Make big money if this cvs deal closes well tell you how much. Trying to count it up coming up first as you know, President Trump made this major announcement on israel today which could destabilize the middle east this coming just a day after carlisles David Rubenstein told cnbc the only thing that the market needs to worry about is an unexpected geopolitical event. The only thing we have to worry about in 2018 or 2019 some unanticipated geopolitical event, the black swan. But right now short of those kind of things i think the economy is reasonably good shape and probably going to be spurred on by the taxbill. Lets get to cnbcs eamon javers for a recap of eat vents. The president decided today to recognize that the capital of israel is in jerusalem breaking with longstanding u. S. Policy the president cast this as simply acknowledging the reality on the ground in jerusalem and said that he was fulfilling a Campaign Promise heres what he said earlier today. Today i am delivering ive judged this course of action to be in the best interests of the United States of america and the pursuit of peace between israel and the palestinians this is a long overdue step to advance the Peace Process and to work towards a lasting agreement. Reporter and as you might expect were getting very mixed reaction from the region first from israeli Prime Minister Benjamin Netanyahu who says there will be no change what soever to the status quo with the holy sites. Israel will always ensure freedom of worship for you s, christians and muslims alike. President trump, thank you for todays historic decision to recognize jerusalem as israels capital. But palestinian president abbas with this statement saying, these are reprehensible actions constitute a deliberate undermining of all peace efforts and represent a declaration that the United States has withdrawn from playing the role it has played in the past decades in sponsoring the Peace Process the president today cast in his attempts to acknowledge the reality on the ground and move forward with the Peace Process but the reality white house officials acknowledge it will take a long time to move the u. S. Embassy from tel aviv to jerusalem finding a site, beginning construction, all of that will take time and could be the case, guys, that there willing a new u. S. Administration in place before that embassy is ever built and ready to be occupied, so well have to wait and see how long that process ends up taking. Back over to you thats true eamon, thank you. By the way there were analysts overnight saying this announcement, the rumors had sparked the movement to bonds. We saw sort of a global move there, bond yields did fall in the early hours and, again, as we mentioned the market is a little mixed even this afternoon. Emerging markets also sold off today. We have more on how these geopolitical worries are play nothing that. Were seeing a lot less risk tolerance in emerges markets weve seen a relatively larger drop from some of the country specific and Regional Exchange traded funds over the oneweek span among the biggest drops have come from some of the asian sen tick etfs including 3 in south korean funds like the ishares capitol hill fund has lost around 3 the ishares mscitaiwan cap, that ticker ewt down 4 and ishares msci china eff has lost 1 chip stocks specifically is a bigger part of that asian story along with generally more risk averse conditions, but if youre looking for where some of the most volatile country etfs are we asked todd rosenbluth, he tracks etfs over there and looked and found some of the most volatile price action has come from mexico and latinamerican focused etfs among them the ishares mexico etf, ticker eww and ishares msci brazil cap etf, that ticker ewz. Emerging market stocks have been the belle of the ball, at least one of them but whats happened is now getting lots more attention so well see that ishares msci emerging market etf, eem off by more than 5 since thanksgiving so bill kelly, a lot of focus to see if that trend stays in place, despite the drop weve seen over the past week and a half, guys monster year. Dom, thank you. So the markets meantime, just continue to churn and for the most part higher albeit at a moderate pace and dow has seen 64 record closes so far this year. Which is amazing. Well see if we get another one today. Hit number 65. The s p has seen seven so far. 57. Oh, 57. Pardon me. Im just a second thats better. Famed Hedge Fund Manager howard mar mar mar martz. Heres what he had to say. The s p quadrupled off the bottom most assets are selling at the highest prices and highest valuation metrics and lowest prospective returns they ever have so it makes sense to me that one would want less risk today than three years ago or six years ago or nine years ago. Has the easy money been made . Joining our Closing Bell Exchange we have sylvia and steve grasso and Rick Santelli joins us from chicago. Welcome, all steve, what do you think is howard marks right and how does that jive with the market background backdrop. Funny you ask that because i thought about it when i heard that interview i dont know its always in hindsight that the easy money has been made. I was on this floor when trading at 666 in the s p cash and there was nothing easy about that. There was nothing riskproof about that no one wanted to buy the market at 666 pretty much no one wanted to buy the market at 1000 or 1500 or 2000 and guys are down in the market now always easy to say in hindsight, nothing against mr. Marks but always easy to look back and say that was the easy money. Were still haggling and trading over whether its good to buy the market at these multiples. So i do believe you should be net long in the market and obviously we can get pullbacks all d. C. Related right now but i dont think the easy money is ever really easy it is in hindsight. Youre right sylvia, looking at the list of stocks you like. More appropriately the sectors that you like. Theres a lot of them here so do you agree with howard or not that the easy money has been made what do you make of this yeah, i would express the same sentiment not sure if all of the easy money has been made and seen a couple of days and downturns and sectors like tech and some rotation into other sectors but, you know, looking overall we see good flows coming in from the news on tax regulation and thats coming into areas like transportation, it continues to come into tech off of some of the dips we see some flow into those sectors, you know, retail still been a strong story for the short term and also emerging market, i mean weve had pullback there with ten cent china properformance there but a lot of the countries are still the second and third biggest economies in the world and investors are looking for shortterm opportunities into year end and tax cuts and, you know, favorable regulation could play into that okay, rick, what do you think has been the driver of this lower move again in bond yields and today the dollar hanging on to about a quarterpoint gain. I like where it closed. A little bit above a nice level. 93 1 2 but only because thats been the most recent ceiling prior to that 94 was a ceiling then when we traded through that everybody expected a big up move so, yeah, the dollar is okay many are disappointed by its performance all year as far as interest rate, look no further than europe and this notion of the story about making jerusalem the capital of israel, i find it fascinating. We never know why markets move because we dont get a chance to talk to every Single Person involved but seem a little ironic to me that story would have oil down and energy down as much as it had today and yet people would think it would affect the fixed income markets. I think europe has a couple of things going on, first of all mario draghi will slash how much qe he will do in 2018. He will be buying more than theyre issuing in many sectors, thats why hes continuing to do things like corporate securities but i think that theres also a front running move that many traders have been rewarded heavily by doing things in front of the central bank like all the negative securities. Who would buy those . Only somebody confident that the government or others would continue subsidizing them hence the price would move up so i think theres a lot going on but the point of what im saying we had the lowest yield close in tenyear boons since june 26th and to me we talked about this 24 hours ago, our guest said he thinks rates are going up and i said the problem with that is if rates in europe are going down no way well break away from that and still believe that. I thought of your comment on that when i saw that low yield on the tenyear before we go, steve, what do you think of David Rubensteins comment about the geopolitics being the black swan that could end this bull rally, for the most part since it began in 2009 it has been immune to geopolitics with a few notable exceptions do you agree with him or not. So, its always that case and to that point, whenever you see a selloff based on eopolitics it becomes even more shallow and shorter in duration. So its a fools error into wonder whats the next one coming down the pike we all look towards north korea. Its never the one that youre thinking its going to be. Were all caught looking down the wrong alley. This one, could it be, yes, but i would still buy that opportunity versus sell it. All right thank you