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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  January 17, 2017 3:00pm-4:01pm EST

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lose, off about 95 points, hopefully it will bounce off of that as we get into the close in the last hour of trading. financials leading the way lower, they haven't been this low since brexit. big week coming up, thursday, live from d.c. 2:00 p.m. eastern as always, and friday night come out to the ball with me. i will there at the inaugural ball beginning at 8:00 p.m. eastern. liz, over to you. liz: breaking news, remember at this time yesterday, trish, i told 3u 1 democrats were refusing to attend the inauguration, that number has just increased in this hour. now it stands at 54. 54. you got to stay tuned. because this number is constantly changing and causing waves. the markets entrenched in red at this hour. stocks are caught up in this game of where's waldo when it comes to future policy being made by a new breed of leader, modeled on donald trump. here's one of these new sheriffs in town.
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the uk's theresa may taking a page out of donald trump's book. are we seeing a new generation of leaders who said unapologetically i want it all and playing for one team, the home team. the new way of doing business is moving markets, you need to know how to anticipate it also your portfolio doesn't implode. we'll tell you. donald trump's cabinet pix entering the lion's den, congressman ryan zinke of montana taking center stage on capitol hill as he seeks to become next secretary of the interior. billionaire betsy devos heading to the hill in two hours, wilbur ross and steve mnuchin with fireworks almost a given. none of the candidates is getting approved without a fight from democrats who are looking to roadblock not just the cabinet names but the president-elect himself. 54, that's the number of members of congress, democrats
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refusing to attend friday's inauguration, and as it climbs, moment by moment, we're talking to the california congressman who is deciding at this hour, he's in meetings right now, john garamendi deciding whether he's going to go. he's going to come out of the meetings and talk to us and you. it's a fox business exclusive. you don't want to miss it and his decision. plus the car so hot that ford waited until after the detroit auto show to unveil it. we've got it. the big media industry marriage that could hinge on a bigger breakup. less than an hour to the closing bell. the dow is down 100? when did that happen? let's start the "countdown.". >> i want to remove as many barriers to trade as possible. >> i want us to have reached an agreement about our future partnership. >> i also want >> i also want. >> i do not want but i do want. liz: listen, she wants it all
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and not apologizing for sticking up for her country. does this sound familiar? a leader who makes it clear it's time to make a change for the greater good of the nation at least as the leaders see it. uk prime minister theresa may unveiling 12 point plan to escape the european union.nts t immigration into the uk. she thinks that will help british citizens get better jobs and even threatened the european trading bloc saying any punishment the eu hands down to the uk because britain leaves would be calamitous. she united states is don't make european businesses poorer to make your political point. the market reaction was swift. the currency in the uk immediately muscled up. looked at pound, hit a $1.23, the biggest spike since 1988. may taking a page out of president-elect donald trump's book. plain spoken, forceful ideas,
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untested ideas but the theory is what's been tried hasn't been working. trump snapping teeth at the u.s. dollar, his own currency saying it's too strong especially compared to china's yuan and killing us making products too expensive for foreign buyers. boom. the dollar plummeted on that. and as you see right now, all the major currencies are trading higher versus the u.s. dollar, the euro at $1.07. canadians are wondering what happennext to the lune, the no apologizes but the way i see it leadership proves for exciting times but moving stocks faster than ever and making it harder to invest. to the floor show, traders in london, new york stock exchange, cme and nymex are keeping eyes on the news wires right now. the i want leaders like donald trump and theresa may are changing the way people need to invest.
