Launching and landing a reused rocket weve got the ceo of a publicly traded Company Looking to capitalize on the increased excitement around space these days. Wonder if they call them certified preowned. Thats coming soon, im sure. Yes. After the bell, bitcoin millionaire, a young man who bought bitcoins at 12 is now worth millions good for him hell tell us whether he is selling right now and whether hes investing in ethereum, litecoin, or ripple. Or whatever the coin is. Isnt that a wine lets get to the big story out of washington right now. Republicans sprinting to pass tax reform before the holiday recess and a final version of the bill, we are told, is expected to be released in just a couple of hours. Ylan mui who has been way out in front on this story today gives us what she knows right now. Ylan reporter bill, senator marco rubio is making it official, he will be a yes on the republican tax bill as weve been reporting since earlier today. Now, hes onboard because republicans were able to expand the Child Tax Credit he tweeted not long ago that that move is a solid step toward broader reforms that are both progrowth and proworker. He also thanked senator tim scott as well as ivanka trump, the first daughter, for their work on this issue he also thanked mike lee of utah who is still undecided on this bill last we checked we are reaching out to his office to see if he is now officially a yes. Now, rubios support does help republicans secure passage of this bill. As you mentioned at 5 30, we will see the final version of this bill formally presented to congress at that point, it will become available to the public and representative kevin brady, who chairs the ways means committee, told reporters earlier today that he is very optimistic about this passage. Im confident at the end of the day the senate will approve this Conference Committee report because no one should be defending the status quo in this horrible tax code americans have had to live with for too long. Reporter now, this vote will occur next week. Were hearing that the house will go first on tuesday the senate will follow suit after that and all indications are that the president will sign it before the end of the week. Back over to you guys. Is all right. Theyre moving pretty quickly, ylan thank you. Good stuff our next guest is here to tell us which sectors are poised to benefit most from tax reform if it does happen and which stands to lose. Arent you . Jonathan is with Credit Suisse and with a headache here we were all trying to front run this thing, trying to guess whats going to be in it we think we know yeah, i think theres too issues what exactly is going to be in it and we have a pretty good directional sense. What it actually means, tvits not, how much exactly are Companies Going to pay after they deal with all their expenses and deductions, how much of that is going to be brought back in the buybacks you could have an explosion, and i think you will, in buybacks and, you know, what its going to do to Capital Spending, mergers, a lot of people in the Health Care Space are talking about the mergers that this is going to create. Theres more unknowns even after we know everything. Right now in broad strokes, what we look at are those sectors that tend to pay the most in taxes and those that tend to pay the least to try and figure out who the big winners and losers might be, right simplest terms, businesses that are domestically oriented, local retail store or utility or bank, they dont get to shelter themselves from their tax burden and they pay a lot a much higher tax rate. So those are going to be coming down by far the most same thing with railroads or Trucking Companies and then you have companies that do a lot of business outside of the u. S. And really the big names would be, like, health care and technology and certain cases Big Industrial companies and the interesting thing is with this change between the last bill, on this alternative minimum tax right. Some of these companies that look like they were going to get walloped before all of a sudden theyre going to get hurt but not nearly as much and the markets going to start to scramble and try to figure out what those are. Just a couple names your team identified with high tax rates, you think would benefit, high effective tax rates, currently huma humana, technipfmc lowest effective tax rates, talking about names like ea, electronic arts. That goes to this question about how much different is the effective tax Rate Companies are paying now from the statutory rate is . Theres, as i speak to investors and ask about the broad market what theyre assuming, right now, companies are paying about 27 tax rate. Assumption when this is all done, it will be probably something around 20 if you just if you didnt buy back any shares or anything else, thats Something Like an 8 or 10 increase in s p profits just from the rate before anybody does anything else now, why are we talking buybacks, necessarily . I mean, jamie dimon acknowledged that the other day he said, you know, its not a bad thing that the companies will do a lot of buybacks when they get this tax i dont want to call it a windfall, but the tax break of some kind the idea behind this, though, is to get companies to spend more to create jobs and build factories and so forth why wouldnt they want to do that well, just think about it, youve been able if youre a corporate ceo, youve been a bl to borrow money at virtually zero for the last five or seven years. If you had a great business to buy or machine to acquire for your factory you would have done it. You would have done it already. So this is incremental and theres no question youre going to see some of that, but my guess is the majority of it are going to be companies handing it back and then the rest is going to be used for either acquisitions or equipment purchases. Youre also going to see there are a number of companies that have borrowed in the United States to basically synthetically, as a way of financial guy would say is, bring back that foreign cash and they may actually retire some of that debt, that borrowing they didnt really need, it was just the location of the cash. Real quickly, there are a couple of places you think could not benefit so much from this passing in the corporate space pharma, biotech and autos. Why, in particular, do you think this bill will not be in what way individual names, talking about sectors . You can talk about individual names if you want. Im seeing pharma, biotech and autos, you say are disadvantaged by the proposal. Anybody who does a lot of business abroad, been able to shield themselves from taxes, are the ones that are going to basically lose that advantage. I mean, theyve been able to set up Distribution Systems where they export things and bring them back in, or because theyre selling outside of the u. S. , and pharma is a good example theyre global businesses, theyre not local businesses as compared to a pharmacy which is local, but the drug company is selling around the world and so its a big difference in the tax rate. And lastly, on autos, whats the problem there . No, i mean, you have similar you have some of the same similar issues on sourcing of things and the like so you have to i mean, the simple way to look at it, its easy to find, you can look at every company, what is exact tax rate theyre paying now and you just you basically the companies that are paying a really low tax burden are the ones that are either going to see that rise or simply going to have less of an advantage of everyone else than they had before and, therefore, the moneys going to rotate toward the winners and thats been happening. Probably in the sixth or zechset inning of this tax rotation. Unless something changes. In the bill. Yeah, i think right now the market is starting to assume this thing is going to be close to what we see at 5 30. We sit at the highs of the day and week and alltime, as a matter of fact jonath jonathan, good to see you. Thank you. Lets get to our Closing Bell Exchange for this friday, peter costa with us somewhere on the floor of the exchange there. Cnbc contributor, charlie, the vice chair of Ariel Investments with us. Rick santelli at the cme in chicago is with us this is an expiration day, peter, what are you expecting to happen here . Going to be some huge volumes. We already checked a lot of the major 2345i78 names and going t very large you know, people look at that and at the end of the day the market could be up 190 points and look at 2. 5 billion shares trading on the nyse, 8 million or 9 billion overall. Theyre going to think there was some major meltup. The reality is, you know, 70 of that volume is going to be on the close. So, i mean, its a strong day, everythings been pretty strong. Whats been going on in washington you know im not a big fan of basing an investment on any politician, but this is, you know, we cant fight this storm. Yeah. Charlie, what are your sort of main things on the dashboard here is it the tax bill you know, is it other aspects, you know, things coming out of washington here as we start looking into 2018 . What is it the good news is, theres a lot of things that are all pointing in the same positive direction. By the way, this idea that tax cuts arent going to affect investment is just silly people, businesspeople, make investments based on aftertax returns. Not pretax so if you have an investment that would give you 100, before you only kept 65, now youre going to keep 80 on that new investment its going to affect a lot of projects that are now going to be economic that werent before. Second thing, a lot of money is going to come back, repay debt which is going to help incomes lastly, theres kbigoing to be lot of stock repurchase. Nothing wrong with that. Repurchasing the stock means i will own a bigger percentage of the Company Going forward. We think the market is correct, going to have a very positive effect. Hey, rim, im going to give credit where credit is due our friend, Liz Ann Saunders at Charles Schwab tweeted this out a while ago. As we watched the flattening of the yield curve this week, she points out the yield of the two year is now above the s ps two yield for the first time in a decade. Thats pretty interesting. I think its hugely interesting, i think at some point in the future, its hard to predict these things because the runway is always longer than we believe on almost everything in regard to finance i do think theres going to be real substitution, competitive nature between the fixed income markets and other investments like equities. Some point in the future and i dont think thats a bad thing. You know, we constantly hear that the biggest worry for the equity markets is going to be Interest Rates rising. Of course, were not talking about the short end, the fed, leaf that day loan that isnt a bad thing theyre talking about the more marketdriven rates on the long end. I envision as long as the longend rates are driven by positives, its not going to be a bad thing, its going to create a very nice feedback loop that will be a positive feedback real quickly, you know, the guests that wehad on prior to our spot said buybacks, great, zero Interest Rates, everybodys done, built everything they want to i so disagree with that. It isnt about Interest Rates. Its about what you think the future