all. Sylvia, steve, rick, good to see you. Appreciate your time thank you. We have about 49 minutes left in the trading session and see whether we get positive close or not. Dow is up 13 point, the s p up about 4 and coming up next marketwatchers have been laser focused on, of course, tax reform but another battle on capitol hill is brewing and it could have major implications for stocks well explain coming up. Later, go big or go home thats the question were raising in todays debate where well pit a large cap bull against a Small Company one. Find out which group stands to see the most upside with the rest of the year just those couple of weeks we have to go still. And we want to hear from you contact the show on twitter, facebook or send an email share your thoughts with us. We aaylilws ke to hear what youre thinking. Watching cnbc, first in Business Market slightly higher except for the russell as you see. The dow up just 5 points its been a rather tepid day compared to what weve seen lately things are settling down quite a bit. Some of the movers in todays session so far shares of aerovironment reported results late yesterday and said it was largely driven by robust Global Customer demand hitting an intraday alltime high and is having its best day ever dating back to 2007 when it came public in as you see, 26 . Alcoholic Beverage Company brownforman seeing an uptick in its jack daniels brand and raised fiscal guidance for 2018. That stock is up almost 6 negotiations under way in washington to reach a deal to continue funding the federal government or face a shutdown perhaps as soon as friday. Kay Kayla Tausche has the latest. Reporter a stopgap that would otherwise expire friday. President trump is set to meet here at the white house tomorrow with top congressional leaders but in the meantime, republicans have yet to reach an agreement over their strategy. They all want to buy time to finish tax reform but they disagree on how to approach the next deadline, december 22nd in order to avoid a shutdown right before christmas gop leaders have been meeting with the House Freedom caucus on that they wanted to extend funding through january. Then through december 30th and now under discussion is either caps on nondefense spending or longer term authorization for defense spending in that period of time. In the meantime, President Trump discussed the risk of a shutdown today at a Cabinet Meeting and he said if that happens, it would be the fault of the democrats. The democrats maybe will want to shut down the country because they want people flow nothing our country and i want people coming into our country but i want to vet those people and i want to vet them very squacaref. We dont want to have radical islamic terrorism. Reporter nancy pelosi said President Trump is the only person talking about a Government Shutdown. Democrats are hopeful. A statement listed a handful of priorities the democrats have and pelosi said she didnt want to shut down the government over a proposal to make permanent the protections for d. R. E. A. M. Ers or children of undocumented immigrants well see what gets hashed out at the white house tomorrow and what republicans decide the Freedom Caucus meets tonight and a meeting today was said to be productive well see. Back sdmrou essentially whats going on are old grudge, if you will, are resurfacing whether its immigration or parts of the Health Care Bill they want to repeal all being resurfaced at this point in the name of trying to avert a shutdown, is that the idea reporter a little bit, so the issue with the Freedom Caucus is they really want fiscal discipline. They worry that the pressure will build so much if you get to december 22nd, three days before christmas, that they will essentially lose leverage to put some of those disciplinary measures in place or to challenge democrats on some of the nonDiscretionary Spending or Discretionary Spending rather that they are trying to put in place so its a back and forth over who is spending what money and, of course, the backdrop of this is theyre going to be reforms early next year to try to make up some of this money that is getting spent on tax reform and trying to get a little bit of a head start on that process here. Is that, kayla, money theyre trying to make up why theyre doing welfare reform. Reporter yes, exactly. Yeah. I dont know i question thats going to be going into the midterms and theyll start messing with social security, medicare reporter the president said it was something he would not touch so expect those to be dragged back into the public forum. What is the scuttlebutt will they shut down saturday or not . Reporter pretty much everyone agree, bill, that a shutdown would not happen this week, if there were a shutdown scenario, the risk is mounting that it would happen on that december 22nd deadline i was talking to senior republican aides and said there is a broad agreement on what the package would look like. For any longer term spending deal which they would be discussing later in the month they do need democratic votes. Thank you as always, kayla. See you later. Sure. Thinking about december 22nd. Wherever kayla needs to be on december 25 and everybody else, its going to be tricky if that does happen. Well see. We have 40 minutes to go today and looking at the dow up 4. The s p up 2 the nasdaq having aly bit of a rebound up 20 point, the third of 1 and russell is still weak. It is down nearly half a percent today. 6 1 2 drop 6 1 2point decline. Still ahead the recordbreaking sales around the thanksgiving holiday are good news for online retailers but millions of additional packages are creating another major headache for u. P. S well tell you whether you should expect shipping delays for your Holiday Gifts and what means for u. P. S. Shares. Senator Tammy Baldwin is taking a stand against activists investing investors and hedge funds. Well hear why shes demanding answers from two s. E. C. Nominees about their positions on activism before she votes for their confirmation coming up in their confirmation coming up in a moment driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment managemen. Welcome back dental supplies stock dropping some of the worst performers in the s p 500 and on a potential new threat from, yes, amazon Morgan Stanley says it has new evidence theyre buying supplies directly from an oral goods manufacturer and could deliver them directly to dentist and other physicians, henry schein down 5 , patterson down 4 henry schein was the worst performer in the s p. Tammy baldwin has been a critic of wall streets poe fuss on shortterm gains now demanding answers from two s. E. C. Nominees about their views on activism before she moves on confirmation. Leslie picker has more. Reporter two han in the balance as one senator is demanding answer, senator Tammy Baldwin wrote letters to Robert Jackson and hester pierce with questions about executive compensation without those the senator said she will not agree to a unanimous consent to hold a vote on their confirmation and wrote in the letters that the s. E. C. Has presided over this financialization of our economy which has facilitated the looting of the American Corporation by shortterm shareholders and adds wall streets aggressive pursuit of shortterm profits at the expense of longterm growth and jobs demands a response. These letters come on the heels of a bill that she reintroduced called the brokaw act that seeks to rein in the powers of those investors. We went to brokaw, wisconsin, the name of sake and found a shuttered paper mill and they pinned the blame on hedge funds. An ktiactivist it was closed eliminating 450 jobs in senator baldwins jobs she said the s. E. C. Could make some of the changes that brokaw act is looking to accomplish without congressional approval guys. Stay right there. Joining us now is senator baldwin for more on this and an ecumenical interview and, senator, thank you for joining us. Thank you for joining us. Thank you we mentioned that youre willing to hold up the some of the nominees over this issue. What result are you specifically looking for before youre willing to let those go forward . Well, first of all just answers to the many questions i put forth in my letter but the bottom line is that the s. E. C. Has Statutory Authority to do a number of the things that im calling for with regard to reining in activist hedge funds as well as looking more closely at whats happened with stock buybacks and, in fact, the s. E. C. Plays a central role in why were seeing the proliferation of stock buybacks that were seeing. If i can just get into a little more detail at this moment on that, in 1981, corporations in america spent about 3. 7 billion on stock buybacks. In 82 the s. E. C. Opened a safe harbor and a few years later by 84 it had expanded 900fold to 36 billion today if you look at the s p 500 companies alone, just them for the past five years, were talking 2. 