Selling off as donald trump moved closer to the presidency. It is a far different picture at this hour. We are trading all of it today with pete najarian, josh brown, joe terra nova, and courtney gibson, who is also with us today for the hour. Pete, ill ask you to give us your view on sort of where the market looks today, what you think people should be doing because thats the most central question. Well, the initial knee jerk, of course, was the sell. Were down 800 points, and everybody was in a frantic because of the fact that they didnt have protection in place. What do you do when you dont have protection in place . You sell. The opportunity there was if you did have protection, we talk about volatility for a very long time. If you had some form of protection, scott, you were one of those people that was actually able to buy. I wasnt trading last night, but this morning its been absolutely unbelievable day. We went from down 800 to up around 50. Very, very early in the session. I think its a Good Opportunity to take some off the table, and now actually as volatilities come down, i think its been a great opportunity to buy in. I bought the vxx this morning. Josh, i wonder what you do today. Goldman saks has a note that says Trump Victory raises uncertainty. The victory is a surprise. The path forward, though, is not all negative. He does cut his target to reflect a higher risk premium. Thats a big question. What do you do now . I think a couple of things. My first takeaway is be very careful about who you are listening to. If you were listening to people that told you to do outrageous things ahead of the election, i think what went on between 11 00 p. M. Last night and about 10 00 a. M. This morning is an abject lesson is how you can chop your own returns up by trying to play binary event whs when you are na professional and are not equipped to do the kind of things quite frankly highwire acts and acrobatics. The second thing is to say just because the market has rallied back 800 or 900 points, which is unbelievable, by the way, just because weve seen that in the dow, you should not take that as a profound shift in sentiment. A lot of what were seeing is people who got way carried away with protection. All unwinding at the same time. So you get this massive burst of buying, but a lot of it is mechanics, scott. Its not people who woke up and said im bullish again. This is great. I agree with the goldman note. I think this ebulance will subside, and we probably give back some of this im not going to call it a debt cap balance or whatever you want to call it. Again, are we talking about trading in ten minute increments or talking about a time frame of five days and lets see if im right or wrong . For most people the answer is absolutely not. Good advice. Steve. So from my standpoint, i had been pretty light in exposures coming into it. Its a key opportunity on monday to get back in with some. Hedge funds for the most part have taken down their exposure to the market dramatically. Their nets were down. Their short positions were up. I cant imagine that theyre going in whole hog here because these are knee jerk reactions. I dont think theres a person out there who is not surprised about whats happening in the market today. These are professionals. Theyre not rushing in. Some of the moves are truly outstanding. I doubled up my nbix biotech position earlier. I sold it today. Up 10 . How can you not . Some of the stocks that have ripped today from the getgo, whether its the pfizer, merck, or things that have just really moved so dramatically. Stunning. Right. The steel stocks you take u. S. Steel, up 15 . I would be tempted to short it. I dont think any of us here can actually call it. Im excited for it. For full disclosure, i voted for hillary kicking and screaming because i like my family. I didnt want to have to find another place to live. If you look forward going out, if approximate you can have the donald trump of the last couple of weeks, he surrounds himself with the right people. His policies are actually very progrowth. Im not talking about the wall. Forget about that. You are talking about taxes, infrastructure, spend. In the first he wont be the first president that will take the radical platform that he got people to vote for him on to not follow through with those, right . If you take those good policies, very progrowth, very proeconomy, and i think you can see an explosive market ahead of that. Thats where ill look, but im not buying here. Im still looking for values. The market is back to levels. I was uncomfortable with them before almost. Ill wait for it to come back. Courtney. Yes. Its interesting. I wish last night i could have picked up some names personally for my portfolio. Unfortunately, couldnt get in on those lows. I do like to buy on dips, as we know. What were seeing our clients doing at luke capital right now is pretty interesting. A lot of our larger Institutional Investors had already positioned their portfolios where he were this going to go anyway. Its one of those situations where you have an asset allocation. You have the securities that you think are going to do well, and youre holding them. What we did see today, which was very interesting on our desk, was with some of the stocks that have rallied, whether its infrastructure related names, whether it was some of the Steel Companies that people think are going to do better, whether it was some of the pharma names, a lot of our clients have price targets. Theyre large Institutional Investors. When it hits their target, theyre disciplined, and they sell. Were seeing a little bit of that, and some folks picking up on names that they think will do better in the future, whether its financials and the like. Joe, you got two and a half months. You got, what, two months. Forgot were already in november. Two months, and i think the right thing to do is not to Pay Attention to the markets. Steven and i talked about that yesterday. I think you want to talk specifically about asset classes. I think you want to talk about sectors. Im sorry