Transcripts For CNBC Closing Bell 20171124

On this black friday, were still here at post nine. Im Carl Quintanilla with melissa lee. Dow up 15 points a holidayshortened session today. Markets are going to close in an hours time and eventually we will get to kelly evans and bill evans for closing bell. All eyes on retailers as it is black friday. We saw strength in macys in particular and some curious weakness in shares of target which have been the real standout laggard, at least in the retail space. A lot going on, whether its retail, black friday or oil, by the way, which got close to 59 earlier and right now 58. 83. Busy week next week packed with powells confirmation, yellen testimony and then that opec meeting and even more reports today about a potential framework between at least russia and opec. Right, and you were mentioning some of the alltime highs in todays session, even though its quiet. The alltime highs are in fact notable. Amazon really being helped, of course, by black fridays strength here. Facebook is also an outperformer here as well as a new high up 1 in todays session it really gets to as we head into year end and head into this period of seasonality. Will Technology Continue to be the stalwart performers. Theres a week to go in the month of november. Dow and s p on track for the eighth consecutive month up. We had one month that didnt quite get not green, and that sort of ruined that streak as for december, guys, the average gain for the markets this decade in december is about 1. 4 , five years have been up and two years down, 2014 and 2015 so seasonally things have been working question eel see if that continues given the mood out of black friday well see. Well see if m a picks up had the report on reuters saying broadcom is interested in raising the offer. Weve seen broadcom be an outperformer in todays session. I think were back lets get over to kell evans and Bill Griffith here on the floor of the New York Stock Exchange my momma told me you better shop around hi, everybody and welcome to closing bell. That was really a black friday for us. And what better way to start black friday than with going to black. Thats how that worked for us. Thanks, carl and Melissa Kelly evans here at the New York Stock Exchange. And im Bill Griffith yes, this is already the last hour of trading on this holidayshortened day. Record highs for the s p and nasdaq today the dow is flirting with the record high. Weve got a debate on whether those record breaking days will continue into year end or if its time to take some money off the table before new years eve. And an Online Retail rush already. Many brick and Mortar Stores are seeing a pretty big turnout today. Well tell you who many so of the winners and lose remembers and take you out to a luxury mall out in michigan and see what the read is on that consumer. Even apple has its black friday deal. Well tell you what it is and whether it can be an iphone x christmas which tim cook is hoping for we begin with the black friday boom as Retail Stocks rally on deep discounts attracting shoppers to the mall today macys ceo telling us cnbc that the company is in good shape this Holiday Season. Were blessed right now with cold weather, so in the northern part of the country and certainly here in the northeast, the traffic in our stores is actually slightly better than last year. Who else but to Courtney Reagan we go for more on the black friday sales how is it looking, security . Hi, bill. You know, its my favorite date of the whole year. Actually macys is on track to sell a million coats, sweaters and fleeces, but the most dedicated shoppers hit the stores last night. Those were for the big door buster deals that happened hat the big box players. They go home and they rest and they come back out in the morning when the stores open for the first time and now youve got a lot of leisure shoppers here, but ill tell you the traffic is definitely picking up at this mall in woodbridge, new jersey the mall of america was closed on thanksgiving day again this year eddie rumor from key bank thinks that the traffic might be a little bit on the light side now, if im jumpinging by the shopping bags im seeing at this mall, i would say that l brands pink is the most Popular Store actually fbr Susan Anderson is seeing the same thing in virginia, along with popularity at American Eagle and lululemon. Now adobe just out with new online Sales Numbers thanksgiving day sales up more than 18 boston over last year. That same cadence, 18 plus growth again, on this black friday and thats only until 10 00 a. M. So we have many, many more hours to go and because of the shift online its a little bit harder to tell whats going on. You cant really tell the full picture here just by look at the bags, but a lot of the shoppers that we spoke to are sticking with the stores. Im going to look at websites but i think ill get most of my shopping done in stores. Sales are bert and nice to see whats on sale. Its more fun to be there in person and buy everything and see it and try it on. I like to see what im getting and see if it fits me properly rather than getting it online so catch point is helping us monitor website performance. Lowes is actually having some trouble. Its been this way since about 9 00 a. M the company issuing a statement to us saying they are working on it they have a lot of traffic because of black friday, but they will work on it diligently, and h m actually had an outage on its wednesday identity for about an hour from 5 30 to 6 30 p. M. And then again this morning at 4 30 a. M. And it seems to have been fixed. Bill and kelly, back over to you. You know they are screaming in the back office courtney, thanks very much. Like they are in other places, too. Courtney reagan for us. Big box retailer target fell last week after its guidance suggested the Holiday Quarter may not be as strong as the holiday hoped. Morgan brennan joined us from one of the busiest locations on how they are fathering today morgan. Hey, kelly, thats right. So since the store reopened here in jersey city this morning at 6 00 a. M. , ill tell you, its been a pretty steady kind of moderate stream of foot traffic here it kind of feels like a busy weekend today. Though in the last hour or two its really kind of picked up. Now, a lot of the folks weve spoken to here say that they have come in store to snag some of those deals that maybe necessarily arent available for them shopping from their couch so particularly for some of the coveted hightech products like apple devices and some of the most deeply discounted tvs and that being said, target is offering more deals online this year to better compete with other big box retailers like walmart, and it says that that is actually bringing shoppers into the store. We actually saw three times the amount of orders that were placed online to pick up in stores that we saw all day last year in thanksgiving, so real exciting to see that so a lot is hinging on this Holiday Season for target. Shares of the stock did tumble last week on cautious Current Quarter guidance which really kind of disappointed wall street investors. Our stock is now down about 20 so far this year, but target also says that about 80 of online fulfill cement happening through its brick and mortar locations. Stores like this one, and analysts are calling that really a major logistical shift, and one of the biggest trends to watch this Holiday Season, so with those instore pickup metrix out, that really is a part of that fulfillment picture, and it makes it all the more noteworthy on a day like today. Back over to you. All right, morgan thank you. Happy shopping see you later. So reports out already that Online Shoppers spent around 1. 5 billion yesterday, online, and they have already spent 640 million so far today we need one of those tote boards back here. I agree. Right. And we talked about that the other day, so if consumers are shopping mostly online, then does black friday still matter brick and mortarwise . Lets bring in simeon segal, an analyst and Brian Anderson with oppenheimer and liz dunn founder and ceo of proforma. Simeon, black friday, i was going to ask you the other way i wonder if cyber monday matters or if people are coming back to black friday, online, in stores or what have you if its still the big day. Is it still the big day . I think every day becomes a big day and thats what the headlines are, and they are very much a functionof this channel is it online, in stores, amazon, somewhere else, so theres a lot of verses that are going on and a lot of battles between both retailers with themselves and with other companies i think right now, listen, a lot of this is a traditional and a lot section appearance and if youre willing to brave the store on black friday its more of a fun shop than a functional shop thats not going to change, so what we saw with courtney, everyone was smiling theres more people smiling in stores and fewer people shopping. And, list, you think black friday is starting to see a little bit of a resurgence here, why . I do think black friday is a little bit theres a little bit more excitement around it this year. It seems like thats driven by younger consumers who are looking at this as a bit of an event. Get out into the stores and kind of experience shopping i do think that its going to be a really condensed opportunity for brick and mortar retailers to capitalize on this traffic. I dont think well see sustained traffic throughout the Holiday Season but i do think its a very important time, and to your earlier point i dont think cyber monday is as important as it once was because were constantly connected we can shop from anywhere. I can walk out of here and buy something two minutes after i get off screen so i dont need to wait until that moment when im in front of my computer on monday. Brian, it feels like the distinction between online and in store is not so great you know, theres a lot of people both to the initiatives we were talking about