Transcripts For CNBC Closing Bell 20161111

Now and some of the best performing stocks to this point got clobbered. We will look at whether this rotation can continue. Take a look at grub hub stock. The ceo says he rejectathize politics of donald trump and anyone who doesnt agree should resign. All part of the craziness this week. And president elect trump promised to repeal and replace obama care. We will talk to ron williams. He was around when they were putting obama care together and was critical of what the final product would look like. He has ideas of what the new Health Care System will look like. Disneys ceo saying the outlook for espn is positive. Those comments helped turn around the stock up 3 . Jeffrey gundlach was on Halftime Report earlier today. He talked about his Investment Strategy under a Trump Administration. The Financial Engineering stocks and momentum stocks i would stay away from them in a big way. I think if you are going to buy the stock market you want to look at stuff that is real. I do think industrials, materials and financials are the sectors, things that are real are what you want to be invested in. Im feeling very strange because i have been negative on financials for ten years. I have been negatives on tips in the bond market for ten years. As of two months ago i turned very positive on both of them. Our Michael Santoli has been following this sector rotation. What have you been seeing . I think gundlach incapsulated it. There has been a violent shift from big stocks to small stocks, overowned stocks to under owned stocks and safer to cyclical. From clean virtual businesses to dirty messy ones. You see here small caps, banks, industrials, materials have been the winners so far. The losers were mega cap growth. That is the largest stocks of the nasdaq. Big tech, utility staples, you have yields going up. All of this stuff seems very neat and tidy. If you look at the biggest stocks in the nasdaq 100 all happen to be tech stocks that is the threeday return right there. Those are overowned stocks, the ones that really can grow in any economy. They dont need a strong economic sector to grow and have high pes. Here are stocks in highbeta etf. You see thats where the money is. The question from here is the market is really priced in a lot of policy assumptions in terms of infrastructure spending, debt levels, deregulation and the rest. It is really hard to see exactly if it goes in a Straight Line from here to there with all things that can intervene. I got to say, i have to admit i dont get the climb in the big tech. Were they using this to harvest to get cash to buy the other snz thats the future, those companies. I think in large part it is a source of funds as they used to say on wall street. But also jim cramer this morning said nothing that has happened in the last two days makes you raise earnings estimates for facebook. Nothing gets fundamental story to change very much at all. If anything it is slightly negative. The other cyclical stocks may be cheaper you dont discount those cash flows at the same rate. I do think that is at least the reverse rationale for why this is going on. Jeff gundlach said he thought the move in bond yields was about 80 complete. Do you think he would say the same for the real stocks, industrials and materials . It sounded more like he was saying after ten years of not liking them this was the beginning of liking them. He was saying this rise of Interest Rates, maybe by year end they are not going to go up at all. It brings the yield about flat. So i dont know if you want to say the industrial rally is 80 done. It has been running very hot and i think it needs a breather even if you get policy confirmations. Buy the rumor, sell the fact. Thanks, mike. Good stuff. See you next hour. Michael santoli. Lets get to our Closing Bell Exchange as we wrap things up for the week. Peter costa from empire standing by and we have Rick Santelli checking in from chicago. Its happened twice this year. The market got brexit wrong and got this election wrong. The way the market has responded has been a 180 here. This is beyond brexit. This is the most i have never seen this in 36 years of being down on wall street where everyone got it wrong and the media got it wrong with donald trump. The investors got it wrong with the way the market was going to react if trump won. It just seems like i dont really know if there is an explanation. I can try to figure it out. I think a lot of people believed a lot of the hype about the market was going to sell off but in reality if people are going to invest they are going to invest in the next administration. What is his belief . He is looking at rebuilding the infrastructure of this country. He is looking to build jobs with infrastructure improvements. The tech stocks got destroyed. Part of the reason is i think because money came off the table to get into the industrials. The other reason is if you look at the future these Companies Grow and they are profitable. They dont add jobs to the economy. The Silicon Valley doesnt add jobs. They create new companies and new ideas but they are not creating anything substantial other than facebook you can spend five hours on it. To me that doesnt add jobs to the economy. I dont know that google complex is huge. As far as construction, yeah. They can keep building until they cant build anymore. To me the only thing that was a surprise was amazon because amazons Business Model is set to take advantage of a rising economy. And being that it got crushed the last three days. I was very surprised about that. And joe, what about you . What wr would you invest now that we have had extraordinary moves high senator. We have had a pretty meaningful move higher already in the markets partially because no one really saw this coming. I dont think it is so much that trump is in office, i think it is having the republican sweep. You have to take some of the things that are likely to happen and some of the possibilities and really separate those two in different camps. There is a lot of worry and concern over immigration, over trade policy. I kind of put that in the possibility of this happening. The more likely part is meaningful tax reform on the individual side, infrastructure spending. I think all of these things are going to be pro growth. Those are weak quotes even though we have seen moves like that. How about the continued strength of dollar index close to 100 right now . Three weeks ago i did a santelli exchange. I picked 2. 