Transcripts For CNBC Closing Bell 20171220

Is outside the white house, elon is there in washington standing by with the latest on the tax bill itself. Lets start with you, what do we know about this event coming up . Reporter theyre not actually going to do a bill signing. The sbil not ready to be signed just yet, but this is very much a Party Atmosphere here on the south lawn of the white house. We have the marine band going through a list of Christmas Carols a few moments ago theyre serving hot drinking over here. Some of the vips and dignitaries have gathered in the audience. You can see behind me, republican members of congress lined up on the steps just above the south port co. Here on the south lawn of the white house. This is a unified Republican Party right now. Theyve been through a lot of tough infighting particularly over obamacare, this is a big win. This is a moment in which youve seen the president of the United States already today handing out praise to republican leaders, some of whom hes been attacking earlier in the year, they are getting ready for a big celebration here, if not necessarily a billsigning itself, bill it sounds like its getting under way. Here come the president , Vice President , followed by the speaker of the house and the majority leader of the senate. Lets take a look and see what happens here [ applause ] thank you even, very much these are the people right behind me, theyve worked so long, so hard. Its been an amazing experience, i have to tell you hadnt been done in 34 years, but actually really hasnt been done because we broke every record its the largest, i always say the most massive, but its the largest tax cut in the history of our country and reform but tax cut. [ applause ] really Something Special and i notice this just came out, two minutes ago, they handed it to me, at t plans to increase u. S. Capital spending 1 billion and provide 1,000 special bonus to more than 200,000 u. S. Employees and thats because of what we did. So thats pretty good. [ applause ] thats pretty good and i have a whole list of accomplishments that the group behind me have done, in terms of this administration and this congress, but, you heard it before, records all over the place. And that will continue and then some because of what we did, but 3. 2 trillion just think of it in tax cuts for american families, including doubling the standard deduction and doubling the Child Tax Credit the typical family of four earning 75,000 will see an income tax cut of more than 2,000 theyre going to have 2,000, and thats in my opinion going to be less than the average. Youre going to have a lot more than that. [ applause ] one thing very important for the farmers, the great farmers and the great Small Business owners that were forced to sell their businesses at Bargain Basement numbers, we have provided for the most part estate tax is wiped out. They can keep their farms in the family and that to me is a very big factor very big [ applause ] this is, this is going to Mean Companies are going to be beccog back, i campaigned on the fact were not going to lose companies anymore. Theyre going to stay in our country. And theyre going to stay in our country and youve been seeing whats been happening, even at this prospect, but they have tremendous enthusiasm right now in this country. And we have companies pouring back into our country, and that means jobs and it means really the formation of new, young, beautiful, strong companies. Thats going to be very, very important. The pass throughs, you know all about the Small Businesses are going to be big ben officiators. We are going to bring at least 4 trillion back into this country. Money that was frozen overseas and in parts and worlds and some of them dont even like us, and they had the money well, theyre not going to have the money long and so, its really [ applause ] i guess its very simple when you think you havent heard this expression, but we are making America Great again you havent heard that, have you . [ applause ] i want to i want to have them get up and get the glam oour an glory and i want to have a few come up, speak for a little while in short, the shorter the better, that way we can get all of you, well get everybody up, right . But, i want to thank Mitch Mcconnell, i want to thank what a job [ applause ] what a job and i want to thank paul, theyre going to speak, theyre going to say a few words, but paul ryan and mitch, who was a little team. We just got together and we would work very hard, didnt we . It seems like it was a lot of fun. Its always a lot of fun when you win. If you work hard and lose, thats not acceptable, but im just going to name a few names and then some of them will come up, but people that i saw so much over the last month and really over the last almost year, because you think of it, we havent even been a year. And we did the largest tax cut in our history we, i hate to say this, but we essentially repealed obamacare because we got rid of the individual mandate, which was terrible [ applause ] and that was a primary source of funding of obamacare and anwar, a friend of mine, oh, congratulations. And dan, wheres dan right behind you. And don too wheres dan . Wheres dan . Hes not here ill tell you, between dan and don, and lisa, youve done a very great job so a friend of mine called up about anwar, he said you didnt get anwar, and i said tell me about anwar. Weve been trying to get that passed, the whole country, the world, they tried in ronald reagan, they tried with the bushes, they tried with everybody, they never got anwar, but we got anwar in this bill. We have anwar, we have mandate, and we have the tax cut, and we have the reform. I mean, when you add up the size of this bill, its really great. Lisa, thank you very much. Lisa murkowski so john cornen, the great chairman, orin hatch great job, orin. Wow. Orin is a special person tim scott, who has beenso incredible hes going to say a few words. [ applause ] hes young enough you pick that up i have it mostly memorized but tim scott has been great john thune wheres John John John great job, john. Rob portman, a real student of the tax world. Rob, thank you very much [ applause ] i want to thank, i said hello to john corner, pat tumy, he has been we rode together in pennsylvania, but pat, wheres pat . Pat. Great job. [ applause ] he knows his business. Susan collins, we want to thank. Susans around some place. Susan. Thank you, susan all friends, i mean, i look at these people, its like were warriors together. Kristy, the house, we have kristy noman, diane black. Our great speaker, paul ryan, he is a great speaker [ applause ] great job. Kevin mccarthy kevin. We had fun, do we have a good time steve scalise, hes braver than all of us. Hes braver. Where is he . Oh boy, i dont know he had he had a rougher year than most of us, but its a hell of a way to lose weight, steve not a good way we love you, steve great job. Great job. [ applause ] kevin brady. Kevin. [ applause ] kevin brady. So maybe what ill do is and by the way, i mentioned at t, but Many Companies have come forward and saying theyre so happy and theyre doing similar announcements. Were getting rid of all the knots and all the ties and were going to youre going to see. Youre going to see what happens and ultimately what does it mean it means jobs. Jobs, jobs with jobs so its going to be really a special period of time, were in a very special period of time and its going to be even more so i want to thank everybody behind me maybe i could start with mitch, then paul, and then were going to have a few of the folks come up and say a few words and well have a little fun. Okay, thank you. Mitch, how about you start it . [ applause ] well, let me just say, mr. President , you made the case for the tax bill but this has a year of extraordinary accomplishment for the Trump Administration [ applause ] weve cemented the Supreme Court right of center for a generation [ applause ] mr. President , thanks to your nominees, we put 12 Circuit Court judges in place, the most since the Circuit Court system was established in 1891, you hold the record. [ applause ] youve ended the overregulation of the American Economy. And that coupled with what we did last night and what the house finished this morning, means america is going to start growing again. Thank you, mr. President , for all youre doing [ applause ] first of all, what this represents is a promise that each and every one of us made to the American People last year is a promise that is kept today [ applause ] something this big, something this generational, something this profound could not have been done without exquisite president ial leadership, mr. President , thank you for getting us over the finish line. Thank you for getting us where we are [ applause ] i just to want quickly just say a thanks, because this has been such a team effort from everybody, i want to thank gary kohn and Steve Mnuchin from the president s Economic Team for what they did to get us here i want to thank my partner Mitch Mcconnell over in the senate for getting us to where we are, and i want to thank these two chairman, orin hatch and kevin brady, thank you so much for your leadership on this. [ applause ] it is really simple, the message to the hard working tax payers of the america is your tax relief is on its way. That is what is happening here the message to the families in america whove been struggling paycheck and paycheck, your tax rates are going down and your paychecks are going up this is the kind of relief that americans deserve. This is the kind of tax reform and tax cuts that get our economy growing to reach its potential. This gets us better wages, bigger paychecks, a simpler tax system this gets the American Economy competitive in the global economy. This is one of the most important things we could do for all of the people we represent this is ep generational and were so excited that we are going to launch next year this fantastic tax reform so that the American People can see how we can truly reach our Economic Growth and our economic potential and if it werent for all the leadership of the men and women up here, this would not have been made possible, but lastly, i want to thank the American People. I want to thank the American People for putting their trust in us, for giving us this chance and this ability to make this moment possible. Thank you very much. [ applause ] a man whose been working very hard, thank you, paul. Very, very hard for a long period of time, and last night was very much a culmination, but i dont know if well have bigger moments, but we hope to were going to try a very special guy and great friend of