earlier, but you dont think black friday is all that important anymore, why . Well, look, i totally agree and agree with my colleagues i think black fridays shift, maybe were seeing this year a bit of a novelty with the younger consumer which is exciting, and even if you look at how the retailers go to market, weve been talking about black friday promotions for the last two weeks which to mesa big, big positive because going back historically a lot of times retailers ran into a lot of problems as the promotions were so targeted to one day now they are spreading those out over multiple ways, if not multiple weeks that significantly limits the margin risk in these in these promotions so i think thats a positive, and i agree, too, on the idea online. Cyber monday was popular because thats when people went back to their offices and had a computer that they could shop online. Now we can shop online any time so i think thats diminished in significance as well. Which survey of the three, before we go, how strong do you think this shopping season will be simeon, you first . I think the shopping season will be very strong. Just to add on to brians point. Were talking about black friday and cyber monday becoming black november and december. Important to keep in mind, q4, the entirety of this period is actually diminishing as a percent of the total year. Whether thats because we have prime day over the summer, its stretched out just beyond the holiday period so thats northern to keep in mind it will continue to be strong and shift is happening and spread out throughout the year. Liz, how strong liz, go ahead. I think it will be a strong holiday. The theres lots to buy. The consumer is in great shape and retailers will certainly be battling it out, but inventories are in good shape, and if they can get them into the store to buy tech products, appliances, you know, connected home products, i think that it will be a very strong holiday, both online and offline brian well, im encouraged here i think weve seen a bit of a pickup in Consumer Spending over the last couple of months. You know, some of that has been hurricanerelated, but nonetheless, i think the consumer is getting stronger i think that that sets us well into the holidays. Before coming to the studio here in california, i stopped by a couple of stores, best buy was really crowded so i think thats a good sign, so im optimistic we should have a decent holiday here. All right, folks. Thank you all. Happy black friday. Thank you. Happy black friday. Lets get to our Closing Bell Exchange where all of the major averages are floating with alltime highs larry glazer is with us, steve grasso from Stewart Frankel is in the thick of things at the New York Stock Exchange and Rick Santelli at the cme in chicago steve, were kind of picking up where we left off earlier this week. Thats right, and you have the big round number, bill at 2600 in the s p cash once the large numbers act as a magnet once you get back on that momentum wheel, they are usually good for another 1 to 2 overshoot there. So you can see the market at 26 and 25 or 2650 sooner rather than later, and is it going to be helped by laggards in the retail space, in the energy space and we still see fang performing as well as it has over recent months last year. Layer, i wonder if the outperformer on black friday, you know, is the google which benefits from all the surge and facebook which benefits from instagram and everybody sharing their purchases or excitement or the fact that maybe they are in the malls if they are, and what to you is the strength of the market as we look at the dow 58 right now . Look, as we look out, we may start to see a rotation here out of some of the higher multiple growth names as investors start to focus on tax reform if you get tax reform, you may start to see higher Interest Rates which would create impressions of multiples and today theres great action in the value names and retail names. The only thing being more fun on friday is looking at Retail Stocks on black friday and thats what were doing here again, that theme is driven largely by technical considerations and some Short Covering and the end of the tax law selling as you look into the new year and that will spin into a broader segment of value and theres a lot of opportunities to rotate portfolios out of high multiples into low multiple value names that have been given up for dead at the end of the year. Rick, what have you been watching this year, the continued flattening of the yield curve, the dollar index continues and comfortably in that 92 range right now. What are you watching right now. The latter by far the Foreign Exchange market. Yeah. And it is dollar weakness, bill, but really the proactive weight lift they are is the strength in the euro euros at the highest level since around the 22nd and 23rd of october. The dollar index is at the lowest levels since around the 25th of september for both so basically around nineweek extremes, and the reason i find this so fascinating is its because its been unanswered in the fixed income markets while this week weve seen a big drop in the dollar and euro, the boon, the shots, short end, long end, hasnt moved much, our Interest Rates have only slipped had a minor amount, and all this while the dollar is getting close to 10 down on the year, so i think its significant. You know, i like hearing larry and steve talk about how great this Holiday Shopping is you know, the markets care about the macro. They dont care if it comes on a computer or on the bricks and mortar worried about the big macro numbers and to that end ill be very curious as this shopping season looks better and better to see if it gives the dollar any kick at all. Sure. I mean, sorry to jump in here, but this is all about we have tax policy coming down the pike are they going to get it done next week. We have opec coming down the pike will they extend the cuts, so you have two major issues that are on the macro front for the markets. If those two things get a passing grade, this market continues to have that helium lift to it. All right have to go a late start so we move on thank you all. Have a good weekend. You, foo. Appreciate it meanwhile, apple hitting the airwaves and the internet yesterday with this new commercial for the iphone x. The spot may indicate just how vital this new phone is to apples christmas performance. More on that story coming up. And we want to hear from you. Reach us to us on twitter, facebook or email tell us your thoughts hand well read some of yr outsouthgh since its a friday at the very end of the show well be right back. Retailers everywhere are pushing their big black friday deals today. Even apple is getting in on the action apple is giving customers the chance to receive up to 150 gift card with certain purchases on their website with only 31 days left until christmas is it going to be an iphone x christmas joining us to discuss, ed lee, of course, managing editor at recode and max wulolfe at th phoenix group. Welcome. Im intrigued that apple has this that they even have any promo at all like they need to remind people that they exist. On certain items, if you buy something, well give you a gift card and the biggest item is ibats. If its an iphone its 50 and if its a watch youll get 10 or 20, its the smallest amount clearly ipad is always pushing, one of the weird inbetween devices. Were certainly moving more towards a mobile device world so it stands to reason, but, you know, its its a first indication of here is an item you really want to try to sell more of, but, again, they are not they are not in the habit of doing any kind of real discounts way a lot of other retailers do the way amazon does with its hardware so its still in keeping and a little bit different. Max, how important is it that the iphone i like to call it the x because thats what it looks like, does well this season for apple it will be a huge part because the 8 is a little bit of a dud and the 8 plus is getting some action and love maybe because theres some back order issues on the 10 or the x if you prefer that nomenclature but the x stole the show so that makes life harder for the 8 so we expect 8 to have a shorter success tale than the 6 or 7 and they need to this sign they sold 212 million in 201617 and they need to sell 232 million phones and they need many to be the examine and thats how they get the average selling price up and if they dont do that they dont get the margins to push into the shares the way they have been for the last month or two. Max, you know, they have had to delay the iphone 10 they now were delaying the home pod or whatever they are calling that thing are we seeing a little fraying at edges here productionwise for apple . Well, what were seeing something that definitely cause for some concern i think they deliver to a large extent here on the 10. The issue on home is they are a little bit late to it so its sort of interesting. The worrisome part is the super good screen or sort of super hot phone, samsung got into it, certainly not the first entry into the home space and they are about to get to vr but not first. They need to hit the cover off the ball in two out of the three of the things to continue to be the Biggest Company in the world by market company, so we think they are doing well. Think x is going to be a winner and we need to see whats going to be to be around the corner. Otherwise well see weakness in the 1 and wont know what to look for to stay excited for the company . Is it that bad for the 8 . It hasnt been selling as well as they hoped that means its better for the 8 plus or x. The x is a self gift and the speaker they missed out on the Holiday Quarter, thats what they missed as a gift. A curiosity device, maybe ill get it for my parents or for the home, that kind of thing so thats a miss on their end when it comes out in january and february, thats when they will make the sales, and that speaker is important, not just because its another home device