27 unchanged on year. For a setup that developed long before the surprise Election Results came out. I think that just fuels it. I still believe that an unchanged yield closes there. It doesnt mean it is going to stop although i do agree with mr. Gundlach maybe a good chunk moves in. On first impulse i thought Allen Greenspan couldnt be right. You never know. That wouldnt be my first choice. I think lets take it one move at a time. I think it is safe to say a couple of things. We are in a post political season where it is just buy anything you can pretty much. I think for good reason joe you nailed it. Its for all the things you said. You have all three branches of government. If you cant get it now there are no more excuses and all the other issues that are giving people odds that they shouldnt focus on there are issues with trade and immigration. I think the low hanging fruit gets picked first. Give the market a question before you tackle some of the more dicy issues with regard to how they effect markets. I guess last but not least 9863 is unchanged for the year. We are now above that. Not only do i see 100, i think it is the third time in testing 100. I dont believe in triple tops. Next time you see 100 you will see 101, 102, 103. That would actually be maybe a blow, rick, to the stock market at least in the short term. I know that you are right. That is the way we have been inclined to think. Currency is like stock in your country. I know that gets entwined with globalization. Globalization isnt nearly as in vogue as it was. Give purchasing power to americans is not a bad thing. The world is no longer flat. That is for sure. Its not . There are walls everywhere and it started in europe. Guys, thank you so much for being here. We have about 50 minutes to go. The dow after a volatile week just kind of holding on to what happened today. Still a gain of 5 this week for the dow. Huge. At this point we are just sitting tight with the dow down four points. Nasdaq is up 12 and the bond markets are closed. Portland, Oregon Police are calling last nights antiTrump Administration a riot. We have details on various ceo comments that became political controversies. Ron williams gives us his take on what Health Care Costs could look like under president elect donald trump. My name is erick varela. Im a substation electrician with pg e. When i was 17 years old, signed up for the United States army and i started serving and i now get to serve the customers of pg e. I get to help other families. And thats what its all about. When i came back from iraq, couldnt find work. Then i found pg es power pathway program. Here at pg e im Successful Living in eureka with our two beautiful kids with a brand new career all because of the power pathway program. If you are a veteran, go to pge. Com powerpathway and hopefully your life will change like mine did. Together, were building a better california. We tend to overanalyze the market. You attribute it to the dow up just a tiny fraction but capping off a big week gain of over 5 . The financials leading the way. The utilities down 4 . Wasnt it Benjamin Graham the guy talking about mr. Market. It comes to you one day with a deal, comes to you the next day with a high price. He is a salesman like any other. Donald trumps victory triggering sharp reaction in corporate america. Shares falling after the Online Food Delivery companys co founder and ceo send a controversial email. In the email the ceo says he rejects and anyone who disagreed should, quote, resign because you have no place here. The note caused an uproar after some believed he was telling some Trump Supporters to leave the company. He tried to clarify saying i did not ask anyone to resign if they voted for trumpfelt the message of the emails we do not tallerate discriminatory activity in the work place. New balance which prides itself on its made in the usa sneakers and opposed president obamas Trans Pacific partnership trade deal in a tweet on the day after the election new balance said the Obama Administration turned a deaf ear to us and frankly with president elect trump we feel things are going to move in the right direction while some people viewed this as an endorsement of trump and shared videos of themselves burning their new balance shoes. New balance saying the company publically supported trade positions of clinton, sanders and trump prior that focussed on job creation and it continues to support them today. And protesters have been taking to the streets in several cities every night since the election. Last night in portland, oregon, an antitrump march turned 234509 what Police Declared a riot. They say they damaged cars and local businesses. At least two dozen people were arrested. You could not expect a campaign that had such vitriol to come to a screeching halt. It continues and will continue for a little while. High dislike of either candidate at a personal level. So i would say settle down but i know plenty people dont want to hear that. On