Transcripts For CNBC Closing Bell 20171128

Missile launch there the last hour or so lets get to eamon javers at the white house to sort this out for us eamon . Reporter were expecting to hear from the president in the roosevelt room at the white house. We dont know what topic hes going to be speaking on. This is a moment where theyre allowing the press pool to come in to a previously scheduled meeting. That meeting was going to be with democratic and republican congressional leaders, but after the president tweeted about the Democratic Leaders earlier this morning and said he saw no hope for a deal with them, the democrats backed out of this meeting. The republicans are still tae attending. The white house says the invitation is still open for the democrats to come to the meeting. You can expect well see a few empty chairs in the meeting where nancy pelosi and Chuck Schumer would have been sitting. The president might address that in his remarks to the press pool which is waiting to go in as we speak. He might also talk about the north korea launch Sarah Huckabee sanders, the White House Press secretary, said the president was briefed even as that missile was in the air earlier this morning about an hour and 15 minutes ago is when we got the first reports of that north korean apparent test launch over japan so any one of a number of topics here to be addressed by the president. Hell be speaking momentarily. That will be on tape delay of course, well bring that to you as soon as we have it. Eamon, thank you. And bill, we should make it clear that we may see headlines come out of the discussion as it happens but, again, no one will have access to the video for this until its over, been tu turned around for us then we can bring it to you. I mean, essentially, washington wall street is washing washington minute by minute here, and i suspect that thats a lot of the rally that were seeing right now the dow has been up almost 200 points in the last couple minutes. Well get to that in a few minutes here. In fact, the big news item behind this move is the Senate Budget committee this afternoon has advanced the gop tax bill. Lets get wrigright over to ylai on capitol hill for us. Reporter the vote in the Budget Committee was 12 republican ayes to 11 democratic neas and came despite the concerns from republican senators like ron johnson and senator bob corker about some of the details of the bill. The vote was quite cursory the hearing was cut short because of the protests you can see happening here behind me and were occurring inside the hearing room as well we heard protesters shouting shame, shame, shame, like you hear them saying behind me, kill the bill, dont kill us. Referring there to the repeal of the individual mandate thats included in the tax bill as well as the fact it could trigger some cuts in social services we even saw one demonstrators accost senator Lindsey Graham and had to be pried off of him as he walked into the hearing room so sththat hearing is now recesd and will have to continue at a later time but the Budget Committee vote does allow this bill to move to the senate floor, and then they can begin that process of negotiation and debate to try to get this passed before the end d of the week. As you can see, its clearly a tense time here in washington. Back over to you guys. Ylan, i want to be clear on something here so the individual mandate repeal was in the bill. Thats in there now, the one that just passed, is that correct . Reporter yes, that is correct. Its a repeal of the Penalty Associated with the individual mandate. Yes. And what were hearing now, Lindsey Graham apparently told reporters a little while ago that if they do include the individual mandate in the bill, that president obama has agreed to continue to Obamacare Subsidy Payments for lowincome people for two years. So this is part of the horse trading thats been going on today to try and get that bill to 12 ayes in the Budget Committee. Reporter theres been support among senators if the individual mandate provision is included in the tax bill, it could show should be considered with the alexand alexander pl Alexander Murray compromise. Insurance Companies Providing services to lowincome households that is part of the condition for some senators, including susan collins, for supporting this bill. How far along those negotiations on the health care side need to be for them to vote yi on the tax bill, that remains to be seen ylan, for now, thank you, ylan mui on capitol hill. We now have breaking news out of the Commerce Department Hampton Pearson has this story for us hi, kelly, rounding out the news trifecta, if you will, more pressure on trade from the Trump Administration on china. Moments ago the commerce announcing basically that it is initiating, selfinitiating what its calling an historic antidumping countervailing investigations of common alloy aluminum sheet from china. The first selfinitiating type investigation of its type since 1991 were talking about specifically here Aluminum Alloy imports valued in h tthe range of 604 million and we also want to make clear this is separate and aart from really, if you will, the big pending 232 investigation into aluminum that is ongoing. But, again,par from really, if you will, the big pending 232 investigation into aluminum that is ongoing. But, again, the Trump Administration keeping up the pressure on china, on trade. Partial statement from commerce secretary wilbur ross about this specific action says in part, President Trump made it clear from day one that unfair trade practices will not be tolerated under this administration, and today we are making a step in fulfilling that promise. Back to you. All right Hampton Pearson there in washington back to wall street now where we had a rally then it wasnt a rally when we got word about the north clKorean Missile now were back to rally mode the dow is setting highs for the day right now. Were up about 200 points at this hour. Lets get to our Closing Bell Exchange for this day. Joining us, bob pisani with more on whats driving this market up and down, bob. Yeah, heres the important thing, youre right, bill, look at the s p 500 my heads spinning, its like a sawtooth pattern 26. 2,610 to 2,620 we started lifting then 1 then 1 25 north korea fires the Ballistic Missile, market moves down we started recovering then when we got the news that was about 25 minutes ago that senator corker intended to vote for the tax reform bill, the market moved to new highs today so lets say powell and tax cuts trumping, excuse me for that, north korea joeoverall in the markets. Momentum stocks up and down. Amazon at a new high once we had the north korea news, typical momentum name, moved to the downside. The banks which moved up all throughout the morning as powell was speaking got hit on the north korea, are also now back at new highs heres a typical one, Goldman Sachs up 1 on the day a lot of names, big names up close to 2 . Folks, thats a little unusual to see big bank names move close to 2 . Gives you the idea of the strength guy, back to you. Bob pisani, see you in a little bit joining our Closing Bell Exchange, kevin nicholson. Next to stephen sarg gilfoil Rick Santelli joins us from the cme. What do you see with the strength were seeing, up 207 on the dow with everything that just happened. Its almost thrilling, like being at a sporting event. Now the s p 500, the level of the day if youre a guy that follows the numbers was 2,611 on the s p 500. Thats in the dust the next big level is 2,626. Looks like we could actually approach that by the close of business depending what we hear out of washington, d. C the fact north korea, throw another missile in the water, everybody cared for about ten minutes. Thats over. Seems like you almost had a chance to buy the defense contractors. I did go there, but, you know, before i could even make that decision, it was back to the banks. And how interesting are the banks right now . Up 2. 8 on the kbe. What a day. We were talking during the before the show here, your port kno portfolio hasnt changed all year through all of this youve just held on, right correct we went early in our Asset Allocation process this year, tilted our portfolios toward europe and stayed in the u. S but the key bit there was that we thought it was risk on. The markets were going to melt up thats what theyve done all year long. What are you waiting for . I think its going to any reason to change our positioning. In the u. S. , we liked tech all year, weve likedfinancials al year in europe, weve liked financials and, you know, in some materials and in japan, we like the industrials. And so it has been a riskon trade. The thing that we have focused on in our shop is to ignore the headlines. Dont worry about the geopolitics. Because if, you know, had we listened to them, we would have missed this rally from august to now. Rick, meantime, weve also heard from Jerome Powell today, likely incoming chair of the fed, and whats the net impact of all of this across the dollar and bond yields as were following it i personally didnt really see anything that jay powell said that had a huge impact on the treasury of the dollar market but theres another central banker that did have a big impact today mark carney. Another one of this inaccurate morning comments that brexit was going to be a disaster, but it wasnt there was actually rumors of a breakthrough, and the pound soared whether against the euro currency, to some extent against the dollar, i think thats pretty interesting news to Pay Attention to as far as the dollar index, you know, to think were now back above 93, maybe the most important number is 94, may not be something to get hugely excited about but the losses that have been coming at the expense of many different currencies, whether its the yen, today the pound, seems to have at least netted out the dollar index rally i think part of that, of course, the equity markets and the tenyear note, here it is, trading aggressively at exactly the midpoint of its range for 2017. Hey, rick, can i get anywhere with rick . Go for. Rick, wouldnt you think progress on tax reform would put pressure on the dollar thats what im thinking thats why i bought Kimberly Clark today based on its value as a multinational. I think to some extent that is true and theres a lot of different channels about, you know, how the better economy based on lowering taxes would put the fed in a box potentially to be more aggressive. But in the end, im one of those oldschool guys, sarg, to me if the countrys in good shape and the economys in good shape, i think the currency ultimately will be in good shape. I think the dollar has many reasons to rally its just about 3 lower than it needs to be to convince any technician that that is the case