Closed down by about 2 . The losses were more severe by the hang seng. Down 2. 1 . The shanghai off by 0. 3 the nikkei down by 441 points. That will get your attention lets look at early trading in europe again, some declines there not as severe as we saw in asia, but the dax is off by 1 lesser losses for the cac and the ftse declines in italy and spain. Yesterday the tenyear yield was 2. 35 , this morning at 2. 34 . We are watching the price of bitcoin surging past 12,000 towards a new record high. The currency got a boost on friday when regulators announced it would allow the cme group and cboe to allow bitcoin future contracts. Theres a few economic reports on the wall street agenda the november adp employment report is out at 8 15 eastern followed by revised Third Quarter productivity and labor costs at 8 30. On the earnings front, brownforman, h r block, American Eagle outfitters are set to report before the opening bell broadcom and lululemon are out after the close. We mentioned this, they are following a developing story out of Southern California a Massive Wildfire continues to burn out of control. Its in the Santa Clarita area Officials Say the blaze is 5 contained at this point. More than 1,000 homes have been evacuated. Schools in the area have been closed already the fire destroyed at least 150 structures, scorched roughly 11,000 acres of land no injuries have been reported at this point. President trump is expected to announce today that the United States will recognize jerusalem as the capital of israel and will move the embassy there. The president informed arab leaders yesterday that he intends to move the embassy from tel Aviv Palestinian leaders along with the leaders of jordan, egypt and saudi arabia all warned the president that unilateral steps on jerusalem will derail the u. S. Led peace effort. All of the state department is on heightened alert in that region. New details on the house gop wish list for that reconciled tax reform bill. Ylan mui joins us with more. Good morning whats new now good morning. In the house, republican members of the Conference Committee are hashing out priorities kevin brady told reporters yesterday that hes looking at new compromises on the state and local Tax Deduction including possibly allowing the income and sales tax as well as property taxes to go towards that 10,000 limit. Brady sharpened his tone on the alternative minimum tax. He said the house feels strongly that it should be permanently repealed for individuals and corporations House Republicans are also unhappy about the first in first out provision in the senate bill that would limit investors flexibility to package stock sales. Kayla tausche has reported that about 40 republicans are sending a letter to Leadership Today urging them to axe this provision in conference. Its also worth remembering that the senate has not actually voted to go to conference yet. That move could come as soon as today. We still dont know which senators will be part of that final negotiation. So the danger here for republicans is that these discussions could get tangled up in the talks over the spending deal Senate Leadership promised to pass two spending bills in order to garner support from susan collins. We have not Seen Movement on that yet either. All right thanks i dont know markets kind of yesterday, we were waiting for the sell on the news getting close. I think people now think this is probably going to happen you wonder when does that stop you see the white house looking for an expedited version. December 22nd is longer than they want. They dont want to give lobbyists time to go through the details. It is interesting to see rotations within the markets on the surface, things look quiet. The rotation out of technology we saw debate in yesterdays session. It focuses around the amt. So certain small things will determine how sectors move its interesting that until recently we didnt realize that Technology Companies were the ones paying 20 . We knew industrials were paying 35, manufacturing were paying 35, in some cases 36 and 37. But the idea that Technology Companies in general who complained so loudly about not being able to bring money back from overseas didnt have a lot to complain about because they were paying 20 , 25 people were wondering what is going on, they will stand to benefit from repatriation, bringing back more money, so now they will be sacked with a bigger tax rate. Individual investors could sell the securities you choose not the first ones in, first ones out theres a poll, 29 like it 54 think its bad. They believe it benefits the rich massively its good to know were not rich right . Right i can tell you its not benefiting us. You will be less close to rich next year if it helps, know, if it helps the growth of the country, which eventually if you have three or four jobs to choose from, some have higher wages because the job market is tighter, the economy is growing, you know, we all say we want income inequality to sure. Maybe i want corker ecorker, if doesnt work, whats the reset button if someone calls them rich, really im supposed to be doing well here its not happening back to the markets all of this is affecting those markets. Joining us now is david joy. Lou breen also joining us. Gentlemen, well put this to you. Lou, what do you think the tax bill will mean for the markets and the economy. I think it has meant good things for the market. Weve been trading to the rhythm of the tax drama the market benefited from it. Can you get a sell on the fact thing . That happens a lot i think the tax legislation like a lot of other things are sort of the latest news thekom mr come lately of the news the tax legislation will pass away to another item that will be either friendly or negative to the market. I hope this is not going to be a sell on the rumor sort of situation. If we have already seen the good news from this, and its all downhill from here, that could be a concern, no over the short or the medium term, you could get a sell on the news the markets have sort of trended the last couple of years, but you can get a market where people bought in overweight for the anticipation of it and getting out now. I dont know that thats possible without calling a top in the market. David, i dont want to sound alarmist about these things, but two days in a row we have seen the markets reverse. Have big rallies in the morning, give those away. We are really talking about modest losses here the s p yesterday down 0. 