we go. New details on Donald Trumps Transition Team. Eamon javers has the latest for us. You know these Transition Teams are sort of selfdevouring creatures. You have the transition and as soon as that is over all of those people are layered out of their jobs and new folks are brought in on top of them. That is what is happening today. Take a look at the list now just within the past hour or so by the trumpelect, president elect team of some of the new executive Committee Vice chairs who will be running the trump transition from here on out. Dr. Ben carson, Chris Christie who was running the transition before demoted to a vice chair of an executive committee. Newt gingrich, former speaker of the house on that list rudy giuliani, senator Jeff Sessions of alabama, all of those people were in the campaign trail in a big way for donald trump seen as closest loyalists. I think it is fair to see a lot of these people as people who might be picked for key cabinet positions and high ranking white house positions. Well see how the moving parts shake out here. Harry reid not happy at all with trumps election. He had a statement today. White nationalists, Vladimir Putin and iceerous celebrating Donald Trumps victory while innocent americans are racked with fear watching white nationalists celebrate while innocent americans cry tears of fear does not feel like america. Tough stuff there from harry reid. Democrats, i can tell you are reeling in this town. They will face the prospect of being entirely out of power in every way in january. They are trying to figure out who their new leadership will be, who will be in charge of key democratic offices on capitol hill. All of that to be determined and real soul searching for democrats after having been beaten as bad as they were. Thank you. The president elect putting health care at the top of his agenda for when he takes office. Here is what he said yesterday after meeting with House Speaker paul ryan. Whether it is health care or immigration, so many Different Things well be working on them and putting things up pretty quickly. Joining us now with his reaction to the potential changes to obama care we welcome ron williams who joins us on the phone. I assume you can hear us. Thank you for joining us today, by the way. Thank you. Its a pleasure to be able to join you. These head lines are just now crossing the wires apparently donald trump is speaking to the wall street journal and says about obama care that he is open to keeping certain parts. For example, he is willing to allow parents to continue to extend coverage to their children to the age of 27 and willing to keep protection for preexisting conditions. What are you expecting here . Do you expect a feeling that maybe obama care would go away completely . Are you expecting an alteration . I would say i am glad to hear that he is maintaining to keep the children and the ability to be getting access to coverage. I believe that what has to be built is an orderly migration plan that transitions us from where we have been to where he would like to see us go. I think that is going to take work and i think we will have to hear from consumers and from doctors regarding their input. I think it will not be a sudden ending of the program. It will be an orderly migration to an evolution of it. Some of the hospitals have gotten creamed in the market the last couple of days on concerns about what this would do for profitability. Do you think that is justified . I dont think so at this point. I think we will see changes and we need to back up and focus on the big picture which is most of the aca was about access, bringing more people into the system. The work that continues to need to be done is creating more value in the Health Care System. That work continued under president obama and on to President Trump. In order for it to work we were talking about this, you had to have more participation which you didnt get. You havent had the well patients participating as much as hoped for to let premiums come down. Your company, your successor chose to opt out of certain exchanges because they werent profitable. So what kind of incentives can you provide to get more people participating and what plan are you going to have here . I think we have to recognize that there are two separate concepts at work. One is insurance which is a pooling of people who need care today, tomorrow and in the future. And then there is the need that we have for citizens who dont purchase insurance for whatever reason to get access to health care services. High risk pools are one of the mechanisms that many states have used to take care of the sudden problem. Aca blended the two issues together and really only made individuals responsible for funding the high risk pools. The exchanges will have to change in order to be successful and to remain viable. Who would you like to see as hhs secretary in a Trump Administration . Its far too early for me to know who i would like to see but i think i would like someone who understands the u. S. Health care system well and has an eye to the future that can focus on how we make certain that as mr. Trump is saying we take care of everyone. Are you available . No. At the heart of all of this is achieving Healthy Health care. Is that achievable unless you have government incentives to make it more profitable for Insurance Companies and affordable for people. Insurance kaechs are more than glad to cover everyone. If we take the exchanges. If we had one open Enrollment Period that was a fixed period and people who went into that stayed in it for the full year i think the health plans could i think there are lots of ideas that will circulate. We will see ideas on increasing Consumer Directed Health plans, Health Savings accounts. We will see new proposals where individuals who dont have employersponsored insurance receive a tax credit. It may not be as rich as everyone likes but it would cover basic health care factors before we went to the level of bftds we have now. Good to talk to you. Thank you for joining us today. Thank you for having me. I appreciate the opportunity. Ron williams, former ceo of aetna. Here is a story. Energy transfer partners spiking on heavy volume. Reuters quoting a Government Spokesperson as a decision on whether it will be allowed to be completed will come. This would give the company the green light in north dakota to finish one of the last sections of the controversial pipeline which has received a lot of back lash. So we will have to see what happens. Shares are now up better than 5. 