To fire all of our Great American workers that got you there in the first place, you can move from michigan to tennessee and to North Carolina and South Carolina, you can move from South Carolina back to michigan, you can do anywhere, youve got a lot of states at play, a lot of competition, so its not like, oh, gee, im taking the competition. Youve got a lot of places you can move. And i dont care as long as its within the United States. The borders of United States. There will be a major border tax on these companies that are leaving and getting away with murder. And if our politicians had what it takes they would have done this years ago and you would have millions more workers right now in the United States that are 96 million really wanting a job and they want get. You know that story. The real number. Thats the real number. So thats the way it is. Okay, go ahead. A question about the Supreme Court and the border security, but i also want to ask you about something you said on twitter this morning. Are we living in nazi, germany. What were you driving at there . Do you have a problem with the Intelligence Community . On the Supreme Court, whats your timeline . You said a while ago you were down to four. Have you conducted those yet . Whats your timeline for nominating . On the border fence, it now appears clear u. S. Taxpayers will have to pay for it up front. What is your plan to get mexico to pay for it . I got it. Anything more . It is it. On the fence. Its not a fence, its a wall. You just misreported it. Were going to build a wall. I could wait about a year and a half until we finish our negotiations with mexico, which will start immediately after we get to office. But i dont want to wait. Mike pence is leading an effort to get final approvals through various agencies and through congress for the wall to begin. I dont feel like waiting a year or a year and a half. Im going to start building. Mexico in some form, and there are many different forms, will reimburse us and they will reimburse us for the cost of the wall. That will happen, whether its a tax or whether its a payment. Probably less likely that its a payment. But it will happen. So remember this, okay, i would say we are going to build a wall and people would go crazy. I would then say who is going to pay for the wall . And people would all scream out, 25, 30,000 people, because nobody has ever had crowds like trump has had. You know that. You dont like to report that but thats okay. Okay. Now we agree. Finally, he agrees. But i say who is going to pay for the wall . And they will scream out, mexico. Now, reports went out last week, oh, mexico is not going to pay for the wall because of a reimbursement. Whats the difference . I want to get the wall started. I dont want to wait a year and a half until i make my deal with mexico. And we probably will have a deal sooner than that. By the way, mexico has been so nice, so nice. I respect the government of mexico. I respect the people of mexico. I love the people of mexico. I have many people from mexico working for me. Theyre phenomenal people. The governor of mexico is terrific. I dont blame them for whats happened. I dont blame them for taking advantage of the United States. I wish our politicians were so smart. Mexico has taken advantage of the United States. I dont blame the representatives in various president s, et cetera, of mexico. What i say is, we shouldnt have allowed that to happen. Its not going to happen anymore. So in order to get the wall started mexico will pay for the wall. But it will be reimbursed. Okay . Supreme court judge. So as you know i have a list of 20. Ive gone through them. Weve met with numerous candidates. Theyre outstanding in every case. They were largely recommended and highly recommended by federalist demeant was involved group and he is a fantastic guy. So between leo and jim and some senators and some congress people, we have a great group of people. Ill be making the decision on who we will put up for justice of the United StatesSupreme Court, a replacement for the great, great justice scalia. That will be probably within two weeks of the 20th. So within about two weeks probably the second week, i consider the first day because well also be doing some some pretty good signings. And i think what well do is well wait until monday. That will be our really First Business day as opposed to doing it on friday because on friday people are going to have a very good time at the inauguration. And then saturday as you know were having a big Church Service and lots of good things are happenhappening. So our first day, and you will be invited to the signings, we will be doing pretty good signings on monday, tuesday, wednesday, thursday, friday, and then also the next week. And youre all invited. But on the Supreme Court, ill be make that decision and it will be a decision which i very strongly believe in. I think its one of the reasons i got elected. I think the people of this country did not want to see what was happening with the Supreme Court. So i think it was a very, very big decision as to why i was elected. [ inaudible ] i think it was disgraceful that the intelligence agencies allowed any information that turned out to be so false and fake out. I think its a disgrace. And i say that and i say that. And thats something that nazi, germany, would have done and did do. Its a disgrace. That information that was false and fake and never happened got released to the public, as far as buzzfeed, which is a failing pile of garbage, writing it, i think theyre going to suffer the consequences. They already are. And as far as cnn going out of their way to build it up and by the way, we just found out, i was coming down, michael cone is a very talented lawyer, good lawyer in my firm. Was just reported that it wasnt this michael cohn were talking about. All night long, michael cohn. I want to see your passport. He brings his passport to my office. I say, wait a minute, he didnt leave the country. He wasnt out of the country. They had michael cohn of the Trump Organization was in prague. It turned out to be a different michael cohn. Its a disdpras grace what took place. Its a disgrace and i think they ought to apop jiz logize to sta with, michael cohn. Go ahead. Go ahead. Go ahead. No, not you. Not you. Your organization is terrible. Your organization is terrible. Lets go. Go ahead. Quiet. Quiet. Shes asking a question. Dont be rude. Dont be rude. Dont be rude. No, im not going to give you