but thats sort of the entryway into voice more so the way the echo has been. Serious technology hasnt been shown off the proper way and they are hoping with the speaker that will be a way into it and thats the future for computing. We went from desktop to mobile and voice will be the next sort of step up in terms of how you interact with computers. How about this commercial al that they ran on the iphone x. I guess im we were having the whole discussion over the thanksgiving day table where everyone is calling it the iphone x. Technically its the 10 and they are like what are you talking about . They have been use numerals for all the other ones and this one youre going with the x, and were calling it a so. Just be consistent go one way or the other. Famously 1984 they came out with that commercial, you know, got everybody rah, rah time and now they are running a commercial here for this iphone here. Thats funny that they are running commercials anyway, right, because if you want an iphone x you dont need a commercial. The color background and the outlined characters who had the very i mean, Television Advertising has long been a part of the way they promote. What were you saying, max also for the ear buds, the wireless head phones, and theres a huge margin on those, and those have been sell well, and theres some belief those up there not upgrading on the phones are upgrading on the wireless head phones and thats an important margin and top line revenue driver for the company as well. All right well see what happens here. Thanks, guys. Appreciate you stopping by sure. Some of our favorite gets, ed lee and max wolfe. With less than 35 minutes to go until the close, dow up 55 points today and were looking at records depending on how we close. The nasdaq was at a record high on wednesday so thats up 19 putting it at another Historical Marker and the s p up 6 and the russell up just less than a point. The price is in now for the new tesla electric trucks. Well tell you how much youll need to pony up to join the musk convoy coming up opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Casual fridays at Buckingham Palace . Alright, off you go. Surprising. Whats not surprising . How much money nathan saved by switching to geico. Fifteen minutes could save you fifteen percent or more. [ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Welcome back Teva Pharmaceuticals reportingly planning major layoffs in the u. S. And israel. They are looking to cut to to 25 of its workforce in israel and 10 here in the u. S. Teva declined to comment and shares today are responding with a very slight positive, up about 1 time now for a cnbc news up date lets get over to Contessa Brewer contessa hi there, kelly heres whats happening at this hour a developing story out of the Central London where police are responding to an incident at the citys Oxford Circus subway station. Reportedly there have been shots fired. Armed police are on the scene. The station is being evacuated as we speak. Well have more details as they come into the newsroom here. Prosecutors say the homemade bombs targeting barack obama and Texas Governor greg abbott could have maimed the two leaders. Police arrested 46yearold texan julia popp in connection with the scheme. Accused of trying to accepted the devices through the mile wildlife restrictions are adding restrictions to hunting season after last years unusually harsh winter and another reason to start your day with at least one cup of joe researchers in the United Kingdom find coffee lowers the risk of liver disease, diabetes, dementia and some cancers. People who regularly drink three to four cups a day saw the Biggest Health benefits. I cannot go wait and talk to my doctor been encouraging me to cut back on the coffee. Hey, hey, doc, how about that one. Thats the cnbc news update. Kelly, bill, back to you. Im fascinated that that comes out of the land of tea drinkers thats amazing. Right. How is that a plus . Thank you, contessa see you later. Okay. Weve got now just a reminder this as holidayshortened day. Less than 30 minutes left in this trading session right now with the dow up 55 points. With me is jonathan corpina, and weve had a positive day here, a positive week. Are we looking at, you know and were hearing anecdotally sales are pretty good for black friday i think so. Historically over time if you look what happens towards the end of the year, end of the quarters, weve got the santa claus rally. Didnt experience this as much last year but i think well feel that this year based on the momentum in the market i think overall Investor Sentiment is quite positive, too. The economy has gotten better, jobs have gotten better. I think when the investors see these returns that they have gotten in the portfolios over time that same sentiment will continue towards the end of the year. So do you go with that seasonal play necessarily . This is a time when retailers usually do pretty well in the market. You have to look at Different Things on the calendar to see what will help act as a catalyst we look at back to school and beginning of summer and in this quarter here we look at the end of the year holiday sales. Otherwise though, Oil Continues higher have the big opec meeting and oil stocks, havent responded as well to the price of oil going higher is that an opportunity or not . We were stuck in a tight range for a little while with oil, and as more of these conversations with opec come to the forefront of our headlines, that that market starts to heat up a little bit. There are some stocks that havent really experienced that upswing with that, so towards the end of the year, that might be an area of a sector to look at. Thank you happy black friday. You, too. More on black friday and the brick and mortar retailers as they battle with amazon when we talk to former hudson bay ceo Hudson Storch hand why elon musk says the semitruck will be the safest most comfortable truck ever and well have how much it will cost to own one next. What if we could keep more amof what we earn . D. Trillions of dollars going back to taxpayers. Who could possibly be against that . Well, the National Debt is 20 trillion. As we keep adding to it, guess who pays the bill . Him. And her. And her. Congress, we should grow the economy. Not the debt. I mwell, what are youe to take care odoing tomorrow 10am . Staff meeting. Noon . Eating. 3 45 . Uh, compliance training. 6 30 . Sams baseball practice. 8 30 . Tai chi. Yeah, so sounds relaxing. Alright, 9 53 . I usually make their lunches then, and i have a little vegan so wow, you are busy. Wouldnt it be great if you had investments that worked as hard as you do . Yeah. Introducing essential portfolios. The automated investing solution that lets you focus on your life. We need to be ready for my names Scott Strenfel and r im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. Tesla has released the prices of its highly anticipated all electric semi trucks they unveiled the other day the one that goes 300mile range between charges, that will cost you 150,000 if you want the 500mile range truck, thats 180,000 no exact date yet on what the trucks hit the road but both models require a 20,000 reservation deposit. That wont fit in my garage but it would be kind of cool. Tesla could use the capital, first of all secondly, how much is it going to weigh thats where you start to run into issues, because you know the batteries are so big, especially for the longer range vehicles and thats why theres weigh stations all over the highway. Has a lot of bearing how much they can cart it along. Youve given this a lot of thought. Ive read about it. Okay. It looks like a cool truck, burks again, theres some industry skeptics. It starts right away. You know, a lot of big trucks have the gears that have to go and it takes them forever to get up 50 miles per hour. In it can go 65 miles an hour going up a steep grade, that would change some of this highway problems ill tell you, i81 down in virginia where it starts to under late, you get massive backups and its extremely dangerous so it will save having to create a lot more truck lanes. Pretty exciting. The dow is up 57 minutes to go and right now gains across the board. The russell is less than a point higher, and theres real dollar weakness that might be weighing on the small caps today. More than 150 Million People are reportedly planning to shop this holiday weekend, so well go live to the Somerset Mall in michigan next. What malls are doing to attract shoppers away from the stores. Coming up on monday, tune into squawk alley at 11 30 a. M. Eastern time with citadel u o ken griffin. Yodo not want to miss that coming up money. Stay tuned i put everything into my business. And i had all these points from my chase ink card. So i bought ingredients, utensils, even made custom doughnut cutters. Wow all with points. Thats how i created the ripple. The doughnut, in a doughnut, in a doughnut. Suddenly, its everywhere. I mean, it really took off. What will you create with your points . Chase for business. Make more of whats yours. Excuse me, are you aware of whats happening right now . Were facing 20 billion security events every day. Ddos campaigns, ransomware, malware attacks. Actually, we just handled all the priority threats. You did that . We did that. Really. We analyzed millions of articles and reports. We can identify threats 50 faster. You can do that . We can do that. Then do that. Can we do that . We can do that. Welcome back cbs and dish have resolved that dispute over the fees that the satellite tv provider paid to the broadcaster. It put an end to the threeday blackout that affected customers across 26 state. Financial terms of the deal were not disclosed. Nobody heard a word i said just now because its family day here at the New York Stock Exchange and all the kids are on the floor doing tower thing. Great to watch. According to the National Retail federation an estimated 164 million shoppers, like half the population, over the