yeah. I think were in good shape but i think its going down to 92, 91. Before we go, what was the level on the s p on the sup jooid y upside you were looking at 2,626. If you wait if we try it once on a downside, we pass, we may be off to the races. Why do you think the dollar is going to weaken if this passes, because of the deficit hit . If its growthy, shosuldnt it rally . Because of the growth in europe kevin alluded to this with the european financials. I do believe the ecb is going to have to force the hand a little earlier than they want lets face it, were seeing Economic Growth across eight of the top ten economies. If the u. S. Passes the tax reform package why there i believe that will put pressure on the high end of the yield curve, okay . I believe deficit spending increased deficit spending because were already deficit spending weve been doing it my whole life increased deficit spending should weaken the longer end of the yield curve, if the fed raises the short end, like theyve been pushing that end up, the curve will look actually more normal and the u. S. Banks will be able to make money. Why is that going to make a weak dollar . Now were going back over to europe once the ecb gets in line with the Federal Reserve and the ecb is, what, over 50 of the dxy, i believe, the euro is, i believe that will actually strengthen the euro so it has nothing to do with passi ining tax reform, its the difference between the speed at which theyre thats a higher yield story the dxy is a different story where i actually believe were going to see lower dollar valuations versus the euro and versus the pound which doesnt come out of brexit all that awful. Before we go, for you, youre not tempted to take some money off the table . No, im not. Do it, man. No, not at this point i mean, i think part of the reason youve sign teen the yie curve flatten, people are taking money off the table because its been such a great year in stocks however, our belief is were going to have low inflation for longer youre going to have Central Banks keep rates pretty much lower for longer so its giving oxygen to equities so were going to have, like, a disinflationary boom therefore, im not ready to take money off the table. All right. How do can you like Earnings Growth next year, kevin . I think its going to do well. I think so, too. Thank you, all, kevin, sarg, clearly bucking for an anchor job at cnbc and rick, thank you. Take him. See you all later. 45 minutes to go until the close ehere, dow up 236 points. This is serious now. High before the north Korean Missile launch was about 190 were back to well above that. S p is up 25 nasdaq is up 20. Interestingly, the nasdaq is by far the laggard today. The russell is up 16. And a new scandal for wells fargo claiming the bank overcharged customers to get higher bonuses we got more on that fallout coming up. But first, well be joined by Goldman Sachs jan hatzius at post 9 were going to talk to him about jay powells confirmation hearing, on the hill today, how many rate hikes he sees in 2018. Well talk about tax reform and all that. President trump is expected to speak any minute now at the white house. Well bring that to you as soon as it gets under way stay tuned what if we could keep more amof what we earn . D. Trillions of dollars going back to taxpayers. Who could possibly be against that . Well, the National Debt is 20 trillion. As we keep adding to it, guess who pays the bill . Him. And her. And her. Congress, we should grow the economy. Not the debt. [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Live binge dvrd shows,te sport, while painting your toes. Ture. On demand laughs, during long bubble baths. Tv on every screen is awesome. The Xfinity Stream app. All your tv at home. The most on demand, your entire dvr, top networks and live sports on the go. Included with xfinity tv. Xfinity. The future of awesome. We havent looked at the heat map in a while, Standard Poors heat index, all 500 components and mostly green today with the s p up 24 points right now. In the 6,620 almost hit sargs target of 6,626 very close thank you, move on to others movers wendys getting a boost on roarks plan to buy buffalo wild wi wings. Owns 18 of arbys we got wendys up 3. 7 . Meanwhile, Thor Industries soaring today after posting an earnings beat yesterday after the bell the beat largely d ll lly drivey increasing demand for towable products and motorized rvs hitting a record intraday high, seeing its best day. Its up 12. 7 . By the way, be sure to catch the companys ceo tonight on mad money at 6 00 p. M. Eastern time. Now taxes were not the only talk on capitol hill today Federal Reserve chair nominee Jerome Powell was there for his confirmation hearing among the big topics addressed, a december rate hike heres what he had to say. I think the conditions are supportive of doing that, but we need to go ahead and have the meeting and listen to each other. Generally have a rule, you know, its a Communications Rule that were not supposed to be saying exactly what were going to do before we go in and listen to one anothers views. Well, our next guest believes well see four, count them, four rate hikes next year lets bring in jan hatzius from Goldman Sachs to post 9 here welcome back nice to be here. Does the tax reform bill passage have something to do with the rate hikes for next year i think it helps at the margin i think there will be some additional positive boost from, you know, relative to an economy thats already growing clearly above trend and were getting a good amount of support from financial conditions and i think fiscal policy will contribute as well so were moving through full employment i think were roughly at full employment at the moment, but well see some degree of labor market overshooting and so with that, even with inflation probably still below the target in 2018, i think youll see continued increases in the funds rate. Jerome powell spent some time talking about his concerns about the lack of sort of male prime age participation in the labor force and that was interpreted as a kind of dovish thing to say. To indicate that maybe theres still some slack in the economy because of that. Instead of saying, you know what, that doesnt matter, its not going to have any bearing on how we move cyclicly what did you make of his remarks . Well, i think its possible that the, you know, still low prime Age Male Labor Force Participation rate still means theres some slack in some areas of the labor plarmarket but i l to look at things broadly including the participation numbers but also things like percentage of households saying jobs are plentiful rather than hard to get. That just hit a 17year high earlier today. The number of firms that indicate concern about skill shortages, thats also at quite high levels. So if i take it all together, it looks to me that were basically at full employment now i dont think we have an overheated labor market, so in that sense, i agree with what Jerome Powell said today, but i think we are moving toward at least some degree of labor market overheating a pretty strong market again last week. Yesterday, optimism coming out of black friday. Cyber monday yesterday was a record day for Online Retail sales. Theres this optimism about the Holiday Shopping season. And now today with the Senate Budget committee passing their version of the tax bill, weve got this 260point rally here. What do you make of the stock market and is it reflecting Economic Activity right flnow accurately do you think i think it is i mean, the 2017 has been a good year in the economy. Weve seen continued acceleration and growth. Weve seen, you know, i think a pickup in, you know, most sectors, Business Investment probably a little more than other areas. But i do think that its generally been consistent with what youve seen in the economic numbers. And, of course, theres the feedback from financial conditions, not just stocks but also slightly weaker dollar, still fairly low rates, tight credit spreads into growth and that is i think a reason why were likely to still see abovetrend growth next year and, again, i think that helps the case for seeing perhaps more hikes than what the markets pricing in but it also seems like the market is looking to that. Looking beyond it almost and saying, starting to price in th recession. You look at what the yield is on the 10 year, the 30 year if they dont respond at the longer end of the curve, Morgan Stanley thinks the curve is going to work by the Third Quarter of next year, typically gives you a year or so before were in recession is there anything that can change the outcome, to steepen the curve to make the longer term bond yields go up in your view i expect longer term yields to drift up gradually over time as well. I think the market is going to have to increase its estimate of the average level of shortterm rates and i think if that happens, if the fed hikes and the economy still does aprpretty well, that will happen the term premium is still pretty low. The fed is now very gradually, but nevertheless, running down the Balance Sheet and i think that probably boosts the term premium a bit as well so thats one thing. The other thing is that i think an inverted curve, lets say, a flat curve, might not have quite the Predictive Power that it had in the past when you had really structurally much higher term premium, back in the 1970s and 1980s. I mean, it really took a lot of expectations of rate cuts on the part of the market to invert the curve. Now with the term being troub structurally a lot lower, i dont think the risk of not 2018 even 2019 still looks fairly plod rat, obviously as you look out further, ten its harder to make those kinds of predictions, but right now, we still think Recession Risk is fairly low. Always good to see you, jan, thanks for stopping by. Thank you, jan hatzius of Goldman Sachs joining us if youre just joining us, yes, a fullblown rally under way all kinds of things going on today. One of the headlines thats moving this market, the Senate Budget committee has passed its version of the tax bill. And you can see the market responds here. The dow up more than 1 . The best performance gainer today, those small caps. Look at that. Theyre loving it. The russell 2000. We knew they were watching that tax bill very carefully. Meanwhile the cleanup continues at wells fargo a new internal review there confirms incidents of banks chasing bonuses, bankers, then overcharging clients especially in Foreign Exchanges well get the details. And well head to the white house as soon as President Trump begins to speak which could happen any time now. As soon as we get that live video, we will bring it to you here on the closing bell. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. Well, itsonce again. Eason yeah. Lot of Tech Companies are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Welcome back the russell 2000 small caps which have a higher tax rate than the Bigger Companies are up 1. 4 in this market today. Theyre adding 20 points and it took the russell two months, by the way, to get into record territory everyone else was in tells you about the doubts about the tax plan that now looks much more likely after passing the Senate Budget committee today. S p up 23. Dow up 238. Shares of regional banks are surging as the group have looking to post its best day since june fed chair nominee Jerome Powell also said today hed be looking to decrease the intensity of regulations for regional and community banks. Pretty good gains for those regionals today. Meanwhile, wells fargo is caught in yet another scandal as employees there reportedly say the Foreign Exchange group has been intentionally overcharging customers to inflate their bonuses. Will wilfred frost with the story. Wells fargo, overcharging hundreds of its Business Plans on certain trades. An article by the wall street journal claims an internal review found that out of about 303 agreements, only 35 companies ended up paying the price they were originally quoted wells fargo, however, said in a Statement Today that the wall street journal story was fundamentally incorrect, citing average 2016 pricing data as evidence the story follows news from the Foreign Exchange unit of the bank in october that led to a refund of around 1 million to a client, restaurant brands, and the departure for 4x professionals. However, the bank says that was a oneoff and never related to overcharging the client. What is clear is that over the last year, wells fargo has adjusted its Employee Compensation plans in this department moving away from bonuses tied to revenue generation, and toward a more holistic assessment of employee performance. This came as part of the banks broader Risk Management review following the sales practice scandal last year. Overall, this issue raises the question for investors of whether wells fargo can keep employees happy, drive earnings and recover earnings multiples of the past. The share price has underp underperformed dramatically since news broke september the 8th, 2016, wells fargo gaining 12 , while the kbw banks index up about 42 and likes of jp morgan, bank of america up considerably more. When you consider that the fake account scandal was also tied to Employee Compensation, boy, the bonuses must have just been amazing at wells fargo right . I mean, all across the income spectrum there. Well, its less of a bonusdriven bank overall than some of the investment banks purely but i think this is thats the takeaway from the story in terms of what we can confirm, versus whats been reported and denied by wells fargo today, was this was another part of the bank where bonuses were heavily reliant just on revenue generation, not broader considerations thats changing. That questions whether the earnings for the bank can change clearly today, well fargo is up with all the banks and i add to not just the fact youre sieein the deregulatory comments from jay powell they disproportionately pay a higher tax as well the tax reform developments today also boosting the seconder. Good point, thank you very much thank you. Time for a cnbc news update. Lets turn to sue herera. Heres whats happening at this hour. Secretary of stateoffended by t growing number of critical reports of his leadership some of which accuse him of dismantling for political reasons. Came in response to a think tank in washington. Im offended on tear heir be, offended on their behalf when people say somehow we dont have a state department that functions. I can tell you its functioning very well from my perspective. Have we got more we want to do yes, we have more we want to do. Protesters calling for President Trumps budget director to step aside from the Consumer Financial Protection Bureau they gathered outside the agency in washington and senator Elizabeth Warren spoke at the rally. Donald trump and the Congressional Republicans want to make this all about politics, but this isnt about politics. This is about what is fair this agency has forced the biggest banks in this country to return more than 12 billion directly to people they cheated. It is a businey news day tody theres a lot happening out there. Youre up to date with the news update this hour ill see you next hour back to you. Sue, thank you very much. The last half hour of trade in a volatile and interesting day on wall street dow up 245 points. Joining me on the floor, new face for our viewers but not the folks on the floor peter from cita del securities joining us. Thank you, bill, thanks for having me. Clearly the manrket is responding to the fax bill. I think investors are starting to light at the end of the tunnel as you know, investors look for clarity. Right. Were seeing some of that the market is certainly reacting that way today trading right near the highs. I was talking yesterday, seems even on the floor to be this sort of renewed optimism about retail as well. Coming off the black friday cyber monday period the Holiday Shopping season is looking a little brighter as well i guess. I think if you look at those numbers and see how weve done on black friday and cyber monday and seeing that retail as well as the financials are two of the leading sectors today, the markets certainly reading that as well. Do you follow the russell as much as the other guys on the floor do thats the big performer today that clearly is also benefiting from the tax reform bill here. Yep you know, all the indexes, especially as were getting into the end of the month on thursday, were going to see the msci do its rebalance as well. The russell, the dow and the s p are all kind of pushing toward the highs here well have to see how the last 30 days of the year go. All right, peter, see you later. Thanks, bill, appreciate it. Peter giacchi from citadel. Thank you, bill, peter. Buffalo wild wings flying on word that arbys will buy the company in the wake of pressure from activist investors. Well lay out the deal ahead. President trump is expected to speak any moment now. Well bring you those comments sn we veasooasha them. Eamon javers will be in the room when we come back. The smart ones look to fidelity to find them. We give you research and datavisualization tools to help identify potential opportunities. So, you can do it this way. Or get everything you need to help capture investment ideas and make smarter trading decisions with fidelity for just 4. 95 per online u. S. Equity trade. Fidelity. Open an account today. Open an account today. Firstthen you put yourselfareer. Through school. Got the degree. Youve given it your all, to reach the goals youve set. Dont let student debt hold you back. Refinancing Student Loans with sofi can save thousands. So you can get where youve always been headed. Sooner. See how much you can save with sofi. The leader in student loan refinancing. Welcome back earlier we looked at all the components of the s p 500. About nine to one gainers today. Here are all the sectors and its the same story. You have nine in the green, at least, there, one in the red lets see maybe theres 11 n anyhow real estate is sitting this one out. Financials leading the way up 2. 5 today. No big surprise there. Meanwhile the nasdaq underperforming the major averages today but still pretty strong er be to comes is at the nasdaq with a look at the big movers there. Still pretty strong, bill, if we hold on, we could be on pace for a record close, above 6,900. Were also seeing a record intraday as well for the nasdaq 100. Its the small caps that are leading today. Also here in record territory. Led by those regional banks and financials that are moving higher and consumer names are strong as well with all of those positive headlines coming off of good good friday . Black friday, lets say. And cyber monday take a look at some of these regional leaders here. The retailers that are leading here on the nasdaq ulta, oreilly automotive, Tractor Supply they sell very Different Things, nonetheless. These have all been laggards for the year theyre all down double digits if for the year. Today theyre leading, folks perhaps trying to bet on a turnaround on the consumers. Were getting the very strong numbers. Interestingly, the biggest consumer name of them all, amaz amazon, today, not participating in the party down fractionally at the moment. Amazon still very much a very big player and reporting that its big markdown on the echo dot and the firestick, both of those below 30 each, made them very big sellers. The numberone sellers on amazons market site so its not just amazon selling everything, but selling their own devices, getting that foothold into your home these days back to you. Im still thinking about if good friday were a huge shopping day. That would be that was a good friday. Troubling. It was a good friday for retailers, you know . Yes true. Tha thank you very much Bertha Coombs at the nasdaq. 20 minutes to go, dow up 239 points, biggest rally weve seen in quite some time even though its been an upward march all year s p up 22, the nasdaq up 18. Buffalo wild wings surging on news it is going private. Its deal with roark capital and see which restaurant chain could be bought out next. By the way, tomorrow before the bilell, were going to get Earnings Results from tiffany. Is the highend jeweler losing its sparkle with millennials, he asked . Coming up, well discuss what the Company Needs to do to revamp sales with this key demo. Were awaiting comments from President Trump at the white house any moment now. Any moment now. Well bring it all to you as soon as it begins. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Rally day on wall street pretty good one, too a look at the dow up 1 plus look at the russell up 1. 75 passing its version of the tax reform package and it will head toward the senate floor at some point quick check on bitcoin weve gone this long without it today . Price surging closer to that 10,000 mark coinbase, the largest bitcoin exchange, adding about 100,000 accounts last week from wednesday to friday. Bringing the total now to more than 13 million. Reportedly more than Charles Schwab accounts. So thats something to think about. I am thinking about that. Buffalo wild wings soaring today up 6 on news that arbys owner roark capital is buying the chain. Kate rogers has more details on this deal. Kate hi, kelly, thats right, arbys reached a 2. 