Talking about the closing bell. Welcome. Im kelly evans and the new york stock exchange. Im bill griffeth. Eight years ago today the s p hit its low point, 666. Discuss that for a while. Diabolical. The market of course has come a long way since then. The s p right now is around 2375. Well look at whats behind the pause going on now. Travel stocks are getting hit as President Trump signed a revised executive order temporarily banning travel into the u. S. From six countries. Snapping its win streak we have the first down day for the hot ipo of last week snap. We have more of whats behind that move today down 8 and 3 4 now. Td ameritrade clients have been selling for eight straight months. Well debate if this is the time to sell as the iphone 8 leaks trickle out. Havent even seen the 7 yet. Well talk about it coming up. Lets start with President Trump. Eamon is at the white house. Reporter this is a buttoned up white house in light of the signing of the executive order. The president signed it behind closed doors. They wouldnt allow reporters or cameras in when that happened. The press Secretary Sean Spicer briefed reporters but only off camera. They wouldnt go on camera with the press briefing. One official we heard from is attorney general Jeff Sessions who described the need for the president s second executive order on immigration. Here is what he said. We cannot compromise our nations security by allowing visitors entry when their own governments are unable or unwilling to provide the information we need to vet them responsibly. What we know here is this is now not seven countries, but six countries. They have taken iraq off the list of countries affected by this because white house Officials Say the Iraqi Government has been cooperative in terms of getting them the data and information they need to secure travellers coming from that country. Will will be effective march 16. They want time now to implement it and roll it out to the line officials. It does not revoke valid visas. There is no distinction made for Syrian Refugees and all refugee admissions overall will be halted now for 120 days. They say it doesnt apply to current green card holders. So a revised second take at the executive order here after the roll out mess that the white house saw after the january 27 e. O. They say this will go more smoothly. Theres been a lot of coordination between the departments of homeland security, state and the white house. If they are exempting green card holders whats the status of this ban when it goes into place. The ban is in place for 120 days. They will stop the program for 120 days and give a multi day process here whereby they give other countries the opportunity to provide information and get off the list. Well see whether those countries will cooperate and provide the information that the white house is looking for. Sean spicer saying today in the briefing they feel something might happen over the course of the next 90 days after this is put in place whereby more countries can be removed in addition to iraq. Thank you, eamon. North korea launched four more Ballistic Missiles as they moved forward aggressively with the Nuclear Weapons program. How does a poor country afford a Nuclear Arsenal . A u. N. Report provides financial evidence on how they are flouting u. N. Sanctions often with the help of its patron china. The new report details how north korea sells arms to countries in africa and the middle east and billions selling coal and iron ore to china. A ship seized in the suez canal carried a shipment of grenades from north korea. They are under the tarp under the dirt. The report shows the country sells arms through a Company Called glocom which advertises on the internet and makes almost no efforts to hide its origins. There are many Front Companies in the u. N. Report which are registered in malaysia or china to try to hide north korean roots but not well. Diplomats have been caught smuggling gold bars, cash, watches and even this bentley. Investigators discovered that swift the International Payment system is still processing transactions for north korea juan banks though some of the banks are supposed to be prohibited from using the Global Financial system by the u. N. Sanctions. I have reached out to swift and am awaiting explanation. North koreas biggest in flux of cash however, more than a billion dollars comes from selling coal and iron ore to china. China promised to curtail those purchases but it hasnt happened. The u. N. Asked china for an explanation. You anticipated my question. China said again they would not be buying nicole from north korea. Right. Thats the second time they have said that. They said it back in the middle of last year. We have seen actually coal imports go up. Went up even higher than they said before. The second time a lot of people are worried that it wont mean much. China has some agents boycotting north korea. When you have stuff like this happening in your backyard its hard to blame them for wanting that technology. Sure. When you read the report you realize north korea broke its own record last year with 26 Ballistic Missile launches. Thats not including what we have seen in the last couple of weeks and the four last night. They become very aggressive. They say out loud very different from iran. Iran wants a Nuclear Program but a peaceful one, nothing to do with weapons. North korea says we have Nuclear Weapons program and we want