tv After the Bell FOX Business December 7, 2016 4:00pm-5:01pm EST
folks, we can call it, the dow, the s&p, the russell 2000, all-time records never-before-seen. [closing bell rings] dow transports are coming along with the record party. they too are clocking a page in the history books. connell mcshane, melissa francis hire for "after the bell." take it, guys. >> huge rally on wall street. stocks surging on final minute of trading. we have new records for dow, s&p, russell 2000. it is all you. connell: i told you yesterday. i'm connell mcshane in for at least one more day for david asman. this is "after the bell." the dow ending higher by almost 290 points. that is the biggest gain of the month. we're within 500 points of dow 20-k. look at that we have big news that you would think would drive oil price higher but it did not. phil flynn has the task explaining that which he will do
but first, adam shapiro picked a pretty good day to go down to the new york stock exchange to do some reporting. this is a big one, adam. what drove it? reporter: you could get a thousand different answers, traders were talking about very big program buys, one for one billion dollars for s&p futures. that was part of it. you saw the dow transports, they are up tremendously. some think that is real legs to the trump bump and trump rally. bottom line it is expensive market you but it didn't stop. we hit records. home depot up 3.2%. nike up 3.2%. ibm up 3%. american express up almost 3%. this will be the by the way the 12th record close for the dow since the election. 21st record close in 2016. some of the losers today, we can't ignore them, pharmaceuticals. johnson & johnson off 1.2%. america down 3/4 of a percent. eli lilly down almost a full president. that is because president-elect
trump was quoted in "time" magazine, he was named "time" person. year. he thinks prices are too high. he promises to lower drug prices. back to you. melissa: thank you, adam. oil tumbling down more than 2%. we saw a surprise drop in weekly inventories that should have sent prices higher but they did not. how come? >> basically where we look at oil prices in cushing oklahoma, prices actually rose. there was a little bit of offsetting effect that the headline number was down but oklahoma was up. that offset the bullishness. the selloff today is concerns about this opec-non-opec accord. the word came out that both russia and oman are on board. they are going to adhere to production cuts. the problem the other 14 countries that are at this non-opec, will show up on saturday. so far will not commit to any production cuts. so there seems to be a little
bit of concern russia and oman can't use persuasion to get non-opec countries to cut production, that the whole deal would fall apart. a lot of producers we're talking about, some of the production is not that large anyway. so it won't take that much of a production cut. some production like mexico will fall 10% any l anyway. that is a little bit after concern. time to take profits. back to you. melissa: there is brave tack after the meeting when everyone gets together. we'll see. connell. connell: talk more about the major average, red hot. melissa: look at that! connell: election, 6% on the dow. melissa: amazing. connell: s&p which is a broader measure, 4 1/2%. nasdaq four. russell -- melissa: look at that! connell: smaller stocks, 12 1/2% since the strump win. we're joined by jonathan hoenig, capitalist pig hedge fund. fox news contributor. get jonathan's take on the trump bump.
shelby is here from the journal. guys, who is taking this bet? the 20,000 on the dow by the end of the year, like 20,000, for the holidays, you know what i mean? >> way things are going, yeah, why not? connell: jonathan, do you think it is going to happen? >> the trends tend to persist. this was a bull market before trump was elected. it has been more expandable market up 300 points. 20,000, what is in a number? statistically not too far away. connell you saw 700 new 52-week highs and maybe only 70 new 52 week lows. best indication this bull market rolls on. connell: it can roll on, shelby, as liz was talking at end of her show about valuations, look at the that line at the end of the dow chart, you can continue to go up this much at this type of a pace or are we getting ahead of ourselves here? >> the big question, how will the market absorb a coming rate hike?