to interrupt you for a second. Lets talk about whats on the screen. Tenyear note yield goes over 2 . How problematic is that . Listen, fixed income is going to be a popular conversation right now. One of the strategies that really over the last couple of weeks has been out there for the Institutional Investor is getting away from the bondlike proxies and moving into things like the financials. I believe from a capacity of looking back over the last four to five years, this is the moment for the Institutional Investor when it relates to financials. You now have all the tail winds behind you. Youre not moving a speed boat. Youre moving a big battleship. You want to make sure you have certainty, that you have conviction. You have that for the financials right now. Looking at sectors maybe even more so today, right . Even more so this morning. Theyre going to get inflation because of a big spend, and you have a fed rate hike perhaps. And additional potential revenue stream for financial institutions. Specifically the goldman sachs, the Morgan Stanleys, the Asset Managers as it relates to dodd frank legislation being paired back. Is this what pops the did the trump does a Trump Presidency pop the bond bubble . Yes, because what he is talking about with his policies are you know what he wants to do in terms of spending, you dont know what he wants to do or how he is going to meet it on the other side from the cost containment. Right . He hasnt been clear about that. His policies are inflationary as we know them now. I had been not related to trump because i didnt think he was going to win. I thought it would be close, but i had been looking for the bond market to trade through the 2 percent recall. Anybody who thought that the fed is not going to go in december is lunacy. Were eight minutes into the show and are have yet to Mention Health care, which is going to be noodles today. I did mention that. I said health care. Guys not looking at look at all of us. I got to tell you. This is what traders and investors are talking about today. What you have seen this morning on the biotech index is the biggest gap open of all time. Like since they have recorded data on these sectors. What you have seen in the xlv, the biggest gap open for that index and holding it going back to august 2015. I think the exhalation thats happening in this group right now is really noteworthy because this is where the growth at a reasonable price stock resides. You know what, in financials i want to go back to that really quick i got to on sectors. People need to actually separate the investment banks that you were talking about versus the asset owners that have a large amount of assets and alternatives. That carried interest piece is going to be an interesting, interesting discussion now that trump actually is in office and the question is is he really going to try to change the tax rules on carried interest . Yeah. Let me just jump to phil lebeau who has a news aeither will up in chicago for us. Scott, lets call it a part of General Motors because General Motors is cutting 2,000 hourly workers at two of its plants. One in lordstown, ohio. The other one in grand river in lansing, michigan. This is because they have too much supply, so theyre pulling back the third shift of production at both of those plants. In the case of lordstown, its because they make the chevy cruz there, and inventory is building up. Theyre pulling back production of that ship starting in the First Quarter. In grand river its the cadillac ats, the cts, as well as the chevy couple aerothat are built at that plant, and as a result of Bloated Inventories with those vehicles, theyre cutting the third shift there. Bottom line is this, scott. We will see more and more of this from automakers which are running most of their plants on three shifts, and we see auto sales plateau. Theyre going to cut that third shift because they dont want to build up inventories too much. In the case of General Motors, theyre going to be cutting the third shifts and laying off 2,000 workers permanently starting in the First Quarter of next year. Thanks. General motors shares ticking by 4. 5 . For more in the market, reaction to the election results. Lets bring in someone who makes a business in volatile trading. Doug is the ceo and cofounder of virtu financial. Joins us live from new york city. Good to see you. Good to see you, scott. Want to give us an idea of what last night was like . It was a long night. I didnt get a lot of sleep. That makes two of us. A lot of other people around here, i should say. Yes had our whole crew our global crew was in. We were making markets all evening. The great story was that the markets didnt break. They performed really well, as has been reported. Obviously the s p futures went limit down. They continue to trade. There was price discovery. There was a lot of trading. We traded about 5 million or 6 million times before the equity markets open, which is generally what we do in a full day. There was a lot of good news in the fact that the market actually performed very well. Wow. In all different asset classes, if you will. Currencies must have been big. Just giving what the peso had been doing over the last 24 hours. Absolutely. The volumes in the peso were two to three times the normal. The overnight volumes in currency on the cme were about five times what we typically see. The nikkei out in japan was active. They closed before the president elect could get up and make his concession or make his speech, if you will, and so as a result, the nikkei was down about 5 . It will be an interesting open in japan in about 12 hours. A lot of volatility. A lot of volume. The good news, as i said, is the market as a whole performed very, very well. I just want to remind our viewers, we are waiting for the president at the white house to make his first Public Comments after the trump win last night. Doug, i just tell you that just in case we have to jump in and interrupt you for the president. What you said at the top, seems to be the most important that the Market Structure