Biggest number was online sales, addly, up 22 . Im seeing what youre doing here. Interesting there. Gaining after the bell moved higher as a result. Energy, big laggard, ironically, after the oil prices dropped, oil stocks went with it after opec extended Production Cuts another nine months, look where there may be opportunities in this particular market. Could this be opposite . Getting worse throughout the session, it feels like, with energy today. Yep. The stock that wont quit, amazon closing in at 1,000 mark per share, its at 996. A fund manager, why hes trimming positions. Fun fact, jeff bezos will be the richest in the world when amazon hits 1,000. Exceeding bill gatings at that point. Wow. Diesel pickups rigged to pass emissions tests, but shares hit, down roughly 2 on that story. We have the full story coming up in a little here. Tax reform seems to take a backseat to health care for the moment. House ways and means chair kevin brady joining us and whether he and the white house are moving closer on tax reform. Looking forward to talking to the mr. Chairman in a bit here. Starting with the record day for stocks. Joining our Closing Bell Exchange today, rob frost, who, oddly, works for frost and frost wealth management, at post nine with it us as well as New York Stock Exchange trader, and Rick Santelli from chicago as well. Kenny, this will be the sixth consecutive day the s p record territory, the Nasdaq Record territory, utilities close to a record now. Only one in negative territory is energy, buy the rumor, sell the news trade. Look, volumes are low. The vix down below 10 again, signaling complacency, but breaking up through 2400 and clear the sells were not there, it was in overdrive, right . We made this exaggerated move. 12 pointins s p, long weekend, w volume, moves exaggerated. Feels real . It feels real, but not like its got its not going to hit some resistance next week. I think when people come back to this desk again realizing where stocks are, theyll take profits and reallocate. What do you think of the moves . By the way, it is interesting to look at how poorly oil and the Energy Stocks reacted to this opec cut. Feels like the whole market is saying, we dont really see it there. What do you think . Amazing, isnt it . I mean, investors continue to shake off tweets and investigations and personality of our president , and they continue, i guess, to look at fundamentals, and fundamentally, the economy continues to strengthen. Its certainly not where we would like to be, but its not weakening, which is why investors continue to be bullish. Well, rick, i was going to say, i dont know if the personality of the president is playing into the better performance as of late, overseas, Approval Ratings popping on the back of that, perhaps bigger risk is when he comes back home. Yeah. You know, where do i begin . Approval ratings . You know what, if we benchmark Approval Ratings based on where they were the day before the election, that makes a lot more sense to me, but nobody does that. In terms of the coverage overseas, domestic coverage sells more newspapers, we know that, and when it comes to all the issues today with the cbo, if the cbo was money manager, i doubt theyd have any customers. Okay . It just amazes me, whether its what we read in the papers when the wrong on the biggest issues of the century thus far, yet still believe, or when its cbo. Listen, apolitical does not mean accurate, okay . Might both start with an a, but mean completely different things, and their track record is not good. To me, the best track record is something where you take it to the bank and get cash. Those are the markets. I think rob pretty much sum it up right. Thats what i love about rick. Never know where hes going to go. Thank you, rick. You know he gets there. Kenny, why do you think well see profit taking when this has been a market that just continues to and lets face it, a lot of the gains here we see in the averages are the result of some small group of Technology Stocks right now. We start happening a week and a half ago, how much the mood changes, down 370 points, one day, scratching heads, what happened between 4 00 monday night and 9 00 tuesday morning, right . That happened. Whether its a macro event, whether its another tweet, whether its a geopolitical event. It just doesnt feel solid enough up here at the moment. It doesnt feel like theres enough volume, like theres enough guts to it. Arent we, guys, are we undeniably in the middle of a bull market . You can see what you want what about how it feels and the stuff happening now, but its of, the economys expanding, jobless claims good, and the stock rally continues to pay. You know, if you call are you calli inin ining end of recessi the corner, or more that you see, you know, a correction in the market, which would be less severe for some reason, around the corner . At frost and frost, we dont think theres a recession around the corner. Its absolutely undeniable its a long bull market, but bull markets do not die because theyre overinflated. They die because of sickness. This economy is not sick. You cannot, however, argue the fact that equity marketings are pric pricey. Right. Right now, the s p 500 is 50 overvalues from where it was at the peak of the market in 2007. Now, in comparables, get this, right now, World Markets are 20 below the 2012 peak. 10 below, sorry, and 20 below the 2007 peak. What an amazing opportunity if you believe in buying low, right . If you buy global, yes. I think thats absolutely right. To your point, im not necessarily calling for the end of the bull market because i think hes absolutely right. The economy is doing better. As a trader, you know, i think more daytoday short term, whats happening today and