Transcripts For CNBC Closing Bell 20180122

They still have to vote on final passage of the bill, then it will go to the house im told to expect that 4 00, 4 30, somewhere in that range. Then the president will have to sign it. The white house said expect that Late Afternoon early evening but there are already restarting talks on immigration even before the passage is final of that bill senator john cornyn, the number two republican in the senate, just told a bunch of reporters that he had a meeting at the white house on immigration with other senators like senator cotton, perdue, langford and grassley they were informing the president about what they thought could actually pass the senate on a bipartisan basis they said they put to bed Graham Durbin, which was the preexisting bipartisan framework in the senate and trying to work on what comes next this immigration debate is heating up as we now look towards the new deadline in three weeks. Not only do you have that debate, which will be exceedingly contentious in both chambers here on capitol hill, but you also dont have the sweeteners, like Childrens Health insurance or the delay of obamacare taxes to get each side on board then you have the introduction potentially of an even more contentious issue, which is the debt limit, which many republicans dont think should be extended or suspended for a day longer well see how that plays out first things first, weve got to get this bill through the doors of capitol hill today and onto the White House Well bring you that when it happens. Yeah, well see how quickly they can do that, kayla. Thank you. For more on the shutdown, lets bring in sara fagan along with john harwood welcome to you both. John, let me start with you. Is there any question whats going to happen with the house vote or does our attention just turn to these 19 days and can they get immigration done and then what happens next time . Unless saras heard Something Different from her republican friends in the house, i dont see anything thats going to stop this. I dont think Mitch Mcconnell would have brought that agreement forward if he didnt have some good understanding from paul ryan that even with the shorter time frame for extension than the house had wanted, that theyre going to go along with it. Now i think the questions going to be twofold one, are they able to negotiate some sort of solution for the d. R. E. A. M. Ers as part of an immigration package, as democrats have wanted. But then in addition to that, are they able if they dont have a daca deal, are the democrats going to go along with the higher defense number that republicans have talked about . Because if they dont, you might have republicans who are opposing an extension of government funding when we get to february 8th. How do you think this plays out yourself its an act of faith on Chuck Schumers part to allow this vote bearing in mind that Mitch Mcconnell says theyll get something done on daca, but you is have all those conservative republicans who didnt like at all what dick durbin and Lindsey Graham came up with. I dont know what theyll be able to come up with that mr. Please Chuck Schumer and the democrats. Thats right. There is no issue that riles up the respective parties of the government one reason they shut the base down is because theyre so angry daca hasnt bin fixed. They stepped away from that, but the issues dont change and, as you pointed out, you know, theyve tabled the other bell. So, theyre at the drawing board, at Many Democrats say and republicans say that theyre making progress on this. Heres the real issue, though. This is one of these where getting something in the senate, while difficult means getting it done in the house is harder. Leadership knows fixing daca is the right thing. Theres a high number of republicans that this doesnt do anything for them politically by supporting this. I think paul ryan has to bring up a bill that doesnt have a majority of republican support. And some democrats. Guys, to saras point, thats why getting President Trump on the trump of side of some sort of a deal is so important. Go ahead, kelly. I was just going to say i dont understand why the democrats decided today, you know what, forget it, were just going to support this. What happened . Oh, i think what happened is many of these democrats in conservative trump states were hearing from their constituents. You know, there are ten democrats up for election this year, this november that are in states trump won and this has been framed, i think, very well by President Trump, by republicans, calling it the schumer shutdown. That was sticking. Democrats were feeling the heat and i think their conservative members, members from the trump states, wanted no part of this shutdown that was even the headline in it is new york times, john harwood. I mean, it was the new york times, front page saturday morning was placing the blame squarely on the democrats. Yeah. I dont think that pressure was overwhelming because if you look at whos president of the United States, what his numbers are, his association with payouts and government, i dont think democrats were getting an enormous amount of heat, certainly not what democratic strategists were telling me over the weekend. However, democrats are progovernment generally, they dont like the Government Shutdown and as sara was indicating, there is discomfort from the issue that were going to hold out for an openended shutdown in defense of the d. R. E. A. M. Ers. In that circumstance, they were prepared to take what you called accurately, bill, a leap of faith saying, well test Mitch Mcconnell. This deal is only for three weeks. They havent acquiesced in the republicans Defense Department either theres a lot to play out. You know, well see where we are in three weeks and whether people in both parties want a shutdown then. Thats what i was going to say. The only thing i can figure out, maybe from the dems point of view, sure they were facing pressure, but are they trying to move the ball into feb thinking that will be tougher, maybe the gop revolts and talking about the deadline in march does what seem like a victory for republicans set them up for a difficult period early february, into march especially with that debt ceiling looming yes, it does. I think its an excellent point, but the facts will remain the same you will have a shutdown debate here in three weeks. The deadline on daca wont be until march. So, i dont know what will change in the next three weeks if we head into another shutdown the politics remain bad for everybody but worse for democrats and the democrats flinch now, it would be difficult for them not to flinch again in three weeks thank you, folks. See you later. Sara fagan, john harwood, well let you get back to work here. Will we be rehashing the same debate in three weeks lets ask our experts. What do you guys think so take it. Wait ate minute. I like to have the ability to shoot holes in anything. I was going to say, when have effort of you deferred to each other. Whats this about . Yes, i think the democrats were getting heat over the weekend. I think the schumer shutdown thing was sticking i think the republicans made it very clear we had all the republicans on board and it was we needed nine democrats and not one of them was going to sign it i think it was clear to say that democrats are holding this up. And i think the country i think the country is disgusted, right . Listen, they want the country wants to fix daca. I get it but we need to move on and that conversation with daca needs to happen if the gop was smart, quite honestly, theyd work to get that daca program fixed. Im curious about the market response, though, steve. We kept saying on friday, well, it doesnt matter. The markets going to do what its going to do whether theres a Government Shutdown or not the moment we learned there was a deal and enough votes, thats when we saw the rally. You picked out xaktsly what i picked out the first side was we didnt sell off during the worries about it, but we rallied when we got the resolution what does that tell you . Extremely bullishness, pentup demand for equities. Still. Right now. So, you cant fight this this is about tax reform this is about infrastructure this is not about a Government Shutdown not nearly a Government Shutdown. No, and i agree i think youre right, right . We didnt see it had it dragged on for two, three more days you might have had more anxiety in the market, but it didnt. I think a lot of people felt like even if it dragged on, if you look back at the history of it, weve had these drag on 15 days, 16 days, obama had one that dragged on for 16 days the market is my oopic on earnings. Were off to a crazy start this is year the nasdaq is up 7 . Its only january 22nd what do people say this year, though everyone said, were not going to have a banner year. It will be upper you know, maybe midsingle digits. The thing that will upset the most people is if were up 20 , 30 this year. Thats usually what happens with the market they upset the people at the same exact time. You know what i put in my notes this morning, go back to 1987 by january 22nd the market was up 11 in the first nine trading days of 1987, only to go up 40 before the market started to unravel. Sell off in october and 22 in six hours. So, the sense is, you know, theres a lot of people now comparing, is this are we Getting Started off this year to another year of what may be Something Like an october 87 where the market it gets out of control. If youre a seller, though, how do you sell the market in the face of another of wait another quarter when you see tax reform really take hold, and we start to see how these companies are spending money or buying back stock again or bringing stocks here, repatriating, how do you sell is it ahead of that the answer is you cant, otherwise you get steamrolled. The volume is telling you that its on 452 million shares its already 3 