a question. Im not going to give you a question. You are fake news. Go ahead. Go ahead. With the sanctions that they put on with the hacking. I dont think he went too far. What do you think of Lindsey Grahams plan for a bill to send you tougher ones . Plans to send me what . Tougher sanctions. I havent heard Lindsey Graham is going to do that. Lindsey graham, ive been competing with him for a long time. Hes going to crack that 1 barrier one day. I didnt realize Lindsey Graham was still at it. Its ogall right. I heard hes a nice guy. Ive been hearing it. Ive been hearing it. Go ahead. Go ahead. Youve been waiting. As far as we understand, the intelligence stand up. Impanel from bbc news. Another beauty. Thank you. Thank you. As far as we understand it, Intelligence Community are still looking at the allegations. Its false news, as you describe it. If they come back with any kind of conclusion with any of it stands up, if any of it is true, will you consider your position, would you think they cant come back. Yes, yes, go ahead. Go ahead. Can you go ahead. Public state news and all the problems seen throughout the media over the course of the election, what reforms do you recommend for this industry here . I dont recommend reforms. I recommend people that are that have some moral compass. You know ive been hearing more and more about fake news and talking about people go and say all sorts of things. I will tell you some of the Media Outlets that i deal with are fake news. More so than anybody. I could name them but i wont bother. You have a few sitting right in front of us. So theyre very, very dishonest people. But i think its just something were going to have to live with. I guess the advantage i have is that i can speak back. When it happens to somebody that doesnt have this, doesnt have that kind of a megaphone, they cant speak back. Its a very sad thing. Ive seen people destroyed. Ive seen people absolutely destroyed and i think its very unfair. So all i can ask for is honest reporters. Yes. I just want to follow up on the questions about the u. S. Intelligence community and be very clear about what youre saying. Do you trust your u. S. Intelligence officials and what do you say to Foreign Policy experts who say youre actually weakening National Security by waging this war of words against that community . Intelligence tasbeintelligen vital and very, very important. Were going to put in mr. Pompeo and others, you know the senator, dan coates, were going to put in outstanding people. Within 90 days theyre going to be coming back to me with a major report on hacking. I want them to cover this situation. I also want them, however, to cover maybe most importantly, because were hacked by everybody. You know the United States, our government, out of a list of 17 in terms of sbel industries, its the worst, number 17 in terms of protection. If you look at the retail industry, if you look at the Banking Industry, various industries, out of 17 industries they put this in the category of an industry, the United States is last in terms of protecting, lets say hacking defense. Like we had a great hacking defense at the Republican National committee. Thats why we werent hacked. By the way, we were told they were trying to hack us but they werent able to hack. I think i get some credit because i told reince and he did a phenomenal job. I said i want a hacking defense. The Democratic Committee didnt do that. Wait, wait, wait. Let me finish. Within 90 days we will be coming up with a major report on hacking defense. How do we stop this new phenomena, fairly new phenomena, because the United States is hacked by everybody. That includes russia and china and everybody. Everybody. Okay. Go ahead. Go ahead. You said just now that you believe that russia indeed was responsible for the hacking of the dnc and the email, et cetera. You know what, it could have been others also. Why did you spend weeks undermining u. S. Intelligence community before simply getting the facts and then making a public statement. I think its pretty sad when Intelligence Reports get leaked out to the press. I think its pretty sad. First of all, its illegal. You know, these are these are classified and certified meetings and reports. Ill tell you what does happen. I have many meetings with intelligence. And every time i meet people are reading about it. Somebody is leaking it out. So theres maybe its my office. Maybe my office. Because i have a lot of people, a lot of great people. Maybe its them. And what i did is i said, i wont tell anybody. Im going to have the meeting. And i wont tell anybody about my meeting with intelligence. And what happened is i had my meeting. Nobody knew. Not even rona, my executive assistant for years. She didnt know. I didnt tell her. Nobody knew. The meeting was had. The meeting was over. They left. And immediately the word got out that i had a meeting. So i dont want that. I dont want that. Its very unfair to the country. Its very unfair to our country whats happened. That report should have never first of all, it shouldnt have been printed because its not worth the paper its written on. I thank the New York Times for saying that. I thank a lot of different people for saying that. But i will tell you that should never ever happen. Okay. Thank you, mr. President elect. Can you stand here today once and for all and say that no one connected to you or your campaign had any contact with russia leading up to or during the president ial campaign and, if you indeed do believe that russia was behind the hacking, what is your message to Vladimir Putin right now . He shouldnt be doing it. He wont be doing it. Russia will have much greater respect for our country when im leading it than when other people have led it. You will see that. Russia will respect our country more. He shouldnt have done it. I dont believe he will be doing it more now. We have to work something out. But its not just russia. Take look at whats happened. You dont report it the same way. 22 million accounts were hacked in this country by china. And thats because we have no defense. Thats because were run by people that dont know what theyre doing. Russia will have far greater respect for our country when im leading it. And i believe and i hope, maybe it wont happen, its possible, but i wont be given a little reset button like hill y hillary. Press this piece of plastic. The guy looked at her like, what are you doing . Theres no reset button. Were either going to get along or