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how do you win when it's gyrating everything from currencies to stocks? >> absolutely. this is the new era. this is an unprecedented era and it is a time for you to make a decision because when you incur a move in the currency markets, we're not used to the moves. the volatility index tells you what volatility we are going to see in the coming days as well. the move we have for the currency especially the 3% move, it is very much clear when you look at volatility for sterling dollar. one month volatility at the peakest point since the bank of england made a decision. you have to be careful. before the speech today, we were looking at the currency and we said okay, we are seeing a lot of momentum coming into the market, and we have seen a level which is already broken, from a weekend and it is pretty much clear, okay, the move is
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one way and it is towards the upside, and theresa may said, look, i'm not going to apologize, i'm going to come out ofhe eu and this is the way we're going to do it. and traders like the move, and that is pretty much the reason we have seen the massive move, 3% rally in the currency market. it is not something that you see every single day. liz: they like it if they're on the right side of the trade. john corpina, how much more difficult is the job of you and our viewers that have a ford or a boeing, because the boeing ceo had to show up at trump tower today and kiss the ring. how much harder does this job become? and what do you as a trader and investor do? you have to watch the news flow more? >> definitely a lot harder. we'll see a lot more volatility in the beginning stages of the new administration. the headlines out of europe today continue with the headlines that we get out of president-elect trump, is going to add uncertainty as to what
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the landscape is going to look like moving forward. harsh words, you said it on the lead-in. miss may taking a page out of president-elect trump's book, she's saying this is what i want and how i'm going to get it. similar story out of washington soon, assignments that works, sometimes it doesn't, it's about how you portray the message, but we'll have to see real results out of washington and see it coming out of london too. liz: okay, let me tell you something right now. the s&p is at session lows, down 11. the dow is close to session lose, down 107. elliot warren, donald trump hasn't turned attention to saying anything positive or negative about oil. he wants to open up more drilling and wants to make sure oil coanies have a lot more access. that means more supply, lower prices. >> you know, liz, seems donald trump says a lot, and people are reacting on everything that comes out of his mouth. to me, it makes no sense.
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today he says the american dollar is too strong and the thing sells off. if you're selling dollars or buying foreign currency because of rambling he happened to have today, i don't think you're giving much thought to things. i think you have to take a long view on the things he says, saying something today is not doing anything about it today, that's getting anybody else to do it. i think you buy the dollar if he's saying that. it's not making sense, not like he's president yet. he can't magically change everything on the first day. it seems like there's going to be a big difference. liz: excellent, excellent advice there. >> i agree with what elliott is saying, but in a strange way we've become programmed in a short period of time to watch twitter, to watch social media to see what is this guy going to say next and the ripple effect going to be of it. unfortunately our society has programmed us to think we need to trade that way.
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liz: larry, you got to embrace the reality of the market, maybe we're forced for better or worse into being more day traderish. we don't like that at fox business, we're not going tick-by-tick. >> don't be a day trader whatsoever. it's bad news, it never works. let's manage expectations properly. >> i completely disagree. i completely disagree. >> based on -- based on nominal growth and anticipation of trump. at some point the complexities are going to become reality, realizing that abraham lincoln, george washington, no one can add much added impetus to all of the complexities we have in our economy, so therefore, yeah -- liz: it's a long, long process, especially when you get to things like unwinding brexit and doing corporate tax reform. how is her speech being received?
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>> i think her speech is still very much unclear, people don't know how the reaction would be from brussels. i disagree with one of the guys that day trading isn't the thing you want to do. day trading is the place you want it to be. you want to trade the volatility. >> good luck, good luck. good luck, good luck. liz: one of the best floor shows in a long time. >> don't do it! >> liz, i have a question for you, the trump rally and once he's in office the market sells off. liz: historically -- >> is it really a trump rally? liz: that tends to happen and we get down to nuts and bolts. >> exactly. liz: and see if there is steak behind the sizzle when it comes to the promises. guys, thank you very much, our thanks to you. so to donald trump's latest i want or should we say do not want, we know he wants tax reform but not the kind his own party is putting forth.
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trump criticizing a signature piece of corrate tax plan whicthe p initialy pitched as alternative this proposal for new import tariffs. so the part he hates, the border adjustment tax where goods are made elsewhere and tax coming into the u.s. but american made exports are not. trump is slamming it as being too complicated but blake burman you're at the white house. how is this going to work? is he already at odds with his own party, who's got the upper hand here? >> at odds with his own plan. this is a plan house republicans put together. you mentioned the border adjustability tax, it subsidizes u.s. exports while taxing u.s. imports. republicans say this is an item that essentially could raise about a trillion dollars over ten years and pay for a lot of the tax cuts they've been talking about as well. however, there is clearly one republican critic at least, and that being the president-elect.