is that something baked in? is that something investors are putting in. a lot of policies investor reacting to have not been put in place yet. trump right now has to put miss honey where his mouth is and prove his policies will be good for business. a big question mark is limited. connell: he actually, on personal level missed out on this. he missed the stocks. >> he sold them in june. connell: what about stainability, jonathan, before we move to another topic of this trump rally if it is that? we know it is great now. is this a long-term stock market-friendly presidency, do you think? >> well, i think, unfortunately with president-elect trump it depends. connell, one. sectors not participating today for example was pharmaceuticals after donald trump's quote about believing that they make too much money. same thing with biotech. we saw similar price action with hillary clinton. big winner under the trump
presidency so far is trump related stocks. goldman sachs is up 30%. apple is slack. that's the big story. connell: that is the thing. shelby, you wonder whether or not it is just being driven by to some extent optimism i guess about a change in the political landscape versus fundamentals of american companies, or maybe we needed to let the companies be unleashed and this is part of it? i don't know. >> part of it is unleashing. lower taxes and decreased regulations are huge for businesses. but at same time trump is touting pro-business policies, at same time singling out certain companies and singling out certain industries. he hasn't laid out policies for the 35% tariff he will charge at border. or who he would exactly charge. yes we're seeing a big rally. seeing people react to the overall concepts of pro-business policies. we don't know. there are a lot of questions remain. melissa: president-elect donald trump scheduled a tech
roundtable meeting for january 14th. inviting peter thiel, a lonely staunch trump supporter. you remember that. he will play a role mending wounds between the tech ceos and president-elect. jonathan, talk about people who have been on his hit list and apple has been flat. apple has taken a lot of flak from him, whether related how they didn't help in the investigation into various terror suspects or in san bernanadino or his criticism of their offshoring. now foxconn is looking doing production here. he is very tenuous relationship with tech. i wonder who they will send to this roundtable? >> why does the president have a hit list of american business owners? liz, that is a little head-scratching, he said on sunday weekend shows he will intervene on day-to-day basis when it comes to american companies. unfortunately we have new political risk.
used to be regulation from the democrats. now almost a tweet risk. will your company be on the president's i don't know, you know what it rhymes with. companies on his list when you wake up because one errant tweet can send your stock tumbling. melissa: shelby, i don't know. i think it's a little bit more thoughtful than that he is sending a message. he is sending tone from the top. listen there are carrots and there are sticks. i understand business. i understand the cost of doing business. i want you to do business here. i will make the environment better but you have to work with me. i mean i think that's what he is saying. wouldn't they be smart to come to the table and hear what he has to say and tell him what they need in order to make business more profitable here? >> yeah. it will be very interesting to hear what they talk about and who actually shows up. as a matter of fact who doesn't show up might be just as telling but, we know that he sent out this invitation. we don't know exactly who is on the guest list. regardless, tech companies will want to have donald trump's ear
when it comes to things like robotics or putting autonomous vehicles on the road. they want to talk about immigration, h1b visas. that huge for tech companies. donald trump attacked a lot of tech policies which is why peter thiel was only one that showed up for him. connell: relationship between business and politics, the "time" warner-at&t hearing today with a lot of people watching in washington with the ceos getting grilled as you might expect but they stood firm in defense of their proposed merger. watch this. >> if you put our two companies together, the combined market cap, depending on day you look at the market is 300, $350 billion. as we talk about size and significance of size in a deal like this we have to recalibrate what size means in this new world. we're half the size of most of the companies providing competitive threat to our core businesses today. connell: jonathan, what do you
make of that argument, a, and, shaking your head already, what do you think of deal given criticisms we heard of president-elect trump? >> i think the criticisms are what is frustrating me. deals are something that the private sector does, not something the government is involved doing, certainly not blessing deals. antitrust law, it is impossible to be pro-freedom and pro-antitrusts because antitrust law is micromanaging of the economy by any other name. it is totalitarian, not objective why i believe president-elect trump loves it. connell: fair enough for now. we'll come back to the topic and some others. good stuff, by the way, jonathan, as always. shelby appreciate it. >> thanks. melissa: donald trump already proving he is the master of "the art of the deal." former head of the cftc bart chilton said he was pessimistic on trump's ability to get stuff done but not anymore. he joins us in a fox business exclusive. connell: three more names announced to join the trump team.
we'll look at who they are and what they will bring to the potential roles. melissa: high-profile meeting continue at trump tower. speaking with outspoken democratic mayor, rahm emanuel as he fends off criticism of a divided america. >> i didn't divide them. they're divided now. there is a lot of division. we'll put it back together and we'll have a country very well-healed and be a great economic force. we'll build up the military and safety and we're going to do a lot of great things. s already ie s already ie to reach my goals. so i liked when my doctor told me that i may reach my blood sugar and a1c goals by activating what's within me with once-weekly trulicity. trulicity is not insulin. it helps activate my body to do what it's supposed to do release its own insulin. trulicity responds when my blood sugar rises. i take it once a week, and it works 24/7.