weekend. Has ecommerce become the preferred method of shopping looking for ways to get the shoppers what about Luxury Retail though in. Luxury mall owner the Forbes Company manages properties in michigan and florida they have a new one there. Nate forbes is present of the Forbes Company and joins us with his outlook and hes a minority owner of the cavs. I dont know if well get to the kyrie irving trade or not. Probably doesnt want to talk about this mr. Forbes, welcome. What about Luxury Retail we keep harping on the price Conscious Consumer you guys with the luxury malls arent doing too badly right now, are you i think the Luxury Retail is holding its own very well and the thing for us is to create unique experiences with our consumers. In the case here in detroit, in the senator set collection, 40 of our stores are exclusive to the entire region and a lot of themmy beat in the luxury area. So the interesting thing is how these malls are adapting to changing Consumer Behavior often the higher end consumer to first kind of take up the different options, and its not just online. A lot of people want experiences and all you ever seem to hear about. How is it changing your malls . You know. What we really look at these things as a community project. We have a mobile Brand Strategy and popup shops all around metropolitan detroit and were going into some of the Upscale Hotels and Cadillac Square and downtown detroit were taking our retailers to the streets and trying to make it frictionless for the consumer as to how they buy their goods. Does does location matter . I know i sound naive asking that, but could you put any of your malls in a number of places and have the same kind of success, or do you specifically choose the sites because that is where youre likely to find the most shoppers for your highend experience. I think its a combination of things obviously you have to have great real estate and great locations thats highly accessible to the entire trade areas that these Shopping Centers serve but the second part of that is creating that environment for the consumer best in class and in all retail categories, a great environment for the customer, Great Customer service and great food and Dining Options for the customer to kind of pick up additional shopping trips, and today thats found in many forms. Whether its health clubs or markets or great sitdown restaurants and lungs and things that enhance the consumer experience. So youre not afraid to go that route, and youre not just trying to stick with Traditional Stores and thats including experimenting with popup malls in your stores and all those different concepts as well. Were doing a couple of different popup shops this Holiday Season we have del toro shoe store and a bali shop thats a popup stop and a lot of this leads to curating for additional concepts that might want to open popup over the holiday, prove their business model, and that leads into longterm leases over time in some of our Shopping Centers, but we run at a very high occupancy in all of our malls, and were finding that the luxury Shopping Centers today are real defendant faces and really holding their own in a very concentrated Retail Business how much are you affected by the by the shift to online . I think everybody is affected at some point along the line i mean, you look at amazon prime. They have almost 70 million members doing 160 billion of revenue, amazon, is so we have to be different. Were affected a little bit and we try to stay best in class in all retail categories focusing on the luxury which give us points of difference in the markets that weve served so weve found ourselves to separate ourselves a little bit from the commodity nature of the shopping industry today. Real quickly before we go when is the next time that you would build a Shopping Mall . Is your portfolio done for now well, were working on a development in downtown miami as part of Miami World Center were doing all the retail 350,000 square feet of retail square leasing on the ground floor of a multitenant and were working on a few things that arent your typical anchor Department Store situations. The retail evolution is changing we need to change with it and well be very opportunistic into what we put our time and energy to. All right mr. Forbes, good to see you. Thanks for joining us. Mr. Forbes, president of the Forbes Company joining us from michigan today thanks. And 14 minutes to go into the close now. Dow is moderating its gain a little bit were up 37 now. S p still up 6 and naz dog 19 a and the nasdaq 19. Coming up on how to play the markets into the year end, could stocks recordbreaking streak level off before new years eve . Well break itow dn coming up. Now, those are some cute kids accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Feel that . Thats the beat of Global Markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Santa and the marines are in the house. They just came into a loud ovation moments ago here as the marine corps continues its annual toys for Tots Campaign that gets under way officially today. This is the 70th anniversary now of toys for tots. That was amazing to me. Great stuff they will be ringing closing be at the New York Stock Exchange in a few minutes. The s p and nasdaq are hitting a record high today. Looks like were onset for closing highs today. Can the record straight continue into year end . Our bull is david hes still bullish on this market and the wet blanket is jason brown from fundex family who says its time to take money off the table with a smile on his face jason, good to see you how long have you felt that way . Is this a new development for you or not definitely a new development. Most of my clients are individual investors trying to fund retire thes aerements and o temper their sell in an environment where its negative, if i asked how happy they would be with the results to date, most would be thrilled. Right. To not take some action to rebalance and get more conservative at this point means in the next downtown we dont have the ability to take advantage of new opportunities and with markets at high evaluations and optimism as high as it is, its david, would you give people different advice here then kelly, if its a Retail Investor individual or an institution, the clear message is still in total portfolio construction, untilted offense which means a healthy allocation to stocks. If im lighting up anywhere, it might be high yield bonds or big cap growth stocks, but you still look at defining a bare market or a tough market as down 15 to 20 . I simply cannot see it so i still think there is opportunities in u. S. Small cap. There is still opportunities prevailing in the market spin off, small cap stocks in particular are quite compelling. I wouldnt want to be dialing down the offense too much in anticipation of a tough market. Youre not worried about anything, david . Oh, im always worried, bill. Im worried about that we dont get tax reform im worried eventually inflation could be a bigger problem. Im worried a little bit but not yet about a tightening or tighter yield curve. There is always going to be something that worries you thats what you and i know that will allow stock prices to climb that proverbial wall of worry. Jason, if people heeding your advice take some money out of the market and this rips higher for a couple years, what then . Were trying to dial back risk, not take their money out of the market. I certainly wouldnt want to be positioning yourself so if the market keeps going up, youre stuck on the sideline today. Where do you see opportunity . I think moving money into balance funds. Moving more of your pmoney from hot sectors to more diversified places to weather balance suggesting youre looking for income. I see less as looking for income but more having things that wont go down as much in a down market. When valuations get as high as they are and everybody feels this good, two things happen one is volatility does come back into the market. Being able to stay in the market is important and upside is more limited. The amount of additional rewards for staying in doesnt make up for the pain you feel when things pull back and you cant take advantage. David,are you guys looking to time the market you dont think now is the time. Will there be a point, price on the market, a valuation issue of something elsewhere youre sort of saying, okay, now its time to raise the flag . When sentiment gets to euphor euphoric, ill pull back more, kelly. Specific to the big debate on valuation. Evaluations are getting pricey but they are not overly expensive. Particularly as you know quite well im a big believer in valuing companies on Free Cash Flow im still able to buy Companies Generating 10 margins and 5 to 6 Free Cash Flow yields that will be the best valuation met trick to me. From that regard, valuations are getting a little expensive but not overly excessive that would cause me to pull back too much. All right david, jason brown, thank you both have a good weekend. Thank you very much. Appreciate your time. Were heading to the close markets about to close because of the holiday up 36 points on the dow. The closing count down in a moment. And well talk to geral Gerald Storch and which retailer he thinks is best positioned to take on amazon youre watching cnbc first in business worldwide. Zar one of our investors was in his late 50s right in the heart of the financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Yes or no . Gin. Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. About two and a half minutes left as we head to the close with the dow up 34 points. Positive week. A fourday week but seasonal tendency is for a positive week going into and out of the thanksgiving holiday in part because of retail and so forth and black friday, and then the eyes have been all on tax reform, as well and seems to be making progress and Congress Helped that market the top performer and worst performer for the market this week inside the dow. Verizon was the big gainer, although not today up 3. 