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mr. trump in an interview with the "wall street journal," he called this borderer adjustability tax complicated and went a lot further from that. quoting from the president-elect -- now that puts him at odds with many house republicans. one of the house republicans who is for this and been out front with this is kevin brady, he wrote an op-ed a week or so ago earlier this month in favor of it. here's his pitch. he says -- in that journal article, the spokesperson for the house speaker paul ryan was asked about this, tried to downplay
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this, liz, saying look, with imports with, taxes how this is all going to work, ryan and the president-elect are speaking and something they could work out. time will tell. liz: you know, it starts to look like goods made overseas are going to be a lot more expensive coming into this country. better wean yourself off the gucci blouses, blake. >> i just want an umbrella. forget the gucci blouse. liz: give me an umbrella that works that doesn't invert when wind comes through. blake, thank you very much. when donald trump took a stab at the dollar, he slashed the sector that's done the best since election day. closing bell ringing in 47 minutes, and the dow down 90 point. it's the financials getting slashed. jpmorgan, goldman sachs, the two biggest losers on the dow right now, languishing in that little corner above the markets after donald trump complained about the powerful dollar.
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they're not the only ones, wells fargo, bank of america, citi, morgan stanley swinging in the red despite the biggest father quarter profit since the financial crisis. while they're the biggest losers in the s&p, the group is up 15% since election day, far outpacing the s&p return since november 8th. the hot rod of the future as automakers around the world race to put out the dominant vehicle that blows away others. hold that curtain! we're about to show you the car that was too good to be unveiled at the detroit auto show. it might take your breath away. you don't want to miss it. "countdown" coming right back. dow down 91. at angie's list, wee there are certain things you can count on, like a tired dog is a good dog. [ dog barking, crashing ] so when you need a dog walker or a handyman,
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all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. . liz: what started as a trickle is a tsunami. we have just added one more, making it 55 democratic congressmen and women who say they are bicycling the inauguration. boycotting flat-out. not showing up. for a host of reasons, there are 13 californians coming up in just a few minutes and getting them in the chair. he's having a meeting deciding whether he will go. that is john garamendi. democrat from california. it will be an exclusive. it will be a first. we'll find out what he's
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decided. in the meantime, if the democrats don't like donald trump's heavy hand, imagine what ceos trying to merge with other companies think of it. donald trump h btrying to insert himself in the decisions or weighing in. for example, with the at&t-time warner merger, donald trump and team are making noise they don't like the deal. to the analyst who says she knows the one key that will open the door to this deal. bring in jennifer fritschi. thank you for joining us, what's the key? >> thanks for having me, liz. the key is talking about how good this deal is for the consumer? and on paper it is a vertical integration, so it's going innovate, foster innovation. liz: let me hop in. at&t says it will foster competition, won't shut out others in the market.
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there is one piece, one key, if you will, that you say will open the door to a merger and get donald trump to approve it? >> i think cnn is clearly a hot button, that has been the talk about, for lack of a better word, as to how to get around it. although i think at&t's ceo pointed out just this morning, i'm not sure how that creates a less competitive environment, and president-elect trump's mind, bigger seems bad, but if you look at key piece of cnn just because it's been a very hot button for him especially this week, that could be part of the resolution. though the legal reasoning from behind it seems still somewhat unprecedented why that would change it. liz: well, he doesn't like cnn because he feels that they've been tough on him. let me tell you something, there was a very, very harsh point within these walls where he was harsh on fox. he did not like fox. >> true.
