Transcripts For CNBC Closing Bell 20180117

Just 1 these days, 1. 1 higher for the blue chip. Today is a broad based rally compared to yesterday, the s p up 1 as well as the nasdaq and russell. Dom has a rundown we hit the 26,000 mark, a shot of keeping it for the close this time. Remember, it was a year, a little under a year weve seen a 20,000 to 26,000 rally, just 4 between that last big move in 25,000 to 26,000, but still, look at the Drivers Behind it. Theres familiar names we talked about for quite some time with the dow, heavily weighted ones between the 25,000 and 26,000, boeing added 350 points. Caterpillar contributed 90 points, and United Health 66 the biggest weight, General Electric took eight points away, and Goldman Sachs took 36. Between 20,000 and 26,000, similar names. That 6,000 point rally, 1236 points of that was boeing alone. United health group at 323, 3m, 490 points, and the laggard were shares of ibm taking 26 points off, and General Electric at 89. As we talk about 26,000 numbers, these are stocks to watch. They carry a good amount of weight on the up and downside. Looking where traders think the next leg comes from, look at cnbc. Com right now at least one technician thinks its shares of chevron, apple, and others guys, back to you. Thank very much lets get more on the rally now, joined by ubs director of floor operations, art cashin, good to see you. Most short lived hat in the history of the market. Again, today, throwing the hat away okay. We forget about yesterday . Doesnt matter yeah. As kelly said, this is a broader rally today. The yesterday, even with the selloff, the breath was over 2 1 negatives to positives, so the whole market this marketss got them going in gear, and i think were in relatively good shape if we can close up around here, then yesterday will be some kind of faint memory, and well continue moving along and hopefully get some better earnings coming out. The funny thing yesterday in the morning, shooting over 26,000 on the dow, people were saying, weaver stretched theres been too much momentum, the market is exhausted. Is there a reason for the pullback other than suggest weve gone too far too fast . Now you have, today, we are rip roaring right back, which defies, again, what people thought might enter in here. What do you think of that . I think that people took another look at this really in the case of buying the dip its, you know, nothings changed. You get better and better, the apple report today, and you get more promise of those kinds of things, and the tax reform seems to be kicking in to earnings segments already, and encouraging people, so i think they all came back out here. Secondarily, while its too early to give a final look at the market on closes, they are leaning pretty heavily to the by side helping us out. You think people underestimate the power of the tax plan i do think so i think that until they begin to see it tangibly and announce company by company, i mean, weve had walmart, now apple, and i think people are going to have to say, you know what, it is working now, i think there may be a lot of people who dont want to give credit to trump or wherever, but thats confusing the issue the tax plan is a good tax plan, whoever you credit it to or for, and its helping out with earnings its going okay. Dow up better than 300 point gain as we have this conversation people have been talking for the last many days about overall breath, being pretty good. Youre not looking at just a small group of stocks on the back of the entire market anymore. Absolutely right. With the exception of yesterday, the general breath has been there and carrying things along nicely, and thats what you want to see, not necessarily a stampede, but solid buyin across the board, different sectors, things like that. All right get this, switch person ready, i dont know well get it i want to squeeze one last thing in. Everybodys talking about bitcoin. Theres a theory around that some, not a large part, but some of the weakness may be related to the lunar new year. I dont mean that as row logically. People in asia are preparing for the lunar new year, buying presents, plane tickets, whatever, Holding Bitcoin to use it in the new year great insight thank you as always. Speaking of tax reform, apple shares turn around after the company annoyanced they are repatriating billions in overseas cash. Josh lipton has the details, josh reporter kelly, 350 billion dollars, thats how much apple announced its going to contribute to the u. S. Economy over the next five years, and the white house just now weighing in saying just as the president promised, making businesses competitive internationally translates directly into benefits for the American Worker through increased wages, better benefits, and new jobs apple now says its going to be hiring more people, creating 20,000 new jobs in the next five years. Remember, apple already employs 84,000 here in the u. S. , and some people are going to be working in a new apple campus, which will be announced later this year. The company telling me it will be here in the u. S. , and itll be its third campus in addition to the others. Apple expects to invest 30 billion in capital expenditures. Heres the number attracting attention. Apple anticipates paying 38 billion in repatriation taxes. They declined to say how much exactly, but that rate of 15. 5 means the company could do a 245 billion repatriation. Apple tim cook said, apple is a Success Story that could have only happened in america, and we are proud to build on our long history of support for the u. S. Economy finally, apples 1 billion advanced manufacturing fund, remember, that was first announced here on cnbc, thats going to now increase to 5 billion. Kelly, back to you josh, thank you apple shares up 1. 5 yeah. Joining us now to discuss more on apple plans, what it means for the economy, the former deputy secretary of labor under president obama and cnbcs steve leisman. Mr. Speaker, you first, your reaction to the announcement from apple today positive announcement any time you are creating jobs in the United States, thats a good thing im encouraged by the investments they are making in domestic manufacturers and also making an investment to create the pipeline of workers needed to staff the jobs. I have two questions, though one question is, they are adding 30 billion in spending. What would they have spent absent the tax bill, and what im curious, take 38 billion in taxes, invest 30 billion, leaving 200 billion, open questions as to where that goes as well. Yeah. I mean, its hard to argue that this tax plan is a winner, correct . I mean, walmart, other companies have announced either bonuses to the workers, raising their minimum wage, and now you have apple doing all of this. Maybe 20,000 new workers can you just admit at this point, this is a winner . Well, look, any time you lower the tax rates on corporations, thats good for corporations i like what happened, what apple did today in terms of investments into new companies i dont like what walmart did last week in terms of raising pay, but cutting 63 locations and laying off thousands of people if youre going to use the money, this is the better way to use it steve, what do you think the macro impact of this will be added all up you know, it should be some more jobs and some more investment, but what mr. Leu said is critical, what would it have been . I found a story last year apple increased jobs by 4,000. You take those 20,000, do over five years, thats 5,000 is that added to what apple would have done otherwise . I ask a question, i want to get you and scott on this thing. Look at the apple stock chart. Why is it up today up because they are happy that apple is spending more money on investment and hiring people, or is up because an announcement like this clears the way to answering mr. Lleus question t provide a whopping Share Buyback and potential onetime or longterm Dividend Increase here why bid up the stock i remember years ago, cramer told me Companies Hire people when wall street rewards companies for hiring people. I dont know if they are happy about the added investment, or they see announcements like this as a precursor for a large dividend or Share Buyback. By the way, bank of america, i think will pointed it out this morning, but after they did a similar pay increase, they did say now we are going to focus on improving our shareholder return you know, steve, a lot of companies are sensitive about the optics of this theres been so much leadup to how the tax reform dollars will be spent, but even if they turn now and do capital return, okay, fine, again, do you think the net impact of this from a macro point of view is 4 gdp growth this year . Some macro impact that is positive the idea that apple hires additional people on the margin is good. Additional investment on the margin, thats good. You do have to ask one question, though, right. So apple can go out in the market and borrow money at 3 . Its paying a 15 tax to do something it could have boar rrd money for. The mathematics do not make sense to me depending what the project is and the return on it. That has to be asked as well this is a positive, a positive step, i think other companies will take the step, especially when they get leadership from another company, others follow suit thats important as to getting the 4 , i think mostly the economists have put the impact of the tax bill in the 24 range my answer to your question, steve, would be, so what who cares if apple does all of these things and, oh, yeah, has already one of the largest buyers of its own stock, if it buys back more, who cares . Its not at the expense of Human Capital or investing in equipment and other things thats the big fallacy about these buybacks i think youre wrong about that, scott. Oftentimes its surplus capital not used for that anyway or wasted on some acquisition. I dont get it what were talking about, scott, is the u. S. Government funded a what is it a 1. 