is going to look like if you build a plant, whats the regulations for the plant . Whats the tax policy going to be what kind of president are you going to have in office . I think we have an atmosphere where theres less restriction and more of the ability for a business to steer and understand the type of future it will invest in. I think thats monumentally huge to create some hest for the economy moving forward are you suggesting that you dont expect the large number of stock buybacks that so many people are as a result no, i think there will be buybacks, but i also think theres going to be companies that are going to rethink some of their Capital Spending that theyve refrained from to exclusively concentrate on buybacks and i think that lane is going to split in two there will be buybacks but i think companies are going to look toward the future, see a less boot on the neck of business environment, and i think theyre going to make hay when the sun shines. Charlie, you would still avoid the bond proxy stocks, some of those, the reits, partnerships, things like that next year . Yeah. That you know, we didnt get everything right this year but we did say that the bond substitute stocks were badly overpriced the beginning of the year mlps in particular we still think thats the case were going to have a stronger economy. Rick is right, we think longterm rates are going to go up and the bond substitute stocks are going to have another tough year. Very quickly, peter, so a lot of volume on the close here. Any volatility expected . What are you hearing about the market on close right now . The market on close right now is leaning toward the buy side which is not unusual for, you know, the market being up 170plus points. Right. I think that, you know, at the end of the day, well probably be right around this level. You know, they dont normally normally things get pared off and its just a huge volume spike but not really so much as a mover, volatility spike. We had the volatility early today. Now were probably going to flatten out toward the end of the day and have big volume. Thats about it. You know, i do want to bring up one thing. I know were short on time i agree with Rick Santelli so much i cant even tell you, i think that there will be corporate repurchases. I think its a huge mistake. Ive been saying this for a long time corporate growth doesnt generate from buying back shares it generates from mergers and acquisitions spending money on Research Building out your business and looking to the future and if Companies Look at it that way, this windfall, then this country will be in great shape. Caharlie, youre still going to defend the buybacks, arent you . I salutary e absolutely am they prevent companies from doing dumb things like dumb mergers and acquisitions charlie, look at the stock prices were at now. Very, very few companies are undervalued or underpriced to spend the money and buy back more shares, its great for the shareholders im in that business the reality is for growth in this country, we need to have them spend that money on something a little more substantial, building tra ining, potentially spending more money on research. Were horribly over time. Sorry. No, no, thats okay we always love it when smart people disagree. We love to hear both sides of that story thank you, guys. Have a good weekend. Thanks for having me. And we have 15 minutes oh, its almost time for the closing countdown. Oh, no, 45 minutes left in the trading session. The dow near the highs of the day. As we pointed out, the best performer of the major average, the russell 2000, up almost 2 right now. Higher effective tax rate, more domestically focused companies. Yes. Huge rift for the russell i think that would put us in record territory were about nine points off that right now. Nasdaq, too. Up next, elon musk, spacex attempting a milestone launch to send thousands of pounds of equipment to the International Space station with a reusable rocket well tell you how that mission meant what it means for musks outer space plans. And speaking of outer space, star wars the last jedi hits theaters today thursday night previews turn in Big Box Office results ill break down the numbers and weekend projections when the closing bell comes right back. We want to hear from you as always reach out to the show on twitter, facebook, email. D tl read some thoughts at the enofhe show. Its friday, after all youre watching cnbc, first in business worldwide work on the cloud with open technology, and open standards. The ibm cloud. The cloud for business. Yours. The cloud for business. Im an outdoorsman. So ive asked chase sapphire reserve cardmembers to find my next vacation. Chile, whats going on . Im at the el tatio geysers. Geezer. Geyser. Geezer. Geyser. Enough. Geezer. Whoaa, wooooo. Dude, be careful. I think you should come camping. Why would i camp in the atacama desert . Oh. 3x points on travel and restaurants on every continent. Sapphire reserve, from chase. Make more of whats yours. [ mouse clicks, keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] 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. Trace every precious product, every step of the way, with a blockchain built for business. The ibm cloud. The cloud for business. Yours. A new report says back in 2016, as tesla was prepping for the launch of the model 3 sedan, the automaker was simultaneously dealing with an investigation by the securities and Exchanges Commission the subpoena reportedly asked for documents pertaining to reservations of the model 3, production times, and cancelations it also named Goldman Sachs and looked at the timing of its Analyst Report upgrading the stock ahead of the companys announcement of a 2 billion Stock Offering later that day. Ultimately, the report says the s. E. C. Did not recommend any enforcement action tesla shares up a little less than 1 today. And speaking of tesla, yesterday on the show, i spoke with famed short seller jim chanos asbout the stock. He was very candid about how he views the company. To me, where the stock is now is not the story, i. E. , where its been, its the opportunity. Is it a buy here or a sell here . I dont really care that it came from 30 or 200 or 300. Its still a sell here as far as youre concerned . Were still short, yeah. Do you have a price target in mind we think the equitys worthless, so hows zero we did reach out to tesla for comment but did not hear back. Not even a tweet. Turning now from one Elon Musk Company to another. Spacex. Attempting a milestone launch today with one of its reusable falcon 9 rockets cnbcs Morgan Brennan has details for us on that morgan i do have details and this was a milestone. After several delays, spacex making history again today by launching a recycled rocket for nasa marking the first time the government has ever done Something Like this with a commercial company now that launch from Cape Canaverals complex 40 which i saw firsthand earlier this week involving a reused first stage booster. The main engines for the falcon 9 which had previously flown in june see it taking off earlier today right there in the video the unmanned dragon capsule filled with 2 1 2 tons of supplies and science experiments for the International Space station also reused. Having traveled to the iss back there 2015 that dragon capsule is expected to rendezvous with the space station on sunday, but the firststage booster made its way back to earth, sticking a landing at Cape Canaveral air force station less than eight minutes after it launched creating a sonic boom in the process. Its the 20th time spacex has been able to do this, reland one of those boosters. So todays crs13 Mission Marking spacexs 17th launch for 2017 that means elon musks company now holds the record for most orbital launches by a private Sector Company in a single year. Spacex is supposed to have one more falcon 9 launch before 2017 is over, but then its all eyes on falcon heavy. This is musks next gen more powerful rocket which is now expected to make its maiden test flight next month. And just to bring this full circle for you guys, yes, musks red tesla rodestadster is expecd to be the payload for that at least if regulators agree to it. Back over to you. What does that mean where are they going . It means on the new next generation falcon heavy rocket, theyre going to be putting musks personal car onto it and the plan, or the hope, is to launch it so it goes to mars so its ready for him when he gets there okay. Morgan, thank you. Why not it really is fascinating stuff. Morgan brennan. While elon musk is in the headlines, theres a somewhat lesser known company in the spacex exploration business up 30 this year. Its called Maxar Technologies it specializes see the shares today specializes in satellite imagimaging. Describes itself of sitting in between traditional firms and new endeavors like spacex. Joining us, howard lance, president and ceo of Maxar Technologies hell be reading the closing bell in a little bit here at the new york stock exchange. Welcome back to the new york stock exchange. Thank you great to be here. It seems like all we hear about are the billionaires that want to get into space, whether its jeff bezos, elon musk, or richard branson. You guys have been doing this for years and both for the government and for private payloads, right . We have we like to think of ourselves as a new Space Company with 50 years of heritage. Maxar technologies was formed through the combination of mcdonald detweiler and digital globe. Were the leading provider of commercial satellites, space robotics, ground stations and leading provider of all the from space Digital Imaging that you see. Every consumer touches either our communication satellites through downloading video, sirius xm radio, and every time you look at google maps, goog the earth or call on uber, youre using our technology. I was going to say, goodgle, microsoft, uber, are customers of yours do you do surveillance work, do you sell that data to traders . Is. That you can tell us about. Exactly half of the company is commercial, were selling commercial products including commercial imagery to all of those kinds of companies as well as corpoRate Companies that are in, say, the agriculture or energy business. Certainly every trader is subscribing to something that would come from our Predictive Technologies the other half of the company is defense. So were a Large Supplier of imagery. The largest to the u. S. Government as well as to today about 14 or 15 Global International governments. President trump as we know doubled down on going back to the moon and getting to mars, which is something that elon musk, you know, richard branson, have talked about. You going to participate in any of that . Well, we would hope to be on some of those teams providing different kinds of technologies. Certainly as the space robotics leader, we have the canada arm and the dexter robot on the iss. So anything that goes up with robotics i think were going to be there. Softbank has just bund fufuna satellite Company Looking to maybe do smaller satellites that are less costly. You know, how is it evolving, the satellite business i think in the Communications Part of satellites, that market is in quite a trarnsition. Ultimately people trying to figure out how can we provide Reliable Communications at an