were not. I hope we get along. But if not, thats possible, too. But russia and other countries and other countries including china, which has taken total advantage of i economically, total advantage of us in the South China Sea by building their massive fortress, total. Russia, china, japan, mexico, all countries will respect us far more, far more than they do under past administrations. I want to thank everybody. So this is all just so you understand, these papers, because im not sure that was explained properly. These papers are all just a piece of the many, Many Companies that are being put into trust to be run by my two sons and i hope at the end of eight years ill come back and say, oh, you did a good job. Otherwise, if they do a bad job, ill say, youre fired. Goodbye, everybody. Goodbye. That was the president elect of the United States, donald trump, holding his first News Conference in 186 days. Mr. Trump was asked right off the bat about the report that russia may have compromising information on him, both personally and financially. Mr. Trump said that he saw and read the information independently of the intelligence briefing that he did receive on january the 6th. And im quoting now. He said its all fake news, its phony news, it didnt happen. He went on to call that report, quote, an absolute disgrace. Mr. Trump was also asked about the heart of that Intelligence Report that russia was involved in hacking of both the dnc and the rnc during the election and whether he was finally ready to acknowledge that. Mr. Trump said, i think it was russia. He said, if putin likes donald trump, thats an asset, not a liability. Did seem to be the very first time, in fact that mr. Trump had acknowledged that the russians and Vladimir Putin for that fact were likely involved in that situation. In fact, he addressed it at the very end of the News Conference that you were watching there as well. He did bring in attorney on stage to discuss the conflicts of interest question and went through several details as to how the Trump Organization, the Trump Corporation is going to deal with that issue. Hes going to hand over control to his sons don jr. And eric. Were going get into much more of that in the moments ahead as well. And in terms of the Market Reaction that you may have noticed during this News Conference, really before the News Conference itself actually started, during the opening statement, mr. Trump made a comment about the drug industry, saying, quote, the drug industry is getting away with murder. He was talking about the bidding process over drugs. The xbi, the biotech index, the ibb, these are the major etfs that track that space in the market. Plummeted almost immediately on that news. The Dow Jones Industrial average which looked as though it may be willing to make another run towards 20,000 reversed itself simultaneously and really stocks did fall into the red for just a period of time. You can see theyve recovered somewhat. The vix spiked to its highest level since january 4th. Although it, too, had come off that level as well. Ive got the gang in front of me. Of course weve got folks outside of trump tower making their way there and were going the get to that in just a minute. I do want to let you hear what mr. Trump did have to say about russia relations right off the bat. I tweeted out that i have no dealings with russia. I have no deals in russia. I have no deals that could happen in russia because weve stayed away. And i have no loans with russia. As a Real Estate Developer i have very, very little debt. I have assets and now people have found out how big the company is. I have very little debt, low debt. I have no loans with russia at all. In terms of the hacking again, towards the end of the News Conference mr. Trump saying of Vladimir Putin, he shouldnt have done it. I dont think hes going to be doing it that way any longer. We mentioned the Market Reactions specifically as it related to the drug pricing issue. He also made a comment about lockheed martin. We noticed that stock fall as a result as well. He had already taken on the issue regarding the f35 program and the cost of it. Lets listen now to what donald trump had to say about the drug industry again and comments that took place just before the actual question and answer session began. Our drug industry has been disastrous. Theyre leaving left and right. They supply our drugs but they dont make them here. Theyre getting away with murder. Pharma, pharma has a lot of lobbies, a lot of lobbyists and a lot of power. And theres very little bidding on drugs. Were the largest buyer of drugs in the world and yet we dont bid properly. Were going the start bidding and were going to save billions of dollars over a period of time. As i said, the Market Reaction was simultaneously. In fact the etfs dropped like a stone on that comment. I got the gang, steven wise, josh brown, brothers najarian, steve with ubs private wealth management. One of barns top 100 advisers. Steve, your reaction most specifically on what we saw the market do in relation to some of the comments today from the president elect. Well, specifically this is how its going to be. Theres going to be volatility. Anybody who is surprised about his comments relating to pharma shouldnt be. I mean, for the first time weve always heard the refrain that i wish government run more like a business. Weve heard about the 500 toilet seats, the 2,000 hammers, what weve got the same thing with the pharma industry, lockheed martin, go on and on. Now weve got a ceo running the government and hes going to be very, very conscious about costs. Starting with pharma. So he said it before, hessieing it again. Its going to happen. So all of those companies that have gotten fat, particularly pharma, with the huge lobby and also not negotiating as the largest purchaser of prescription drugs in the world, that game is over. So go there at your peril. Look at u. S. Based companies, p thats why the russell has done well, why it will continue to do well, and also companies that have been prejudiced by way too much regulation. That will come off. Josh, weve discussed almost daily as weve watched the market rise since election day the rewards of an expected trump agenda and the risk. Yeah. Clearly today you got a picture more of the risk. There was no talk about infrastructure. There was no talk about tax cuts as part of the agenda. There was no talk about repatriation. There was that comment about drug prices. And you did get