5 trillion deficit spend Corporate Tax cut in hopes to get it back in the form of revenue the 38 billion that apple is pay, by the way, some expected to be 250240 billion recapture of revenue by the u. S. Government from repatriation, so we need to get that money back it needs to be productive investment if the administration plans are going to be true or coming true, they are going to have to invest it in capital and hire people to have the macro effects that justify the deficit spending they are going to do that they are essentially telling you theyre going to do that really . You read it . I read the release three times they are talking about 20,000 new jobs right compared to what they would have done before, scott what are you not allowed to buy back your scott unless you made a specific number of jobs they can. S they should. Is it over and above and different from what they would have done otherwise . My guess is some, but my guess its not a net add of 20,000 that wouldnt have happened otherwise. I mean, im positive on this, scott, dont get me wrong, just saying, look where it happens and whether or not it justifies the claims that were made for this tax cut i think so far, so good, but theres a long way to go, and apple, frankly, as you heard from liptons report has not provided details to make a macro analysis of this move. I get it. Just one of the most easy criticisms that has been lobbed as a result of the tax change, is that, oh, and the repatriations, oh, company buys back their own stock pay increase dividends democratic lawmakers in particular circulating companies that announced buybacks, the size of them, putting them out like scarlett letters and shaming the companies at the expense of the u. S. Economy. Well, i mean the secretarys made the argument in the past, too, have you not, mr. Secretary, the last word, but i want to give you a chance to make that point too. Well, i think thats right. We are spending a trillion and a half dollars of taxpayer money and can argue whats the best way to spend the money is. I argue doing it for stock buybacks and for executive pay is not the most efficient use of the money. Frankly, give a trillion and a half dollars spent on infrastructure to help workers, having a greater macro impact on the u. S. Economy all right well, to be continued. Yeah, what do you want to do with the trillion and a half lets talk about that tomorrow see you on Halftime Report tomorrow, steve. Save it up. 45 minutes until the close. Dow up 300 points, down four below that now russell just shy of the number a lot more ahead on the closing bell. Next up, one of the worlds most important and influential moneymen on where the Global Economy moves now, and the major changes investors are about to encounter. Plus, are the credit cards, visa, mastercard, and American Express about to break out and jump high . A lot more ahead as we count you down to the closing bell nks. Yeah, i took your advice and had geico help with renters insurance it was really easy. Easy. Thatd be nice. Phone for help with chairs, say chair. Phone for help with bookcases, say bookcase. Bookcase. I thought this was the dresser . Isnt that the bed . Phone im sorry, i didnt understand. Phone for help with chairs, say chair. Does this mean were not going out . Bookcase. See how easy renters insurance can be at geico. Com. Hey, need fast try cool mint zantac. It releases a cooling sensation in your mouth and throat. Zantac works in as little as 30 minutes. Nexium can take 24 hours. Try cool mint zantac. No pill relieves heartburn faster. Welcome back on the floor of the new york stock exchange, a big day alleviating concerns when i say we got a broad rally, look at the sectors. Of course we talk about cyclical names, about semiconductors and material stocks and industrials doing well, but its broader than that. Defensive names, health care up, Consumer Staples are up, better than 2 1 advancing dow movers throughout the day, we talked about lags, but moving forward, ibm is up theres nice comments from barclays 20 of the dows gains in the last year is due to boeing General Electric, 17 right now. Complete round trip, 17. 40 at the close of december 30th, up to 19, and back down ges in trouble at this point. Very strong to get out at this point. Oil holding up well, and they are trying to play to get rid of the volatility deal with the volatility and stop shorting, and eventually its going long and thats a big issue. Right now, its n the Fund Managers are long cyclicals, long technology, industrials, and emerging markets and short utilities and telecoms the people are trying to play against it no follow through, and this is why the markets are so strong here, again, the crowded trades are things they try to break, short fall and long faang yesterday, they were long and shorted the faang hoping that would work today, it did not a strong market we have here now. Back to you. Bob, checking back in shortly. Theres the dow up 306 as we speak. Lets get to chicago with Michelle Carusocabrera with the former governor of the reserve bank of india with a look at the economy a decade after the financial crisis, michelle reporter thank you very much, kelly. Long before you ran the central bank of india, a professor, long time boss on cnbc, good to have you back thank you youre a central banker the great unwind is supposedly happening when it comes to the ecb and u. S. Central bank. The stock market is completely unconcerned about it does that make sense to you . Ha, well, i think theres good news, which is what the stock market is doing, which is the fact all the economies are now growing together, which has not happened for a long time, and, of course, in the u. S. , the tax cut, the Corporate Tax cut has been useful in terms of profitability and so on some is reaction to good news on that front, but, yes, youre right. At some point the markets also have to recognize the fact that Interest Rates will slowly start climbing up. The hope is it will be gradual, and even as the Federal Reserve sort of unwinds the portfolio, the bank of japan will continue buying and ecb takes time. Now, all of this is going to happen the question is at what pace if it happens at a steady measure, the hope is stock prices and other asset prices, whatever else there is leaks up slowly rather than broadly are you confident thats how it will happen haha well, if you look at Federal Reserve tightenings, you realize with the benefit hindsight, the market always gets it wrong, always too much in the base, even if you look at what we got over the next year, its telling us the pain is probably thinking at this point moving faster than what Market Expectations are, so at some point, theres an adj t adjustment so far, its that the fed is overly optimistic about growth, and, therefore, adjustments come down from the market now, the question is, is this going to be different this time if the market comes up to the fed . Also, europe is growing gang busters at this time, and markets coming down fast, and we are going to do it slowly, dont worry, we are going to take it as a comes, but it could be that some of the growth data does surprise them on the upside, in which case, they move faster the bank of japan is pretty much on hold to be, also, have been making noises about the discomfort they have with extreme monetary easing. There was a statement made last month, and it is possible they start looking at it sooner than they think unbelievable change from what weve seen over the last decade. There was an article written recently suggesting that you should be the head of the u. S. Central bank what do you think of that . Ha oh, i i well, i dont think they were serious. I do think that we have a very good Federal Reserve chairman right now with jay powell. Everything i heard about him speaks to him, and he has lots and lots of experience i think the Federal Reserve is facing a very interesting world. The base of withdrawal has to be calibrated, and its something that they managed to manage under Janet Yellens time. I think they were serious, but letting that go. What do you think of bitcoin, crypto currencies give competition to Central Banks i dont they they give competition to Central Banks as much as be complimentary to the existing currency. I think the parts where they are sort of they try to do something different, for example, in some of the transactions that dont want to see the light of day, where people are trying to own their money or take money across borders governments dont want to happen, i think if these currencies become large enough to be that to be a big issue, governments and Central Banks will react you can only see across a number of countries there is worry about the illegal side, but also about other sp k speculative side countries have come up in the last few days speaking on these worries. I think there is a future as weve discussed before, but also there is a future in currency which is not necessarily under the hold of one central bank or the other, but Central Banks in general have to be supportive. You have to create out of that currency into the local currencies to do anything much with it in the economy, so they have to be spoupportive. Thank you so much for joining us so much appreciate it. Youre very much welcome. Good stuff, michelle. Thank you, Michelle Carusocabrera shall we take a quick break we should we have 35 minutes until the close. Recordbreaking day here, dows up a little bit shy of 300 points right now, 1 grains for pretty much everybody, dow, s p, and nasdaq, and russell in there too. Yep new highs across the board back right after this. Welcome back, one of the days where the broad markets up 1 , but what about the s p 500 see who is leading the way, today, technology, but not the usual suspects, the Semiconductor Stocks like texas instruments, they are rip roaring today. Consumer staples up 1. 