worked, and it worked to a t. Yeah, absolutely. Obviously theres been a lot of cataloged events where theres been, you know, flash fractures and what not. There was an incredible amount of volume and volatility last night. You really have to applaud the Market Structure, the cme, the s p futures went limit down for a long time. They kept trading. Thats the important thing. People were able to have price discovery, liquidity gathered around that limit down price, and there was a bit of a bounce. As obviously weve seen today, a full recovery. The Market Structures worked very well. Im not sitting here defending the entire Market Structure, but we have to give it credit. Theres a lot of risk that was transferred last night. Very, very effectively. My firm was involved. We traded an awful lot last night, and thats our job to transfer risk between buyers and sellers. The global interconnected market worked exceptionally well last night. Doug, its joe. Lets talk about the regulatory policy and the changes that we may feel here. Obviously, Hillary Clinton was in support of a transaction tax on hfts of which you are market maker, not an hft. Lets be clear about that. Now do you feel comfort that that transaction tax will be removed and that secondarily do you believe the Investment Banking community reengages on proprietary trading,and how do they go about doing that . Human capital algarythmic problems. Obviously, its not part of trumps platform, so im very optimistic now that, you know it doesnt make a lot of sense, and i dont think it will be on the agenda. I think the point you made about regulation, i think, what the president elect has said is that he is in favor of sensible regulation. Whether that means dodd frank or more importantly the volcker rule gets rolled back and banks can become more proprietary traders, its difficult to say right now. I think really well see a less activist approach from washington in terms of regulating the markets, and i think ultimately that will be a good thing for the marketplace. We have seen a real lack of confidence and conviction. The volumes in the Third Quarter were extraordinarily low. The intraday volatility was extraordinarily low. Having the markets have that confidence and investors get back into the market to me is the most important result of this election. Doug, well make that the last word. Its good to talk to you today. Thank you for sticking with us. Du. Lets bring in ceo and legendary investor nelson peltz. Its good to talk to you this morning. Hey, scott. Same to you. Especially given the events of the last 24 hours, we just heard, and im not sure if you had a chance to hear it or not, a gracious speech by Hillary Clinton followed by what was certainly a gracious speech last night by the president elect. The market looked ugly last night. It has certainly shown a different picture today. The market seems to be applauding the way our democracy works even though sometimes its not pretty. Scott, thankfully the election is over. The market correction, as you said lasted about a nanosecond, and the pollsters were 0 for 2 should find new jobs. Most important, i think, that we all need, as hillary said and donald said, to come together in support of our new president. You know, donald isnt an ideolog ideologue, and i hope and i know he will he will bring this country back to the center. Scott, thats where we belong. Thats where this country works. From the center. You know, im involved with an Organization Called no labels. You can visit their website, which reaches across the aisle and bring everybody together and donald has now control of both houses, but i still believe that he will do everything he can to get the democrats to buy in and get this country working again. You know, he has to take the easy wins first, which is upgrading our infrastructure, which has been overdue for 20 years. That both candidates agree on that. They both agree on repatriating the corporate cash. Finally, finally lets bring it home. I think donald will get some Corporate Tax reform, which i think will actually help create more jobs. You know, im pleased with where both candidates spoke last night and today, and i am very positive about where were going to go from here on in. It was a rough election, but its behind us, and i think were all going to come together. What do you make, nelson, of the way that the market reacted so violently last night and the way that it was able to recover today . What is the message in that, if you would, for the people who are watching, the longerterm investors who are trying to decide what to do, they want and are in need of advice from experienced folks like yourself. What do you tell them on a day like this given what the last 24 hours have looked like on wall street . You know, scott, were very longterm, so we pay no attention to these shortterm swings, but there were short sellers, there were long buyers all the time in these markets. These shortterm swings are overcorrecting in both ways, but here the market is up nicely today. People feeling good about the future. I think they feel that everybody is hopefully going to get behind our new president. I think thats going to happen. You know, it was a nasty election, but its over. Now were all going to act like americans, get back to making this country great again. Sorry to borrow that phrase, but i really mean it. I think thats whats going to happen. Well, knowing mr. Trump, he might have trademarked that. I did. I did. All of a sudden they woke up and said, you know, dividends arent really so bad anymore, and these Big Companies arent so bad anymore because after labor day if you were paying a dividend, your stock price got knocked to hell, but right now, you know, we corrected september pretty quickly. The market has come back. I think i think this election scared people for a second, but now we understand weve got a guy there who wants to get rid of this suffocating bureaucracy and all of this regulation that has been troubling washington, its been troubling Small Business for decades. I think