aware of. the market is only about a point below it. i think it makes a lot of sense. it reminds me of august. that might be a concern for pullback. >> a lot of people are saying it's the financials. they are two thirds of the whole thing. it is lop sided like we heard
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yesterday. they have been concentrated and powerful gains. what do you think is happening with the stock market? how much is priced in already of corporate tax reform and what may or may not be headed our way? >> we write the story every day. we basically say perfection is priced in on the bond market side and stock market side. if the growth is real and i talked about this last time i was on, if the growth is real i think all bets are off and the valuations are perfectly justified. it will take six, nine months recollect maybe a year to see if it is advertised as being able to deliver. >> the year on average pace is woeful. joining us from the nasdaq. what would you be buying and trading? >> look around the world and you can see the under performing stock markets are catching up
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and italian referendum was their trump moment. japanese stocks may have the besteps growth any place in the world. i think the currency is probably limited to move a lot lower. globally for sure. i look at health care and the valuations here we know what the noise factor has been. these are few places with growth 10% to 15%. i agree with discussion about financials. people were so under positioned i think they can move higher. doesn't mean you have to buy them tomorrow. transports i think you take a pause there. rails especially. >> let's talk about boeing for a second. it closed higher today. walk us through what you think is happening here. >> if you do the math even if this one contract for air force one somehow can get cancelled
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boeing is already domestic assembler of aircraft. i do think that basically people are taking the initial shock value of my company is somehow targeted by the president-elect and trying to walk back and decide whether it matters. if these are gestures and all kinds of statements of principle by the incoming president about how he would like companies to behave and the tone is one thing. if it is targeting for retribution that becomes a bigger issue. >> i got to agree with mike here on this. i want to grill tom barrack. will he be on set here? >> he is coming i believe. >> most americans agree with what trump says about jobs and keeping jobs here and perhaps there being some sort of public penalty for companies that -- but i do think we need to be very careful about becoming a country by rule of man versus rule of law. >> people argue that is what
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happened under obama. >> may be accurate, too. >> obama said the phrase in a 60 minutes interview. he didn't say any company. he didn't call anybody out. >> i do believe there is a danger that we need to be careful of of companies that don't know what the rule of law is and is subject to the whims of one person. >> if you look at the energy space that is one space where a lot of companies say president obama ran over our rights. if you look at the pipeline those companies say we got the permits for this project. they are just deciding it is not going to go forward to placate constituents. so kelsey said i look forward to the return of law and order. >> perfectly astute observation. that is done nominally through processes of laws and approval.
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>> what were you going to say? >> sounds like we are talking about emerging markets here. what are the rules of the game? that is the first question i ask. the question you have to ask is does this put a discount on american equities? i don't think right now. it is clear we are taking these tweets as being kind of a scatter shot of i'm letting you know what my general views are before we drill down deep and by the way it might be a good idea for you to think about it. that is not a bad way to approach things. i think the market is being rational glmpt is we have to give mike credit for coining tweet risk here. >> sprint shares rallying. it did close off the highs today with a gain of 1.5% versus 6% drop. john harwood is joining us from trump tower to wrap everything up. >> reporter: the president-elect has been trying to make high
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profile demonstrations of his commitment to bring jobs back to the united states in addition to filling out his administration. he did that last week by carrier into saving some jobs they plan to move although a lot of jobs will be lost. he had another demonstration today after meeting with softbank founder and ceo at trump tower. they came out to cameras and made this announcement. >> ladies and gentlemen, he just agreed to invest $50 billion into the united states and 50,000 jobs he is one of the great men of industry. >> i would like to celebrate his presidential job. he would do a lot of
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deregulation. this is great. u.s. will become great again. no specifics on where that investment will come. he said it would be investments in startup firms. this is a $100 billion fund that he has been raising with help from the government of saudi arabia. so we'll see how that plays out. in addition to that meeting today of course president-elect trump met with the exxon mobil ceo and late in the day before he leaves for his rally in north carolina where he is going to announce jim mattis, the retired general as his new defense secretary designee he met with laura ingram who is a contender for the job of white house press secretary. >> busy day at trump tower as ever. by the way, the company clarified as to whether there would be -- people thought what is softbank doing at trump tower
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today? and the idea goes to t mobile. sprint tried to make a bid, felt like it wasn't going to get the go ahead. why not with favor for the next administration. >> market is trying to connect the dots. i think it gets to a larger issue with all the stuff we are talking about which is everyone of the announcements seems to come with an implied carrot or stick either a threat or promise. not just we decided to commit. at $1 million per job i'm glad it is somebody else's money. >> what were they thinking this money was -- the company said it is not about doing deals in the sense of t mobile or something else. to your point, when the first $100 billion fund was announced people's heads were spinning. >> this is largely saudi money. they say they want largely venture capital.
