Case got it wrong. Nobody expected things to turn this thing this fast. The trump rally trademark is still available. Nobody patented that, copyrighted that, its still available. Arent you proud of the fact this show two days before the election, the day before the election, asked the questions over and over, if he wins, they control all houses of government, you at minimum get tax reform and less regulation, why would that be bad for the stock market . That question was asked over and over again on this show. I had to be called a jackass on twitter by a supposed colleague because i disagreed that the market would go down 1,000 points. By definition when this Insane Person with his finger on the button of the nuclear code, when he was going to be elected. We put up with a lot. We pit up with a lot to. There have been a lot of speculation about where this would all go. Lets juxtapose the wisdom of the American Public versus the elitist intellectual ruling class that permeates this entire island. Think about that. Think about the difference. The Republican Party at this point is supposed to be fractured and never able to come back. The down ballot on the Republican Party was supposed to be decimated. Im not disagreeing. Look what happened. The only people that lost, kelly ayotte, the only people that lost were people not backing him. Far fewer losses in the house. The senate is still firmly in hand. The Supreme Court now it sounds like i was calm the first couple days. Just thinking back on you should be happy. I am happy. But no one will hold theyre still at it. Theyre still a it. Rachel mad do ydow, theyre sti it. Its hard to suggest that the country is still frankly divided. It is. Okay. The thats a different point. Which party which party is in is in smoking, steaming rubber . No question. And who are committing violence in the streets in the wake of the election. Nobody predicted any of this. Still writing editorials for your newspaper. Still writing op seds every da for your newspaper. We agree. We agree. There is still a dividedbezo i dont need to say it. Mike wolf started writing it. The smug breathe. Here are the other big stories were watching today. Disney earnings and revenues falling short of estimates. Among the reasons, lower adverb t advertising losses. The stock initially fell on the news, but then rebounded after igers upbeat comments. Well have a report coming up. Couple of retail reports to tell you about. Nordstrom sales topping estimates helped by its anniversary sale. Gross margins rising more than expected. Michael kors offering downbeat holiday guidance citing a decline in mall traffic. In its most recent quarter, kors beat on the bottom line, revenue came in line with estimates. That stock is off by 4 in extended hours trading. Later on well get Third Quarter results from jcpenney. That expected at 7 30 a. M. Eastern time. On todays economic calendar, Federal Reserve vice chair Stanley Fischer will speak on the economy at 8 30 a. M. Eastern time. The first read on november Consumer Sentiment at 10 00. George soros and moveon. Org inspired demonstrations and financed demonstrations do not make for a completely divided country, andrew, just because of what you see check out the headline no. No im not going to debate this issue, because youre right. The republicans clearly own and control now all of washington, d. C. Thats not my point. Im just saying if you look at the popular vote, im saying there is a theres still a divided country. What about the popular vote . It was higher cnn is projecting trump will win the popular vote now. When they finish counting . Yes. Holy smokes. You were aware of that tidbit . Im suggesting to you even if whether you think that he won the popular vote or she won the popular vote, it is that piece in this country that was so close there is still a divided country. So like all elections, some people wanted clinton, some people wanted trump. Its always like that. Was a guy who got elected who lost the popular vote. Thats not unusual. In terms of the Electoral College it wasnt that close, compared to 380 to 100 from the same intelligence. Were not on the other side of the point. Lets look at what was widely predicted with copper by all the experts. The dow, which hit an alltime high yesterday, look at the copper chart. First, heres what Stanley Druckenmiller said on squawk box yesterday. Dr. Copper, have you seen him lately . Its been rising i havent looked in the last couple of days. Hes up 4 today. Whoa. Interest rates have been at stupid levels. Theyve been manipulated by Central Banks. Theyve been held down. Like a beach ball held underwater. I think Interest Rate also go up. I think theyll go up a lot. I think theyll go up a lot because, a, theyre just at insane levels. B, im optimistic about Economic Growth. Lets look at copper, there we go. Again, it was up almost 6 at one point. Up 5. 5 . I think its six straight days. You look where we are, 215 on the tenyear. Yesterday you made the point, michelle, the very important point, its happening as the bond market is absolutely selling. As Interest Rates are surging, the market is hitting new highs. In the final decoupling of stocks and bonds, which you needed to signal that maybe the economic malaise might be easing or maybe the dawn is breaking to some extent. Well see. More on copper still to come. Well talk to the global head of commodities from the S P Dow Jones at the bottom of the hour. I think im most excited, mish she michelle, that my kids, millennials, where the government can work in concert with the private sector. They might see what i saw in the 80s when you get regulation out of the way, lower taxes. Dent make me cry, joe. Its not eight years of redistribution, but its actually trying to grease the skids for the private