were going to get rid of it. I think people are going to feel are starting to feel good about whats happened here. Thats the way they should feel. This is a way america is supposed to work. And maybe thats why i said, you know, one of the reasons why the market has reacted the way that it has, you have you know, there was a wonderful quote in the Atlantic Monthly wherein it said the media made the mistake of taking donald literally but not seriously, and his supporters took the liberty took donald seriously but not literally. I think that sort of sums up what happened here. I really do. I think thats what happened. Its going to be interesting days ahead. Nelson, im going to let you run. The president is making some comments. His first, in fact, on the election of donald trump as the 45th president of the United States. Nelson, well talk to you again soon. Heres the president of the United States. Good afternoon, everybody. Yesterday before votes were tallied i shot a video that some of you may have seen in which i said to the American People regardless of which side you were on in the election, regardless of whether your candidate won or lost, the sun would come up in the morning, and that is one bit of prognosticating that actually came true. The sun is up. I know everybody had a long night. I did as well. I had a chance to talk to president elect trump last night about 3 30 in the morning i think it was to congratulate him on winning the election, and i had a chance to invite him to come to the white house tomorrow to talk about making sure that there is a Successful Transition between our presidencies. Now, it is no secret that the president elect and i have some pretty significant differences, but remember, eight years ago president bush and i had some pretty significant differences, but president bushs team could not have been more professional or more gracious in making sure we had a smooth transition so that we could hit the ground running. One thing you realize quickly in this job is that the presidency and the Vice President y is bigger than any of us. I have instructed my team to follow the example that president bushs team set eight years ago and work as hard as we can to make sure that this is a Successful Transition for the president elect. Because we are now all rooting for his success and uniting and leading the country. The peaceful transition of power is one of the hallmarks of our democracy. Over the next few months we are going to show that to the world. I also had a chance last night to speak with secretary clinton, and i just had a chance to hear her remarks. I could not be prouder of her. She has lived an extraordinary life of public service. She was a great first lady. She was an outstanding senator for the state of new york, and she could not have been a better secretary of state. I am proud of her. A lot of americans look up to her. Her candidacy and nomination was historic and sends a message to our daughters all across the country that they can achieve at the highest levels of politics, and i am absolutely confident that she and president clinton will continue to do great work for people here in the United States and all around the world. Now, everybody is sad when their side loses an election. But the day after we have to remember that we actually are all on one team. This is an intermural scrimmage. Were not democrats first. Were not republicans first. We are americans first. Were patriots first. We all want whats best for this country. Thats what i heard in mr. Trumps remarks last night. Thats what i heard when i spoke to him directly. I was heartened by that. Thats what the country means. A sense of unity. A sense of inclusion. A respect for our institutions, our way of life, rule of law, and respect for each other. I hope that he maintains that spirit throughout this transition, and i certainly hope that is how his presidency has a chance to begin. I also told my team today to keep their heads up because the remarkable work that they have done day in, day out happened without a lot of fanfare, often without a lot of attention. York work in agencies. Work in obscure areas of policy that make government run better and make it more responsive and ma make it more efficient and make it more servicefriendly so that its actually helping more people. That remarkable work has left the next president with a stronger, better country than the one that existed eight years ago. So win or lose in this election, that was always our mission. That was our mission from day one. And everyone on my team should be extraordinarily proud of everything that they have done. So should all the americans that i have had a chance to meet all across this country who do the hard work of building on that progress every single day. Teachers and schools, doctors and e. R. Clinics, Small Businesses putting their all in to starting something up. Making sure they are treating their employees well. All the important work thats done by moms and dads and families and congregations in every state. The work of perfecting this union. So this was a long and hard fought campaign. A lot of our fellow americans are exaltant today. A lot of americans are less so. Thats the nature of campaigns. Thats the nature of democracy. It is hard, and sometimes contentious and noisy. Its not always inspiring. To the young people who got into politics for the first time and may be disappointed by the results, i just want you to know you have to stay encouraged. Dont get cynical. Dont ever think you cant make a difference. As secretary clinton said this morning, fighting for what is right is worth it. Sometimes you lose an argument. Sometimes you lose an election. You know, the path this country has taken has never been a straight line. We zig and zag and sometimes we move in ways that some people think is forward and others think is moving back. Thats okay. Ive lost elections before. Joe hasnt, but, you know so ive been sort of you beat me badly. Thats the way politics works sometimes. We try really hard to persuade people that were