even lower and lower cost, reaching even further around the globe for Internet Access . Mobile locations and do you use reusable rockets as well . We do weve had a snurm number of our commercial satellites go up and land just like todays rocket. Its very impressive were also Building Three radar satellites for the canadian government that are going to launch next year and now that nasa has used the reusable rocket, were going to be doing that on that mission as well. I was joking earlier, are they going to call them certified preowned or something . Is that what were coming to perhaps Something Like that. Howard, thank you for joining us a little birdie told us today is your birthday. Happy birthday as well. It is, thank you so much. Happy birthday. Howard lance, ceo of maxar technologieies ringing the closn bell coming up in a little bit here. Not a bad way to celebrate a birthday. Yeah, right dow is up 176 its the underperformer today. It tells you the kind of rally wo were seeing on wall street here looking at records potentially with the s p up 27 points right now. 1 gains for the s p, nasdaq, about a 2 gain for the russell which is up 30 points as we sit here. Up next, loyal fans came out in force last night for early screenings ofwars movie and if thursdays Box Office Sales are any indication, the weekend numbers could be pretty big well tell you how much it could earn and how it stacks up with other film. Shares of fitbit taking a hit after one firm warned the company has no, que,ot sidelines to profitability well tell you whats behind that call just ahead i mean wish i had time to take care of my portfolio, but. Well, what are you doing 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. Their leadership is instinctive. Theyre experts in things you havent heard of researchers of technologies that one day, you will. Some call them the best of the best. Some call them veterans. We call them our team. Directv has been rated number one in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like wet grocery bags. Getting a bad haircut. Overcrowded trains. Turnstiles that dont turn. And spilling coffee on themselves. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv. And for a limited time get a 100 reward card. Call 1800directv of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Sitting near the highs of the day as we head toward the close with 30 minutes left the dow up 176 points. The big gainer today, look at the russell, just continues higher up more than 2 right now. We have breaking news on the tax bill which seems to be fueling this rally ylan mui has the latest. Ylan reporter bill, senator bob corker of tennesseenow a yes o the tax bill remember, he was the lone republican holdout when the senate voted on its version of the bill but now he says he does support it in a statement he says the bill is far from perfect. That he believes this is a once in a Generation Opportunity to make u. S. Businesses domestically more productive and internationally more competitive and it is an opportunity that we should not miss. Now, the republicans are hoping to vote on this next week, in both the house and the senate. He said that he hopes with future regulatory reform, different policies on trade and immigration, that will help address his concerns about the deficit and the national debt. But he is now a yes on this tax bill, so republicans have a lot of momentum heading into next week at this rate, pence can go to the middle east. Yeah, maybe yeah. I dont know theyll need his tie breaking reporter maybe that trip is back on. Yeah, this seems to be coming out of nowhere given, if anything, were still wondering how did they pay for increasing the refundable portion of the tax credit to placate rubio and lee . Reporter well, so, remember, the Corporate Tax rate did go up, according to the sources weve talked to, from 20 to 21 , so that is one potential pay for. The other potential pay for is that the Child Tax Credit looks like it will phase out at a slightly earlier income level than it did in previous versions of the bill. So that could help offset some of the costs, but when we had spoken to bob corker earlier in the week, he told us he was not a no he was undecided on the bill and said there were still provisions on the corporate side that he was looking at and was still very interested in that could possibly entice him to support it and looks like they made it happen yeah. Maybe the most outspoken deficit hawk in the senate has come around. Said the whole reason why he got into politics and got into the senate was over this issue. Yes ylan, thanks great job as always. Lets get over to contessa brewer, get a cnbc news update at this hour. Kelly, bill, heres whats happening. Deutsche bank was asked for information about transactions potentially linked to michael flynn. Its part of the investigation by special Counsel Robert Mueller into alleged russian interference in the election Deutsche Bank says it is cooperating. Protests continue today in the west bank more than a week after President Trump announced his decision to recognize jerusalem as israels capital. Three palestinians were killed and Dozens Injured in clashes with israeli troops. Police in lake country, florida, releasing body cam video of the arrest of a 93yearold woman. She was evicted from a Retirement Community for not paying the rent. She refused to leave the property, so police were called in wow. Well, this wasnt pretty, either, but it got the job done. Fans at the atlantic hawks game using less than perfect shooting form to make the halfcourt shot last night he won 10,000 for that unorthodox shot. Watch this whatever works you know, machiavellian said th ends justify the means thats your philosophy update for the day. As long as you put it in the hole it doesnt matter how it looks. If lonzo ball could get away without having to tweak his shot, im sure he would. Thanks, contessa. Are great stuff thanks. Star wars the last jedi officially hits theaters today early screenings last night already turned in pretty big numbers. Julia boorstin went to one of those screenings shes in l. A. With that story and her review julia . Im here with special guests. Some storm troopers here kind of creepy to have them behind me here at the el capitan theater. The theater behind me, behind the storm troopers, has over 1,000 seats and has been selling out all day. We see people streaming in here to take pictures the storm troopers, you guys can go now thank you. Bye. Bye. To take pictures with the storm troopers and to see the film this film has been selling out and the numbers so far are huge. Last night the last jedi brought in 45 million in ticket sales and disney tells us that its on track to bring in in the high 90s, in the millions of dollars on friday and that puts it on track for about 200 million opening weekend. That would be one of the biggest opening weekends of alltime a 93 critics rating on Rotten Tomatoes bode well for the film to hold up and top the 1. 1 billion that rogue one brought in last year it also bodes well for disneys ongoing investment in star wars, not just for the han solo origin story that debuts in may but the star wars rights disney is buying as a part of its fox deal fox owns the rights to the original Star Wars Trilogy plus the prequel trilogy, a draw to the disin iney streaming app launching in fall 2019 the characters can already feel the massive Consumer Products powerhouse which is the big east toy brand ever plus theres the two star wars lands opening in 2019 based on the fans that have been here today, i have to say most of the people coming to see this movie seem to be wearing star wars gears. I bet there would also be demand for disney to rerelease cuts of the original films theatrically. Guys, back to you. Were concerned about the storm troopers. That, for me, is the highlight of the day is watching julia dismiss the storm troopers i hear you like the movie, in fact reporter its kind of creepy to have the storm troopers right behind you. Yes, i know, its tough to work when theyre right behind you. Theyre very intimidating. Reporter i saw the movie one of our producers okay, one of our producers went to the screening last night and came away with a less than stellar review and identify beve been hearingd reviews. These are true fans. Anybody who went last night theoretically is a true fan. Go ahead, julia. Reporter well, the critics really loved it. 93 on Rotten Tomatoes is very high and i think, look, i dont know what producer youre referring to but i do think the bar is very high for star wars fans this one also had a lot of the original characters. I thought it was visually stunning and pretty amazing. I dont want to give any spoilers but i think its going to do well this weekend. It already has. Thats for sure. All right, julia, thank you. See you later. Im tempted to say youre dismissed now, but that would be wrong. Coming up, could video games with used to, get this, treat medical conditions thats the question were asking in todays installment of modern medicine. Stick around, much more closing bell right after the break. My name is Cynthia Haynes and i am a senior Public Safety specialist for pg e. My job is to help educate our First Responders on how to deal with natural gas and electric emergencies. Everyday when we go to work we want everyone to work safely and come home safely. I live right here in auburn, i absolutely love this community. Once i moved here i didnt want to live anywhere else. I love that people in this community are willing to come together to make a difference for other peoples lives. Together, were building a better california. Check some of the movers in todays market action. Foot locker trading higher on the heels of an upgrade to buy from hold. The firm also raised its price target of 64 from 45 a share the stock at 45 and change now. Foot lockers relationship with nike is strong, and the stock is trading at 3. 5 right now. 3. Shares of fitbit, though, falling today after being downgraded by stifel to a sell from a hold with a 6 price target its trading at 6. 30. Stifel expects the Wearable Company to remain unprofitable and to burn cash in 2018 and it sees no opportunity for it to benefit from Corporate Tax reform as well the stock down 7. 6 and i have to say ive done it again, i you know, i got another fitbit last spring. Yes this was it helped me lose some weight. Exactly it was a little bit more slimline. Yes it was discreet. I stopped wearing it. Why i just one day you just didnt put it on . I didnt put it on. Had you been doing less steps than you wanted . No, i just gained a little weight and its thats the first fitbit thats still sitting in that drawer, but i think this is the problem because ive had the exact same experience whether its the apple watch or looking at it on my iphone, when i have a day i have a lot of steps, i cant wait to look at the thing. Right, right. Then days or weeks when i really dont, im like im not checking that. Novelty wears off and all that, too. That, too shares of fitbit having another rough session. Well see if the holidays can save them. 20 nnt minutes to go until the close. Dow up 163 the s p is basically up 1 nasdaq up a little bit more than that 80 points higher for the nasdaq. Russell up 1. 