a Market Reaction. Yes, it was so off the cuff and nondesscript. Thats whats going to continue to happen. This is just his manner of speaking. I think its obvious when you look at a one minute chart or less of something like, i bb, for example, its an algorithm programmed to place a sell order if the word pharma is mentioned in a president ial speech. There are thousands of ive seen them. There are thousands of Software Programs that are doing this and its fine. Human traders are not saying, oh, no, trump is worried about pharma and hitting the button that fast. Hey, it doesnt even matter who is hitting the button, whether its a man or machine. Let me tell you what matters. This is what i think matters, truthfully. This is the easiest game in the world to play. If youre a pharmacy ceo, if youre saithing at pfizer or amgen or bristolmyers, just go to trump tower, have a meeting, come down the golden elevator, were going to hire 3,000 people at our plant in michigan, whatever you have to say, and then you are one of the good guys. Then that takes the heat off. This is what youre seeing industry after industry, company after company doing. Theyre coming from over seas to do it. Its very, very smart. Its an easy game to play. I dont think theyre going to be huge ramifications in the stock market a month from now, three months from now because everyone is widesing up. Problem is, pete, you dont know when theres going to be a reaction because whether its a tweet or a comment, whether off the cuff or planned otherwise, it can certainly have an impact on the market or your favorite sector, whatever that may be. No doubt. I agree with josh on the idea that i do think itsal goff riches. The other comment that josh talked about is how long is that is that sustainable . I dont think that it will be, scott. I think these are things that and i think theyre going to obviously the pharmaceutical industry as well as the biotech industry, theyre going the have to sit down with President Trump when he becomes president. Theyre going to have to sit down with him just like we have seen with the Technology Group and besos who he had not seen a lot of favorable things about amazon. By him showing up at the table. If pharma can sit there and do what josh is talking about, can they create jobs, can they do things, can they show what the inknow eightive factors are and how much money and time is spent to get drugs on the market, thats going to be the challenge but they can obvious yly do tha the risk, doc, to the rally weve soon seeing in the march forward and the expectations that a Trump Administration certainly in its early days is going to continue to be good for the market because hes going to be able to push important things to investors through fairly quickly, gets derailed because of continued questions about his relationship with russia and this Intelligence Report and if it mushrooms into a greater investigation. Ill push back on that, judge. And ill agree more with steven than with josh and pete, how about that . I think stevens right as far as drug prices because you cant get a proper replace of the Health Care Obamacare law aca without addressing drug prices. Obviously many of us would like to see the litigations that are placed against these companies also addressed. I dont think thats going to happen. That was part of the law. Carving that out. Form what, it was part of the law. It will come out. I think that what youre going to see you look at where these have come since election day. 3 for the xlv, 5 for the ibb. Thats after all the ups an downs youve had. So he hasnt hurt those. Boeing made recoveries to petes point and so forth. People become numb to it, scott. Doesnt matter if its russia or im saying the same thing youre saying. Were on the same page. Only about the drug prices as far as i do think hes going to continue to attack that. Jon, jon, jon, respectfully, on the campaign trail he literally said the government spends 300 billion a year on pharmaceutical. The number is so far from even being close to that that its almost a joke. It doesnt matter. Hes just saying whatever pops into his head. I dont think you can really invest based on this. Were all missing the point here. You have a president that president elect that has the latitude to shake up the status quo. Hes also a deal maker. Hes setting the table for the agendas that he wants to cover. One of those agendas is hes pro fairness. Hes pro fairness on pricing and hes pro fairness on trade. So what is he doing . Hes laying the groundwork for those negotiations. The longterm benefits of that are going to be very positive. Its also hes laying the groundwork for jobs. Did anybody see the chart of the year yesterday . It was Small Business optimism. Yeah. He retweeted it six times. Part of the issue is that everybody is looking at him as a politician. Hes not a politician. I agree with that. Security briefings, security briefing every day. Ceos dont need a update to say, same as yesterday. They put competent people in charge of businesses. Each branch of the government and they report when things change. I think people are saying, look, this is the president elects way of making a deal. However, what were also learning is that the art of the deal under a President Donald Trump can be messy. It can be messy. Creates volatility that negotiations have to punch the other guy in the face and then you back off. Prepared remarks when he said there were some, pharma was not going to be a topic of discussion. No way. That came in off the cuff. Maybe somebody said something to him. Hey, what did i pay for whatever and he went there. But, however, but the most taking advantage of it. The most important question in terms of investing is algos. Theyre driving the entire market and passive investing. Thats either potentially the big con narry in the coal mine or the upside. And, judge, if youre worried, im not saying you are, but if you or any of the viewers are worried about what the tweets can do to the stocks and the trades, thats why im citing through the election, through today, 3 on the xlv. There were sectors that moved far better. Obviously financials and things like that. He didnt decimate the Health Care Sector me didnt decimate biotech. Its up 5 since the election. Pull up the chart, see it. Dont be afraid. People are taking advantage of the weakness to buy some of those stocks. Right. Just to joshs point. Thats what our job, our job is to say heres an exogeneus event that