right, and then people vote, and then if we lose, we learn from our mista s mistakes, we do some reflecting and get back in the arena and try even harder next time. The point, though, is that we all go forward with the presumption of good faith in our fellow citizens. Because that presumption of good faith is essential to a vibrant and functioning democracy. Thats how this country has moved forward for 200 years. Thats how we pushed boundaries and promoted freedom for around the world. Thats how weve expanded the rights of our founding to reach all of our citizens. Its how we have come this far. Thats why im confident that this incredible journey that we are on as americans will go on. Im looking forward to doing everything that i can to make sure that the next president is successful in that. I have said before i think of this job as being a relay run. You take the baton. You run your best race. Hopefully by the time you hand it off, youre a little further ahead. You have made a little progress. I can say that weve done that, and i want to make sure that handoff is well executed because ultimately were all on the same team. Thank you very much, everybody. That was the president speaking for the very first time publicly on the election of donald trump, saying that he spoke to mr. Trump last night, invited him to the white house tomorrow, so we expect that to be quite an event tomorrow at the white house. Our john harwood, our chief washington correspondent listening in here. John, pretty extraordinary stuff over the last 24 hours. If you take the speech of mr. Trump, the speech of Hillary Clinton, and this one by the president , we bicker pretty good, but we also come together to celebrate our democracy pretty good as well. Theres no question about it. That was a speech from president obama of precisely the kind that donald trump would want to hear as Hillary Clintons was. He said that he is going to do everything he can to make the transition from his presidency to donald trump as successful as the one from george w. Bushs to his. He said he is our president now. We all have to look forward to try to make him as successful as we can, but he also, of course, spent a lot of time consoling Hillary Clinton, consoling his coalition, consoling his team at the white house. Young people, urging them not to give up hope. This is a president who knows that his core priorities, especially on things like the Affordable Care act, his efforts on climate change, his efforts on Financial Regulation are all in grave peril right now. Maybe in consoling his supporters, he was also consoling himself a little bit, scott. Yeah. John, thanks so much, john harwood, wrapping that up for us. We do have another biggest right now. Billionaire investor, outspoken donald trump supporter carl icahn joining us on the phone from new york city. Carl, its good to you can that to you today. Yeah, good to talk to you, scott. How does it feel . Well, you know, im certainly happy about it. I really think that its very, very important thing for our economy in general. A step in the right direction. Thats why i supported trump throughout. We must stop the gridlock that you have in washington. The Federal Reserve cannot do this alone. We are holding this economy up with zero rate Interest Rates, which is unheard of and i think and its not just to be saying this. You cannot work. Youre just building a bubble. I think this is going to be a major change, and, you know, i dont think its really such a personal thing. You know, against hillary. I personally met her a few times and like her. The issue here is its the going against the establishment and in any this happens with companies. You go one way too long and it has to be changed. It changes very in this case i think very important. Carl, what do you make of the way the stock market has traded over the last 12, 15 hours or so . Well, yeah. I think last night last night at the risk of being i was at the trump thing at 11 30 i saw that market going down like insanity, says and i personally, you know, dont believe that trump is bad for the market necessarily. I left and went home, and i bought a lot of stock in the overnight market. Im glad i did that. I guess that is what makes me happy today too. I just usually i dont trade, so, you know, i feel good about that because i really dont think that having donald in the white house i never thought this is going to be so terrible. He is not going to do such crazy you know, everybody is saying he is going to do this, he is going to do that. I think donald is a real smart guy. Ive known him for years. I think he is going to do things for this market one of the most important things i hope happens and i have said all along, you know, regulatory agencies you do need them. Its like a rule of law. You do need them, but in many cases they run amok. The e. P. A. Has just run amok, and its run amok, and i have said this over and over. Its killing the refinery business. Its putting refineries out of business for no reason. Its just an absolute did you speak to did you speak to donald after he was declared the winner last night . I think donald has enough to do right now without having to bother to just listen to people congratulating him. I intend to speak to him. I think that there will be many positive changes. I think, again, you know, i point out that to get back to my point, just for getting the e. P. A. There are good regulatory industries, good regulation, but to get companies comfortable again, to get them confident again, says they have to know their business is not at war with them, and i think under the Obama Administration it was perceived that business was at wash that government was at war with business, and you cant have that in a Free Enterprise system, and im not here to criticize obama. Im just saying that you cant have that, and thats why im so strongly behind donald. What do you think he is going to do . Do you think were going to see tax reform . Do you think were going to see a big Infrastructure Spending . You see the way that bond yields are trading