5 while merck was down 1. 45 . The russell 2,000 started to participate. It was lagging since early october but today or this week it moved higher and set a few records there. Oil, next week, next thursday is the big opec hemeeting and apparently we have a meeting between russia and opec to extend the cuts. Were a twoyear high. Last year it closed above 60 was in june of 2016. The twoyear note continued higher, as well with the fed talking about raising Interest Rates next month, and that has been a oneyear high although were off that high today. Look down a bit. The dollar continues lower rick sentelli keeps talking about this the dollar against the eros. 1. 19 but the dollar index in the 2 range dominic chu is here with me along with mariana on the staff. Shes the executive producer. She is. Our boss. How are we doing today . Are we okay . Okay good. Shes doing channel checks for us whats your favorite store to shop at during the Holiday Season where do you like to spend time when youre at the mall or out and about . Anyplace that has stuff, like a wide range of things. Speaking of wide range of things thats what a lot of people feel like were talking about market you couldnt pick a bigger d diverse retail target down 23 . You talk to traders as the landscape plays out, you wonder whether or not there will be a newer version, a bottoming all right thank you. Mariana, i would like monday off. Closing out with a gain of 28 points on the dow. The marine corps toys for tots see you later. [ applause ] thank you, bill and welcome to the closing bell everybody. Its only 1 00 p. M. But were closing the day after thanksgiving on wall street and going out with the dow up 3 three points, shy of a record. 23,559 the s p closing above 2600 for the first time record close up a little less than a quarter of 1 and again, the first time we closed above 2600 a third of a percent gain and we also had one on wednesday. It keeps climbing. The russell 2,000 managed to add two points today but there was big weakness in the dollar with that index down half a point weighing a little bit on the small cap performance. There you have it on the trading session, a pair of record closing. Its retail. Coming up, former hudson base Gerald Storch who says the retail decline is exaggerated with names that may surprise this Holiday Season. And this is for mike, lol surprise is one of the hottest toys this year well talk to the ceo of the company about what makes these minu little dolls, these little balls, what is the appeal of the lol surprise joining me today is Michael Santolli alongside alison deans and from Capital Management chris joins us, as well. Thank you, everybody thank you for being here lets zoom out for the week. Leading the dow was verizon. It ended lower but up more than 3 this week the biggest lagger, merck with a decline there. Over the s p 500, this is trip advisor and the biggest loser is signet with a huge move lower earlier after disappointing earnings it was a shortened trading week. Markets were closed yesterday and today a shortened trading day. Mike, what do you make of the record closes today. Tough on a day like today to stand in front of the positive seasonal trends. I feel like earlier in the week, the market showed that the kind of prior week was passed and set up to try for the yearend trade. Seems like that was happening today. Overseas, germany strong Business Sentiment numbers i keep pointing to the German Market up 1 they traded yesterday, as well despite the fact that china was chop choppy, i feel like people feel like the story remains in tact until proven otherwise. Closed the books, alison. Are we done . Is this the last day of the year effectively . You enter quiet when everybody anticipates rallies into year end, anyhow. Youll see portfolio positioning. People looking at the big winners and were seeing that already from what looks like the high probability will be some type of tax reform,there does continue to be Global Growth and the Energy Markets look as if they might becoming out of lagging period this might be a turn period of people repositioning portfolios. Chris, what effect does tax law selling this year going to have it will be minimal. I see the market grinding higher there is no reason for this good season to come to an early end because of tax selling most cases people made a lot of money this year. Yeah, thats feeling flushed lets say. How about the retailers . They are hoping black friday will give a boost. Macys is among big winners today. The stock rallying 2 . Courtney regan is in the middle of the shopping action in new jersey with the latest how is it going, court i spoke to one of macys competitors, ceo kohls, he said well ahead of last year now kohls stayed open late. The best selling item fitbits, apple watches, instant pots, nike and under armor gift items and blanket blows. He says active apparel and cold weather categories are seeing quote very strong sales. Online conversion and buy online pick up in store for kohls are way up conversion seems to be really strong for a number of retailers. The analysis of shopping data from some of the Worlds Largest retailers indicates by 11 00 a. M. This morning, there were 5 more shoppers online, 12 more in check out and on thanksgiving day there were 26 more shoppers checking out online this year over thanksgiving day last year. Here at wood bridge, new jersey, a lot are sticking with the stores and traffic is high as weve seen all day. Its awesome. We do it every year and its so much fun to wake up and go shopping the whole day. I went out last night with my dad. I like to get into theearly. As soon as thanksgiving dinner is done, yes. You got to get here early because a lot of them end at los experiencing an outage they are back up they have been working on it and there was a lot of heavy traffic because of the promotions but looks like things are back online kelly very happy black friday to you. Courtney, you, as well. Thank you for the hard work today. Courtney regan its interesting it seems to be younger shoppers driving the traffic today. Yes, we saw that earlier. Seems like shopping is another thing you can photograph and share. [ laughter ] to me, you know, i have a couple of these at home. I think there is that sense of thats an experience im going to share very tough to get it fixed on the activity but i think the Retail Sector is very interesting at this point because retail armageddon, we had some recovery there and there is just a sense of consumers in a good enough place there might be enough to go around for a few months. A rally, alison in retail today. Half a percent there 2 for macys, thats something. The economy is Getting Better Job Opportunities are better the biggest thing consumers do is spend all that happening, the Holiday Season is getting people to spend more which benefits all retailers, though i think not armageddon but the longterm is more away from bricks and aborter and online ive never been much of a shopper and i shop more because i dont have to walk into a store. Unlike those people, i would be happy if i never have to go into a store. Or try something on again happy as a clam. Yes. The mall reads, is that the case and what do you make of black friday so far . Absolutely. I think alison may be right for some people who want to do just Online Shopping but were seeing the malls change their whole tenure of what they are doing. Its becoming destination is becoming an experience and i certainly still like them. Im seeing a lot of what i consider to be clicks to brick or clicks to pick it up. Whatever the case might be and i think that shoppers are, you know, certainly the discount mall here in sarasota are jammed were seeing an awful lot of that buying experience and i think the biggest thing with discount mall read, they offer great yields, they are raising dividend and the regular malls since they are really changing, you know, as i said you can have dinner and movies and whatever, a Property Group their Net Operating Income is great. They are really starting to move forward and down big this year its a real opportunity. All right well see. Lets talk about oil for a second it has been heading higher with prices hitting levs not seen in two years. The Keystone Pipeline is closed and opec and russia could announce a deal at the next meeting next week,november 30th Energy Market hasnt settled yet. It settles at 130. Rare this happens. In doubt about it. This has we have people talking about crude going back above 60 now. Yeah, people have to widen the band what they think is the proper range for crude i thought 55 looked like it would be tougher to get beyond it hasnt been i think everyone now is pretty much on board with the idea of supply discipline with russia involved, as well. The question is do we get too comfortable with that and have to have another reckoning with domestic supply here in north america. Im curious to hear what russia pushes for. There is rumors and speculation they will want language that says depending how the oil market goes, we want flexibility. Its opec but russiaand nonopec guys because you have to band every Party Together notably the u. S. , alison i guess kind of gets to do what it wants. Yeah, the u. S. Is interestingly enough, i have the Keystone Pipeline, there goes pipeline, the future of pipeline in the country and we have a political alignment that you have to have more oil spill. My sense is you will see u. S. Continue to put more supply on the mantra coming out is we want independence we dont want to depend on other countries. Is it harder for oil to stay over 60 if we have that capability that does pose a challenge, yes. Chris, would you guys be buyers yes, i still like the large cap highyielding names and royal, dutch and british patr petroleum and the ipo next year. That keeps saudi in the camp of continuing to cut back, if they have to. Yeah, they certainly want more support if Market Conditions and again, a twoyear high for oil today according to the wall street journal, the pace of buybacks hit a fiveyear low. They are on pace to spend 500 billion and thats the least amount from 2012 its down from 142 billion from 2014 and 2016. Mike, i love this story . Yes. This is the one thing you keep hammering during the whole bull market is people go nobody is in the stock Market Companies were buying. They were. Now they are not so much. Is this a healthy thing they are getting out and maybe others are getting in healthy in the sense that companies have decided that there is no magic to it and lets also point out the market stopped rewarding heavy buy back stocks always because it was expected use of capital, maybe youll be conservative about it but i think you have to take away from this it was never just buybacks holding up the market. 