happened that had no bearing whatsoever, at the very least prospects of these companies. Earnings, revenue, et cetera. Sometimes it will. For the most part someone making off the cuff remark like steven mentioned. These pharma guys, you know what grinds my gears, the way theyre pricing. Its very bad, folks. Very bad. Now you own a stock reilike amg or bristolmyers. You guys continue to say that and i hear it from others, maybe people are too dismissive of the whole issue, that maybe the rhetoric does become reality. I believe its does in pharma. I think by association by saying that youre saying that trump immediately is going to win on this exactly where it is as opposed to the negotiation where its going to go back and forth. Im not the idea is to set the lunatic fringe of what it could be and then bring it back to an acceptable deal. No. And those companies have fallen in line ben fib shares of this. Not victims. What im saying is i dont have to invest in pharma. Ive got a much bigger market and pharma is rife with land mines. One tweet from hillary caused a oneyear collapse in the sector. Why do i want to play there when i legitimately believe that they overprice, that they are offshore, not paying their share of taxes, and if theres enough there, not just pablem, not just myths, but legitimate issues there. When it costs 90,000 a year her and another country is 10,000 a year, that and theyre not paying taxes here, that i understand there are indeed budget, there should be issues. Fair point but one thing worth keeping in mind, not quite a Counter Point but nuance, health care is 15 of the s p 500. If youre competitively managing money or trying to be somewhere near the market to be completely out of that space, thats a very big bet. If you get it wrong, and a lot of people got that wrong on energy and last january. Where do i need to be there for . Crude prices are dropping. Et cetera, et cetera. So there are legitimate reasons to avoid this space but if you do, you are going to be very far away from the market. Im an absolute return investor. Youre an investor with a benchmark. I dont have the bernnchmark. Im looking at what an absolute return profile is. Not a word today about regulation at all. Taking some of the regulations or easing some regulations in various sectors. Not a mention. Not a question about it either. That was my point at the outset. My point to you and ill push back from what you said earlier, was that if the administration is bogged down in any kind of formal investigation or hearing on capitol hill as it relates to mr. Trumps relationship in any way shape or form with russia, you dont think that that has the potential to delay the implementation of key parts of the agenda that the market has already traded forward on . First of all, you said if. And thats where i would take it from, scott. If. So if martians land tomorrow will that change the Space Program . Yes. I think its more likely that there could be an investigation or hearings than martians landing on planet earth. Really . Even though they followeded the trail of where this alleged stuff came from that buzzfeed and cnn that the president elect was talking about, even though they followed that trail, scott, and it was all made up . You think that theres something there . Like i say, i think the martians might land tomorrow, too. And if they do im just dealing you deal with sort of whatever reality you want to deal . Right. Im dealing with in the reality of the Intelligence Community has the information and they continue to look at it. We dont know what the outcome of any of that is going to be. True. But they never have linked him to it as far as he instructed mr. Putin. One of the most powerful men in the world to do this on his behalf. No one is saying that. Right. So then the the question wasnt answered in the press the press Conference Rally today was, did any member of the Campaign Team at any time have meetings with any officials from russia. I have no idea whether any of this stuff, but thats the question that people wanted answered and the reporters that attempted to ask it were dism s dismissed and there were a lot of things in the mix. Like mr. Cohen not being there. Heres the answer, at least my answer. Unfortunately the definitive answer. From my standpoint. The market unfortunately has gotten used to and the general populous, to these issues popping up. We saw it with hillary. Weve even seen it with obama. We saw it with the Justice Department meeting with clinton on the runway. The market just bounces back. In terms of delay of the programs, i think everybody has talked about i so much. Every program, us. The market has already traded. Absolute return on things that havent happened. What do you focus on in that environment . Fundamentals. Looking for opportunities. Whats happening today . The likely hood of gdp accelerating from 1 1 2 to 2 1 2 next year is high. Weve been through two years of zero profit growth. Were going to look at a year that is potentially going to have mid double digit Earnings Growth, thats an environment when you have optimism. Consumer confidence, ism all improving. Im i think the probabilities of a recession have declined. And the Downside Risks to this market are lower. So what are we looking to . Were looking for political shocks to potentially destabilize. And president ever served eight years not having gdp one succeed 3 in a year and getting through that under this presidency with economy growing and, by the way, the ten year which i dont understand, back below 240 which was and still is, according to gross, and also to gunlock, the biggest risk in the market going higher. What do we think i think by the way, gunlock said yesterday that some of these postelection gains are going to reverse themselves. If they get over 3 for the ten year that he says then the bond bull market is over. Gross 2. 6. Didnt he say that . I a respect where investors with gunlock. But didnt he say that a few years ago or a year ago when we popped above 3 . Maybe a year and a half ago . Everybody said the same thing. It came right back down. Heartbeat. Yeah. Dont ignore the enormity of the deflation their pary pressures still exist, not the least of x oh. Reagans administration, he had the same promises, the market bied up and came down. Down one point, 20 . And then it just rose into his second term. So everybody expects delay. Things dont happen overnight but its set up where you will see momentum. So i think the biggest enemy of the administration can be donald trump but, you know, slowly i think hes making the right moves and lit be a function of his people once they get in office. Are we going to through this entire segment without addressing the ive been out for three weeks. All great media stars with their duck dynasty the beard. Thats really great. Youve given us a perfect reason to go to Jackie Deangelis now for a market flash. Jackie . Good afternoon to you, scott. I just want to draw your attention to what were seeing in commodities after the trump presser. Crude oil hitting new session highs at 52. 