mine, Vice President mike pence [ applause ] well thank you mr. President , thank you for those kind words, but more importantly, thank you for your leadership. Thank you for your boundless faith in the American People and thank you for keeping your promise to see this Congress Deliver the largest tax cut in American History before christmas of this year [ applause ] Merry Christmas, america members of our cabinet, leader mcconnell, speaker ryan, all of these members of congress, thank you. Thank you not only for being here today, for this special moment, but thank you for your leadership and support throughout this year i truly do believe, mr. President , that this will be remembered as a Pivotal Moment in the life of our nation. A day when the congress answered your call and made history but honestly, i would say to the American People, President Trump has been making history since the first day of this administration [ applause ] weve been rebuilding our military standing with our veterans and just last week, President Trump signed one of the Largest Investments in our National Defense since the days i of ronald reagan. Weve been defending our borders, upholding the rule of law, illegal crossings on our southern border are down by more than 50 and President Trump has been restoring american credibility on the world stage standing with our allies and standing up to our enemies as the president reflected earlier today, our nato allies are paying more toward their common defense north korea is more isolated than ever before this president s put iran on notice, and put the war on afghanistan on a path to victory. And thanks to the leadership of this commander in chief, and the courage of our armed forces, isis is on the run, their capital has fallen, and their socalled caliphate has crumbled across syria and iraq. [ applause ] but what brings us here today is that President Trump also knows that american strength starts with a growing American Economy. And from the first day of this administration, this president championed free and fair trade he rolled back federal red tape at record levels weve unleashed American Energy and today, mr. President , you fulfilled the promise you made to millions of americans struggling in this economy to cut taxes across the board. For working families and businesses large and small in august of this year, the president laid out his vision for a tax cut that would be a middle class miracle and thats exactly what the Congress Passed today. [ applause ] this tax cut will put more money of the pockets of the American People itll make our tax code more simple, more fair, more easy to understand itll make businesses across america more competitive to create good paying jobs and raise wages for working americans. I can tell you i served with him every day. President donald trump is a man of his word. Hes a man of action and with the strong support of these members of congress, President Donald Trump delivered a great victory for the American People [ applause ] we made history today. But as the president said when we gathered this morning a few of us with a few less hours sleep than usual, were just getting started. And i can assure you, this president , this entire administration will not rest and relent until the forgotten men and women of america are forgotten no more. So thank you, mr. President , thank you for your leadership, thank you for your love for this country and the people of this country. And i know in my heart, with the strong continued support of the members of congress who are gathered on these steps and with gods help, you will make America Great again. [ applause ] thank you, mike, very much. A friend of mine, a very, very special man, tim scott tim, id like you to say a few words. He came in and he would solve some problems and we werent looking too good a couple of times, and tim was really, really a tremendous help thank you, tim [ applause ] well, mr. President , during one of those conversations that we had, we talked about ways to improve distressed communities throughout this country. 52 million americans living in distressed kmuntds and we talked about legislation that could move those communities forward and you said yes and as a part of this tax reform package, the investing and opportunity act has been included which will bring trillions of dollars into poor communities because of your willingness to listen. [ applause ] the president said i have about 45en more minutes, so im going to get to 45 more minutes, so im going to get to my he didnt say that okay got it let me just say to those americans who are watching this process. This is not about washington its not about the left. Its not about the right its about single parent moms who are looking for reason to be hopeful in 2018. This tax reform plan delivers for the average single mother. A 70 tax cut. For the arch family whose work average family whos working paycheck to paycheck, looking for ways to be hopeful about their future, to have an extra night for dinner out at a restaurant this tax reform package cuts their taxes by nearly 60 . And because of folks like marco rubio and ivanka, when you think about the folks with kids in the households, this plan doubles the Child Tax Credit and makes about 70 of it refundable this is a plan that we can be proud of because it speaks to the hearts of every day americans [ applause ] diane come on up diane black, thank you [ applause ] thank you, mr. President. And i want to thank all of the folks that are standing behind me because it has been a team effort when we talk about doing tax reform and the tax reform and jobs cuts act, that is what the American People are going to benefit by and as tim has just said, it is the average american, thats the reason why we did this tax reform we looked at those right in the middle, those families that need the assistance and the help and the relief to be able to live their lives the way we are promised with the american dream. It is such an honor to stand here with the president of the United States, the Vice President of the United States, who have been an integral part in making sure this happened kevin brady, who i know hours and hours and hours worked hard to make this happen and what was really a short period of time. And some of the folks that are being left out right now, and i know we have thanked them before, but i want to thank them publicly and that is all of the staff that has worked so hard in both the house and the senate to make this happen. [ applause ] now, we can say Merry Christmas to the American People because we are giving them a huge gift for christmas. A break in these taxes and an opportunity for our jobs to grow and to give them a bigger paycheck and so, i want to say thank you to mr. President , thank you President Trump for allowing us to have you as our president and to make America Great again. [ applause ] thank you, diane, very much and we can say, Merry Christmas again. People are saying Merry Christmas again. And we like the sound. I want to ask Lisa Murkowski and dan sullivan to come up from alaska theyve been really working, and if don young is here, and i think hes around here, the three of them. Come here. Come here. Dan, get over here yes, sir. Lisa. You get right here. Thank you mr. President , i dont know if youve recognized, this is a very historic day, of course, but its also the beginning of winter doesnt feel like it right now, but the winter some cities is the shortest day, the darkest day, and for us in alaska, weve had some pretty dark days recently but with passage of this tax bill, with passage finally, almost 40 years later, to allow us to open up the 1002 area, this is a bright day for alaska. This is a bright day for america. [ applause ] so we thank you for that we thank you for that. Think about it, 31 years weve been working on tax reform 38 years now to open up anwar. This has been a multigenerational fight, and i look to some of our friends from alaska who have come 5,000 miles to be here for the vote last night and today. [ applause ] to those to those who live there, to those who raise their families there, and to those who are looking to live for generations, know that our promise to you today is a bright future, one where we care for our environment, where we care for our people and we also care for our country and providing a resource that is needed not only by the United States, by alaskans, but by our friends and allies this, mr. President , is what Energy Dominance is all about. So lets go. [ applause ] thank you well, mr. President , i want to thank you and your administration i want to thank secretary zinke who is doing a great job, senator murkowski said is very well this administration has come in and recognized this incredible, incredible resource that we have in our nation. Developing our energy is good for jobs its good for energy security. Its good for manufacturing. Its good for the environment because we have the highest standards in the world, and its very, very good for our Foreign Policy and National Security mr. President , sir, you release your National Security strategy just a couple days ago, and in there, you talk about the economy, which is what this tax bill is all about, but you also talked about Energy Dominance. And i want to thank you, i want to thank you on behalf of all alaskans and the American People, because its the right policy and were finally, finally doing it thank you, sir [ applause ] thank you, mr. President. I want to thank all these guys standing behind me these ladies, the people that helped me do this, this is 37 years i tried to get this passed it proves one thing, perseverance overcomes intelligence any day of the year but i want to thank the president , i want to thank you, mr. President , and my two senators, this is a team that cant be beat. Will do whats right for alaska, this bill whats right for this nation and the great land will be great again thank you, mr. President [ applause ] hes a pretty popular guy, huh . Pretty good. I want to ask orin hatch, a spebl friend of mine, i can tell you that, somebody that spoke really well of me when it wasnt exactly the easiest thing to do. He was just always in there, always fighting for all of us. And did a fantastic job as chairman, orin, say a few words, please [ applause ] mr. President , i have to say that youre living up to every, everything i thought you would youre one heck of a leader. And were all benefitting from it this bill could not have passed without you. Couldnt have passed without the alaskan delegation, couldnt have passed without the leadership in the house and the senate, paul ryan, and Mitch Mcconnell and