today in anticipation that we may see that . We may see a good bit of inflation. What should he do first . As i have said and conceptually you have a tremendous amount of capital. Ironically, Hillary Clinton said that in a way. Theres a tremendous amount of capital to end up in companies that have nowhere to go because theyre afraid to invest in the machinery of this country. To go et away it doesnt all have to be technology. I think technology is all you still got a great country. Great working people. Great factories. You can do a hell of a hot here. This happened after world war ii. Everybody thought theres going to be a depression. What are they going to do, and you had one of the greatest rises in the economy because business was there incentiveizing government was there incentiveizing business with a marshall plan. Something like that. To spend it in buying machinery and factories and the productivity of their workers. You dont have productivity today. I mean, this is basically im not, you know, going to sit there and take a big i look at the big picture. Thats what i do in my businesses to figure out what you can do and what kind of moves you can make on a big picture basis and what you have to do is incentivize business. Doesnt even have to be a tax change, but just incentivize. Let the average ceo know government is behind you. Government is pushing you. Hey, look at the railcar business. You know, i bought in the mid 1980s. You can ride on my railcars because the government incentivized railcar building. A government you have to feel government is with you. If government is not with you, then were like argentina. What or was argentina. 100 years ago we were the same kind of country as argentina, 150 years ago, and instead we incentivize and in argentina they still had an economic establishment. This is where we have to go. We have to get that done. I think trump is an extremely bright guy, and i think he is going to get this done. He has now the open road. Somehow he got it. Look, i was with him and behind him the whole time, but, you know, its not just one person or two people doing it. He said it right last night. This is a movement. This is a movement going across the world. It is time to break up these establishments that you have. By the way, im not against regulation. I think wall street does need regulation. You know, im talking against my own friends, but you do need it. Im not telling you that you cant have rule of law or regulation, but you cant let the regulators start running the country. I mean, there are some people wondering now if you are going to get a roll back of dodd frank and some of the other regulations. Would you be in favor of that . No. I just told you that i just told you that i believe that you must have you cant have a market that runs amok either. It has to be a middle ground. Therefore, wall street ran amok in 2008, okay . , a so you need regulation. Im not going into every item of dodd frank, but you need some regulation wrr regulation. Im not here saying, oh, lets have the wild west. You cant have an e. P. A. Bankrupt companies. Its not the job of a regulator to go ahead and bankrupt you where. If you were feeling negative or cautious about the market, from what i can tell is at least the last year and a half do i sense a maybe newfound optimism in your voice about where you think the market is and where it can go as a result of mr. Trump being elected president and some of the policies that he may be able to put into place . Well, look, as you know, i have been very hedged, and now is the first time that i think that there is a chance for our economy to come out of this. Again, the reason that i was so negative, you know, and for the last few years is that negative in that look at the earnings, look what weve done. You cant i have said this to you many times or said it not that its my job to say it to people. You cant have an economy run on zero Interest Rates, and the government was doing nothing, nothing, to also let business perceive theyre behind them. Thats just the one thing. Its just its almost a perception that you must feel that government is with you. Not against you. Unfortunately, the Obama Administration, you felt the government was fighting you. Look, i have a lot of companies. I built up 10, 15 companies. I used to spend a fortune on my railcars, on my refineries, and i and many others were frightened to really put capital into this country, and now i think that whole perception is going to change. Would you i mean, donald himself has said he likes low Interest Rates. If he wants to keep rates low, would you urge him to do differently . He has also suggested that maybe janet yellin is not going to be the Federal Reserve chair in a trump under a Trump Presidency. I dont frankly, you know, donald in different speeches he has said different things. I frankly havent heard of him saying give me low Interest Rates. I think he is generally talking about what i want to stimulate this economy, i think. He said he likes to borrow money. He said he likes low rates. I mean, he is a low rate kind of guy. Why is he going to get rid of janet yellin . I certainly raised the issue. He has called her out on a couple of occasions. Im sure youre aware of that. Yeah, but do you think she should stay . Im not going to get into that. Its not my job to decide, you know, who should be in the Federal Reserve. I will say you have to shake up a few of these theres some good regulatory agencies, but you still have to shake up a few of them, like the e. P. A. I dont always say that over and over because im involved. There are regulatory agencies that you must shake up. Im not going to get into the others. The other ones i think the ftc has done a good job. Thats the ftc. I am not sure where you would go with this. I would tell you that you cant have strangulation by regulatory agencies. You cant perceive the government is against you. You have to have a rule of law. Wall street has taken advantage too much of a lot of the rules. I know a lot of my friends are going to be mad