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liz: he's picked on other networks. however, it's just so that our viewers know, there are about 90 people who work here who used to work at cnn and about 85 who worked here who now -- we all cross party and network lines, we go where the jobs are. the fact is if that holds it up, do you foresee at&t shedding cnn or spinning it off to get the deal done? >> i think they could do that. i there is probably other levers, preventive pull, more fiber investment, infrastructure investment, other buzz word in president-elect trump's vernac la that would come up and probably have more influence in the consumer, which in the end is probably better. liz: somebody's got to blink here, it sounds like. who do you think? >> that's right. that's right. i think at&t if we look at this just from a d.o.j. and
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precedent-setting vertical integration, i think they have a very strong case. impact is precedent setting if this was denied if no other vertical integration or merger. liz: the comcast merger went through, i guess it comes down to the department of justice, who runs it, waiting on hearing if that's jeff sessions and we'll be watching all of it. thank you so much. >> that's right, thanks, liz. liz: wells fargo senior analyst saying the key is cnn, she thinks maybe it's at&t that blinks and sheds it. 48 minutes before the closing bell rings, the dow down 89 points on tuesday. dow 20,000. i didn't bring the hat down today. no chance. boeing ceo joining the kiss the ring parade at trump tower. blasting the costs of building
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air force one hd-on in what dennis muilenberg calls encouraging meeting with the president-elect. boeing is a dow component, i should mention, it's goldman sachs swamping the dow right now. 53 points of the loss of 87 right now in the dow. you can blame that on goldman sachs. it was just three years ago that ford's former ceo alan mulally joined me to show off the iconic mustang brand and the brand new form of it. today one of detroit's big three delivering on promises but what was so special that ford couldn't make the debut one week ago at detroit's famed auto show. we'll show you the new mustang in new york. "countdown" coming right back. i realize that ah, tt $100k is not exactly a fortune.
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♪ >> every single car needs a little bit of as i called it earlier design botox.
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look who is here with the crowd gathering, alan mulally, the man behind the design botox for beautiful brand new ford. >> 50 years ago in new york city at the world's fair, ford revealed very first mustang. it changed the world as you know what a juvederm for ford mustang. that was ceo alan mulally in front of our studios in 2013 geeked up for the mustang reboot. ford said we can do better but reveal it not in detroit but new york city. gary tell lou revealing. we pulled the curtain and froze it. this is behind you. this thing is too hot for detroit? >> f-150 and bronco coming couple years. a lot of people still like sportscaster in particular. this, the mustang is the best-selling sports car in america.
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has been for couple years. three years into the new model. they have update. sleeker look up front. it will be the most powerful mustang gt ever, with 5-liter v-8 engine. automatic transmission, 10 speeds and high-tech and cool technology for the driver as well. they have gotten rid of gauges on some models. they have a digital display so you can move the tachometer and speedometer around if you like. it will help you steer between the lines a little bit and pedestrian detecting, automatic brakes, somebody steps in front of car stop itself but you should be pay attention. liz: i had a mustang a long time ago. didn't look like that. didn't look like that after i drove it to high school. it was used and a butte. how many cup holders that is all i care about? >> two cup holders. i'm not sure if the back seat has them. they will build this in the same
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factory where they announced they will invest $700 million to build autonomous cars and electric cars in coming years. in 2021 probably they will have the mustang hybrid. first time they do that they talk about millenials. the guy tells memillenials like mustang. about 30% of their sales go to people in the age group. liz: they like them. can they afford them? gary, thanks for showing us the brand new mustang, beautiful new vehicle. shiny. much nicer than the one i had. closing bell 30 minutes away. dow 90 for the dow. down near the low of the session, 110. not gorgeous day on wall street. then there were 55. started with congressman john lewis skipping the inauguration for president-elect donald trump. 55 members of congress and 15 are from california.
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long time democratic congressman from golden state who got out after meeting to decide whether he will go. john garamendi, will reveal it here exclusively here. more "countdown" on the way. introducing conduent. one of the largest business process companies in the world. whether it's in health care, customer care, technology, transportation or government.