75 get why some doctors may soon be prescribing screen time for kids and later, senator james inhofe will join us to talk tax reform hell weigh in on the bill and why he thinks americans should be able to dip into their 401 k plans at a reduced tax rate. Thats still to meco whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley some moments can change everything. You cant always predict them, but you can game plan for them. For 150 years, generations of families have chosen pacific life for retirement and Life Insurance solutions to help them reach their goals. Being ready for wherever life leads. Thats the power of pacific. Ask a Financial Advisor about pacific life. 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. Despite certain popular beliefs about video games that theyre really maybe not that good for you, new data suggests gaming may actually be helpful in treating certain conditions our resident gamer, meg tirrell, has a look at this type of modern medicine, meg. Reporter hey, bill, weve probably all tried braintraining apps that purport to improve our memories or make us happier or more focused new work is going on in the realms of biotech that aim to take that concept a step further. Akilia analytic running trials of video games in conditions like adhd and depression the hope is to provide a new option alongside more traditional medicine. We actually believe when you code certain types of stimulus in very specific ways, it actually activates those circuits that talk back and forth to each other much more powerfully than a molecule that happens to be floating around in the brain. Reporter so achilles games what it calls digital medicines aim to stimulate the brain in ways that help it improve on tasks like the ability to Pay Attention. The Company Reported results from a Clinical Trial last week and about 350 kids ages 8 to 12 with adhd. The study compared achilles game with one not designed to be therapeutic and found that kids ability to Pay Attention improved the Company Plans to file for fda approval of the game early next year and its successful, aims for it to be prescribed by physicians and its a growing area of interest in medicine Johnson Johnson at one point worked on a similar project. Akili has funding from amgens arm and shire Investment Group as well as a partnership with pfizer that focuses on disease risk detection its still early and the field is eager for more data getting to play a video game would be a welcome option probably for the way we think about taking medicine. Guys boy, thats for sure. Now, youre talking about adhd i, you know, as my kids were growing up, the fear was that playing video games too much would cause a. D. D. Attention Deficit Disorder i mean, but thats a whole different story there, right reporter yeah, this is a very specificallydesigned game with these sort of algorithms where they understand kind of what the stimulus is to the brain and try to essentially get the brain acting in a certain way that kids develop these better abilities to focus. And better attention abilities and they can take that from not just playing the games but it will last in other parts of their life. Cool. Was just talking about limiting screen time for his kids then you know its something. Then well know thank you, meg. Reporter thanks, guys. It meg tirrell. 13 minutes to go dow is up 142. Were a little bit off the highs of the session that we saw earl yer when we got use that senator corker this is the funny thing, bill, we put in the highs before we got that news. Kind of right as we got it that senator corker is supporting the tax bill. I dont know if its by rumor, sell the news type activity there. Still strong gains. Is when when we come back, d darst will join us to talk about the markets this week. Hint, habint, stay with us. Weve got auto insurance, homeowners insurance. Had an accident with a vehicle, i actually called usaa before we called the police. Usaa was there handson very quick very prompt. I feel like were being handled as people that actually have a genuine need. Were the webber family and we are usaa members for life. Usaa, get your insurance quote today. Your new brotherinlaw. You like him. Hes one of those guys who always smells good. His 5 oclock shadow is always at 5 oclock. You like him. Your mom says hes done really well for himself. He has stocks and bonds. Your dad wants to go fishing with him. Your dad doesnt even like fishing. You like your brotherinlaw. But youd like him better if you made more money than he does. Dont get mad at your brotherinlaw. Get e trade. Art cashin stopped by a moment ago and said the market on close orders, a big number. And this might be expected because of the expiration. 1 billion to buy is the imbalance right now. As we head to the close with the dow up 145 weve been coming off that high as we said we were up about 180 points at the peak there and now were off those highs. Still some strong gains especially in the russell 2000s as you said, nearly a 2 increase on the day. Time for our weekly visit with our friend, independent investment consultant, the dapper don, himself, david darst. Thank you so much, merry christmas, happy hanukkah, happy new year to everybody. Your acronym this week . With all the talk about janet yellen and the Interest Rates and Jerome Powell coming in next year, the focus, it should be rates. Rates. The r is record highs. Well come back to that, for many assets and record lows for volatility okay the quata is how many alterna Interest Rate increases, another three or another four. Jp morgan is at four Morgan Stanleys at three for the time being the t is you have the teetering tax, the teetering tax plan right now seems like mr. Rubio and senator corker have come back in favor now. So the word, teeter, is an old norse word meaning to shake or to shiver, okay . Titra, titra, the verbal form. Something paul ryan has been doing for several months now thats right. Trying to get this passed. The e is europe and japan, and i think people can take some money this year and put it into europe, japan, and maybe even some emerging markets. From a valuation standpoint, from a growth standpoint, and from a moderate Interest Rates, low Interest Rates theyre not raising them as fast over there as they are here. Right. Good place to put some more money. Take it out of the u. S. , put some over there, japan and europe and the s is solid and synchronized data. Solid and synchronized data and there basically you see all of the engines china, japan, europe, and italy right now, for example, italys back to 23 million employed. Theyve added 2 Million People to the job rolls in the last two years. Right. So you see this going on. The first one, the r, where were going, you want to talk about the record highs, not only the dow jones industrials, not only the s p 500, you saw the transportation index make a new high. Nasdaq right now as well. Nasdaq, russell 2000. Right. So you want to be very careful. We are up at very elevated valuations priced to earnings, priced to book market price to gdp. Thats buffetts favorite. Were at a record very lofty levels so it can still go from here the individual investor has shifted to 45 bullish the i thought you were going to say to bitcoin, but well, i just received a call from a friend who said everybodys going to go home and there will be one person whos bought bitcoin around the turkey and ill go out and buy bitcoin. I think you want to be very careful. Tou you want to be very careful around things like that. Next week i will know that weve gone too far when your acronym one week is bitcoin. Oh, bill. I dont think that will happen. I dont think it will be that unless we compress it to five letters with the use of an apostrophe the coin. We do have rules here next week we got on thursday the catalonian election which has been much talked about. Yes. Whether theyre going to try to get more people to vote this time to see where thats going personal income, personal consumption, next week and a lot of housing data. Happy christmas, thank you for your wonderful we always love having you here welcome and generous inspiration all year ditto thank you, david see you later. Well take a quick break here with the dow up 133. Were losing a little bit of altitude we have the closing countdown coming up in a moment. Yes, we do. After the bell, we turn our attention to a teenager who oh, yes, here it comes, started investing in bitcoin in 2011. Oh, boy. And is now a millionaire. Hes going to share his story. Were gointo a hg skim whether hes still investing in cryptocurrencies and which ones stay with us the moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. Bacteria can multiply to high enough levels that even cooking it will not destroy all of them. Its definitely the most important thing in my business. How fresh is the fish . Where it comes from . How it gets here. The more i know, the better. Sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. We took our world Class Network and we developed devices to track environmental conditions. This device allows people to understand whats happening not only with the location of that asset, but also if its too hot, if its too cold, if its been dropped. Its completely unique. We ship fish, beef, poultry, vaccines, insulin. This is about monitoring and protecting everything we ship. I catch all this amazing, beautiful fish and then once its out of my hands, i have no control over what happens to it. If you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Its really all about the network. You are looking at trillions of transactions a year. Not too Many Companies in the world can even scale to that type of volume. Who knew a tiny sensor could help keep the food chain safe . Food has to be fresh. Its that simple. 