15. Theres not a lot of volume. You dont have the aggressive selling. Its the aggressive buying is whats happening see, this is what we were expecting. None of this deefferral. If you look at the overall market, this is amazing to me when you start to see people put their we mentioned on friday, if you havent ratcheted up your forecast or your analysis since september 20th, youre going to chase. They only raised it 2 or 3 because it wasnt clear what the impact would be on companies when you get down to the nitty gritty of earnings so far you cant go from 35 you cant go from 35 to 21 on your tax rate and not have it affect in a bullish way your bottom line i dont care if youre an s p company. You do have to look longer term to see the benefits of that so far we have messy reports that thats why you give it a quarter. When people start to soak it in, maybe thats the top of the market where you can do a nearterm top. But until then, everyone is just getting. No one has ratcheted up estimates so you cant get in front of it until then. That might be true. I think the headwind over the next couple of months is going to be what happens to inflation. My sense is all of a sudden inflation will rear its ugly head, not just in the states but europe as well what are the Central Banks going to do then theyre going to become more aggressive. Gasoline prices are at a fouryear high oil prices, threeyear high. Thats one component. The bullish side. What happens if the fmoc says now we had the Government Shutdown, gasoline prices, because we know they only have eight mandates now theres not a dual mandate anymore. Its transitory. Maybe thats another bullish thing. Maybe they get more dovish oh. Maybe they get more dovish. Youve been waiting to that for a long time. We just replaced saudi arabia in terms of Oil Producers in the world. Were now in the number two position i feel like the only thing missing here is a cup of coffee. Thanks, guys. And a little biscotti. Yes, something. Thank you. See you later. Thank you. 47 minutes left in the trading session. Positive day weve had all the major averages now in record territory for the most part with this rally that began after we got word they had enough votes in the senate today. We havent even talked about the spate of deals announced this morning a lot more ahead on the closing bell. Announcer coming up biotech boom several major deals that will impact the sector and the stocks happening today. Well go through the movers as the space jumps. Plus, apples ceo tim cook saying he wouldnt want his nephew to get on social media. And he believes in limits for technology at schools. Is america hopelessly addicted if so, how do we get back on the right track . Closing bell is back in two minutes. 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. Plus signs for the most part today, especially after word got out that the senate had enough votes to pass the bill to bring the Government Back into business the dow just off its highs, up about quarter of a percent right now. The best performer is the Nasdaq Technology doing well, up about threequarters of a percent. Investors, speaking of technology, are keeping a close eye on twitter today after a report that lender sofi has offered the ceo job to chief operating offer anthony noto mr. Noto has not accepted the job but he is said to be considering it, but evercore says it would be difficult for twitter to receipt place noto should he leave. As we said, twitter shares are trading lower today. This week marks the 25th anniversary of the first etf, the first exchangetraded fund. That long now the industry has brought in record 466 billion of inflows. The growing etf market even capturing the attention of the music and inten tearment industry. Joining us with more, bob pisani, whos just suffering mightily at this conference in florida, along with quincy jones and donna nidieri. I cant tell you how much fun ive had in the last 15 minutes hearing stories from Frank Sinatra. Quincy jones joining us here and donna, who is behind iconic beta were talking about the Music Industry and can you invest in the music and entertainment business theyre here to say that you absolutely can donna, let me start with you the quincy jones streaming music, media how did you come up with this idea also known as the quincy 100, quite a long name for the index. Were a thematic index provider. Theres no better way to get to know an industry than go to the source itself. So, you know, we looked around the industry and quincy jones has been in it for 70 years so no better guy to work with than quincy on how its going to look. Youve lived through everything cant even drive. Weve been talking about the 78s that were around when you started, then the 33s and 45, the cassettes, the dvds and now its the streaming business. So, the question is, where is the Music Industry, where is the Entertainment Industry at, do you feel theres a big future there . I know youve had some concerns about streaming in the past. Where are we at here were on the way. Were going there. Were getting there. Are we going to make it look i hope so. We know theres a problem with artists getting paid for streaming. We know theyre not getting paid enough you used to be able to make a decent living as middle level artist selling albums and you cant anymore. Is is there a problem . Should people pay more for streaming . Whats the issue i dont know. I dont know its singers, songwriters and musicians have to work hard to know what to do what they do its just not right to take that right from them, their income. Its just not right. We need to figure out a way for musicians to get paid. We agree on that. Its a question of integrity, you know i think its from integrity because everybody wants to sue about it but thats not where its at. Spotify play their artists 80 . Block chain is going to be huge. But were in another business now and were going to get there. So maybe its not the spotify being unfair but no, spotify is very fair, but we have to grow into the business now we have to grow into it. People will be willing to pay more for music. Meantime, the index, built around your idea investing in sony and some of the companies. Talk about the index is actually global. Streaming is just Getting Started in a lot of markets. If you look at japan, 75 of music sales is still in physical format streaming is just Getting Started in a lot of markets. Its exciting. The opportunity is huge. How do you feel about the artists today . Youve worked with everyone. We were talking about when you were a band leader and contributed your own music and Frank Sinatra. Lets look at this beautiful ring Frank Sinatra left you. Its never left your hand. Willed to quincy jones from Frank Sinatra. That was my brother. He gave it to you that was my brother. And michael jackson, of course, another man you made rocketed to stardom with is the caliber of talent today as great as it was when you were coming up . Its happening, yes absolutely im looking at young ones like Kendrick Lamar and chance and weekend and those guys, the underground, yes. Do you think they have the Technical Skills they will, they will, because its a question of growth. The question of influence and growth, you know like we have 15 kids now that we manage and have come to us from all over the world, slovakia, everywhere they are the most talented young people on the planet im not even guessing. We have a young girl emily baird who has been writing for century artist since she was 5 years old. Obama calls her a baby mozart. Frightening. Lets hope theyre going to be listening to you. Jacob, jonah nelson they dont stop. Lets hope theyll be listening to you my advice is listen to count basy, the late 50s because you were the chart leader. Pick up some live albums from the 50s Frank Sinatra, the man produced it right here. L. A. Is my lady at fountain blue. At the fountain blue you did that listen to this man and listen to his great band leading efforts thank you for joining us donna, thank you good luck on it. Well keep track of that and see how it goes. Hes on it like a hornet. Im on top of it. Thank you for joining us were here all day today and tomorrow talking to the leaders in the etf industry. Back to you. Im not cool enough to pick up from oh, man, that was so much fun watching you guys work there thats great stuff thank you, bob see you later. One cool dude is all i can say. Who, bob . And quincy jones. You were with me on that one. The shades, i love it. We have a news alert on a deal this is sort of in keeping a deal in the beverage industry. Hope youre thirsty because this is a deal in the liquor space. Bacardi is interested in buying patron tequila 5. 1 billion is the deal dow jones is reporting according to whats crossing the wire bacardi is looking to expand their portfolio. They think premium tequila is the way to do that and being patron would give them a toehold into that market bacardi is privately held. Its a familyrun business one of the oldest continually familyrun businesses of that scale. I actually toured their rum factory back in december and its quite impressive what theyve built up at this point but for now these deals its unclear based on the story how advanced those deal talks are at this point in time, but well keep an eye on it. Were making calls on our own and well get back to you with what we learn. I just wonder how long bacardi will stay private. I mean, given the opportunity and consolidation across that whole sector. This is certainly a move that would suggest theyre looking to expand i dont know if a Public Offering is in their mindset right now, but thats something a lot of Companies Look to as they expand their portfolio. This would be something that the Public Market could be interested in. Who knew patron was a 5 billion business. I know, i know, amazing. Thats a big number patron is topshelf, thats for sure thank you thank you 35 minutes to go and the markets are higher dow hanging onto an 80point gain i think were looking at records at these levels. 