Selling off as donald trump moved closer to the presidency. It is a far different picture at this hour. We are trading all of it today with pete najarian, josh brown, joe terra nova, and courtney gibson, who is also with us today for the hour. Pete, ill ask you to give us your view on sort of where the market looks today, what you think people should be doing because thats the most central question. Well, the initial knee jerk, of course, was the sell. Were down 800 points, and everybody was in a frantic because of the fact that they didnt have protection in place. What do you do when you dont have protection in place . You sell. The opportunity there was if you did have protection, we talk about volatility for a very long time. If you had some form of protection, scott, you were one of those people that was actually able to buy. I wasnt trading last night, but this morning its been absolutely unbelievable day. We went from down 800 to up around 50. Very, very early in the session. I think its a Good Opportunity to take some off the table, and now actually as volatilities come down, i think its been a great opportunity to buy in. I bought the vxx this morning. Josh, i wonder what you do today. Goldman saks has a note that says Trump Victory raises uncertainty. The victory is a surprise. The path forward, though, is not all negative. He does cut his target to reflect a higher risk premium. Thats a big question. What do you do now . I think a couple of things. My first takeaway is be very careful about who you are listening to. If you were listening to people that told you to do outrageous things ahead of the election, i think what went on between 11 00 p. M. Last night and about 10 00 a. M. This morning is an abject lesson is how you can chop your own returns up by trying to play binary event whs when you are na professional and are not equipped to do the kind of things quite frankly highwire acts and acrobatics. The second thing is to say just because the market has rallied back 800 or 900 points, which is unbelievable, by the way, just because weve seen that in the dow, you should not take that as a profound shift in sentiment. A lot of what were seeing is people who got way carried away with protection. All unwinding at the same time. So you get this massive burst of buying, but a lot of it is mechanics, scott. Its not people who woke up and said im bullish again. This is great. I agree with the goldman note. I think this ebulance will subside, and we probably give back some of this im not going to call it a debt cap balance or whatever you want to call it. Again, are we talking about trading in ten minute increments or talking about a time frame of five days and lets see if im right or wrong . For most people the answer is absolutely not. Good advice. Steve. So from my standpoint, i had been pretty light in exposures coming into it. Its a key opportunity on monday to get back in with some. Hedge funds for the most part have taken down their exposure to the market dramatically. Their nets were down. Their short positions were up. I cant imagine that theyre going in whole hog here because these are knee jerk reactions. I dont think theres a person out there who is not surprised about whats happening in the market today. These are professionals. Theyre not rushing in. Some of the moves are truly outstanding. I doubled up my nbix biotech position earlier. I sold it today. Up 10 . How can you not . Some of the stocks that have ripped today from the getgo, whether its the pfizer, merck, or things that have just really moved so dramatically. Stunning. Right. The steel stocks you take u. S. Steel, up 15 . I would be tempted to short it. I dont think any of us here can actually call it. Im excited for it. For full disclosure, i voted for hillary kicking and screaming because i like my family. I didnt want to have to find another place to live. If you look forward going out, if approximate you can have the donald trump of the last couple of weeks, he surrounds himself with the right people. His policies are actually very progrowth. Im not talking about the wall. Forget about that. You are talking about taxes, infrastructure, spend. In the first he wont be the first president that will take the radical platform that he got people to vote for him on to not follow through with those, right . If you take those good policies, very progrowth, very proeconomy, and i think you can see an explosive market ahead of that. Thats where ill look, but im not buying here. Im still looking for values. The market is back to levels. I was uncomfortable with them before almost. Ill wait for it to come back. Courtney. Yes. Its interesting. I wish last night i could have picked up some names personally for my portfolio. Unfortunately, couldnt get in on those lows. I do like to buy on dips, as we know. What were seeing our clients doing at luke capital right now is pretty interesting. A lot of our larger Institutional Investors had already positioned their portfolios where he were this going to go anyway. Its one of those situations where you have an asset allocation. You have the securities that you think are going to do well, and youre holding them. What we did see today, which was very interesting on our desk, was with some of the stocks that have rallied, whether its infrastructure related names, whether it was some of the Steel Companies that people think are going to do better, whether it was some of the pharma names, a lot of our clients have price targets. Theyre large Institutional Investors. When it hits their target, theyre disciplined, and they sell. Were seeing a little bit of that, and some folks picking up on names that they think will do better in the future, whether its financials and the like. Joe, you got two and a half months. You got, what, two months. Forgot were already in november. Two months, and i think the right thing to do is not to Pay Attention to the markets. Steven and i talked about that yesterday. I think you want to talk specifically about asset classes. I think you