at me for saying this, but, come on. Wall street took advantage, and i dont think illegally in most cases, of the rules in 2008. Coming out with securities that werent what they were worth. Im a plainspoken guy, and i dont care what i say anymore, so im saying it. Now is an opportunity. Thats why i was behind donald. I like him. I think he is a smart guy. Look, everybody has their own thing. Everybody has flaws. Youll have to bring in a guy like donald. I think donald will build a consensus in congress and were going to see i mean, im hoping to see something after world war ii where you really went in and you really got things moving. What if he asks you again to be treasury secretary . Would you reconsider . No, no. I am not im not leaving i have a business. I got 20 companies. I work day and night on them. Im not leaving, and i dont think i would be the right guy to fit into washington. You know, im not an establishment guy. I never worked for anybody in my life. Im not an establishment kind of guy. Theres no way i would do that. Would you be an sad advisor of any kind in his look, if donald in his economic department. I would be happy in i in way i could do to help them do what i think should be done, which is stimulate business and incentivize, but i think donald has some smart guys. He is going to donald is great at picking good guys, and i have seen him do that. You know, like everybody else, he has had his ups and downs. So has everybody else. You cant have a situation where you have a gridlocked establishment in this type of an economy, and thats why i think this is a great moment, i hope, for our economy, and im really thrilled that he won. Essential like everybody else i have my doubts who was going to come, but why do you think the polls were so wrong . Why do you think people were so wrong, and why do you ultimately think that he won . You know, i think i said this along the way. When you listen to donald and you got off all the craziness. Against hillary. Against donald. All this nuttiness. If you just look at what donald was saying, i think that even the pollsters i think they didnt see the forest through the trees. I think you know, people have a way of doing that. When its going good for new york establishment, you know, everything is good. Isnt it wonderful . Isnt it wonderful . Sense of entitlement. Out in the hamptons you just hear sense of entitlement. There is no sense of entitlement in a dem creates. I think that i listened to him speak, and i always say to myself, you know, if the middle class guy that is worried about this next paycheck, worried about his job, worried about getting a good job, yeah, you got some employment, but a lot of people are out of kbof emplo arena, and you dont really make that much money. You are a skilled worker. You dont have productivity. You listen to him say im going to change that for you. You listen to hillary say, hey, we could have more of the same. Obama has done a great job. Its strange listening to it. It was really striange. You listen to hillary, and, you know, as a person i met her a few times. I like her. Nothing personal. You listen to her going on and talking about on one hand we must change things, and then the point is where have you been for 30 years . On the other hand, were going to keep obama care. Were going to keep away had we got. Were going to keep going. I mean, you listen, and it doesnt make sense. Then that same guy in the middle west who doesnt have a real good job, listens to donald, why wouldnt he vote for donald . I dont think its i dont think he has to go home and agonize over it. Why wouldnt he vote for him . Now, you had all this digression from it, but when you listen to that thing, to me it was open and shut. Black and white. Why the heck wasnt somebody voting for donald instead of for the establishment . Instead of hillary . They certainly did. They did in big numbers. Donald trump is the president elect of the United States. Carl, before i let you run, i would be remiss if i didnt ask you. You said you ran home and bought more stock. You didnt run home and buy more herbalife, did you . The s p. You know, i have obviously you know from the 13 days, have been buying herbalife. I have the voter right 50 of it. We got that right from the ftc. It saved me having to talk to the other reporters that keep asking me about, you know, buying the herbalherbalife. I have the right to go to 50 of it. Im not saying what im doing, but, obviously, i have been buying it, and i think its undervalued, and so thats are you still thinking about taking it private . I cant really comment on that. You know, i have this confidentiality with the board, and i really cant comment on anything that should be the perview of the board. Can i get you on the record quickly . I dont think you have reacted publicly any more than a statement to Michael Johnson as ceo saying that he was leaving. Can you react to that . Well, i think listen, Michael Johnson has done a great job. He has brought this company through two, three years of what i consider to be unnecessary this company serves a purpose. Again, it creates jobs for a lot of people. I think that, you know, did they do some stuff . Did some distributors say things and do things that maybe they shouldnt have done . Im not going to get into that. It does serve a purpose. The model has worked for many, many years in many countries. It certainly makes for employment. Look, china has been up and down, but continually to move up, although, you know, like anything else, its been some down side, up side. You got billions of people around the world looking for a job. If you are if you are a worker there and you have friends, this is a way to almost change the retail paradigm by going in and selling this product. I think it is a good product. I use some of them. I use the vitamin that they have. Its kept me from getting a cold, actually, i think. What im saying is that i think i think that its a great paradigm. I think again, i have no personal animosity with bill ackman. In a certain way, i have to put it this