the other leaders as well. All i can say is that were making headway, this is just the beginning. If you stop and think about it, this president hasnt even been in office for a year and look at all the things hes been able to get done. By sheer will in many ways i just hope that we all get behind him, every way we can and well get this country turned around in ways that will benefit the whole world. Above all, benefit our people and bring us all to a realization of how really Great America really is and how the rest of the world depends on us. I love this country. I came from very humble roots. And i have to say, that this is one of the great privileges of my life to stand here on the white house lawn with the president of the United States who i love and appreciate so much, and with these wonderful colleagues and cabinet members who stand behind us. And to see all of you and realize that you care too. All i can say is that god loves this country, we all know it we wouldnt be where we are without him. And we love all of you and were going to keep fighting, and were going to make this the greatest presidency that weve seen, not only in generation, but maybe ever god bless all of you [ applause ] paul ryan just said how good was that another very special man worked so hard, knows it inside out and backwards. Kevin brady. [ applause ] thank you okay, guys thank you, mr. President this is a historic day its an exciting day and i knew i was going to be here with you to mark this momentous occasion, so i wore my Houston Astros tie because theyre still the champion of the world series i figured today you would give me some slack on that. Look, this is a historic day in so many ways and it didnt happen just by itself people often ask when did you know, or when did you know tax reform could be achieved in america for the first time in 31 years . My answer is always the same, november 8, when President Trump, you were elected president of the United States thats when i knew it was real [ applause ] and when you put together the great ideas on tax reform from inside and outside congress, and i see many of you here today with us, remarkable leadership and courage from the men and women behind me in the senate and especially my colleagues in the house. When you put together remarkable leadership in the house and the senate of the work that was done in the white house, gary and steve, Vice President pence, and mr. President , youre willingness to make this your commitment, to go across the country to sell the need for tax reform and stay at the table with us and on the phone with us to get this done, but for your leadership we would not be here today. Thank you so much. [ applause ] and let me finish by speaking directly to the American People, there are three dates you need to put on your calendar. The first is new years day because on new years our country will have a new tax code for a new era of american prosperity new years day [ applause ] in february, look to your paychecks, hard working americans will see the result of the hard work of this president in this congress to make this tax reform possible, it will show in your paychecks and april 15, that hated day, this april 15th will be the last time you ever file your taxes under this horrible, broken tax code because youll have a new one for the future of your family and your Small Business this is [ applause ] so this is a great day for our country, a great day for our economy, and a great day for america. Thank you, mr. President [ applause ] thank you did a fantastic job. And another man who was with us all the way, no matter when i called, he was there or hed get back within minutes, Kevin Mccarthy [ applause ] to the president and Vice President , during that campaign, you listened to voices no one else was listening to. You listened to those that were trying to get a pay raise or that parent that was fighting for their children or to that person who always dreamed of being an entrepreneur creating a Small Business like you did, mr. President and you know what, for all of those people, you heard them we would not be standing here today if it wasnt for you doesnt matter if you were overseas fighting for america, so many people back here got your phone call fighting for tax reform this is a big day for america. This is americas comeback [ applause ] come february, check your check. Because that will be the pay raise of the vote for donald trump. That will be the beginning of the next century, americas century. Thank you and god bless. [ applause ] so, i just want to conclude by saying this will indeed be a very big day when people look back at our country. Its a whole different attitude, whole different way, and i really want to end by looking back and thanking all of those people standing behind me that worked for years, this was the culmination of a few months work, but theyve been working on getting this done, whether its mitch or paul or kevin or kevin, or orrin, they have been working on this for years, years and years, and i just to want turn around and i want to thank you them all they are very, very special people thank you very much, everybody [ applause ] the celebration concluding there on the south lawn of the white house following the passage of the tax bill. Yes, now it wont actually be signed as we are aware this is not the signing today. By the way that matters, the reaction on wall street, the dows down about 12 points, evens been kind of running in place today, other than the transports index which is up 100 points, new record high this morning. I dont know if you noticed also, among the top gainers in the s p today, good number of them at the very top are oil and gas companies. Yes as well, which sing very notable. See a 1 billion boost next year by the way one thats the same as a 1 increase in the price of a barrel of oil. So its a lot, but also these things move around quite a lot i was going to mention we have an announcement from at t just prior to the ceremony saying its going as a result of this tax perform and cut to invested additional billion dollars in cap x next year and provide 1,000 check to its employees now it said, if the president signs this bill before christmas, it will be able to deliver those checks during the Holiday Season it doesnt appear all that likely right now though. Theyll get it shortly after then we would imagine. We are standing by with much more reaction on all that weve just seen, eli that rally reminds me of words that President Trump, love fest, you saw a lot of congratulations, hugging, shoutouts there. You heard paul ryan saying the president has shown exquisite leadership the president calling senator orrin hatch a special friend and then orrin hatch becoming a little bit emotional it seemed as he said he loved the president and this couldnt have been done without his leadership now the president has been sparring partners in the past with some of the leadership on capitol hill, so this was a moment of unity for the Republican Party as they really look to this piece of legislation, both doing tax reform, the individual mandate, repealing that, opening up the anwar for drilling, the drink tech that of republican agenda items here as they look forward to 2018. Lets bring eamon in. Thank you. The ak kra moeny of the past, boy, way behind them now it looks like, huh . Reporter yeah, thats absolutely right, what a difference the victory makes a z you heard the president acknowledge, picking up what she was saying, this really was a praise fest for the president here each one of the lawmakers who was invited to speak got up and talked not only about the policy victory, but the Republican Party just had, but the president s personal victory, praising him for his leadership, his tenacity, you saw the relationship between Mitch Mcconnell and the president of the United States much different today. Member the president s former political advisor steve bannon has been overtly campaigning against Mitch Mcconnell and granting him as sort of a wing of the republican establishment that needs to go away. Today the president though saying very much Mitch Mcconnell, heck of a job here pushing this tax bill through. So perhaps bygones are bygones and this victory will help paper over some of the riffs within the Republican Party or perhaps this is just a temporary ceasefire in that ongoing debate within the party of which direction theyre going to go. This was a very united Republican Party we saw here today. I agree with elon on that. Couple reporters here gainly trying to get questions to the president at the end, but the marine band struck up tunes just as the president was leaving made that nearly impossible. The president here getting the praise from congressional leadership, getting the legislative victory that he wanted and not having to take any of the questions on any topics he didnt want to have to take in the white houses perspective, theyll say that was pretty much a perfect day here in washington real quickly, one note of discord that emerged this morning although you didnt see it, gary kohn, largely responsible for martialing this through was asked, why carried interest was left the way it was in the bill. Weve heard a number of guests saying this shouldnt have happened, you shouldnt have kept that lower rate in tact for people in those city industries, and he said, we tried. He said the president call med on monday and asked why is it still in there and he pointed the finger squarely at capitol hill and said, its their fault that this made it in implying that the lobbying power there was just too strong to overcome reporter squarely at capitol hill on that one, a sign that hes not totally angry about is that he didnt name any single individuals being responsible for making sure that carried interest stayed in there thereve been a lot of questions about that provision, how did it survive . We dont know the real answer to that yet somebody put that in the bill and will have to do some forensic investigation to figure out who made sure it stayed in and was protected here, even though washington suggested it ought to be out. Gary cohn there sort of suggesting it was somebodys fault on capitol hill, but not saying whose fault it was. Not naming names. Please. Thank you. Reporter save that for his book yes weve got about 29 minutes left in the trading session right now. The dows down just eight points, its been hovering above and below the unchanged level. S ps positive again, the ruszle is positive no records that the point as we head towards the close. With the pending tax reform, conventional wisdom that apple and microsoft which had huge profits overseas will be big winners. There are others that could benefit too. Well dig into that coming up. 