5 . By the way, we have a news alert on kenneth cole. Kenneth cole a brand many are familiar with quoting ceo that we need to focus on energies and resources to better serve the consumer on returns. That said over the next six months we will be closing our u. S. Outlet division. If you look at the website there are currently around 70 stores and the majority are outlets. The brand is sold primarily by wholesaleers and department stores. Kenneth coal will be close lg Outlet Stores which are the majority here in the u. S. They are most familiar with. I wonder how can they take that kind of hit . Is it total repositioning of the company . That is what they said. This is part of their brand positioning. They want to make sure that when things are sold they are sold at the highest level of brand equity. We talked about this a little bit with brands like coach and michael kors. They are not loving the discounting that is going on and they think it has hurt their brand equity. While many products that are in Outlet Stores are made specifically for the outlets there is some worry that it potentially dents the brand equity of the products sold at full price. And quite progressive. We wont lump it in with the trump swing this week. We are heading to the last half hour of the week here. The dow up just nine points but capping off the best week in five years with a gain of more than 5 overall. What disney ceo said to turn the stock around. Remember after earnings the shares were down. The company had the earnings miss. We will discuss what he said and whether now is the good time to add shares. Is the post election rebound in the financials starting to peter out . We are going to talk about prospects in the sector in the new world order of deregulation coming up. Welcome back. Shares of alibaba down. It is a festival in china but failing to lift alibaba shares out of the red this week. Alibaba said sales did jump 32 from last year. Shares of disney are trading higher. We mentioned that earlier. Recovering from the initial decline of last night after reporting that miss on the top and bottom line after the bell yesterday. Espn subcriber losses continue to take a tol although ceo does remain optimistic and tried to reassure investors. Our outlook is very positive. We know we have the comparability factor in 17 due to nba. You are looking at a category Live Television sports that is generally very healthy. It adopts very well to mobile platforms and that is where we are moving espn. We feel really good about espn. We are dealing with near term issues on the subside. Eyes wide open on that. Not trying to hide anything. But we think long term prospects are just fine. Just fine. Is that enough for investors to bet on disney stock . David miller joins us. It was a real surprise to investors that he was still so bullish in the face of the difficulty it is having on the financials. Nice to see you again. So really the story of the quarter was simply that there was an extra week in fiscal q 4 last year. So by definition you had one less week in this years. Most thought it was a 7 cents or 8 cents hit. Looks like a 13 cents hit. Espn was 3 cents of that. That is a lot looking at a company earning between 1. 12 to 1. 17 per share. His thoughts on espn, he started over a year ago when he started mentioning subscriber issues. His point about making it more available on multiple platforms reminds me of facebook. Now they are one of the leaders. Espn has to evolve to continue to grow here. Dont you think they will . There is a point i want to make about that. If you go back five years ago to the fall of 11, that is when core cutting began and kind of the decline in subscribers began. Where was disney trading . Trading at 33. So the stock has tripled against what i would describe as a manageable decline. The market has done well over the last five years. Disney has outperformed against this decline and cable subscribers in general and just because you have a manageable decline doesnt mean you cant have a case of rising stock prices and that is what you are seeing with the stock outperforming last year but up 3 today. Good stuff. Good to see you. My pleasure. Thanks for having me. And a news alert on the Trans Pacific partnership. Eamon javers, what now . Dow jones headlines. Dow jones reporting that the Trans Pacific partnership wont be passed this year according to u. S. Officials reporting that the Obama Administration is acknowledging that the Republicanled Congress wont hold a tpp vote. This is bowing to the inevitable. It was never clear that republicans would necessarily move on a vote on the tpp especially in the year when their president ial candidate campaigned against it, campaigned on trade and protectionism as a key issue of the president ial campaign. Once he won they certainly werent going to do it no matter what the Obama Administration wanted. It seems they are realizing that and saying publically. The