sector. We may see that happen. Its amazing how quickly the market starts moving on that. Well see whether it continues. There will be a lot of impediments to it. You see on twitter the number of assassination tweets . Hundreds. About donald trump . Yeah. Exactly. Thats what i mean about the you will never win with the left. Ever. I thought it was his supporters that were going to cause violence. Thats the thrust of the lead story. For more on the markets and the trump rally, lets bring in David Leibovitz and joseph lavorgne. Joe, the stock market, the bond market, the copper market, all acting like the Economic Future is much brighter now in the wake of this election. Do you agree . Absolutely. Youre looking at did you say absolutely . Absolutely. As joe was saying, youre possibly unshackling a lot of businesses where sentiment has been poor, if you look at Business Confidence in this cycle. Where you could really harness sort of the innovation creativity and dine ovism and te steepening of the yield curve and how thats a good predictor of growth. Ive been a good predictor on growth, ive been proven right, but however my forecasts are in the midst of changing. We have been growing at 1. 5 , we could be growing at 3 , 4 . We could get faster growth. David, do you agree . I do. Weve been talking about passing the baton from monetary potcy and stimulus which has not worked, to fiscal stimulus. The risk is to the upside. You will have lower taxes, an increase in infrastructure spending, how we pay for it is another issue, but this is very pro growth. Tell me how as a stock investor you deal with Interest Rates rising. Right now stock market rates are rising even though Interest Rates are rising. Can that go on . My good friend larry kudlow said a year ago the only way the fed can get out and not destabilize markets is if real rates rise and the fed follows the forwards. Thats what were seeing. When the market does it for them. Yeah. The markets are reacting on growth. If breakeven inflation rates rise, the fed follows higher real rates in anticipation of growth. You are not looking at it disintegrate with higher yields. Weve seen the correlation in changes between rates has been positive. Thats the point joe is making, why are rates rising . The Growth Outlook looks better. Which joe . This joe. This joe. I wore the glasses for you today. You didnt say anything. But i think the risk, you hear so many people talking about the equity risk premium, what happens if that premium gets compressed, right now its around 4 . It still looks attractive and it looks like theres opportunities. I drill down at the individual level. For years i said why on earth would you buy a tenyear yielding a little more than 1 when you can buy a stock yielding maybe double or triple that and perhaps you get underlying asset appreciation as well. Now that has just shifted, right . The tenyear yield is higher than the s p 500 at this point. Now the calculus on individual stocks starts to change. To me, i get worried about stocks that were bubblicioububb. Thats what youve seen the last couple of days a rotation out of the stocks that people thought could grow in a soft environment, f. A. N. G. , if you will, the market brought that out in anticipation of more growth. Financials are a high beta on the economy. If you think the economy is going tobetter, financials should do better as well. We should remind everybody, f. A. N. G. Is facebook, apple, netflix and google. Everybody wanted low volatility, defensive, high dividend yield. That investment thesis is coming under pressure. For us, valuations are our guide. Cyclicals still look cheap relative to defensive. I dont know why you wouldnt follow what we see playing out in the markets. The analysts in those sectors . How long have they been analysts . Have they been analysts in a risi rising Interest Rate environment . Their whole world is potentially i havent been an anchor at cnbc at a time when Interest Rates were going up. We could be going into a whole new world for a lot of people. It also depends on what this fed does. Be careful what you wish for and the fed stan is right, rates are been stupidly low for a long type. We had a bond bubble, half of sovereign bond markets were trading at negative yields. Which is insane. How does the fed respond . Do they still go slowly. Yellen said she wants to run the economy out. Lets see if she does that and not short circuit the move. Guys, thank you very much. Thank you. Highlights from yesterday we want to show you. Pershing square ceo bill ackman making comments yesterday. His investment in valiant has been a huge drag in pershings performance. Valiants been down 80 this year. We have had one problem. What is that problem . The problem is valiant pharmaceuticals, the mistake is for the first time we bought a company that had an incredibly successful track record, an activist on the board of directors, a ceo we thought had done an excellent job and we got our head ripped off. Ackman said Michael Pearson went crazy and that changing the companys name may boost the earnings. He also reacted to trumps win. I woke up extremely bullish on trump, believe it or not. My thinking is as follows, United States is the greatest business in the world. Its been undermanaged for a long period of time. We now have a businessman in the president s as the president , and he has power. Because republicans control congress, republicans control the senate, hes going to launch a major infrastructure program. He will take Corporate Taxes down to a sensible level and get rid of loopholes. Hes going to get a lot done. Also spoke to Lloyd Blankfein about president elect donald trump and the rally in stocks. His policies are market supported. Now, im not saying its good or bad. You would have to draw a different