5 trillion. This is something that ought to be looked at very closely. I think it has major impacts on our economy and the s. E. C. Heretofore has ignored my call, ignored my calls through letter, ignored legislation that weve talked about in the senate of the United States and i think of our two new nominees, we need some answers would you want to limit buybacks is that what youre getting at the feeling on wall street has been that corporations are unwilling to build factories or create more jobs because of the instability, the uncertain outlook for the economy at this point. They would do that if they had a better certain future that they felt otherwise, they have nothing else to do with this cash than to just return it to shareholders in the form of buybacks or dividends but would you want to limit their ability to do that is that where were going . Well, what ive seen over the course of the time that the s. E. C. Has given them safe harbor is a proliferation of these buybacks and what it has meant in especially manufacturing which is a big sector in the state of wisconsin is rather than investing in their workers, whether through raises or training to deal with advanced manufacturing, whether you know theyre not investing in equipment to upgrade old factories to keep them competitive on a global scale. Weve seen all of this change as theyve invested more and more in stock buybacks and dividend payouts and, frankly, the other issue i raised with regard to activist hedge unders its often at the urging of the act visits, i dont want to segue into too many topics but the tax measure debated on capitol hill right now, when we talk about repatriation of dollars from overseas, many Corporate Executives said well be pressured to spend that on stock buybacks and yet out of this tax bill weve been promised jobs and higher wages and Economic Growth not if theyre invested in stock buybacks so this is in my mind this question has reached a critical proportion that impacts, you know, the distribution of wealth and weather hard work with debt people ahead again and the s. E. C. Has some basic responsibilities, especially since they opened the door with the Safe Harbor Provision in 1982. Senator baldwin, if the two nominees do respond to the questions you laid out in your letters and you dont like the responses that they have given you, what happens to the progress toward their confirmation will you continue to place a hold essentially on that confirmation progress . Well, so heres the bottom line in the senate i would without responses and i havent gotten them yet so looking forward to seeing them and i have no preconceived notions about what i will see from these two nominees, but i can object to a unanimous consent request to move their nominations through. But Mitch Mcconnell has the authority to schedule this for a vote it only requires a simple majority these days and thats up to him. But i hope that he and all my colleagues in the United States senate agree that these are issues worthy of greater understanding, especially when the s. E. C. Commissioners have authority to deal with some of these Critical Issues on their own. Yeah. Senator, let me ask you while youre here because i know you are among the people calling for your colleague senator frankens resignation today. What happens if he doesnt give it tomorrow in this announcement that is now scheduled . Well, youre right. I was among the u. S. Senators who called for al frankens resignation which aheavy heart i view him as a friend, a colleague who worked hard on behalf of his constituents but doesnt matter when youre a democrat or a republican, what area you work, we need to have standards and, you know, senator franken has a decision to make i hope he will decide to step aside. And my most at the doesnt focus moving forward as a woman and as a United States senator is to fight to make every workplace safe whether that be in the halls of the senate or in a factory in wisconsin, i want to make sure that women feel safe and are safe in the workplace. Yeah. Im sorry this will sound cynical but if he doesnt retire or resign, do the democrats lose any leverage they might have in calling for the roy moore issue to be brought up in an ethics i dont think so. This is going through the Ethics Committee right now. Senator, finally before you go, we were just talking about a shutdown that may be looming where do you stand on this issue . The president has mentioned a couple of times now that it is a possibility sounds like maybe they could agree to a twoweek extension, how important is it that the government stays open and running . You know, obviously we want to Work Together to make sure that that happens. And the deadline as you say is looming on friday, a very quick turnaround i think i am open to shortterm a very shortterm extension so we can resolve the yearend spending issues. I was disappointed that trump sort of made it harder last week when the leaders were scheduled to meet on a bipartisan basis but i do think we can work our way through this with the spending caps and an omnibus much work has already been done in the house and National Appropriations committee so im hopeful if there is a shortterm extension we can get the job done well before the end of the year senator Tammy Baldwin, thank you for your time. Thank you. Appreciate it very much leslie picker, thank you. See you later time now for a cnbc newsup date and flip over to sue herera. New york senator Kristen Gillibrand calling on democratic senator al franken to ree resign hes been accused of sexual misconduct. I do not feel he should continue to serve. Everyone will make their own judgment i hope they do make their own judgment five major fires are now burning near los angeles the latest a blaze up the Santa Monica Mountains that forced the northbound side of the freeway to shut down many schools in that area are closed Hedge Fund Manager Paul Tudor Jones defending the support he gave to harvey weinstein. In an maim he said weinsteins action were terribly wrong and told him that. This after the New York Times highlighted an email of jones to weinstein telling him the firestorm would blow over. Jones is a former board member of the Weinstein Company thats the news update, kelly, bill, ill send it back downtown to you. See you next hour thank you. Sue herera. How about United Health striking a deal to buy da vida medical group this an all transaction today . It makes them one of thele best and operates nearly 300 clinics and half a dozen Outpatient Surgical Centers in six states so it will become part of United Healths ontum division. Da Data Analytics and it smells like a reaction to cvs, aetna. This transformation going on right now in the medical Care Industry and i think this is the free market at work trying to find ways to bring health costs down. The interesting thing about it, theyre all circumventing doctors. Yes. Theyre involved to some extent but it feels like i think even somewhat blatant in the cvs aetna deal Health Insurance companies have long said they could do a better job than the doctors and now theyll try to prove it. The other story, the United Health deal coming on the heels of another possible merger in the Health Care Space between cvs and aetna, aetnas chief executive Mark Bertolini is set to pocket half a billion with a b if it does merge with cvs the wall street journal reporting most of his payout is tied to stock or rights that he already held that jumped in value with this deal being talked about. More than 230 million is expected to come from already vested Stock Appreciation Rights that he holes for aetna shares, additionally common aetna stock he owns would be valued at roughly 190 million at the deal price. And around 60 to 85 million is tied to his change in control package. Which on the high end the 85 million figure would make it one of the top five control payouts of all time but, listen, any time somebodys payout amounts to something with something that begins with a b in this case half a b. If implies significant possibility it doesnt get done. But this is stuff thats been earned over the years and years. Oh, yes. I mean were not talking about he truck a deal whereby if he was able to sell aetna to cvs he makes this amount. No, aetna has delivered great value for shareholders. Still ahead shares of u. P. S. Falling after the company said massive online orders this Holiday Season will lead to shipping delays. How u. P. S. Is shifting strategy to keep up with all that demand. We have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh and i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. Why did you take Credit Card Debt on . Second kid. Private school. Medical bills. Moving costs. Solid ground. A personal loan from sofi is a smart way to consolidate Credit Card Debt. Certain borrowers cut their credit card Interest Rates 42 and increased Credit Scores 17 points on average. Borrow up to 100,000 with low rates and no hidden fees. Find your rate in just two minutes, and take on your debt at sofi. Com. Welcome back with some breaking news on disney. Lets get to julia borisen julia. Kelly, of course, weve been reporting on talks between disney and fox now a source close to the situation tells me if the deal does go through, and disney does, indeed buy foxs entertainment assets bob iger would likely extend his contract by two or three years. Now, of course, the deal is not a done deal and neither is this but this would be a likely outcome as iger would likely be asked to stick around to integrate those assets into disney his contract is set to expire july of 2019 and he is said to be a consultant to disney for three years after that by but we would imagine there to be talks about having iger stick around for another two or three years beyond july 2019 no comment from disney on this but thats what were hearing from a source close to the situation. A couple of things it brings up, sorry, james, the second is, no 2020 run for bob and, yeah. This changes look, theres a lot going on here these talks are still very much happening between disney and fox, a lot being discussed including whether or not there is a role for James Murdoch at disney, theres been a lot of speculation that he could oversee those fox assets especially the International Assets such as sky and star which he is so familiar with bob iger talked about how he loves his job and how he will actually retire in 2019 when his contract expires so well see i mean he has so many projects that are under way right now including the big digital push with the espn app coming out this year and then the disney the espn app coming out in 2018 and first half in 2018 and disney app the year after that you can see how if this deal goes through, really would change igers legacy and how he could be compelled to extend his contract once again. No official comment. He started in he started in 04, julia. I believe that it was 11 years when they Just Announced that he extended his contract the last time in 2017. So hes been hes been there for quite some time. So hes been ceo since 2005, since 2005 longer than most ceos of disney but certainly accomplished a lot in his tenure. 