wall street journal is reporting that they have landed an interview with the president elect donald trump. A couple of key points here from the lead of their story president elect donald trump saying after conferring with president obama he would consider leaving in place certain parts of obama care including mr. Trump said to the wall street journal he favors keeping prohibition against denying coverage because of patients existing conditions and provision that allows parents to provide years of additional coverage for children on insurance policy. Trump says he likes those provisions very much. Those are two of the most popular provisions of obama care. Interesting that the it is cast as a decision donald trump made after the meeting we saw with president obama yesterday at the white house. That meeting went on much longer than was expected. We dont know what was said behind closed doors. Now we are getting indication that president obama was able to influence president elect trump at least on that narrow point of obama care. Fascinating behind the scenes details. We wont know until the new bob woodward book comes out. If he can get moving on that. Im sure he is working on it. Im sure he is. Time now for a cnbc news update. Here is what is happening at this hour. At least four civilians were killed after a taliban suicide bomber rammed a car packed with explosives into a wall in afghanistan. Scores more were injured. Heavily armed attackers followed the blast. A plane traveling had to return to the capital to make an emergency landing. A brazilian woman told the Flight Attendant there was a bomb on the plane. Authorities searched the plane and the woman was arrested. Warren buffett is getting richer off Donald Trumps election victory. He added nearly 6 billion to his fortune this week at least on paper making him the second richest person on the planet by bloombergs calculation. The crime fighter of the man from uncle has died after a brief battle with leukemia. He was nominated for an oscar for the 1959 film the young philadelphiaens. Thank you very much. You would have liked robert vaughn. He went back to school in his 40s to get his phd. His dissertation was on the red scare. Mccarthy stuff. Thats extremely impressive. The stuff i know. 22 minutes left here. The dow up 14 points. A leading trader tells us what he is watching into the close on this final session of a crazy week next. My name is erick varela. Im a substation electrician with pg e. When i was 17 years old, signed up for the United States army and i started serving and i now get to serve the customers of pg e. I get to help other families. And thats what its all about. When i came back from iraq, couldnt find work. Then i found pg es power pathway program. Here at pg e im Successful Living in eureka with our two beautiful kids with a brand new career all because of the power pathway program. If you are a veteran, go to pge. Com powerpathway and hopefully your life will change like mine did. Together, were building a better california. 19 minutes left in the trading session. The dow capping off a big rally this week. Joining me on the floor of the New York Stock Exchange tim tim anderson. We are all focussing on the dows 5 gain but the russell is up 10 . Do you want to be a part of this rally . Are you thinking about fading it yet . I think it has token because i think that the biggest institutional Money Managers have been operating under one game plan for the last eight years and now in unexpected election outcome they are looking at a much different investment landscape for minimally the next four years. And its going to take more than just a few weeks for them to reallocate, to set up the way they want to be. They are probably shifting from bonds to stocks and probably going to make massive Asset Allocation shifts within sectors within the equity part. Which they are already doing. Infrastructure play and health care. No doubt about it. One reason the s p is lagging a little bit. Oil is down 3 today. And there is significant winners and losers. You can already see it is more than just Short Covering and a few traders punting around. Thanks, tim. See you later. Maybe it does continue. Thank you guys. 18 minutes into the close today. Watching markets kind of hang on and consolidate. Dow still up about eight points. Financial stocks enjoying pretty fat gains thanks to Donald Trumps victory and prospect of regulation overhaul. We will discuss whether good times or financials are here to stay after the break. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. 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Shares surging after reporting earnings of revenues that beat street investments. Announced a 22 dividend increase. Its up 30 now. Holy cow. Financials have also had quite the rally since donald trump became president elect. Take a look here. You can see the performance since november 9 with shares of wells and Morgan Stanley up 12 . Will the bank rally last . Fred ling and jeffrey hart join us now to discuss. What would you bet on here . Well, im going to bet that we are going to have a lot of fiscal stimulus as opposed to the monetary easing. I think that game is pretty much over. Fiscal stimulus will drive our economy in a positive way. That will create more demand. We are also going to have an increase in interest rate. There are a lot of assumptions built into this rally. One that the fed will have to pick up pace if the fiscal stimulus works and perhaps a repeal of sorts for doddfrank. Do you see much of that happening . I do expect it to. We wouldnt be seeing a circumstance change for banks, brokers and businesses in general with the republican sweep in the elections. I think we will see progress on more