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liz: news alert out of united nations. you can always count on one
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thing for the united nations they never miss an opportunity to bash the one democracy in the middle east. israel's foes on the attack during the security council opening session on the middle east. the 15 members of the council and palestinian, israeli ambassadors, israel's adversaries iran, cuba be venezuela and syria got to deliver addresses. they thanked them for the adoption of the israeli settlement solution calling it extremely necessary. danny danone spoke after the palestinian ambassador said in response told the security council that resolution you sponsored against israel provided inspiration of terrorism. we need more of that. no we do not. donald trump criticized the u.n. in regards to israel, slamming the u.n. and other nations voting to condemn settlement construction or abstaining from voting but trump is the one being criticized today, under
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fire for this weekend going after civil right activist, congressman john lewis. lewis this weekend announced over time that he would not attend trump's inauguration because he does not quote, regard trump as a legitimate president in the wake of the russia hacking scandal. in solidarity with john lewis, our graphic has gotten so big and crowded we had to make two of them. 55 house democrats are staying home this weekend and let me bring in a california congressman who just come out of his meeting, deciding whether he will attend donald trump's inauguration. democratic congressman john garamendi of california. let us hear it, are you going? will you be at the inauguration or will you boycott it? >> i'll be there and i will do my protest on the floor of the house, in committee and frankly on television, perhaps even with you today. liz: okay. so you're going? >> yes. liz: tell me what you think of your colleagues, 13 calfornians
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alone saying i'm not going. for a whole host of reasons? i won't dignify it, dignify him with this or he is not legitimate. what do you think of that? >> well, what i think is that our constitution provides for the peaceful transfer of power. that is extraordinarily important. you don't have to like the president. certainly i have got very, very serious concerns about donald trump which i have expressed in the past and i'm going to express again but nonetheless, the past president, bill clinton will be there. and we're certainly going to see donald trump's opponent, hillary clinton is going to be there. along with leadership. this is an important transfer of power, whether you like trump or not. there is something much more important than trump here an that is, the way in which our democracy functions. trump's going to be very serious problem i think for this nation. certainly a problem for at&t. by the way, listening to your earlier point about cnn.
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maybe this is really about a conflict of interest because donald trump is in the television business. at&t and new cable set-up actually going to make it more convenient for trump's show? i don't know. see the tax returns. liz: you know what? charlie gasparino pointed that out, saying some of his advisors like steve bannon, what could be considered a competitive, certainly a website. cnn's digital footprint is huge and powerful and obviously wouldn't be in steve bannon or "breitbart"'s interests to have that even get stronger. let me put a fine point on this. then we can go to the secretary of the interior candidate here. >> sure. liz: what do you think democrats are gaining by boycotting if negative? because again, if you're looking at what making this country the best democracy on the planet. we have peaceful transfer of power. we may not like it or who got
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chosen but you have to stand by the person in the initial stages how they will do and wish them the best? >> well, we would certainly wish good success all the way around. success in the congress and in all of the other parts of our government. we can be hopeful but everything we've seen, i mean to get up in the morning, 4:00 in the morning to take on john lewis because of his statement, and anybody else raises some real questions about the temperment of the next president. but i'm going to be hopeful and i'm going to be there. i will do my protest in the way that i was lee elected to do by my votes, by my work in committee, on the floor and speaking out on issues on television, any place else. liz: well you're welcome here because we welcome any voice. >> thank you. liz: let me get to something going on capitol hill right at this moment. that is of course the confirmation hearings of ryan zinke to become secretary of the interior a position you served. a lot of people don't know what
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that is. you get to decide allowing drilling on public lands and forest management. do you think this guy has the chops? what kind of skillset do you really need or this role requires? >> i do know zinke. i know him really well. we tease each other uc berkeley football between the oregon team he went to. neither of us was successful. he is also a person that values the outdoors, and the department interior is the most, it is most wonderful of all of the departments because you're dealing with the national parks, the bureau of land management, the management of the forests and the land. it is also a place where can be controversy becae of endangered species act and right in zinke's backyard, the he extt of coal from federal lands. these are issues he will deal with. i'm hopeful, i'm hopeful because of his background, because of how he was raised, and his love
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for the outdoors, and also his love for the public lands. he has fought against those that would privatize the public lands or turn them back over to state governments. i think he will hole firm on that. i think while he will probably have to deal with issue of mining with coal and fracking, not probably, he will have to deal with them, i think hopefully he will do it in a balanced way. liz: that perspective made a lot of people know more about this candidate. i appreciate that. john garamendi, congressman from california. >> thank you. liz: who played might i add and offensive an defensive positions for cal bears, my alma mater. >> go bears. liz: please do something, please. >> be hopeful. new season coming. liz: hope springs eternal for the berkeley bears. great to see you, congressman. >> thank you. liz: fox business will be covering life 5:00 p.m. eastern
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all the drama at senate confirmation hearings, this time donald trump's pick for education secretary hearings for betsy devos. keep it here for the inauguration of donald trump the 45th president of the united states. fox business has it covered on friday from the parade, swearing in tothe inaugural ball. when we dom back, we're 17 minutes away from the closing bell. walmart jumping on board with promise of new jobs here in the u.s. up next, his story from day one, charlie gasparino, how two titans in the fertilizer around fe business are planning to sprout thousands of jobs here in the u.s. but will this promise help them get their megamerger over the finish line? do we sense a theme in this show? charlie breaks it next. "countdown" coming right back. ♪ toms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex.