9 billion deal including debt to buy Buffalo Wild Wings for 157 a share. Thats expected to close in the First Quarter of 2018. The chain has been struggling with slowing foot traffic and combatting higher wing prices and its ceo sally smith was set to step down by the end of the year now arbys ceo paul brown who roark brought in several years a egg to turn that brand around will be ceo of both companies. The deal set off speculation about who will be the next takeover target. Casual dining names as we all know have been struggling quite a bit making them attractive for potential buyouts. Names like noodle the and company and zoess kitchen may be on the radar next another beaten down make, cheesecake factory, which has fallen nearly 25 for the year, could also make sense as a future acquisition although its considered a riskier move given its exposure to malls which have been struggling for foot traffic as consumers behind them b. J. S Restaurant Group down 15 has been floated at ooze potential name theres also been talk about two more deals that wont seem to go away, rather, first j. A. B. Holding company which owns panera as well as caribou coffee and kuerig eyeing Dunkin Donuts jack in the box which owns qqdob has a q4 update, we might learn more details. Wendys owned a 18. 5 stake in arbys. I mean, whats that all about is. Yes, thats true. So they sold arbys to roark back in 2011, did maintain nearly a 20 stake and also rallied today on that news. Yeah. Roark really puturned around arbys Buffalo Wild Wings has had similar struggles. Well see if they do it again. Wendys sold arbys, now arbys is buying Buffalo Wild Wings. Very small world. Thank you very much. Heading to the close 15 minutes left in the tradings is with a bona fide rally today. Rare one that weve had in 2017. The dow up 255 points. And gains all around the major averages. Last year the highend jewelry company, tiffany, attributed its lackluster sales to the president ial election when we come back, we have a debate on whether you should be buying the little blue box ahead of its latest Earnings Report that comes out tomorrow morning. And if the current Political Climate could affect this quarters sales. And coming in march, cnbc will host its inaugural healthy returns conference its a special event featuring ceos, newsmakers, investors and entrepreneurs about the business of health care for more information and tkeicts go to cnbc. Com healthyreturns. Ae across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Lets get straight to eamon javers, hes got headlines from the president. Eamon . Reporter hi, kelly, after a bit of a delay at the white house, the president has begun those remarks we told you about a little while ago well see video in a few moments. Meanwhile, our colleagues in the room are giving us a sense of what the president has been saying hes been talking about north korea to the reporters saying of the north korea launch it is a situation that we will handle. He also talks about the Democratic Leaders who did not show up for this meeting this afternoon which was supposed to be a bipartisan leadership from congress saying that lawmakers, schumer and pelosi, have been all talk and no action, according to the president he says of the tax bill, he says i think were going to get it passed and says it will have some adjustments now the key will be what those adjustments will be. The president also says lots of good things will happen once that tax bill passes so well wait for the full video of that event here any moment. Guys, back over to you. All right, eamon, thank you, for now. Eamon javers at the white house. Shares of tiffany are up right now as we await earnings before the market opens tomorrow the luxury jeweler making radical changes including a new cafe where 29 bucks gets you that legendary breakfast at tiffanys. Thats right. I forgot about that. Iconic brand struggling to attract younger customers and faces an array of other challenges. Joining us right now, a bull and bear on tiffany. David, director of research and lead retail analyst at Consumer Edge Research is our bull. Stacey, president of sw retail advisers and cnbc retail analyst. She is our resident bear on this david, bullish why . I mean, lets face it, they struggled a bit compared to how theyve done in past years bullish for exactly thereat reas that reason. Have to buy tiffanys stock or another Leadership Company when theyre having trouble changing, when theyre in the midst of frictional changes management change, not enough newness in the way they reach customers, in the product. All that is starting to change right when we move into the Fourth Quarter which will collapse of the 5th avenue traffic issues that hit them the dollar has been weakening over the last year, good for 2018 a lot of the things youre talkital talking about are absolutely true but thats why we buy the stock. Stacey, youre skeptical, why . I think davids right, tiffany needs a lot of change, it needs a modern makeover tiffany has been very upfront about that the problem is in a jewelry business like tiffanys in, the lead times are incredibly long so, you know, you look at trying to attract a younger more modern consumer, particularly as their mix shift is going more fashion and designer and, you know, it can take a year and a half, two years to really create that newness so far, less than 10 of their product is new so wed like to see a lot more freshness out of them before we get excited about the stock and the other thing is that certainly if you look at the competitive set, the recovery and the numbers and the luxury space from the competition has really outpaced tiffany. David, what do you think . I think thats fair absolutely agree that they are deliberate in their changes. I covered tiffany close to two decades coming out of the financial crisis coming out of the nasdaq and the resulting problems at the high end at that time tiffany takes their time and theyre doing it again and the problem now is relevance to experiences. Consumers of all ages including Millennials Want experiences over things whether its luxury or not even true luxury. So the gift just hit november, not going to be part of Third Quarter but starts the narrative to that change staceys right, it takes time. Their inventory turns about once a year we think youll start to see that show up a little bit in the Fourth Quarter and build into next year. Stacey, this breakfast at tiffanys move seems like a savvy one. Look at the success a polo bar, i think the retail store is now closed, can it be a significant new income source for the company . It you know, i was in that cafe about two weeks ago and couldnt get a seat, so, you know, they werent selling diamonds in there, they were selling coffee but, you know, it certainly it helps and thats what tiffany needs. They need to reinvigorate their stores i would argue they need to change a little bit of their sales culture. Certainly theyve talked a lot about inventory investments that might be a shortterm disruption, but i think, you know, this company is certainly iconic, but, again, as david said, theyre slow to evolving they will get there, im just not sure that right now is with the stock up 20 year to date and some sort of thinking that, well, the competition, the competitive set, is doing a lot better, you know, that tiffany might benefit from that. Last quarter certainly they said there was no disruption from the 5th avenue store because of obviously security with the president right down the block. Right. So, you know, we have right at his door. We have to really see some new product there. All right, folks, thank you well get the earnings from tiffany tomorrow morning david, stacey, thank you both for joining us. Good to see you. I often thought they should sell the little blue boxes at a discount. We wechnt in to get sized for rings. I feel like they should have charged for that experience. That was free. Sell the brand there. Were coming back with a closing countdown, what has been a pretty good rally today, after this you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. All right. 2 1 2 minutes left here in the session. Were a minute away from the taped remarks by the president zev, let me just say i can hear you, not kelly showing the wires here if theres any if you need any evidence of whats motivating wall street right now, it would be this chart of the dow today. As it moved higher, was jay powells confirmation hearings this morning, talk that the tax reform package was making progress in the Senate Budget committee. Then we get word about the north Korean Missile down comes the market. We went from about 160point gain to a 70point gain then they passed the bill and were off to the races and were finishing near the highs today the best performer among the major averages, that would be the russell 2000 with a gain of about 1. 5 today, bob pisani, where we have word that, you know, the small caps in h this country are desperate for tax reform right now i want you to keep that up, because we often debated how much difference does tax reform make small caps would be the biggest beneficiary. You see the move at 240, we should circle that you cant see it we went straight up after corker announced his change of heart. All right. To the white house we go heres the president talking about various topics listen in. Thank you very much as you probably have heard, and some of you have reported, a missile was launched a little while ago from i will tell you we will take care of it. We have general mattis in the room with it and had a long discussion on it it is a situation that we will handle with that being said, Chuck Schumer and nancy pelosi did not show up for our meeting today. Im not really that surprised. We have a lot of differences theyre weak on crime. Theyre weak on illegal immigration. They want the illegal folks to come pouring into our border and a lot of problems are being caused although weve stopped it to a large extent as much as you can without the wall which were going to get they, before this meeting and before this Missile Launch, theyve been weak on military in terms of spending. Very hard to get for military, they want it for a lot of other things but the military is always secondary to them the military, to me, is number one. We wouldnt be here without our powerful military. Were building it up stronger, bigger, better, than ever before and general mattis can testify to that. And the other thing, they want tax increases and we want major tax decreases. They decided not to show up. Theyve been all talk and theyve been no action and now its even worse. Now its not even talk so theyre not showing up for the meeting. I will say this in light of the Missile Launch, probably, theyll be here fairly quickly or at least discussions will start taking place fairly quickly. I think that were in a very good position in terms of the meeting we just had over at the capitol with the republican senators it was outstanding i think we have tremendous