Economic Growth and dialing back of some of the Regulatory Burden. That Regulatory Burden buy back is likely centered on small and regionalbanks. I think the real question, though, is the environments improved how much of that is priced in and is it too late to be getting hit . This is going to move around. We just kind of do it back in the envelope. If you figure the tax rate goes down and regulation is dialled back a little bit and the yield curb steepens and looking at bank stocks you can pencil in 30 , 40 earnings growth. I think after 11 move i think we can still see bank stocks and the investment banks doing well in the next year. You know the fidushiary rule is a biggy. There has been talk that maybe it doesnt get put into effect. Would you bet on the rule coming back out and not being effective and helping those exposed names . Well, i think the actual rule at the department of labor put forth i think is for many possible Investment Managers is really not an issue. I think its really meant to protect those on the tringe and i think a lot i think we will have a relaxation of regulation in the Financial Services industry in general. I think the fundamentals are very positive. A lot of tail winds including demographic. We have an aging population and more and more accumulated savings and they will need assistance investing that money and that will drive this industry. We have to go. Wish we had more time. Thanks for joining us. Appreciate it. 11 minutes left in the trading session with the dow up 33 points picking up pace a little bit. It is friday and that can only mean one thing. Independent Investment Consultant here with his acronym of the week and what to watch for in these markets. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at Td Ameritrade. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Eight minutes left in the trading session with the dow up 40 points. Art cashin just told us that the market on close orders are to the buys like billion dollars. That is a bigger move. Here we are again with new highs on the dow. Joining us on the floor of the New York Stock Exchange david doris capping off a wild and whacky week here. You got that right. First of all, we need to salute the 22 Million People who served in the army. 60 Million People voted for Hillary Clinton and her speech was phenomenal. I think it ranks up there with august 28 in front of the Lincoln Memorial by Martin Luther king jr. People will watch this speech, young men and young women and be inspired by her words. People around here were saying it was partly why we had the huge rally. And unify is our acronym for this week. U is the United States shown we were like a eugene oneil family fighting around thanksgiving dinner and then we were hugging one another. This week showed the paragon of decorum, respect and nobillity. The n is next steps for President Trump. We are all waiting to see the appointments, the Transition Team, the words that he uses. These are going to be very, very important. He as a deal maker. I think many thinks out there may be negotiating things and we shouldnt get overly worried. 2003 to 2006 the only times you had republican house, senate the first one up 35 . The second one up 50 . The i is inflation concerns. This big infrastructure program. Positive Producer Prices now. You have to watch that because the biggest driver of Interest Rates is not the fed. It is not deficits. It is inflation concerns so you want to watch that. Unif. F is the foreign trade. It is the Foreign Exchange of the dollar. The dollar was quite strong this week. You dont want it to be so strong that it impedes. And the y is yellen. Yellen was appointed to a fouryear term as governor of the fed and that ends february 3, 2018. She was appointed to a 14year term as member of the fed and she served until 2024. How she handles herself is very key. 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Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. 90 seconds left here. Bob pisani with me. We have so much to review and so little time as usual. The dow just for the week. This is the best week in five years. We were mentioning this with tim anderson earlier. The dow is up 5 for the week. The russell 2,000 is up 10 . Generally higher Interest Rates, tougher jobs and small caps. If you get growth along with it small caps tend to outperform big caps. Speaking of higher Interest Rates the yield on the ten year going much higher here. I would say ripping. We have the fed trying to do something. This is perfect for them. Fiscal stimulus asking for it for ages. They have some perfect number for them. The dollar continues higher which is taking its toll on commodities. We stopped going up for good reason. Banks, pharmaceuticals, industrials, banks and pharmaceuticals moving up on lower regulations. Industrials moving up on hopes of stimulus and infrastructure plans. We need more details about what is going to happen. We cant just go up on the idea we get less regulation or more infrastructure spending. We need specifics. That may be another starting point to start speculating on what might happen. Agree. Cap off a week for the ages to say the least. The dow with a gain of 37 points. Stay tuned for hour number two of closing bell with kelly evans and company. Have a good weekend. Thank you, bill. Welcome to closing bell. Im kelly evans. Another record breaking session on wall street. The dow closing at an alltime high with a gain of 36 points. 