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meanwhile, barry switzer, former dallas cowboys coach, i said that wrong, switzer, i got it, thank you, joking with reporters he is running for quote secretary of offense. that is a good one. fox business's blake burman on the scene with the latest. blake? reporter: switzer did have some phenomenal oklahoma teams. i don't know if he would be the secretary of offense but one heck of a coach. let's talk about though, what just came in here in the last few minutes and that being a senior transition aide telling fox that mr. trump, the president-elect, has settled on his pick to head the environmental protection agency. that being scott pruitt. pruitt is the attorney general of oklahoma. this is one that will likely be talked about on both sides as climate change, that issue certainly gets heated and passionate. pruitt for the most part has been against just about most everything that president obama and his administration tried to put into place as it relates to climate change. for example he has called on the
paris agreement to be canceled. the department of homeland security is another position that is one, that appears to be coming into focus at least. fox news's jennifer griffin spoken to retired four-star general john kelly, who told jennifer he has been offered the job to become the next secretary of the department of homeland security. kelly was in the military for some four plus decades. at one point he was in charge of southern command, basically put him in control of south america, central america, the caribbean. that announcement has not yet been made official even though kelly was offered the job. he said it would be an honor. the one made official today, came within the last hour, u.s. ambassador to china. that going to the iowa governor, terry branstad. might seem out of left field. the iowa governor the chinese ambassadorship. however branstad has a very deep relationship with the chinese president xi, they have been
acquaintances 30 years. that is official. tweets and comments out of here from the trump tower and campaign trail from mr. trump as it related to china. branstad and xi are friends. it should make for fascinating diploma sy, melissa. melissa: we'll talk about general john kelly later in the show. lots to talk about, blake, thanks for updating us. we appreciate it. connell. connell: "time" magazine honoring him as its person of the year but that honor did not come without mr. trump being called out as being the president of the divided states of america? that is on the cover. so that is a shot? sabrina schaffer joins us independent women's director and richard fowler, syndicated radio show host and fox news contributor. is it a shot, is sabrina?
>> that is accurate depiction what is happening in the country. i hope some of the rifts will be closed as we talk about sensible policies that will unite americans through greater opportunity and job creation, economic growth. and i think if you read the article and sort of looks back at all of the candidates who are talking about this problem, who are in fact maybe encouraging it. we have to remember that over the last eight years president obama has done a lot to pit americans against one another. i think that is what we're sort of now seeing in sharp relief today. connell: here's what the president-elect when he was on "the today show" this morning had to say about this, that idea you were talking about, the divided states. here he is. >> i think putting divided is snarky but again, it's divided, i'm not president yet. so i didn't do anything to divide. i will say this, i have now gotten to know president obama. i really like him. connell: so that does bring up a larger point, richard. you know, you could go back and forth whether he did something
to divide it or not but his point about getting to know and like president obama, he went on to say he has spoken to the current president, even consulted him about some of these cabinet selections. what do you think of that? >> well, i think that is smart move by donald trump. if he really wants to bring this country together, president-elect trump will have to appoint individuals speak not to the right america, not to the left america but entire united states of america. now one of those picks seem to pointing that way, a lot of them aren't, the pick of hhs secretary kelly which you guys talk about later in the show. he is somebody who is sensible, that believes we have, believes drugs is not criminal problem but a public health problem. he is one pick. but on other hand, picks like betsy devos which is absolute opposite of that. what trump has to do, string of very, very tough needle, right. connell: right. >> trying to find candidates or appoint ayes that speak to all americans -- appointees.
you remember this one thing, hillary clinton did win popular vote even donald trump won electoral college. connell: this is coming in, rumored being made official, sabrina, mr. trump intends to nominate linda mcmahon, formerly of the wwe, to serve as administrator of the small business administration. so, what do you think of that? >> i actually think that is really interesting. this is a woman who is in charge of the world wrestling foundation, made a run for senate herself and developed a big name for herself. i think it is great to see some strong women with sort of liberty-minded principles. sort of at the helm. goes to richard's point we'll have diversity of a cabinet and that is important. not only because we need to sort of unify the country, but for any president, you want advisors around you who are going to challenge you, who are going to make you look at things in from different perspectives. connell: right. >> i think that is excellent thing he did not have a unified,
sort of unified advisors. connell: will bring up, richard, that argument we had number of times before about the wealth in donald trump cabinet. miss mcmahon is a wealthy woman. i'm not sure if that is good, bad or indifferent. that is what people talk about, right? >> absolutely. she is not the only pick. betsy devos will run the department of education. she not only never went to public school, never went to her kids to public school has no idea what happens in public schools. donald trump, if he is for the american people and really wants to make america great, he will have to pick some candidates, pick some appointees not millionaires and billionaires. >> i think somebody, personal bank account is sort of, at the bottom of my concern. connell: right. >> first of all -- >> top of mine. >> this is crazy. someone like betsy devos thinking about how individuals will get more control and ownership of their education dollars. >> wait, wait, wait. >> that is something wonderful around i think that we want to --
connell: out of time, guys. >> used billions of dollars to support programs that believe in conversions therapy for lgbt people. i have a problem spending her money with policies that make no sense. connell: we're running out of time at this point. sabrina richard, thank you guys. thank for rolling with breaking news. melissa, we have more of. melissa: costco reporting first quarter results. adam back to those numbers. reporter: couldn't hear you so clearly there. let me give them to you. revenue, it is a miss. 28.1 billion. the street was expecting 28.3 billion. earnings per share was a beat. street was expecting a $1.19. let me give you idea what was going on. revenue up year-over-year. 27 billion, membership fees, $630 million. a year ago it was 593 million. they reported that not too long ago they have added what was it, one million new costco accounts in just six months.
