Panels effective february 7th, the result of a months long investigation by the bipartisan trade commission on washing machines, nonu. S. Importers will be charged 20 to 50 per unit depending on the volume of the products they are importing. Goldman sachs estimates the price tag a shopper will see will raise anywhere between 8 to 20 in the absence of these highvolume cheap products from overseas the administration on solar panels is adding a 30 levy. It declines over time and it will benefit u. S. Manufacturers. But companies that install solar panels will see their prices increase that led South Carolina congressman mark sanford to call the tariffs shortsighted and said his state would lose over 7,000 jobs in the Solar Industry as a direct result of these tariffs. This afternoon at the white house, President Trump said he expected the move would create jobs our companies will not be taken advantage of anymore and our workers are going to have lots of really great jobs with products that are going to be made in the good old usa thats what this is all about. Now, canadian Prime Minister Justin Trudeau was on a panel in davos. He didnt reference these tariffs specifically, but he did criticize countries are protectionist tendencies and hes committed to getting the u. S. To see the benefit of nafta. Were working very hard to make sure that our neighbor to the south recognizes how good nafta is and that it has benefitted not just our economy but his economy and the worlds economy, but were all so very much open to more trade deals involving more people as long as its in the best benefit of all of our citizens. Reporter its worth noting the sixth round of nafta talks kickses off today in montreal. There is some perception that President Trump, depending on how todays actions are received, could be emboldened to take even more hard line actions on trade we will see. Kelly and bill kayla, how do these actual tariffs fall with what the range of outcomes we could have seen here . Well, this was the absolute maximum the International Trade Commission Recommended they made this recommendation back in december of last year and the administration didnt make any changes to it they said, thats good, thats what were going to go with. They are incredibly steep, but one reason why some people are saying maybe the rush to say this is going to cause a trade war are too premature is because these arent targeted at a specific country theyre blanket tariffs on a category, so any country trying to import solar cells or washing machines into the u. S. , theyll be charged these prices. Before you go, what are you hearing about this alleged rift between the president and commerce secretary wilbur ross, who to this point has been the point man on these trade negotiations reporter the top official in the add mrlgs, has been rising over the last few months he has been incredibly tough at the negotiating table in nafta the president has really liked the way hes approached that so, i think what youre seeing at the same time as some of these reports that perhaps secretary ross is falling out of favor with the president , is that the president has really taken a liking to his trade representative who is actually leading a lot of these negotiations in some different scenari scenarios. Congress and ftr have different per vi purviews at time really it really is sst taking a front seat. Whats next we heard it could be steel, coal products. Reporter department of commerce and secretary ross just this week submitted a report making recommendations on how the administration should treat aluminum products, aluminum that is, they say, dumped into the u. S. And just a couple weeks ago they did the same thing for steel the administration is still grappling with how to respond to that and what potential retaliation could look like. One thing you could hear the president talk about in the state of union is the investigation into inte lecture property violations by china that is something that even the Obama Administration had been looking into and is likely to be lowhanging fruit for them to pursue. Kayla, thank you. Well see you later. Those tariffs imposed, trade talks dragging on. Joining us now with both sides of the argument, jimmy, Economic Policy analyst at American Enterprise institute and scott paul, president of alliance for American Manufacturing good to see you both jimmy, what do you make of this . Are we headed for a trade war of some kind or will we see these blanket tariffs for the foreseeable future listen, i think as was just mentioned, were seeing a loot of lowhanging fruit being picked with the exception of the u. S. Withdrawing from the pacific trade deal back in 2017. My concern is we spent the last year talking about lord knows ive been on here talking about tax reform or deregulation and we have forgotten just how radical this administration really is when it comes to trade. We have a president who thinks trade deficits cause huge job loss in actuality theres a change. You have lighthizer who doesnt believe in the World Trade Organization and might use a bad ruling to go after the wto and they still have Peter Navarro in the white house who would like to dismantle and repatriate Global Supply chains. Theres a risk out there we forgot about weve all been juiced up about these tax cuts. Mr. Paul, from your organizations point of view, are you pleased with what youre seeing coming out of the white house . Are you concerned about the consumer pushback if they go, wait a second, why am i paying more for my washing machine . I dont see a big Consumer Price effect because you already see samsung and lg breaking ground or producing washing machines in the United States. Theyve been playing whackamole with trade policy before you see a tesla giga factor ramping up to make solar panels. I think the supply will fill in. I think as the president indicated, its good for jobs. I have disagreed with this administration on many things, but i think theyre channelling Ronald Reagan on trade policy. I think its good. I think the trade trade deficit is a challenge and i think weve been in a onesided trade war for a long time we have not pushed back and used the laws and tools available to us george bush did it with steel. Reagan did it with cars and steel. To me, this is nothing new this is a continuation and im glad were back at it. I dont understand how it can be good for jobs to take money out of consumers wallets. I think the Consumer Price effect is wildly overestimated and youre assuming, you know, cost savings are passed along to consumers in the first place when you look back at steel tariffs that were imposed by george bush, the itc said there was a nominal effect on steel consumers, much less than when china started consuming steel a few years later, which really shocked prices we have to be careful about the philosophy on this versus what we will see are the facts on the ground and i do think look, these are forwardlooking industries, particularly solar we need to be manufacturing this this gives our producers a chance no one isentitled to benefit from dumped steel or subsidized product. I grant you on steel, aluminum were talking about complex supply chains. There was a lot of dumping, no doubt, in some of these commodity markets. And solar is a little unique of an issue washing machines, lets talk about washing machines for a second what is the point, simply to pull that production back in the u. S. Is that no sense it will be more expensive for consumers than madz elsewhere whirlpool and other claimants were saying they compete in the marketplace but they cant compete on dumped product coming in lg and samsung were moving their production from mexico and south korea and china and vietnam and thailand and an action like this was really the last resort they make a competitive product and a lot of consumers buy it. Whirlpool is the largest manufacturer in the world. Its not like theyre seeking out protection this was a last resort for them. I think consumers will benefit because youre going to have more Companies Making washing machines in the United States. Down the road that will be april far better thing to have a competitive, innovative Industry Based in the United States, well benefit from the research. Youll see that impact jobs and, again, i think the consumer effect is wildly overstated. Meanwhile, these communities, you see it in ohio, are addinging back jobs. Its a novel economic theory theres no consumer harm, it would be better if all these companies were based in the United States and we achieve no benefit from global trade. Its a novel economic theory talking about samsung washing machines well see if they continue to build them in the United States. I think they will. The history of these trade deals is that theres some minor help for the manufacturers, but the people who buy the products, the people in the case of commodities, we use the products, get hurt, we see solar panels i know this administration doesnt have much use for solar power, but thats whos going to get hurt. While these may be individual sort of lowhanging fruit kind of cases, again, i think they sort of hint at whats coming down the line, which is more of these kind of cases as well as an inkling of what might happen with bigger things such as nafta. Gentlemen, thank you. This debate will continue, thats for sure. Jimmy and scott paul from the alliance for American Manufacturing. Meantime, shares of twitter have been under pressure today after chief operating officer anthony noto did announce hes resigning to become the new ceo at online lender sofi. He led the companys ipo analysts raised concerns about notos possible exit because he has been a stabilizing force in Ceo Jack Dorsey has had to split his time between twitter and square be that as it may, the stock, i think, is surprising that its only down 2 today thats near the lows of the session right now. I thought it might have been down more than that. We had some speculation out yesterday. Twitter is starting i dont know some people like twitters position relative to a facebook and others that theyre all dealing with a competitive market environment shares of netflix trading higher, more than 10 after reporting an earnings beat last night. 