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. About 2 1 2 minutes left as we head toward the close with the dow up 123 points. Wo were going to see a little bit of running around in the last couple seconds of trading as we have this expiration, the last big expiration of 2017 lot of volume, volatility. We are coming lower here the dow for the week will finish positive we did break a fiveday win streak yesterday with the decline. Now were back to the races again. The big gainer for the week, centurylink, pretty good gain for the week, and the big loser was garmin and today its down almost 2 again. Bob pisani, i want to bring you in on this, twoyear note, i mentioned this earlier, the yield on the two year is now higher than the yield on the s p. First time in a decade thats happened thats pretty interesting. Thats what it did this week it went down after the fed announcement on wednesday. And then came back watch the ten year now weve talked about the flattening of the yield curve. The tenyear yield also went lower on wednesday but did not recover. Which is interesting so thats part of that flattening that weve been talking about. Yeah, used to be 90 basis points for a long time the difference, now its significantly, 30 basis points different than it was in a while ago. Thats that flattening the shorter end a little higher. The longer end is basically been flat. Oil continues to hover around those twoyear highs that were set just last month. Lot of focus on u. S. Production right now and the feeling is were going to see another glut of oil next year. If you see the forecast for 2018, a lot of people are sitting at 60 and remember, this is notoriously bad. People are notoriously bad, though, with oil futures they always get it wrong can i bring in the expiration, bill very large volume, a number of companies are going to be decreasing their weighting in the s p 500. Jp morgan is among them because theyre buying back stocks so a lot of the banks are buying back stock jp morgan down a little bit. Some are increasing it because theyre adding Options Companies like oracle, a lot of the tech stocks, micron, facebook, going to be adding theres going be a very big rush of volume as we get to the close here and the gain here is a titanic amount of volume but dont change the price thats part of the game. Thats professionals at work there. Maxar technologies ringing the bell at the big board as we close out the last expiration of 2017 more tidbits coming on the tax bill thats going to be unveiled in a little bit. Coming up on the second hour of the closing bell with kelly evans and company. Have a good weekend, kell. Thank you, bill. Welcome to the closing bell, everybody, im kelly evans what a week weve had on wall street what a day today following the latest twists and turns of tax reform sounds like senators have more republican votes than they thought this morning including senator corker as we got that word this afternoon. Heres the finish on wall street dow up 139 which is a little off the session high of about 180. Better than half percent gain for the blue chips 24,648, a new record close its also the first time the dow has ever closed above 24,600 for whats that worth. S p 500 today, broad market up 23 1 2 points closing at 2,675, a record nasdaq up more than 1 to 6,936, a record by about 20 points. The russell 2000s, best performer, one point it was up 2 this afternoon, closing up. 1. 5 to 1,530. Only the russell 14 points shy still of its closing high from the end of november. Playing a lot of catchup today. All the details of the republicans revamped tax plan are expected at 5 30 p. M coming up, senator james inhofe who has a proposal to boost the Housing Market and the kmeconom using 401 k plans will join us with this take and where he thinks its going to pass by President Trumps christmas deadline the whole bill, that is. Joining me, cnbc contributor evan newmark who is im really excited about today. Theres no mike santoli between us. I know. Its a christmas miracle at least for me. So im excited to be here. Its not just you, we got john blank on board as well to moderate things a little bit its great to have you both here topping the dow this week is disney of course, completing that deal for 21st century fox assets. Disney up nearly 7 on the week. Ibm the laggard down 1. 5 . How about the s p . Centurylink which has been so volatile lately led the broad market theres centurylink with a 15 gain this weekend. Centene was down about 6 . Now the tax bill is said to be released in just about 90 minutes time. Weve within getting news of more republican senators supporting the bill including marco rubio and, yes, bob corker, evan, just in the last hour. Yeah, yeah. What do you make of him coming onboard i dont know. Probably just wanted to be onboard what was going to pass in any case. I think youre right. Whats interesting about that, though this idea that, what, even though hes leaving the senate, even though he says his entire career was based on concerns about the deficit and debt levels, and well wait for more details. Maybe something happened this afternoon to sway him, but for all of that, he now wants to be onboard for this plan when it passes yeah. Must think the public will ultimately react well to it. I dont even at least his constituents not that it matters, hes leaving. I dont understand politics very well. Its one of those things its like nobodys going to remember, you know, the no vote no matter how it turns out you know, the legacy of the tax reform bill will be its legacy i happen to think right, does he want to be associated with that if the whole point was its going to blow up the debt it doesnt really matter unless in the future he wants to get back into politics later on. I dont think also interesting. I think at the end of the day, you know, he doesnt want to be the one republican whos left out because he then he just looks like hes like a bad, you know, bad sport or Something Like that. I dont love the bill. Im sure larrys going to be on later telling us hes going to join us. How absolutely wonderful it is. I will say that the bond markets reaction to the bill is a bit odd. The stock market has been very strong financials were very strong today. Its probably good for financial stocks, the tax reform bill. Its good for a lot of corporate domestically oriented stocks its good. The bond market is still saying giving a very weird message which is we dont believe trumps 3. 5 , 4 growth. John, you think if this was setting us up for faster growth, maybe even for some that corporate that bond yields would be rising, instead, they held pat if not dropped a little bit. One of the analysts we follow is saying whatever plan you think the markets giving whatever grade you think the markets giving the tax reform plan, the bond market is giving it a minus on top of that if the stock market is giving it a b, the bond market is giving it a b minus what grade would you give it as things shake out here . Id give it a c. Im with the tax authorities at the cbo that. 8 of growth over ten years,. 08 is a year, is probably the right number for growth rate the on the United States economy so this bill is a nobrainer from a bond market hard money, you know, know the inside story, theyre betting on what im betting on which is the consensus growth rate for gdp is 2. 5 next year the bond market is smarter than this, kelly, basically well come back to this we want to get to some breaking news Corporate News right now deal news on campbells soup Morgan Brennan, whats goingkel. A report on cnbc. Com, a scoop that campbells soup is in advanced talks to asquicquire snyderslance that this deal could be reached early next week. 50 per share. You recall yesterday we brought you some news that a potential merger could be happening. Well, this is providing more details here of course, it remains possible the deal talks could be delayed or fall apart but that a potential deal would be campbells largest yet amid industry changes and consolidati consolidation. You can read more about this on cnbc. Com right now, snider esnyderslanc. Thank you evan, this would be the biggest acquisition reportedly that campbells has done yet. Yeah. Theyve done a bunch lately. Theyve not campbells years ago when i was in business school, we did a case on campbe campbells campbells used to be like a big company that had a Bright Future and theyve kind of last 30 years has kind of passed them by. The interesting thing about the snyderslance thing to me, campbells gone hard into the fresh foods, brought bolt house farms, trying to freshen up the line of their soups and all of that snyderslance, we think about cape cod chips and pretzels. I think about their pretzels. Excellent. A little hard on the teeth, but it comes down to what the price is theyre my point is, thats not necessarily a bid on healthy organic fresh foods. No. Its actually a doubling down maybe on some of the less healthy parts of the food business. The less healthy food businesses as pepsi discovered tend to be the super profitable ones nothing beat the doritos or fritoslays. I love fritos but theyre not good for you the forays into the health food businesses, it tends to be more competitive. Skbrajohn, anything youd ad this before we move on id say its an m a play, someone has a tight relationship with campbells and tacking on acquisitions that are opportunistic. This is one of them. Reminded that snyderslance bought Diamond Foods last year. Walnuts. And almonds lot of things coming together under this now interesting story, more on cnbc. Com. Morgan stanley, meantime, out with a note. This is pretty interesting, too, today, saying that amazon prime subscription growth is plate plateauing the firm found 40 of respondents were prime members in q3 but the same from qq 4 of last year. Finding 20 of nonprime members are likely to sign up for prime and thats the highest number theyve seen in two years. John, or evan, is this it for amazon then . I dont think this is it for amazon you know, the only thing that it does, it raises, you know, questions around valuation and how you expand the business into adjacent businesses, whether its the cloud or whatever i will say one thing, and this may be a bit unfair to amazon, i think its an incredible wellrun company. Are you a prime member . Im a prime member. Ive been for years and years. My only issue has always been valuation on the stock its not with the company. And this week for the first time ever, i had a lost i had two lost packages. Wow. And that has never happened. Never happened to me. On amazon ever. And i got the do you want to replace your order wow. By the way, i heard this, purely anecdotal from a couple other people, so im not saying this is any great tell, its just saying that, you know, trees dont reach for the sky, you dont grow amazon prime until its 350 million americans have signed up. I wonder, john, too, how many additional members costco keeps signing up just thinking about a company thats much more mature and yet put up some pretty good numbers the other day. What do you think about prospects for amazon to keep growing prime from here . Im actually bearish. You know, the number you got to throw out there, kelly, for viewers to turn around in their minds is onehalf, 50 of americans now have an amazon relationship and thats whats flat youre at half the population. So from an antitrust perspective, alone, i cant see amazon getting any bigger and now were finding out that theyve kind of drained the pool theyre trying for this, you know, deal for lowincome people theyre trying for the above 55 crowd that doesnt use the Internet Services very often but we all know thats a much harder sell, so i think theyre done i would say this is it for amazon i would actually think this is a bigger moment for amazon than anybody else thinks right now. All right ill just remind everybody, we talked to Stan Druckenmiller in the week earlier, still a big fan of amazon and said theyre under underearning, could be making vastly more money thats always been the story. It has always been the story and why the performance has been good even snow tthough the valuation it is the one stock that over the last 20 years has not obeyed any valuation rules. Well, maybe cash flow valuation rules. Those are thats what many thats important, too. Many regard as the real underlying valuation rules. Anyhow, shares of h m were plunging today hitting eightyear lows. The companys shift to digital and ecommerce is apparently failing to improve sales h m reported weaker than expe expected fourthquarter earnings st stock down 13 in european trade. Usually we talk about the retailer is down because amazon is eating its lunch. The other thing about h m, they compare it to the owner of zara and other companies which it had a little bit of a stutter step, lets call it, in it this quarter but still looks much stronger than h m does. I cant tell whether this is specific to h m