2 . You were talking about the the s p down by a third of a percent, we have seen the longest losing streaks since august i know it sounds ridiculous. Is this a disturbing trend well, you do point out the fact that this has been one of the least volatile markets in history. Certainly this feels a bit unnerving. I think at least for now its still in the realm of profit taking you pointed out also about sector rotation. I think its evidence of a lot of profit taking in the tech sector and just repositioning into some of these laggard groups like financials and industrials the question for the market is what happens if and when technology stabilizes . Does it mean that all of these sectors can participate in the upside is it an either or market . Our view is that technology will eventually stabilize the outlook for tech, financials and industrials is pretty good we think the tax bill will add 0. 4 of gdp, raising our forecast from 2. 4 to 2. For the year there is still some good news to be seen as a result of the tax bill particularly in the earnings side so you would tell people if there is a pullback or stall, you would buy into the major averages one thing weve been recommending is that look at your exposures by the asset class by also by sector, make sure they rebalanced at year end. We had a big run up in equities worldwide, in technology in particular just pair those back to maybe where you want your risk exposure to be dont get out of the market. Why are you at 2. 4 for next year right now if were already we have a couple quarte erers above 3 3. 3 with the hurricanes. It have been 3. 9 why are you so smart you know next year is 22. 4. Why is growth slowing to 2. 4 next year . Were already seeing slow down in the u. S. In the last couple of months if you look at the purchasing managers indices, theyre expanding but at a decelerating pace we think growth will be good next year. Probably better overseas in places like the eurozone and japan. At least relative to their own potential. U. S. Will be fine. And our modeling tells us 2. 4 is the right number if we get tax reform, 2. 8. Thats a good year maybe the best overall single year on the calendar basis it still would be but a slowdown from the last six months whats causing the slowdown . Well, i think, you know, consumers will be okay i dont think youll see a big burst of Capital Spending like some have anticipated. A lot of this benefit on the corporate side will be redistributed to shareholders that will help the economy but not a direct one for one im curious if the trade in bitcoin tells us anything about the psych of the investor at this point in time weve seen a resurgence in retail stocks, money going into industrials, money into the beaten down sectors, money also going into the holly volatile bitcoin. Does this tell us investors are willing to take on more risk as markets are stalling overall i dont know how much you can read into the rally and bitcoin and associate it with other things i think the idea that the risk has been taken on by investors and in part they have taken on more risk in the stock market than they normally would have simply because the volatility has been so low. And thats created the assumption that theres also low risk so, without many alternatives, the market is looking for other things as well but the stock market has built up risk because of the low volatility not low volatility in the bitcoin. I think thats a trade i dont know how long that continues. I dont know if it turns into a viable currency or anything like that i dont know how much you can associate the one with the other. In terms of what you would be telling people to do now, lou what do you think . I would just sort of look for the risks in the market. I dont see anything wrong with the s p now. But i think that some things that have been the generator of the rally for the last couple of years in particular, the last eight years in general, they are things that such as low volatility that can ssh sshgsow seeds of risk. In 1998 the market fell 20 because people were lulled to sleep that low volatility meant low risk i heard somebody raise a concern yesterday that theres no new leadership, we keep shifting in terms of which group is leading, but all the groups have gotten tired. Theres no group that can necessarily step in and be the next leg of an up market what would you say to that i would disagree to some extent financials have further to run here with powell taking over at fed, its going to be a slightly lighter touch in terms of regulation i also think that the fed is going to raise rates next year as they intend we priced in three rate hikes next year. We think that will hech the Financial Sector and so i think thats leadership we could also see some leadershleader ship based on accelerating growth i dont think its anything like we witnessed in technology in 2017, but it could mean decent market leadership and maybe a broadening out of the sector leadership with more groups participating on the upside next year the one problem i have with all of this is that weve expanded multiples to such an extent i dont