15 years and counting at that rate. Thanks, julia see you later. Meanwhile, in washington we have a news alert on the Senate Tax Bill we details what do you have for us. The senate voted to go to conference with the house on the republican tax bill. This move was approved 51 47 and it normally starts the negotiation process that theyll use to produce a final version of the bill. Of course, the unofficial process has been going on for some days now, republicans are already working out their differences on issues like the state and local tax deduction, how theyre going to treat passthrough businesses, also the alternative minimum tax both for corporations and for individuals and it looks like republicans are on track to get this to the president s desk by christmas, of course, President Trump has tried to move forward that deadline to be a little sooner, but for now, both the house and now the senate ready to go to conference on the tax bill back over to you guys. All right the details are everything in this one thank you. Consumer reports, folks at apple may not feel so much about reading the review of their latest product we will have that review and the reviewer coming up and at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. And at 4. 95, you can trade with a clear advantage. 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The hits keep coming, a market flash on citigroup and brian sully vast details sully. Kind of unexpected headlines coming out of Goldman Sachs financials conference moving shares of citigroup. The ceo making comments they expect flattish market revenue and in fact there is a lot of concern about the fixed income trading. You can call it ficc but the citigroups cfo making concerning comments about that saying they expect a flattish revenue on their branded corporate cards and a high teens percentage drop in markets revenue sending citigroup stock down more than 1 , guys and its not just impacting citigroup those comments from citigroups cfo also impacting Goldman Sachs and jpmorgan you can see in the last 15 minutes before they began to cross we have seen a drop and causes Goldman Sachs second quarter, 40 drop in their fixed income currency and Commodity Trading group. A lot of people saying lack of volatility the way rates have changed is going to impact other banks. Whoever said that they were right because citigroup is aing that will be the case sending it down more than 1 . More coming up on cnbc on that kelly. The disappointment is that its so persistent it wasnt just a onetime thing. Jpmorgan said theyre down 15 in trading maybe it was bofa who said the same thing if c citi is saying high teens, how bad is it. The dow can moving lower on this by the way. 12 points. The s p hanging on to a small gain we also have a news alert on the nfl to get to right now. Eric, what is happening there . So thats right weve been talking about nfl commissioner Roger Goodell for many months now and the controversy about whether he should get a new contract. He actually does have a new contract now its just been reported by nbc sports he signed a contract the other side of that was arthur blank who runs the nfls Compensation Committee on behalf of all the leagues owners so that is a done deal. No word yet on the amount of years or the amount of money or if Dallas Cowboys owner jerry jones will find a legal way to undo the contract. Its a lot harder to did now that its signed than it would have been had it not been signed ahead of the owners app meeting next week in dallas. Commissioner goodell has a new contract signed an extension starting next year. Reportedly it could be 50 million, right thats what he was asking he was asking for five years 50 million and a lot thought it would come in at 40 million so at 200 million total deal it will probably be around there because thats how much he was making the last few years. Thats the round number to look for there. All right the commissioner getting a new deal with everything going on in the nfl right now. Exactly. Thank you, eric about ten minutes to g as we mentioned the dow is now tipped lower again. Were down 24 points for the blue chips the s p is now lower again the russell has been consistently weak and the nasdaq hanging on to a small gain. Shows you how important the financials have become this rally lately pair of big earnings on tap after the bell tonight instt alisananys from lululemon and broadcom coming up potpourri nd models on my yacht made of cuban mahogany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested a yes. Do you know how to network like a champ . And when is a good time to have some fun in the office im j. J ramberg and i have questions which might help you ru n a bettericking ] [ keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Check out the your business page for an ecumenical online video series to help you work smart, grow fast and go further thats right. So u. P. S. Experiencing service snags as an already bigger than expected surge of packages floods its Network Thanks to those, quote, unprecedented shipping volumes u. P. S. Confirming it added one to two days of time in transit for some deliveries it shifted more employee, other resources to the busiest markets and it is an issue that it expects tohav resolved by today or by tomorrow nonetheless shares of u. P. S. Trading lower today. Down about 1 1 2 , worst performer in the transports. 18 days until christmas. Its still very early in terms of peak shipping season, but the issues do speak to the high stakes of this peak season when delivery giants u. P. S. And fedex handle staggering record volumes under tight deadlines so Third Party Service trackers reporting that u. P. S. Ontime delivery performance for the cyber monday week that just ended 89 for express, 84 for deferred fedex according to ship matrix did better, 99 for express an 98 for deferred Neither Company commenting on that data but fedex does say its proud of its service so far and well positioned to meet anticipated record demand. But, guys, again, still early in earnings both have literally spent the entire year investing billions to prepare for this month bringing in workers more planes, more sorting space, even more surcharges on just to be able to handle this massive record rush of packages. So well continue to keep an eye on it. Back over to you. I was just going to say those surcharges at the u. P. S. Announced that were going for that period there with cyber monday didnt stop anybody from still buying and using u. P. S. , clearly. Clearly and you could say weve already seen some of these other early readings that perhaps the Holiday Shopping season has been better than expected and off to a strong start this could be another indicator thank you, morgan see you later. E cle. Wn 28 points as we head to thos well have the closing countdown for new just a moment. Some moments can change everything. You cant always predict them, but you can game plan for them. For 150 years, generations of families have chosen pacific life for retirement and Life Insurance solutions to help them reach their goals. Being ready for wherever life leads. Thats the power of pacific. Ask a Financial Advisor about pacific life. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Announcer closing bell is sponsored by etrade. The original place to invest online 90 seconds to the close, Bertha Coombs on the floor of the new york stock exchange. I have a fourday chart of the dow. We can relive some of the volatility weve seen but now things have settled down here a little bit. Seems like people take a breather waiting to see what is going to happen with this tax bill. The details are going to be very, very critical particularly to different sectors interesting today we saw oil, big decline, big drawdown, however, we are also producing record amounts of oil and thats not a good thing when prices continue to be pressured my favorite story of the day, of course, i cover health, the da vita purchase by United Health United Health continues to roll out the winners. Warren buffett, Berkshire Hathaway has a 20 stake in davita for about a quarter of a million dollars. Why didnt he just buy the company, why a 20 stake good for warren. He made 13 today. The other story, a couple of the big gainers and losers, retailers, vera bradley, big gainer feel like the turnaround is in place but freds is suffering and it was the big loser in the s p 500. Down 18 . Drugstores, its going to be a tough call indeed that cvs and ate aetna merger comes through. 