10 . This company was up 18 . Despite that strong report, investors say theyre still skeptical on the stock joining us is Larry Haverty from gibelli funds. I dont want to call you a hater but why dont you think theres as much that meets the eye. Were basically cash flow investors. Were on the value side of the equation you look at netflix and youre paying 115 billion for the entity for that you get 2 billion going out the door now, you have a wonderful business, but its nice to look at but you dont want to be ab owner. Today the stock went up in the neighborhood of 5 billion so, as a reward for this as a shareholder, youre going to get more Free Cash Flow go out the door. Are you in the stock . Are you in it . We have a tiny position. What are the bulls looking at that youre not looking at the bulls are looking at the subcount the subcount im a former retail analyst, bill you can sell as much if you want, all you have to do is change the price if you look at incremental sales of netflix, Fourth Quarter versus Fourth Quarter this year. They committed 10 of incremental sales to profit. This year they committed 8 . Their basically cutting prices and marketing sources indicate their advertising spend is up. They said that on the call its costing them more to get the subs as a result of this, theyre moving from buying content from places like disney to making it. And making content is an inherently risky business. They made 131 million pretax in the quarter, but along the way, by the way, the auditors required them to write off 39 million of something i suspect it was house of cards. In any regard, they thought they were making 6 and all of a sudden theyre making 4 so, you have a business that is because its making content, its more risky making content if youre a film producer, time warner said 10 . The analyst afterwards was, quote, so worshipful, a collection basket afterwards would have been appropriate. This is a funny way to have a Conference Call. Necessity had a wall street analyst. It aired at 6 00 i dont know if it was live or taped. I was about the 40th person to sign onto it but there was no chance to ask what i would call penetrating questions. And to me, this is its a re flag but you look at the whole thing. Its a wonderful business. They have a great product, but youre paying 1. 25 times time warner for it and getting half the cash flow. Come on, you have to feel a little remorseful that you dont own more shares of this committee as it continues to go higher alltime high, over 100 billion in market cap for the First Time Ever as it continues to rise here. We like to be disciplined and were doing quite well the fund im involved with, we were up 28 last year. Our biggest position is sony, which has been very competitive with this stock. We like the industry its a great place to be we own google, facebook. We dont own very much amazon. At the end of the day we like cash flow. Its jerry maguire, show me the money. Im not seeing the money interest expense went up close to 50 in the quarter. The forecast on the Free Cash Flow means interest is going to go up next year probably in the neighborhood of 50 million. Thats a 5 billion headwind if you capitalize it at the same rate the market currently capitalizes discipline a hallmark of the gabelli group. Larry, good to see you. Thanks a lot. 45 minutes to go, a little less than that dow has been fluctuating down 16 right now. Its actually kind of torn between some big gainers and decline decliners. The nasdaq up 44 its up more than half a on the strong netflix move. A lot more ahead on todays closing bell. Announcer straight ahead, the big battle over a key player in the Telecom Space is verizons 4. 4 dividend enough to get you to buy in . Plus, a key reading on the state of the Retail Investor find out if the ceo of Td Ameritrade thinks all that money is ready to pour in off the sideline wait until you see why he thinks more investors are playing the game again nus. S ckn o l iba itw mite s 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 th 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 . S. Welcome back travelers reported much higher expected quarterly its vying with ge, also having one of its best days in a long time ge was up more than 5 now up in the 4 range not one of the big dollar contributors to the dow, though, these days at 16 stock. Meanwhile, shares of verizon have been flat on the day and pretty much flat the past year the Company Reported earning which missed expectations. Revenue did top estimates. Tax reform could be a big boost for the telecom giant. Company stands to add almost 4 billion to its operating cash flow ceo Lowell Mcadams spoke to our david faber exclusively earlier on cnbc. He told david what he plans to do with those tax savings. Investing in our network is our toppriority. We also, as you know, when we took over the vodaphone asset, we took over 100 billion of debt on our balance sheet. Paying that down is important to us we know that our investor look for our dividend weve had a great track record around dividend. Is this an opportunity to buy the stock . Joining us to debate that are jonathan chaplain and mitchell mckennan from Payne Capital management jonathan, youre a little more cautious on verizon. It was still a pretty good quarter in terms of the numbers. Is that just because its been such a quiet, competitive environment . The way id characterize it, i think it was as mediocre as the market expected. The results werent grade. They were pretty much in line with expectations. Theyre doing a little less bad than they were doing last quarter. Michele, i saw you nodding when i was talking about the tax reform and the benefit they may get from that. How much boost do you think they get from that . 4 billion is huge. Something im excited for is the 5g, which is unveiling later this year, which is going to be 100 times faster than your typical Internet Service not only is it going to be faster but have better margins and that will give verizon a ton of opportunity for new Customer Growth as well as selling that product to its current customer. Its funny you brought that up because one of the things you brought up is you were relieved they werent doing investment with the tax savings. The 5g topic michelle raises is really important. In the past on this show what ive said is verizon is behind the curve strategically. They cast up we pegged it at35 million. That will absorb the vast majority of what they gain in terms of tax savings over the course of the next four or five years, which i dont think is what the market is anticipating. If you look at the runup in verizon stock since the the excitement about tax savings have come into play, the expectation is is that is coming back to investors. We heard first use of cash is paying down debt, which is not exciting at all for equity holders. The second use of cash is investing in the network 35 billion is a big number they have to fess up to what about the cost of the buildout to 5g. Thats a point. 500 times faster, as someone buying that type of product now, thats huge. What will be the return on investment then . Youre suggesting that it will that the cost of the buildout will be justified by the response for consumers what are you expecting them to get from that . About 16 billion negative return on investment what do you think i mean, it could be i dont know, 100 times . Also, you have to look at the fact theyre growing their internet subscribers already 100 times, thats pretty impressive on a relative basis, too, just thinking about the analytics, the stock is still cheap relative to the s p and also the dividend the dividend is double times the s p. I think its a buy its only 100 times faster than verizons existing service, which is incredibly slow theyre saying they should be able to offer a product comparable with cable. In many markets theyll offer this fixed wireless broadband product, at t will have rolled out fiber to the home as well. Theyll be the third competitor with a comparable product. Not 100 times faster than the competition, just 100 times faster than. At t is trying to buy time warner you have sprint, tmobile. Does verizon need to look more like verizon the one thing they said today, which is a relief to me, is theyre not intending to buy a media company. Theyre excited all the Media Companies are interested there them but they have no interest in making an acquisition at this point i dont think Telecom Companies buying media is a good use of cash. I think at t will have a hard time creating value out of that deal the best thing you can say about verizon is at least theyre not at t go ahead. We have to go im just curious, why do you think the stock is only up 2 in the last year with bright prospects . Who knows your guess is as good as mine. I think its about the opportunity looking forward. Im a bull for the market in general. Now is the time to buy. Very good jonathan, michelle, thank you. My pleasure. Good to see you both. Heading to the close, 35 minutes left in the trading session here the dow is the lone minus sign but its been fluctuating on either side of the unchanged level all day today. S p, nasdaq, russell, any positive close is another new alltime high for those guys Td Ameritrade ceo has surprising reasons why he thinks people are getting back into this market. Thats coming up next. Plus, will two very different headlines lead to a divergence in stock price between jpmorgan and bank of america . Closingel wl rht ck blilbeig [ 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. With the extra third rowr. Why of seats. Bullish on the future. They think its theirs. Look at them, they have no idea its not theirs. Its mine. Mine. Mine. Mine. The new lexus rx 350l with three rows for seven passengers. Are you excited about your baby sister coming . Experience space for the unexpected with the rx l, part of the rx family. Experience amazing at your lexus dealer. Welcome back with the s p up 12 points, here are some sectors we have more advancers than tee kleiners real estate utility is leading the way today. We had a bit of softening in Interest Rates, even going back to bank of japans easing of Monetary Policy. Telecom has been out there on its own. Still down less than 1 today. Lets look at some other Market Movers on the day so far. Johnson johnson, the biggest decliner in the dow after they upheld a patent on Rheumatoid Arthritis drug all this despite j j reporting better than expected earnings thanks to Strong Demand for its pharmaceuticals. That stock down 4. 25 . Gopro keep going down after Morgan Stanley downgraded it from underweight to equal weight and slashed it from 9 to 6. 50. Theyre citing weak demand for its new products of course, they got out of the drone business recently. That stock down 3. 