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>> it's huge. >> you might say they will perhaps run up every venture valuation out there in california. >> or stretch it out over how many years. >> put aside all i want to say about trump there is something to marvel at, the sheer showmanship and power of personality. >> seems like -- >> this sounds like levelization to me. you can make an argument that the carrier deal was pro mexico and this is allowing japanese companies the green light to come in and we can do business here. it's semantics on some level. the market should enjoy this because it is saying that rational players who were willing to enter an environment where we may have a different set of rules that were globally friendly. >> kiss the ring. that is the danger to me. that country was founded on not kissing the ring. >> tim, thanks for joining us. get ready for fast money.
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catch the show next hour. they are filling it with interviews from all bigs you see there. that's at the top of next hour. it all starts so stay tuned. we have a quick earnings alert on dave and busters. >> the restaurant entertainment business is rocketing in after hours. we are up some double digits adding to the 22% gains we have seen in the quarter so far because got a monstrous beat. adjusted earnings 25 cents a piece higher than the 14 cents estimate. revenues beating 229 million for the quarter versus estimates calling for 217 million. this is how you gauge the quarter. same store sales, comps up 5.9% way ahead of 2.3% that analysts had penned in for the quarter and raising the revenue outlook
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to close to a billion dollars. >> 11% pop for dave and busters. president-elect trump targeting a new company today. it's been a busy day for the president-elect. first bashing boeing and then getting softbank to invest billions. tom barrack will join us to discuss those big moves and address criticism that tariff threats are hurting the market. plus how trump's plans to roll back the dodd-frank financial reform law could impact the insurance industry. stay with us.
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he just agreed to invest $50 billion into the united states and 50,000 jobs. >> going to be over $4 billion for the air force one program. i think it is ridiculous. i think boeing is doing a little bit of a number. we want boeing to make a lot of money but not that much money. >> i will tell you that united technologies and carrier stepped it up and now they are keeping actually the number is over 1,100 people which is so great.
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>> president-elect donald trump not even in the oval office yet and making waves across the business world already striking deals with the likes of softbank and united technologies. joining me now is tom barrack, founder and executive chairman of colony capital. welcome. >> great to be with you. >> i am trying to plan a wedding of 50. you are like the chair of the inauguration. talk to us about how that is going to work. >> all of the really smart, intelligent people are in the transition taking jobs, worrying about trade and i am the master party planner. >> there is so much that goes into it. can you give us examples or anecdotes. >> it is quite amazing. with this president-elect the theme is that with the people we will make america great again. it's not about the man. it's not about donald j. trump.
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it is about the office. it's about the people. it's about the only peaceful transition of nonpartisan power that happens this way in the world. so it's a moment to heal the wounds, to bridge the divide that we have had. i tell my friends on november 7 we had the privilege of arguing and debating and beating each other up over lots of great points of view but on november 9 the beauty of this country is we need to all unite behind this man and debate on these issues is interesting because we have somebody cureating but give him a chance. this is america and we need to unite. this inauguration will be an attempt to show his personality and seamless blending of all diverse points of view. >> let me ask you to put your business hat on for a second with some things we have seen happen this week. we played them right as we came
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into this segment. this talk about tariffed and keeping jobs in this country, would these be good investments? this idea that $50 billion is going to create 50,000 jobs, that's a million dollars a job. the optics are great. the message is great. is the business great? >> i think the message is that we have to get used to a president who actually does it now. we are not used to that. we have two kinds of things going on. we have a system that has a congressional piece of it which is massive. the president can't do much on his own. what we have now is a president-elect who is cureating and playing at the edges of giving themes and the themes don't have a lot of meat on them yet. i think we have to give him some time to do that. this is nothing unfounded. president reagan if you remember, you are too young,
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imposed 100% tariffs on japanese semi conducters and then 45% tariffs on japanese motorcycles. what has to happen is finally in this president's opinion have action. i think what he is doing is just telegraphing. he is not picking industries. he is not picking on anybody. it's not trying to be one man for all things. he is saying we are going to protect ourselves. we are going to do things differently. i as the president will be opportunistic as well as thematic. thematic is congressional legislation and finding -- >> even as he was saving jobs in indianapolis i think ford was saying it is going to go ahead with the piece of production it is moving to mexico and other companies, too, because their point of view is we still have to survive.