18,844. The s p 500 dropped three points today. That closed at 2,164. And the nasdaq a little bit of a comeback today a half percent gain. We will talk about nvidia up. The dow eking out a third day of gains in what is being dubbed a trump rally. Coming up larry kudlow brings us his trump todo list. And from grub hub to new balance ceos are weighing in on americas 45th president. Just like the election people are divided and some are threatening to boycott brands. Those details are coming up. We have cnbc senior markets commentator Michael Santoli as well as evan newmark and ryan kelly. What a wild week it has been. Only 5 in five days. It has been amazing. Three days is when the upside came in mostly. Obviously took a little breather today. Small cap stocks still part of the big story which is from safer areas in the market to riskier and more domestic areas. Also a couple of pockets of interest are retailers were also on the upside today. That is interesting in the sense that it is a little more of a tangible bet that the consumer might come out of his or her shell in the next couple of months. Keep an eye on oil. It is really setting up as commodity drive. It made a lot of sense to have rotation for three days. I think it is sususpectable to policy headlines and wrinkles. Are you ready to welcome donald trump as the savior of your short bond trade . He has made me money this week despite what my own personal wishes might have been for the outcome of the election. The two big moves this week, xlf was up financials were up 11 and the tlt which is proxy for the bond market was down more than 7 . Thats a proxy for the long bond. When you own bonds and getting 2 yield in a good case you dont really want your bonds down 7 . Saying he thinks the first part is about 80 of the way done. Nobody knows. Nobody really knows. I dont love equities here. I think a lot of the run in equities is the old paul simon saying which is a man hears what he wants to hear and disregards the rest. Everyone wants to think trump is great for the economy. What a shift in conventional wisdom. Bill acman said he woke up wednesday and decided i feel bullish. One thing i do know is donald trump is bad for bonds. That is one thing im pretty sure of. You are convinced this move will keep going . I think largely because donald trump is inheriting an economy that is 2. 5 growth, 4. 9 unemployment for things to get better for him the economy there has to be inflation and wage growth. I get the sense that you disagree at this point. Shorting bonds. I would say its more about a republican sweep than a donald Trump Victory in the sense that some pro business hasnt been done. I dont think the market would have rallied as much if donald trump won and you didnt have a republican sweep. It wasnt just at the National Level it is playing out at the state level, too. If you look at state legislators connecticut is even at this point. What do you do in terms of investing . U. S. Assets are going to do well. I think the biggest thing you have to know, it is hard to be bearish on u. S. Assets when you know there will be repatriotings of cash. Corporations will buy the stock and pay dividends. You have a wave of money coming into the u. S. That is probably while you see small tax rise, as well. The u. S. Dollar is an interesting story. The index is now at 99. Rick santelli was tellinguo us u dont see a triple. Now you get to more complicated factors. The dollar has been on the rise. It is basically at the years high. You have the long end of treasury yield curve going higher. In theory if we are moving from deflation risk it gives more room for the fed to operate. I think that psychology starts to work in that direction. You are seeing emerging markets sell off. Here is what Jeffrey Gundlach said when he appeared earlier today talking about the fed hiking rates in december. If the fed doesnt raise rates in december they are never going to raise rates again. The bond market is giving them cart blanche to raise Interest Rates with rates going up 83 basis points since july 6. And the comparison of yields suggesting 85 probability that the fed is going to raise rates. December seems that the fed absolutely should raise rates in december if they plan on ever raising them again. Would you echo that . Absolutely. The one thing that i think has been overlooked is something that mike touched on which is where is the Global Growth going to come from . Its hard to envision where the u. S. Economy grows at this donald trump said 6 rate at one of the debates. In a best Case Scenario how do you get the u. S. Economy growing at 4 a year . Youre doubling the number of coal industry jobs in america. Let me throw two things out there. One is the rate of startups has been horrible. Maybe that starts to help. The other thing is the tax reform. We were talking to one analyst saying you get the right combination, 30 to 40 earnings growth. What industry are you getting the job growth . It is not tech industry. You are not going to get it from the Construction Industry unless there is huge infrastructure plan. You not getting it from building more houses. Are you going to get it from the coal industry . It is tiny. Where are you going to see this great boom in growth . Where will you get wage growth . My guess is inflation and has to come from some element of global trade. One trade war and trumps economy is dead. What do you think . I think you have to watch the dollar. You dont need a trade war if you have a very strong dollar which is a high probability. You are seeing a shortage in europe. If you get more shortage that is your kind of wet blanket on a cold day is that the dollar rips higher. That is not todays problem. I dont think the stock market will react to that today. Do you think a lighter Regulatory Burden on business, is that enough to just whether you can figure out what sector it is coming from does it raise all a little bit . I think in certain areas where it is a really direct where you are talking about not having price controls