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. [vo] progress is an unstoppable force. Can we do that . The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. Today passage of the gop tax plan means the clock is ticking on mown saving moves you could be making now. Jiening us with the details, correspondent sharon epperson. Sharon well the year end countdown is on to make some valuable tax moves that could impact your tax bill in april. Start by paying your state income taxes going forward, the deduction for state and local income taxes, plus property taxes, will be capped at 10,000. Unfortunately if youre in the amt, you cant take advantage of that tip, but if you generally make an estimated quarterly payment for the Fourth Quarter on january 15th, make it now this will keep that money from being part of next years cap. Depending on where you live, you may also be able to prepay some of your 2018 property taxes. Another tip, boost charitable donations. The standard deductions, its going to double which means fewer tax payers will want to itemize. And if you dont itemize, you cant use this deduction so increase your charitable donations before the end of the year a donor advise sfund a good option, contribute now and receive a Tax Deduction for 2017, but then distribute the money over time. Now many deductions are disappearing altogether, youre going to get a tax break from miscellaneous expenses that could happen for 2017, but not beyond that. And that includes tax prep and investor advisement fees on job hunting expenses you want to prepay those 2018 fees before the end of this year so you can still get that deduction. And finally, defer your income, theres still going to be seven tax brackets, but many tax payers will be in a lower one. So you may to want ask your employer if you can move your year end bonus, hopefully youre getting one to january to take advantage of the lower rate. And if youre a Small Business owner, send out those invoices for work done this year in 2018. Now these moves can really help, but the countdown is on, youve got act fast before december 31st bill, kelly. Still making a list ive got to get that year end bonus moved to the next year exactly all of us have to do that, right . Dont we all . Thank you, sharon. Good stuff, thank you and again, i learned as much by doing advisor fees were deductible who knew . I bet the advisors knew 13 minutes to go, dows down 17. S p is fractionally lower and the russ sl up 4 today mentioned this a while ago, energy best performing sector today, potentially on hopes for tax reform benefits. The stock that could benefit the most when kelly and i come back. Stay tuned there he is. 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. So energy is up today. We mentioned that before the Energy Sector and the s p up 1. 5 , its the worth performing sector though this year, down more than 6 so were wondering whether the new tax bill can help Energy Stocks bounce back as we head into the new year here yeah, joining us now discuss that is pablo from Raymond James and angelo lock it you both pablo, weve seen estimates that the tax bill alone could be a billion dollars of net income for oil and gas next year, what are your estimates saying . Well a billion dollars is really peanuts for a sector as massive as this one. And let me just say right up front, energy is the least affected of all the sectors of the economy from tax reform. The reason for that is simple, most u. S. Energy companies do not pay tax. Or at least they do not pay cash income tax thats an important distinction. The one big exception to that is refiners, Refining Companies will benefit because theyre almost all domestic and they actually pay cash tax, but when people think of the producers, the enp companies, et cetera, those guys really do not pay cash tax in any significant amounts so they dont stem to benefit, but theyre not any worse off either yeah. Angelo, i mean, i was just pointing out and were going to show this in the closing countdown as well, the three top performers in the s p 500 today are oil and gas companies. Youve got pioneer natural resources, Chesapeake Energy and contra resources so if the savings from the tax bill are a drop in the bucket, why are these guys performing so well today, bearing in mind that one day is not a trend make, i realize. Well, so my coverage specifically is on the renewable side, the solar side of things so im more than happy to comment on that side of the things if youd like. Okay. Ill tell you what, let me go back then to pablo, youve made established that youre not impressed with what theyre going to save, but seems like wall street is what do you make of that well, the reason the oil stocks are up today has absolutely nothing to do with tax reform theyre up because the price of oil is up. Wti crude is up to almost 60 a barrel today, thats two and a half and that explains why the oil stops are up wait a minute, weve been stuck below 60 a bill on wti forever, and you know, wti today is up 52 cents im not trying to poke big holes in your argument here, but it seems like somebodys buying these stocks today for some reason and im just trying to figure out what that might be well, you know, today was the latest d. O. E. Inventory number and it came in bullish, its been bullish for many months now, Energy Stocks have been generally bouncing back, at least going back to the opec meeting in late november so, today, you know, is just one, one example of that commodity trade, but to be clear, its a commodity trade, not a tax trade. Okay. Angelo, i am curious what the solar impact will be this is an area where there is so much help given by incentives over the years, and now theres all these issues about, you know, chinese dumping. So how do you see the industry emerging after the tax reform passes yeah, absolutely, so as far as the solar space is concerned, i mean the life flood of the industry continues to hoover around access to financing and tax equity has been a huge part of that now, that being said, you know, this bill reduces the Corporate Tax rate to 21 from 35 , youve also got a very complicated beach, beat provision within the tax bill which actually makes it negative for many multinationals to benefit from, you know, the full benefit of the solar side of things. As a result of that, you know, we expect the actual bill to be a net negative, but that being said, all the tax credits remain in place and as a result, avoiding the worst case scenario, a Solar Companies right now should be doingsumme assaults given what somer salts given whats come out of the bill there given the risk. That is interesting the point is anything that lowers the tax rate and incentives to get that break, right absolutely. So overall, what youre essentially looking at is a smaller pool of tax equity vefrss that could benefit. Interesting stuff, thank you both thank you, guys well come back. The market on close orders were 700 million to sell, again, to the sell side. Weve seen that a lot this month. The dos wn5,ewdo 2 wll have the closing countdown in just a moment ged the game for us. We had this plan to go to the hottest place on earth, harness the energy from the sun to develop popcorn. We thought we had the right equipment, we quickly realized we needed more. We were able to send a Wire Transfer to a local vendor and get more Solar Cookers delivered, right here in death valley. Manage business expenses from virtually anywhere. The chase mobile app available with business checking. Chase for business. Make more of whats yours. Hey yeah . I switched to geico and got more more savings on Car Insurance . 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Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Just inside the two minute mark here. Bob joining me here on the floor of the New York Stock Exchange the rally for taxes that happened monday. Were waiting for the sell on the news the high was yesterday right at the open we opened on the upside, and they basically sort of selling into the whole thing ever since. We were 20 points higher on the open yesterday im not saying its a big sell on the news. Obviously weve lost momentum. Here are some areas where it would appear that theyre responding to the tax bill, and i know that it was disputed by our guest just now, the oil analyst. The three biggest gainers in the s p today are oil and gas stocks along with bank stocks has beneficiaries. The other area thats been sbonding all week is the long end of the yield curb. Thats been rising notably today the ten year yield got to 240. And the bulls are saying, aha, with the bond guys are starting to say, higher levels of Economic Activity theyre anticipating that. 249 there were seeing a steepening there. Can we just do our 20 seconds, ten seconds on bitcoin. Ice the Parent Company filed far bitcoin etf around bitcoin futures. Of course that game was just started. No doubt thatll come up on the historic day as we heard in washington for the second hour of the closing bell. Kelly, see you tomorrow. Welcome to the closing bell. The gop has passed the tax reform plan. Now thisafternoon we heard in the last hour from the president and gop members of congress. He was thanking, heres the reaction on the close on wall street the dow dropping 28 points the s p dropping about two the russell 2000s up about three and a half points. Eight points off the closing high all the closing highs we have from december 18th well see if this has been a type of event here today the president saying tax reform will bring back 4 trillion worth of Companies Overseas cash and grow the economy some are warning it will add trillions. The wall street journal has pinpointed one tax trick will boost growth and shrink the trade deficit and hell be here to tell us what that is coming up joining me now, Michael Santulli here along with stephanie tulane John Augustine as well hes the cio at huntington bank. Welcome everybody. Dinsz was the biggest loser. Big winner and the biggest loser was red hat after its earnings release. And in d. C. The tax bill officially passed through the house and senate the president just finishing up his remarks at the white house praising it as a historic bill strategist raising prices as a result tony guire, 3,100. Michael, what do you think i think its interesting, the contrast between the two changes in the strategist targets and shows you how theres really no clear affect in aggregate on how its going to affect not just corporate earnings, but what investors are likely to pay for the earnings essentially we doernt know how much theyre going to