52. Slightly off that level but a 3 , a little bit more than that, increase. And we were watching gold prices earlier this morning as well. They hit a sixweek high after the trump presser. They turned negative. Trading flat at this point. So as you watch what the equity moves are doing, the Commodity Markets are going to tell you something about how they felt about trumps remarks as well. Back to you. Thanks so much. With an update on whats happening in some parts of the commodities market. Lets go to john harwood live at trump tower. So, john, you were in the room presumably listening to mr. Trump in his first News Conference in some six months. What did you make of it . Well, it was fascinating. He moved a little bit but not very much. First of all, i want to add one thing to the discussion that you guys were just having a few minutes ago. After donald trump ended the News Conference abc correspondent who had asked him whether he or any of his associates had had contact with russian representatives during the campaign. He did answer that question, which he didnt in the News Conference and he said the answer was no. So we will see if the investigation that we understand is going on produces anything relevant to that. But he did ultimately answer that question. Mostly donald trump though continued to be reluctant to criticize Vladimir Putin. He said that if he is friendly with putin and gets along well with him, thats an asset, not a liability. He said that he was unaware of efforts by people like Lindsey Graham to toughen the sanctions that president obama has announced. The one thing we did get from donald trump from the first time was a specific acknowledgement that russia was behind the hack of the dnc and john podesta. Heres the president elect. As far as hacking, i think it was russia but i think we also get hacked by other countries and other people. And i can say that, you know, when when we lost 22 million names and Everything Else that was hacked recently, they didnt make a big deal out of that. Now, he did later on the same topic say, well, it may have been russia and other people. So he continues not to want to put the onus on russia, not to talk tough toward russia. He did say that Vladimir Putin shouldnt do it again. But he implied that Vladimir Putin would respect the United States more than they would have if Hillary Clinton were president or than when the current president barack obama has been in office. And he obviously denied the salacious material put out in that dossier, said he would have been much too careful for that, noted he was a germaphobe anyway and he had no deals in russia and russian s do not have lef rn raj over hip. One of the questions Going Forward is whether or not we get a Bipartisan Select Committee that ultimately would become a dominant theme of his first year in his presidency. Guys . John, om of the things investors were hoping to hear today, they simply didnt get. No tax policy conversation, no regulation conversation, no repatriation conversation, and as we were discussing on the desk just now, the risk in all of this is that the administration from its earliest days gets bogged down in the relationship with russia more so than trying to pass its agenda. Youre exactly right. That is precisely the risk. He did get one question about business tax reform, repatriation of profits. I believe that he didnt respond to any substantive way. I had my hand up most of the press conference. I was going to ask him about both obamacare and tax reform. So this is something that because of where we are, because of the unusual nature of this campaign, the unusual nature of what russia did and the nature of Donald Trumps victory, this is where we are. And there is a potential to have a very big obstacle to these elements of the republican agenda because of this distraction and investigation of this matter. One closing thing ill mention is that he continued to talk in very harsh ways about the Intelligence Community. Talked about them as leakers who disclosed information that he hadnt even told his own staff about meetings that he had had and he explained that in the tweet this morning that he sent, what, are we living in nazi, germany . He said he was talking about the dissemination of this kind of information. This is not a positive tone with which to begin conducting National Security policy with a vast intelligence apparatus thats now under his control or will be in nine days. John, thank you. John harwood outside trump tower for us. Welcome in mike mayo, banking analyst of cisa. They gotten a huge bump from the trump election. Mike, good to see you again. Thanks for having me. We were just talking to john. No talk about regulation. Theres been a lot of talk in the market for certain about easing some of the dodd frank relation regulation and what it means to the banks. Whats your take on this . Well, we see 50 upside for a bank stocks over the next three years. Were bulled up on banks. A lot of the reasons not to own banks are wrong. We can go down the list whether its credit, capital, cost, revenue, rates, regulation, engla england, italy, china, or the tenth reason not to own banks would be trump. The people say the banks have moved too far too fast. What we say is, first, the scorecard for president elect trump is very clear to me from watching the News Conference and the scorecard is gdp and jobs growth. If you want to have gdp and jobs droet, if you want to excel wait gdp growth from 2 to 3 and add jost jobs you need banks as your partner. That means not pull back all the regulations but stop piling them on, eliminate the red tape. And more importantly, the most important point, even if you dont get a trump bump to the banks, we think a trump bump can add 20 to bank earnings. Even without that, we still think that banks create value for the first time in a decade, that banks in the u. S. Earn their cost of capital and thats what the market collectively is missing and thats what we talk about in our new report, holding it up here back in black mean tag banks in back in black when it comes to creating value versus destroying value for the last decade. So footbainancials are up 17. If you go through the individual names the gains are stunning. Right . Jpmorgan is 27 . Lebron james of manking. Boa as you call it, boa is up 38 . Citi, 23. Goldman, 37. You get the point. You dont think the banks have gone too far too fast . Even as bullish as you are on the longer term. The bank index is at the same level as where it was 16 years ago. This is a structural breakout. If you just forget the statistic use just gave, how far the bank stocks have gone up, if you take a clean slate and you say the Banking Industry trades at, you know, 1. 