3 , and energy up 3 , and crude up higher slightly too. Everybody in positive territory, although the laggards with the industrials up only half a percent. Dow just hit 26,100 oh, wow remarkable that yesterday never happened yes, i agree. Todays been a steady ramp up. We talked about whether we stretched and snapped the momentum, but today we are rip roaring right back no doubt. Time for a news update, sue this is whats happening at this time, everyone. Social media executives are on capitol hill to tell Senate Lawmakers how they combat terrorism and recruit. Efforts online part of the discussion focused on whats being done to reduce fake news online if we can identify inauthentic accounts, which we are much better at that, we can remove the accounts and false news goes away the majority of the actors that we see trying to spread this information are financially motivated, so that goes a long way. Philadelphia filing a lawsuit against prescription opioid manufacturers seeking to halt marketing practices and seek treatment costs for those suffering from opioid addictions Michael Wolffs fire and fury inside the white house is coming to television according to the Hollywood Reporter saying endeavor content purchased the film and tv rights to the best selling book reportedly in the seven figure range, and will now begin shopping the series. Well keep you post the on that one. Thats the news update this hour, guys, back downtown to you. All right, sue, thank you see you next hour. Markets having a huge turn around today, basically from yesterday. The dow is on pace to close up 26,000 for the first time, just how much higher can the market go joining us now for the Closing Bell Exchange today, we have larry glaser from mayflower adviser, and steve brasso and Rick Santelli at the cme glad to have you with us we were joking about it, but like yesterday literally never happened whats this about . You know, you had technicals bad yesterday with the outside reversal, potentially closing below the prior days lows we didnt do that. Technically, it was not as horrific as the setup really allowed itself to be, and then you have the steve bannon news okay. Lets talk about this. I was wondering about that. Yesterday, idealist ways, the headlines speeding into this, seeming unlikely, but, today, again, a phenomena i dont want to over play the connection, but what do you see there between those headlines in the market so, you know, all the negative d. C. Stuff where he finally got President Trump the tax policy done, finally, you know, figured out how to do health care and back door sort of way, you know, not really sort of way, and if bannon really spoke and talked and they cracked him, and there was something see markets dont have all the facts, right . They want to establish, shoot first, ask questions later if he sung, the market sells off. If he didnt sing, a big if, market rallies back. Remember, again, technically, he had 2800 in the s p. These are big round numbers. Heard a week ago all hedges were off, more than likely the market could sell off we did not see that. A day later, hedges back on. Bannon did not sing, the market rallies back you talking to me are you talking to me . [ laughter ] larry, what do you think . What are you making of the markets up here at these levels today even. Well, it is like a different day today, and i think today the markets are far more focused on the news like apple. Theres great headlines with the market averages soaring, but the news from apple brings the tax story and narrative together its about job creation now, not throwing crumbs and dividends and stock buybacks, but apple creating jobs in the country its a positive story that people can get behind, good for the middle class in the country, but its a market about momentum, and i think when we look today, its not just the fomo, fear of missing out, but momentum sectors money is pouring into momentum sectors. Thats selffulfilling you have to be careful there in those areas. Instead, some of the less sexy areas set to be attractive are not generating the closes. Some of the value sectors remain interesting here and i dont know about you, kelly, but im not a sexy guy, so i like the less sexy areas. Not a sexy end sexy ends with crypto currency carnage. We want value, valuations. Theres a lot of that in the market to like and, yet, rick, rates are not moving that much what do you think of this, the rate relationship to the rally you know, they are correlated obviously. We saw last year, the high yield close of the year here, if if stays in the 258 camp, but youre exactly right when you really ponder it, you know, we get these pretty much straight up winds for over a year on the equity markets, and Interest Rates are still right now hovering to challenge the 2017 high yields from march. Youre spot on there i think that the Interest Rate complex is a really complicated set of channels. I think that its the last segment Michelle Carusocabrera did with the gentleman on central banking. We could talk about the fact that the u. S. Has not only turned the world economy, in my opinion, but it turns the Central Banks. I think thats an important aspect, but remember, its when it comes to Central Banks, its not what they talk about doing, but whats been done. Even in the u. S. , their Balance Sheets are large, still purchasing, but not as many. I think on the negative channel, at some point, were going to come back and haunt the equity markets. Were just not there yet as far as old adages like buy low, sell fast, this continues to be on repricing, and when it comes to lowering the cost of capital, buy the anticipation and buy the reality. I think theres a lot more room in this market steve, what do you think the risks are generally . That the market gets upset about something coming out of the administration well, i think if the risks are what we know they are, if you get another bannon headline, that seems to be the only thing face it, that was not an incredible selloff yesterday, but the overarching upside to the market is youre an analyst, this is a big point, you did not upup your estimates after the tax bill, and theres a host of companies that the eps has not ratcheted up, thats where rick said theres room to the upside. Thats the room. They are in a mad dash to up estimates Going Forward. Yeah. Lets go down to d. C. Right now, the white house. We are there, the president making some comments just moments ago regarding trade. Eamon . Reporter thats right, talking to reuters today, and they roll out the interview. Some hitting the wires that the president said he hopes theres not a trade war with china, but if there is, there is. The president also saying that the United States is considering big damages in a probe over alleged china intellectual property theft, going on to say any change in purchases of u. S. Treasuries would not hurt the u. S. Economy, saying everybody wants to buy treasuries, and the president said he may terminate naf nafta. A lot of people would be unhappy if he did. He said that chinas leader has not begin any indication about b beijings plans on the purchase of the treasuries, and, finally, the president said south korea is dumping washing machines into the United States destroying what was once a good job producing business a lot of comments there from the president on trade, and we heard from the president in the same interview on north korea, and well expect maybe some more pieces of this interview to roll out later in the afternoon guys, back to you. Yeah, all right, thank you very much. No matter what has come out of this climate, almost nothing, i mean, okay, if the bannon news yesterday had Lasting Impact on the market, certainly not showing up anywhere today. Sure. Anything geopolitical doesnt matter north korea can shoot rockets over japan, the market doesnt go down. The president talks about china, tough on trade, possible trade war, and dows now the highs of the day. We had this conversation a week ago about nafta it doesnt matter to your point, south korea some care about trade wars, though larry, before you larry, i have to point out to everybody im with you on this, and as soon as we got that headline yep look at the dow we are up more were up almost 330 points right now. Yep you might have thought, if the president said, if there is, there is, when it comes to a trade war with the most important trading partner, something that could disrupt the entire commerce system and yet dont forget than right no doubt. Well, you know, theres no way the journal has a great piece on this today as well, but theres lifts to both sides, but, rick, are you saying you think that because it could hurt china, its like treasuries . If they shoot us, they shoot themselves in the foot no. I just think that theres much more to this story than the general media puts out there, and its a bargaining table with two sides, and i think that the president being tough makes some people nervous i dont think the markets nervous because in the end people who trade the market move money. They have a better filter on what the president says than what he says than versus the media in general the president is positioning himself, jockeying, crazy like a fox when he says trade wars, but know the chinese needs us as badly as we need them. Its not in the best interest to create a trade war the markets the stock market is a barometer of performance good point. The markets not reacting if he looks to the market to keep him from pursuing trade wars, now its rallying behind the idea there might be one. Yeah. You know, i think somebody has vertebrae to stand up in the white house. Apiecement is decades old, going back to chamberlain and it never worked all polite, but never worked the markets are reacting to the pact theres no trade war, and the markets are reacting, looking past that. Theres not been any this is a whole bunch of saber rattling we are seeing the same thing, not worry about the outcome. More worried about steve bannon than a trade war with china. I actually agree with that. They are worried about no clue how it works out. Fair enough the picture looks darn good earning options up, Global Growth best its been in a long time people feel good people dont want to upset the story. Dont think its going to happen or dont care i dont the market thinks its truly going to happen do not believe its going to happen i think they believe in it, youd feel if more the market cares about earnings, period absolutely. Rick, do you think the market believes that earnings, or dont care the market doesnt care about bannon the market is not taking much of this into consideration. Basically, steve captured it you know, if you miss the equity bus in 2017 or are missing it now, catch up to your bogey. I think that all these political aspects are important, but thats not what drives the market at the moment thats rights i think when bannon left the white house, the probability of a trade war fell dramatically and thats why the market rallied. Theres a higher probability of agree growth youre assuming that bannon had that influence over trump. Yeah. Assuming he had influence over trump, and i dont think he did. It starts and begins right then and there i agree with you. Thats true but i will tell you if the bannon issue, if he decided he wanted to unleash and who knows what he has, then you have to start to think, infrastructures off the table starting to think spending is off the table. Trump is off the table if you believe he has something to say that had bite yeah. And the markets for 7. 