26,153, yes, that would be a record close 825 for the s p. Nasdaq in same record territory and the russell could close above 1600. Dont you wish you had the same sheets we had netflix up 17 so far this year. The Company Reports after the bell well debate how to trade the stock. Plus, picking winners in the energy space the sector is todays second best performier but its the bet sector in the last month closing bell is back in two minutes with more music. So, hows it going . Well. We had a vacation early in our marriage that kinda put us in a hole. Go someplace exotic . Yeah, bermuda. A hospital in bermuda. A hospital in bermuda. What . What happened . I got a little overconfident on a moped. Even with insurance, we had to dip into our 401 k so it set us back a little bit. Sometimes you dont have a choice. But it doesnt mean you cant get back on track. Great. Yeah, great. Id like to go back to bermuda. I hear its nice. Yeah, id like to see it. No judgment. Just guidance. Td ameritrade. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Todays Senior Living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. And theres never been an easier way to get great advice. A place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. A place for mom. You know your family we know Senior Living. Together well make the right choice. Welcome back we just told you about that patron deal with bacardi it was actually this mornings batch of biotech deals that has put us over 100 billion anyway, its the biggest dollar start for the year for dealmaking. Already 100 billion in deals this year. Yes and its the biggest dollar amount to start the year off since 2000 so, all of a sudden this is really becoming a potential big year for m a go ahead well, we have an update for everybody except the industrials and materials. So, heavy industry is not doing so well, but Energy Leading the way with oil prices continuing to set threeyear highs. Telecom is up there intl. Surprising. Some other movers were watching this monday apple has been a drag on the dow so far today after a second downgrade in a week on that stock. This time it was Atlantic Equities lowering its rating on apple to neutral from overweight on concerns of softening iphone demand that stock is down almost 1 now. Ge shares dipped below 16 a share early on today after bank of america downgraded the stock from neutral to buy on expectations that the company is going to cut its fullyear outlook after reporting earnings that happens later this week ge down another 1. 2 today. Its time for a cnbc news update lets get over to sue herera. Hi, kelly hello, everyone. Heres whats happening at this hour secretary of state Rex Tillerson arriving in paris to discuss the middle east with french officials. Earlier while in london, he held a News Conference where he discussed trying to prevent turkey from attacking kurdish fighters in syria. Were engaged with turkey and engaged also with the leadership of our coalition and are asking that both sides show restraint please minimize the impact on civilian casualties. Pope francis apologizing for earlier insisting that victims of pedophile priests in chile show proof of abuse. He spoke to reporters on his way back to rome after visiting chile and peru he told them that insisting on proof was, quote, a slap in the face to victims that he never intended the Arizona Cardinals are closing in on a deal to name carolina Panther Steve wilkes their new head coach the arizona job became available when bruce arians resigned at the conclusion of the season youre up to date. Thats the news update ill send it downtown to bill and kelly. See you next hour thank you, sue. Were inside the last half hour, about 29 minutes left in the trading session. Dow up 80 points everybody across the board in record territory biotech is booming sending the nasdaq biotech index to a multiyear high. Well tell you whats behind that move coming up. And apple ceo tim cook not a big fan of kids using social Networks Later on closing bell well tell you which cook Family Member is feeling the pinch from his social issue [ 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. Talk to one today and see why were bullish on the future. nadia white the moment a fish is pulled out from the water, its a race against time. And keeping it in the right conditions is the best way to get that fish to your plate safely. dane chauvel sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. tom villa we took our world class network, and we developed devices to track environmental conditions. This device allows people to understand whats happening with the location, but also if its too hot, if its too cold, if its been dropped. Its completely unique. dennis woloshuck if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. Who knew a tiny sensor could help keep the food chain safe . Plus signs today, record territory for all four of the major averages, especially after we got word the senate had enough votes to put the Government Back in business and thes house is supposed to vote on this some time this hour. Lets get to our Closing Bell Exchange joining us tony, steve Sarge Guilfoyle a guilfoyle. In golf we call it the silly season you dont agree that the market should be going up right now but, hey, youll take advantage of it anyway, right . Ill always take advantage of whatever markets give me i think liquidity will come out of it. We might see that with the boa and ecg. Reason i say it is we had kenny p. And steve grasso i would have loved to have been part of that. They were saying, look, even if you think this market is going down, you dont dare sell yet because it goes up right now. You do sell partials. I sold part of netflix going into earnings tonight, im up a lot even if its up a lot tonight, i wont feel bad because im protecting a profit. So, i sold half my netflix, i still got skin in the game it may go against me but i took half it off the table. Last night i sold some of my kohls im up 80 in kohls and i bought ibm with those earnings. The Interest Rate, 2. 65, i dont know how high we got there. 2. 66 were up towards 3. 00. They think 3. 25 is the next level now. I mean, is this thing going to keep going i think it is that doesnt mean there wont be small setbacks, established ranges i think that 2. 63 wont be much fert than a small arrow shot away from where were trading for a while. If anything goes different from game plan this year regarding Interest Rates, it will be more to the upside not to the downside everybody, of course, should be considering 3. 00 . Its the next major resistance level. How long we camp out here in the 2. 60s, theres subtle resistance around 2. 80 but, yes, i do think and the pace of the long end is going to be very important. Not only for traders, not only for trying to assess the economy or alternatives to equities but i think its going to have to incite a bigger fire under other Central Banks that were just mentioned by sarge i think the bank of japan and the European Central bank, should we see long rates and steepening curve rates in this country, that will make them try to speed up a little bit and i think the spedup process in europe is very interesting to ponder all of it may take many years to complete but ultimately theyll have to find a way for all that southern paper, all those securities, the sovereigns like italy and spain, to kind of get brought into the family. And that trade is going to be huge im not sure if it will, boon deals but that will be a force to reckon with to make the negative Interest Rate paper disappear. Meanwhile, tony, we have earnings, which larry kudlow tells us is the lifeblood of the stock market how do you assess how weve been doing so far this season as we make our way through, what is admittedly going to be a confusing earnings reporting season given the advent of the tax reform here. Great question. Where we fall out is you want to upgrade the quality of the companies you own right now. You want to avoid excitement and own great businesses we wish we could know how to trade netflix around and things like that to make a buck here and there. What you want to do is migrate down in valuation to protect yourself from what is a you know, an increasingly rough market when you look at where the valuations are at, the sentiment built around an increasingly bull market Going Forward. You dont want to get lulled to sleep by a onedirection market and this is the time to migrate down in valuation. Sarge, anything youd add there before we go weve been off to a crazy you have to acknowledge, nasdaq up 7 dow and s p up nearly 6 is it justified . For one, ill trade the netflix. Have you to diversify. You have to stay strictly diversified across all sectors and even outside the u. S he mentions going toward lower valuations youll get those in india, in brazil you need to play the etf game if youre a Retail Investor watching this at home because you dont know the specific stocks, the specific companies have you to become familiar with the various etfs that trade outside the u. S. That requires homework you cant ask your Financial Adviser unless you know the guy real well. Guys, thank you tony, thanks for joining us today. Starn sarge, i know youre making hay. Good for you. 20 minutes to go before the close. Dow is up 84 creeping up a little more. The s p is up 15 nasdaq up 53 the russell up four. A new survey says the u. S. Is facing a, quote unquote, crisis in trust in government, media and business well discuss what snuctiinstits should do to earn back the faith of america. The biotech space with a pair of deals sending that index to its highest level since 2015. Well tell you which names could be the next biotech takeout targets when kellynd ce ck a iom netflix shares rallying. The stock has been on quite a run so far this year up nearly 18 just in 2018 thats nothing new