support. I was just informed by mitch that we had a unanimous vote from the republican side, at least. We had a unanimous vote on the tax bill and it goes now to next step and i think were going to get it passed. I think its going to pass senates going to be very popular. Its going to have lots of adjustments before it ends but the end result would be a very, very massive, the largest in the history of our country, tax cut and lots of good things are going to happen including the bringing back to our country of probably will end up being over 4 trillion, money offshore, thats stagnant that companies and are just not able to bring it back, so i think its going to be a number over 4 trillion. Corporate will be able to compete now against the world. If you look at china, if you look at so many other countries, you look at many of the countries, china is at 15 theyre lower than us. Were getting it down to a level that is either going to be lower or right in the ball park so we can compete much better with our companies, our great, great companies. That means jobs and it means lots of other things im very happy to see that the Consumer Confidence level is just about the highest its ever been in fact, i dont want to make any mistakes in front of the press because youll get me on it, but to the best of my knowledge, its the highest its ever been, Consumer Confidence has been setting records they have confidence in the people leading their country and i will say that i think its going to go better and better. I do believe that this vote on taxes, which are really tax cuts and reform, is going to be very, very important so we had a good day today we had a phenomenal meeting with the republican senators. We had it was very special, that meeting many respects, i wish you could have been inside that room it was very, very special. The comrade. Somewhat of a love fest. They want to see it happen they want to see it happen not only for the republican party, i think much more importantly, they want to see it happen for the country because they know how important it is. For us to compete and win and with that, i maybe will start with paul ryan to say a few words about where we stand with Different Things and ill ask mitch mcconnell. Okay. Ill just briefly say, i think its regrettable that our democratic colleagues and leadership chose not to join us today. For a bill to become a law, congress has to pass a bill, and the president signs a bill that Means Congress and the white house always negotiate legislation. We have important work to do we have big deadlines to meet. We had a military in need of our support. And that work needs to happen now and i just think its very regrettable that democratic colleagues and leadership chose to not participate because we have to negotiate these bills to get this work done for the people we represent and especially to help our military with these difficult situations we have and i just hope that our friends in leadership on the other side of the aisle will choose to participate so we can get the peoples work done thank you. Mr. President , i would just add, ive been in this position under a couple previous president s i cant recall ever turning down an opportunity to go down to the white house. As the speaker mentioned, only one person in america can sign a bill into law, thats the president of the United States we cannot negotiate the yearend spending bill without the person who signs the bill in the room so i think the Democratic Leaders in the house and senate need to understand the way the Government Works and we the administration has to be a part of the ultimate negotiation over what the spending levels going to be for the next year. Well, we are very far apart because our views on crime and our views on immigration and the military, so many are different, but a lot of things have happened even over the last two hours with respect to the Missile Launch we want our military funded and we want it funded now. Its going to be bigger, better, stronger, it already is, than ever before. But we want to get going on that now. So that is a difference, in all fairness, from this morning, when i told them that were way, way far away, and with that, i may just have general mattis say just a couple of words about what he has found out. General, do you want to say just a couple of little pieces of information . Mr. President , senator, speaker, a little over 2 1 2 hours ago, north korea launched an intercontinental Ballistic Missile. Yeah, it went higher, frankly, than any previous shot theyve taken. Its a research and Development Effort on their part to continue building Ballistic Missiles that could threaten everywhere in the world, basically and in response, the south koreans have fired some pinpoint missiles out into the water to make certain north korea understands that they could be taken under fire by our ally, but the bottom line is, its a continued effort to build threat, Ballistic Missile threat, that endangers world peace, Regional Peace and certainly the United States. Thank you, general. And we will take care of that situation. Thank you, all, very much. I appreciate it. Thank you. These Missile Launches today, does it change anything about your basiic approach . Fog changed nothing changed a very serious approach. Nothing changed. We take it very seriously. [ innaud [ inaudible question ] if it happens, i would absolutely blame the democrats illegals pouring into the country, crime pouring into the country, no border wall which everybody wants. I got elected partially because of a border wall you look at the military, we want strong funding for the military they dont so many things. As an example, they want high taxes. We want cut taxes. Were going to cut taxes were going to reform. Were going to simplify. They want high taxes we want low taxes. So theres a lot of big differences. So well see what happens as to shutdown, well see. But right now things have changed over the last two hours because two hours ago, a missile was launched i think that will have a huge effect on schumer and pelosi i think. Well see. Were going to learn very soon they should be calling immediately and say we want to see you, but probably they wont because nothing to them is important other than raising taxes. Thats the only thing they like doing is raising taxes thank you, all, very much. Appreciate it. That was President Trump speaking moments ago to the press, defense secretary james mattis, House Speaker paul ryan andjavers is here with reaction. Reporter we werent expecting to see the defense secretary in the room. You heard from him about the Missile Launch there north korea, said that missile had gone higher than any shot the north koreans have taken before. Also said the missile that was launched was an icbm, intercontinental Ballistic Missile and said it could threaten anywhere in the world basically. Startling remarks from the secretary of defense an exactly what the north korean capability is now you heard the president of the United States addressing that. Saying this is a problem that the United States will deal with but not offering any specifics as to exactly how the north korean problem will be dealt with the secretary of defense explaining that the south Korean Military had done a show of force in response to the north korean launch. So that is a difficult international situation. The president also commenting on a difficult domestic situation the absence of the two Democratic Leaders whod been invited to that meeting here at the white house this afternoon you saw the two empty chairs the white house left there the room to demonstrate visually the fact that Chuck Schumer and nancy pelosi were not there for meeting. The president saying that he would expect them to come, but theyre not coming because they only want to raise taxes and the president , himself, wants to cut taxes. Well see whether or not this bode well or ill for december 8th. Thats the date on which they have to reach a deal on government spending. So far, theyre not even in the room together talking. Well see whether they can cut a deal by december 8th and keep the government open by then, otherwise we could be heading for another shutdown, kelly. Back over to you. Yeah, that date is fast approaching. Eamon, thank you eamon javers. Reporter you bet. By the way, welcome to the closing bell, everybody, we set four records q quifecta on wall street. Dow added 256 points on the bell to close at 23,836 as it marches toward 24,000. The s p 500 up about 25 points today to 2,627 the nasdaq up half of 1 its closed at about 6,900 for the first time as it now looks toward 7,000 the russell 2000, the best performer with a 1. 5 gain added 23 points today. The russell closed at 1,536. Digging deeper, the biggest dow winner today, jp morgan with the financials rallying on the back of the tax bill advancement. Biggest loser was actually apple, down about half a percent. Jpm up 3. 5 . Oreilly automotive in the s p with a 5. 5 gain Boston Scientific down nearly 8 that was the biggest loser also Federal Reserve chair nominee Jerome Powell appeared on capitol hill earlier today. For his Senate Confirmation hearing. He reaffirmed the feds rate hike timeline and his plan not to deviate far from policies implemented by current fed chair janet yellen the market really rallying after the Senate Budget committee advanced a tax reform bill this afternoon. Long look at the dow, we had a peak, a drop on the news north korea launched a Ballistic Missile then we climbed steadily higher. Ylan mui has the latest from capitol hill. Reporter the Senate Budget committee voted to move the republican tax bill to the floor of the senate and puts republicans on track for a final vote on this bill before the end of the week. Now, one key yes vote in this was senator bob corker he told reporters that he has a broad agreement to create some sort of backstop that would raise taxes if Economic Growth doesnt pan out as planned now, the hearing has now wrapped up on this bill, and had been interrupted multiple times by protesters shouting and chanting there were even a few that were arrested by Capitol Police and what you saw this afternoon was really democrats beginning to mobilize their base this is not just about tax cuts for them anymore this is also now a Health Care Bill because it includes a repeal of the individual mandate. So democrats are trying to harness the energy that they used to block the repeal and replar replace of obamacare and now use it to block the tax bill you also saw three red state senators, heidi heitkamp, joe donnelly, they came out and said they had serious concerns about the current version of this bill right now republicans are still trying to ensure they can get the 50 votes within their own party to make