5 seconds believed he had something to say that had bite, but now we talk earnings over 26,100 now right thank you, all. Larry, steve, rick, great discussions. Appreciate it. Yep all right, about 18 minutes to go, and we are at session highs in spite of all that we have just heard now. 333 points, s p 29, nasdaq up 79, and russell is up 13 today, we had apple announcing its giving the u. S. Economy a 350 billion boost over the next five years including 20,000 new jobs joining us now is senate ed marquis, democrat from massachusetts, a member of the Senate Commerce committee. Senator, good to have you with us, thank you for being here thank you for having me on. Beginning with the apple news, although theres other issues wed like to get to you called this a con job in the past and a scam. We saw walmart with big announcements this week, and apple with big announcements, other companies raising wages or giving employees money have you changed your opinion . If not, should you well, look, when you think of the United States of america, you dont think of walmart you dont think apple. You think of the whole country you think of every company, large and small. You think of every employee, large and small. Its the cover of fortune, the United States of america, not capital, not walmart the story is, yet to be told if walmart is a huge employer. If, in fact, as the president promised that every employee gets a 4,000 raise, lets see when that happens. The group is going to be in the pudding. Its not just isolated stories that can be put on the cover for a week or on a show for an afternoon, but the entire country, and the or thedinary workers in the country, promised 4,000 raise i dont believe its going to happen i dont think most economists believe its going to happen, and so, yeah, its a nice story here for apple, but, you know, ultimately, you know, in december, comes federal communications commission, took Net Neutrality off of the books, and what did that do created a culture for hundreds of thousands of app creators those are the job creators in the internet sector, and he took those off the books. That is going to have a crippling effect upon the guarantee that App Developers have to go in the Capital Markets in order to create new jobs that will draw anything that apple has delved into i like how you pivoted to net neutrali neutrality, but im not done with this yet. Walmart is the largest employer in the United States, and if you dont want to focus just on walmart and go more broadly, we heard from the Federal Reserve, which said, broadly, wages are up modestly in most areas, consumers are upbeat, and something the Unemployment Rate could have a three handle in front of it. That speaks more broadly whats wrong with that well, the again, the Unemployment Rate had already plummeted from the near 10 which george bush handed over to barack obama lets be p hhonest, he drove a brand new one owner used cadillac economy he dropped the rate a little bit, but, ultimately, the promise of the tax break is for a 4,000 increase in wages for all americans. Not a 1,000 one time bonus to a small number of employees in a relatively small number of companies in the totality of the American Economy so you cant so i just dont want you engaging in irrational exuberance with a small data set that does not represent the totality of the impact on the economy because i think if you are, then youre also putting every nickel you got into 4,000 raises for all of america, and if you do that thinking about the campaign trail, if your colleagues are out there telling people, its not as good as you think it is, an interesting message well, again, again, its going to be. Senator, what do you think of the rallies weve seen, above 26,000 now on the Dow Jones Industrial average, do you think that is irrational exuberance . Thats what you are suggesting listen, when george bush left office in 2009, it was at 6500 it nearly tripled up to 18,000 under barack obama, so, again, thats just a year ago where all this momentum was created in the Obama Administration what this administration is doing is in a very inefficient way taking a trillion and a half dollars, creating a huge federal deficit addition while inefficiently allocating the capital in the society in the capitalistic system giving too much to those who already have a lot and not enough for those who if you give them the money, they spend it immediately its an upside down plan to s m stimulate the economy. Its isolated pieces of information rather than the broad base, job creation, and income increase which was promised by the Trump Administration im going to be a little bit of a skeptic here, doubt as economists do, that well see that increase, and im going to just dismiss a onetime increase by a company for a bonus because they dont want that 1,000 billed into the base salary of the employees because that lasts year after year, and that would be too much of a commitment for a company to make because they are not certain that there is going to be that Economic Growth that you are referring to. All right yeah. Lets pivot to the Government Shutdown and the budget. Would you support a short term spending bill without a deal on daca well, not its not only daca they are not putting any money for opioids. The president is a year in promising hes going to deal with the Opioid Crisis hes not put up a nickel yet for oi opioid same is true for Community Health centers thats all of the deal incoming daca kids who are collegeeducated they are in the army they are working in our Companies Across the country it makes no sense for the Trump Administration to be holding these kids hostage, while also not putting in money for opioid, not putting in money for all of the other issues at the same time, so, yeah, im going to fight it because this is no way around the government. Holding money over opioid we need a new navy, we need ships. Right through a couple billions to opioid over Something Else exactly have the sitdown with the president president , how much do you want in defense spending . 60 billion, okay. Increase funding for child health for all right worrying about the deficit have a deal,lets sit down. Like the deficit and health care bill, they are doing it all along in their own private offices wherever they may be without democrats in the room. How would you react . How would you react if they treated you that way would you support a short term spending bill under any circumstances . Well, again, its not any circumstances. These are specific circumstances that we are talking about. Were talking about nothing in daca, nothing for opioid, nothing in Community Health centers, nothing, nothing, nothing. Its not general its specific. You have to deal with each one of these situations with specifics. On this, no, i would not we need them to come to the table, democrats and republicans si sitting there to work out the issues in the way the United States constitution intended congress to work, not the arbitration my way or the highway attitude which they brought to the health care and to the tax bill. They just are extending this perversion in the way in which dm democracy is to work thank you for joining us. Its been a busy day can i say a word about Net Neutrality no, no, on your own time. No, no, i never got the question from you. Thats why i came on its the job creation engine, Net Neutrality all right, all right. There, you got it in half of all Venture Capital last year went to web, internet, and software companies, half of all Venture Capital. Thank you, sir, thank you very much. Senator ed markey of massachusetts. He did take half of the first question and turn it into a Net Neutrality answer. Anyhow, ten minutes are left in the trading day today. Dow jones industrial average around the highs of the day, up 322 points up next, more on the record rally as we count you down to the close. So i got an offer on the business, and now im thinking. Id like to retire early. Oh, thats great sarah. Lets talk about this when we meet next week. How did edward jones come to manage a trillion dollars in assets under care . Jay. Sarah. So i have a few thoughts on that early retirement. By focusing our mind on whatevers on yours. Yes or no . Gin. Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Lets check the market movers, ibm the best performer in the dow thats because barclays upgrade the the stock from underweight to overweight, a big move. Barclays hiked the price target as well the 192 from 133. Tiffanys soaring after raising the full year forecast wells fargo raised the forecast on tiffanys to 108 from 96 youre watching cnbc 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. You or joints. Something for your heart. But do you take something for your brain. With an ingredient originally found in jellyfish, prevagen is the number one selling brainhealth supplement in drug stores nationwide. Prevagen. The name to remember. Yes or no . Gin. Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Were back on the floor, a big day, a day up 313 points, new highs across the board, whether its the dow, s p, nasdaq, or russell 2,000 bob, its a broadbased move yeah. Breath is great uhhuh. Makes everybody so quickly forget about that reversal yesterday. Yeah. Just a little strange. There was a lot of anxiety today. The idea they were going to reverse this trade, short volatility and go long tech stocks, go long cyclicals. Its been a big play for so long, a powerful one the hope yesterday, the vix hoped up, hoping for volatility, changing the direction of the trades it did not happen. Right from the open to slow straight up. They did not try to aggressively come in and sell off in the middle of the day. I think people were surprised. I was surprised. I thought there would be more pressure on the markets. We do have a vix expiration this week, a little bit of that, people played around there, but did not prove to do much what im watching now is were getting the first close of the Bitcoin Futures contract, expires right now, and were going to see if that rolls over quietly without fanfare, and thats a big step in this whole crypto Currency Movement and the attempt to move. Getting big Research Calls that tell a story about where we are and how people are thinking about some of the really big stocks in ways we have not thought of or seen in a while. Ibm is the perfect example ibm going underweight to overwait just like that for a very Large Company like that weve seen dow components, people get much more positive on them good point. I thought the emphasis, or arch of emphasis was ibms a big player in the Cloud Computing business what analysts try to do is get investors to sort of shift the rubix cube in your head something about ibm changes this way, leads this it this way. Think of it this way, rather than an old services company, think about a company thats really big in Cloud Computing now. Instead of the power, in some respects, the tax plan, and that brings us, of course, to apple with the big announce. People will be talking about this for days ahead. We dont know, really, if it brings 20,000 jobs, i dont know how they arrived at the numbers, but 38 million tax bill, thats the number catching attention. Thats what the white house comment was on good stuff as always, bob pasani on the floor. Ringing the bell atthe nasdaq, reliant bank corp. Second hour of the closing bell continues in three seconds with kelly thank you, scott welcome to the closing bell, everybody, im kelly evans, a huge day on wall street, dow up 334 points about on the bell thats up 26,000 for the first time on the close, in fact, over 26,100 at 26,116 adding 26 points, nasdaq adding 1 today, s p at 2800 for the first time, the russell 2,000 throwing in 13 points, closing at 3586. Dow closing above 26,000 for the first time as we said, closing 25,000 two weeks ago, mike january 4th yes, not even joining us, charlie, aeriel investments, welcome everybody boeing led the dow thats familiar. That was after being the laggard yesterday. Ge was low that was the weak mover in the dow today. It was down nearly 5 . Over in the s p, Lamb Research led the day and ford trailed 7 . More on that a little bit later. Mike, yesterday, it felt like we had tapped out after that first run of up 26,000 we reversed. We lost so much of that. What accounts for the massive move higher today many. The new muscle memory we take e talked about people cg for an exuberance phase or overshoot phase calling on the market theres more energy to the market theres genuine flows, a true believer in flows of activity. Its not, realm, theres nothing else going on, ill buy stock. Theres abundance of reasons i justify buying stocks at this level right here i want in. This is about Risk Appetite and about, really, the corporate and Economic News just kind of going right along with that bullish case sandy, reasons for getting in getting in . Yes do i stay out because its gone too far, do i get in because were in the overshoot phase, and its going to keep going . What do you think about the market its what we try to do in our Equity Income fund is key to balance. You know, to have some exposed to the growth were seeing with all the Economic News coming out, the tax bill, et cetera, but then also having defensive things in the portfolio as well. If we get to the point its gone too far and we have an adjustment, we feel we have things setting declines on the downside benefit no matter what. Yeah. Its a fine line it is what do you think of this . I mean, just stepping back in terms of your career, having watched the markets, what is this experience like for you well, i think its that people tend to anchor. They tend to think of things in terms of if it would clear last year, now its here, its expense. Thats not right sometimes fundamentals change. This is a significant change its the biggest change weve had in corporate profitability since the reagan tax cut in 81. So i think people are still not factoring in in terms of the power of the tax cut, the power of the deregulation, and the power of a globally strong economy, and all of these things are significant. They are not tweaks. They are big as a result, theres a lot more to go. Youre worried about a trade war, charlie, worried what steve bannon might say plenty you can say lurking out there. Yeah. So the two things i do worry about are a trade war. If donald trump tomorrow announces hes pulling out of nafta, theres a very, very, very, very, very bad day in the stock market if youre sure by the close or just on the open no, go ahead no, no okay, so i think a trade war really would be bad for a lot of companies because theres a lot of companies doing business in canada and mexico who could take down numbers. Second thing i worry about is Interest Rates we do have a heating economy we do have a tight labor market. We have a lot of things that i believe are going to produce more inflation and Interest Rates go up with inflation, and inflation is the great Gravitational Force on the target all right sort of relatedly, talk about these Bank Earnings that have been coming in this morning, it was bank of america and Goldman Sachs and u. S. Bank, andall lower after reporting results today despite the riproaring markets. Higher in late day trade, of course, there you see the no, hes how we closed, bank of america fractionally lower, Goldman Sachs 2 , worst performer in the u. S. Dow, and u. S. Bank corp. Down 1. 5 . Mike, what do you think of this . Extraordinary they are not just down, but down on this market day. Yes they are giving back performance. I think my personal view is that the financials and the banks in particular have been in a very consensus trade. Not just that everybody likes them, but it was so obvious that the reasons everybody had to like them. It was all about, you know, obviously, tax cuts are good obviously, capital return is good its not just the trends are not there for you. Its just that i think people are all in, and they are not recognizes its tactical of what buying yields do the correlation is strong between what the president and bank stocks do this is not a game over thing for the banks. They are still outperforming this year, but i think its not only the easy oneway simple solution what about you, sandy the bonds we look at banks being antibods equity and Interest Rates are sensitive because were in sensitive sectors, and when we have bigger moves, its negative for the sectors. Right owning the banks, which we do, we are able to offset Interest Rate risk, and it works in our favor this year you know, goldman put up the first quarterly loss in six years. A lot of them are onetime charges, tax reform, citi lost in the tourt quarter, and more importantly, looking at what Revenue Growth and that sort of thing they see Going Forward you think that characteristic is more important than their earnings it is it is. They are cheap lets be real about this they have been so nderloved fo so long, and they they are cheap. If we do end up having a stronger economy, we have a steepening yield curve, they have more earning power than People Factor in now thats all good for the banks. All right charlie, charging in in a second, but we have a news al t alert. Whats happening reporter kelly, a painful back injury for the billionaire media mogul. Richard murdoch is laid up in bed. He started with a sailing accident and painful back injury the long road to recovery will have to work for home for some weeks. No comment from 21st century fox. Hes 86 years old, still very much involved in fox, as the coexecutive chairman, and murdoch, of course, brokered the sale of foxs entertainment assets to disney and executive chairman at news corp. Based on the emails he is going to continue to work with both companies through that injury. Kelly, back over to you. All right we got im already thinking about we said a white house position, hour to talk about, give us the full state of the health, that we help hes fine, of course, a delicate time for him navigating the company through the injury and beyond. Shares of apple turn around after the tech giant announced they are repatriating billions in overseas cash shares turned higher on the news dom chu has a look at the Top Five Companies that could follow dom . We dont know if they follow, but we know a lot of corporations in america are on the hook for the tax bills because it is part of the tax cut and jobs act look at the five biggest overseas cash hordes for the s p 500, theres a big theme apple is just the tip of the iceberg, but its technologyfocused look at this if you take a look at the biggest tax hordes held overseas, apple at 252 billion, top of the list. Far and away the biggest out there, almost double what we have for microsoft at 132 billion in terms of overseas profits held as cash Cisco Systems 59 billion dollars, and alphabet, Parent Company of google, at 61 billion, and oracle, the Software Giant at 58. 5 billion, and technology rules the roost when it comes to overseas profits. Whats curious is whether or not we see the corporations use that tax for things other than buybacks remember, apple, through the first three quarters of last year, 2017, bought back about 22 billion dollars of its own stock, and s p 500 companies through the first three quarters of last year, guys, bought back a collective 383 billion worth of their own stocks. Back to you guys and, dom, we have nod heard from anyone in that group other than apple in terms of their big plans for this, right . No, we have not yet you can expect to see them at least telling investors about what their reliability will be now, out of 15. 