for netflix investors. Theyve seen a 60 surge over the past year. Well see what happens after the bell. A new trust index Shows Americans have the lowest trust in institutions from business to the government in the world. Steve schmidt is vice chair at edelman, political analyst for cnbc he also ran john mccains president ial campaign in 2008. You know all about the cynicism that exists in the world today when it comes to politics and media. This trust index, what does it say, whats in it and what does it say about the state of the world right now . The well, this is the largest study of trust, looking at trust in media, government, ngos and business that takes place in the world, across 28 countries, 33,000 interviews. What weve seen is a calamitous drop of trust in the United States drop in trust in the United States in the eyes of the american people, both informed elites and regular people, but also brand america from overseas when we think about american head quarted businesses, we now rank somewhere between spain and italy. When we look at how were perceived, how were trusted by countries around the world, were slightly ahead of russia and slightly behind china. We saw corresponding increases of trust from the Chinese People in their system but also globally in china, increasingly is the indispensable nation. So, this is very worrisome because when you think about an advanced stage democratic republic, the entire system functions not so much on rules but on norms and norms that require trust. Very alarming results in this for the United States of america. I mean, im looking at this china thing. So, its on top of the trust index among the general population and the informed public i dont know what that means but youre telling me that chinas public has more trust in its institutionses than the American Public does if thats the case, i would still rather be the American Public and skeptical of my government than the chinese public that has, apparently, no such skepticism of a government thats surveilling me and quite oppressive, frankly. I think so thats one reason to be alarmed. The question isnt whether you would rather live in the United States of course, i would make that decision also. The question is, what system do people have faith in as we look at the Government Shutdown, it should be noted the Chinese Government has been quite vocal about expressing its skepticism toward the american system of government, saying why would anyone want to emulate this look at the chaos. One of the differences between United States and china is this, over the last 25 years, weve seen an emerging historically fastgrowing middle class in china when for the average american working person, there have been significant gains at the top, your average working person has seen flat wages going back a quarter century and tremendous disruptions based on the technological revolution and globalization were living through. Thats stagnation in the middle class is fueling a lot of pessimism in america. I have 30 seconds not that were going to solve this, but im curious how you think how we turn the tide and get the trust back again can we at all . Its going to take a hell of a leader to get this country going back in the right direction to establish those bonds of connection between us again to appeal to the better angels of our nature, as Abraham Lincoln once said. We have a lot of work to do. Whats alarming about this study, it doesnt suggest we hit the bottom but that were on an accelerating decline the angle of descent is getting deeper and there may well be a long ways to go. The problem seems to be getting worse, not getting better. Do we blame the internet or any social media for that regard i was joking the other day i miss the day when i had no idea what everybody thought about everything thats what were bombarded with right now. The concept of objective truth, what is it, is under debate weve seen a staggering collapse of trust in the social media companies, a real kred louseness about people theyre worried about propaganda, theyre worried about misinformation they dont know what to trust and whom to believe. Thats an increasingly ominous undertone to all of this that we find in this study unfortunately, i think i trust you on this. I believe it steve, thanks. Steve schmidt. Thank you trust index thanks for being with us. Ten minutes left in the trading session. Look at this, its just turned into an oldfashioned rally for the day. The dow now up 114 points. And yes, the nasdaq leading the way with a gain of 1 . Big day for biotech, m a and looking at the next set of potential targets. Brace yourself for netflix earnings after the bell. Were debating whether you want to own the stock after its 17 run in just the last three weeks. Closing bell is back in two. Lets begin. Yes or no . 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. 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. Why is the market rallying, you ask . Art cashin told us the market on close orders show imbalance to the buy side to the tune of 207 million. Were now just off the highs for the day, up 117 points and much of that gain just in the last hour here. Boeing flipped positive thats been a name propelling the dow all year it was negative earlier. Like the rest of the markets, its flipped into positive territory and now continues to move higher. Theres the s p. Up nearly threequarters of 1 now. Is this me or you i think you okay. Shares of chipotle taking a beating today, making it the worst performer in the s p 500 it is been on a huge rally, though, we should point that out. Up 14 despite todays pullback. Its been among those stocks that has seen this huge gain among the dogs from late last year that the market started to get it tended to beginning of this year. Today a pit of a pullback. And its merger monday, especially in biotech. Two major deals announced this morning. Meg has a look at them and which Companies Might be next. These two deals in the biotech spate total more than 20 billion. That gets us about 40 of the way to all of the deal value we saw in this space last year. Of course, were only three weeks into 2018. Biotech investors have been waiting for this kind of pick up in m a after michael yee called a lackluster 2017. This morning french Drugmaker Sanofi says it will byebye yoe verativ for 11. 6 billion in total, a 6 premium. And sanofi is taking a little hit as some value the competition. Celgene buying june notice therapeutics giving it a foothold in the burgeoning space of cancer immuno therapy. Both of these deals are boosting biotech stocks is and speculation that more m a will follow the companies with the biggest piles of cash is gilead, merck, j j according to baird from Clovis Oncology to bluebird, which were seeing that stock up quite a bit. People hope those deals are coming back in 2018 for biotech. We just said the best start to the area since 2007. Big start. Up 115, record territory for all the major averages we have the closing countdown in a moment. As we head to break, heres another check of those netflix shares Company Gearing up to report Fourth Quarter earnings in a few minutes. Itsp reha umo tn 3 heading into the close youre watching cnbc, first in business worldwide driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Trading session. Bob pisani is with quincy jones. A year that has just its strong. Its like a sprint. It really is. It started strong and hasnt given up yet. The dow at record highs as that Government Shutdown is averted. Up triple digits keep in mind opened lower by 70 points but clearly an intraday reversal. As they buy stocks, they sell bonds. The tenyear got to 2. 66 today, another multiyear high we wonder how much higher it will go . I guess stocks and yields can move in tandem. Whats not going higher is the dollar the dollar index hit almost a 52week low today. In fact, that is just about right there, 52week low. By the way, the best performing global currency in 2018, the mexico peso despite those nafta concerns. Now we have netflix and td america reporting coming up here in just a few minutes. P g tomorrow, raytheon, caterpillar tomorrow. Were wading into the deep water. Thank you, seema well see you tomorrow were finishing on the highs, up about 140 points on the dow. Records all around stay tuned for those earnings and the second hour of the closing bell with kelly evans and company. See you tomorrow, kel. Thank you, bill. Welcome to the closing bell. Im kelly evans. 140plus point gain on the dow today. A lot just at the close. That puts the dow at 26,000 over 200 for the first time a half percent gain. Thats a record close for the blue chips the s p 500 adding 22 points to close at 2833. Thats also a record close the nasdaq composite just up under 1 , closing above 7,400, at 7,408 and russell 2000 small caps up almost half a percent closing at 1605 for the russells after a 7. 