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if we are going to survive and we have to -- united technology ceo was saying the eight track industry moved to mexico. they are just responding to realities. are those going to shift or all about sending a message to the next generation of entrepreneurs? is it more about something inspiring as opposed to literally putting up walls from companies trying to leave the u.s.? >> it is absolutely inspiring. it is really simple. when you are on an airline at 50,000 feet and losing oxygen the pilot says take the oxygen mask and put it on yourself first. he doesn't say take the oxygen mask and put it on the passenger across from you and see how they are doing and then put it back on. so we are at a point where the first step is learning about us. if we worry about us the rest of the world will be fine. globalization is an illusion. people want free trade when it is good for them.
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>> do you think this president is against that idea of free trade as you described it? >> not at all. i think you will find this president is a deal maker. just going to get things done which the world is not used to. we have a palestinian situation that has not moved. you have the saudi arabia alliance. japan, we rebuilt japan. now we have globalization at its best. two of these countries coming back honoring this man. there is not enough detail. he is a brilliant business man and saudi is a fantastic financial partner. what they are doing is just paying homage to the idea that let's bring all of this together. by the way, congress, you have 535 trade negotiators. and these guys are all killers. if you look at trade you have harmonization code that you have to be able to read latin and
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greek at the same time to understand. 75,000 classification. and possible could just impose a blanket tariff without congress agreeing, without at least 16 agencies of the united states agreeing. he has emergency power and not likely to use it. i think it is just a matter of telling the world china you want to play fair we will play fair but intellectual property you have to have trademark protection. on currency manipulation you have to have a phd from princeton to understand what happens. these aren't simple things. it is just the president being a leader and saying the world is going to be great. we are a leader. we consume more than we produce. we have unbelievable balance sheet so we can continue to print debt no matter what people think about debt the level is low. we want to protect the world. when we draw the line we are going to live to the line. i think that is the message.
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>> our housing reporter brings up a good point. is that going to cut into your own business here? single family properties? >> no. i don't think so. immigration policy on the balance basis is good for everybody. some of our biggest business we invest heavily in mexico and south america. and i think just a balanced process of integration with a clear rule of law that everybody understands is to everybody's benefit. >> is garth brooks going to do the song? >> i would tell you but then i would have to do something drastic. >> thank you for joining us this afternoon. >> thank you for having me. and let's send it over to our seema mody for a market flash. >> we are looking at shares of mastercard. the company board of directors increased the company's quarterly cash dividend to 22 cents per share. that is a new dividend, 16%
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increase over previous dividend of 19 cents per share. the company authorizing to repurchase common stock. shares higher fractionally by around a half a percent. >> president-elect trump targeting new company today taking on boeing saying its air force one contract should be cancelled because it is over budget. we discuss whether that is a red flag or just another negotiating tactic. we will ask whether you should still be buying the banks after their enormous post election rally. "closing bell" will be right back. guys, what's happening here? hey nicole, this is my new alert system for whenever anything happens in the market. kid's a natural. 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 kid anymore.
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first president-elect trump took on companies moving jobs overseas now taking on government contracts that have gone over budget. >> was it mike who said the tweet discount? it was in full effect when it comes to president-elect donald trump this morning. the tweet about the cost for the next air force one and followed up with these comments in the lobby of trump tower. >> the plane is totally out of control. it is going to be over $4 billion for air force one program. and i think it is ridiculous. i think boeing is doing a little bit of a number. we want boeing to make a lot of money but not that much money. thank you. >> remains to be seen if boeing
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will make money on this air force one contract for a pair of 747-8s. they are not going to start building these until 2021 or so. the gao last year released an estimate that the price tag will be $3.2 billion. we third this comment from the air force regarding the budget. we have budgeted $2.7 billion for fiscal year for research, development, test and evaluation. expect this number to change with the completion of the risk reduction activities. we will check on in the future what happens with the actual cost overruns that come with this project. boeing for its part said it is targeting the best value for the american taxpayer and pledged to work with the air force which obviously is going to be facing pressure to renegotiate this contract potentially. there have been other cost overruns when it comes to military contracts. not telling you anything you don't already know.