think were going to get any of that next year. Maybe a bit of compression on top of Earnings Growth that results in what we think to be high single digit type returns what did you think of the beginning of this year same thing. In the middle of the year so you had high Single Digits so why should we listen to you next year . Because most we have the direction right, and the clients position correctly to participate. Is that all you have to do every year and say did you see bob dalls notes markets been up, but it will keep going, but the possibility of a correction is getting greater. Thats what we get any way, all right anybody can say high Single Digits people have been saying that for the last ten years every year. Get out on a limb some day what if the market goes down say its going down or up 30 give me something thats not so pat, so lou at least says i dont have any idea. Im just trying to look for where risks are. We think the market is going up mid to high Single Digits we got it. Great. 2865 on the s p 500 2865 . All right that sounds more than high Single Digits coming up, bitcoin has been on a tear, one of the biggest criticisms is that its largely unregulated. We have an interview with an official from the cftc, the regulatory body that approved the listing of Bitcoin Futures when can you buy one december 10th or 18th. Okay. Lets watch that date. Well be right back. Ronoh really . Gs going on at schwab. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to Wealth Management. Witness katy perry. Witness katy perry become a legal witness. Witness katy perry and left shark. Or a card shark. Grandma . Witness katy perry work. Witness katy perry firework. Witness katy perry swish. Witness katy perry. Aaaaaaw look at that dog katy perry with music videos and behind the scenes footage, xfinity lets you witness all things me. The koucht countdown to christmas is on. U. P. S. Is experiencing service snags following what they call unprecedented shipping volumes the Company Confirming they have added one to two days to transit time and shifted other employees and resources to the markets most impacted by this huge crush. U. P. S. Expects to have resolved all these issues by midweek. It tells you a bit about the success of cybermonday massively popular. I know how often theyre coming to my door im realizing im having strangers come to my door eight times a day. Five boxes a day, easy. I see it. I have dogs. I know when theyre there. Loud. Yeah. I keep telling them, theyre allowed to be here theyre packages, theyre coming to us. It wont stop for the next two weeks. They dont care theyre on our property. You dont seem to understand they most love coming to your house. The poor mailman. He tries to sneak up and set it down, and they do my mail lem jumps up to get through the door. Thats a big dog. He is i would be a little scared. Bitcoin emerged in the aftermath of the financial crisis in 2008 the currency allows you to purchase goods and Services Without going through banks or traditional payment processes. The Chicago Mercantile Exchange announced plans to list bitcoin future futures and that helped propel the price of bitcoin to new heights. It gained more than 1,000 percent in the past 12 months. Joining us to discuss this is andy bush from the cftc. Great to see you nice to see you again terms of the notion that theres a regulateder now th re regulatl oversee bitcoin, will this provide legitimacy for bitcoin this is an exciting time with all the Technology Going on, whether its in agriculture with driverless tractors, in energy with shale, of course Battery Technology to financial technology, algorithms, etfs and that led to the development of a Virtual Currency world of which we are now involved with i think its really important for people to understand that the process by which a new contract gets created by the cme and other exchanges, theres two paths to go down a selfcertification process and a written approval process most of these guys come through with self certification. We look at things. Because bitcoin is so unusual, and the chairman said, our chairman said this is a unique animal unlike any commodity weve looked at before, we got involved with them earlier in the process. We modified or encouraged them to modify parts of the contract. The margin is much higher than what they originally will it be safer . We have limited time but does this make it safer . I think the thing is that what were trying to do is show people that the exchanges, theyre the ones looking at the underlying cash contract to make sure its not manipulated. Our role as a derivatives regulator is to make sure the futures contract is not manipulated. Well do that for sure well continue to work with the exchanges to make sure bitcoin is not manipulated in its use on the exchanges. I will tell you this, this is important for people to understand looking at bitcoin, the underlying cash market is not regulateded at this point. Its important for investors and everybody else looking at bitcoin and other currencies to keep that in mind when making a decision on what to do with it has this ever happened . Its interesting you invoked the words of your chairman saying this is a commodity unlike any modity weve se i commodity weve seen before. The definition of commodity means something common, out there, not unique. How does it work when you have the commodity itself in an unregulated market but you have the futures contract in a highly regulated market is there a disconnect there . Does that in itself present a risk bitcoin trades down 25 in one session, and the limit down on a contract is 20 . I think its a greenfield for sure we talk to anybody within the agencies, they say what are the Biggest Challenges price volatility theres other Financial Products that have simi