allow. Were seeing on investments or higher worker pay, and therefore what does it mean about what the market is willing to pay for this essentially onetime bump in 2018 earnings so its a net positive i think on both fronts, how much of one is unknown . Hold that thought we have another company thats now saying it will be paying out bonuses aefr the tax bill package. Passage and package. What is it theyre going to raise its minimum hourly wage for all employees to 15, and distribute a onetime bonus of 1,000 for more than 13,500 employees ceo of fifth third saying here today that newly passed tax legislation includes a reduction in Corporate Tax rates designed to spur Economic Growth, he said the tax cut allowed the bank to opportunity are oe evaluate the structure and share some of the benefits with its talented and dedicated work force theyre not reacting down about a third of a percent raising the wage to 15 and adding onetime bonus of 1,000 for more than 13,000 employees, kelly, back to you wow meg, thank you Christmas Gift there at t just made a similar move earlier. We have those details now. Kelly, at t announced it will invest a billion dollars in the u. S. In 2018, also for 200,000 workers, it will provide them a 1,000 bonus for President Trump pointed to this announcement from at t as an early sign of success during a Victory Party with republicans from capitol hill while they were at the white house. Its been an amazing experience, i have to tell you hasnt been done in 34 years, but actually, really hasnt been done because we broke every record its the largest, i always say the most massive, but the its the largest tax cut in the history of our country and reform, but tax cut. Now, it isnt quite the biggest tax cut ever, but it is pretty big one thing is does is lower the corporate rate to 21 , but there are also things that companies are giving up in that tax bill including the corporate amt, that is going to go away the worldwide tax system is being abandoned, and this new bill would also put some limits on the amount of the deductions that companies can take for the interest that they Pay Companies however are getting some big tax breaks as well. The largest one being full and immediate expensing for five years. That will then gradually phase out. Also to a territorial tax system and with that comes new repatriation rates, 8 on liquid assets, 15. 5 on cash, of course there is a big debate on what companies are going to do with that extra money, but what we saw today, companies do appear to be driving up wages as part of that benefit theyre getting from the tax bill. Back over to you thank you very much now, stephanie, we can be a little cynical for a second, this is great news for the workers who are going to receive it obviously, at t also needs a big takeover approved by d. C. Right now. Obviously wants to show look, were look at the impact were having on our work force were not doing a megadividend, not a megabuyback, maybe that fifth third totally different situation, although perhaps again, a bank doesnt hurt to sort of be out there saying, you know, look at our generosity and look at what were doing with this revenue i mean, is it too scynical to think its posturing or will we see all sorts of companies doing the same thing i think its both i think it is posturing and positioning for sure they want something, i think but i also think its really good news. I mean, we have sat here all year long discussing and debating whether or not this tax bill would lead to better growth would it lead to companies actually investing or would they just put it in a buyback in a dividend, right . And this is encouraging because it could lead to better growth and weve talked about maybe its not that 4 that larry kud low often suggests, but if its 3 for a sustainable period of time, i think thats very good news and i think thats why today even though the Market Reaction was very muted underneath the surface, there was a lot of stuff happening. Ten year at 248, Energy Stocks finally participating, so its broadening out of it transports. Transports, industrials, materials, laggards are really picking up the slack if you will and being the leadership, while financials pause, thats probably fine, and thats good and healthy, but i think overall its pretty good news. And john this debate has been going on between how much of the benefit will be shared with workers versus shared with investors and even some who argue itll be in the form of price cuts what does this say to you these announcements today . We say these are good announcement, we say theres going to be probably quite a few more of these announcements. It seems like ,000 bonus seems to be the marker laid out there right now. And it looks like this administration is going to achieve its objective to speed up and elongate this economic expansion so in general, we say this is bullish for American Business and thats good news. John, is there anything about this, lets say some of your favorite names that you follow right now are investing in is there anything about this as a shareholder you dont like as a shareholder, no, theres nothing i can think of off the top of my head personally, we havent talked about it as a shop, but personally, off the top of my head, knowing property visions that i know, that are currently in the bill, we cant pick out areas yet that we dont like about it or effects to the economy or effects to certain groups that may not be lets say positive to their earnings or positive to their experience to employees and customers been but im sure theres going to be something come up as more of details come out of the bill that well be looking at yeah, for sure. Meantime, we should talk about the latest bitcoin news today. Etf is looking more likely after our New York Stock Exchange apParent Company ice filed with the fcc to list to pro shares of etfs traders to bet on how volatile the future contracts would perform. No word yet if theyre going to get approval, but its interesting that ice which has been on the sidelines while people have rushed to offer trading platforms or some sort of thing for bitcoin so far are say ugh okay, well if its futures, then we would like to be the ones offering the etfs. Look, the institutions meaning the exchanges are rushing ahead because this is one source of excitable growth at the retail level if they feel like they have to participate in, honestly before the rules of the road are set so i understand that okay, fine, we now have a structure in the form of futures that allows us to have some kind of per view over how these trade i still think it row mains to be seen if this is a preferred vehicle for the average person thats been feeding the frenzy who might to want keep it on their credit card at coinbase. If you want to be do that, just own it and maybe no one feels like its the right time to be all that shorter nows if expensive with the marginal requirements. Maybe this will help the liquidity in general its very hard to value this its hard to know where you want to buy and where you want to sell it, there is a lot of speculation still involved so, i am still watching it very carefully. Im not dismissing it for sure, but as an veinvestor, im not putting my money in there. It would be a hard sell for clients to say, im sure theyre pushing you on it to some extent, yeah, i think the intrenzic value is important its a hot topic at the dinner conversation or cocktail hour i remember when etfs are created for equities they existed for you tell me. Listed exchanges for centuries yeah. Before nay actually finally forced in the etf, this strange animal and now were just kind of saying, look, lets slap it up on the board and never mind the fact that we dont really know kind of the Ownership Structure and all of the rules of how youre supposed to be trading the underline. I think thats fair raises a whole other layer of questions. Quickly, john, go ahead real quickly. The way we look at this, this looks like its going to be an etf with derivatives of the synthetic instrument with no regulatory basis behind us were having problems there. So its a brilliant idea. Got it in that corporate news, chipotle did close leer by more than 4. 5 at a los angeles location. We take any report of illness seriously. As a precautionary measure, weve implemented heightening procedures that the restaurant which we do as a matter of policy if we ever receive reports of illness, even if they are not substantiated. But there are websites now where people report this stuff its a Cottage Industry that follows chipotle where it seems legit reminds people maybe they havent totally fixed the problem. This is obviously kind of a workshop response from chipotle, very different from the initial response of the company back when these reports first emerged. To me the big takeaway, you cant evaluate the legitimacy or whether this is a bigger problem for the company, but the stock did not manage to rally on bad news the stouk is still vul noeshl reports on some level. Its in a nasty town trend, at least until further notice does still show you that its a vulnerable situation owner of chipotle no, not an owner. And theyre still looking for a ceo. So even when they do hire a ceo, then that persons going to have their own game plan, and that turn around. So i just think youve got time on this. It very may well be fixable, we dont know what the plan is at this point and in the meantime, traffic has been slowing anyway. They have tough comparisons from a year ago and stock trades at 33 times forward estimate, so its not cheap. I dont have confidence thats the thing. The valuation just has not yet shrunk into the region nabl zone we told you about those earners yesterday, issuing strong guidance. The beat easing investor concerns that the boom in chip demand has peaked what do you think . Well, stock was down 20 from its highs so the expectations were a little bit lower, but that said, its still up 110 year to date. I thought the quarter was very good both in hand and dram. Margins were better than expected better than feared for shorter gaining markets, stock five times forward estimates. It is a cyclical company, its not going to get a rating to a much higher multiple it certainly could see a little bit higher of an expansion, youre not going to see a double digit mutt on this thing. It was good and again, slow expectations headed in, i can understand why it rallied. All right, skbraun, what do you think . Good. Good quarter stephanie mentioned, dram pricing is up, margins were up and the stocks had a good run. And she is we would agree with stephanie though, it is a cyclical stock in many respects. Mike, fig youd