5 clip, do the simple math for what estimates are for the overseas tax liability. For these big companies, its bigger than others, obviously, but something to watch as earnings season gets underway, and the guys on management teams throughout the s p 500 start making commentary about the tax laws and how its going to affect their companies Going Forward. Absolutely, thank you dom chu. Speaking of management, lets bring in the apple former ceo on the company repatriating cash and bringing 20,000 jobs are they doing more than they would have done otherwise, help break it down for us, what the real significance of the announcement is for you. I think, first of all, this is a tremendous statement of leadership from the private sector, and from one of the most respected ceos in the world of the most valuable company in the world. What i think, kelly, is that tim cook is really setting the high mark, the benchmark that i think other ceos are going to have to respond to because we dont need this money just going into stock buybacks we need money coming back, going into infrastructure. What i love about what apple announced was that it was not just the amount of money, which is substantial, but that they are putting it into investments into business vendors, training other people with skills, to build jobs which we dont have enough skilled people for. They are putting it into data centers, spreading it around the country. Its a very well thought through plan, and i think right and excellent statement of leadership mike, this is what were sort of grappling with. The shares are positive. If they are throwing the money away, this wouldnt have happened, although, its good to be saying to johns point, this is how strongly we believe about the country and want to invest in it. What is the incremental difference here, do you think, between what they announced and what the company would have done anyway thats tough. Apple, in a way, is a unique company. Cant say this shows what Corporate America will do. I think the incremental investments in the United States are significant. Whatever it is they make, a call center, Technical Support center, thats significant, 20,000 jobs in the grand scheme over a few years for apple, not really that much moving the need needle i think that, kelly, a good question is, not just what are they doing beyond what they otherwise would have done, but if you are making a decision on a new investment, eight, nine years into an Economic Cycle, whereas before you didnt have a reason to do it, is that long term value maybe its company by company. What are your thoughts . Do you want to hear the rest of the Top Five Companies come out and make the same announcement they dont have a choice they have to pay the tax anyway. The capitals available. Obviously, theres a lot of pressure for them to follow suit now. Look, i think thats absolutely right tim cooks strong statement of what hes going to do with apple, clearly, it puts the spotlight now on those other companies with large amounts of offshore capital to say what theyll do with it what i sort of question is that i think the impact of 20,000 jobs that apple creates needs to be put in the context of all of the other jobs that apple creates because its a platform company. Platform corporations different than other corporations. They create jobs, 2 million jobs created just through app stores. This is a much bigger impact on the u. S. Economy than just 20,000 apple hires directly. Could say apple created uber. Charlie, what were you going to say . They are bringing 200 billion back they are paying 38 billion in taxes. The estimates the cbo put out for the cost of the tax bill prove way pessimistic. They were static commitmeestima. Redeemed repatriation, every company, no matter what they do, its baked into the revenue assumptions urn this law absolutely not. Absolutely not the charlie if people the total estimate for this bill was 1. 5 trillion dollars of costs on underestimated the effect of the inflows. They did not have, i bet you 38 billion coming from apple in those estimates. Check them. Were going to have the always happens this way, with the kennedy tax cuts, with the reagan tax cuts, we are going to end up with more Economic Growth than what was included, and the growth will produce higher taxes than people estimated. Thats a fair point if you think growth exceeds whats in the bill, thats to the benefit of the government and economy, but this particular thing, the amount companies owe on the taxes they held overseas was baked in to the law. Why do you think apple has those operations in europe they had them in europe because of the differential in our tax rates. Why is that money coming back . Because of that differential thats now way down from what it was before it is well its all coming back. Saying its coming back, but they are paying a tax on it and do anything they like with it around the world or nothing. Did they do that before did they bring the money back before to the u. S. No, they did not they kept the money overseas absolutely right, charlie its a differentiation in tax rates. Great to have the money flowing unlocked, but the point is, the net cost of the tax law is not impacted by the 38 billion that apples paying because it was already assumed paid lets leave it there just agreeing to disagree john, what do you say . To the point about what other companies are supposed to do now . Well, i think its, you know, always going to be a debate about the political i implications, but never lose the importance of the strength of the ingenuity of the American Economy. Our ability to drive these industries with innovation is unparalleled in the world, and people said apple was a hallowed out company just a year ago during the campaign time, and, yet, its not hallowed out, but its making substantial investments into the technology, building things in the u. S. , not just assembling, but this is a big deal, and other companies, i hope, will follow tim cooks lead all right john, thank you for joining us today, appreciate it charlie thank you as well. An sandy alcoas earnings are out reporter good afternoon. The stock is trading lower on the numbers. The company did miss its earnings estimates, but 3. 17 billion in sales, that is a little bit lower than expect ed 104 the adjusted etf theres a disperty there in terms of the guidance, the company said the adjustment for 2018 is 2. 6 to 2. 8 billion and looking at projections for Global Demand growth saying 5. 25 compared to with the number was 5. 25, not a great projection meantime, commentary on tax reform, obviously, no impact onto 17 numbers, and no Material Impact for companies saying onto 18 numbers at this point either. Its still reviewing what those numbers would look like as a result kelly, back to you all right thank you. Up more than 5 decline for alcoa. Theres been an amazing run the stock is actually its well in the money, so well see 5 improves like its just a little dip true. Well watch it especially as we hear more on the call mean tile, another Company Announced its raising wages kelly, in anticipation of the improvements of the after tax income, the company is increasing wages for hourly paid employees. Rate of pay begins at 14 16 per hour based on geography. This is an increase of 25 million once slowly implemented and mt bank said they are granted fourgrant ed 40 hours of paid time a year to participate in activities of their choice stock basically unchanged after hours. Thank you long time ceo, mike, talk to a lot of banks yes early reactions, and bigger ones, you know, those who are more sensitive to the policy, i understand, but why do you think the companies, a lot of the regional banks have been quick to come out after the plan i think mt had been nobody as a good Corporate Citizen and the rest of it, but take into account peer pressure on some level. I mean, Employee Relations are important in a tight labor market, what we have right now you dont know the degree there was upward pressure on wages anyway, but, you know, permanent wage gains are significant in terms of imposing that as a minimum or opposed to onetime bonuses that are great too, but ongoing basis, this raises the whole baseline true. Up 1 today. A lot more ahead on the closing bell. Big moves today for several big dow components wall street analysts talk ratings and targets and bill p down on ibm and the two calls that have investors on edge over apple. But, next, the credit card trade. Were talking visa, mastercard, and American Express this is the closing bell on cnbc dont leave home without us. Wa. Why are you so good at this . Had a coach in high school. Really helped me up my game. I had a coach. Math. Ooh. So, why dont traders have coaches . Who says they dont . Coach mcadoo you know, at td ameritrade, we offer free access to coaches and a full education curriculum just to help you improve your skills. Boom thats lesson one. Education to take your trading to the next level. Only with td ameritrade. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Visa ceo al kelly sat down for an exclusive interview and what he had to say about the future of credit cards and payments increasingly, we want to talk about places and things where people can use or pay, and its not towards the Word Merchant locations or businesses, but its also going to become obsolete you know, if you, the internet emerges, and you see much more connected homes and connected cars, connected offices, you end up with four, five, six, eight places in your home where you can buy from crazy to think about. Which company is positioned for the future of payment. Lets talk to credit swiss, guys, welcome to you both. Im just excited about not having to sign for a visa anymore, and now they are talking about seven payment points in my home, so how are visa and mastercard ensuring they remain able to take a chuck of all of this Going Forward be careful. The wrong move, and you buy stuff like you wouldnt believe. I think, essentially, what happened is for the last half dozen years or so, investors are concerned theres new systems that could by pass visa and mastercard whats remarkable is how little of that happened apple has its own system to use the rails. I think thats increasing their dominance, you know, globally over that period of time we are always looking to, you know, make sure there are not other challenges out there, but its right its been impressive. Would you agree with that similarly, is the evolution of payments moving away from the tracks at all . So, i think that to the extent you increase the number of transactions that youve done in the mobile fashion, its easier for others to enter, but i think if you look last year at the agreement that paypal and visa and mastercard reached, i think you found that pay dollars become an agent for them opposed to a competitor, and i think thats a huge steps in terms of, again, cementing that position and, andrew jeffrey, what do you say . I agree i think i think the centrality of the visa mastercard rails is at this point unassailable in the western world. Longer term, both networks need answers for bank based wallets in emerging markets that contain majority of the worlds cash like asia and china. Well see how they innovate around the opportunities when i think about the internet of things as well as the opportunity in b2b, something we wrote about recently thats a market many times larger than b2c, and both are wellpositioned to examize on that opportunity, and as a consequen consequence, we dont see a near term risk to either model. I will say that visa mastercard looks undervalued relative to Companies Like paypal, which are riding visa master cards rails at the end of the day and will find a way to, i think, to extend their long term relevance in the marketplace as platforms. I know you also covered credit card lenders, so, you know, the actual issuers of the cards, now, i wonder what your thoughts are now, not just a long term trend in payment, but where we are in the cycle with consumers and stuff like that. How does that look to you . During 2017, American Express outperformed, you know, capital one and others, and i think the tax reform is significant for the companies because what it could do is actually extend the Economic Cycle reducing the concerns that investors have about credit i think you saw that from the big banks, both chase and cit ir i talking about pressures and profitable, but the credit turned out to be better than expected, and i think thats going to continue. All right i know your picks are in discovery, cautious on American Express. Thank you for joining us. Thanks. Aerospace stocks flying high and phil lebeau has whats aboard the flights next. We also talk to the chairman of frontier airlines, cofounder of indigo partners, focusing on air transportation stay with us were back in two. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Dow closed above 26,000 for the first time after trying and failing to do that yesterday again, a rapid assent. We just closed above 25,000 less than two weeks ago 322 point gains in the blue chips, s p up 26, nasdaq up 24, russell up 13. Record closing for everybody, gains of 1 across the board time now for a cnbc news update, sue . Reporter hello, kelly. Thank you so much. Heres whats happening at this time, everyone the white house is firing back at arizona senator jeff flake who compared President Trumps attack on the press to the rhetoric of stalin press secretary called flake a failing politician looking for attention. Hes not criticizing the president because hes against oppression hes criticizing the president because he has terrible poll numbers, and he is, i think, looking for attention. I think its unfortunate libyan coast guard officials rescued 245 migrants from two boats off the coast of libya they say they managed to save everyone and return them to the tripoli navy base receiving medical and humanitarian assistance jimmy carter iswo working on a book about his faith its entitled faith a journey for all, how religion sustained him and the role it plays in society. That is scheduled to be released in march i bet its a great read. Thats the news update this hour kelly, back downtown to you. Thank you very much, sue. Boeing the best dow performer last year, it leads again today. Amazing start of 2018 up nearly 5 phil lebeau has why Aerospace Names are optimistic, phil because of demand thats it. The long and short of it the 201718 demand for airplanes, aircraft, and the airlines, its all moving higher lets start, first off, with boeing when you talk about boeing, everybody likes to say, well, yeah, they deliver more planes they dont realize they are expanding production of the 737s, biggest, most popular plane, going up in production again this year, and, meanwhile, airbusss 8380 is getting attention in the last week in part because they are mulling the end of production. Despite that, air bus shares are moving higher. You have honeywell and United Technologies talking about what goes into an airplane, you talk avionics, engine, and thats why the two have been moving higher over the last year, and, tifinally, the people who use the planes, airlines, benefitting from a growing demand worldwide for air travel expected to rise 7 this year thats why when you look at the arctic airline index, it is moving higher, despite the fact we are seeing rising fuel prices jet fuel prices have gone up, not to the point yet its going to spook investors in the airlines, but it is worth watching, but overall, the demand for the airlines, the suppliers as well as the aircraft makers remains robust certainly does, phil, thank you. Our phil lebeau. Speaking of airlines, a champion of Ultra Low Cost Airlines and man behind the largest aviation deals in history, a jet order from air bus worth 50 billion, joining us now, the managing partner at indigo and chairman of frontier airlines, thank you for joining us great to be here, thank you saw the headlines about the massive order, oh, its the, you know, the american, you know, emirates, but its bill franky from indigo with all all these things, you partnered up with a bunch of companies here how did this come to be . So, weare a Controlling Shareholder in all four airlines that are involved in this order, and interestingly enough, i hold a Management Meeting in a place in montana, take all the managers up there for a couple weeks every year and talk about flight and what might be done. It struck me that it was timely to consider a joint order had not been done in the industry before, but i thought it timely, and so we agreed to approach airbus and boeing with a single order. This is with air, frontier and more here. What kind of discount did they give you oh, my goodness youd like to know, wouldnt you . You and all the competitors would like to know that. Thats a matter of something of confidentiality, so i cant tell you. I would imagine that four airlines have better negotiating power than one thats true particularly when boeing was structured was essentially indigo negotiated the con cement and terms and general pricing and individual airlines inside that negotiation agreed on what they wanted for their particular airline. Polaris and mexico fly out of mexico city, so theres different parameters to the aircraft they negotiated specifics of their particular part of the order, but the overall order, indigo you went to airbus and boeing yes, they both have record backlogs, but boeing is getting into the smaller aircrafts a hot part, and airbus is continuing the big planes and having interesting sort of pressures from the state governments over in europe to deal with what is the health of the industry i mean, are you finding it cheaper to get airplanes now and fly them more . Whats it like well, its thats a broad question, but you have to look at the geography take the United States as an example. The United States Airline Industry is robust, doing well in terms of you heard early reports, passenger count, general interest in the sector, financial interest in the sector is high. Other parts of the world probably are trailing that process, but in the u. S. , its certainly a very robust industry yeah. You know, part of the story about the enthusiasm towards the industry is that theres some kind of discipline on the part of the carriers, right not adding too much capacity from the lag is that the case right now just different yes graphics . Well, its a problem of human nature, i think, that what happens when times are good, and theres capital available, whether its Airline Industry or somebody making paper or lumber, at the end of the day, they try to add capacity and get market share relative to their competitors, and the competitors add capacity and then theres a surplus. Well, in this case, the industry did step back after an early rush with capacity issues, and they started moderating the level of additional aircraft, and thats been helpful. Thats holding . Yes one of the early innovations resulted in flying planes more you figured that out is there a way to take more costs out of flying need days or pretty much at when i got in the industry, airlines were flying airplanes, which are the most expensive part of the capital structure, somewhere in the six to nine hour a daytime frame this didnt make sense to us, and we have pushed hard in our airlines, flying 12, 13 hours a day on a broader schedule, and, v as a result, we work the metal hard and they stay in the business i think that approach is expanding in the sector. You see the big guys who flew six to nine hours are now trying to fly ten hours trying to find additional capacity. Do you fly airplanes from china . I have flown airplanes in china, but i have not flown an airplane from china out. Anything happens on the nafta front, is that a big problem for you . In terms of negatively. It could be, i suppose. I mean, you have to be thoughtful in our business, youre thoughtful of regulations. Jet fuel labor issues federal issues like the new Tax Reform Act all of those things impact you and youll leave it right there. Right there bill, thanks for joins us great to be here, thank you coming up, its old versus new. Appledowngrade, and ibm gets a thumbs up we look at the moves next. Futurie ins up sharply. You know what the markets like theres quarter profits, above estimates, revenue, however, slightly below. Big tech feeling the heat again today, and executives from quarterback, youtube, and twitter are testifying on capitol hill looking into whether or not social Media Companies are doing enough to