one. Scary. Michelle, thank you. The market not seeming to mind the Political Risks going on overseas. We have seen quite a rally until the last few days. Gold is up 60 cents today. Not seeing the usual lift there either. Joining us now from Rbc Capital Markets at post nine and fred kemp from the atlantic council. How does the market just keep digesting risks as if it is no big deal . I think the problem is we have had north korean Ballistic Missile tests going on for a long time. It is not seen as an increase in threat. The murder of kim jong nam got attention but i dont know if the market is appreciating the risks involved with the north korean regime going through with a missile capable of hitting the west coast of the United States. It is blase right now in terms of looking at the risks. You are a former cia analyst. Thats your street cred on this story. Fred, how scared are you . How worried are you about what the North Koreans are doing now . Less worried than i am fascinated to watch the dance between china and north korea. A year ago the uncle of kim jongun the leader was assassinated. He was the intermediary to china. Recently the brother was killed. He was being protected by china as a failsafe option if anything happened to kim jong un. Now you have talk about the coal embargo. Will this happen . The other key thing is how does donald trump communicate with ping, the leader of china in this time. Its interesting the white house has been muted on this today. This issue was featured a couple of weeks ago about north korea. Went there speaking with the military operations in south korea where they said, listen, we could do a lot of damage in a very short period of time if we needed to. Do you get a sense out of this administration they would strike preemp tyly . I dont think this administration wants to strike north korea preemptively. They have heightened rhetoric on iran for example but arent looking to pick the fight now. The problem is what happens in the event like you do get an icbm test. What is going to be the response of the administration. This is where the issue of staffing vacancies in key departments in washington. The problems with the cia and the us who. That comes into play in terms of the policy response. Why dont you think we are seeing market response to this. In the past, and i mean pretty distant past now. We havent seen much lately in the markets. You would see gold go higher for example as an example of the fear factor. The stock market has been multi year lows for several weeks now. What do you make of that in the context of overseas. People just view that as noise. If we see something significantly stepped up, again, like an icbm test. If they are seen as a clear threat to south korea the market would take it seriously. It almost has to materialize for it to be digested. I think the same thing with iran. When you talk about the testing out of north korea and how common its become and wonder how the International Community has stood by and let it get to a point where we are speculating about outcomes and whats next what pressure can anybody put on north korea save china and who needs to put pressure on china to get this to stop. How can we put more pressure on north korea to end this behavior . Anyone talking to senior chinese officials these days knows they have lost their patience. They have lost patience with the Nuclear Program, with the leader. Whats their alternative. They dont want a collapse with hundreds of thousands of refugees coming across the borders and they dont want an unplanned or really want the Korean Unification where it could end up south korea is the leader in the unification and it lands in the west. It is a complicated calculus. They are putting pressure on themselves. If it was icbm it is an intercontinental Ballistic Missile. Had this been a test of an icbm you would see a lot more pressure from the u. S. Why are we waiting for that to happen . Why are we waiting for north korea to test the icbm . This gets to the question of Political Risk and geoPolitical Uncertainty. The great chicago economist writes about the differences between the two. Risk is something you can calculate. People aring looing at donald trump are looking at donald trump and seeing deregulation. The markets are buoyant. The political uncertainties, you cant measure the risk there. Thats where we are with north korea. You dont factor them in the markets. You are wishing they dont come true. You look at the elections in europe. You have an accumulation of Political Uncertainty that the market has not priced in. That was the point. If there is any time to be rattling sabres its now with the transition we are going through here. The brexit crisis in europe and so forth. This is the time. If they are going to make a move. We have to be worried at this moment. We are seeing not only tests from north korea but we are continuing to see more aggressive behavior from iran. This is anything but in terms of Political Risk. Here again we are not seeing that in the markets. I think we have to see something significantly stepped up to see if in terms of gold or in terms of the oil price because of the middle east. We can talk about the fear factor. We have to see something materialize for the market to get nervous. Good to see you both. Thank you for your insights today. A little more than 45 minutes to go. The dow is down 30 points, back below 21,000. The s p is down. Do you