add before we move on . Not much, its a boom, bust, stock and the guidance gave you comfort that the bus is not right around the corner. That has been the fire, the fiscal 2018s peak year. Lets talk about fedex after the Company Reported strong earnings yesterday as well the stock closing at more than 3 today and fedex pushed the dow transports to another alltime high. Fedex ceo fred smith saying the skpaen anticipating another record setting Holiday Shipping season and again, transports were up big time today when the other averages didnt move all that much yeah, and they are increasingly, i think, tuned into the shippers and to the e Commerce World look, fred smith didnt say its going to be a record setting economist. Every year is a record setting e commerce its not news. The market still likes the dynami dynamics fed sex a big Company Fedex is a big company thats always investing. How the tax cuts are going to be fuel for the kpoel economy i think right now, the market is willing to love it they did talk about a huge benefit from the tax bill to their earnings next year 17 times forward to Something Like 12 or 13 times forward, its a much more multiple. I really think that that story has a lot of drivers to it though, they did have the tnt acquisition, theyre seeing synergies and thats just beginning. Express margins were better than expected ground margins, not so much. Thats the era of improvement. And the stocks still trades at a discount to ups who was having all kinds of execution issues. I like this story a lot. All right and theres the shares for you guys thank you. Stephanie link and john aug streen joining us augustine joining us tech is the best performing sector so far. Which could be big winners and losers from the tax changes next and bed bath and beyond is expected to report earnings. Instant reaction to the numbers for the latest read on retail in just a moment. And we want to hear from you, contact the show, twitter, facebook, email youre watching cnbc, first in business worldwide us. Its what this country is made of. But right now, our bond is fraying. How do we get back to us . The y fills the gaps. And bridges our divides. Donate to your local y today. Because where theres a y, theres an us. Feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Revenue at 2. 95 billion versus assessment of 2. 9 billion. And that important Comparable Store sales metric only declined 0. 3 in the quarter for bed bath and beyond versus expectations of 2. 4 decline. You are seeing Bed Bath Beyond up after hours on that beat across the board well take a listen to the call later and bring you anymore headlines, back to you pretty big move for the shares they werent positive thats right. Its a bit much to ask in this category. Its the stock is fighting its way back to the huge drop it had the prior quarter it dropped from around this level to below 20. It sort of said look that was an overshoot. I think a lot of physical retailers are in boat. The pie seems like its big enough this Holiday Season for everybody to have it and the real question is after everyone got hammered so much, theyre having a little bit is it if youre priced for kind of rapid extension and it looks like you stabilize for a while, then the stock is there far while. And still a big question about january. The new tax olympian have are a impact its not clear who benefits most big tech or smaller . Itll drop from 35 to 21 . Thatll benefit smaller firms doing business in the u. S. There will also be a one time rate of 15. 5 . And thatll enable firms doing business overseas to bring home billions joining us now to help figure it out, chief strategy at ghb insights and tom forte, Consumer Internet analyst guys, thank you both for joining us, dan, as far as you can tell, who are the winners here yeah, i mean, we think 300 to 400 billion ultimately gets repay treuated really front and center is apple. I mean, unless cook decides to buy a country, we really think their buybacks, dividend, and innovation, i think thats where apple, cisco, and alphabet those are really the ones front and center here in terms of the beneficiary. Then go down the list, you have facebook, qualcomm, number of other companies, you know, including microsoft that we think, you know, really benefits here and i think its something why where investors are factored in, but theres still skepticism how much money actually gets brought home we think its about 300 to 400 billion. Thats going to be a key focus in 2018. Dan, the journal the other day raised the prospect of microsoft in particular facing tougher times because it has very low overseas tax rates right now. That in some cases that might go up or might not be as favorably looked upon. This all as good as it seems for these companies who do a lot of business overseas . Yeah, i think you started to see with facebook playing some tax poker, you know, in ireland and microsoft youre seeing it too. I think the big thing here is that now the overseas tax, its not as significant given what were seeing on the repatriation side i think there are some small head winds overall, this is a major positive, especially lir for large cap tech, we call it 7 to 800 billion overseas and we think roughly about half of that comes home, and i think investors really start to see the benefit. All right, tom, meantime, youre looking at Companies Like grub hub, why . So if you look in small cap tech, you basically have two camps, Companies Like grub hub and etsj that renovate from the u. S. And tax payerers that stand to benefit from lower Corporate Taxes. Then from the other side, you have other small cap tech Companies Like Park City Group or technology that have net operating losses arent currently paying cash taxes and dont stand to benefit from lower Corporate Tax rates. In small cap tech, some who stand to benefit and some who may not benefit from lower Corporate Taxes. Tom, i wonder if theres another angle to this smaller cap tax stock and that is the debate if its an mna boom with some of this greater availability on the one hand, look, the Large Companies that are acquirers have not lacked for cheap capital. They could have bought anything that they might have wanted. Do you think this would be a catalyst potentially for another round of deals absolutely. I think anything that gives a facebook and apple and amazon, a google, more money, could lead to more mna. I think youre going to see a lot more mna in the tech space off lot of attractive small cap tech stocks that are proving theyre able to survive, if not thrive even against competing against facebook or google or some of the Larger Companies i agree with your assertion that yes, lower Corporate Tax rates could to lead more mna and dan, you know, its interesting to think through because you mention that acquisitions might be a result of bringing all this money here. You know, a lot of investors are weary about that exactly how are you spending all of this money . Is it really a good time are these really the right valuations what kind of mna would you like to see yeah, i think really, especially when you look at large cap tech, its really expanding the tentacles into some areas like you look at artificial intelligence, you look at cloud computing, you look at some areas of iot and its really them, especially making sure. Theyre making the right acquisitions to your guest point, not just doing it because they have the cash thats where i think youll see companies right now, theyre going to be on the white board, looking at buybacks, accelerated buybacks, dividends, mna, making sure they dont pay up and they dont just do it because they have the cash this their back pockets, i think test definitely going to be something to focus on and you will see an acceleration at mna and more shareholder pressure given some of the Bank Accounts that are going to be bubbling up. All right guys, thank you. Dan ive success don forte taking us through with the impacts. President trump celebrating the passage of tax reform in congress coming up, why the tax bill could also end up cutting the massive u. S. Trade deficit but first crypto currency after a sharp increase in a bioitcn cash our takeaway when we come right back news anchor downtown traffic is still bad. Expect massive delays. news anchor 2 all lanes on highway 50 remain closed at this hour. news anchor 3 the stats are in and this city leads with some of the worst traffic, with the average driver sitting in gridlock the equivalent of three days a year. For every hour that youre idling in your car, youre sending about half a gallon of gasoline up in the air. That amounts, over the course of the week, to about 10 pounds of carbon dioxide. Growth is good, but when it starts impacting our quality of air and quality of life, thats a problem. So forwardthinking cities like sacramento are investing in streets that are smarter and greener. The solution was right under our feet. Asphalt. Or to be more precise, intelligent asphalt. By embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to study and analyze the flow of traffic. Then, we will take all of that data and we use it to optimize the timing of lights, so that traffic flows easier and travel times are shorter. And sacramento is just the beginning. With advances in cameras, sensors, and network speeds, we have the ability to make cities smarter, and happier. What excites me about this technology is that were using some of the most cuttingedge machinelearning, and ai, to help solve the most fundamental challenges that cities face around the world. Who knew asphalt could help save the environment . lani and the possibilities are endless. Time now for a cnbc news update, lets get to sue herrara. Heres whats happening a this the hour. At his cabinet meeting, President Trump threatening to cut off american aid to any country that votes in favor of a resolution at the u. N. General assembly, denouncing his recent decision to recognize jerusalem as israels capital. For all of these nations that take our money and then they vote against us at the security counsel, will they vote against us essentially at the assembly they take hundreds of millions of dollars and even billions of dollars and then they vote against us, were watching those votes. Let them vote against us, well save a lot we dont care. Democratic senator al franken of minnesota who announced his plans to resign earlier this month, after allegations of Sexual Misconduct will resign on january 2nd. Thats according to his Spokesperson Senate designate tina smith is scheduled to be sworn in on january 3rd. And the french are going to have to pay more for a delicacies a bird flu outbreak decimated flocks of