5 gain again, we saw moderate gains, especially after some washington action on the shutdown at noon today. Then things really lifted here into the close before we dive deeper into these marks, lets get to washington with Kayla Tausche for the very latest has the house even voted on this yet, kayla reporter they havent. Were awaiting final passage by the senate that is going through some Technical Details and still expected to vote this afternoon. After that the house will take it up and then the white house will have the president sign is it after that. It is promise that sealed the deal is the promise by Senate Majority leader Mitch Mcconnell, pledging the path forward for bipartisan immigration deal by february 8th, the next deadline this deal sets in place. Florida Democrat Bill nelson was one of the lawmakers that the white house had singled out as someone whose vote they wanted to change, who had said he was working in a bipartisan way. They wanted to see that from him. He was a no on friday night but he voted yesterday and he told reporters hes optimistic about the prospect for this immigration deal before this agreement, they had no protection and we were not getting any help from the white house. We werent getting any help from the house. And we really werent getting any help from the Republican Leadership in the senate but now we have a path forward in which we can work a bipartisan solution that will take care of the d. R. E. A. M. Ers reporter the white house has been consulting gop senators for weeks at this point but today invited a group of of about a half dozen of them over to the white house to discuss what they thought could potentially pass on a bipartisan basis. That meeting happening even as House Republicans began to balk at this timeline to get an immigration deal on the floor by february 8th february 8th, kelly, we should note, is less than three weeks from now and that time is going to go very quickly well see what they can do yeah, weve already got a countdown clock started, or at least working on it. Kayla, thank you very much joining me is cnbc Senior Market Michael Santoli drilling into the markets, leading the dow was intel. Nike did trail intel was up 2 . Nike down 1 first energy topping the s p big time, up more than 10 chipotle the biggest decliner, down 4 . Even verizon had a great session in the dow today look, we were up 80 points all afternoon. Popped on the close. How much is about d. C. I think not that much is about d. C. But its a good illustration of how this market acts right now there was no pain with the coming shutdown last week, no anxiety in the markets when we have a resolution of the shutdown after a few days, its an kus to buy because everything this market converts every headline into an excuse to go higher. Right now were in the phase, the party doesnt end until everybody gets a piece of cake i think every investor that wants in is basically being forced to chase up why not because all the news out in front of you on the table is giving you a cover story and excuse or genuine reason to think the market has tailwinds. Nancy, what are your genuine reasons for investing here what do you make of this market which, as we said, the nasdaq is up 7 since january 1st. I know, its crazy, isnt it . Listen, valuation is still not wickedly expensive and i was watching my friend kenny p. On earlier talking about comparing this to 1987 i certainly hope hes wrong. But i do think we have a different dynamic. And that is that Earnings Growth is recovering and has been in recovery mode for over a year. Were getting global growth, as youve heard, and were seeing companies that have used technology to improve margins. So, if you think that boeing is expensive, that may or may not be true but they have transformed their Business Using Technology same with walmart. You can make that argument for Federal Express and on down the line so its not just Tech Companies that have benefitted i think thats different this is time around. I was around for 87, so i remember that very well. Im just thinking, we talk a lot about technology as a disruptive and negative inflationary force its interesting it has such a positive lets talk about yields. Its going up along with stocks. The u. S. Treasury yield continues to rise. The two and fiveyear yields hitting fiveyear highs. Theres the tenyear just below 2. 66 . And, michael, what do we make of this relationship . Its something that shifts over time in terms of relationship between how much stocks are worth and where bond yields are at. I think most times in history you look at the tenyear yield at 2. 66 and then hear people worried about the chance that theyre too high and be very puzzled by it. I want point out in 2013, the last time we surged in yields to 3 , it happened from 1. 7 , it happened over eight months so, its a matter of how far yields go up from here, if, in fact, they keep going up we dont know if thats going to happen at everyone expects it and how fast it happens. The speed to me is more about the volatility of the bond market, if it gets jumpy and whether or not that translates into stock market stroll tillvoy weve seen is that in the past. I agree with mike dont forget about the dollar. If youre a Global Investor and you have the opportunity to get a 2. 5 , 2. 65 yield and you can do so with a strong currency, i think thats part of this as well so, i think we should keep that in mind. The dollar has been weakening for a year, longer and im worried that that tends to lead to inflation and that we might see a pace quickening from the fed. But given the members of the fed, im actually pretty optimistic that the pace will be measured and the market will move around that that dollar reminds me of what youre saying about rates a lot depends on the speed of the move. Exactly. If you have a dollar crash from this slow grind down weve had for over a year which still brings it down to the middle of its range over the last five or ten years. Fair enough mr. Oleary, has he decided to join us from sunny florida hello, kevin thank you for joining us. Great to be here. Thank you. Before we get into these netflix results, why dont you tell us what you think of this market another big rally. This year i dont even have words to describe it were here at the etf conference and all we have here is thousands of investors. Its a great place to get feedback whats coming into the market, i think, and the reason we continue to see the slow grind up is the realization that theres going to be a lot of good earnings in the next 24 months as a result of tax reform, b, more buoyant economy, c capital being repat rated against stocks the theme today is how much repatriated capital from apple is going to go chase their own shares while investors also want to buy them. All of these forces come into play at the same sometime. And the market continues to go up but im not that worried about earnings anymore i think were going to have really interesting midcap Earnings Results over the next three quarters yeah, look, earnings weve talked about what do you think of all the deals weve had, including some biotech deals this morning, kevin. This is now the best start for dealmaking in dollar terms since 2000 yeah, i think theres a buoyancy at the board level now to put capital to work that weve got some stability, even though the government with the whole shutdown story that came over the weekend whats amazing is, ceos, cfos in corporations today, whether theyre smaller ones or larger ones, domestic, are ready to do business again because weve got stability. Weve got a good tonality in the market and with the government and theyre willing to put money to work and take a risk again. These are great times to be an investor. Lets see how netflix is doing on that very note. The numbers are out. Julia has the numbers. Looks like a big beat for netflix in the subscriber number the Company Announcing that it added 24 million new memberships. Thats up from 19 million add added 24 million new memberships in all of 2017 compared to 19 million added in all of 2016. So, breaking this down here, the company had 8. 33 million net additions in the quarter versus expectations of 6. 3. 9 million. So, nearly 2 million more net additions in the quarter than expected now, breaking that down, 2 million of the net additions were in the u. S. Thats about half million better than expected. And 6. 36 million net additions internationally, overseas. Looking at the earnings and the revenue coming in at earnings coming in at 41 cents per share. Thats right in line with estimates. While revenue was 3. 28 billion, just a hair stronger or 3. 29 billion, just a hair stronger than expected. Continuing to go through this release here, guidance is also very strong. The company guiding for q1 revenue 3. 69 billion in revenue versus the 3. 49 analysts anticipated. Eps guidance of 63 cents per share. Also much stronger than the expectations of 56 cents that were getting from Thomson Reuters in terms of forecast that is, of course, going to be driven by subscriber growth. The company says it expects 6. 35 million new subscribers in q1 versus the 5 million expected. So, were looking at stronger than expected guidance for q1 as well as that subscriber beat in the quarter. Now, just looking at one one note here and why the profitability wasnt higher. They note two noncash charges. One was a 26 million cash tied to foreign exchange. Interestingly, theres also a 39 million noncash charge for unrealized content they didnt decide to go forward with. They didnt say exactly what it is here, but we can assume its due to killing the kevin spacey movie and writedowns on unreleased episodes related to house of cards after that kevin spacey scandal so, real strength here and im going to continue to dig through this they mentioned the crown, black mirror and Stranger Things as content driving the stronger than expected subscriber additions in the quarter. You see the stock is now up more than 9 . Thats a lot of interesting stuff. Julia, thank you what jumps out to you . Expectations were high. The results were even better and kind of vaulted both of those things the membership numbers are really all you have to know for netflix. Because there is a certain number of global memberships at which this Financial Model works very well. Its a distance from here. If youre accelerating into it and getting memberships coming in better than expected each quarter, as happens happened this quarter, you get to that point. The question for an investor is, whats the value of netflixs head start as all tv becomes internet tv . It looks like the value is going up of that head start. Naeps, what would you say the same thing. The subscriber numbers are the most important i think particularly of interest is the u. S. Number that beat handily because its a more mature market, obviously that is impressive to me i didnt hear anything about margins. That will be interesting to note as mike said, thats all that