4 we are on the half hour. Time for a cnbc update with sue herera. Hello a 15yearold male student will be charged with murder and attempted murder in a High School Shooting in southwestern kentucky two students were killed another 12 suffered gunshot wounds Senate Majority leader Mitch Mcconnell addressed the shooting in his home state from the floor of the senate. I know i speak for communities across my home state and sending prayers of comfort and healing to students, faculty and everyone affected by this violence our hearts are with the entire community in Marshall County and our gratitude is with the First Responders who rushed into harms way it is day six in the sentencing hearing for larry nassar who pled guilty to several counts of criminal yam sexual misconduct. Alex rodriguez is staying over for aaron boone again this time moving into the espn booth for sunday night baseball. Rodriguez replaced boone as the new york yankees third baseman in 2004. Boone was recently named manager of the yankees there he was with melissa lee. I was going to say, wait a minute, is melissa part of this baseball coverage as well . You never know. Yeah, but they good for her. I think that was back in chicago when they were on assignment i see thank you, sue 28 minutes to go dow is fractionally lower on the session today. Everyone else is positive, especially the nasdaq with netflix up more than 10 on its earnings nasdaq up twothirds of 1 russell is up a quarter. Name the artist i know this song. Who is it . Jerry rafferty, 1968. I know the song tesla is announcing a pay plan for ceo elon musk it could pay him billions or zero. Ray dalio warning this bull market could quickly turn if just one thing happens find out what it is when the closing bell returns with Jerry Rafferty this is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure from hacks and threats others cant see. This is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. This is not the cloud you know. This is the ibm cloud. The ibm cloud is the cloud for business. Yours. Welcome back to closing bell. Billionaire investor and Hedge Fund Manager ray dalio issuing a warning at Davos World Economic Forum earlier today. It just takes a little change in Interest Rates to have a bear market the things we look at are in terms of tightening and Monetary Policy will it be tighter than is discounted in the curve . We have a very small amount of tighteni tightening, which is built into the curve. If it is greater and Interest Rates are greater, that can affect all asset prices. Something to chat about in our Closing Bell Exchange today. Joining us, Scott Collier from adviser Asset Managers along with steve grasso from Stuart Frankel and Rick Santelli will weigh in on that steve, youve made it known. You would rather see the fed cut rates than leave them where they are. Yeah. I wouldnt but do you agree with ray that, you know, an aggressive fed this year could kill this bull market . Of course i dont think anyone disagrees with that statement, but i do believe mr. Powell understands who appointed him, who put him in that seat and what that person, President Trump, gauges as his pa rom ter as success are you saying a Federal Reserve chair could be politicized . Only from the existence of the fed chair. I see. To the point that they understand whats out there in the atmosphere around this decision, i think that there is it is in no ones best interest to raise rates too quickly. I think everyone understands that because the chairman understands he doesnt want to kill the rally either so, i do believe were not going to see that type of aggressive rate rise. Were at historic lows. He doesnt want to kill the rally. Let me ask scott about that. Sure. What do you think is it important to the fed chair that the market does well or that, you know, theres not an aggressive irresponse to tightening i dont feel like the fed feels theres a responsibility to keep the market going up. I think the feds afraid of bubbles. I think the feds also afraid of their own balance sheet, so theyre looking at trying to winnow that down over the years. It doesnt do any good if you cause bond prices to plunge. Its true globally its not just true here. I dont think its a politicalization i just think that i would hate to be in his shoes because youve got a very narrow thread to not to doubleteam it, but at what point do you think they started being afraid of creating asset bubbles . I would say the next person thats going to look into this into one of the cameras in chicago is going to have something to say about that, and cue rick. Are they afraid now, rick, because in 2010, the answer to that, i think, would have been a kneejerk, of course they would prevent anything from happening again. Come 2018, do you think the feds afraid of creating bubbles . Of course they have to reap what they sowed and they went wrong in 2010 they took an alternative route its like those movies where you go back in time and you create an alternative route, a new path to the future. They decided that it was better to the forestall some capitalisms enterprise and take a certain road or that they thought they would avoid the worst of a downside. What they gave up was lots of upside for many years to come as we enter our tenth year. We finally may have one year where all four quarters average out above 3 listen, in terms of the let me ask you this ray dalio says he doesnt think an aggressive move by the fed is in this market what do you think . Were taking for granted when was the last time you saw an aggressive fed on the tightening side . Well, im how many years has it been . Now you have a new sheriff in town coming. Thats not aggressive thats like concrete boot type aggressive walking with all this weight the central bank would see a feedback loop if they tighten too aggressively they would certainly take notice its not our Central Bank Im worried about, at i do still feel lots of sympathy for savers who have sponsored some of the activity shareholders are reaping. Its going to be the johnny come lately Central Bankses, like the bank of japan i think were saying the same thing. I think that they dont want to exacerbate the problem and they created this problem hypothetically, but theres a lot of people, so rick said he feels sorry for retirees and people that are savers but there are a lot of people that gained a lot of wealth with the market being the bubble theres a lot of people that earned a lot of millions of dollars with this bubble so if were even calling it a bubble jay powell is on record saying the tax reform, the tax cuts, are less inflationary than he had once thought hes dressing it up to are more dovish immediately. Lets see what happens here you know, so a lot of things have changed Central Banks were the biggest buyers now theyll be the biggest sellers. This repatriation, im not sure whos going to buy all this debt the first year of this tax act will be almost 1 trillion of deficit. Where does that get raised you make a great point. Were nowhere near there were buying but only buying what mature. The other two Central Banks are lightyears behind us scott, you bring up a great point. The real question is, will they really be able to make any significant adjustments, i mean significant . When you group all their Balance Sheets together, when we come to the end of this cycle, and believe me, recessions shouldnt be made into the worst things that could ever happen sometimes a cleansing of the economy is good, but not in the current environment its not we got to go, guys. The clock its later than its ever been, as we like to say. Steve collier, steve grasso, Rick Santelli, thank you. A little more than 15 minutes to go into the close the dow negative by nine points. All the other averages are in positive territory nasdaq is up 52 points. Still ahead, a drop in the u. S. Birth rate is hitting the bottom line of one diaper maker. Well tell you which company Just Announced a big slash. An interest in marijuana and bitcoin helped drive record trading levels last quarter. Tim hockey will tell us if those investors will become longterm investors next on the closing bell. Your brain changes as you get older. 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. 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. United continental will be leading the slate and also features results from Texas Instruments and capital one. And, of course, kelly will have the instant analysis of all those results when they come out next hour. Dont read anything into it as we play timber. Earnings per share in revenue both beat analysts expectations, citing record average trades per day to beat the beat joining us is ceo ted hockey welcome. Welcome back. We dont think the little guy actually left. There have been some stories around that, but certainly there is frenetic activity from retail trade point of view. Were seeing it right into january. Your commissions were up 20 almost 24 year over year. Thats big. Remember, there was pricing action in the market spring of last year. Pricing action meaning you raised prices. Thats a nice way of saying it. We didnt raise prices. The industry went down as a result, even taking those discounts, maybe driving more people supply and demand. Im surprised you think the little guy never left. You might have a different sort of a privileged perspective on this because the people who are traders are an active part of the overall individual Investment Community so are you saying youve not seen any increase, any new people coming in or how would you last year, for example, when there were lots of stories going around the retail trader has left the market, its the most unloved bull market weve ever seen, we were still seeing trades go up high Single Digits or even low double digits. This quarter we just talked about, spectacular increase. And in terms of new entrance to the marketplace, were seeing, for example, our millennial population yearoveryear growth in those accounts, in some cases 72 . Is that why youre introducing this 24hour trade five days a week for some etfs and, eventually, individual stocks the demand is there, you feel . We think theres demand essentially its logical if you think about it, right . In this electronic marketplace amazon doesnt close. So, the idea in a few years of looking back and saying stocks were not trading 24 were starting 24 5 but maybe 24 7 eventually were certainly saying these 12 wildly held and traded etfs give you market exposure when marketmoving events happen overnight. Brexit, the president ial election this happened overnight and the only thing that could trade were futures. Who is actually accepting those positions and know were partnered up with market maker and weve had two days and its very tight, pennies wide. Its not an incredibly liquid market but enough its pretty liquid. And early days of interest to your point, if we see more interest and more players into that market, then were happy to welcome them in. Youve been quoted in saying in this trading environment, one reason millenials are interested in trading again is because of bitcoin and the legalization of pot in various states around the country. Yes if you look at those two sectors in the quarter we Just Announced last year, they would have made up about 2 of trades. And yet this past quarter for the full quarter they made up about 7 or 8 of trades that accelerated the tail end of the quarter. We went to holiday parties, everybody was asking your opinion around cryptocurrency, block chain. If you look at the levels were trading at now, what i quoted on my Conference Call this morning is were still doing about 79 5,000 trades a day thats up from the 726 we recorded in the final quarter. Thats in january. If you took out all of the block chain, all of the cryptocurrencies and all of the cannabisrelated stocks, that number would still be shy of 900,000. I hate to abruptly end this, but we have to go to the White House Press