or a more general point. I would say that the retail space, no matter where you are, its hard to there may be growth, you know, Companies Like h m have had tremendous growth runs over the last decade, but at some point, it seems just is that mallbased fashion era over everything is catching up with retail. Just the industry is shifting so dramatically. You mean to online . To online, to the, you know, different products, different, you know, its just things have become much more ondemand its just, you know, these companies, h m and zara were basically ondemand thats what i find interesting about this. Its such a tough business. John, i also wonder, again, this is what they do very well, they are nimble on fashion, they change over the product in their stores very quickly and youd think it could maybe do well in this era, but if theyre also investing online, i doesnt know if that translates online. Frankly, a lot of the sites are all over the place, have to be there to see the quality and try something on what do you think is going on . I totally agree, kelly. You have to be in the store to try it on and this is a fast fashion statement. They have the tactile play at the retail point of sale, but they havent figured out how to put any internet spin on that and your point is correct, i think, is they dont there may not be a very fast fashion internet mix and theyre probably behind the curve. I think the big news with h m, its not an amazon this is an international strugg struggle global brand and International Market theyre struggling outside the u. S. Thats the story you want to pick up. Thats a good point shares down 13 today. Moving on to Discovery Communications stocks been volatile lately it was higher today after liberty medias john malone bought nearly 333,000 new shares now, if this takes his holding over 900k, sounds like he increased it 50 , a huge bet he and his wife are making on the valuation of discovery being low right now. Echos kind of what he told david faber in an interview not terribly wrong ago, assets of discovery being undervalued at a time when disney and fox are tieing together and assigning a premi premium. Is the one thing i learned many years about john malone is not to try and read too much into anything he does. Hes such a deal guy hes so taxdriven hes thinking usually a decade in advance i dont know i would just say, you know, hes the kind of person, hes very clever, and i dont i would never make a quick read of anything he does for any shortterm read. I think thats totally fair john, what would you read into this, then, if anything . Well, one thing i learned about the stock discovery when i looked into it is its a strong sell and the earnings estimate revisions are going down so the bottom line with the stock like this is as cheap as it is, a forward p e of ten is going to get cheaper you want to hold off on this story. The bottom is not in the stock id probably wait for even another few dollars a share to get knocked off before i buy the john malone story as well. All right. Lets get to some more breaking news, this time it is on akamime. Morgan brennan has the details. Reporter exposure of 6. 5 of the shares of common stock in akamai technologies. That is according to a regulatory filing. As of december 14th. Elliott believes akamai shares, tech company, networking in cloud, infrastructure company, the shares are, quote, significantly undervalued and saying that they believe the issuer possesses an Unmatched Network platform which provides a Significant Competitive advantage and that basically theyre going to be seeking to have a conversation with the company, with management, about its market cap and about how it can realize better value so this comes just 24 hours after Elliott Management also renewed its push for an overhaul at oil and gas producer, hess, and if you take a look at shares of akamai on the heels of this s. E. C. Filing, theyre up about 11 in afterhours trading. Back over grow. All right, morgan, thank you. I was going to say, elliott can keep a lot of balls in the air at once. They have built a i mean, perhaps sort of one of a kind kind of asset there. Hess right now, dealing with this, theyve got whatevers going to happen with the paintings and codings thing thats been dragging on forever. Akamai i remember from streaming technology. Akamai is one of the stocks if you go back to the internet boom, it was like even the in the 90s no, even in i think the early 2000s. It was like one of those hot stocks that everybody talked about constantly. Yeah. Then it kind disappeared. I dont have a strong view on it im looking at the cap now, still snenearly a 10 billion company. John, anything youd adhere before we move on . Yeah, akamai help load web pages faster, basically a Service Provider for the internet as long as you believe in the internet, got to believe in a nuts and play bolts for it and thats what akamai is. Sounds like a savvy Hedge Fund Holdings that someone sees some value in that the rest of us dont, but the core fact of akamai is going to be around as long as the internet is. All right john, thank you for joining us thank you have a great weekend. Thats john blank. Were going to officially get the details of the tax plan at 5 30. Just about 375 minute 75 minutw weve had news about it leaking out all days and bitcoin is surging 150,000 only 150,000 totally normal. Totally normal since may 2011 when it cost 12 bucks. Coming up, were going to hear from a High School Dropout who invested in it then and now hes a millionaire. Hes not a billionaire . He should be a billionaire by now. You can contact the show on ma, ter, facebook or send us aen eilclosingbell nbcuni. Com youre watching cnbc, first in business worldwide k you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to Wealth Management. We thats why at xfinityic. Weve been working hard to simplify your experiences with us. Now with instant text and email updates youll always be up to date. You can easily add premium channels so you dont miss your favorite show. And with just a single word, find all the answers youre looking for. Because getting what you need should be simple, fast, and easy. Download the xfinity my account app or go online today. Just over an hour were expecting details of the tax bill as some new leaks emerge today including expanding the Child Tax Credit to win over senator marco rubio. Theres still many questions about whats actually in the final version. Joining me now, dan clifton, and cnbc contributor larry kudlow. Couldnt think of two better people to talk to about this right now. Dan, let me just start with you because what are the final what has changed today other than the Child Tax Credit as you understand it . So the Child Tax Credit was one of the last issues they needed to deal with. Most of the work was done yesterday, kelly they have a new income tax rate structure at 37 the Corporate Tax rate will come into effect immediately at 21 a lot of changes to the international rules. I think theres going to be some companies that are very happy with the Interest Deduction on worldwide income goes away but lets say what does this bill do it is now a frontloaded, progrowth tax cut that is about 1 of gdp. Two weeks ago yeehaw. The senate bill was. 4 of gdp. Throw in the kudlow supply side effects, get 1. 5 of gdp in 2018 from this and we think the bond market is misreading how progrowth this tax cut is. Okay. Before we get into that, actually sort of related to it, dan, i understand they are lowering the top rate in there, but talk about the changes to sure. How thats distributed across on the income side . Sure. Its very difficult for individuals, voters, to figure out what effect this thing is going to have for them. Absolutely, kelly i believe theres a lot of misinformation out there and really the only people who are getting tax increases were the wealthy, due to the loss of the state and local tax deduction. That number in this new bill will be about 3 to 5 of taxpayers and i really wish they werent getting a tax increase but at least 90 of moderate and, you know, upper middle income workers are going to get a massive pay tax pay massive tax cut in their paychecks right at the beginning of this new year thats going to be the equivalent of a raise and i think thats going to start changing the perception. The expectations here are so low that when those paychecks adjust and incomes go up 3 to 5 , people are going to feel a lot better. Evan feels totally skeptical. Im definitely if one of those, 3 to 5 of people. We knew that. I dont im curious by the way, were the balance is really tipped here you got dan and larry are both singing the praises of this tax thing right now. Yeah. You know, larry is sitting there nodding his head as dan is talking. I dont where does this before year end. Where does this do i get one kudo before year end ill give it to you. Weve had this discussion. Not until the end of the segment. Where is this big pay boost coming from . I dont understand that. Sure. Dan so marginal tax rates are going down, expansion of the child credit i mean, theres a lot of middle class tax cuts in there. The democrats were focused on what happens when these tax cuts expire in 2025 that has nothing to do with whats going to happen in 2018 again, the number is 200 billion of tax cuts coming into effect in 2018 even if you dont like those tax cuts, even if you think theyre distributed inefficiently, its going to have a huge impact on the u. S. Economy and the Financial Markets and the markets are going to have to reprice when this happens. I have a slightly different take, similar, but look. To understand this, this is a supplyside, businessside, investmentside tax cut principally. The individual tax cuts are kind of small potatoes and in terms of the growth estimates, tax foundation, for example, the biggest single growth booster from this is the reduction in the Corporate Tax rate and then you have the investment expensing and also the repatriation look, we havent had an investment boom in roughly 20 years. Thats one of the things thats held down wages. So what i want to say is by busine building in incentives, making the United States more competitive janet yellen seemed to acknowledge thats right. She talked about supply side stimulus yesterday. I was thrilled. Maybe we had a bigger impact than we think. This expands the economys potential to grow. Thats the key point. Why did corker get onboard . What i tell you something thats an interesting question. What happened, what changed senator corker who is a friend of mine, called me this morning. Talked to him for 45, 40 minutes. I dont make the hard sell i talked to a lot of house members. Im a resource we went through what his issues were i didnt know how he was going to vote when we finished but i think we covered a lot of ground so he felt how did you a lot of people share concerns about whats going to happen with the deficit in the next couple years. And with the level of government debt. Right the only push i made is that i felt i was upfront with him i said, look, bob, i believe youre going to have a Huge Investment boom and the economy is going to grow faster. And, therefore, the impact on the deficit and revenues will be minimi minimized. Thats my view others disagree with me. He, you know, he was processing that and i think at