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liz: let's get to a market alert. three days until the inauguration, president-elect donald trump talking to twitter to tout american job growth. this has been a theme with him. billionaire businessman applauding. general motors and walmart tweeting, thank you to general motors and walmart for starting a big jobs push back into the u.s. that tweet comes after trump's harsh criticism of companies shipping jobs overseas. in a nod to the president-elect, walmart announced it plans to create 10,000 jobs here in the u.s. walmart says the jobs will come from, this is key, previously-planned store openings, store expansions and new e-commerce services. already in the works. they say. shares of walmart up 2%. the market likes it. markets a voting machine. i told you about that before.
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walmart scores brownie points, with two industry titans looking to impress the president-elect. charlie gasparino was first to break the bayer-monsanto news. now you're starting to see fruit bearing from this. >> this, okay, bayer, monsanto are merging. they would like u.s. justice department approval. they would like eu approval. they would like donald trump to like them. one thing they did since meeting with him last week, we understand they were negotiating a deal where they would keep a substantial amount of jobs or produce a substantial amount of jobs in the u.s. particularly if the deal goes through. the deal will have obvious also savings. there will be some cutbacks but the bayer, who is the acquiring firm, is promising this, we will produce 3,000 jobs over the next couple of years. that will be part of an $8 billion spending program,
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particularly in r&d. so what the ceo of bayer and this is confirmed today by the trump transition team, sean spicer, spokesman, is basically saying this. you know, give us the approval of this deal, and good things will come to the united states. liz: there is a lot of horse trading going on. >> right. liz: listen for the benefit of people who might get these jobs, that's great. >> right. here is the sort of dichotomy you and i need to spin forward here. why isn't the market up on this? yeah, some of the individual stocks are, monsanto, we should point out spiked on down day. monsanto spiked on my initial report. for the small investor, you have to ask the viewer why isn't the market up on this? morgan stanley came out with good earnings. why didn't the market respond favorably to that. liz: morgan stanley best numbers since the financial crisis. >> shares are down today. liz: because of the u.s. dollar and donald trump talking down the u.s. dollar.