3 times book value. Well, in periods in the past when they created value, when they earned their cost to capital the valuations were 25 to 33 higher. Theres room to go. So when these guys come on your show and they say were negative on banks for all those reasons but the thing is nobody is coming on anymore saying that theyre negative on the banks. Everybody is now positive on the banks. Youve had a slew of downgrades, statements in different papers only because theyre run. Not because theres something wrong with the underloying business or the market. Versus the upside. When banks move from value destruction to value create asian, this is only the second time in 25 years thats going to take place. When you cross that magic line and you go from the gutter to the promised land, bank stock valuations are much higher. Thats what the market is still collectively missing. That line disappoints. That was a good line. Going from headwinds to tail winds, its better volumes, better margins, more favorable Regulatory Environment and it consensus earnings expectation is far too low. So i think tactically we may be a little over bottom a little bit but the longterm trajectory in the financials is positive. I have a question for you. Is that your face or angus youngs face on that back in black thing . I tell you what mayos face. Unbelievable. I want one of those. What i find scary is that you recognize the legs. What mayo has said is buy in large in agreement whole heartedly on this desk. Yes. Whats happened with the financials is theyve hit this pause. All of a sudden seems to me the analysts community has gotten very nervous. Hey, lets take profits off the table when the reality is things are probably going to get better, not worse, for the banks from here. And the fact that heres a curious question for you. Bank of america is not a buy right now on terms of the names that are on there, right . No. This is again, we went on the show back in the spring. The banks were up 50 since then. As we said then and still true now, we recommend the six largest banks, the first time in two decades. So we recommend bank of america, citigroup, jpmorgan, morgan stanley, goldman sachs. We recommend all the big banks. Conservative with bank of america only because of this reason. Analysts forever have not gone off of valuation but book value. You talked about 1. 3 times book, its under booked value still. Why isnt there more upside with the bank of america with the reacceleration of give vend yields. They were hampered. They could not get the dividend up there fast enough. Maybe now they can and that will be more attractive for investors. We are bullish on bink america and bank america gets a biggest benefit from a trump bump because of higher rates. The only thing thats held us back as you know on our show is we still despise the governance from the board of bank america. We go to the annual meetings. Try to hold them more accountable. Theyre in the right place at the right time. Benefit from this voirmt and they have streamlined better than the average large bank. Ill give them some extra credit here. Lastly, before we let you run and we continue to move on, reiterate what you said. You see 50 upside from here in this sector from stock gain standpoint . Absolutely. 50 upside to bank stocks over the next three years due to a combination of rising return on equity and a reduction in the cost of capital. Great resiliency at the bank stocks. They havent gotten recognized for that. Theyre starting to get recognized but they still have a long way to go. Had mrs. Clinton won the election what would that number have been . We have incorporated zero from a trump bump. But what happens here is banks should earn their cost of capital. We thought they might earn it. You were at 50 no matter what . No, we thought there would be the banks would earn their cost to capital at 2018. A Trump Victory might accelerate that to as early as later this year. All right. Mike mayo, good to see you. Thanks for having me. With clsa, as you know. Well be right back. The News Conference by the president elect, donald trump, you can see what stocks are doing at this hour. The dow jones is up nearly 15 points. S p and nasdaq are negative. Want to add another voice to the conversation now. We are joined by mark husco, founder of morgan creek capital. Stacy asher is with us as well from portfolios with purpose, which well get into in a moment good to see you guys again. Mark, what do you make of the landscape as you see it, trying to put capital to work in this market. Were pretty cautious about the u. S. Valuations are high. We think theres a lot of untertuntert uncertainty where speech to speech but also intraspeech youre not sure what will happen. When you look at european financials, japan, emerging markets we get excited. The expectation is a pick up in gdp here, Earnings Growth will accelerate, maybe the multiple expands and maybe the market keeps going as a result of pro growth and pro investor policies. Im going to say thats already happened. Gdp every year for the last six years, the fed and everybody else says gdp will surprise to the upside. It never does. The challenge you have right now is the credit expansion ceased in the Fourth Quarter it had grown for 50 years at 7 plus and went to zero. That usually doesnt mean very well for a pick up in gdp. Talking about fiscal spending, that maybe will happen the end of 17, beginning of 18. I think theres a lot of hope built in. How would your portfolio then represent your point of view . Were underweight u. S. And within the u. S. We like healthcare a lot which got beat up. Biotech and healthcare