And weve got someone who says its time to fade the growth driven fang stocks that are in the nasdaq composite. Hell explain why in a little bit here. Home builders are under pressure today after President Trump slapped as much as a 20 tariff on canadian lumber. More on that plus the president meeting with farmers at this hour to sign an executive order in just a few moments, of course, well bring that to you live as soon as it is released. And transportation problems, shares of ryder system hit hard today, down 12 , the ceo of the Company Joining us to explain why this business is under pressure. They were almost 100 stock two years ago. Now they trade at 69. The Trump Administration is considered friendly for truckers, deregulation, infrastructure. Just the economys hot. Talking about all of this. After the bell, big earnings for at at t, numbers and analysis for you after the bell. Beginning with the market, nasdaq hits 6,000 for the first time ever, dow revisits 21,000, and bertha is at the floor of the stock exchange. Only right that we begin with you today. All right. We got the big round number today, and the small cap, russell 2,000, also at a new record, nearly 300 new highs on the nasdaq. Biotech is the best performer after earnings beat, but large caps fueled this move above 6,000. The nasdaq 100 gained more than twice the s p, up nearly 14 year to date with more than two dozen new highs or on the nasdaq 100 alone today, and thats really been the story, these megacap tech names at record highs driving the action, not really fang so to speak, but in terms of the nasdaq 100s, 672 gain this year, apple provided a quarter of the gains in the market weight index, and amazon, facebook, and microsoft make up another 30 . Sectorwise, its been chips that are the standout. The index 20 below the alltime high in 2,000. We see a lot of consolidatiocon and upgrade cycle for memory Chip Technology is drivie inings like micron when the nasdaq reclaimed the 5,000 point, and chip equipment makers like Lamb Research at an alltime high today, and, bill, i have taken my test. I am west african and southern european. Very good. Very, very exotic, as we all know about, bertha, thank you. Now bob on whats powering the dow, back above 21,000, bob. Yes. Yesterday was the french elections. Todays earnings beating top and bottom line, which is important. Caterpillar, 50 points on the dow right there. They beat and raised their full year guidance. Thats very important, raising that guidance. Ceo saw encouraging signs on sales, all machinery stocks, deere, terrace, upside. Swing around here, 3m, a lot of historic highs. They beat. They raised their full year guidance as well. Fractional gains overall there, but nice numbers still nonetheless. Swing around here, this is another historic high on mcdojds. Great numbers. Look at that. 7, and they had they had expansion on breakfast offerings, and, finally, another one, the third alltime high, dupont, remember the merger with dow, right in line on track, and they also beat they talk about numbers as well, ahead of analysts expectations. This is not just about the bottom line this time, but the top line. Look at expectations for the First Quarter earnings. We are now up towards 12 Earnings Growth, but Revenue Growth is showing numbers. Remember the horrible numbers, 0 , 1 , 2 revenue we saw for many, many years . Revenues finally starting to catch up close to 7 so mufar. Thats an important factorment you cant play with the top line that easily. Back to you. Bob, thank you, see you later as well. Getting to the closing bell exchange. We have larry from mayflower advisers, kenny from oneil securities at post niep, and bringing in the cnbc senior markets commentator early. You know its a big day in the markets. Yes. And Rick Santelli is in chicago another the cme. Michael, starting with you. We tend to characterize a rally, whether its the trump trade, its earnings related sure. Whats going on here. Two days in a row. First time we had two backtoback 200 gains on the dow since after the election. A tension release, i think. I think there was a legitimate question after yesterday whether that was a oneday adjustment to the passing of the anxiety of the french elections. Clearly, those that shadow of we dont know what happens is keeping the market somewhat in check, but i do think today it shows you with treasury yields going up, it gives the wink to the cyclical stocks in the dow, megacap industrials, and it starts working again. We had a quiet correction, about a week ago, appointmented out that a lot of stocksing cyclicals pulled back, seven, 8 10 . Theres people kwisay its not the alltime high, its close, but people say the average stock is not necessarily keeping pace or its been nixed. That shows you its a a selective market. Put it positive spin on it, say its winners winning and some are left aside. Larry, i wanted to ask you specifically about tech and some of the big fang names that propelled the rally. What is it about them . That they growth or cyclical, and they make them the darlings again. Its an amazing story, looking at it. Closing at the first 100 days of trump, heightened level of uncertainty, unpredictability, and yet a low level of stock market anxiety. The market is on prozac. Its comfortable chasing megacap valuations because it was anything but the trump trade. Money gravitated into large cap growth at the expense valuation, and expense of fundamentals and any real value in the market. You know, it reminds me of the stock market adagdage, picking dimes in fronts of a