briefing right now thanks for joining us. Tim hockey, ceo of Td Ameritrade. We have h. R. Mcmaster and gary cohn as part of that press briefing thank you, sarah. Its great to be here with general mcmaster as sarah said, were going to the World Economic forum to share President Trumps economic story and to tell the world america is open for business we want the world to invest in america and to create jobs for hardworking americans President Trumps economic agenda has unleashed the u. S. Economy and we are growing his policies have led to a rising stock market, low unemployment and strong gdp growth the administrations commitment to deregulation and our passing of comprehensive tax reform have helped level the Playing Field for our businesses and our workers. As a direct result, President Trumps tax reform and tax cuts over 100 companies have announced policies that will create jobs, benefit our workers and grow our economy this story will only get better as we continue to invest and rebuild americas infrastructure at the World Economic forum, we will reiterate americas commitment to domestic and Global Economic growth and prosperity strengthen close ties with other World Leaders catalyze International Business support for the president s agenda President Trump will reiterate a prosperous america benefits the world. When the United States grows, so does the world the president will continue to promote fair economic competition and will make it clear that there cannot be free and open trade if countries are not held accountable to the rules. As the president said repeatedly, america and his administration supports free and open trade, but it needs to be fair and reciprocal. We will now share a little bit about the president s schedule on the and the economic agenda and then ill hand it over to general mcmaster to discuss our natural security and the president s meeting with World Leaders. The president departs tomorrow evening and arrives thursday morning local time in switzerland. On thursday, he will have a variety of meetings with World Leaders and a quick meeting with schwab, the founder of the World Economic forum on thursday night, the World Economic forum will host a reception with World Leaders to honor the president. Later on that night, the president will host a small dinner with select European Companies to share our economic Success Story and encourage them to continue to invest in america. The attendees run companies that have sizeable footprints in the United States. They have invested in our economy and we wants them to continue to do so and encourage others to join them. The president looks forward to hearing from these ceos and how his administration can help them continue to grow their businesses in the United States. On friday hell have more meetings with World Leaders and then he will deliver his speech that will emphasize everything we talked about today. Now ill hand it over to general mcmaster to talk about the meetings good afternoon, everyone. Afternoon. Afternoon the president will use his travel to the World Economic forum to reiterate his commitment to mutually beneficial partnerships and as gary said to fair and reciprocal International Economic systems as the president has repeatedly said and made clear in the National Security strategy, Economic Security is National Security the president will also use his time in davos to discuss other National Security issues, including the International Effort to denuclearize the Korean Peninsula, our coalition to defeat isis, our efforts to counter irans destructive agenda to perpetuate violence across the middle east as well as irans Ballistic Missile activity and the fundamental flaws in the Iran Nuclear Deal on thursday the president will meet with Prime Minister may of the United Kingdom to discuss the conflict in syria, irans destabilizing behavior and our shared goal of denuclearizing the Korean Peninsula hell meet with Prime Minister netanyahu of israel to reiterate americas strong commitment to israel and efforts to reduce irans influence in the middle east and ways to achieve lasting peace. On friday the president will meet with president of rwanda, the chairman of the African Union to reaffirm the u. S. africa relationship and discuss shared priorities including trade and security he will also meet with president of switzerland, the host for the host nation for the World Economic forum to discuss bilateral investment, Economic Growth and innovation. In all his meetings, the president hopes to increase Economic Opportunities for the American People, to build partnership to address Common Security goals and to find new ways of reforming international and regional organizations to make them more effective and more accountable the president looks forward to a very productive trip on behalf of the American People thank you. He outranks me so he said i had to go first. Go ahead. First question, your economic as far as Economic Growth, we just had a litany of businesses that are going to give back to the American People but doesnt isnt it unfair to give the president credit for that they already had that money in their coffers, isnt that right . Wouldthy have not turned it loose otherwise . Then i had a second question for him. I would disagree with your premise completely you know, look, if they had their money in the coffers, they could have done it last year, the year before, the year before it seems like its not seems like since we have passed the tax reform plan, all of these announcements have been made if you look specifically at the words in most of these press releases, all of them are talking about the regulatory relief, which we saw in the jpmorgan announcement. And weve seen the tax plan mentioned directly that companies now feel more comfortable about the economic position theyre in, they feel better about the u. S. Economy, they feel more confident about their earnings and they feel like the lower tax rate allows them to share more of their potential earnings with their employees. I think theres 100 correlation between what weve seen these almost close to 200 companies do and what we have done from a regulatory standpoint and more tax policy standpoint. My followup question, general mcmaster you mentioned north korea. They have said they are in talks with south korea has the president s policy led to where we are now . And how big of a threat is north korea now compared to even three weeks go as president moon has said, it is the president s policy his ability to rally International Support behind the campaign of maximum pressure that has made a significant difference what you see thats fundamentally different from, you know, a year ago is the common commitment across all nations that denuclearization is the only acceptable outcome on the peninsula. Second that the International Community and china in particular does have a great deal of coercive economic power to be able to bring to bear to this the third element is that everyone recognizes that we cant repeat the mistakes of the past to fall for what in the past has been the north korean ploy to create the illusion of success in talks and to use that to lock in the status quo as the new normal while they continue to pursue these programs with undiminished vigor so, the danger is growing and i think its important for all of us to recognize the north korean regime for what it is and how grave a threat this is to the world. One other thing, let me followup. On the wage increases, hourly wage increases, thats coming out of future earnings and stock grants are Companies Making an investment in their future gary, i have one question for you, one for the general so, the president is traveling to davos to present his America First agenda how can one square an America First agenda with goals of increasing trade the president spoke many times of trade deals and other International Agreements in which the u. S. Is being ripped off and other countries are laughing at us does he believe that all of these negotiations and agreements are inherently zero sum and is that, you know, for america to come first, do other countries have to take a backseat, or can agreements be truly winwin . Look, the president believes we can have truly winwin agreements America First is not america alone. I said there my remarks, when we grow, the world grows. When the world grows, we grow. Were part of a world economy. And the president believes that. Hes going to talk to World Leaders about making sure we all respect each other we all abide by the laws we all have free, fair, open and reciprocal trade if we live in a world where there are not artificial barriers, we will all grow and we will all help each other grow and the president truly believes that he went to the g7, he went to the g20, he went to nato, apec, hes gone to the u. N hes talked about these hes talked about these positions consistently and this is exactly what the president is going to talk about at the World Economic forum. One for the general also. General mcmaster, there have been reports most recently that leaders authoritarian leaders in other countries, particularly southeast asia, are using one of the president s favorite phrases, fake news, to describe reporting that is not flattering and reflects poorly on their country and reports inkreeconvet truths President Trump has made a point of not publicly talking about things like human rights and freedom of speech, freedom of expression is he concerned at all, or are you concerned that the president s rhetoric combined with his silence on these issues is creating a climate where authoritarian leaders feel they have free reign to do what they want and the United States will not speak up publicly . Its just not true. Its not accurate that the president hasnt spoken loudly both in words and in deeds against those who violate human rights i would ask you to go to his speech that he delivered in warsaw where he talked about the importance of individual rights and rule of law. I would say go to his speech in riyadh where he said all nations of the world have to come together to defeat this wicked ideology that per pet rates terrorism. I would say look at his u. N. General Assembly Speech where he designed sovereignty as strong sovereign nations who respect the sovereignty of their citizens and the sovereignty of their neighbors. Look at his deeds, look at his deeds in confronting the most brutal dictatorship in the world, north korea how could that not be a human rights issue how about in syria when the Syrian Regime mass murder of their own people with the most heinous weapons, the president struck against that regime how is that not rhuman rights look at the cuba policy when they had done nothing but strengthen the grip of that authoritarian regime theres a new cuba policy which tries for a different purelyistic economy that can better protect the rights. Cuban people look at what the president has said and done on venezuela the list goes on this premise this false premise