tomorrow, and when i talk about the market backing off and feeling skiddish, im talking short term. Long term investor, the markets great. Its a huge opportunity outside the u. S. Just because, like you said, the u. S. Is a little bit overvalued. All right. How frustrating, by the way, as a trader, without the volatility. Right. Im always reminded of something jack said, you can make money and lose money on low volume. Doesnt matter the volume. Absolutely. Gentlemen, as always, thank you. Appreciate it very much. Treasury secretary testifying before the house ways and Means Committee yesterday. Heres what he had to say about tax reform and border adjustment tax. Chairman brady and i have been meeting almost every week since ive been in office. I think were working closely together. Discussed that theres some concerns we have on the border adjustment tax, but were looking forward to attention changes, chairman brady may look at that, but were working collaboratively with the objective to get comprehensive tax reform done. All right. Joining us right now, were always pleased to welcome chairman brady, the chairman of the house of ways and Means Committee. Thank you for the time, sir. Thank you for having me. You know, we get mixed signals on the border adjustment tax. You and speaker ryan believe this can be a a cornerstone of tax reform in the country, yet we hear from the secretary mnuchin and other members of the administration terrorist not. I dont mean to hit you guns ablazing right away, but bloomberg quoted members of your Committee Meeting with secretary mnuchin friday, and she said straight out he does not support it and the president does not support it, and lloyds question to mnuchin, is it on life support and youre pulling the plug on it . Mnuchin said yes. How do you square that with the Committee Hearings this week . Secretary mnuchin in my view is shooting straight with me. You know, its fair to raise concerns. These are big changes in how we tax for the first time. Were proposing e eququal taxat in the u. S. And American Companies compete on a level Playing Field around the world. It is a big change, so we are bringing to the table with the white house and senate sort of how we design this to address those valid concerns, but more importantly, we invite their ideas as well. How do you stop u. S. Companies from moving overseas . Not just manufacturing, research headquarters, all that goes with it, so were eager to hear ideas as well because this is the problem, a challenge that has to be solved. We bring our best idea to the table. They do as well. Congressman, your view that the border adjustment tax is the necessary heart of tax reform . You know, so i think it is critical. Mainly because it addresses a couple key things, levels the playi ining field here and abro for products, get us in an International Tax code into a far simpler one. It not just eliminates incentives to move overseas, but strong incentives to bring supply chains, pa tents, and intangibles back to the u. S. We are going bold for the long run, and thats why i think we should be able to do, have a very generous, very deliberate transition into it, and looking at design changes to address some of the issues. Yeah. This word transition hearing more from you and speaker ryan that maybe you dont hit the economy all at once with a border adjustment tax, but you phase in. Yeah. I mean, its very early in the process, obviously, but can you give us an idea what that looks like . Well, so not to a great degree because we want to have discussions with the president and senate as well, but, listen, weve been listening to those who deal in raw commodities like refinerie refineries, listening to retailers with finished products, Component Parts like automobiles because they all have a different take on this, but as we listen to their concerns, especially when does currency adjust and how much, fair concern, in my view, what we know is transition, timing, and design really can delay concerns in a positive way. Congressman, also curious, so secretary mnuchin seemed to indicate he believes the tax plan could pay for itself. Is that is that view expressed to you, and do you agree with that or think revenue has to be raised in other ways, like, for example, eliminating deductions or other things out there . You have to do both. In the house blueprint, the plan were bringing forward, it does balance within the budget, counting on good solid Economic Growth. We think thats important because, one, we look at the reagan reforms, looking at the others since then. The most growth to the greatest years comes when tax reform is very bold, when its balanced within the budget, when its permanent. When companies can count on these changes because we dont want them just to make a one or two year change here. We want them to feel comfortable bringing those supply chains home to america and making key investments here in the u. S. , so, certainly, in my view, in our businesses businesses tell us in the hearings, that really matters. I have to move on to health care, if i may. And get your response to the cbo scoring from yesterday, which, it showed, as we all know, just the headlines, themselves, the same pretty much the same number of people who would lose their coverage, insurance, and a lesser decline in the deficit over the temperature year period. What was your initial response to that, and what does that do to the chances of this thing passing, not only in the house again, but in the senate this time as well. Yes. So while theres debate about cbo score, what i know is this. This allows us to take the next step, deliver the bill to the senate so they continue to work on, lowering premiums, giving people more options, really getting control out of