matters with this company. Its like amazon and Revenue Growth and dominance they are dominant and the price just went up for apple thats an interesting point kevin, well give you the last word i think as we look at quarters ahead, quarters ahead for amazon or netflix, one thing to think about is when you make ten movies in hollywood, i dont care who you are, netflix or anybody else, only two of them make the majority of the money. Six are dead, two are disasters. We never get that data out of netflix. All we get is if you have to take a charge in the case of the spacey deal, you saw is that but you dont know how many dogs theyre going to make. Are they going to do any better than hollywood are they going to get better than 20 to make money over time their argument is, well, theres a long tail. Well get someone to watch this even if we make a dog. In quarters ahead, i wonder if that story will catch up with them a little bit because nobody can do better than 20 hits in making movies. Thats the history of hollywood. Its the old 20 make all the money. Kevin, thank you for joining us nancy, thank you well have much more on netflix coming up here the shares are up nearly 9 after hours. Thats on top of the 17 gain this year. Pivoting now to washington, the u. S. Senate reached a deal to reopen the government joining us right now to talk more about that is republican senior senator from louisiana, bill cassidy senator, thanks for joining us. Thanks for having me. So, it sounds like the house is not totally finished this up yet, but wlapz now, 19 days from now . Is anything going to be different . Yeah, i think it will be. Theres nothing like a hanging to sharpen a mans mind. I think democrats now realize that republicans are serious about bordersecurity if they want a deal, they are willing to give on Border Security and i think, frankly, republicans are willing to address the issue of the daca kids you put the two together, you can make a deal. So, i do think there will be something that happens. Right that sounds great, but it sounds easy to talk about. You know as well as anybody, getting it done can be a totally different story. In the last hour, the prospect was raised that it could be House Republican members who dont feel comfortable with defense spending levels, for example. Theres a lot more roadblocks ahead potentially, arent there . Yeah. Our democracy is messy but we continue to get better if you look at the economy ive been listening to your feed the economy is doing fantastic so, as much drama as there was about the tax bill, the tax bill got now were seeing the benefits i like to think thats what will happen Going Forward on these other issues, too. Were looking at the voting taking place right now on capitol hill there so, as we understand it, a lot of this will come down to immigration for striking the next deal, previous Graham Durbin deal has been, quote unquote, put to bed. What might the next bill look like what needs to be in there as far as youre concerned . The president has said theres four pillars of course, the daca and the Border Security are two of those, chain migration is another. If we can address those in a way which is not so expansive that it falls apart but is focused enough on those four issues, and that issomething which has bee agreed to on a bipartisan basis, then i think a deal can get done schumer is saying hes willing to give on Border Security that was the president kind of you got to do it for me before i go forward that, to me, at least indicates movement we know you have to go and vote yourself. Last question. Is there going to be any issue raising the debt ceiling come march . I dont know that obviously, people will look at how do we address or debt and deficit issues on the other hand, if you have 3. 5 growth, as we did before the obama years, you actually take care of a lot of our debt and deficit. I like to think what were seeing now will play into how wet address that issue growth cures all evils. Well see. Senator bill cassidy, thanks for joining us well let you go. Thank you. Were going to talk much more about netflix earnings straight ahead. The big debate, its up after hours, do you want to own the stock . Up 17 before this move in 2018. Or do u it ayowand hope for a drop more closing bell in two take off for mexico with expedia. One click gives you access to discounts on thousands of hotels, cars and things to do. Like the Fairmont Mayakoba for 59 off. Everything you need to go. Expedia. Welcome back we have a news alert on adobe. Whats happening there two pieces of news have that stock up better than 2. 5 after hours, over 200 bucks a share for the first time the first has to do with an earnings revision upward at least for the earnings target up 16 cents for the first first cal quarter. Adobe saying expect 1. 43 of nongap eps, up from a prior estimate where they were projecting 1. 27 they also took up their fullyear target to 6. 20 from 5. 50. And this is from the tax act from that change in tax law. So, that has the stock higher. Also adobe making an announcement about change in chief Financial Officer and change in general counsel. Both of those people are retiring mark garrett, who has been the cfo for about ten years through adobes transition to the cloud, is going to retire so is mike dillon. Both will stick around and help to find their replacements and transition to their replacements just to note, kelly, on the cloud and on mark garrett, ten years ago that stock was a fifth of where it is now kelly . Over 200 bucks for the first time today thanks very much today. Now to those netflix shares surging after reporting better than expected earnings just a couple minutes ago lets get back to julia for more details. Julia . We have more interesting details in Reed Hastings letter to shareholders. The company is saying last year average streaming hours per membership grew by 9 year over year with greater member expected growth. They now plan to spend between 7. 5 and 8 billion on content this year. Thats up from the prior range netflix gave of between 7 billion and 8 billion they said largest investment in original film to date called bright with will smith was a major success and drove notable lift in acquisition. This is notable for investors because the film was critically slammed. Has just a 27 on Rotten Tomatoes that didnt hurt its appeal on netflix. The company saying in its first month bright was most original viewed ever and sequel in the works. Netflix announced the addition of a new board member, former ceo of canal ploos group in france a growing percentage of netflix members are european so his perspective will be valued on the board. Back over to you. Julia, thank you. Netflix up a little more than 8 after hours. Should you keep buying the stock . Here to debate it ed reed and kevin landos thanks for being here. Ed, what is this quarter telling us about netflix as a business their runaway train, theyre growing, doing what they said they would, get the user base up in the u. S. And also internationally. I think thats impressive. Other things are growing, too. The negative free cash, thats going higher theyre going to spend more on content. Their content applications are going up as well the other thing looming on the horizon is the disney fox deal. Thats mentioned in here. That takes stuff out of the pipeline its buying the content pipeline the stuff that netflix buys from they saw this story coming way back when. Thats why they started bulking up on their own production i think it will be harder in hollywood to own the mind share of the producers you need to come to netflix. Now all these other places. How does it look to you as a business i think theyre in the right place at the right time again. Its sort of the mark of a great strategy is that youre in the right place at the right time time after time. I dont see anything want to like here except for the things people have hated for the last ten years, which is that theyre burning cash yeah, theyre going out of business to thunderous applause, i suppose, for the last decade i mean, i actually wonder about that youre pointing out the same thing i did, which is the negative Free Cash Flow. At what point does that turn into a positive . At what point do they get the scale in their Subscriber Base hang on. Im sorry. Well get back to kevin we have breaking news from washington eamon javers, whats happening reporter looks like the senate has enough votes to pass this continuing resolution theyre voting on the floor right now as you noticed a few moments ago in your conversation with the senator it also looks like there are continuing conversations here at the white house right now. The white house putting out a list of about six republican senators who have been over here this afternoon since the earlier vote on breaking the filibuster in terms of the continuing resolution so, clearly republicans anxious to figure out what their path forward here is going to be on immigration now that there seems to be a commitment from Mitch Mcconnell to have a debate and a vote on immigration at some point in the coming weeks. Well expect to see a vote in the house of representatives well see if they have the votes there to get the Government Back open again this evening. Back over to you. Everyone who has to show up at work tomorrow will be watching that along with the rest of us eamon, thank you. Pivoting back to netflix, kevin, one thing they talk about is theyll have negative Free Cash Flow of 3 to 4 billion next year. This is what you were talking about. What do you make of that i think theyve calculated thats what they can get away with theyre still a growth story obviously, they can raise prices any time they like every time they do raise prices, everyone gets a little nervous and they just keep right on adding subscribers and theyre adding subscribers faster than they planned to. So, i think this is maybe its a little like the amazon