that the president hasnt spoken on human rights, its demonstrably false in words and also in deeds. Thanks for that question general, last time you you mentioned it wasnt useful general mcmaster, theres been a lot of talk about you possibly going back into the military can you tell us today if you plan on staying in your current role or if theres consideration for you to leave no, i have a job. Its a tremendous honor to do this job every day to advance and protect the interest of the American People, to do my best, to provide options to our president and once he makes decisions to assist with the execution of those decisions so, i have a job and it is my intention to go as long and hard as i can to serve the president and the nation thank you. I was just wondering if you could talk by the way, he does a really good job dont let me forget to ask you if youre staying in your current job, too over here i know first youre going to davos. I want to make sure i understood, what went into the president s decision to go to davos . Hes the first sitting president to go since 2000 a lot of what this forum is about seems to go against his populist America First agenda. America first, not alone. The president is very proud of the accomplishments eats created in his first year. When the gdp growth on the unemployment numbers, the stock market, the reg reform, what weve done on tax reform we are competitive today we are competitive with the rest of the world we have a tax rate competitive with the rest of the world the president is going to davos to speak to World Leaders about investing in the United States, moving businesses to the United States hiring American Workers, changing the direction of our economy to be one of the biggest and best and most efficient economies in the world the president has done that. As i said, as hes gone around the world, thats what hes talked about hes committed to doing that and being the best salesperson the United States has to drive Economic Growth and drive prosperity and drive a better quality of life for american citizens gary, you talked a great deal about some of the positive economic numbers can i get you to drill down on workforce Participation Rate, dla at 68 in june of 2017 what can or is the administration doing to get that number up 70, 75 or higher i talk about it the first friday of every month. Sometimes the second when the unemployment number comes out. We had two really disappointing components of the Unemployment Rate of the unemployment the reports. Not just this year but the last three, four, five years. Weve had no wage growth in the United States and our Participation Rate has remained stagnant at best part of our tax reform plan was to get people back into the workforce. We need to create more jobs. By creating a tax system that allows us to compete globally with the rest of the world were at a 28 corporate rate. Were at an effective rate for personal businesses that allows them to compete. When you compete against the rest of the world, you grow your business, you hire people. When you hire people, you compete for labor. When you compete for labor, you make wages we need wage growth in this country, something we havent seen in a decade as we see wage growth, weological make it economically realistic for people to come back into the workforce. It will make sense for them to come back in the workforce the alternative cost of staying out of the workforce will be way too high once we start seeing wage growth. The big catalyst for everything were doing is to create better jobs, higher paying jobs, bring more people into the workforce, grow our economy and tax a broader base thats exactly what our whole premise is based on. So far, the very early data looks very good. Were excited about where were going. Today the president announced new tariffs and the Prime Minister of canada also announced a big trade deal what do you say to critics who argue the president is giving up the United States seat at the global trade table first of all, i disagree. Today the president announced culmination of something thats been going on for a long time. These were individual companies that tried ve various remedies its extraordinary what these companies had to go through to try to protect american jobs and American Workers against unfair practices from other countries you finally see Companies Bring cases in a bipartisan system they go through the system, it goes up to the ustr. The ustr makes a recommendation based on the bipartisan committees recommendation and the president makes a final ruling the president made a ruling that will make the u. S. Competitive and help us grow our economy it just so happens on the washing machine side, both of the companies that had been creating enormous problem for the u. S. Manufacturers of washing machines are going to open up manufacturing facilities in the United States, hiring over 1600 workers. Thats exactly what the president wants to see he wants to see Companies Moving to the United States to build their products in the United States so, ultimately were getting the outcome that we want to get. On the solar panels, he left enormous amount of latitude in that decision that where we actually have a business, which is making the making the panels, not the actual cells, the cells can be imported, were protecting our panel makers because we do make panels here in the United States and we should continue to make panels and hire more workers in the United States. Having canada take the lead on a big global trade deal and the United States really pulling out of the global trades, are you not concerned and concerned for this administration about not giving up this United States the president said this through his asia trip, he said it in europe were very open to free, fair, reciprocal trade if you treat us one way, we will treat you the same way if you have no tariffs, we will have no tariffs. If you have tariffs, we should have a reciprocal tariff its hard to argue against that that we should treat each other equally. Thats our trade policy, the trade premise the the president is there to sell his accomplishments to remind the world that we are open for business, that were a competitive country, that we have made america very competitive and that everyone should understand what he has accomplished in his first year and what were going to continue to accomplish in the next three remaining years. The ceos were having dinner with, they are large European Companies with large presence in the United States. Theres no reason those presence shouldnt be much larger the president wants to hear from those ceos, what do they need to have more of their business in the United States . Hes doing exactly what he should be doing to grow our economy and create jobs. China and the influence that its exerting now and a lot of people observing that its exerting because the u. S. Has pulled back in a lot of these international the u. S. Is pulling back for nothing. The u. S. When the president was in asia, he talked about trade agreements and his willingness to have bilateral trade agreements with many of the countries he visited in asia and were more than willing to have bilateral trade agreements. Let me get behind you id like to get both of you to talk about about the africa meeting it deals with economics, it deals with National Security as well as immigration. In light of all of the controversy over immigration and the alleged racist comments that were made, can you both talk about that and also how youre trying to quell the upset of the African Union and the African Leaders . Ive talked enough. The president will be building on what was a very successful meeting with African Leaders on the side of the u. N. General Assembly Late last year. And it was in that meeting in some remarks that i think could have received broader attention, the president laid out a very clear direction for our relationship with key africa nations in particular. The need is obvious for us to Work Together on issues of security our interest overlapped in International Terrorist organizations and others who are attempts to polarize societies and create these cycles of violence, travel and sectarian violence that is a grave threat to security and then also of prosperity as a result and our interest overlap in encouraging American Investment in africa. And African Investment in the United States. The president and administrator green have laid out a very clear vision for how we want to evolve our economic relationships and our Development Initiatives in africa in particular in the National Security strategy africa is the Perfect Place for us to transition from just delivery of assistance to robust trade and economic relationships that benefit the people of the United States and the people of africa as you know, there have been some tremendously successful programs that shows the power of when the United States works with key African Leaders and communities to take on threats that are healthinvolved but also you see tremendous Security Cooperation and relationships over time. Theres a lot theyll be able to talk about, especially because the president is going into the presidency of the African Union. It will be a discussion about how to advance a mutual agenda of african nations and nations within that continent and the United States. How would you characterize that relationship with britain at the moment given the decision of the president to pull out of his trip to the uk next month . And do you think there will be a fresh arrangement made for a visit to take place in the foreseeable future of course the president is prioritizing his meeting with Prime Minister may because we have a special relationship. Its a special relationship not only in words but its how we Work Together on every issue it is very, very hard to find anyplace where our interests dont overlap almost completely with those of the United Kingdom. We are working together in a very effective manner be at the u. N. , for example, on some of these problems, but then in a bilateral sense with International Organizations but bilaterally. So, the president will talk about those key topics of mutual concern. You can imagine what those are and so we have seen there is no diminishment. Only strength with a great ally. Are you upset out of going . Two more. You, you and back to eamon you mentioned the president once reached bilateral trade agreements, he made clear he doesnt like trilateral agreements can you tell us what bilateral trade agreements are in the works right now . Look, weve got ambassador working on a bunch of different agreements as we speak here hes also involved in nafta renegotiation. Were also having conversations with korea on renegotiating some of the terms in korea. So, hes got a lot on his plate. Any bilateral there are new discussions were working on. Any specifics im not going to. Im going to let the ambassador handle his negotiations in the fashion he wants to handle them. When he thinks its