way because weve had our differences. I sort of like him. I think he is an interesting guy. I just think he is just dead wrong in this area, and its unfortunate, but sooner or later thats going to come to a head, and but i think obviously its under valued, but right. I just bought the s p when i but i think i was tongue and cheek. Thank you for calling in. Its good to hear from you today, the day after donald trump was elected president. Actually the same day since it happened in the middle of the night. Well talk to you soon. Sure. Thanks. Carl icahn. Weve been talking about treasury yields. Jack jackie deangeles. Whats driving the move in bonds today . Break it down for us. Remember the curve was steepening before we got caught up in election fever. A combination the fed said a couple of different times they are willing to let the economy run hot to make sure we have inflation. Now we have what seems to be a more busfriendly administration. Add that the fact he talked about fiscal stimulus and cutting taxes. The only solution to that would be issuing more debt short term. That could be weighing on longterm treasuries, as well. Brian, youre looking at the charts. The 10year note. What does the chart say about its next move . I think theres 2 level is a huge psychological level weve hit. When you look at the down trend, lets call it the brexit down trend in Interest Rates, weve broken that to the upside here. We could see it 1. 5 weve seen in the 10 year. 2. 25 is in the cards. Weve had 30 years of declining Interest Rates. Now the borrowing cost will likely increase under this new administration. Certainly we could be back in an uptrend on Interest Rates, 2. 25 the next stop for me. Gentlemen, thanks. Well see you for the live show online tomorrow at 1 00 p. M. Eastern futures now. Thanks. We are back in two minutes. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. Three hours to go till the markets close. Lets get your final trades. I love this Morgan Stanley note, make my portfolio great again. Wheres that hat . There it is. Im going to task you guys with that. What am i going to be pharma which are names i loved a very long time this. Extreme move to the up side is an opportunity. We will see some pullback. Im looking at oil and exxonmobil. Huge buyers in there. This will go higher. Time for sector rotation as a result of this win . I would say this. If you think that some of the things we are bandying about that trumps going to do would really happen, that would not just be great for u. S. Stocks, it could ignite entire sections of the world. It may be also things that may not happen. Correct. Overregulation on health care and biotech industry. What . You think trump is for more regulation . No. Im saying things that may not happen. Right. Thats why those stocks are off to the races today. I completely agree there is an exhalation there. If you ran for the hills in the last year and a half after a Hillary Clinton tweet is now the time to come back home. If you ran for the hills, then you sold some of the highestquality stocks in the world. Absolutely. You dont wait for days where theyre up 11 to get excited about them again. Let the next murmuring in the market come along and use that as your opportunity. I dont think anybody thought through their portfolio after this big surprise. Im saying maybe its not that difficult to do. If you think Interest Rates are going to go up if theres going to be an inflationary that was my base case. If youre going to buy anything, buy the domestic companies. I think theyll do the positive things not do the other stuff. Thats my view. I would buy a company that had great quarter, great forecast and the stocks beaten up. Northrop grubman took off as it relates to the defense names. You leave your portfolio where you had it yesterday. Any of the sectors are pricing in a signature amount today. At this point, if youre not sitting in cash, youre waiting for a dip because i firmly believe there is likely going to be one. If you take stocks like usa steel, id be more prone to shorting it than buying it. How we are paying for it . Are we taking on more debt, the debt we shouldnt have . Is anybody talking about selling u. S. Bonds . Can we get a chart though of the xme . These stocks sniffed this Trump Victory out. If you look at martin marietta, some of the xlb names, materials, industrials, these stocks have already been ripping in the case of xme, snapping a fiveyear down trend relative to the s p. They were moving up. They are moving up on the fact capacity is now constrained in all the Mining Operations around the world. I think they got a whiff of the possibility of massive infrastructure. The longer term thinkers, they are going back to financings thinking about the ability to raise dividends, less restriction in that capacity. If there is one area where youre measuring whats the monumental change today for a longer term money manager who is actually managing a significant amount of money, it is on the financials. Because of the move youve seen going into this. The financials are virtually 52week highs across the board. That is a significant move in a short period of time. You need to wait and be patient. I agree. Its crazy to go out there and buy stocks that moved before you even know who is going to be his treasury secretary. Before you know who is going to be his cabinet. Treasury secretary is scott baio. I put my name in the hot. Chochi comes in. Chochi is inflationary. What a heck of the last 12 hours its been. The way the market looked last night and the way it looks now. We should do this every month. Can we do it again . Doover . Welcome to this post election day edition of power lunch. We will look at the vote, aftermath and more importantly, what happens now. Can donald trump really deliver on all the big league promises hes made . With us for the entire show the legendary jack welch. We have so much to ask jack, including the number one piece of advice he would give president elect trump. Punch your vote for power lunch. We begin right now. Welcome to power