so you see that reflected in the stock was up 2%. right now in the post-market off almost half a percent, not quite. year-to-date, down 6.5%. melissa, back to you. melissa: adam, thank you for that. connell: bargaining for better business. the president-elect looking to create strong deals to boost the ecomy. what should we expect on that? bart chilton is hear and will weigh in on that. melissa: a look back as we remember the tragic pearl harbor attack 75 years ago today. ♪
president-elect donald trump is looking to get rid of wasteful regulation, just as he is pushing for better deals with major u.s. corporations to enhance the economy. bart chilton, former commissioner at the u.s. commodities futures trading commission and dla piper senior policy advisor. thank you so much for joining us, bart. there has been a huge battle brewing people who feel they're free market economists and don't like what donald trump is saying and others say we don't have a free market right now. we have a lot of disparity between places in terms of regulation and taxation. it is not a level playing field as it is, and donald trump is trying to make it flatter. what do you think? where do you come down? >> the markets are proving, melissa, they're doing really well. as you reported earlier in the show, the dow reached a record high, 19,500, best record ever. we've seen similar things, cme
group in chicago for financial futures. last week at the new york mercantile change. melissa: that could be based on hope. that could be based on good feeling and emotion and not sustainable. people worry that is the case. why do you think that is not the case? >> i'm not saying that it is something sustainable. i get concerned also that things might be a little bit overheated. look where we came from, melissa. people thought. i was one of them quite frankly, that the president frankly, president-elect before he was elected he was really not going to be that great for the economy. he was so shoot from the hip, there were many things that he said, his policy positions weren't clear but he sort of did a metamorphosis. monumental metamorphosis in my view. he appeared presidential, like deal maker in chief now. i think that has given confidence to markets. the question whether or not he can go further, right and do things in the longer term, not just these one-off deals. melissa: right. let me ask you about that. do you think they're one-off
deals or do you think he is setting an example but sort of picking one company out but saying look, you keep jobs here and i will make it better for you to do business here. i will follow through in the long run. one thing you focus on he has to produce a lot of energy, so energy is cheap for businesses trying to work here. we talk about regulation and taxation. but do you think they are one-off deals or he is setting a tone? >> i think he is setting a tone. i wouldn't be surprised if this continues throughout his administration. quite frankly, even though i was a government guy for 30 years, more power to him for taking things up. i'm glad he is doing out of the box things. he will run into headwinds inside of the beltway here with d.c., with rules and regulations and bureaucrats. i think it's a big thing. whether or not he gets to the big picture issues, like tax reform, infrastructure, half a trillion dollar infrastructure bill he proposed, if he can get
to those things, those create jobs and they will move the gross domestic product that would be a great thing for the economy and a great thing for the country. melissa: bart, when i talk to ceos, all kinds of business people, that manufacture overseas, they would rather do business here, because when they manufacture overseas there is hidden costs. there is leakage when the thing doesn't work out in the factory the way you thought. there is all kinds of problems with transportation or inconsistency with the way the product turns out. the difference between regulation and labor costs and all things you have to go through. if you make price disparity flatter or smaller businesses would prefer to come home or is that a myth? >> that is a good premise i agree with it. he says, where is the beef. we'll get rid of regulations. what is the list? you and i talked many times over
the years about dodd-frank, something i worked for years on. i won't suggest every part of dodd-frank is great but dodd-frank saved us, large financial institutions to take huge risky bets that got us into the huge economic debacle we're currently trying to get out of. i don't think that people voted for mr. trump want to get rid of protections from the risky bets of large financial institutions. i know they're out there but we want to see the beef. melissa: want to see more meat on the bone. bart, thank you for your time. >> good to be with you. connell: more breaking news coming in. in is new video. mike pence, president-elect is arriving. trump transition team making announcements today, number of announcements. maybe more to come this evening. vice president-elect on way moments ago through the revolving door.
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so this trump bump or trump rally continues to roll on and there is a look at it. the dow up more than 6% since the election. s&p 500 as well by 5%. look at russell, by 14%. the dow is now up more than 1200 points, if you want to look in point terms, melissa, since donald trump won last month. melissa: wow. adding another general to the administration, the president-elect expected to choose retired general john kelly to lead the department of homeland security. this is coming on the heels of trump's formal announcement of his intention to nominate retired general james mattis as secretary of defense.