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remember the f-35? at current estimate and this is just one estimate out there the cost overrun is at least $117 billion. then the new navy destroyer. the cost overrun right now is looking to be at least $450 million. one last thing. i have had a number of people say boeing should bring down the cost of this plane and build it as cheap as possible. the guidelines for what goes into air force one and the duplicate 747, those guide lines are set by the security personnel of the white house. boeing doesn't say put this on the plane. that is set by the white house and then boeing works with the air force in terms of saying this is what we think we can do with the 747. >> apparently it costs a bunch of money, phil. thank you for joining us. let's look more closely at what this means for the defense stocks. joining me are john blank and carter leak, former defense
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analyst. thanks for joining us. john, the whole premise of this is that people love defense stocks on the idea that there was going to be a lot more spending under the trump administration. now do they have to recalculate? >> the market today was telling us that basically there was very little daily volume and prices didn't move at all. if anything they went up. if the market took notice it said put the snooze button on. this is just another trump tweet. let's focus on the fact that this is a republic and something that would go through department of defense and congress and senate to get done. >> carter, if not about this particular targeted tweet at boeing, what about the general idea you have this washington post article saying there was a lot of supposed back office waste in the defense department? is there a risk of increased
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scrutiny over spending in defense in general under trump presidency? >> i think so. i think the general public is certainly open to looking at any type of fraud, waste and abuse that might be occurring in defense contracting. this program in particular is not the program that i would have chosen. this is single source contract, cost plus and fixed margin. i would be surprised if this is low to mid teens. so boeing is the incumbent. they can do this program cheaper than anyone. it is disingenuous to assume that somehow boeing is implication is that they are gouging. we will have to see. i don't know where trump might set his sights next, but my guess is he probably looks at f-35 and will have to take it as the facts come in. >> carter and john, doesn't trump have a point? average person in america is wondering why are we spending so
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much money on these programs? >> carter? >> well, i would say and phil alluded to this earlier. these are commercial derivative airplanes but the amount of technology that is going into them you basically rebuilding the airplane and adding a refuelling system and adding antiaircraft type equipment. so they are very complex platforms that are very expensive. i think and i have no relationship to boeing but i'm sure boeing would simply say you tell me what you want in this airplane and i will tell you how much it costs. >> what would you say to that? >> i think kara made good points. you look at lockheed martin where the cash flows out you have to argue both shares are pricing in $12, 13, $14 in earnings a year. that is a really rich stock. donald trump has a point here in the sense that some of these
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margins are pretty rich on the defense contractors if you look at what goes out the door to shareholders. and frankly the stocks meant really strong for not just months or weeks but a number of years. that is his point is when do we start to say that is enough profit? >> thanks for joining us. >> thank you. >> time for cnbc news update with sue herera. >> alaska airlines has won government approval to buy virgin america after agreeing to reduce flight selling partnership with american airlines. it expects to close the deal soon. alaska is the nation's sixth biggest airline. virgin is the eighth biggest. mcdonald's mccafe is getting a makeover. the coffee chain saying changes are to inlewd new seasonal flavors and a rewards program
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through the mobile app. winter is here in parts of the midwest. they are being pounded by december blizzard. in grand forks that city has seen a foot of snow since monday night. parts of interstate highway has been closed and blizzard warning remains in effect. and the yankees will retire derek jeter's number 2 jersey in a ceremony in may. a plaque in his honor will be unveiled. jeter's number is the 21st retired by the team but is the last single digit number to be retired. little quiz for you guys. do you know the players on the yankees who have had their single digit numbers one through nine retired in addition to jeter's number two? >> billy martin, babe ruth rkts mickey mantle. >> yogi berra. >> 8 is dickey and yogi berra. >> very good. >> i only have a few talents.