the end of the day, the growth argument impressed him a lot and i remember him saying to me this is not new you think literally today, you talked to him about growth, he decided to change his mind about the whole thing . I dont that he changed his mind look, this thing is in flux. I mean, you dont know until you know it. But, new york i think you he considered the same thing, steve moore and i were down i sta talked to senator suzens collins a long time. A good friend of mine. Came on the show a lot very smart i didnt push her, didnt try to do this, do that i said what information can i provide you . It was more on the economic side i mean, its interesting, the sale of the kudlow moore laffer boom scenario i dont think was made as effectively as it could have been made now, weve been trying to make it but hopefully the president will continue to make it and i think at the end of the day, the results will decide this its going to be real popular. If we move from 2 to 4 and if people feel like they are getting some kind of tax break. If that doesnt happen, it aint going to be popular. I think its as simple as that im betting on a supplyside tax cut. I think its going to happen. Dan, last word then we have to go. Well, first, i would just say that in terms of the sector impact, kelly, youre really starting to see the market begin to price this in from an equity perspective. Industrials, banks, consumer discretionary. These are the these are the stocks that are going to move when you go to 3 or 4 gdp so the individual stocks are telling you what larry kudlow just told you. Look i know were out of time look at todays Industrial Production report. Pretty good. Look at business equipment. It is on the cusp of a boom. Three months growth over 9 12 months growth. Were on the front end of an investment boom the likes of which we havent seen in over 20 years. Gentlemen, thank you both larry kudlow, dan clifton joining us there. Also cboe Bitcoin Futures trading higher today ahead of the other launch of futures on the cme, kicking off on sunday were going to have those details right after this and more detail on the tax plan. Senator jim inhofe of oklahoma has written an amendment to stimulate the economy via the Housing Market it has to do wh iit40s1 k plas hes going to join us with all those details coming up. [vo] when it comes to investing, 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. Directv has been rated number one in Customer Satisfaction over cable for 17 years running. But some people still like cable. Just like some people like wet grocery bags. Getting a bad haircut. Overcrowded trains. Turnstiles that dont turn. And spilling coffee on themselves. But for everyone else, theres directv. For 1 rated Customer Satisfaction over cable, switch to directv. And for a limited time get a 100 reward card. Call 1800directv weve got breaking news on bitcoin. Whats happening, bob pisani Td Ameritrade is going to begin allowing Bitcoin Futures trading on its platform. Lets take a look here the company has just released a statement saying in part, at this point we believe the market is showing signs of adequate liquidity for the cboe product therefore, monday, we will launch the cbo bitcoin future s contract on our platform for a subset of qualified retail clients. Td ameritrade says theyll require a minimum balance of 25,000 to trade the futures and very high margin requirement 1 1 2 times cbos margin thats 66 thats a lot so to trade a single bitcoin contract, say, 17,000, you have to fit up 11,000. It will only allow trading on the cboe futures platform, not the cme, which by the way, launches its own Bitcoin Futures Trading Platform this sunday they say they want time to monitor the cme futures before allowing their people to trade it now, this is important because Td Ameritrade is one of the largest futures players in the retail market. Throw in the start of the cme futures on monday, what you have here is more liquidity and more retail participation thats good. This follows on the start of the Bitcoin Futures this week. At cboe, that contract traded with very few problems the volume is very much on the low side here. Now important thing is thats likely those traders are largely outside the United States. Thats why this is happening theyre mostly in asia, these people japan and south korea in particular, they dont have futures accounts in the United States and the big bitcoin miners outside the United States, they dont have futures contracts, either so, wait until more institutional players come in from the United States, kelly. Thats when things might get very interesting and i anticipate that could happen in the coming weeks and months. Back to you. Yeah. We have a big launch of those cme futures this sunday. Bob, thank you bob pisani. Now my next guest is a High School Dropout turned bitcoin millionaire. Just millionaire, evan eric finman bought his first bitcoin when it was priced at 12 bucks a token. He now owns 401 bitcoin and joins us now eric, thank you for joining us and for your time. Glad i could be on. So i want to go back to may 2011, got a 1,000 gift from your grandmother and tip from your brother a lot of people will have christmas experiences like this, okay theyre going to get some cash, going to get tips from people. Should they buy bitcoin right now . Yeah. I think its a wonderful time to buy bitcoin. You can actually buy a fraction of a bitcoin so you dont have to go in and buy, you know, 10,000plus on a whole kicoin t actually buy 100, 50 worth of a bitcoin. It would be a great stocking stuffer. Do you try, eric, to figure out what it should be worth . Do you have any sense that holy cow, this thing is so up much, im going to cash it in and sit on my gains here or think as weve heard some people say, it could go to 100,000 or 1 million . I mean, i think cryptocurrency and bitcoin is really the future of the Financial System and the future of currency so i try to avoid taking as much out as i can. I really dont want to do that whenever i sell a little bit of bitcoin, or pay for something in bitcoin, i multiply that price by ten because thats where i think that bitcoins going and i think its going to be huge and i think its going to be incredible. So itry not to take out any. Any. I try to really avoid that. So you made this bet with your parents if youre 18 and a millionaire, they wouldnt force you to go to college, right . Turned out pretty well. Yeah. So but what happens if this thing now craters, goes to zero, the case may be, what is your fau fallback plan now . I mean, im heavily diversified in other cryptocurrencies, diversified outside of cryptocurrencies but i really do have a lot betting on bitcoin because i really do firmly, like, bitcoin to me, its not just an investment. Its not just maybe a get rich quick scheme as a lot of people put it, but i see it as the future of currency i see it as the future of the Financial System so i think its thats where it is. I think the icing on the cake is its a great investment. I think thats what its really backed by and i have a lot of faith and belief in. Erik, its evan, and i guess congratulations for making a lot of money, for seeing something thank you. Investing quite earl willry in the cycle. What if tomorrow every government in the world viewed cryptocurrencies as a threat to actually their own currency, and just outlawed them what asset i mean, thats if they said to you, erik, thats fine, but next time we catch you trading your bitcoin, were going to put you in jail not that i think that is exactly the way it would happen. What value would the cryptocurrency then have, in your mind . So, yeah, i mean, this has happened before with there was, like, liberty dollars or libber it i coin eerty coins i6 the guy created his own currency and he was prosecuted for that thats why bitcoin is so amazing and bitcoin is so incredible when it came out and why i saw it as more than just another currency because people tried to create their own currencies and end up getting banned before is the Technology Bitcoin is built off of it. The Blockchain Technology that bitcoin is built off of means its controlled by no one, you cant shut down anyone and it can exist even if every government in the world banned it so, obviously, i think the price would go down if every government in the world banned it, which is unrealistic, but i understand just for this situation, and it is a possibility, for sure, but, i mean, the beauty of the technology is that it can exist purely if every government in the world banned it and even thrive as you see in china, they banned a lot of stuff like that a lot of banned the bitcoin exchanges and all that and bitcoin is still actually being used in china. Thats whats so beautiful about bitcoin and the technology, itself. Erik, theres so much more to your story i encourage people to read about it on cnbc. Com thanks for joining us. Thank you erik, before we go, can i ask you one more thing, we just got this news from Td Ameritrade that theyre going to allow people to trade futures, Bitcoin Futures on their Trading Platform what do you think the effect of that is going to be . I mean, does that affect how you personally trade at all or do you think its just a legitimateizing thing for better or worse i mean, i think it legitimatizes bitcoin in an incredible way and obviously futures allows people to bet for bitcoin or bet against bitcoin and i think thats why you see a lot of these kind of futures on the cboe is very low, in the sense very few people are betting against bit kocoin and youre going to be for bitcoin, its, you know, youre going to just go direct and in my opinion if youre for bitcoin, youre going to buy and own bitcoin i think its great legitimately, great to legitimatize it i think it is better to buy Bitcoin Direct if youre for bitcoin. All right erik, thank you again for joining us thats erik finman. Thank you. Time now for a cnbc news update, lets get over to contessa brewer. I think i want to ask that kids parents how they gave him his Financial Education to begin with, right . Secretary of state rex tillersos threatening behavior said must stop before they talk to pyongyang about the development of nuclear weapons. Randall quarles, his wife, family, sold interest to wells fargo in 2000. Quarles disclosed ownership of 1 million of wells fargo stock which he sold. 4. 3 Million People paid to watch Floyd Mayweather knock out Conor Mcgregor in august that comes out to about 600 million in revenue according to show time thats a big fight. Two cows on the loose in kansas no word where they came from how they got away. But there was a hot pursuit and police were able to wrangle them apparently the police have h had have to have some mad cowboy skills there in kansas. Look, they look really sweet, dont they thats the cnbc news update. Looks like yeah. Contessa, i was just going to say, you asked how the kids parents raised the parents, g they met getting their ph. D. S at stanford and their brothers graduated at age 16. Theres a lot of discussion about whether college is relevant in the current climate, if you have the skills, do you really need a degree he was pretty wellspoken let me tell you we got to go. He had a lot of luck. Contessa, thank you very much contessa brewer. Lets look how we finished the day on wall street dow up 143 the underachiever today. Records for the dow, s p and the nasdaq and the russell was up 1. 