30 points on the dow. Stay tuned earnings from lululemon and broadcom see you later, kell. Thank you, bilal welcome to closing bell, everybody. Im kelly ef, a busy afternoon here lets start with how were finishing the day on wall street with the dow strdropping 36 pois but fluctuating between positive and negative territory for much of the afternoon much of the day frankly, s p 500 going out with a small decline a little less than a point russell 2000, the big decliner, dropping half a percent today. Theyve retraced back to 1508 from the 1544 closing high we had at the very end of november. The nasdaq composite bucking the trend again. This time in a positive way. Its up 0. 2 to close at 6776 thats 100 points off its record closing high from the end of november well have more on whats been going on with these markets and have two earnings reports out, Courtney Reagan standing by to cover lululemons results and josh lipton will bring us numbers from broadcom. Of course, broadcom dealing with its bid from qualcomm. A lot of news that company is making joining me we have michael santoli, nancy tangler at hartland financial and sandy vil villery. Welcome to everybody glad you could be here the biggest winner was microsoft, the bigger loser marmar merck. Newfield down 7 in d. C. Congress racing against the clock to approve a shortterm budget before friday at midnight as it looks to avoid a looming Government Shutdown. Michael, all of this throw it in the mix and theres more we could add too. What do you think is going on . The market just really just kind of Holding Steady i think you have kind of a threeday spurt in jumpiness especially by the standards of this year when it comes to the dow swinging hundreds of points a day. Today you had a little more of that kind of tentative recovery in those Growth Stocks beaten down i dont really see a lot of, you know, a lot of concern on wall street about a potential shutdown but its one of those things that hangs out there and were now in the habit of looking to d. C. For the immediate catalyst so i do think its going to remain hesitant for awhile. Man si its been the tax plan the tax plan and it does sound like theyre able to move forward and kind of get this thing to conference and details matter a lot in terms of the impact the bill will have so what are you focused on here as you watch it down 38. I mean this doesnt bother me at all a lot is tax selling so people are trying to anticipate future tax reform or tax cuts should i sell this year or next year thats not of concern to us but use it as an opportunity to pick away at the companies we like. Still Like Technology. Yes, still Like Technology and here although i know its gotten a bad rap. Only down 1. 5 since the end of october and one and change since the end of november so were picking away at the cheaper names things like cisco, harris, we still like Texas Instruments and we still own google, facebook and apple in big ways but weve been trimming those as well as microsoft. So youre not afraid as some have posited, look, this is the beginning of a whole change in leadership for all of next year. You know, its growthy for the whole economy, its not about the tech platforms what would you say. I think thats a viable argument but you still have companies that are trading at attractive multiples that are growing much faster than the rest of the market i mean were overweight industrials and financials as well and health care which i think is also an opportunity but i dont think the tech story is over i just dont. I think what the Corporate Tax reform Information Technology is going to be the least beneficiary of that, only 24 . Basically 24 rates so financials will lead higher in the 2018 and some of the overpriced stocks in the s p, some of the large cap tech bellwethers might have tough sledding in 2018. Youre selling them to nancy. Thank you thank you very much. Citigroup shares dragged the sector lower late this the day after a citi cfo said their trading revenue in the high teens year over year in the Fourth Quarter driven larged by the fixed income division. Sandy, heres the issue, people love the financials, like deregulation and say rates are going higher i guess there are multiple levers to pull but still a big head wind not going away. You do look at the things that will happen the catalyst coming along. Rate hikes in 2017 lower Corporate Tax rates so it should benefit financials and help small cap stocks which i invest in and not only that youve got reversion to the mean which would be the third reason i like small cap, just a tough sledding. Theyre not in the Capital Markets. Right, right. The likes of citigroup are so, mike, what does the news mean to you and follows bank of america said it was down 15 , citi sounds like its worse. And worse than expected you have to think about what last Fourth Quarter was, right it was obviously postelection massive spike in fixed income yields so you basically had a tremendous amount of customer turnover so its expected to be weak the question everybody asks is are these big wholesale Capital Markets platforms citi, jpmorgan, Goldman Sachs, are they just disadvantaged. Not coming back . Are they just essentially victims of a low volatility word. The one thing you could say and a point jpmorgan tried to emphasize. They dont think theyre losing share butter theyre all down by the same amount so what are you supposed to do about that or how that differentiates from from an investor point of view the pie is shrinking. Thats not necessarily great news if thats what is happening. Weve been trirmer and sole out completely out of pnc because it hit our valuation target you know, i think you could still make money in the group and like blackrock but i dont think you want to be wholesale jumping into the large cap banks. Another news alert. Brian sullivan joins us with the latest what now i know you hit the quarterly numbers from the cfo this has to do with taxes down 1. 4 heres the latest headline again, all coming from that Goldman Sachs conference the ceo says that they estimate theyll have a onetime 20 billion hit to earnings to write down tax assets and pay repatriation taxes after the tax law changes as well and the tax changes could boost parts of their business by a couple of hundred basis points in terms of cost so we have talked about the potential benefits of tax reform lowering corporate rates and repatriation, citigroups cfo says it may not be without the downside which is they might have to pay if you bring money over, and have a lower tax rate but youre paying nothing on it before youre going to have a tax bill because youre going to bring it back albeit at a lower rate still have a tax maybe you didnt have and so citigroups cfo saying that there could be a hit in terms of a onetime hit to earnings because of tax changes and repatriation, guys ill send it back to you pretty much all we have but i think this opens up a whole different discussion which is a lot of positive discussion about Corporate Tax law changes, will we now enter a second phase which is there could be shortterm costs to it, as well. Yeah, exactly brian, thank you you can see the late day selloff. A known thing with them they have a large Deferred Tax Asset which comes from the tremendous losses they took years ago during the crisis. thats a nontangible piece of book value only has value in the future if you can use it to offset future profits. The value of that asset its a book entry kind of thing but the repatriation thing, everyone will deal with that. Its a onetime thing but then after that it supposedly moving to a territorial system where the u. S. Company would never have to pay taxes on those overseas profits thats right. I mean so it sounds like coming out to quantify the number im not sure its the repatriation thing but Deferred Tax Asset. Do you guys have an estimate for i mean is everyone going to get hit by the same amount . Many of these big banks have losses from 08 to deal with. I think so. Its still so fuzzy. I havent had a chance to dig in on some of the numbers and facts and dont have a final bill that we think we do. Citi was the outlier. By far. To a large degree. Which would explain why they were providing clarity around the issue. Once it comes over then theyre buying back stock and pay dividends. This will be good and have more cash to play with. Wilford joins us. With a little more on what weve heard from some of the banks from citi in particular today. Yeah, kelly, just a bit more color on exactly that 20 billion number thats grabbing the headlines so the cfo who put 16 to 17 of that revaluation of their Deferred Tax Asset around 3 to 4 billion in some segments because of repatriation. I think its grabbed a few headlines. They only invested on a 25 tax raise. They gave forecast then in terms of what hit theyd have to take one time for their capital 20 rate is the 5 difference is having a bigger effect than people expected so sort of onetime revaluation of the Deferred Tax Asset is accounting for most of the 20 billion 16 to 17 of it 3 to 4 is the repatriation and seei seeing citi down more than