want to talk about sectors. Im sorry to interrupt you for a second. Lets talk about whats on the screen. Tenyear note yield goes over 2 . How problematic is that . Listen, fixed income is going to be a popular conversation right now. One of the strategies that really over the last couple of weeks has been out there for the Institutional Investor is getting away from the bondlike proxies and moving into things like the financials. I believe from a capacity of looking back over the last four to five years, this is the moment for the Institutional Investor when it relates to financials. You now have all the tail winds behind you. Youre not moving a speed boat. Youre moving a big battleship. You want to make sure you have certainty, that you have conviction. You have that for the financials right now. Looking at sectors maybe even more so today, right . Even more so this morning. Theyre going to get inflation because of a big spend, and you have a fed rate hike perhaps. And additional potential revenue stream for financial institutions. Specifically the goldman sachs, the Morgan Stanleys, the Asset Managers as it relates to dodd frank legislation being paired back. Is this what pops the did the trump does a Trump Presidency pop the bond bubble . Yes, because what he is talking about with his policies are you know what he wants to do in terms of spending, you dont know what he wants to do or how he is going to meet it on the other side from the cost containment. Right . He hasnt been clear about that. His policies are inflationary as we know them now. I had been not related to trump because i didnt think he was going to win. I thought it would be close, but i had been looking for the bond market to trade through the 2 percent recall. Anybody who thought that the fed is not going to go in december is lunacy. Were eight minutes into the show and are have yet to Mention Health care, which is going to be noodles today. I did mention that. I said health care. Guys not looking at look at all of us. I got to tell you. This is what traders and investors are talking about today. What you have seen this morning on the biotech index is the biggest gap open of all time. Like since they have recorded data on these sectors. What you have seen in the xlv, the biggest gap open for that index and holding it going back to august 2015. I think the exhalation thats happening in this group right now is really noteworthy because this is where the growth at a reasonable price stock resides. You know what, in financials i want to go back to that really quick i got to on sectors. People need to actually separate the investment banks that you were talking about versus the asset owners that have a large amount of assets and alternatives. That carried interest piece is going to be an interesting, interesting discussion now that trump actually is in office and the question is is he really going to try to change the tax rules on carried interest . Yeah. Let me just jump to phil lebeau who has a news aeither will up in chicago for us. Scott, lets call it a part of General Motors because General Motors is cutting 2,000 hourly workers at two of its plants. One in lordstown, ohio. The other one in grand river in lansing, michigan. This is because they have too much supply, so theyre pulling back the third shift of production at both of those plants. In the case of lordstown, its because they make the chevy cruz there, and inventory is building up. Theyre pulling back production of that ship starting in the First Quarter. In grand river its the cadillac ats, the cts, as well as the chevy couple aerothat are built at that plant, and as a result of Bloated Inventories with those vehicles, theyre cutting the third shift there. Bottom line is this, scott. We will see more and more of this from automakers which are running most of their plants on three shifts, and we see auto sales plateau. Theyre going to cut that third shift because they dont want to build up inventories too much. In the case of General Motors, theyre going to be cutting the third shifts and laying off 2,000 workers permanently starting in the First Quarter of next year. Thanks. General motors shares ticking by 4. 5 . For more in the market, reaction to the election results. Lets bring in someone who makes a business in volatile trading. Doug is the ceo and cofounder of virtu financial. Joins us live from new york city. Good to see you. Good to see you, scott. Want to give us an idea of what last night was like . It was a long night. I didnt get a lot of sleep. That makes two of us. A lot of other people around here, i should say. Yes had our whole crew our global crew was in. We were making markets all evening. The great story was that the markets didnt break. They performed really well, as has been reported. Obviously the s p futures went limit down. They continue to trade. There was price discovery. There was a lot of trading. We traded about 5 million or 6 million times before the equity markets open, which is generally what we do in a full day. There was a lot of good news in the fact that the market actually performed very well. Wow. In all different asset classes, if you will. Currencies must have been big. Just giving what the peso had been doing over the last 24 hours. Absolutely. The volumes in the peso were two to three times the normal. The overnight volumes in currency on the cme were about five times what we typically see. The nikkei out in japan was active. They closed before the president elect could get up and make his concession or make his speech, if you will, and so as a result, the nikkei was down about 5 . It will be an interesting open in japan in about 12 hours. A lot of volatility. A lot of volume. The good news, as i said, is the market as a whole performed very, very well. I just want to remind our viewers, we are waiting for the president at the white house to make his first Public Comments after the trump win last night. Doug, i just tell you that just in case we have to jump in and interrupt you for the president. What