time to make them public, hell make them public last question. It will be a hot bed of globalization tomorrow at davos. Youll get a question about the tariffs you put into place the question is often asked by critics, isnt this just hurting American Consumers who want to buy washing machines orsolar panels, theyll pay a higher price at the store when they go to do that how do you answer that on the washing machine situatio situation, as i said, both of these companies are opening mmpg plants one could be open within the next 30 days or less, which will hire 1,000 new employees there they will be manufacturing washing machines here in the United States. We have a large domestic manufacturer of washing machines when we looked at this and studied this extensively this was a rigorous process that went through committee, then the trade ambassador held hearings, he made recommendations and then extensive meeting with the president. The president understands that and he understands the importance of the economy and the price of consumer goods to consumers. Weve taken that all into account as weve made the decisions. The president cares enormously about growing the economy and keepings the economy on the right track and making sure that our consumers have the best opportunity possible but he also cares very much about the workforce in the United States and making sure that we create a great job environment and we create workforce participation and we create wage growth weve got to get both of those right. Its something were committed to doing thank you very much. Youve been to davos a lot over the course of your career the president , i dont believe, has been there before. So, whats one thing you think hell find there he wouldnt expect a lot of snow 14 feet of snow. Ive never seen 14 feet of snow there either it will be interesting to see. Thank you thank you that was gary cohn and h. R. Mcmaster speaking to the press, taking questions questions about davos and a bunch of other issues there during that White House Press briefing today when asked, by the way, what the president s message in going to davos, hes expected to speak there on friday, would be, gary cohn reiterated it will be America First but not alone. And then mentioned all the snow there, which weve heard welcome to the closing bell, by the way, everybody. In the meantime, markets have closed up here we have three records for the s p, the nasdaq and the russell 2000 today pretty strong gain with the nasdaq of 52 points, about 0. 7 of 1 . Netflix up 10 the dow dipped three points on the bell so it did not join the party. For more joining me now, Michael Santoli and dani hughes and ann meletti from Wells Fargo Asset Management thank you for sitting tight. Leading the way was travelers, Johnson Johnson trailed, similarly posting results this morning. Resmed topped the s p and scanas corp was the loser what do you think . Is it manages green, a quarter percent on the s p 500 one thing i would take away today is the strength in the tech stock 0. 7 gain in the nasdaq. The nasdaq is 50 higher than peak levels in 2000. 7 7500 would be that level i think what that tells people, just because the sound behind this rally is all about tax cuts and cyclical earnings gains, they still go for the big bellwether growth leaders. The fang names. The fang names. I dont think it will be mass rotation into small caps and financials and things like that. Thats just one takeaway right now. I dont think the complexes of the market in the First Quarter kind of a rerun from last year we also have earnings just out, which well get to danny, what are your thoughts . What are you telling investors, especially now that weve been off to the races its been one sparkly, shiny thing after another. The big change has been last year before the tax cuts, we were looking at forward earnings of maybe 12. 3 on the s p 500. But thats been the big change now its about 18. 3 , according to factset i think thats fueling the growth i think everyone is looking to say, if im sitting in cash, i must be stupid i would have to say, actually, this is not time to be all in. This is time to be more nimble i say that not to jump out of the market right now, but were seeing more heating up that doesnt mean there couldnt be much more to go earnings are in some cases outweighing what we thought they would do but i think after this quarter well see things settle in a little bit. You guys both seem to agree on that. United continentals earnings are one much the reports that just came out. Lets go to phil lebeau with those numbers. United beat the street coming in at 1. 40 versus 1. 34 two metrics that might be pushing the stock higher after hours, one being passenger revenue per available seat mile. We talk about this all the time. This is the main metric to look at how theyre growing their revenue, up 0. 2 twice in the Fourth Quarter united changed its guidance improved its guidance but was still expecting a decline of zero to down 1 . Slightly better than expected. Cost per available seat mile, lower than expected, coming in up 1. 5 . United was forecasting the increase of 2. 5 to 3. 5 dont forget in ten minutes, united Ceo Oscar Munoz with an investor and analyst call. This is where we get guidance for 2018 the big focus everyone will be looking at, how much capacity is united forecasting tomorrow well talk with oscar munoz exclusively on squawk on the street. Well see what united has in store for 2018 back to you. Shares are up 1. 5 after market phil, thank you. Youre an owner of united. What do you think . I think Capacity Growth is the biggest key issue for united they have to remain disciplined to the rest of the market does, too. Were seeing very robust travel demand and that is definitely helping united and all the other airlines thats great we also are watching for cost inflation outside of fuel, so thats another key metric to watch for. Looks like that probably was pretty good within the quarter as well. And we want to hear more about the guidance in the margin gap between them and delta its big its over 400 bases points they have a lot of room to move. We want to hear and see more about what they can do to close that gap shareholders have been waiting a long time for this so we want to see some movement there. Thats the latest on united lets flip over to texas instrument their earnings out, too. Those shares moving the other way. Josh has the results josh lipton. Josh Texas Instruments reporting eps of 1. 09, just in line with what the street was looking for. Revenue basically in line. 3. 75 billion. Analysts were at 3. 74 billion. Q1 guidance, eps 101 to 117. Analysts looking for about 1. 06. On revenue, 3. 49 billion to 3. 79 billion. The street was at 3. 3. 63 billi. The tax rate in 2018 will be 28 but due to tax reform they say that will drop to about 18 starting in 2019 this is a name that heading into this report enjoyed a big run. It was up about 14 year to date of about 60 in the past 12 months also some big changes in the c suite for Texas Instruments. Brian crutcher taking over for Rich Templeton as ceo. Its basically retracing the last week of gains. It is the stock was not priced for guidance that somehow suggested that the lower end, if it were met, would miss earnings and revenue. Thats really what it is and josh mentioned 60 , 50 in last six months. Its been on a tremendous roll and guidance was not enthusiastic enough, i think, to stomach more than a reflex. Texas instruments down down a little more than 5 there. Dani, what do you think, we have another Semiconductor Chip name. This follows the strong results we had from some competitors last week that just propelled this space to new highs. Theres been a lot of m a happening in the space, a lot of acquisitions happening, Texas Instruments and everybody else in the space has been trying to gobble up everybody in order to really ramp themselves up. What i liked was they have 14 year over year Free Cash Flow. That is very interesting to me i also like to see that in 19 their tax rate operating tax rate is going from 18 to 31 . That will help the company on a go forward basis when we come down the other side of the mountain, when everyone is divesting, it will be another story. Lets flip over to Courtney Reagan for a quick market flash. We have a couple buybacks and dividends declared after the bell sirius xm is adding 2 billion, declaring a small dividend of one cent per share then valero, upping their dividend from 70 Cents Per Share to 80 Cents Per Share and adding incremental 2 million to that prepurchase program. Shares are up a little bit and sirius shares are up more than 1 on this news. Back over to you. That is right. And i thought sirius might be up a little more than that. Did you have thoughts on Texas Instruments, too its a really well managed company. Theres some Management Change there, but even the new ceo has been with the company avery long time. Theyll benefit from a lot of this tax change. The company was up a lot in anticipation of good numbers so part of it is on us for anticipating too much. I think well continue to see good results in 18. 50 of the revenues are from auto and industrials as we see more and more smart components go into the automobile and onto the floors onto the floors on manufacturing floors, im sorry. Well see semiconductors go into there and their Revenue Growth continue we like the fundamentals of t. I. I think its a name we can stick to. Well let you go. Meantime, travelers insurance, a big winner on the dow after earnings this morning. Shares closed higher by nearly 5 amazing the dow still finished lower. Morgan has more. Thats right. Travelers hitting a new record high today it was the biggest positive influence on the dow for the day after the property and casualty insurer trounced earnings by 77 cents. Net premiums written better than expected, which grew 6 as rates increased across its different segments and retention hovered near historically high levels. For travelers, 499 million in pretax cat loss net over insurance, it was high but it was still less than the companys earlier guidance travelers taking a charge tied to tax reform. Travelers was the big standout in the sector today. Other insurers also moving on other news today allstate and progressive tumbling, each down 2 and 3 after californias insurance regulator said the state would be looking to get insurers to pass on savings to policyholders, all of this after aig announced a 1. 56 billion, the biggest buy by aig since 2001 vr stock is now up an eyepopping 44 on the week and its only tuesday. Back to you. Thank you aig clearly back in expansionary mode capital one out with its Earnings Report today as well. Shares of the Financial Services company are down about 2. 5 or so after a miss on the top line the revenue numbers are 7. 01 billion versus estimates of 7. 1 billion. A slight miss there. On eps its an adjusted eps of 1. 62. Its unclear how that compares to the estimates of 1. 