story. Amazon was sort of break even, couldnt make money and they kept growing and being successful this is a slightly different version. Maybe more towards facebook and uber story where its a great growth story and will get around to making a profit later. Mike, what do you think the reason the market allows them to do this, fund the negative Free Cash Flow is because you can draw that line from here where they are in terms of subscriptions out to whatever percentage of Global Broadband customers you think they can get and i think were beyond the point where we think its a zero sum game its not netflix versus cable versus hulu and everybody else in the letter today, netflix says there is room for many of us in this world and that seems to be proving true. So, the key for them is do subscribers grow faster than content costs over time . Which side of the debate you fall on, is that a big part of it thats the right way to frame it mike is exactly right, theyre giving them the room amazon was mentioned earlier i think that was another interesting example. The difference, though, with amazon is all their profits are coming from aws. Its a completely different business line that they kind of hit upon that they were smart about. Netflix is in a really specific business here. I think theyre doing a good job with that business, but i do think headwinds could be sort of the content pipeline itself. I think its going to get more crowded, more competitive. Youve got to fight for those things and it will cost more money. We have to leave it there here to join us to talk about netflix. Meanwhile, someone call jack bauer. Td ameritrade is creating a new business well have throws details coming up. Halliburton moving higher today after posting bigger profits and revenues than wall street anticipated the fast money fast money guys will look at what stocks you should be buying in the energy sector. Pssst. What . I switched to geico and got more. More savings on Car Insurance . Aha. And an awardwinning mobile app. That is more. Oh, theres more. Mobile id cards, emergency roadside service. More technology. I can even add a new driver. Right from her phone geico. Expect great savings and a whole lot more. Look at this finish on wall street doesnt look like how we started. Futures this morning, the dow was supposed to be lower at the open by 60 points. We turned around, especially after that afternoon vote to reopen the government. And then really bumped on the bell record highs across the board today. Time now for a cnbc news update lets get back to sue herera hi, kelly hi, everyone heres whats happening at this hour Vice President pence standing beside israeli Prime Minister netanyahu blaming democrats for the Government Shutdown and thanking President Trump and the republicans for ending it. Let me say, we welcome the news that thanks to the firm stand taken by President Trump and the house and senate republicans, the shutdown in washington, d. C. Is coming to an end. Five people are unaccounted for after an explosion at a drilling rig in oklahoma there were 22 people working on that rig when it occurred this morning. 17 workers were pulled from the site, including one who suffered minor burns. Part of the rig collapsed from the heat of that explosion the price of gasoline continues to rise. The National Average price of regular gas is 2. 53 a gallon, according to aaa thats up more than 7 just since december and the price may rise a few more cents as retailers have not fully passed on their higher wholesale gas prices to motorists. Thats the news update this hour kelly, back to you thank you, sue. Sue herera by the way, it wasnt just netflix. We had numbers out from Td Ameritrade thats right. The market is liking what its seeing from the First Quarter results from Td Ameritrade and Td Ameritrades positive results are largely thanks to what the market is doing on the bottom line, Td Ameritrade reporting earnings per share of 52 cents compares with estimates of about 50 cents. On the revenue side, Td Ameritrade also beat 1. 26 billion. That compares with estimates of 1. 2 billion now, interestingly, the ceo said in a statement that block chain and cannabisrelated securities drove further surge, particularly toward the end of the quarter there. Their client assets of 1. 2 trillion, up 48 year over year. Back over to you from block chain and cannabis, something much more plain vanilla, thank you Td Ameritrade is also going 24 5, 24 hours a day, five days a week thats when you can execute trades, all day and all night. Joining us is chief strategist over there, j. J. It sounds like people who needs to trade the s p etf when youve got cannabis, you know, futures or something seriously, why are you making this move . Well, were making the move, kelly, because look whats happened to tv you remptsed the show 24 before the commercial break. You had to watch it when it was on at exactly 9 00 p. M. Eastern, whatever it may be a few years later, thats the silliest thing weve seen. Why wouldnt it be on demand our research and clients tell us that 70 of our clients do their research at night or on the weekend, whenever the market is closed so, they do a lot of it at night, why wouldnt they then be able to react on what theyre researching at the same time its been a great demand from our clients to kind of meet them where they live and technology now allows us to do so were taking advantage of what it does and giving a service to our clients. What happens then when that client thats been researching an idea wants to execute that trade in the middle of the night in one of the etfs youre now trading 24 hours do you actually execute that on your end how does that fit together does the market actually allowing for that right now . It is, michael. We just leveraged processes we have during the day with overflow providers, et cetera. With all that being said, i was on there last night, the first night we did it. And most of the markets were three cents wide all night long. Have you to remember, this is primarily retail trading small we very much encourage people, just like anything else, michael, education is such a big part of what we do in our education, its all about starting small its a new product, new thing at night. So, stay small i was on there last night trading small, as were many many others. And great markets, really tight. Have you to remember one thing about the 12 etfs we allow people to trade. Youre talking about the s p, spdrs. What trades at the same time is the emini s and future. Theres a natural hedge for Market Makers so, therefore, encouragement to keep markets tight because they can lay off the risk it isnt adding any extra risk to the system. Its allowing people to do what they want, when they want to and thats why were very select stif on the names we started with. A Little Silver and gold in there, too, emerging markets keep us posted thanks. Thank you, kelly. Energy prices are on the rise and so are energy stocks. The fast money tde wh rarsit their picks for the sector next on the closing bell. [ 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. Your but as you get older,hing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Its day three of the shutdown of course, the senate is scheduled to vote today at noon on a shortterm funding bill. Theres a consensus that our ceos want america to be strong and then theres the consensus in washington that there can be no consensus and i dont i think a lot of americans are saying, what is this about other than hurting people this is a real shutdown now these are people not going to work this is a military not being paid this is Childrens Health insurance in a number of states being shut down. The Senate Passed the bill to fund the government for three more weeks the vote was 8118 with a significant portion of the democratic conference on board we will vote today to reopen the government, to continue negotiating a global agreement with the commitment that if an agreement isnt reached by february 8th, the senate will immediately proceed to consideration of legislation dealing with daca. Stocks near their session highs. The dow, the s p 500 and the nasdaq, one, two, three, all hitting record highs today 140plus point gain on the dow today. A lot of that just at the close. That puts the dow at 26,200, a record close for the blue chips. I like watching that little chart crawl at the bottom. Energy reached a new 52week high, closing up more than 2 . Here to trade it, fast money traders. Hello, guys. Why dont you kick us off here is this all a halliburton effect in the market today . Is this an earnings thing . I think its one of the best places in the market in terms of earnings what do you think about the sector i think its an underpositioning reason behind it ultimately, this is a massive pain trade if you look at the value growth from the Fourth Quarter last year and the way energy rallied and took off, a lot of the funds that participate, dedicated energy funds, they didnt participate in that real upside with energy. Theres a lot of underexposure they came in on their books with this year. Theyre seeing a big catchup. I think this is a pain trade and ill tell you why. I look at the flows in our desk, pain trades dont occur in the institutional trades right now i wouldnt be chasing it here. I would prefer to be short, lets say, the xop as an expression on that. So grasso, go ahead. So, i cant argue with anything david has said. Its obviously the weighting and s ps at extreme lows compared to tech being at extreme highs in the overall weighting. You said it was the halliburton effect yeah. Thats up 30 from november lows so, if you look at those plays, youre better off there than large integrated names exxonmobil, how much do you think that is up since november . Ill tell you. 10 . These big, fat, multinational, large integrated names is not where youre making your best bang for your buck because oil is rangebound