you said at the top, seems to be the most important that the Market Structure worked, and it worked to a t. Yeah, absolutely. Obviously theres been a lot of cataloged events where theres been, you know, flash fractures and what not. There was an incredible amount of volume and volatility last night. You really have to applaud the Market Structure, the cme, the s p futures went limit down for a long time. They kept trading. Thats the important thing. People were able to have price discovery, liquidity gathered around that limit down price, and there was a bit of a bounce. As obviously weve seen today, a full recovery. The Market Structures worked very well. Im not sitting here defending the entire Market Structure, but we have to give it credit. Theres a lot of risk that was transferred last night. Very, very effectively. My firm was involved. We traded an awful lot last night, and thats our job to transfer risk between buyers and sellers. The global interconnected market worked exceptionally well last night. Doug, its joe. Lets talk about the regulatory policy and the changes that we may feel here. Obviously, Hillary Clinton was in support of a transaction tax on hfts of which you are market maker, not an hft. Lets be clear about that. Now do you feel comfort that that transaction tax will be removed and that secondarily do you believe the Investment Banking community reengages on proprietary trading,and how do they go about doing that . Human capital algarythmic problems. Obviously, its not part of trumps platform, so im very optimistic now that, you know it doesnt make a lot of sense, and i dont think it will be on the agenda. I think the point you made about regulation, i think, what the president elect has said is that he is in favor of sensible regulation. Whether that means dodd frank or more importantly the volcker rule gets rolled back and banks can become more proprietary traders, its difficult to say right now. I think really well see a less activist approach from washington in terms of regulating the markets, and i think ultimately that will be a good thing for the marketplace. We have seen a real lack of confidence and conviction. The volumes in the Third Quarter were extraordinarily low. The intraday volatility was extraordinarily low. Having the markets have that confidence and investors get back into the market to me is the most important result of this election. Doug, well make that the last word. Its good to talk to you today. Thank you for sticking with us. Du. Lets bring in ceo and legendary investor nelson peltz. Its good to talk to you this morning. Hey, scott. Same to you. Especially given the events of the last 24 hours, we just heard, and im not sure if you had a chance to hear it or not, a gracious speech by Hillary Clinton followed by what was certainly a gracious speech last night by the president elect. The market looked ugly last night. It has certainly shown a different picture today. The market seems to be applauding the way our democracy works even though sometimes its not pretty. Scott, thankfully the election is over. The market correction, as you said lasted about a nanosecond, and the pollsters were 0 for 2 should find new jobs. Most important, i think, that we all need, as hillary said and donald said, to come together in support of our new president. You know, donald isnt an ideolog ideologue, and i hope and i know he will he will bring this country back to the center. Scott, thats where we belong. Thats where this country works. From the center. You know, im involved with an Organization Called no labels. You can visit their website, which reaches across the aisle and bring everybody together and donald has now control of both houses, but i still believe that he will do everything he can to get the democrats to buy in and get this country working again. You know, he has to take the easy wins first, which is upgrading our infrastructure, which has been overdue for 20 years. That both candidates agree on that. They both agree on repatriating the corporate cash. Finally, finally lets bring it home. I think donald will get some Corporate Tax reform, which i think will actually help create more jobs. You know, im pleased with where both candidates spoke last night and today, and i am very positive about where were going to go from here on in. It was a rough election, but its behind us, and i think were all going to come together. What do you make, nelson, of the way that the market reacted so violently last night and the way that it was able to recover today . What is the message in that, if you would, for the people who are watching, the longerterm investors who are trying to decide what to do, they want and are in need of advice from experienced folks like yourself. What do you tell them on a day like this given what the last 24 hours have looked like on wall street . You know, scott, were very longterm, so we pay no attention to these shortterm swings, but there were short sellers, there were long buyers all the time in these markets. These shortterm swings are overcorrecting in both ways, but here the market is up nicely today. People feeling good about the future. I think they feel that everybody is hopefully going to get behind our new president. I think thats going to happen. You know, it was a nasty election, but its over. Now were all going to act like americans, get back to making this country great again. Sorry to borrow that phrase, but i really mean it. I think thats whats going to happen. Well, knowing mr. Trump, he might have trademarked that. I did. I did. All of a sudden they woke up and said, you know, dividends arent really so bad anymore, and these Big Companies arent so bad anymore because after labor day if you were paying a dividend, your stock price got knocked to hell, but right now, you know, we corrected september pretty quickly. The market has come back. I think i think this election scared people for a second, but now we understand weve got a guy there who wants to get rid of this suffocating bureaucracy and all