ducks which led to a plunge in production the price for fra gra is up almost 30 from last year. And a drought is limiting the harvest of truffles in Southern France thats the news update this hour, kelly, back to you ill take your word for it. Sue, thank you very much cant make that up. Sue herrara lets take a look at how we finished on wall street dow. S p down two, the russell small gain, the nasdaq was lower again, not a Huge Movement after tax reform bill was finally passed the transports by the by that an alltime thigh morning, close to 92 points and fedex should help that shares of bed, bath, and beyond are lower after trading. You see the spike there we covered when it was up 7 , now its down about 2 meantime, Fifth Third Bank announcing plans to give bonuses and wages to a majority of its employees because of the tax bill passage in congress it follows a similar announcement this afternoon. Not much response in fifth third shares there lets get to the other big stories today now in the rapid recap. Its not crazy to have 1 of your net worth in bitcoin. If you look any sector of the economy, since the beginning the financial crisis, the one sector that has, you know, still infini infinite, still in crisis as shares of fedex alltime leaving the transport sector higher and saying its on track for a record Holiday Shipping season the fundamentals are really strong we share that we grew revenue 25 year over year this quarter we shared that we added, we added more active clients than weve had since q 3 of 2016 and 30 year over year client growth we like the simplicity. We also like the aspects that it gives us easier access to global cash at t looking to invest a billion dollars in its own Capital Spending plan also award 1,000 to 200,000 employees. Hasnt been done in 34 years, but actually, really hasnt been done because we broke every record its the largest, i always say the most massive, but its the largest tax cut in the history of our country and reform, but tax cut. And its time now for our takeaway we begin today with last nights coin base drama. The Crypto Wallet made an announcement that itll support bitcoin cash only to hold that proceeding while looking at Insider Trading by employees ahead of that announcement now the price of bitcoin cash which was spun off earlier this year has soared while bitcoin itself has seen its price weaken over the last day or so what do you make of it all Insider Trading is a securities these arent securities. I dont know by what standard youre going to determine if there was front running of the decision to me, it just underscores this is the wild west, its the lawlessness of it. And im not saying lawlessness its nefarious, we just dont snow what the proper protocols are here what youd led to the exchanges. Plus if you just explain to somebody from another planet what happened here weve created this kind of fake money that exists in the ether and we kind of spun off a piece of it different kind of fake money and it was going its fascinating. People are putting dollar signs. Just try to explain it someone during christmas which will happen a lot, i would think. Absolutely. Next, uber is just another transport company in europe after a top courts ruling over there. It could mean treating them more like employees, it could stall that expansion plans in europe uber says that wont be the case it comes as uber hired a chief operating officer for the first time, barney ha rrgford from or bits the ceo is going to have his hands full theres certainly not peace on the regulatory front. I guess weve known this its been the story for a long time i think maybe the bright side of it is just that you do have new leadership and you kind have fresh eyes on all of these things and fresh relationships with all of these authorities you have to on some level work with them. I also wonder, and someone else raised this point, does it mean european officials now go after facebook and google and by the way, youre a Media Company too. Well, and defending, the incumbent companies over there thats the power of the drivers everywhere and the taxi fleece has been at the center of uber, youre right, you can decide that somebody that relies especially on contractors and freelancers. With google and facebook, say hey, youre fundamentally an advertising model type of business in our world that makes the company. That feels to me like a bigger risk if youre subject to some of the very stin gent liable laws for example over there excellent point theyd have to shut down tomorrow finally saudi arabias looking for u. S. Shale deals in gas. Not only is are they looking to diversify as it prepares far megaipo. Its apparently focussed on securing gas deals, why . To attract investors to an ipo, to gain a better understanding of Shale Technology as the journal suggests while relying more on gas for its own electricity. Michael, what do you think is going on here . Ill sign up right there and the questions, i mean, i do think that when youre going to be a Public Company and you have to make a pitch to investors, you cant appear to be just a wasted asset you cant appear to be look pumping all the oil we have until its gone and give you dividends at it. Diversification across product and geography makes some kind of sense. And the saudi economy which i didnt fully realize needs that lets say its lng they can get it from a number of places, its actually the majority source of their electricity, its not oil which is shocking to me. Its amaze pg. They need these deals or the technology down the road, i can understand it. Again, on the surface db. It still appears like head scratcher. Weve heard critics say the new changes will have unintended consequences, we explain why one of the consequences could actually help President Trumps goal of slashing the u. S. Trade deficit. Later, inside what some are calling the crypto castle. Its a house where several entrepreneurs are trying to cash in on the craze. 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. Welcome back we have another bank joining the tax bill wage hike parade. Meg terrell, who is it well kelly its wells fargo that company is raising the minimum hourly pay rate for its team members to 15 per hour wells fargo saying this will take place in march 20d 18 the new lates and 11 increase to its current minimum hourly rate that aannounced in january 2017 theyre also saying theyre going to target 400 million in donations to community and nonprofit organizations next year they also say that beginning in 2019, theyll target 2 of their protects profits for Corporate Philanthropy saying they believe tax reform is good for the u. S. Economy. Theyre pleased to take the immediate steps. Wells fargo joining the parade of raising to 15 an hour after tax reform kelly, back to you. Meg, thank you very much. And in the release, they do say theyre announcing this pledging the following actions once tax reform is signed into law. Okay, wells fargo, we have fifth third, we have at t, all within the last couple of hours, to the rest of Corporate America, what are you waiting for . Especially this wells fargo, what percentage of workers are at the below 15 right now its an easy thing were going to bump you up, but in general, i think the context is, tight labor market, make workers happy, and forced off some of the criticism you know is going to be coming that companies were just going to pocket the money or give buybacks theyve been villainized right now in that country that i do think theres a lot of sensitivity to make sure it doesnt seem as if thats where the money is going even on wall street theyre not rewarded the way they once were we have huge announcements now, shrug of the shoulders, theyre looking for cap xrnd to some degree they are if youre a company that didnt see a good return coming from cap x already eight years of an expansion, now youre going to throw money in new equipment is that going to be great . So here again, trying to get ahead of this, and you know, wells, at t the drum beat will go on. Yes, we have three, now thats officially a trend. Well see who else joins the party. President trump and the gop celebrating the passage of tax reform just in the past hour many critics say the bill will add to the trade deficit, but in a recent column, greg ipps says theres a trick of sorts that could prove those critics wrong. He joins now but more. Chief economics commentator. I thought this was fascinating if you told me there was anything the u. S. Could do that would cut the trade deficit in half, i frankly wouldnt believe you. How would this work . Well, its more kind of like a bookkeeping rather than an economic effect. And essentially what happens is because the u. S. Corporate tax rate right now is so much higher than other ountries, Multinational Companies have a very strong incentive to take production especially of intangible products Like Technology and drugs and make it look like that production took place in other countries that minimizing their u. S. Tax and increases a profits in loan tax countries like ireland or the bahamas. Theidea behind this change is that when you lower the u. S. Tax and put in some new measures that are meant to prevent the shifting of profits abroad, maybe some of that production will start getting booked in the United States instead of other countries. Our exports will magically seem to go up higher and imports lower, cutting the trade deficit. The key here though kelly, even though measured gdp goes up and the measured trade deficit goes down, nothing real in the economy actually changed but now heres what i find interesting about this, you could flip this in reverse and say well wait a minute, if theyre booking all of this overseas for tax purposes, then maybe the trade deficit wasnt so bad and growth was better than we thought, because if its just, you know, a wave of the wand now, then couldnt you just wave it retrospectively and say everything wasnt that bad i think thats a valid way of looking at it, and susceptibly these transfer pricing tactic as we call them was holding down how much u. S. Companies, especially our most successful intellectual property type Companies Like in computers or drugs. It really held down how productive they really were, getting back to reality creates this one off bookkeeping change. Draw an anl zwroi other countries where they would expose the nderground economy and brought it into the light of day and made it legal. Magically, gdp gets bigger overnight, but the economy didnt get bigger, people used to do stuff that wasnt showing up in the official books, suddenly its it shows up. Greg, aside these from these bookkeeping adjustments that youre