think it will be this way until the jobs number . Its early. This is a market that still feels like it wants to go higher. As we were discussing, plenty of reasons it might take a pause. Snap posting its first decline since going public last thursday. Well tell you whats pressuring the shares when we come back. General motors laying off workers at a michigan plant and selling the Opel Division to the french maker of peugot. Youre watching cnbc, first in business worldwide. A slight down day. The dow down 34 points and snap with a minus time for the First Time Since going public last thursday. We have seen selling. Needham initiated coverage of the stock with an underperform noting their market is 80 smaller than facebook. Barrons calls the stocks ridiculous ridiculously valued. Today marks eight years since the stock market hit the very bottom. Markets dropped to 6547. The nasdaq was down to 1268. Certainly the markets have come a long way since then in the past eight years. The dow hit the 21,000 level a few weeks ago. Joining the Closing Bell Exchange today with more michael far from far miller and washington. Kenny pokari with us at post nine and Rick Santelli in chicago at the cme. What a run. I was here when it was all happening. Its been a run. Most of it fuelled by the Monetary Policy we saw around the world more so than economic policy. It is what it is. Now we are into a new chapter. Its much more focused on reform. Tax reform, fiscal policy. Not monetary. With all due respect we have been saying this for a while. Even as the markets have gone higher we have a myriad reasons why it should go down. It will but i think an adjustment or pull back in prices. Even a 7 pullback would be welcome. I think people are hoping that happens. The more you hope it goes the other way. How do you invest in this environment . Probably very carefully. We are making a shift of watching one area of government for another area of government. We have been watching the fed for eight years and what they are going to do and how it will affect markets. Now congress and fiscal policy and the treasury to figure out how they will drive markets. I longed for the old days and kenny does, too. We would look at earnings, fundamental and top line growth. You look at maybe some of the companies that will benefit from some of the tax cuts and domestic tax cuts. Companies like cbs, for instance. Domestic operations will benefit from lower taxes. I like the industry. Its got beaten up in health care or sprouts, farmers market. Thats a different kind of a Retail Investment that i think still looks cheap at about 18 a share. Produce is 25 cheaper than most of the supermarkets. Its a time to be cautious. How about a chart of the ten year yield. Im looking at the time frame around 2009. It went to two and three quarters or thereabouts. It hit 4 . I went lower. In the treasury yields over this time frame. The stock market has multiple s there are still multiples in the other direction in terms of the smaller size. First of all, none of us truly know if there was no dodd frank, no crisis area issues going on or policy outside a few of the programs. Some of the liquidity need bid the fed. That was good stuff. The notion of going to 65, 6600 and policy bringing us back. We would have come back anyway. The worst move is always followed by a reversal. Many always under estimate how the animal spirits. They call it crossing the creek. The big break going into a canyon. A large part on their own. It is counterfactual. What strikes me is so many of our guests have believed that the number friday will make or break whether we see a tightening in march. After the multiples we have discussed its silly after all these years that it still boils down to one number. Thats wrong way thinking. On michaels one comment maybe the best way to get back to fundamentals is to actually embrace policy changes. We are reversing the things that work against fundamentals. Tax policy, good regulations. These arent meddling with the ultimate multiples down the road. These are getting them back in line. The distortion has been the last eight years. Its still a shift from Monetary Policy to fiscal policy easing. This is a stimulative policy we are looking forward to here. They have been taking saddle bags off. We are all using stimulative. I look at it as normalization of policy. We had bad policy, regulations that made no sense. We were regulating small entities the way we were regulating large Balance Sheet entities. All of that coming off is a good thing. Less government in certain ways. Certain areas its needed like immigration. In other areas, it isnt as necessary and i think we are making the right call. Which is exactly my point. The last eight years have been stimulated with Monetary Policy and Central Bank Policy around the world. Not just in this country. We saw rates negative in parts of the world. People were forced into the market and to put money looking for yield which drove so much of the move we have seen off the lows. That said, normalization will be a good thing. Maybe there will be and should be a correction. Once we get back to normal well start to focus on the fundamentals and what matters. We have to go at this point. Everybody nodding their head at the same time. Thats a good ending point right there. Thanks. 37 minutes left in the trading session for monday to begin the week. 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