142 billion a quarter, thats what the previous pace was stock book trades the day. It was never ever, ever the thing causing the market to go up. But i think it was 0 Interest Rates psychologically. The companies believed in themselves. You hope after share prices rallies as they have, maybe it doesnt make sense for these buybacks to continue at this level. Thats what im thinking. The stock prices are expensive the market environment is improving. Seals more prudent to be investing rather than buying stocks at high prices. If you could you have a company come out and say great, were going to raise a billion dollars and do a Share Buy Back with it, would you frown on that wou what would you rather see companies doing . Mike is right its about time they stop the buybacks much better toinvest in the companies or dividends i would certainly frown on it. By the way i would just its very few companies are sitting there and saying should we do the 500 million buy back authorization or build plans worth 500 billion. The math doesnt work that way its a blend of uses of capital. Should we give a laundry list of buybacks that havent worked out well tremendous. Ibm sits out there well why did you buy that stock i totally agree people have stopped using it as a crutch. Everyone else says blended, when you say blended, part of it was we were coming out of a tough environment too gradually and now there is more clarity and might be more clarity on the tax front because what we agree is on lower tax rate. Companies have a lot of debt so borrowed a lot so maybe throttle back. Thats coming into more focus. Before you go your last word on this. I certainly think the market continues to one for another 18 months i would tell you i can pick the exact day it stops and thats when we get really transformation from fixed income from equities to fixed income. 3. 5 tenyear will be something that will really make the market think. All right well see if we get there. Thank you for joining us. In few time. Alison deans on the shortened trading session, appreciate it. Coming up, well debate whether congress can deliver a holiday tax cut for the nation and whether d. C. Dysfunction is a lump of coal for investors and shoppers out on force apparently on this black friday, can any retailer challenge amazon this shopping season . Next. A black friday edition of the closing bell mail bag. Tweet us with the best stories well read some at the end of the show youre watching cn, rsbcfit in business worldwide every day, on every street, cbnc is sponsored by ppimco. A genuine smile and a warm welcome they make your town. Well, your town. Thats why American Express is proud to be the Founding Partner of Small Business saturday. A day where you get to return that love, because shopping small makes a big difference. So, tomorrow get up, get out, and shop small. Chinese investment because it means yet again, electronics are expected to be one of the hottest items. Can you get better deals shopping amazon or brick and mortar store like best buy dedra has been doinghands on research. Reporter its a very important question for somebody like me that hates to go in store and buy anything in person anymore. Weve been scouring best buy and amazon to find the best deals and what it comes down to is were seeing similar things on the best selling holiday Electronics Like top of the line tvs, smart watches and amazon devices like kindles, echoes and more best buy upped the delivery. You can buy online and get it delivered faster than you could than if you ordered on amazon. Other items come down to supply like this 13inch mack macbook air. A Third Party Merchant has them with the same specs but you got to pay up. Best buy has in sore detore deat available on amazon. One of them, just 200 on amazon, its 70 more expensive. We spoke to some of the folks here early this morning and here is why they decided to come down in person. If its cheaper online, i would be willing to do that. My impression was that it would be cheaper by standing in line on black friday. Reporter sorry, kelly, people like marry and matt you just heard from, there is fewer and fewer of them as people increasingly shop online expected to spend more money online than physical stores this year so remains to be seen whether that can give the likes of best buy a successful Holiday Season back to you. Good research, thank you very much i know its been a long day for her. Online shopping dominating with more than 640 million spent so far today the question in many peoples minds iswill any retailer be able to take on amazon joining us is ceo of gerald. I know you believe the retail design is exaggerated. Why did you leave hudsons bed look, retail is amazing right now. Its going through a huge transformation no doubt online is growing more rapidly than stores are growing. This black friday shows the resilience of the bricks and Mortar Stores and the importance of them in an ultimate solution. We are beginning were not roman numeral pages. Its not over. Amazon is an Amazing Company doing great but this is far from over this is just the beginning there will be a race for companies putting together bricks and mortar and Online Shopping and the best combination, not just Home Delivery because its too expensive. Nobody can make money running a business thats Home Delivery. As you left. Again, i just left hut sdsony a month ago. Would be inappropriate to discuss that. The curiosity, the reflection of the landscape and purely. Im a lifelong retailer, im excited to be back doing what ive done for a long time and im thrilled to be here today speaking with you about what is going on in the broader Retail Industry there will be a lot of winners i went to walmart when they opened this morning and back there today. Best buy was mobbed yesterday and it was standing room only at these stores the parking lot in every Shopping Mall i saw was full. Thats why im trying to avoid it, michael. The transformation you talk about, everyone had tobuy into this idea they have to transform and incorporate ways of distribution and attracting people in person i just wonder if all that nets out to the benefit of the consumer if youre a physical retailer, you know, you see the world as its set up now and say i see the way forward but i wouldnt start out with 1,000 stores. No. Its capitalism at work it always gets better for the Consumer Products get cheaper only the efficient thrive and survive. There will clearly be a shakeout there is way too many stores in the u. S. The u. S. Has depending how you count it, five to ten times more Square Footage than europe way more brick and Mortar Stores clearly there will be a change the best combination is bricks and Mortar Stores put together will win and the ones that cant keep up dont have the capital structure. They will go by the wayside. We see store closings and mna will increase. Which would be interesting to follow you mentioned walmart and best buy that had crowds the last couple days. Looks like winners. Who is not so much . You cant to see excellent numbers out of the players i remind people the market capization of tjmaxx is greater than the entire Department Store combined and that is over 40 billion and most of the Department Stores now are in single digits. Billions of dollars. Ross stores has a huge market. A great earnings. Add those together and burlington coat. Its dramatic. Not so much retail is dead there is a shift costco is a retailer one of the greatest retailers of the season its where i personally go wherever i get a chance. We go with that and try to its all coming from costco. Its always the lowest price. All the stuff on amazon, no way. Its always cheaper. In a way the costco model criticized, basically capping margins. They are essentially sharing the same with the customers. Thats the way amazon told everyone else. Model, too. Its all about Growth Companies are being valued based on revenue and during this transformation period, maybe thats not so wrong. So we see walmart showing a lot of getting kudos and seeing increase in the market cap even though the margins were poor by historical standards, what is going on with walmart. When you see what they are doing, building something, one of those combinations of stores and bricks and mortar and internet thats going to win. We have to go im thinking about because there was reports at the traffic of lord and taylors headquarters they are selling the building. Did you strike that deal i love the guys at hudson bay. Were great friends. Ive only been gone less than a month. That was that was a real eyebrow raiser my mom is lord and taylor card member for 30, 40 years and that was always a destination spot for us in the city. Putting aside hbc, youre going to see a lot of change in the retail environment part of it will be looking for ways to make use of the real estate i mentioned were way over store. How can we get more powerful value . Object macys spoke to us. Kohls saying they are downsizing and macys store within a store everyone is going to look. How do i get more. There was only a supply of that. Its a great location. The a real estate can drove by the Garden State Plaza on the way here. You can find a place to park there. You must have a helecar. Thank you pleasure appreciate it. Its not just apparel and electronics that are a hit on black friday, its cars, too we got auto dealers offering door busters to consumers. Next, the deals and how important today is to the Auto Industry and the lol surprise is one of the hottest toys this Holiday Season coming up, the ceo explains why this lowtech y tois so popular in the hightech world its what this country is made of. But right now, our bond is fraying. 