sighting here what do you think the effects are going to be on corporate incentives in terms of where they invest around the world would it truly level the playing field, will it necessarily cause a big change in where they are because it seems to me companiens want to be where the expected growth is for the most part i think thats exactly right, and if you think about the reason of outsourced production in the last decade, 20 years, its places like mexico and china that dont have especially low taxes, but they have cheap labor. That dimpb sshl not about to change overnight where this tax bill does really make a difference is in things like where do you put your head office we have seen so Many Companies move off to other karnts, partly to escape the very high tax in the United States. Maybe some of that will reverse and head office jobs are very good jobs. And there is some evidence that companies tend to put more of the high valued activities like markets and rnd where the head offices are. Greg, i like that you point out, because a lot of these accounting identities have to add up, if all the sudden the trade deficit isnt that bad, it could mean that our Investment Income surplus also isnt as good as we thought, right . Well, exactly so essentially what happens is stuff that used to get labeled as profits gets relabeled as exports. In fact the gap between the u. S. And the rest of the worlds exactly the same, we just label it differently and magically youll see hey, were exporting more, now we all owe money to foreigners. And kelly one final point here, the optics here are very important. As i just said, this this doesnt mean the economy has changed, but if you think of Donald Trumps point of view which is that he really hates the trade deficit, if he can say hey, the trade deficit is smaller, i mean, you might actually say we dont care if nothing changed. If that means the president s going pursue less aggressive today trade taxes that can calm down some of the protectionistslike tension thats been building no, i think this is a big deal its a great piece thanks for joining pus. Thanks for having me. Greb ipp from the wall street journal. Trade war with boeing, speaking of trade, over an order thats key to the longterm success. We have the details and what it means for the canadian companys bottom line coming up. And its called the crypto castle, well get an inside look at a San Francisco commune thats incubating startups. Thats still to come on the closing bell, youre watching cnbc first in business worldwide. Accumulations up to 8 inches. Dont know if you can hear me, but [monica] whats he doing . [lance] can we get a shot of this cold front, right here. Winter has arrived. Whooo hahaha [vo] progress is an unstoppable force. Brace yourself for the season of audi sales event. Audi will cover your first months lease payment on select models during the season of audi sales event. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes we got a yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. Boeing accused Canada Based Company of selling aircraft at a discount then ahead, coin base adding bitcoin to the platform. Ate ceo will talk about why ths just the beginning for that crypto currency [ 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. Talk to one today and see why were bullish on the future. 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 theres a pretty big trade battle going on. Phil lebow is just outside the plant with more. Hi phil. Reporter hi kelly. You know today was an important day in the skirmish because the Commerce Department finalized its ruling in terms of proposed tariffs its ruling in terms of proposed tariffs it would like to slap on the new c series plane from bombardier. According to the Commerce Department, 291 well explain more about why were here for this event. The c series is a crucial plane not only for bombardier but for airbus as well those tariffs are proposed at 291 boeing claims that its damaged because of the price that delta is paying for the c series boeing says its about 20 million when the list price is 80 million. Thats a point that bombardier and delta is wrong when you look at the c series, there are 360 that have been ordered so far 24 have been delivered but delta in particular, the largest order, 75 planes, c series planes have been ordered by delta and it says it is not going to pay a tariff on those plains in fact if it has to it will wait until those planes are built at the new Bombardier C Series planes in alberta were here in canada at the bombardier facilities because tomorrow morning on squawk box, you do not want to miss this, an exclusive interview with alain bellemare, ceo of bombardier he says the idea of them having to pay a tariff on planes they sell to airlines in the United States, frankly he thinks its nuts hell talk about that tomorrow morning on squawk box, a cnbc exclusive, dont miss it kelly, we talk about the c series with bombardier the reason were here at this plant is bombardier has a huge business jet business as well. Behind me, these are the global 6000 planes being prepared for delivery this is a part of bombardier that doesnt get a whole lot of attention but is very important to the company well talk about the Business Jet Market as well as the c series with alain bellemare. Im trying to figure out whether this will be a lot of action without actually changing the current relationship between u. S. Airlines and the major plane suppliers or whether these changes amount to the future of deals between airlines and aircraft makers looking different from the recent past reporter i dont think its going to look different in terms of that relationship between the airlines and the plane makers. What is interesting in this regard, kelly, is whether or not these tariffs are actually initiated. When you talk with people up here in canada, there is this feeling of, why are we being picked on . Whether its this, whether its other industries were proposed tariffs have been initiated by the Trump Administration, there is a feeling of, this really isnt fair for an administration that they thought, when donald trump was elected, would be probusiness but in the case of the folks here at bombardier, they do not believe it is a probusiness administration we look forward to your interviews tomorrow, phil, thank you very much. Reporter you bet phil lebeau in canada today bitcoins price has climbed more than 1500 so far in 2017, creating some instant millionaires well take a look at group living and working together to build cryptocurrency startups. Mary had a little lamb whose fleece was white as snow. But after an electrical fire from faulty wiring, marys vintage clothing and designer shoe collection were ruined. Luckily, the Geico Insurance agency had recently helped mary with renters insurance, and she got a totally fab replacement wardrobe at bloomingdales. Mary was inspired to start her own fashion line, exclusively for little lambs. Visit geico. Com and see how affordable renters insurance can be. Its a commune of overnight millionaires who have made their money in cryptocurrencies and are now building startups. Deirdre bosa joins us for a brave look at the crypto castle. Deirdre . Reporter hey, kelly. When the price of bitcoin hit 1,000, residents here popped open a bottle of champagne given the run the Digital Currency has been on, theyre opposed to celebrating such milestones because they say it no longer reflects the adoption of the Underlying Technology which of course is blockchain. The people who live here are all bitcoin or cryptocurrency entrepreneurs. They live, eat, work, sleep, Party Together they work on the future of money as they see it now, some come for the cheap rent one person actually lived in a closet downstairs for a while. Others come for the collaboration or sense of community. This is all run by Jeremy Gardner who says he looks for people that are fun, clean, and trying to change the world they even have some high profile guests, like the founders of oculus and bit torrent, and the cofounder of ethereum before he made enough money to afford his own hotel room this is all reminiscent of hbos silicon valley. Keep in mind through these doors have come a half dozen millionaires who have made their fortune in the cryptocurrency space. Who knows, this place could mint some more millionaires or it could see some people lose some fortunes, kelly. Mike, what you think . Certainly like silicon valley. It also reminds me of 15 years ago, these hedge fund incubators they werent living like that they werent living together necessarily, but it was that kind of thing, come here, rent free, you get a desk, and well see if we can find some magic. Deirdre, there must be a high bar to get in there now. Reporter youve got to be clean, thats important, because at any one time youll have four to ten People Living here. They do work closely together, weve been here a few hours today, the people around me, jeremy, aaron, jane, have been talking about the prices of digital currencies, giving us an education, telling us how the different exchanges work and the different differently krun currencies, and ipos good to know. It looks like a great time the most important thing is what to call them. Its all about signaling your nerd status. I just want to circle back to some of the announcements weve had since the passage of tax reform Corporate America has come out with companies from at t to even boeing a few hours ago announcing some philanthropic efforts and employee bonuses they say are a direct result of the tax plan senator Chuck Schumers office has listed all the buybacks that have been done since the Senate Passed its version of the bill. This goes back a week, two weeks ago, whatever the time frame is, obviously as i was saying before, buybacks have been villainized by progressives, by democrats. Companies want to pay their employee in a tight labor market at t was not on this list home depot, oracle, honeywell, those are the big programs weve seen well await more announcements coming the bull case is theres kind of enough money to be spread around multiple uses well see if that turns out to be the case next year. Yes, we will. Thank you, michael, as always. Fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square im melissa lee. Tonight on fast, the dow is inching toward 25 k as tax cuts become the real deal we have a top technician with three stocks he says are screaming highs. Plus coinbase adding bitcoin cash to its platform, sending the crypto world and twitter into a frenzy. Its bitcoin cash versus bitcoins whats the difference . Well break it down. The man both hated and loved