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>> this is like a whole other level. >> i think you need to buy a lottery ticket because you were right on with that. do the powerball or whatever it is. and pick your own numbers because you did great with that. >> thank you, sue. financials have been on fire since the election rallying more than 15%. has the sector run too far too fast? we will hear from top financial analysts coming up mpt
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. the dow added 35 points when all was said and done to close at 19,251. that is your new high watermark. the russell 2000 to a new record. that is 13,352. we will be watching markets closely. interest rates moving higher since donald trump won the election. the yield up nearly 30% in that time now just under 2.4%. one of the biggest benficiaries has been insurance companies up 25% since election day. with us now for more on donald
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trump's impact on the insurance industry is dennis glass who is ceo of lincoln national. thank you for joining us here. >> thank you for inviting me. >> give us an estimate. the yield goes from 2.0 to 2.5%. what impact does that have on your business? >> the insurance business is simple. we pay claims down the road. the higher interest rates go cheaper products. that is quite helpful. another dimension is when interest rates are low we have the cost on those products at minimum guarantees. margins have been squeezed. to the extent that that gets reversed that will be helpful. >> perhaps a less well known company out there in pennsylvania. i think a lot of people on air right now are wondering if my long term care policy is safe or
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not. what would you tell them? >> it depends who you have your policy with. if it is with -- it is a little difficult. remember there is a backup guarantee on the products that is provided by the industry. and so even if the company goes insolvent in some large part of the benefits that they would have gotten from the company will come from the guarantee fund that is backed by both health insurers and life insurers. >> what are some of the potential deregulatory benefits of a trump administration whether it is being able to i guess get out from understate-based regulation and the standard for financial advisers? >> i think the state-based is in good shape and ought to remain. for most insurance companies that would be the case. i think the state system should stay that way. the federal government has
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gotten involved since dodd-frank for companies that are designated too large to fail. i might add that i don't think any insurance company ought to be. i don't think they are so embedded and connected to the rest of the financial services businesses. >> writing insurance on certain types of corporate debt. >> exactly. that is exactly right. so from dodd-frank standpoint if insurance companies were taken out of that i think that would be helpful. the dol is interesting. i have been in the business for 40 years, the first time an executive branch of the government has had a significant impact on our franchise so let me back up the department of labor came out with the rule. who can argue with the idea that all financial advisers ought to operate in the best interest of their clients? we don't want to be in business to be operating in the best
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interest of our clients. so many things in the dol i would like to see continue, choice, commissions versus fees, transparency, cost and the same amount of compensation paid to advisers for products that have similar benefits and the same amount of education required. >> all that said those are things you like about it but you think that rule still goes. you want it to be repealed? >> we want the things i just talked about i think ought to prevail and be harmonized with the sec and are not just talking about qualified business but are talking about nonqualified and qualified business. one part of the rule that we have objected to, two parts actually. one is right of action. most of the departments have enforcement divisions so the sec has enforcement. the right of action has to be enforced by the plaintiff's bar.
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that is not good for american business. >> the other one? >> the other one is the amount of time it takes companies to invest in technology to be able to comply with the law. i think one year is way too short. what i would like to see is two year delay predominantly from the perspective of giving companies time to do a good job and hopefully something can be done with the right of action provision. >> we know you know how to find your way to trump tower. >> can you get in? >> but we just love the use of the word hasten. don't hear that enough around here. >> thank you very much for having me. banks have been on a tear since the presidential election. the head of goldman sachs financial research joins us with his take on why the sector is so hot and whether you should be a buyer. you're watching cnbc, first in business worldwide.
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financials of all types have been soaring since the election. big names like bank of america, goldman, jp morgan and citi group seeing double digit gains. you can see bank of america is up nearly 30%. today the biggest names in banking are gathering at the goldman sachs financial services conference in new york. that is where we find wilford frost. >> they were gathering. they have gathered and they have all spoken and now we get to hear from the man who organized the conference in terms of key
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take aways. richard, good afternoon. thank you for joining us. sum up the main points in terms of the level of interest you saw from investors in this financials conference and the tone. >> thank you for having us. we had this year about 1,000 people show up today at the conference. that's up about 20% from last year. we have 70 financial services companies presenting and 50 ceos. as you can imagine over the last month the demand to attend the conference has increased with what bank stocks have done. >> the tone we have heard today has it justified those moves? >> there has been nothing negative coming out of the conference today. what investors are trying to figure out is how positive are some changes that you have seen over the last few weeks. three or four things that people are focussed on. rates is the single most important factor. since the election the ten year
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is up. the market is forecasting a much faster pace of fed tightening. that's going to translate into revenue growth for the banking system. and it could reach double digit growth if the fed funds is realized. second regulation is always a very important theme at the conference but this year there is a lot of questions around what could change under the new administration. i would say at this stage there is more questions than answers but there is a lot of focus on why a different regulatory could mean. >> the big positives people are talking to. what might we be missing? >> i think the single biggest concern is credit quality. if you look at credit quality today is this the best it has been in decades. i think there is a concern that as interest rates start to normalize and growth starts to normalize that you could see a
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bickup both in the corporate and consumer sector. most banks said at the moment not seeing anything that is concerning and saying you probably need to see 200 basis points of rate rises before it becomespicks. bank of america already up 30% since the election. still a conviction buy? >> it is. and the reason is it fits very well with a lot of the themes that we're talking about. it is one of the most rate-sensitive banks that we cover. it also has a restructuring component to it. so they're taking out almost 8% of the expense base on 2015 levels by rationalizing some of the back office operations. and they are starting to pick up market share as they invest in the consumer and wealth management services. >> great stuff. we have to leave it there. thank you very much and thank you for having us to the conference today. head of banks analysts at goldman sachs. guys, back to you. >> appreciate the content all day. wilfred frost recapping the day. no secret president-elect trump
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is a huge critic of the media. next, we'll hear from the nation's top media executives on how a trump presidency will impact their industry. stay tuned. mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle.