the others all of the cfos, all of the ceos weve heard from in the last two days have addressed how youll have a few tweaks to things like that on the Balance Sheet if they got Deferred Tax Asset. Citi always had the biggest of those. Moving forward theyre all positive about the effects it will have in terms of their ability to keep more earnings from each years individual earnings moving forward. Clearly the average tax rate in 2016 for most of these big six banks was close to 30 so they will be getting a positive effect for their earnings moving forward compared to negative effect here for citi in terms of their Deferred Tax Asset. Mike, the other thing thats kind of interesting, maybe funny about this is if theyre going to get hit that much from the change it shows you how big the Deferred Tax Asset is. Potentially was never fully going to be realized the value and its not just going to be the banks, there are lots of companies, mostly on the smaller end that do have big tax loss carry forwards so youre going to see a lot of this kind of searching up with the numbers once this all comes through andt he was willing to commit to set targets for cost cuts moving forward which they havent done recently and the other banks have done successfully hes also more upbeat in terms of corporate lone growth which is what they suffered on last quarter. The outperformer in the last couple of days they have other levers theyre going to pull here wilf, thank you, will fred frost, the late day decline about 1. 5 earnings alert on broadcom and move over to josh lipton who brings us those result. Kelly, broadcom reporting eps of 4. 59 that first expectations of 4. 52. Revenue 4. 85 billion, kelly, versus expectations of 4. 83 billion turning to the guide q1, they are guiding for 5. 3 billion plus or minus 75 million. The street was at 4. 8 billion and just looking at the segments kelly, wired infrastructure, 2. 2 billion. Wireless communications, 1. 8 billion and enterprise storage, 645 billion of course, a big question on this Conference Call is going to be how does broadcoms ceo address this issue this bid for qualcomm, of course, qualcomm has said that bid undervalues the company but we know broadcom has gotten more aggressive now saying theyll nominate that slate of 11 directors for election at qualcomms annual Shareholder Meeting next march that Conference Call kicks off at 5 00 p. M. Eastern and well be on it kelly, back to you. Josh, thank you and the dividend hike is pretty big, guys, up to a buck nancy, is it christmas its up to a 1. 75 from 1. 02. Shares are barely moving what do you think. They were expected to beat on both the top and bottom. Everybody is waiting to hear the qualcomm story and i love this whole drama because the qualcomm ceo came out and said, hey, you know, this isnt fair. Theyre taking advantage of the fact that our stock prices are undervalued and i kind of think thats the whole point of the capital measures so im eager to see what happens, yeah stock is down over 20 bucks in less than two week, right so the whole chip group got banged pretty good so now its sort of holding these levels right here on a better tan expected number. Thats a setup into the number and much better than expected and gave strong guidance for the First Quarter and raised the dividend and now shares are lower by half a percent. Yeah, i mean thats the market the chip stocks have been out of favor in general about an 8 or so percent decline and thats not out of line its a little more than the rest of the group so i think its going to really thing on what theyre able to get done with qualcomm and im eager to see how this works. The qualcomm shareholders may not feel that way but well find out with broadcom. Lululemon earnings are out as well to Courtney Reagan with those results. Hi there, so for the Third Quarter they bea zar one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. Hithat he wouldnt be able tond retire until he was 68. The client realized, i need to get back into the markets. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Wifiso if you cant live without it. T it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Wow. Thats mean supply going to send a message. That hell hes sentenced for seven years. Thanks very much we have breaking news on disney in the last hour if the deal to buy fox assets goes through a source telling cnbc bob iger is likely to extend his tenure once again after his contract expires in 2019 extended by two or three years. Disney finishing lower by about 1. 5 while fox finished a little bit higher by 2 3 of 1 . Theyll call it pulling an iger at some point. This has been going on for years and, look, to his credit he probably just cant really understand why it would be worth it to hand the company over to step back when hes marshaled them to this point has a huge potential deal with fox about to happen. Im sure each stage when they set it out in the future seemed as if he basically had the company in a condition to where it was kind of ready for the next phase of whatever the issue was going to be going through and you kind of moved it down the road also i think there was an instinct by whether iger or the board or both to have this gesture to say we have good corporate governance, not a failing Media Company like the others and have a process. So the unusual thing is not that hes staying in the job as long as he is but that they kind of had all these kind of false kind of guideposts as to when hes younger than les moonves 20 years younger than Rupert Murdoch. Hes starting to act like its a family company. There is a board, right i agree but the real catalyst feels like its actually about those rumors that James Murdoch would become lame duck ceo if youre going to undertake such a big deal. The other thing too if the deal does go through and this is a report and said that James Murdoch would become the ceo of disney. I think it was like youll be placed in a role that would place you in the running perhaps to be a successor. I would really doubt anything would be promised up front in any deal. That could still happen if this does go through, the reports also make it sound like James Murdoch might be looking for a new kind of role to perhaps get out thats one of the many apparent motivations for stocks looking to do this kind of deal. So now bob iger who has been ceo since 2005. I believe. Is talking about 15 plus years at the helm of this company, one of the biggest most successful companies. Followed a guy for awhile. Anybody there that long pretty incredible step up next, Consumer Reports says the iphone x is overrated. The reviewer behind that will join us next and mark okada tells us whether its a red flag for the whole Financial Sector coming unanimo coming up on closing bell. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade you myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Its time now for cnbc news update over to sue herera. Whats happening, hundreds of demonstrate frers across the country rallying in washington calling on congress to pass a d. R. E. A. M. Act that is clean of any other attached legislative agendas. It would protect 800 thousand children of undocumented immigrants from being deported five major fires now burning near los angeles the latest, the blaze up to the so pull virginia da pass that has forced the northbound side of the 405 to shut down. L. A. s mayor Eric Garcetti says four and possibly six homes have been destroyed in the bel air area it has expanded to 150 acres with 0 containment and los angeles will become the nations largest city with recreational pot after the city Council Voted to licensed sales beginning in january medical marijuana has been legal in that state for two decades. As weve been telling you nfl commissioner Roger Goodell has a new contract nbc sports reporting that the leagues Compensation Committee has informed all owners of the contract has been executed it comes despite Dallas Cowboys owner jerry jones who was trying to derail that signing you are up to date thats the news update back to you, kelly all right, sue, thank you very much. Sue herera a quick look at how we finished on wall street today, the russe russell 2000 down half a percent in the trade, the nasdaq was positive and it was the only one of the major averages by 0. 2 . The s p closed lower and the dow shed 39 today to close at 241406789 some of the other big stories in our rapid recap Unitedhealth Group buying davita for 4. 