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[ click ] [ keyboard clacking ] [ clacking continues ] good questions lead to good answers. Our advisors can help you find both. Talk to one today and see why were bullish on the future. Yours. Auto dealers are trying to rev up sales this Holiday Season with black friday deals on cars. Phil is in illinois with how its going there, phil. Reporter its a busy day in illinois usually when youre at an auto dealership at 9 00 when the doors open, you might get one or two customers. Not today. There was a steady stream of people the reason people are coming in is because this is one of the big days of the year in terms of auto sales how big . Most people believe this is considered one of the top five busiest days in the year in terms of auto sales. Put it together with tomorrow and you have one of the big weekends in terms of auto sales this year and this year you have a number of things working in favor of the industry. Strong Consumer Confidence the indicator when people are ready to buy a vehicle, low unemployment and heavy incentives which are convincing people, yeah, this is the time to buy the new car or truck. Stockpiles begin diminish and the incentives end many people have the weekend off. Its a good time to buy and get great incentives, as well. Reporter a strong weekend means that we will likely have a november sales pace above 17 million vehicles most are estimating about 17. 2 or 17. 3 million and heading into december, its believed that were likely going to see a Third Straight year with auto sales above 17 million while it wont top last years kelly, anything above 17 million is a strong sales rate and thats the expectation. This really kicks off the holiday sales season for the auto dealers around the country. Kelly, back to you. Good reason for the balloons and bows there, miphil thank you very much phil lebeau. Time for a c nbc news update. Here is the news update the terror scare in london has the citys oxford subway station reopen shortly after police evacuated on reports of gunfire. British police say they didnt find anything. This has been called the deadliest attack by islamic ex tr extremists in egypt they opened fire killing at least 235 people and injuring 109 others it happened in a volatile region in the northern part of the sinai peninsula. In florida, police are trying to figure out what caused a wrongway crash that killed three people in their 20s. It happened on a highway near tampa on thanksgiving day. Move over silicon valley, it appears more young people are going into farming the u. S. Agriculture Department Finds the amount of farmers younger than 35 is rising. Its only the second time the number has risen in the last century, but, you know, what is not to love . Get your hands dirty fresh food fresh air. You know technology these days contessa. Thats true. I see my former friends with the apps they have and the way they rigged this different equipment wait, wait, you have friends that have gone into farming vent recently yeah, no, just grew into it its amazing between the Drone Technology and all sorts of cool stuff. Yeah i believe it for what its worth, hope they are all doing well thank you very much. Yeah, sure, bye, kelly. Lets look how we finished on wall street the s p 500 closed above 2600 for the first time and nasdaq with a record of a 21point gain and the dow up five. The russell with that 2. 5 gain was a record close for the small caps. Oil prices are settling lets get to jackie for a quick flash. Crude prices bouncing on the day hitting more than a twoyear high 58. 98 you can see how close we got to 59 and took the levels out at the close. Expectations in the market that next weeks opec meeting will result in a ninemonth extension of that output cut that would take it through the end of 2018. Its likely to require russian compliance but the market thinks that that will come, too its a short meeting, three hours and reading into the timing for the week seeing crude oil with a 4 gain a lot is speculation driving us higher all eyes on next thursday, kelly. That is for sure, jackie, thank you. Lets get to some of the other big stories today on the black friday version of the rapid recap. Were seeing a trend of online brands coming to brick and mortar we opened up sigma beauty and those are brands that are valuing from the opportunity to have exposure at mall of america and the relationship with the guests they cant get online. A reason were so bullish about buying aonline and picking up in store, is for that exact reason customers love the experience when they come into a building, seeing the things when they pick up something they order online but looking at partners and opportunities to bring new traffic into the building through partnership is on the table. Have you talked to amazon im not going to comment on that. I felt about about a year back that it might make sense for us to associate with amazon. Our prices are exactly the same on our website and on amazon they basically act as a sales agent. We are the seller. We deliver the product its a different model because of the fact were an integrated structure. Amazon the sales agent. I love that. Time for the take away we begin with another big problem for Googles Youtube multiple big advertisers pulling adds from the platform after a u. K. Paper found the ads were having disturbing videos of children this happened when u. S. Papers noted ads were being shown with jihad videos that barely caused a ripple in earnings. Its hard for me to see how we can move the numbers enough on google to make it affect the stock price. What is interesting, googles treatment of youtube the last time we had these issues, i think its considered, you know, a model for perhaps how facebook should do it they tried to have a software fix and tried to put up these walls. So obviously its an on going process. I dont know its something they can turn the tide of total youtube viewer ship, which o course is constant cant figure it out to keep themreappearing. They have to hire more people. They think of it as an on going make sure its the path of greatest resistance to have this bad stuff come through. Next, ubers coverup and tends to the current ceo the wall street journal learned of the situation on september 5th and disclosed the investigation at the company to soft bank. Thats before telling the public uber says it was their duty to disclose what they knew but not regulators and customers until the internal probe was finished. Would he lose his job over this . No, i mean, i think there is no chance of that. Obviously, there maybe should be a protocol in these situations exactly when do you need to notify the customers seems like if uber believed the data was no longer out there in the market in play, you want to know the scale of the problem before you go public if it was a public company, its an interesting question. If they felt the duty was to tell the investor, if they were public, they have to put a filing out there publicly. Thats a good question. I would like to hear more about. Cbs and dish reached a deal not before yesterdays nfl game with the cowboys was blacked out for 3 million subscribers. Will that hurt ratings for one of nfls biggest days of the year President Trump just tweeted the commissioner has quote lost control of the Hemorrhaging League does he have a point perhaps over statement there. It will ding the ratings i told you wednesday that chargers cowboys game will be a dud and so therefore no big deal and in fact, it was. Even in the dallasfort worth area, cowboys fans did not watch in big numbers the biggest problem with the nfl is the fact it was on tv and all tv is having some trouble. Ad rates and revenues are not down at the nfl. Its a weird situation where fewer people are watching but because advertisers know where to find those people, they keep paying and the games there is a quality problem with football. People talk about there is too much football. Not that there is too much the fact they are totally different days means you have that many marginal games. Big problem thursday night trying to make the games bigger. Perhaps a disappointment on turkey day for the nfl. All invesctors want for christmas is a tax cut will they get a bill at the president s desk thats next. Its a black friday edition of the closing bell mail bag tweet, mail or facebook us and well read responses at the end of the show. 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. Another day of work. Why do you do it . Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. The push for tax reform continues for the First Time Since the finance Committee Approved the version of the tax bill joining me is jimmy, Economic Policy analyst and cnbc contributor and senior fellow at the National Taxpayers union great to have both of you back with us. Jimmy, when they go to pick up work on monday, will they be able to get off to a running start here every intention to get off to a running start. There remains a big question, the corporate rate to see if that number sticks at 20 , and so will they have to raise that a little bit to get more money or will they have to phase that thing in over years to raise more money . There will be a lot of debate whether that number holds at 20 . There is focus on senators different comments over the last couple days. What do you think the vote looks like jimmy is talking a lot about the math and how they make the numbers match up on tax reform the political map is just as important. If you look at the budget vote that happened that set the stage for tax reform, you had fearly every senator on board for that vote we only lost rand paul on that that does indicate there is consensus moving forward there are a number of outstanding issues one being deficit concerns from deficit hawks and another concern being what we do with the rate for the escort businesses but frankly between the house and senate there is a lot of agreement on the principle tax reform and making american jobs competitive and for the middle class both of those bills do that. Madi, is one of the Political Considerations the bill so legislators say look, just exactly what are we diving on for the 20 corporate rate and what do we have to do to achieve that and what does it mean for the scale . Sg depends how you ask the question something needs to be done to reform the tax code. As you dig into the details with the house and senate gop plans, support does begin to rise there is still a discussion, some of us here in washington who are the bean counters who have been watching tax reform for awhile get excited about it whereas americans worried about running businesses and feeding families maybe doesnt pay as much attention to tax reform and doesnt get excited about the comprehensive overhaul there is a lot of things that will get folks engaged and see support for that in particular, getting rid or getting the individual tax rates down jct says youll deliver tax relief for 90 of americans is considerable and hard to see them not supporting a tax plan that does that. The fate of this go ahead. The fate of this tax plan will depend on this being pulling well or being wildly popular, then there is not going to be a tax plan we rub tcans are they would love better poll numbers thats not going to happen one, people dont see why we need a big Corporate Tax cut and doesnt understand yet how this pays off for them, will their taxes go up and there is still a lot of confusion they press forward on this no matter what the polls say and i still think its more likely than not, if not a bit more likely than not. Were showing jimmy the comparison between the house and senate bills and focus on the state and local tax, what will happen there and Mortgage Interest Rate deduction on the number of tax brackets is this bill going to look most like the senate or whatever they can come to terms on the house goes along with that looking most like the senate because they have a very slim margin for error so i think its almost by definition going to look more like the senate bill, which means its going to be more focused on deficit reduction and what the house bill was i look for how they reduce the revenue loss and if they end up losing votes in the senate, it because it loses too much money. Madi, last word to you on the numbers there. You have democrats now saying our focus on the deficit and want to make sure this doesnt blow it up does that mean that were probably not going to see democratic votes ultimately for this to pass its interesting. Democrats are finding god on the deficit after eight years of deficit Spending Plans but moving forward, youll see support rise because there is a big reason were talking about tax reform in a serious way and thats because donald trump is president and the people that elected him feel left behind the way to get it moving again, we saw a lot of research is the cut in the rate and jimmy p is right, its hard to articulate why that is so important but frankly look at the research on this and that will funnel down to more productivity. We got to go but madid and jimmy p thank you as always. Thank you. Appreciate getting your points kick this back off starting monday. 1,000, lol surprise toys are selling for 1,000 and the things retail for 70 well talk to the ceo behind one of the seasons hottest toys and a black friday edition, did you get in on any door buster deals . Witness a crazy packed mall. Well hear about it on facebook, tweet, nbc your response could be read on air. 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And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Allow you to take advantage of growth opportunities. With a level of protection in down markets. So you can head into retirement with confidence. Brighthouse financial established by metlife. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Shoppers embark on stores this black friday, many will search high and low. Its the lol surprise with more than 25 million lol brand units sold, many stores sold out of this in demand toy on ebay, some of the series characters are selling for over 200 joining us to talk more about the phenomenon is mga entertainment founder and ceo isaac. Thank you for joining us. Good morning and thank you. Happy holidays. This is not your first hit. You were behind the bratz dolls. How do you come up with the lol surprise yes, im fortunate our companies have done two of the 17 hottest toys ever in the past two decades and we came up with lol surprise based on a few things every kid likes surprises. Secondly, we watched unboxing videos on youtube and say lets make it an unboxing toy. I have one here. Yes, we have one here, too. Right so you just open it and layer after layer after new surprises as you go through each one and as youre opening that, i want mike to take a look at this giant orb we have on the desk here, too, which is how a lot of these come it looks like youre giving someone a basketball and its this whole that [ laughter ] looks like a cake or something. Yes. Or a hatbox. All of these little balls, get to open one by one and lots of little prizes and this is the funny thing to me, isaac the prizes themselves dont seem to be that thrilling its like little dolls and things like that does it matter what is in this or do people just like to unbox them no, absolutely. I think it matters what is inside finally when you open the big surprise that you have, you have dolls in there that are only available in that big lol big surprise and each one of those dolls also have other surprises once you get to them you put water in them, either they spit or they twinkle or they cry so there are over 200 different characters that kids are collecting. Wow okay this goes to mikes point i think you might have given me a tinkle one. I have to look at the instructions. You were saying, mike, we were talking about how people are back in stores, younger kids but to share online. It sounds like half the point of getting an lol surprise is the experience. Almost like a retro experience maybe this went into your thinking there in terms of why this might be a moment the idea of ordering exactly what you want online or for that matter having someone tell you what you want probably makes this a bit of a novelty to have some sort of hidden surprise in there and maybe make it a collectible in that way. Absolutely, mike. Thats a whole thing about it. Again, kids are different. I have three of them i call them aliens they talk their own language they talk to each other, and they decide we want this toy because its surprises the toy does Different Things. You guys got to keep it stocks in stores, thats the key, isaac. Yeah, so the key the we are air freighting on the lol big surprise we were very, very surprised that how well it has done we launched it on september 29th and it got sold out immediately, and we are actually now air frighting merchandise in time for christmas. We wish you luck. Thanks for joining us. Talk about the genius behind the toy. Mike is bringing it home the ceo of mg entertainment. Thank you. We asked your thoutsgh on black friday and will reveal responses in the closing mail bag right after this who could possibly be against that . Well, the National Debt is 20 trillion. As we keep adding to it, guess who pays the bill . Him. And her. And her. Congress, we should grow the economy. Not the debt. Looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. I thwell wait. What did you meetthink about her . Its definitely a new idea, but theres no business track record. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back we have a news alert on macys courtney regan, what is happening. So we are getting reports from across the country that macys credit card systems are down in stores weve reached out to macys corporate, no official word yet from the headquarters however at the store here, we have confirmed that the credit card machines are not working the only definitive option for customers right now is cash. Take a look at some of these tweets we have a tweet from skates dco, arizona. Credit card machines are down on black friday want customers to apply for a macys card. Macys credit card systems in downtown d. C. System not working. No wonder why people shop online another tweet from reno, macys reno system wouldnt recognize my macys card or credit card. He did have cash good news for him. He was able to check out this is not a problem macys wants to face on any day of the year, let alone black friday, kelly. Huge blow for them, courtney. Thank you. I was just shaking macys shares down half a percent. They softened up after this. They were one of the best performers today the ceo was on this morning and seemed to spark that. I wonder if its macys specific but if they use a vendor or bigger system. Well all find out. That does it for closing bell. Made off for billions or millions starts now at can i te . Its a closed fund. An elite club for the chosen few. Its not a question of credentials. Right now, its a closed fund. Of course, thats just the hook. Nothing on earth makes people want something more than telling them they cant have it. You play hard to get. You make them sweat. And then. Im gonna make an exception. And once theyre in, you make them feel safe. You give them consistent returns, around 10 , 12 a year, year after year. If anybody asks you, how do you do this . Whats your secret . You say to them. Thats proprietary