look interesting to us. But then outside the u. S. , overweight japan, overweight european financials, overweight some countries we like russia, of all things. Cheap assets, maybe the sanctions get rolled back. So its it sounds like youre fairly contrarian to the whole trump trade sort of notion. He hits down financials and drug stocks, thats where you see opportunity. His agenda is pro market, you think the u. S. Has gone too far too fast. I agree with you 100 that our process is very value oriented. We like to buy whats on sale. Everyone is worried about a democratic sweep, prices in healthcare stocks got cremated. Then the president elect says something about drug pricing, they get beat up again. Given that the house and senate are republican controlled, unlikely youll pass those things. We think theres big opportunity there. When people get hope with no action, i like to fade that. Thats a fair point and fair strategy. You know better than me. But the market typically trades ahead of expectations. It does. Of actual reality. Thats what the trump bump post election was. It was anticipating what will the problem is things happen so much faster with High Frequency trading, algorithms. You saw some stocks in materials and mining go up 20 in two days. Did there did any more steel get played between november and today . No. Yes, but when you pull the time frame back and you say okay, such and such ran up 20 , it is a fast move. I agree. But then look at three years, five years, where theyve done nothing or have negative returns and contextualize. So depending on what time frame you want to focus on, theyve made a gargantuan move or done nothing. I completely agree. Thats why im sitting here now. The reason i won pwp this year, portfolios with purpose, we made a bet on commodities last year, when nobody wanted to talk about commodities. I bought companies that were on the verge of bankruptcy, those equities surged. Theyre up 200 off the bottom. Theyre still down 85 . Right. They could go up a lot if they, you know, improve prospects. Surely youre looking at the fundamental story. The fundamental story for freeport, copper has not been good. So i would argue stocks like that, you have been bailed out on. What was your fundamental you know, belief, when you got it . Only have to be less bad than expectations. Its a really important point. I agree with you, if it was down 50 , trying to make a fundamental case, cant do it. Down 80 , down 90 , down 95 the key is theres a great line about emerging markets. You make the most money when things go from truly awful to merely bad. Why did you buy that and not peabody coal . Peabody would have been to answer that question, the reason we didnt go with coal, we thought the fundamentals of coal were starting to turn, and that the one dominant play was tech resources. Probably should have bought that. That did better than the ones i did we didnt like some Coal Companies because of debt loads. The reason i bought freeport, they were going to get bailed out. They werent going to be forced into bankruptcy. One rule of deep value investing, when a Company Avoids bankruptcy, it stocks trades like an option. Great call. You mentioned pwp, the real reason youre here today, portfolios with purpose, its about investing and investing for good. Its a contest that brings together professionals and amateurs alike over a oneyear period. The portfolio that you chose, you mentioned some stocks in it was up 123 . You finished first. David einhorn finished second. His was up 122 . Stacy asher, shes been on before with us. Shes back. Congratulations on the continued success. Thank you. Tell us about it. Have you expanded it . How much money you are raising . We expanded a great deal. Portfolios with purpose hosts Stock Selection competitions where everybody plays on behalf of their favorite charity. So we have our classic competition that launches on january 23rd, our annual contest that were always here talking about and mark won this past year, which were excited about. This year we expanded a great deal. We brought in the campus competition, where we have 48 different universities participating. And were now moving into high schools as well. Over 1,000 students are playing in portfolios for purpose this year. You can go to portfolioswithpurpose. Org and sign up by the 22nd to play in the 2017 version. Mark, you have chosen your charity of meals on wheels of chapel hill. Yeah. North carolina . North carolina. I live in chapel hill. One of the impassioned about two things, one is education, the other is hunger. Hard for me to believe in a country where we spent 20 billion a year on weight loss that we have people going hungry every night. Great organization that delivers meals for people who cant prepare them themselves. In a year where theyre struggling to raise capital we can make a contribution. Anyone not doing portfolios with purpose who is in the business, needs to sign up right now. Rob, youre a board member. Jamie dimon, lee cooperman, einhorn, lazry, meister, walker, all in the master class. Great to see you. Congratulations. Thank you. Thank you for having us. Go over to the telestrator, the brothers najarian are over there for final thoughts. You have a final trade . Indeed. Sales force. Com, unusual opportunity. Theyre buying out in march. I bought it as well. Keep an eye on humana. Incredible option activity out there. We were talking about healthcare this entire show, it seems like. That name pulled back. Got under 200, but weve seen upside activity there. Josh brown . I actually agree with that. I want to mention jpmorgan. If you agree with what mike mayo had to say, which maybe i believe three quarters of it is realistic, the rest could be great if hes right, jp is the way do it. Week. Its very much overlooked company. We have about 20 seconds left what do you make of this, pg e, goldman, at t, blue chip stocks one after another being downgraded. Youre probably safe. Maybe it gets to a 4 yield and people come in and buy it. Great to see you guys. Thanks. Power starts now. Im brian sullivan, it is a big news day today. Market moving headlines out of Donald Trumps first News Conference since becoming president elect. He put big pharma on notice saying the industry is quetinge away with murder with regards to drug prices. The dow is off session highs. And trump hinting to more big jobs in the midwest. And taking some bigtime swipes at the media. We are the media. Power lunch starts right now