you dont get into an integrated name when rangebound. Good stuff. David sfast money coming up a 5 00 p. M. We turn to a news alert on clorox. Cloroxs cfo steve robb announced his retirement hes been cfo since 2011 hell serve . That role through march where hell be succeeded by kevin jacobson, whos been in charge of Financial Analysis since 2011 the company credits robb with 100 million in cost savings annually back over to you. Might need him in congress. Thank you. Apple ceo tim cook issuing a warning to just about everyone using a phone. Well tell you what that is before the break another look at netflix shares, rngsept. Higher after its latest more closing bell in two apple ceo tim cook speaking out at Harlow College in the uk last week warning about the overuse of technology and social media saying, quote, dont have a kid but i have a nephew i put boupdryes on some thing i wont allow i dont want them on a social network, end quote after launching the ipad, steve jobs said, quote, actually we dont allow the ipad in the home we think its too dangerous for them professor adam molter talks about that in his new book irresistible, and ed lee welcome to you both. Ed, let me start with you on the apple piece of this. Is it hypocritical is he drawing too fine of a distinction between the social media and iphone if so, does he need to do something about it there was how smartphones themselves are addictive i think hes referring to kids of a certain age his nephew is around 10 or 11. Thats a perfectly and valid point. I have a 13yearold she didnt get into social media until 11 or 12 now i cant pull her away from it but i think thats a fair thing to put on. At the same sometime its like, yes, apple doesnt own social media or not outright. They just enable it. Its easier for him to sort of make that, you know make that sort of draw that line, at least. Professor, what do you think having done quite a lot of work on this for the book i think thats absolutely true children especially dont have the resources, the capacity to control themselves in the same way adults do. Having said thattings adults spend four hours a day on screens. And thats growing every year. Thats grown from three hours two years ago. So, i think its a concern for adults as well, but especially for children who need to be guided by adults. Its funny. I feel like the road map for the industry has been laid out there by the alcohol industry, which has been able to say thats not a good sign. Its not, except theyve always said underage drinking you have to label it. Even though they realize people do below the legal age, they do sample and they do experiment, they can kind of benefit from that without actually promoting it. How can we ever go down that path for technologying and for social media and should we be specific about social media or is this about iphone usage that leads to that or i mean, the other thing, again, to look at the technology specifically, i mean, imessage is a huge part of the apple ecosystem. That you can argue is social media. My daughter spends as much time on that as she does her instagram or snapchat. Its as much a part and parcel of that. I dont think tim cook would disagree with that i dont think he would say, oh, thats want what we do i think hes thinking you need to put limits on it at a certain age. Is it fine to leave it up to parents to say, you got to if you want to keep this away from your kids, keep it away from your kids or headed someplace michael suggests which is effectively regulation i dont even know if well have a legal age but i think you can play it both ways. I think were headed down the path of regulation when people at Large Companies say our key objective is not consumer wellbeing, its to ensure you spend every possible minute with your devices, thats a concern. Theyre succeeding at that thousands of people against each individual consumer trying to regulate their behavior. To me thats a mismatch. To me, regulation is something people will consider. Its one thing if its alcohol, firearms, tobacco its another if youre talking candy, soda, social i dont know where this will fall, but thank you. A quick what were you going to say it can be argued either way the tide is turning against tech its seen as a danger in a lot of ways. I think if tech doesnt figure it out, they will be regulated thats where the stakes books like yours will be a big part of that thank you for joining us. Thank you. Ed lee and adam alter. We want to keep you updated on whats happening in washington and in the white house. News alert with eamon javers reporter thats right. Were getting new news now from the u. S. Trades representative the. This coming out just within the past couple of minutes saying the president has approved relief for u. S. Washing machine and solar cell manufacturers, u. S. Trade representative rob t announcing the president approved recommendation to safeguard tariffs on large residential washing machines and imported solar cells and modules. They made this recommendation on the basis of an inner Agency Committee process, theyre saying this will be seen here at the white house as a move thats very much designed to protect american jobs in step with the president s more protectionist rhetoric around jobs and globalization. So, well wait and see if theres any full statement here from the white house thats the news from the trade representative right now, kelly. Eamon, thank you. The market, of course, jumping ahea the market jumping ahead of this meantime bitcoin is taking the street by storm, but theres one firm thats not biting, and tonight on fast money, a technicians take, and why he says keep buying tech. And a gentle wavelike motion. Liberate your spine. Aflac and reach, toes blossoming. Not that great at yoga ya but when i slipped a disc, he paid my claim in just one day. So he had your back . Yup in just one day, we process, approve and pay. One day pay. Only from aflac oh, nice music its time for the takeaway amazon launching its checkout free store to the general public if they get this right, what is at stake i guess plenty is at stake. It seems like a lot of them would want to go, i do wonder if its all about cost, at the checkout clerk level, but really something more than that, where the general use experience is better. By the way, we went to the seattle store, walked out with a bunch of stuff, was charged for everything except a yogurt. Thats what they call shrink in retail. Obviously its a work in progress up next, bank of america doing away with free checking for the remaining ebanking customers. Now a 12 monthly fee if they dont carry a 1500 balance, or over 200 direct deposit theres other lowcots checking accounts is there broader significant obviously there was a lot of political pressure that they have to do something for these people who dont make banks a lot of money so if you have feebased checking accounts, if youre if you have small balances, ear maying a tremendous amount something tells my unthe current finally in case you missioned it tim buckley spoke to our bob pisani about bitcoin you will never seed a fund from van guard on bitcoin. We tend to stay away from assets that dont have underlying economic value, they dont generate earnings or cash flows. Never is a strong word. Vanguard can afford to not chase cryptos. Is this going to prevent anyone else bitcoin is alsodsh van guard is a notforprofit sort of, and they have a strong mission, that we let our clients participate at low cost in the growth of business thats kind of what. You just sort of hope that if the liquid concern accounting overcome using a lot of managers are in a hurry its not that profitable it really isnt. Thats a fair point were going to circle back to this 9 pop in shares when closing bell comes right back. Finally. Hey ron theyre finally taking down that schwab billboard. Oh, not so fast, carl. Oh no. Schwab, again . Index investing for that low . Thats three times less than fidelity. And four times less than vanguard. Whats next, no minimums . No minimums. Schwab has lowered the cost of investing again. Introducing the lowest cost index funds in the industry with no minimums. I bet theyre calling about the schwab news. Schwab. A modern approach to wealth management. Exwith a classleading8 31 mpg combined estimate. D lease the 2018 nx 300 for 339 month for 36 months. Experience amazing at your lexus dealer. Hey you still thinking about opening your own shop . Every day. I think there are some ways to help keep you on track, closer to home. We grew to a trillion dollars in assets under care by thinking about your goals as much as you do. The Senate Finally has enough votes eamon . Were about midway through the process. The going were wading for the hour to vote, and then the president has to sign this bill that will keep the government or reopen the government for just three weeks they expect at the white house they might be able to have it done by about 7 00 kelly, over to you well continue to monitor it netflixs market cap crossing 100 billion for the first time. Up 3 , 9 after hours. Its amazing, its an extreme version of what is going on in the market as a whole. Ive said kind of optimistic things thats been true for years, and this stock has had tremendous switchbacks, down 20, down 30 it doesnt mean its up up and away forever, but theres a greater number many people persuaded that i have durable momentum what do you think will be listen for in the conference call. Thee reaction on the entrance of disney, and open questions. The u. S. Subscriber beats even though they raised 5 percent. That helps explains the gain that does it for closing bell today. Fast money begins right now. Fast money starts right now. Overlooking new york citys times square, steve grasso, david see berg, guy adami. The real action is well head to hollywood florida, to puke to one of the potonly etfs, and whiched tracers tell us what could be the match made in heaven