5 . Just shy of a record close big day there. Aspiring homeowners could soon be able to tap into their Retirement Savings at a cheaper tax rate for their down payments if senator jim inhofe gets his amendment into the tax bill. Hes going to join us coming up. But first in our takeaway a major poultry producer says chicken wing sales are down and the reason for their slump might surprise you thats coming up after the break. Win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over 120 billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. So how old do you want uhh, i was thinking around 70. Alright, and before that . You mean after that . No, im talking before that. Do you have things you want to do before you retire . Oh yeah sure. Ok, like what . But i thought we were supposed to be talking about investing for retirement . Were absolutely doing that. But theres no law you cant make the most of today. What do you want to do . Id really like to run with the bulls. Wow. Yea. Hope youre fast. I am. Get a portfolio that works for you now and as your needs change. Investment Management Services from Td Ameritrade. Welcome back the tax plan is skpj escheduled released to the public at 5 30 p p. M. About 45 minutes time and know if an interesting amendment thats been proposed will be included comes from senator jim inhofe that suggest that people be allowed to use 25 of their 401 k Retirement Savings to buy a home or pay off mortgage debt for themselves or for a child. It would be taxed at a onetime 10 rate just 10 and it would be expected to raise significant revenue. Joining me in an exclusive interview, senator jim inhofe, republican from oklahoma thanks so much for your time. Nice to be with you, kelly. Is it in the bill, can you tell us . I wish i knew i dont know my proposal was when i offered this thing on the floor, this had been a couple weeks ago, if you get to the point in the final short rows, have to come up with some revenue to offset a proposed, maybe a loss or perceived loss, this it something you could do, you could do it immediately. What it would do, you described it well, but if you have a qualified retirement plan, like a 401 k , where youre going to have to pay at its maturity ordinary income, you can take up to 25 of that out today now, you have to pay pa 10 fee, and if you pay the 10 fee, that would be income that would be coming in immediately. Now, were talking about possibly billions of dollars here and people are going to argue, well they might argue at the end of the normal maturity, there be a little bit less that would come out in ordinary income well, we dont know what the ordinary income is going to be 20 years for now, anyway so i would suggest that we could do this right now. We could see a huge influx of revenue coming in to offset some of the problems they may be arguing with as we speak. I see why its attractive to raise the revenue point of view but raised a lot of other concerns about people already undersaving and this would exacerbate it. Im also wondering would they only be able to buy a house with it or allowed to use up to 25 for everything i would say most of them probably have maybe their own business, need to put money in their own business hobby lobby, everyone is familiar with it, thats an Oklahoma Company i remember when day were operating in their garage making, you know, little trinkets and now theyre the largest arts and craft in the world. At that time, they needed a little bit of money and just to boost their business i would anticipate most of it, kelly, would be for that very purpose to try to you could use it for anything, though, just to be clear . That seems like part like if i were to raise a criticism of this, other than just generally being worried about people, what you say, raiding their 401 k s, i understand maybe if you want to encourage home ownership. Weve been down that path before the other piece is, what if you can use the money for anything, if youre only paying a 10 penalty i imagine people would tap that pretty quickly and spend it pretty quickly and then goes a huge chunk of their savings now but also for the future. Yeah, if you say that, youre kind of assuming theyre not going to be looking at their own somehow the government can do a better job for them were only talking about up to 25 . And i think you know, i would hope that youre right that a lot of people would be wanting to do it but somehow, its going to going into the economy and one of the things about this tax plan, those of us, kelly, that not you, but me, who are old enough to have been around back during the 80s, we know what can happen, how much additional revenue can come in as you increase your gdp and i think this has had an effect of actually doing that. The bottom line is, thats immediate money, its now, today, in the event they find at the last minute theyre going to have to have something in there thats going to provide additional revenue they got it. Senator, well see. As you said, whether its this bill or another one. Just the fact that its reared its head is significant. Let me ask you the last thing before we go, do you think broadly speaking americans have saved enough for retirement in in an age where we dont want to rely on the federal government to pay for social security, medicaid, down the road, if thats an unsustainable path should we do more to put up gates to keep people from taking money out of these accounts . Money theyre really going to need to live on in 30, 40 years time my answer is no because i believe that people should have the opportunity to take care of their own futures and this is only a 25 opportunity so its not like a total wipeout and somebody actually, i first heard about this on hugh hewitts radio show and i tried to shoot holes in it we studied it and thought, you know, if we really do need immediate income to make this thing work, this is a way to do it all right senator, thank you, again, for your time. Well be following with great interest. All right, kelly. Merry christmas. You, too. Thats senator jim inhofe of oklahoma coming up next in our takeaway, we have a new development in the battle for screen time as amazon resumes sales of streaming devices from two major rivals that story and more right after the break. What are the ingredients of a life well lived . Is it the places you go . The things you own . Or the people that fill it with meaning . For 150 years, generations of families have chosen pacific life for retirement and Life Insurance solutions. Protecting whats most important to you. Thats the power of pacific. Ask a Financial Advisor about pacific life. Your bbut as you get older,ing. It naturally begins to change, music plays throughout causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In Clinical Trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. This is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for business. Yours. Up next, theres a drop of home solar installations in this country. One firm says teslis ta o blame. Well explain, right after this. 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. Welcome back it is time now for our quick take away. We begin with the latest chapter in what i call the faang wars. Are you trade marking that name its so bad, i shouldnt. Amazon resumes sales of Googles Chromecast and apple tv. A detente, as much regulatory reform, these tech platforms dont want to be seen doing anything anticompetitive the thing that all the Big Tech Companies understand is the enemy is not really their competitor or people they perceive as their competitors. Its people in washington, people in brussels, the regulatory authorities i vehemently agree, so well move on. Tesla is being blamed for the drop in home solar installations in the u. S. After years of double digit growth. It all comes down to teslas acquisition of solarcity which halted their expansion installations are down 42 year over year as a result. Aggressive marketing means theyre selling stuff too cheap. My guess is somebody ran the numbers, my god, every solar rooftop we install is costing extra. Finally, remember the skirmish between papa johns and the nfl over whether anthem protests were hurting pizza sales . Papa johns ran that back, but now sanderson Poultry Farms says their traffic is down because of demonstrations by some of the nfl players. Do you buy this explanation . No. No, i dont. Blame it all on colin kaepernick, hes an easy fall guy for the decline in chicken wing sales here is another hypothesis, its because buffalo wild wings. A substitution problem. Let me tell you about this its the old retailers, they always blame a bad month, its always the weather i dont know about the anthem protests were not watching a lot of football this year are you talking about you in the house . In the household. Thats because youre busy mowing your lawn the injuries are horrible i just cant there might be some sort of viewership decline, i dont know if its anthem protests specifically or do you eat chicken wings . I dont eat them at football games. So its irrelevant. Two heavy hitters on closing bell this week, we asked for your feedback on the interviews and you answered mef uresns a next. Keyboard clacking ] [ mouse clicks, keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] [ mouse clicking ] [ keyboard clacking ] 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. Right in the heart of the was in his financial crisis,e future. 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. Welcome back its time for our closing bell mailbox for a friday jackie tweeted, we have reached a true bubble status i dont disagree some of you reacting to our interview with jim chanos when he said tesla was worthless. Robert says its actual value is essentially zero until they start turning a profit if they didnt have someone as charismatic as elon musk leading them, they would already be out of business. Stocker said, his Short Covering will likely send tesla to 500 sean saying druckenmiller, who talked about being offended by carried interest, sean said, very good interview overall, good to see podcasts being utilized more on cnbc. Jonathan tweeted, this was an amazing interview, druck explained the tax plan without hyperbole. Social security number will collapse he says, ankkelly, please get yr own twitter name its live, mr. Druckenmiller was not live, but they can be tricky hes been around, he knows. What do you think about carried interest i agree with him. But, you know, the problem is its always people like Stan Druckenmiller who made their fortune off the carried interest it gives them more credibility. It does i believe theres a lot of things until the tax plan including keeping the carried interest that hopefully do not set us up for, you know, pitch forks and burning torches a year or two from now. Thank you for your responses. Send it over fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square tonight on fast, Bitcoin Futures on the cboe taking the market by storm this week as wall street gets ready for it to come to the next exchange. The cme on sunday. Just moments ago, Td Ameritrade announced they will allow Bitcoin Futures on monday. The future is kelly will tell y everyt
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