bulldozer, right . Pick up dimes in front of the french election, we got away with it, maybe tax reform comes up, past the debt ceiling and Government Shutdown. I think at the end of the day, this market is a little bit too complacent. If you believe that this market is priced to perfection, everythings great, going to get all the policies we need to drive earnings materially higher, then, like in the lego movie, everything is awesome buy upsale. Like me, you believe a height ped level of Political Uncertainty bringing in question what things look like, be selective and brace yourself for increased volatility here. That adage needs to be adjusted for inflation. Picking up silver dollars now in prompt of the machine. Kenny, you watched the order flow here at the exchange. You know, volume is not that heavy, and lets, again, highlight the volatility index, the fear indicator, that continues to plunge down now at 10 and change. It was down 25 yesterday on that move yesterday. Today, though, its really its flat essentially today r right . I agree with larry in the last comment. I think its gotten well ahead of itself. As much as you agree that the economys turned around, caterpillar really talks to the International Economic turn around, right . Caterpillars the International Infrastructure name. So thats positive, i get it. I think the markets pressing complete perfection, and i dont think well get that. I think its the Political Uncertainty thats going to be the catalyst to cause the market to back up. Im not by any sense talking about the market crashing, but i think the you know, feels like its momentum, its computer driven. You talk to climates, talk to customers, and everyone is watching it. No ones making active lets take them. Its computer driven. I wonder, rick, if thats why the bond market payments a different picture than the equity market now. Look at stocks, and its a rosy picture of the trump economy, whether its earnings or international growth, and you just dont see that in the bond market these days. No. Im not sure the stock market still focusing on trump. Weve had a lot of issues whether its tariffs, lumber, dairy, steel. The catalyst really was europe to some extent, and the equity markets, you know, they are big dimes, 450 points in two days, but youre right, sara. When it comes to the flixed income market, they are watching the stock market and waiting to see did this lasts. Ill tell ya, for the first three and a half hours in our time zone, it was flat as a pancake. You were hovering around 126, 230, 295 and 30s, and in the last hour, especially after a very solid twoyear note auction, rates are creeping up, and its significant. Now we find tens are right back into the bottom of the 230 to 260 range. We experienced that most of 2017. I think tomorrows auctions going to be really important, the fiveyear, because if you consider investors, why they buy twos . They settle 118 friday, eight base sis point conception. In essence, they bought the dip. Will they correct tomorrow . Well know when they close today, watch 34 billion fiveyears tomorrow. Quickly, rick, i have to followup. Which is right . Bond market is usually right, does that signal a stock selloff is coming, or are bonds going to play catchup here and we can expect a sharp rise in rates . Well, you know what. I permly still say the equity markets have it right. If thats the case, yields should start to creep up. The real issue is how much horsepower will they get . How much foreign demand will we continue to see in our treasuries because everybody says europes rosy, i just see lots of red ink and mario draghi has reins superglued to the hands. Not only does the bond market necessarily reflect awesome behavior, but the Energy Market does not reflect it either. The Energy Market doesnt see this as an awesome economy. I think you got several barometers with conflicting signals here playing out. When with that said, thats an opportunity to invest in Energy Stocks here. Do it through a basket approach. Kenny makes it a point, baskets drive the market. Passive investing increases velocity of rollovers. Get ahead of the rotation, out of the fang, megacap large tech into the Energy Stocks left behind. Ahead of the rotation, before it happens, in case this is an awesome market. Do you see two different stories told here . I dont think its a screaming disagreement between stocks and bonds right here, and i mean, its not as if, you know, treasury are rallying and driving yields to new lows and breaking below the range rick talked about. Nms you saw that, and, look, stocks are trading at levels they first touched, you know, a month and a half, two months ago, and it does not seem to me at this point to be a big di ver skbrens. You still have treasury yields yielding more than the s p 500. Theres times when its been upsidedown. I dont necessarily think its one of the things you have to say this is a big problem. By the way, if its a slow growth high liquidity market, which, by the way, we had most of the last few years, stocks went up. They were led by stocks like the big nasdaq names. Its not of if the market goes up, but which works better. Earnings growth is there. Look at mcdonalds, caterpillar, and thats fuelling the dow. Fuelling lately, like bob said, we cant fool around with top line. Thats finally looking better as well. Good to see you guys, larry, kenny, thank you. The law firm of santoli. What is that . There you are. Home builder stocks not taking part in the rally thanks to the Trumps Administration on canadian lumber imports. Details on what this could mean for your new home prices next. And later, get ready for the fire hose, panera bread, at t, and arconic report after the bell. We deliver the numbers and break them down with the analysts the second they hit the tape. Youre watching cnbc, first in business worldwide. Whoa thats amazing. 