sure this bill gets passed. They can count today as a win because it allows a process to keep moving forward and it allows the negotiations to continue back over to you ylan, thank you very much, ylan mui covering this for us all day. Here on set with me today, cnbc senior plarmarkets comment Michael Santoli alongside dani hughes and kevin oleary first of all, kevin, what do you make of the record closes today . I was going to make a comment regarding north korea and the record close imagine if youre the leadership of north korea and you put your biggest and nastiest weapon sub orbital intercontinental weapon into space and every indices hits a new high. He cant get any respect, the poor guy what else can he do . In a way, mike, should we be grateful for that . Is it a National Response . Somehow i dont think the premier of north korea uses the stock market as a barometer as much as other leaders do however, its not surprising i keep saying this, the market doesnt discount kind of incremental moves in an ongoing decadeslong nuclear standoff. I dont think it was that surprising it was a mere hiccup today. It has to escalate out of the control of the existing process for that to happen. By the way, dani with todays 1 gain the dow is up 30 since President Trumps election. Not as much as bitcoin, but, yes, it is pretty tremendous i think that, you know, the leadership here has been not health care which is surprising, and actually thats where weve been focusing on lately. I will say, though, that this market has continued to buck the trend, continued to confuse investors and even in the face of Something Like this, today, with north korea, i think its not surprising that the market is up as much as it is and something wont happen until it happens. Real quickly on health care, theres apparently the individual mandate repeal is in this bill, passed the Budget Committee. Talk about how that might be moderated a little bit is that a concern for you as owner of those stocks . Its a concern for me in general because of the whole entire tax bill, i think how thats affecting not only individualization of health care but also specific things that affect the middle class and the lower class. In a negative way in a very negative way, yeah. So until this really shakes out, which its truly jammed through, you know, it really has gone fast through, because as we know, trump really hasnt gotten any legislative things done yet. So day trathey really have to r the end of the year to get this through. That concerns me. All right. Lets mention this news today, investing firm vanguard announced its launching its first actively planned Exchange Traded funds remember, vanguard is moknown f passive investing. The group will offer a total of six actively managed etfs in the u. S. V kevin, the fees are low on this. Im going to call this the dea dea dea deathnail. Its effectively a mutual fund in a more costefficient, taxefficient and transparent wrapper. So youre taking actively planned rules, putting them in, in some cases on a robo basis, or can also put a human being there and selling it for instead of 100 basis points of fees a year, 40, 30. Yep. 20. I mean or 13 in this case. Which wow. This is a really this is just launching the concept. 13 is not where i think the medium will be for the industry. Vanguard has already hoovered up so many assets in its passive funds. If its going 13 points for active, dont you think thats it means consolidation will occur in the etf companies also means fidelity has to react. Fidelity is the mother lode of decades of mutual funds and managers i think the wacky stick is coming out you see blackrock, 200 plus active managers. Got whacked. Robos took them over and got great returns. They cut their cost. This is a trend thats going to affect our industry for years to come. Theyre being contrarian. Right now, as you said, everythings being hoovered up by the passive funds we talked about passive versus active for a long time. Yeah. Theyre taking the contrarian side knowing that active is going to come back eventually. Well day want to be in the face of that. We have to be careful, vanguard calls it active, its not really active. Its factor based, rules based, smart beta. Whats an active manager, mike its the same thing. They have rules in their head. Right in their head. Then they pull the trigger around i only think thats important because vanguard will tell you theyre not wedded to pure traditional indexing. Its low cost and its tax efficiency and those are the two things that they care most about. More active assets meaning human beings deciding what to buy and sell than t. Rowe price. There will be value for actively managed when the market stops going straight up on an index basis. Let me give you a stat the russell 2000 had the 1. 5 move today the actual return on assets of all 2000 names is only. 1 the companies basically make no money. Only 300 companies in there actually have return on assets of around 6 someday that will matter to people right now, it doesnt. You sound like john levin, we were having that discussion today. Speaking of vanguard, its founder also had harsh words for bitcoin investors at a cryptocurrency event today heres jack bogle. Bitcoin well, bitcoin is a currency. Bitcoin has no underlying rate of return, but i would say avoid bitcoin like the plague. Did i make myself clear . I think he made himself pretty clear bitcoin got closer to the 10,000 mark today Hedge Fund Manager Mike Novagratz said on fast money yesterday he sees it going even higher. Bitcoin could be at 20,000 at the end of 2018, easily could. I think atherium, just touched 500, could be triple where it is as well. Novogratz, himself, today said bitcoin is going to be the biggest bubble in our lifetimes by a longsh shot. Hes willing to trade the bubble. For a trader its a bubble you ride until it gets to some extreme you decided is enough. So, look, i feel like theres really no premise for how youre exactly coming to these targets. Its just a measure of adoption, its a measure of enthusiasm. Momentum. Its a measure of the process. So e yeah, fine, 40,000 why not . Yeah. Why not do Technical Analysis on this i dont know how actually its been kind of obeying Technical Rules as people have traded it. Dani . Its outside the framework of the regulatory environment, you know, like cmos were, too, and swaps and things like that that we kind of fell on our face with and for that reason, i think that eventually it will be inside the framework if it lasts that long, and that will change things dramatically, but until that happens the wild west. Its every man or woman for himself. The fact is that individuals can get involved you dont have to go through a firm and youre an unknown. Perhaps most troublingly, kevin, there are people asking if they can use their credit cards to buy bitcoin, again, when youre looking for transition mechanisms from bitcoin bubble to the rest of the economy, credit cards would be one way, the concerns that tom has about what happens once those futures are launched and the counterparty risk, thats another. At the end of the day the only thing that matters to turn this into something real, in any jurisdiction, qucan you pay your taxes with it . It wont be a currency until you can do that. Switzerland, france, canada, mexico, you make money, youre paid, you have to pay the government back. Would you take any currency risk doing that no you need bitcoin to be able to settle your taxes then ill tcal it a currency. In the meantime, you have to pay taxes on it. Also have is to see the bltoe blockchain operate, you have to have implemented. Might be headed that way. Of course, it might actually be you know, again, its all hypothetical until you get to the i do think youre rouigh thomas petterfine is concerned about the futures. Cant short the underlying bitcoin easily and thats a necessary piece of a futures market. And when that happens, guess what, there will be a reckoning. I tried to short it, there is no way to do it. Theres no real legit way to do it. No party that will take that position it can only go one direction if i cant short it, its going up. You call us when you can, i want to know about it. You wont know, kelly. Dani hughes, kevin oleary joining us this afternoon. Stocks soaring as the senate bill moves forward what if key provisions are removed from the bill before it moves to. Coming up, well discuss how that battle over bkerors could impact the financial industry. Stay with us cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Welcome back we also have some earnings this afternoon. Autodesk and Marvell Technologies out with their results. Lets get to seema mody with the numbers. Seema . Kelly, lets start with autodeaut autodesk, reporting better than expected earnings. News is sending the stock lower by as much as 13 , Restructuring Plan includes divesting from are some areas and increasing investment in others also streamlining the organization and rebalancing resources. Again, the stock down 13 . If we pivot the discussion, though, to marvell, a very different story. Revenue earnings beating street expectations, guidance is also strong for the Fourth Quarter. The results do come days after marvell said it would buy smaller rival, cavium, for about 6 billion that stock is higher in extended trade. Lastly, nuance communications, which specializes in speech recognition technology, beat the street by 5 drecents on its bot line that stock up is by more than 5 here guys thank you, seema. Mike, thats a tough one for autodesk. It is in an area thats been okay in that kind of software space. Right. Its clearly, you know, some issues that have gone unprepared for a while i think. Autodesk shares down 13 after the Earnings Report. Meantime the Senate Taking a big step toward making tax reform a reality after the Budget Committee advanced the tax bill this afternoon. What happens if the final bill doesnt include the provisions the market wants joining us, jim, and peter, a cnbc contributor at the lindsay group. Welcome to you both. Thanks. Peter, let me just start with you. What do you think are the most marketfriendly provisions here . The dow is up 255 today. Whats the risk for the market here what are you watching to see if it stays or goes i think the market right now simplist simplistically, also all year has been focused on the 20 Corporate Tax rate Everything Else to finance that hasnt really plaerted i think once we get the details through conference, people will start sifting through, but, again, simplistically, i think the 20 Corporate Tax rate that everyones drooling over. So, peter, youre saying because stratregis suggested going up to 23 could solve payfor problems, state and local tax deduction, making sure you could implement it right