88, if thats an apples to apples comparison also noninterest expenses were higher than estimates expected the noninterest expenses came in at 3. 8 billion versus estimates of 3. 69 billion the provision for credit losses were 1. 9 it is billion versus 1. 99 billion a couple key metrics investors were looking at. Home loans decreased 6 . The company saying primarily driven by runoff of acquired portfolios and auto loans increased 2 well expect to hear more color on those sections on the call coming up at 5 00 p. M. Eastern well be on it. Thank you i have to say, these are some of my Favorite Companies to watch right now just because there is a lot its not clear whats happening with the Credit Sector and the consumer what do you make of this quarter . It looks like its a little noisy. The quarter had a good run for the sector so i dont put a lot of credence that this pullback after hours is a trend change. I agree with you, the chargeoff rates have definitely bottomed and youre seeing some raggedness in especially lower end credit card losses across the industry i think thats where the suspense is for this group i think the market is the pendulum swings back and forth we have a couple more years in the credit cycle and then panic mode. Keep an eye on capital one as this moves along after hours shares are down about 2. 3 . The star of the activist Investor Community may not be shining as brightly as it once did. We have been looking at some of the returns. 2017 really wasnt a good year for the Hedge Fund Stars we know and love. In fact, many brandnew activists posted returns last year that not just lagged the s p 500, but also the broader Hedge Fund Industry and their smaller activism peers names like nelson peltz whose Management Fund was up 3. 7 and David Einhorns Greenlight Capital was up 6 . Barry rosenstein was up about 5. 6 last year and then, of course, theres bill ackman, who after three years of losses recently fired ten people from within his firm. Thats according to a person familiar with the matter since 2015, pershings assets have been cut in half. Im told they had redemptions at the end of the year but that wasnt necessarily the catalyst for the restructuring. Its all part of a longer soulsearching within the firm to turn around performance but not all major activists underperformed in 2017 third point by dan loeb, as he tells it in his Fourth Quarter letter, the key to the firms success last year was hiring sector specialists who picked good stocks. Its all about the stock pickers. Also worth noting that unlike the others, third point did not wage any proxy fights last year. Thats an interesting point still working on nestle right now, i thought i saw. Working on nestle but hasnt risen to that level of proxy fight, trying to solicit votes from other shareholders in the company. What do you think about the results . I think this is the market is not as target rich for activists, especially those that go after very Big Companies as it was three, four, five years ago when valuations were lower, you had an ability to say, theres a quick financial fix to some of these issues that can get the stock up i just think its been a tougher road in that sense. Thats a big part of this activists have gotten feedback from lps, the people that they also invest in these companies. And the traditional longonly investors dont like those kind of pushing for buyback and the engineering and financial fixes theyre known for. Theyre pushing for them to do longer, operational fixes and those take time. In 2017 we didnt see the payoff. In some cases stock, a board, get through that process its not quick. Turning the titanic. Thank you. Heres whats happening at this hour. President trump taking his first major action on trade. Signing orders that slapped tariffs on imported washing machines and solar panels. The president telling reporters its all part of protecting American Companies and workers my administration is committed to defending American Companies and theyve been very badly hurt from harmful import surges that threaten the livelihood of their workers, of jobs actually all over this country. President trump will host the first state visit of his presidency in late april when french president Emmanuel Macron visits the white house it will include the first state dinner hosted by the president and his wife, melania. A proposal is being considered in harrisburg to offer Free College Tuition or grants to students based on their Families Income pennsylvania ranks 47th out of the 50 states when it comes to its investment in higher education. Thats the news update this hour kelly, back downtown to you. Sue, thank you. Sue herera back at headquarters. Facebook admitting its not always been good for democracy a deep dive into t lheatest on the social medias apology tour next its absolute confidence in 30,000 precision parts. Or it isnt. Its inspected by mercedesbenz factorytrained technicians. Or it isnt. Its backed by an unlimited mileage warranty, or it isnt. For those who never settle, its either mercedesbenz certified preowned, or it isnt. The mercedesbenz certified preowned sales event. Now through february 28th. Only at your authorized mercedesbenz dealer. [ 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. Strong close for the nasdaq. Lets get to the big stories of the day in our rapid recap we are live from the World Economic forum thats taking place in davos, switzerland. Were going to be, i think, inundated with cash. I think thats going to produce a lot of stimulation and i think, perhaps, a market blowoff in other words, were in a situation where if youre holding cash, youll feel pretty stupid. Its a bigscale company, an important brand all across the world and were going to step up and be a Public Company our employees can be proud of. President trump is slapping tariffs on solar panels and large imported washing machines. Our companies will not be taken advantage of anymore and our workers are going to have lots of really great jobs with products that are going to be made in the good old usa. Tariffs are taxes and a cost. So, consumers get hurt by this, always the market cap of netflix cost 100 billion in early trade for the First Time Ever. This as it blew past subsubscriber growth expectations. When we grow, the world grows. When the world grows, we grow. Were part of a world economy. And the president believes that. Markets have closed up here we have three records for the s p, the nasdaq and russell 2000 today. And jpmorgan announced it plans to open up to 400 new branches, grow its home Lending Services for consumersle and increase wages for some employees. The news follows yesterdays bank of america announcement its eliminating free checking for lower income consumers which bank is a better buy for investors . Joining us now fast money traders Karen Finerman and dan nathan welcome. Karen, you like them both. Dan, you dont like either one karen, do you think bank of america, should they have handled this announcement better it seems like all these companies now jpmorgan coming out saying, were doing all this great stuff and now b of a, its going to be 12 bucks a month for your checking account. Yeah. I felt like it was a little bit of a just a political misstep to do that you can see why it would be very unpopular in terms of what it really means for the business. I dont think its that significant. Maybe theyre doing something to make up for it in some way yet, i dont think it changes the bank of america story, for jpmorgan or bank of america. Despite the runup in the market, they still represent really good value. Obviously, the tax deal is great for banks. Big taxpayers, particularly bank of america its good for them and the discount they trade at relative to the market is very significant. So, thats i think this is just noise politically unfortunate, but noise. Dan respond to that itd just wonder if theyre just trades on the bond yield and not a lot more from this point on. Its also tax, Economic Growth, the potential for further deregulation in the sector, i get the bull case by all means. You look at these two stocks, theyve gone parabolic theyre both up 40 since it looked like in the fall that tax overhaul was going to be increasingly likely. So, to me, if the question is, do you buy them here, i say no, for all intents and purposes but if you want to go on just valuation, look at the other money, id look at citibank, which is cheaper to both of these and it doesnt have the parabolic spike that both of them have over the last month or two. To me, i would consider citibank if youd rather. Citibank, too good place to be. I like you too, dan. Dan, anything else in the banks . Would you do the regionals is it just the regionals have a nice ramp in december this is a good space capital return is also something investors start to increasingly think is part of the bull case for these things my only thing is look at the what weve gotten off to in january for the broad market here i think some of these things could just use a healthy pullback, put a little fear back into investors well see dan nathan, karen, thank you both appreciate you joining us early. Be sure to tune into fast mone money it starts at 5 00 p. M. Eastern, 18 minutes time coming up. Shares of facebook climbing more than 2 despite the social media giant doing serious soul searching about foreign interference during the 2017 election lets start with the elephant in the room. During the u. S. 2016 election, organizations based in russia turned social media into an information weapon to undermine american democracy this was a new kind of threat that was hard to predict but we should have the blog post goes on to say that facebook does not know if social medias positive affects on politics outweigh the negative here to discuss this apology tour, jeff sonnenfeld. This is kind of extraordinary. What is the point of all this if theyre trying not to catch the attention of regulators or say, were going to get out ahead of it what do you make of all this since Early September they recognized something which they apparently knew for months and sadly have suppressed from public knowledge, but they legitimately did not seem to know a year ago which is their inadvertent complicity in the russian bots and interference with the election and all these other nasty things that have been happening in cyberspace but they had all the instincts we usually have when people mess up in this space by going into initial denial and attacking the critics and not working with authorities and saying its not true now theyre trying to preemptively look like were going to clean up our own house and we dont need any regulatory intervention, thank you. Jeff, its interesting, as of today Facebook Stock is back at an alltime high the market has never been terribly concerned, at they have been concerned when facebook says, look, were going to tweak our algorithms, show less news to people. Were basically going to close the loop of what peoples feeds have is it really a business