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Its your trade. E trade. Start trading today at etrade. Com home builder stocks lower today after the Trump Administration imposed as much as a 20 tariff on imported soft wood lumber from canada. We have the story. How will that impact the housing crisis . Sara, builders are not happy about it at all, raising their costs, they say, passed on to home buyers. Onethird of lumber in the u. S. Was imported, the vast majority from canada. Lumber makes up 1015 of the Construction Cost of the home, framing, moldings, flooring. Commerce secretary ross said, however, not expect a big cost for builders rise by much. We do not think that the price of lumber will go up by anything like the 20 , but there may be some small increase in the price of lumber for the house. But lumber prices were already up 22 this year on the expectation of this tariff. The association of home biuildes say this cost adds 1200 to the new price of a home and could cost over 8,000 u. S. Jobs. Higher costs means fewer homes and afford fewer workers and gives businesses that sell and transport Building Materials as well. The secretary did not comment on u. S. Jobs, but said it wouldnt see any competition between the u. S. And canadian lumber producers. More online, of course, on cnbc. Com. Im sure diana, thank you very much. We have a lot more on this as well as top lumber company executives, both sides will be joining us, daepti indebating t of the tariff next hour on closing bell, its a hotly contested issue right now. Meantime, were head theed to close with 40 minutes left in the trading session here of the dow, rally day again, back above 2 21,000, up 250plus points, and nasdaq up at 6,000. The russell 2,000 is a record high. Oh, by the way. Up next, highlights from the exclusive interview with cocacolas ceo, and how he plans to put the new spin in the soda diet stock. He takes over as ceo on monday. And what in the world is sending trump and Logistics Company ryder into reverse today . The ceo speaking with us exclusively coming up. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Dow up 258 points now, like yesterday, theres yours, cocacola. Mine . The one youll call for here, ge, and verizon, but pinned at the top there, two standouts in the earnings category today. Caterpillar and mcdonalds, both with a sell earnings report, powering the market higher. Together 100 points, the two of those. Then coke is underperforming the market. Out with earnings this morning. Stock is down of the it was a mixed quarter. Remember, theres still a lot of noise around the results lately, because they are refranchising the bottlers, in the middle of the transition period. I spoke exclusively with the companys incoming ceo taking the job next week. This is what he said about announcements today around restructuring. They are saving another 800 million in cost cuts, but that means they cut 20 of the corporate staff. This is what he said about that in the vision there. By next year, well finished refranchising, a Smaller Company going from a high of 150,000 employees, transferred those operating employees to the bonding partners, and well be under 40,000 next year. Its painful. Well impact people in the corporate center, but we think the slimmer center reflencts th reality of the company. They are talking about how the company is in the middle of a transition, to the only spinning off the bottlers with the results in a lot to the people working at coke, but also the staff cuts coming out of corporate, a little more than a thousand, and never is easy to talk about. They are doing it to use savings to reinvest in whats working. Some of the growth categories like success in waters and the nonsparkling, as they say, the a growth profit machine because of these moves they are making. Credit swisse said, and bears who say, consumption in the country is declining for 12 years in a row, and the company is most exposed. Yes, it is growing some of the other portfolios like teas, waters, and noncarbonated drinks, but, ultimately, its going to have a growth problem if it wants to get back to growth rates that it used to have five, ten years ago. I often think they teach you in Business School how to grow a company, but rarely teach you how to turn it back to turn it around. Thats something you learn on the job, and thats a tough job to execute day one coming in here, trying to turn things around, cutting back to make it a its a Smaller Company with 40,000 employees, but thats, you know, the nature of the beast. A difference from 100,000 employees around the world, and thats the bold case on the bus, they are going to be able to continue to squeeze higher prices out of the smaller camps, which they are doing, and lead to a more profitable, leaner Company Without the costs of the doll bottling. As with retail, broadcasting, media, they are beholding to the customers whose tastes change dramatically. No, you know, fewer people drink the soda these days, Health Conscious for whatever reason, diabetic, whatever, and they are going more towards the healthy choices here. Companies played catchup in that regard. It doesnt help that you continue to have study after study, and just the latest one from the American Heart Association