battle extremist content wiping out 30 billion in value, dropping below 10,000 for the First Time Since november. It makes no sense for democrats to try and bring us to a shutdown to try to cut off chip funding for the States Running out of money, so i think cool heads prevail i think the big story at this time is apple, the tech giant expected to create 20,000 new jobs at 350 billion dollars into the u. S. Economy over five years. This is a tremendous statement of leadership for the private sector with tim cook setting the high mark, the benchmark that other ceos are going to have to respond to. Huge day on wall street, dow up 324 points on the dow, puts us over 26,000 for the first time and shares of ibm closed higher today by nearly 3 after barclays upgrade was notched overweight from juunderweight. Meantime, shares of apple turned around after the cash repatriation news, but lower in trading sessions when they were downgraded to neutral from buy, saying the iphone cycle has a dismal year. Joining us now, fast money traders, welcome, gentlemen. Good to be here talk, its like a weird sort of old and new kind of thing steve, what do you like here do you do you say, okay, maybe we can can ibm become a bank stock what do you think . Haha, no its not a bank stock in my opinion, but i own the stock as well as apple. Apple has gone for a long period of time. Ibms a short term i held on to the stock for almost a year now, kelly i believe in the story of what they are doing with the cloud. Obviously, everybody wants cloud. Everybody wants to get there but this points out that they are looking like theres a possibility of competing with the amazons of the world, the microsofts of the world, that excites me they have to prove it. They have to prove it. Ibm has not proved it. Thats the issue well find out very, very shortly if ibm can actually can be, at least a better competitor, and not necessarily a name, but apple, on the other hand, thats strong as a horse tim, do you like apple too, or what about ibm . First of all, old tech, new tech, they are probably both very nicely falling in both seats. Ibm, strangely enough, they are going into the earnings season thursday, tomorrow, actually with the barreltively high between a couple upgrades and fact of the matter is share prices have been juiced from some association with crypto, whether its real business for them or not, but the deals from this perspective, claim they are right not min the middle of a platform thats independent. You think of a data center, a major capacity for crypto. They are snot grown in 22 quarters, though, hard to believe it turns around overnight. Expectations are reasonably high for the number all right you got your sights on crypto now, like, oh, gosh. Ibm and shares are better apple wishes it were in that etf. Kidding. Thank you both be sure to tune into fast money at 5 00 p. M. , 16 minutes from now p. The case of a missing wine heavy weight sellers next. Youre looking at how the 11 sec fors of the s p 500 finished, and industrials lagged as well as telecom everyone was green, though youre watching cnbc, first in business worldwide another news alert on apple. Josh lipton, what now in. More news on apple. I can confirm apple is issuing a bonus of 2500 worth of restricted stock units apple workers, im told below a very senior level eligible meaning if you apply to most of the companys 123,000 employees around the world, apple, im told, issuing grants starting in the coming months. Of course, this news follows the other big news today, the Company Making that 350 billion pledge to the u. S. Economy over the next five years, creating 20,000 jobs, making that onetime tax payment of 38 billion to bring overseas cash back in addition to that, apple is issuing a bonus of 2500 worth of restricted stock units, and that will apply to most apple employees. Kelly, back to you thank you, josh why not announce that all at once i dont know. Phasing it out, or maybe they did not intend that to be a public announce. Just told employees and got out there, perhaps true. 2500 at apple shares not moving on that. They turned positive after the initial announcement made this afternoon. More than a billion dollars worth of wine went missing from a oldman executives cellar. We have the details. Kelly, the victim in the indictment is goldmans president , solomon, a rare wine collector, was duped by his former personal assistant, and he was a personal employee of solomons household and not the bank Court Papers Say between 201416, he stole hundreds of bottles of wine worth up to 1. 2 million. Seven were from the french estate domainede la row maineconti, the best wine in the world, and he is considered a potential successor to lloyd blankfein. In a statement to cnbc, the spokesman said the theft was discovered in the fall of 2016 and reported to Law Enforcement at this time prosecutors say demeyer would receive the wine from solomons apartment as part of the job responsibilities, and then he would turn around and sell that fine wine to a North Carolina based wine dealer who he found on the internet. He was arrested in los angeles yesterday. Were told hes expected to arrive at court in los angeles any minute toll he is expectedo arrive at court in los angeles any minute now back to you kelly. Wow mike, did he think he was going to get away with this . I guess the bet is he is a huge wine seller a lot of times people put them away for years before drinking them long gone i thought of it in the middle of the story. The president of Goldman Sachs. If anybody could come after you its this guy. No doubt about it i thought it was discovered when he moved apartments. Thats when it was discovered. If he hadnt moved, they might not have noticed i believe thats a piece of it. This is crazy to me is he the only person then who ever thought of Something Like this everybody check their wine cell ars. Wine sellers have to do Due Diligence about the chain of custody of the wine. We will talk about the big swing in the markets next. A chcitenian has key levels to watch across the koipt currency world. [ click, keyboard clacking ] [ click, keyboard clacking ] [ keyboard clacking ] [ click, 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. What a day record highs across the board on wall street. Dow close up above 26,000 for the first time bitcoin is deep in the red it staged a comeback ever its own. We have more how much is it down from the peak its down about 31 , i believe. As you point out, kelly, bitcoin parring losses here in the last couple of yours. Still on track for its largest two day drop in three years as traders try to figure out how south korea and china had will regulate crypto currentsy trading of the at 11,000 bitcoin has lost half of its value. After gaining 1200 in 2017, bitcoin has lost 27 just in the last four weeks. From a technical perspective,cities Tom Fitzpatrick says a move to the 5600 level seems likely other crypto currencies are down significantly but coming off of their lows, similar to bitcoin. They have lost 200 million i mean, lost. In market value seema, thank you. Seema modi from the crypto desk. The nkba earnings parade marches on tomorrow. We will look at those numbers right after this no. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading companies see it and see it throughwith digital. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. But prevagen helps your brain with an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. 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. What we do every night is like something out of a strange dream. Except that the next morning. It all makes sense. Fedex powers Global Commerce with vast, farreaching networks. Deep knowledge of industries. And, yes. Maybe a little magic. Im Jackie Deangelis it is a big day with the markets closing over 26,000 for the first time ever. The s p seeing a 26 point gain, a little less than 1 . The nasdaq up 74 points, just about 1 as well the leg up today driven by strong earnings from Companies Like bank of america and u. S. Bank corp. , and announcements from apple that it would repatriate billions of dollars helped boost the overall market a well kelly, back to you. It was interesting some of those banks were the only part of the market that didnt rally. Morgan stanley is tomorrow. The setup is such that the earning period doesnt feel make or break simply because there is so much going for the market it is reacting to i self its about momentum, supply demand for shareswith risk appetizing with the general backdrop that earnings are expected to be good. I feel like you could writeoff the Fourth Quarter because they are noisy with tax adjustments. We also have the Semiconductor Equipment makers which wound up doing gang busters, asml, land holdings, at the top of the leader board. Nasdaq, and standard poors. Led the nasdaq. This was an assurance maybe that cycle is going the last longer this whole move is about cycles. If you push out the date when all the fun stops you can justify higher prices. On that note, ford was a upped performer. Had a profit warning for to 18, talked about higher commodity costs being an issue, something about frn he can change. That blind sided people. An out liar but i think thats a glums of what people thought we might be looking at if we didnt get the Corporate Tax cut. Ford may be a one off but it is interesting to watch. Morgan stanley tomorrow gets interesting if they do do well in picked income. Sometimes the huge banks are like that. It is not a zero sum game. Sometimes one played it one way and one played it the other. People seem to like the steady story. Michael, thank you. That boss it for closing bell, everybody. Fast money starts right now. Fast money starts right now, live from the Nasdaq Market side overlooking new york citys times square im melissa lee. Tonight on fast, the crypto carnage rages on its a sea of red. Bitcoin, bitcoin cash, eherian and ripple are reeling we have key levels to watch. Plus, where the crypto baller, brian kelly . To our twitter followers and trolls, no, he isnt hiding. But he is out of the country we tracked him down and he will at the time tell us how he is trading the crypto carnage. First the dow closedbo