9 million in cash. Seems to be no stopping the crypto currency. Surpassing 12k. Just pure gambling. Its just gambling you want to gamble go to vegas vegas is fabulous. I hope we dont make big changes in terms of the Economic Growth structure which concludes having our tax rate be slightly below the average of the industrialized countries the administration is doing a tax cut and a spending decrease but hes doing them in the wrong order. What we need rightnow is a focus wholly on reducing debt. I have determined that it is time to officially recognize jerusalem. As the capital of israel sflt easy money has been made, the s p has quadrupled off the bottom makes sense we would want less risk than three years ago or six years ago or nine years ago. And Consumer Reports has tested the iphone x and say the phone is an innovative geiss, has fantastic camera, a beautiful display, but they also found other phones are tougher and can operate longer on a charge joining us is bree fowler from Consumer Reports who tested the phone. Welcome. Thanks for having me. So you guys actually think that if people are looking for the iphone x they should consider an android or 8 instead. You know, its all really about whats good for you. I mean you really have to weigh the pluses and minuses of all those phones you know, the iphone x has the best display and camera on the market currently i mean, its better than most highend tvs when it comes to it and if youre into photography this is probably a great phone for you but you also have to look at the fact that it costs significantly more than the 8 and 8 plus and that it also, you know, it has a tendency to break. What did you find in terms of durability. What we did, we at Consumer Reports, we have a tumble tester that drops the phone the equivalent of 2 1 2 feet, 50 times and 100 times and check it after 50 and check it after 100 times. To see if its cracked or malfunctioning and, you know, that did happen with the iphone x whereas it didnt with the 8 and 8 plus. We reached out to am for a comment by the way on the report of the shortcomings of the x on durability the company said the xvenlt is the best iphone we have made yet loved by millions. The iphone is designed to be durable based on our Real World Testing made by the best glass ever in a smartphone its interesting, they say its the most durable glass over. Why do you think its more susceptible to breaking in those test you performed basically you have to remember that its both glass on the front and on the back. And, you know, glass is glass. Its not metal and glass can only take so much. As to why its more breakable than the 8 and 8 plus, which is also glass on the front and back, were not exactly sure but, you know, were not saying you shouldnt buy this phone were saying its something to consider and you definitely should think about getting a good case and maybe apple care too. Okay, what about the battery life well, the battery life is nothing to sneeze at its 19 1 2 hours which will get most people through an average day. But, you know, heavy users may gi get a little nervous towards the end of the day, the samsungs have 20, 24 hours at some point on some models it just cant really compete and heres what apple said when we asked them about the battery tests. They said the x or the x and a11 bionic are engineered to manage power intelligently and efficiently so customers can expect it to last up to two hours longer between charges than iphone 7 in real world use. They made a lot of strides but you think the 8 has overall better battery life and the samsung phones too. One thing you have to think about with the x it does have this beautiful olad display and that takes energy. There is a lot of brightness behind it and that takes juice so the question is do you want a screen and a display thats going to rival a highend television or something that will last a lot longer one of the things you can do if youre worried about battery life is turn down the brightness and that will help you save juice. Yeah, we got one of the x phones from a friend down here and i said, wow, your girlfriend is a great photographer and he said, well, thats just how good the camera is on these phones, so anyway oh, here. Lets see. Does that help try that now working a couple different thats photographic. Thats high quality, mike. People are only seeing it on the quality of their tv. Thats true you cant capture it all it is beautiful. Bree, thanks for joining us. Appreciate your thoughts, of course, Consumer Reports, as always. Thank you for having sflee thats bree fowler up next noted asset manager mark okada is here to tell us whether there is an opportunity to buy financial stocks under pressure this afternoon after citis bearish comments about the Fourth Quarter and shakespeare asked whats in a name famously but a lot according to walmart under going a name change. Details still to come on closing bell. But theyre not wt people really invest in. What people really invest in, is what they hope to get out of life. But helping them get there takes a pure focus. Because when you invest their money without distraction, hidden agenda or competing interests, Something Wonderful can happen. They might just get what they want out of life, and maybe even more. We are the driven. The dedicated. The overachievers. We know our best investment is in ourselves. We dont take no for an answer. We fight for what we want. Even for the things that were once a given. Going to college. Buying a home. And not being in debt for it for the rest of our lives. But were only as strong as our community. Who inspires and pushes us to go further than we could ever go alone. Sofi. Get there sooner. Breaking news, late in the trading day, citigroup estimates the firm will have a onetime 20 billion hit to earnings because of tax changes and the ceo speak at a conference said Fourth Quarter trading revenue in the high teens percentage shares down 1. 5 could we see this trickle through the Financial Sector mark okada joins us now. Great to be here. In this is filtering through but what is the significance of citi having such a big onetime bill as a result of these tax changes . Well, they have a pretty big Deferred Tax Asset that theyve got to write down because of how the repatriation works and i think as this as people adjust to the reality that were going to get tax reform done, theres going to be things like this netnet do i think its a negative for citi in the long term, no, not at all i think you like citi longer term. I do. I think its going to take a while, though. There are lots of things to like about the financial, right theres deregulation but it takes time i was just running around the street this week and talking to people and asking them, do you feel better about your life because of deregulation and they say, not wait. Were you talking to people on the street or wall street client. Im talking about bankers, cap market, trade sflers not going up to people on the sidewalk. No, no, we could but and he should be feeling better, right . I mean weve got a fantastic year and the markets are good and economies are good but its going to take time, right . Its going to take time to filter through and one of the things i want to talk about is a macro outlook for next year. Economy is very good globally. China reflate and made all the other countries tart to look better suddenly just in concert. Weve never had less countries going into recession ever. Wow so the whole Global Economy is starting to look very goldilockslike and thats been something thats very important and i think on the flip site of that we start to get some inflation which we havent seen at all on this year and its been the call a lot of people talked about but i think next year youll start to see that focus through. If we get five hikes, its going to be a little different reality than we got right now. Sure, if we get five. You mean one in december and four more. No doubt about it. I guess i wonder if the debate is in we do start to see inflation pick up a bit can we have a phase where its good before its bad. Yeah, or at least the markets treat it that way. Depends on where its coming from but also can get exacerbated by a foreign flow. If you look at the curve and where its been, theres been about 60 basis points consistently in the back end thats been depressed because weve had so much money coming in from foreigners that these tourists in our bond market and the tourists decide, hey, you know, things are okay going home and got the less negative rates out of europe and maybe they start go from tapering to actually exiting then you could start to see that dynamic change pretty dramatically but from the inflation picture, right, the phillips curve from 4 6 than at 3 6. Unemployment rate. So were by all accounts thats where were going next year so you could get some real inflation from that. And then lastly, i dont want to beat a dead horse but im watching the trade negotiations. Yeah. The negotiations and things theyre trying to get out of them to me dont make a lot of sense and could be inflationary in a bad way, just make things more expensive any others you like that are well positioned for next year. Not to put you on the spot or anything. Again, we think inflation and rates go higher, i think the overall market is pretty priced well ive gone from being uncomfortably bullish to being comfortable. Comfortable just comfortable in general and i think the market could be okay, but that whole dynamic about, you know, where the winners and losers are going to be, you know, kind of how these tax changes roll through, how people are set up with for higher rate, a steeper curve and whether some of this tax policy and the trade policy changes Going Forward so im bullish on taxes, you know im bullish on advi vistra and some of those things. Mark, thank you very much good to hear your perspective. Five major fires are threatening the l. A. Area right now. We will head live to bel air in california for the latest on thisdevastation. Coming up on fast money one of wall streets sees more record highs and mike wilson will tell us what has him so excited im having breakfast at the pantheon. What an amazing view. Of your finger. Look at this view. Your finger isnt that incredible. Your finger and check this one out oh its so amazing move your finger three times points on travel and restaurants on every continent. Sapphire reserve, from chase. Make more of whats yours. [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Talk to one today and see why were bullish on the future. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. A wealth of information. A wealth of perspective. A wealth of opportunities. Thats the clarity you get from fidelity wealth management. Straightforward advice, tailored recommendations, taxefficient investing strategies, and a dedicated advisor to help you grow and protect your wealth. Fidelity wealth management. Major fires are burning near los angeles threatening to cause devastating damage jane wells is on the scene with the very latest. Jane hi, kelly im on mulholland and the nations second largest city is blanketed with smoke air quality in a city thats not used to good quality in the first place is becoming an issue. You can see behind me the entire San Fernando Valley from the creek fire is covered. But the latest fire that broke out. Threes video from it this morning. It was in bel air. One of the most exclusive neighborhoods in the country has had to be evacuated. Classes at ucla canceled four to six homes destroyed. Probably more than that because weve seen more get up among those watching this closely is Rupert Murdoch, a 16acre vineyard and winery. His spokesperson telling cnbc we are all evacuated so are watching along with you. We believe that the fire has come very close to the top of our vineyard often vineyards work like fire breaks so we are hoping that is our situation as of now we have not been informed that we have any damage our concern remains for the safety of our neighbors and First Responders up northwest to a live chopper shot of the largest fire, also zero percent containment here. This is in ventura county, thomas fire, 65,000 acres alone in this fire over 150 homes destroyed thousands have been evacuated. The miracle here, the miracle, kelly, no one as far as we know has died there have been some firefighter injuries including in the fire behind me here, but as of this moment, no human deaths. Back to you. Yeah, we hope it stays that way. Thank you very much for now. Jane wells there in california some breaking news meantime, on the potential sale of some fox assets fatman is here david faber joins us i was gone. But they brought me back thanks to citi bike. In the last hour a number of different headlines regarding the tenure of robert iger, the chairman and ceo of disney and whether or not he will stay shoulds deal that weve been talking about, of course, so often actually take place. Namely disney buying so many of those assets that fox would be selling to it. And we can tell you that it is likely mr. Iger would extend his tenure beyond its current contract. Feel free to take that. No, that one is not that important. Ive talked to all the important people already although they keep calling but beyond his current contract which goes until the middle of 2019 now, mr. Iger though no secret to anybody who at least has been may paying attention, thinking about a run for the presidency of the United States and there has been certainly some speculation that he would, in fact, leave the job at disney and undertake perhaps a candidacy for 2020 clearly if they do the fox deal and his contract is extended as appears to be the case and it goes towards the end of 19 into 20 he wont be running for president. That would seem to be a clear decision he has to make at that point. That said, so many other moving parts here, of course, weve tried so hard to cover in so many different ways. Including, you know, what would be just the size of this deal overall as i reported yesterday, well more than 60 billion in disney stock and the assumption of debt at the as sets acquiring from fox unclear how much that would be we can get into even higher potential numbers. They would conceivably also at some point, well, fox would actually complete the deal to buy sky but disney would step into that deal, become a full owner of sky you might want to add in that consideration as well and that would up your total price tag and, mike, the number of shares theyd be issuing, its going to be close to 30 of the combined market value of the fox assets and disneys current market cap. So that just gives you some sense as to whatter woos talking about in terms of size and how many shares deal our Parent Company continues to be in the hunt it continues to want to own these assets its willing to pay a similar price if not perhaps even a price that would exceed that of disney however, it is not currently the leading bidder, in part because they may favor disney currency, in part because there is an easier antitrust road, many believe, you could certainly make different contentions about the combination of the studios and even the Regional Sports networks with espn maybe creating an antitrust problem. Potentially you even get back to family here, guys, James Murdoch and what if any role he might have at disney if they complete this deal. What about rupert, does ru Rupert Murdoch want to stick around if it takes a year for the regulatory review and he leaves six months later, thats not a great thing for the integration of this size mr. Iger has overseen a number of significant acquisitions for disney, but none of this size, or close to it as a significant owner, personally murdoch and his children will be owning a lot of these shares, you might want to see continued management in place, continuity. Or at least have it out there that theres not a hard end date in 2019. Right, especially, mike, because they dont have a chosen successor at this point. Exactly you would be doing a horse race for success at the same time as trying to get this deal closed the fox assets that are kind of on the table, is that a fixed bundle of things that are for sale if comcast is interested it is, its the same fixed bundle it inclusides the regional spor networks, the fx channel, national geographic. Weve talked about star in india and the value there. Weve talked about about, as i just mentioned, the 39 ownership of sky, what would be potentially 100 at some point we havent talked as much about latin america, but thats important too, this company does 100 million in argentina alone in ebitda. The International Assets are of great consequence. Thats why comcast would make the argument, 70 of ebitda from this Company Comes from international to begin with, were only talking about adding really two cable networks, although 22 rsns is significant. Comcast already owns Regional Sports networks as well. At this point that argument seems to be falling on i wouldnt today deaf ears, because theyre still talking to both sides, but it seems to be a little bit less helpful to hear, is that what i want to hear, on the comcast side david, great stuff as always. I hope it wasnt your wife whats that it was you said it wasnt important. I can talk to her any time. Some of these other people, kelly, they dont call back once they call once david faber, thank you. Shares of lululemon and broadcomm rallying we have the latest on those results. What are the ingredients of a life well lived . Is it the places you go . The things you own . Or the people that fill it with meaning . For 150 years, generations of families have chosen pacific life for retirement and Life Insurance solutions. Protecting whats most important to you. Thats the power of pacific. Ask a Financial Advisor about pacific life. Broadcomms Conference Call in isjust a couple of minutes well tell what you to listen for when we come right black i think we should do that meeting tomorrow. Well wait. What did you think about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Another check on names moving on earnings after hours, lululemons Earnings Call began 30 minutes ago broadcomm up 3 , mike. Down 20 or so in the last ten days in general the whole question is, is this a change in trend for the chips, therefore a buying opportunity or are we basically going to have to worry about these guys having peaked out a few weeks ago . Right, we talked about the chip cycle and different analysts who have come forward to say this is as good as it gets meanwhile, for the Broadcomm Qualcomm deal, theyre trying to elect a whole new board for qualcomm thats going to be the story for this company a lot of people think its a big bite if they win it, it may not be that great immediately for the stock either it will definitely are the story. And well have to figure out what qualcommdoes with fxp, if they pay too rich of a price theyve got four companies that are maybe going to get mashed together before too long. All while everybody is trying to figure out what the macro picture for chips is and lulu, the stock has hung in there all year, its outperformed most of the peers i have to give them credit. The street has been skeptical, half and half recommending it or not maybe that changes after today. Thanks for joining us, everybody. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square im melissa lee. Tonight on fast, the hunt is on, comcast and economy going head to head for fox our own david faber will be here plus were two days away from a potential Government Shutdown as the house and senate are battling over the tax bill on capitol hill. Well tell what you it could mean for the markets the banks have been the teflon trade of the year despite a tough environment
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