washington. Giving states a chance to design plans, that right for the regions and states as well. Lowering premiums, more people covered, but i say, look, dont stop there. The senate can continue to make improvements. What we do know does not work is what we got because premiums doubled for people in obamacare, coverage peaked. Its half of what was expected. Its going down. Clearly, transition that starts now when the senate, when we get the bill to the president , is critical. And, congressman, i have to move on to, actually, yet another area thats coming up as well, the debt ceiling. Again, secretary mnuchin want to clean raise that. Members of the House Freedom caucus want that in conjunction with debate over the budget. Whats your preference in moving forward at that point . How important is it to raise the debt ceiling and is the budget a part of the process . Critical we do it in a timely manner, sooner rather than later. I think it is critical that we show reassurance, you know, we continue to pay our debts and be that reliable economy around the world. I did think theres opportunity for making some of the budget reforms, we long talked about here, we have a president who is open to changing the way washington works and how we compile budgets and how we do spending in all Going Forward. I would like to see long term Social Security medicare, critical parts, not just of our safety net, but of our financial situation Going Forward. I really think those have to be serious conversations, whether its in this or that ceiling Going Forward. If were going to save the programs, solve them for the long term. Before you go, if i may, you know, we spoke with you, you know, a couple times very, very early days of the Trump Administration here, and, of course, there was a feeling of momentum there. Do you feel youre losing that right now in order to get this aggressive legislative agenda through for tax reform and Health Care Reform and Infrastructure Spending . You know, in the face of all the adversity the administration faces as a result of the investigation into the connection with russia . I mean, whats your feeling on that right now . So, you know, i dont think we are. Heres why. The beginning of an administration, little like spring training. Undefeated in every game. You have huge potential. So as you get into the season, work it through, and heres where we are at, tackling big issues, so is the president , health cares incredibly complex. Were making progress. This is what i know as well. Everyone seems committed to delivering tax reform this year, in my experience, with the white house and senate in the house, everyones laser focused on delivering bold reform in 2017. Mr. Chairman, good to see you, thank you, again, for the time, sir. Thank you, appreciate it. Kevin brady, chair of the house ways and Means Committee. Dow up 77 points, rally continues. We said intraday highs within moments of the open of the s p and nasdaq. Transports up over 100 points. Interestingly enough, look at russells today, they are completely sitting this one out. They really only just turned positive. They are up a point and a half. When we come back, the money manager whose tech fund outperformed its benchmark without owning apple. Oh. Huh. Best buy stocks surge after blowout earnings. Two leading analysts debate whether its too late to put the stock in the portfolio. Youre watching cnbc, first in business worldwide. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. To err is human. To anticipate is lexus. Experience the lexus rx with advanced safety standard. Experience amazing. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Welcome back. The tech heavy nasdaq on a historic run so far this year, and, today, hit another fresh intraday all time high. Two stocks pushing it higher are amazon and alphabet, both of them, by the way, approaching the 1,000 per share mark. Wow. Look at them, both almost exactly the same price right now. Thats because i think were showing well, no. Class a. Thats alphabet. Thats true. Im huh. Wow. Isnt that funny . Yeah. Joining us now, josh spencer, alphabet is a top holding, but the fund recently reduced positions in amazon. You kicking yourself on that one . A little bit. Amazons been a very good stock for us over the past couple of years. I did reduce the weight over the course of this year so far. Not that i dont still love the company. I do. But just, you know, thinking about our prospective returns and valuations. One thing we know about tech is its volatile and often makes sense to take money off the table when stocks are very strong. Yeah. Josh, do you prefer an environment where tech is more out of favor, and you can really apply, you know, your research or whatever, you know, your special sauce to finding Good Investments . What happens when it peoples like you look around and everythings moving up double digits here in six months. Well, its presenting a different set of challenges, i guess you could say. I think we remember that tech is volatile if we think back just as recently as the Fourth Quarter of last year, and, certainly, if we think back a year ago in the fears in the market around china at that point. It does present great buying opportunities. Markets like this, i think you have to be more cognizant of valuation levels and actually looking for trim opportunities and really focusing on the portfolio on the companies that the small number of companies that do still have great valuations and great prospects. Let me ask you this, when you make the when you trim the way you did on amazon, for example, or any other company, do you feel valuations . What do you expect to happen then . What do you think happens Going Forward here . Well, theres a lot of things that can happen. You kn