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>> i'm going to say this. all these sort of, these deals that he is cutting that is good for the workers no doubt, but the stock market is saying that is not enough. that if you veer off a sort of free market program, if you don't do the tax cut, which he really hasn't talked much about, corporate tax cuts and individual tax cuts, if you don't reform dodd-frank and regulatory reform, we don't care how many little deals you cut, they're drops in the bucket when you come down to it, you need jobs and bigger plan. one downside to trump-nomics -- liz: you need the ecosystem. the one-offs are good psychologically. >> we haven'heard ch ecostem, lower taxes, less regulation, since november. here is the interesting thing. look at markets and bank stocks since november up to now. liz: up 17, 15%. >> look at them since january
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when donald trump tweaked his rhetoric from broader ecosystem things and cutting regulation and started talking about walls, infrastructure spending. liz: fake news. >> fake news. and tariffs and attacking biotech companies. the dollar the look at financials since then. not a good thing. that is today i believe, right? they're all down. they should not be down on morgan stanley earnings. i'm going to say this, ladies and gentlemen, you're a small investor out there. i've been telling you this. i don't tell people what to do with their portfolios. i would just be really cautious until you see exactly what type of economic program comes out of the trump administration. is it going to be a program that cuts taxes, that lessens regulations, that is very free market like everybody thought? liz: finds a way to pay for it. closes loopholes. have to pay for this stuff. >> not even that. are you going to be a, not a free trader? go after certain companies you don't like? that will, that will scare the
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hell out of the markets and i am telling you,. david, the markets should have been up today. there is no reason why it should be decoupling from bank stocks. morgan stanley had phenomenal earnings. that should be good for bank stocks. yet the market is down. that's an achilles' heel. liz: goldman shaving 53 points off the dow's loss. they are responsible for 53 dow points. >> you need make a case to take profits i dot care wha everybody else said, every time that thing got close to 20,000, there was algorithm that kicked in and kicked it back particularly after the new year. investors don't like other part of trumponomics. liz: charlie breaking it here. if you own health care stocks today, there is question whether you're in the money. names from tenet healthcare and lifepoint, hca. these three jumping on donald trump's promise to replace obamacare and to provide, quote, insurance for
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everybody along this same theme charlie and i were talking about, picking winners from a day-to-day basis. we've all seen trump move market with a single tweet but what will his policies do for your portfolio. sean o'hara in the house, revealing the best way to play trump's presidency right now.
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liz: charlie and i were talking about this, calling for tax reform stat. eninvestors say it is the key to boosting s&p earnings this year. making reform imperative. pacer etf president sean o'hara, i guess, charlie and i were saying we have to see proof in the pudding. imagine we see tax reform. what should we be buying in advance. >> let's understand it is already baked in. earnings are 170. it is tr 130.
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articles say tax reform is worth 25% on earnings. if we don't get it that is a bad sign. look at companies that generate free cash flow. they benefit the most f we lower taxes more things they can do with toney, pay taxes, buy compans. return money. we love the cash cow indexes theory. we have u.s. version goes under the ticker cows and global version, gcow. one that is in both portfolios is cisco. 12 1/2 billion dollars worth of free cash flow. 3.5% dividend yield. they are growing their dividends, over 17.5 times. they are smack in the middle of internet of things. liz: you got cisco, what fits into the cash cow, that will be animal that moves people's portfolios? >> airlines right now. they screamed into our product, they would not be normally
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investor favorites. nobody likes the airlines. liz: they are scary. >> i'm flying 30 years i used to know which flights were empty and which were full and could pick my seat. i haven't beena flight in five years that isn't completely full. passenger up take is growing by 7.6%. if they get the passenger growth, then all of sudden they look like decent play as well. liz: sean will i see tax reform this year? all i heard last year both republicans and democrats wanted it. >> 16 guys got laid to waste not giving this guy credit, president-elect trump. they didn't give him a shot. i may not bet against it. he may not get what he wants but he will get a deal done. we'll see how big of a deal ultimately gets done. that will determine -- liz: will that get us to dow 20,000 we're not seeing it now as we come up against the closing bell. >> perhaps. save, i make a hat like yours. we'll come wear them in together
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when it gets 20,000. liz: duck pick off the number once it happens. not today. [closing bell rings] we're off the lows of the session. dow off 54 points. never was in the green, nor the s&p and nasdaq. there is the closing bell. david, melissa it is yours for "after the bell." melissa: stocks ending the day in the red off session lows as bank shares taking a hit on wall street, following further from dow 20,000. take a look at that, 19,829. i'm melissa francis is food -- good to have you back. i'm david asman with "after the bell." this is very busy hour. it will be very busy toughou the evening just three days, donald trp sworn in as president of the united states. president-elect's team is getting ready mapping out priorities for his first 100 days in office. more businesses are caving to pressure before the president-elect moves into the white house.


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