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welcome back. president-elect trump taking aim at mowing today, giving reprieve to the media industry. julia boorstin is in new york where some of the top media executives are speaking out about how the trump administration will impact their business. julia? >> reporter: hey, kelly. president-elect donald trump has said he would block at&t's acquisition of time warner. ahead of the senate hearing on the deal tomorrow, here are the business insider ignition conference time warner, ceo,
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jeff buick us dismissed trump's opposition. >> it will seem by everyone to be pro competitive, pro consumer, improve competition in advertising with the big digital companies that we know are getting the lion's share of advertising at google and facebook. and more competition in the subscriber choice. >> at&t ceo randall stephenson was also bullish on the deal and he said at&t will benefit from trump's regulatory changes. >> positive development, just in terms of investment and so forth. if you think about the day of the election, there were five or six key issues to the fcc. they're gone, okay? and a republican commission, michael o'reilly are strongly on record against all of those. >> certainly a lot of discussion about what's going to change the new administration. coming up in "fast money," we'll have an interview with ceo beary
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diller. >> julia, thank you. the supreme court cracking down on insider trading. the details of that decision when we come right back. alpha seems more elusive today. is it because so many go after it the same way? chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way, attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential when a moment spontaneously turns romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain,
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welcome back.
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the supreme court ruling today that passing along inside information to a relative or friend is illegal even if the insider doesn't directly profit. it's what constitutes insider trading. a couple years ago they overturned some of the convictions, saying they didn't prove the people had benefited. >> that case was called us v newman and if you didn't have any pecuniary interest, you're free to do if you wish, at least according to the court. the weird thing about the supreme court decision, they ruled unanimously, 9-0 in terms of decisions -- this was a cake walk decision. you don't have to benefit. >> the prior case, though, the one we think of, had to do with whether i as the person am, you know, in trouble if i pass you a tip not knowing what you're going to do. and this is more focusing on the people who received the information? >> no, it's the person who gives
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the information. do they have to actually have a financial benefit to tipping off somebody. so they -- the supreme court said no. that's not necessary. really, the better off requirement is that the person giving the insider information has to know and have a responsibility to keep it secret, right? so you have to actually know that somebody else has a duty not to tell you, and they tell you anyway. whether that person is giving information is directly trading on it or not. >> and then as you said, this was a 9-0 ruling. >> a 9-0 ruling and i think it moves the goal posts a little bit back to the middle here. i think it's going to be a little bit harder to go after some of these insider trading cases. there have been so many lately. but i think this is basically a common sense ruling, kelly. >> 8-0, i should have said. >> sorry, i forgot. down one. >> exactly. >> man overboard. >> in this case, that was not a deciding factor. we'll see what practical impact. >> it's a gift to somebody. and so you get a benefit from giving somebody information that they go off and make money on. >> right. >> so that's why it seems like a common sense connection. >> they might owe you one, even
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though -- >> exactly. exactly. very interesting. so that came out of the supreme court today. guys, thank you so much for joining us here on "closing bell." a lot of news to get through, and the tweet risk remains. >> copyright. santoli llc. >> that does it for us. "fast money" begins now. it is a big night on "fast money." we've got four huge interviews you can't miss. iac chairman barry diller, former leader, nigel ferrage, and we took on trump in a full page "wall street journal" this morning. donald trump taking to twitter early this morning, saying boeing is building a brand-new 747 air force one for future presidents but costs are out of control, more than $4 billion. cancel order. later he doubled down on his statement at trump tower. >> the plane is totally out of control.

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