set of conclusions depending on your attitude about everything else. Just as far as asset prices in the market is concerned, in the nearterm, how can they not be supportive. More highlights this morning from the conference still to come. In the next half hour, well show you Shari Redstone talking for the first time about viacom and cbs. Well show you the first Public Comments ever made about that tieup. Poor lloyd, still so shellshocked from the levin interrogation from a few years back. Hes even afraid to say the private sector you remember that . Lloyd, would like to. If he does, someone will say, my god, youre pro wall street. Oh, no maybe i am. But im not. But i am. But if Elizabeth Warren is watching, im not. One thing we did talk about was donald trump ran images of lloyd in a very negative ad that was about him and his connection to Hillary Clinton. Well see you werent here yesterday. He has own reasons. You werent here yesterday. Theres the candidate, and the person that actually has already won. Well see what happens. The first day i landed in greece back in 2010 on the day of the crisis, huge poster, theres Lloyd Blankfein. Ceo jack rivkin died. He was a ceo at altegris. He had been at a lot of Great Companies on the street, including lehman brothers. He was on a lot. During his long career, i think well go over some of these. He was in the investment industry. And canadian singer and songwriter Leonard Cohen has died. He was known for his poetic and lyrical music including hallelujah. He was inducted into the rock n roll hall of fame in 2008. He was 82. I was trying to figure out how old jack was. People are always older than i think they are. Well miss having him on. Time is always moving so quickly. When we return, reaction to disneys earning miss. Well show you what will happen with the stock after some comments that were fascinating from ceo bob iger who also talked about the health of espn. Squak returns with that in a moment. President obama will honor our nations veterans today. He will pay tribute by laying a floral wreath at the tomb of the unknowns. Its an annual observance at Arlington National cemetery. He will make some formal remarks thanking veterans as well. We thank them all as well. Disney reporting earnings and revenue that missed wall street expectations hit by lower Advertising Sales and subscriber losses at espn. Ceo bob iger spoke to julia about it. Our outlook on espn is positive. You are looking at a category Live Television sports that is generally very healthy. It adapts very well to mobile platforms. Thats where were moving espn. We feel good about espn. Were dealing with nearterm issues on the sub side, eyes wide open on that. Not trying to hide anything. We think longterm prospects for espn are fine. The stock fell initially on those earnings reports, but turned around after igers comments. Joining us to break it down is steven nicholas. Help us walk through your head line, if you will. Our view is that this is a tale of two companies. You have the theme parks, the Consumer Products businesses, which have been running as well as anyone can imagine. The studio is number one by a far margin, that drives cp, theme parks, concerns about zika in florida are not showing up. And on the other side you have the cable iside of the business. You have challenges around espn in particular. Espn is the highest sub channel they have, theyre running that and its a challenge. Whats your price target on the company . I think around 100. So 96 not bad, but still a buy for you. Hold rated stock right now. Has been since june or july. The comments that bob made which did seem to lift the stock a bit, theyre not lifting in your mind . You know, i think what the whole company did yesterday was very good. They reset expectations for 2017. This is not a company that gives a tremendous amount of guidance. They gave more granual directional guidance. That being said, the challenge around subscribers are not going to erode. The larger debate is all of these vmps being launched, will they get new subs or people trading down from an existing service to one of these. Whats the next thing youre looking for . From our perspective, probably some level of the subs of espn not going positive, the other thing is is there a larger path to direct to consumer. The hard thing with these fully would you like to see them fully acquire bamtech . Yeah. Bamtech is the business behind major league baseball, this is the overthetop technology. Yeah. Also works wi s wits with hb. Not necessary. Could they ever take that bamtech business and turn themselves into a netflix . Theying a great tremendous more rights than they have the broadcast capacity to put out there. So theyve done a lot of using that channel to have all the rights that they are not currently airing to put on that channel. That being said, theres a limited number of people. Over time what espn will be is a much higher priced product. Since we asked the question of just about everybody, is there any trump implication, if you will, for disney in your mind . Besides broad, just general economic not really. In my space, the time warner at t one is in the cross hairs. You didnt see iger the one thing he wants from a Trump Administration that was all over the wires yesterday . That was all over, about the lower Corporate Taxes. And at t, we talked about that yesterday in reference to the candidate versus the way the guy actually governs. Im sure hell look at the rulings of the s. E. C. , people will talk to him about vertical integration, how it benefits and doesnt benefit certain people, and im sure the rhetoric he used when campaigning will change. Coming up, well talk to the global head of commodities of S P Dow Jones. Instead if getting caught up with the crowd, the Investment Manager