away if it goes up to 23 to solve that, the market would sell off . Considering 23 is not too far off from where the effective tax rate is for most companies, it may not be the, you know, the extent of what people were hoping for it would still be good over time from a competitive stand poicpo. I think from an earnings per share standpoint, we taxed in at least a 20 tax rate and everything above that may be a little disappointing even though its still good to have a lower Corporate Tax rate. Jim, what do you think are the most important provisions the markets watching . Sk id agree with wa fehat pete said lets go back to the wording we talked about, pay for. Raising individual taxes in order to pay for a lower Corporate Tax rate at the end of the day, this is more of a tax rearrangement than it is a tax cut outright corporations get a cut, but somebody else has got to pay for it and thats why i think that the effects on the market are more muted. In other words, the markets going up for a lot of reasons, and i dont think it is tied to the Corporate Tax cut as everybody makes it out to be if it failed, it would be a negative, but not nearly the negative that i think most people fear it would be. Mike, thats what youve been saying. Well, yeah, i mean, i do think thats exactly right i do think theres a kind of a psychological effect and clearly for Many Companies it would be a good thing jim, i was also saying that the markets today it was all about the stock market i mean, the bond market didnt budget the dollar didnt have a dramatic move. Not as if the Capital Markets in general are kind of saying this is a massive growth boost, necessarily. I would agree with that that if you look at markets, all the markets, youre not getting that broad riskon rally theratt would suggest were looking at eyepopping growth thats going to come because the taxes are going to be a stimulative. Its better were doing this than not do it, so thats a positive, but its not, you know lets not confuse this with the 80s tax cut where thy cut taxes, took in less money to the government and provided a stimulus for the economy because it left that money in the private sector hands were not doing anything close to that right now. Peter, you agree with all that in other words, that, you know, as much as youre focused on the Corporate Tax rate being 20 that maybe overall this just doesnt matter that much to the market well, i think the market, and theyre probably not going to care about 2018, this is what i thought going into this year in 2017, it was that you have this ta tailwind of tax cut hopes or tax reform hopes and regulatory relief on one hand and monetary tightening on the other. The boj and ecb printing 2 trillion this year more than swamped any tightening from the fed but that changes next year so that battle is still going to be in place, especially if those tax cuts get enacted on a corporate side im more worried the monetary side is going to be what dominates and maybe the flattening of the yield curve is beginning to sniff that out. Maybe the action of the dollar is going to be able sniffing that out if the stock market is not going to care about 2018. Jim, if theres some things they could do to make it softer on the individual side, again, depends on which bracket youre looking at, would that change your view of this bill as being more market friendly, in other words, if they were able to keep the state and local tax deduction, mortgage Interest Deduction in full and that sort of thing yeah, because then the bill takes on more of the traditional tax cut type of approach where it is actually reducing the amount of taxes that is sent to washington as oppose the to reachanging it to be clear, there is some tax cut in this bill you know, 1. 5 trillion over 10 years or 150 billion a year thats better than not having it its not the major tax cut that its being touted as well so, yeah, if they were to keep some of those provisions, i think it would be a bigger positive even if the Corporate Tax is only cut to, say, 23 or maybe 25 . See, now woour gere getting to the rearrangement of it if all were doing is rearranging it, it mutes the positive stimulus. Like i said, its better to do this than not to do this lets not oversell this as some massive time of seminal event for the markets. Its nice that the markets are enjoying this, but i do think the story of the rally that weve had has been a lot more than just the tax cuts all right sounds like you guys are giving a pretty narrow path to weave through there. Unfortunately there are no spending cuts here being discussed to finance the tax cuts thats what spending cuts never hurt thats the opportunity thats being missed here. Take your point peter, thank you very much peter, jim talking some of the details of the tax reform bill which did move through the Senate Budget committee today. Lets get to some of the other big stories today in our rapid recap. Officially withdrawing its bid to buy rockwall automation worth 225 per share rockwa rockwell has been resisting the bid. Emerson decided to withdraw the proposal because rockwell refused to engaej ge in discussn about the offer. Ive been working with the administration at almost every level throughout this entire episode. Ive been in the senate for 11 years. Ive been a deficit hawk for 11 years. I laid the groundwork for this bill to begin ain the Budget Committee as you well know, so thats a ridiculous thing to think that a senator is going to vote against something thats good policy because of some rift thats occurring its just absolutely untrue. They love the bitcoin, those millennials. Every generation loves bitcoin. When youre born, are your parents giving you a bitcoin like we used to give them a little silver. I dont yeah, i wish id given it to my kids when they were born. Although i dont think it was around for either one of them. Isnt that funny, it looks like the qualcomm chart looks like the cisco chart. From when from the 90s. Many 1990 to 2000. Yeah. Really about march of 2000. Isnt that interesting march of 2000. Looks a little nasdaqlike. Of all the rules the fed has issued during your time here, youve been here for five years, on capital and leverage, on liquidity, on stress tests, you dont think a single one should be made tougher . Honestly, senator, i think theyre tough enough. Well, okay. Got to say, this worries me that was just about the only real fireworks from those hearings today. Yeah, and bank stocks noticed. They were up almost, like, a shot from that moment. I mean, it wasnt just that exchange, but in general, the tone of jay powell was, look, were going to be looking at the margins to make regulation a little bit less burdensome for banks and, yeah, it senator warren, you know, she was loaded up but didnt really deliver the payload. 3 move higher for the regionals. 3. 5 for a lot of big banks today. Its the Holiday Shipping season that means millions of packages will be handled by Companies Like u. P. S. Every day. Morgan brennan is twhactually a u. P. S. largest hub in louisville with a look at sir charges theyre adding this year morgan reporter hey, kelly, thats right, were taking a look at that of course, as you mentioned, were standing inside world port, u. P. S. main air hub and at this time of the year, it has 318 planes that are taking off and lands from here on a daily basis. They are packed with packages like the ones behind me that are moving on 155 miles of Conveyor Belt so all of this for another record peak season it takes the whole years worth of planning, it takes resources, it takes money and thats the reason that u. P. S. As well as its rival, fedex, say its time they get better compensated for what has been a dramatic surge in h these ecommerce shipments in recent years. So for fedex, that company is adding some extra charges to larger oversized packages, but u. P. S. peak surcharges are the most expensive, adding 27 cents to ground packages in the days surrounding thanksgiving and the weeks and the week leading up to christmas also extra charges on nextday and secondday air in that final week as well so u. P. S. ceo david abney telling me yesterday he wants to make sure the company is compensated for the value its providing and extra cost associated with peak season, but this is also about changing shipper and consumer behavior. Case in point, macys, which ships packages exclusively through u. P. S. , offering an option to delay delivery, what it calls no hurry delivery in return for a 10 store credit. Thats a direct result of the surcharges u. P. S. Is hoping this makes for a smoother peak season, period back over to you i like giving consumers the extra option well see if it helps with traffic. Morgan, thank you very much. Good stuff Morgan Brennan in louisville, kentucky. Rokus stock has bonfire shares of the streaming Hardware Company had a rare down day today, just barely, though were going tell you what thats about next. Also bitcoin and the blockchain may be here to stay but the cryptocurrency boom id mn to chip makers amd and nviaay be coming to an end thats in todays takeaway coming right up. I mean wish i had time to take care of my portfolio, but. Well, what are you doing tomorrow 10am . Staff meeting. Noon . Eating. 3 45 . Uh, compliance training. 6 30 . Sams baseball practice. 8 30 . Tai chi. Yeah, so sounds relaxing. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Welcome back its time for our takeaway. The crypto boom is over says mizuho apparently Bitcoin Mining requires so much Computing Power the average person just cant do it anymore meanwhile, atherium, is moving to a proof model that would only require normal Computing Power all told, shares of amd and nvidia which rocketed in recent years amid demand more graphic cards, mizuhos analyst says the companies should actively distance themselves from the crypto boom. I dont know act actively distance themselves. I dont know if either one of them invited themselves as a play on crypto its a marginal sources of debade ba demand that fell in their lap. If its cooling off, it will be a test if they can prove to investors they were good with or without it, thats a good thing. Fantasy sports the biggest driver of espn traffic accounts for 53 of minutes consumed across espns digital platforms those days and produces more login events in any other application. Disney is trying to emulate that success. How . What does it tell you, gambling is basically espns business model. Power users are always going to be those types and they come, you know, multiples, times, any other regular customer it it its understandable. I got a kick out of the fact arkab made use of this platform for bachelorette. 