consequence here or something really about facebook feeding its own sense that it is a source of good in the world . Thats really a great question mike, when you think of a lot of the disasters of misconduct or poor performance where management has to apologize, thinking of the missteps the equifax were very costly to it were still seeing the suffering of chipotle down by a third, takata that put them into bankruptcy, Carnival Cruise lines, coke in the past, valdez. These are bad management, illinformed and it had major consequences, loss of public trust in purchasing the stock and Everything Else. In this case, facebook is performing so well, you say, why do they need to worried . Well, theyre worried about any kind of intervention right now what theyve done is they said, well hire 1,000 reviewers to monitor this stuff. Well try to print out who is responsible for paying for these pages. Theyre thinking that will do enough already people are starting to wonder if there will be enough intervention to start to question their Business Model and will that be an issue . The funny thing is you can use their own words against them its not a right or leftwinger saying, theyre undermining the democracy. Its the company themselves. Putting that aside, do you think well look back on this we just showed your corporate winners and losers in terms of apologies. Will we look back at facebook as being a winner or does it depend on if they can somehow convince people they changed their ways there needs to be more personal accountability. Mark zuckerberg is coming back from paternity leave he needs to show more personal involvement. When they went down to testify in congress, it was lawyers. The people who do well is when ceos get out in front. When Union Carbide went to india to apologize four days after that horrible disaster where thousands died overnight, the ceo went there and said, hey, i know whos responsible its me. Im sorry. They put him in jail right away. He came back and refused extradition but they still tried to imprison him. But, youve got to know, do your homework in advance. Right now Mark Zuckerberg has to be engaged more. Be out there and tell us explicitly, what are they going to do. What is the thirdparty validation theyve had law firms and experts to verify this is being fixed. It doesnt help this is such a New Territory for society to deal with. But figure it out its trust its trust, the most valuable thing they have. They destroy that trust, they destroy the value. I hear ya, i trust ya thanks, jeff, for your time. Jeffrey sonnenfeld from the yale school of management. An earnings alerted. Courtney reagan. The l. E. D. Lighting maker reporting Second Quarter earnings the street was looking for a penny, but the revenue stronger than expected at 368 million compared to estimates of 350 million. The Third Quarter guidance in line the stock has been up and down it was first up and now its down you can see down by about 3 the company is undergoing a strategic assessment the ceo says its going well but doesnt provide any more updates. So, perhaps thats some of the reason for the confusion the call starts at 5 00. Back over to you. Just about 12, 13 minutes from now thank you. We also have a news alert on wells fargo. Whats happening there wells fargo board of directors announced a purchase of additional 350 million shares the company has 4. 9 billion shares outstanding, which means that the stock repurchase comprises about 7 of the total shares outstanding shares are flat about flat on the news back to you, kelly. Thank you theyre doing a 7 Share Buyback and the shares are unchanged yeah. Look, i think buyback has been baked in here. Once they got approval to do more capital return from the fed, plus the tax cuts came, i think the stocks have been priced or something. By the way, this is also a sequence youre going to see first announce raises for employees. Which they did. And all kinds of other charitable contributions and soften up the public for look, theres enough to go around to all the different constituencies, but thats basically what what youre saying is if they didnt announce a buyback of this size and scale, the shares could have sold off . Well see how they do tomorrow i think that ramped up repurchase activity is pretty much the base case for a lot of big banks. Mcdonalds franchisees have High Expectations for 2018 what could be a key driver. A blackrock strategist reveals where you can ndfi growth for stocks at record highs. Welcome back its time now for our takeaway today. We begin with apple, which is finally launching its home pod as it gets slapped with another analyst. Jp morgan concerned that iphone x sales are week shares hold on to their gains. Any weakness of sales seems it more critical that apple break into the home speaker market in a big way. How big is the question i will predict no matter how many they sell, they probably wont say at the outset there is going to be talk of well its not making a dent, same thing with the watch same thing with Everything Else besides the phone that comes out. Its interesting where they are going. Obviously higher enprice point. Does it have to be a better seller than the watch . I think to be well, i dont know i think eventually it can build toward the watch yeah, i mean i think long term yeah it would have to be more significant because just you want that to be the node in the home and i think it is a apple like thing to go after the higher end design and agency athletic experience as opposed to just a gateway for selling your stuff. Elon musk is set to make 78 million or running tesla, if the cap sits 650 billion michael, that would make it not only one of the very biggest conditions companies in the world he will then get that massive pay out. If it goes to zero, its zero. He is not going to have a salary to fall back on. No salary i dont know if its meant to make sure it keeps his interest, this job, to keep him driving toward what matters for shareholders, revenues and cash flow. I think its important to know he owns 20 of the company if he misses the target and he has 99 he has 20 of that wealth. Thats included in the figure the sums are so aastronomically large. He cant walk away from tesla. But there is a provision where he could become executive chairman and back off a little bit from the day to day. It is a fascinating structure. But can tesla be a six we just had alphabet passed the 800 billion microsoft passed the 700 million billion mark he willier this week. Tesla is kind of next in line there . No. It only happens if you radially scale up the actual sales and the revenues it is a distant one. It is certainly a stretch goal, at minimum. And a strong incentive. A lot of these founders dont really take any stock. Mark duckerberg is not paying himself stock at facebook. Fair enough mcdonalds was doing well before it reintroduced the dollar menu this mont. Franchise franchisees said they expect the dollar menu will drive checks and Profit Margins lower should mcdonalds scrap it i doubt it. I feel like they need to keep the traffic. I think there is a way to tweak it you dont have to call it the dollar menu. You do three for two. Even though it is the one, two, three dollar menu. Split the math. The street is looking for approximate to 4 comps in the Fourth Quarter it is a deceleration i think the street is looking for a deceleration because the year was so good so they need something to keep peoples interest. And they have to keep the franchisees happy. Continentals Earnings Call is on the way. We will check the stock and look at tomorrows big Earnings Releases after this. Your brain is an amazing thing. But as you get older, 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. I thyou never got the brakes looked at . L. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Welcome back to closing bell. Im ayman jabbers at the white house where gary cohn just finished briefing reportsers a few minutes ago. I asked gary cohn about the criticism of the tariffs that the white house put in place yesterday on washing machines and solar panels, that it would drive up costs for consumers heres how he answered the questions. On the washing machine situation, as i said, both of these companies are opening manufacturing plants one of them could be open within the next 30 days or less which will hire 1,000 new employees there. The president cares enormously about growing the economy and keeping the economy on the right track and making sure that our consumers have the best opportunity possible but he also cares very much about the work force in the United States and making sure that we create a great job environment and we create work force participation, and we create wage growth we have got to get both of those right. So kelly, cohn said there they have taken the impact to consumers into consideration and simply decided to do it anyway ultimately, they say, the idea is to create jobs and thats more important than the impact on consumers aman, thank you a busy day at the white house. News on bitcoin. What is happening there . Stripe the you corn Payments Company is giving up on bitcoin as a payments method saying it has become a victim of its own popularity and that transaction confirmation times have risen substantially. That in turn has led to an increase in the failure rate of transactions denominated in fiat current seeing the company says it is bullish on its prospect. Remember, too, stripe was the first major Payments Company to support bitcoin payments back in 2014 kelly. Thank you deirdre wow, back in 2014, and they are throwing in the towel. Amazing. Yeah. Obviously an early adopter inthis points up what the market is trying to struggle with and it sort of ratifies the deal that it really isnt what it first was going to be conceived of principally which was an alternative to cash. Or any kind of Payment Method we have seen this, too, digital gold. Digital gold, or somehow a claim on the buildout of the blockchain and somehow this sort of real estate on this new i mean you hear the high minded cases about that as well but i dont know how you get from here to there. The price of bitcoin was below 10,000 either early today or yesterday somewhere around 11,000. Almost retraced that whole post thanksgiving ramp from 8,000. I remember that ramp. That does it for thoib michael thank you. Fast money begins right now. Fast money starts right now live from the Nasdaq Market site overlooking new york citys times square im Melissa Square item, karen, and dan tonight on fast, United Airlines flying high. The stock taking off after earnings the cubic inch Conference Call is happening right now phil lebeau is manning the red phone. He will give the us instant reaction from the call later this hour. Later on, crypto in limbo. Bitcoin sitting in purgatory after its month of hell. If you dont know whats going on, brian kelly is here to break it down and give you three golden rules for cpt
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