75 of users are female, its expanding the franchise. That makes a lot of sense. You didnt play. No, ill have to sign up. Finally the latest on rollicking roku. Remember shares are up 150 in just the last few weeks for this recent ipo. Last week it popped 18 . Upgraded the stock and gave it a 50 price target short seller andrew luck of citron responded with a tweet today. He says the stock goes much lower, michael, unless it can find a way to stream bitcoin. You know, in the big picture, 1. 1 billion market value. The market is clearly treating it on some level as a call option on the future of streaming. Its not just about what the financials of roku is. I think that the bull case for roku is it becomes like tivo, transitions from being a gandget to being a service or operating system its hard to say given the scarcity of ways to play video streaming that this is completely jumped High Expectations now, they got to keep their next Earnings Report is going to be an interesting one. Stocks soared today overall after the senate took a business step toward tax reform up next, well look hatow high this rally could go if these tax cuts become a reality. [alarm beeps] let our your inner child at the lexus december to remember sales event. Lease the 2017 rx 350 for 399 month for 36 months. Experience amazing at your lexus dealer. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. Why did you take Credit Card Debt on . Second kid. Private school. Medical bills. Moving costs. Solid ground. A personal loan from sofi is a smart way to consolidate Credit Card Debt. Certain borrowers cut their credit card Interest Rates 42 and increased Credit Scores 17 points on average. Borrow up to 100,000 with low rates and no hidden fees. Find your rate in just two minutes, and take on your debt at sofi. Com. A huge rally on wall street today. Four record highs for all the major averages after the Senate Budget committee advanced its tax bill. The dow is up 256, nearly. Bob pisani has a wrapup bob . My head is spinning 26,010 on the s p, 26,020, 26,010, 26,020 Jerome Powell emphasized gradual rate hikes much like his predecessor janet yellen all in all, powell stayed on message at least for the market and hit the right notes, again, at least for the markets reflecting continuity, paving the path for the rate hike next month. Made bankfriendly excellents. T comments look at these circles here see quhawhat was going on. North korea fired a Ballistic Missile in the middle of the day. It was announced the missile landed in the water just off japan. Then stocks moved to new highs shortly before 3 00 p. M. Eastern time when senator bob corker, one of the republican holdouts on the tax cut bill, announced he would support the bill you see the influence that had on the small caps right there. So heres the bottom line. Movement on the tax bill, and no surprises from Jerome Powell, beat out worries over north korea and already im getting emails, i was just on the phone with somebody who said is this the market top, bob . Now we got the bill moving forward and got Jerome Powell all priced in. Sounding a little bit like janet yellen calming everybodys nerves down and is this the top . Thats now the question for the next couple days. Pigt nnight not be the top ul you stop getting that question thats the way it feel. Interesting the s p 500 was up. 97 . Couldnt quite click to the. 1 very well behaved market 26,026 sarg was here. My guess here, there might be another 1 , 2 for the remainder of the tax bill for the actual vote, getting the whole thing through. After that there was definitely some desperate chasing happening at the margins today. At least its not like bitcoin yesterday. Bob pisani. Big wall street firms have been hemorrhaging, to independent rivals in recent years. Two of wall streets biggest companies, make it hard to lose talent an assets up next, whether that will be enough to stop this trend from continuing. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. Julia boorstin, whats happening . Kelly, at t, directv, time warner, filing a response to that department of justice lawsuit trying to block the acquisition of time warner by at t a couple of keynotes here, this is very much reiterating what Ceo Randall Stephenson, at ts Ceo Randall Stephenson has said, they say this merger is procompetitive and proconsumer, they say no kpeter will be eliminated by this merger its worth noting here, they point out netflix has 100 million global subscribers and plans to spend 17 billion on streaming content in upcoming years. Also noting apple, google and facebook have billions of users and hulu as well amazon, billions of dollars on content this year, alone they say this they really are trying to point out here that this is a vertical merger and to challenge a vertical merger, the government must prove the merging parties enjoy sufficient merging power in their respective markets its showing how the market is so different now because of the digital giants back over to you. Yeah, thank you, julia. Mike, their case is were not that big and strong. Its interesting. Always about pumping up your competitors to say how great and scary they are and makes sense in some sense here to redefine what the market is that theyre addressing. Oh, for sure, even with the comcast nbu, they were afraid they were going to charge higher fees to netflix. That has not slowed netflixs growth and dominance over the next couple years. Ub, s is the latest firm to drop out of the key wall street reporting pact what it means for the industry right after this ubs and Morgan Stanley dropping out of a broker recruiting pact. What it means for wall street, after this you cant predict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Welcome back ubs announced today it plans to withdraw from the protocol for broker recruiting, a pact that makes it easier for people to go to rival firms the announcement comes a little less than a month after Morgan Stanley was leaving the 13yearold pact will withdrawing from it be enough to keep advisers from jumping ship bob matthews is a former managing director at smith barney brett burns from the law office of brett a. Burns. Welcome to you both. Bob, this is a pretty big move by ubs and Morgan Stanley. What are the implications going to be . Its the second firm. When there was only one, there was the hope it wouldnt catch on with two major firms dropping out, its highly likely the dominos will fall and the pack will implode on itself without the large firms, its got far less chance of hanging together as a process. And the problem with that is that the motivations behind it are firm centric the firms feel threatened, they stop recruiting heavily and theyre trying to close the back door i understand that, they have a concern about the protocol having flaws, it does, about issues where it wasnt used appropriately, it was. Advisers are concerned about their inability to move firms. Thats not the point the whole protocol was written for clients and i think thats being lost in the conversation this was not about firms and it wasnt about advisers. It was about clients the first line in the protocol, its only three pages long, the first line of the protocol says its about protecting client confidentiality and client freedom of choice. By taking this step and threatening the whole protocol, were putting clients at risk. Youre a member of the protocol we were as many as 1700 members of the protocol, there are still 1500, i believe. Brett, what will the implications going to be, if you want no put it the way of saying ubs and Morgan Stanley want to put up the fence, keep their brokers, keep those clients where they are yeah, absolutely. I mean, the fence just sprung up, a lot of these people had contracts initially and they were sort of held down by the protocol now that the protocol has been ripped off, these things spring to life. These brokers need to look at their contracts again. It will be harder for brokers to move it will be customers, as bob said, to find the brokers. And, you know, when a broker leaves, the customer now has to make a choice, do i stay with i am or go with the broker if you cant talk to the broker, how is the customer going to get that information i think its problematic i think other big firms will follow quick, Merrill Lynch will probably be gone by the end of next week. I have no knowledge of that, just my speculation. But why would they stay in it was meant to be a twoway street, they were basically going to recruit from each other. They opened it up to other firms as well, for like an antitrust kind of reason but then 1700 firms joined, and this is not what they had in mind guys, im sorry, i have to jump in for a second, we have breaking news on the cfpb. Kayla tausche, whats happening there . Reporter kelly, a d. C. District court judge ruled in favor of Mick Mulvaney, saying he can stay in the job atop the financial consumer Protection Bureau for the time being, in response to a temporary restraining order filed as part of a lawsuit by Deputy Director Leandra English. The judge, who was pointed by trump, said she wasnt likely to win that case on its merits. Of course that will be a decision potentially for another day. But the power struggle at the cfpc for now is over, a judge in d. C. Says Mick Mulvaney can stay in that job. There is a lawsuit by challenging his leadership of this Group Reporter that is the case where the judge says she is not likely to win that case. As for the temporary restraining order, the judge has ruled against that and in favor of Mick Mulvaney staying in that job. A significant victory for mulvaney who came out yesterday with a press conference and sort of established, look, im here to run the agency, if youre told, given a directive, i want to know about it and well deal with it, and he brought doughnuts, i dont know if that was a bring factor probably not for the judge, but to secure loyalty at the outset i would imagine having it settled in a relatively quick matter at least to the degree its settled now is probably the outcome that the administration was looking for. Itsthe employees fundamentally left in the middle of this, although again, it doesnt sound like Leandra English was around the office much to start the week off all right. Kayla, thank you again, our thanks to our guests from a moment ago, sorry we had to break in. Thats it for closing bell. Fast money starts right now. We had a good day today, a phenomenal meeting with the republican senators. We had it was very special that meeting in many respects i wish you could have been inside that room, it was very, very special, the camaraderie, somewhat of a love fest, they want to see it happen money money money and it was a love fest on wall street. You hear the music, you know what that means, its trump rally in full effect more progress being made on the senate side for the gop ta