and talking about financials getting untangled a little bit i do believe that is true. I dont think you manufacture and have a little bit of adjustment. Again, i dont know that we necessarily that was reason one we didnt have a lot of startups. Here is what Warren Buffett said earlier. He was on cnn giving thoughts about the longterm impact of president elect trumps impact on the markets. Will be higher and would have been with hillary and will be with trump. By the way, there has been plenty of macro bears on stocks for years. I dont know how much Public Participation there is at this point. Are comments like that from someone who is a big supporter of hillary going to unleash animal spirit investing in the market . I think that is kind of written on the insides of warrens eyelids that the stock market will be up. He said the same thing 20 years ago. It is a fundamental belief he has. He is saying america is a great place. What i do think you will run the possibility of seeing here is the whole system will donald trump is a big believer in leverage. He comes from the school of the more bonds, the junkier they are the better. You run the real possibility that he basically says to paul ryan you take your balanced Budget Amendment and go back to wisconsin with it. I am going to jack up this economy with a lot of debt and that will be defacto good for america. Going back to the point you made the gop is in control of congress. Are they going to support Something Like that . Certainly support infrastructure spending. It is a question of how much debt they will add on to the Balance Sheet to do that. At this point i dont think there is much argument why you wouldnt do that. Very low Interest Rates. If you look around the world while we have a high debt to gdp i dont know if it will work. Probably not the policy that i would do. My job is to evaluate what i have in front of me. If i see a whole bunch of money coming into the u. S. Whether from bonds or overseas or whatever that will find its way into the stock market. That is the only thing we know right now. Just want to show you live pictures out of minneapolis where students are marching in protest against both Donald Trumps president ial victory and the news today about the Dakota Access pipeline project, word it will be moving forward from the Obama Administration. Just word. We will continue to keep you posted. Minnesota did not go for trump, right . That state was for clinton, i thought. It is a super liberal state. Minneapolis especially. That naut saying that much. We have a news alert on president elect donald trump. Eamon javers, what is happening . We are getting news now from the Trump Organization about the role of Donald Trumps children. Reuters reporting that planning for immediate transfer of management and business portfolio to donald trump is going on now which says the new structure will comply with all applicable rules and regulations. Those trump children also got another new job today as they were officially named to the trump transition effort. They will be managing Donald Trumps business portfolio and have a role in overseeing his president ial transition at the same time. I dont think we have seen president ial children in quite this role in a long time if maybe ever. This is going to be an interesting dynamic to watch as the Trump Presidency unfolds. A couple of points of news here. He has given an interview to the wall street journal. Take a look at bullet points he had to say on obama care, the aca. Here is what trump said. He said he would like to keep the prohibition against denying coverage because of preexisting conditions and would keep a provision that allows parents to provide additional years of coverage for children. On the question of whether there is a special prosecutor for Hillary Clinton or not he said it is not something i have given a lot of thought because i want to solve health care, jobs, Border Control and tax reform after all of the rallies with the chants of lock her up, maybe some of those tensions are beginning to recede a little bit here. Donald trump said he is not focussed on that question of a special prosecutor right now. Interesting tactical and policy changes here from trump versus what he said on the campaign trail a week ago. Any thoughts . Hell let rudy handle hillary. Rudy said he doesnt expect to have a role in the administration. I think what is interesting is obama care he wants to keep the popular parts of obama care and somehow he doesnt want to pay for it. He started to act like a politician. What do you think before we go in. I think that if you couldnt believe what he said in the campaign how do you believe this statement . I have no idea what he is going to do. All right. Thank you for joining us. Well let you get ready for fast money. There is much more coming up next hour. They have the one group of stocks that hasnt joined the trump rally yet but could be next. Donald trump has a lot on his plate when he moves into the white house. Larry kudlow says trump should prioritize four things. Mark zuckerburg says it is crazy that some people are blaming fake news stories on facebook for swaying the election. We will discuss whether he is right later on closing bell. Youre watching cnbc, first in business worldwide. Theres a lot of places you never want to see 7. 95. 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Ceos around the country have been commenting or sending company memos with thoughts on the election. Just yesterday starbucks chief executive Howard Schultz expressed his thoughts on mad money. The fact that it is over, whether we like the result or not, i think the president and Hillary Clinton did a wonderful job of demonstrating real humility and recognizing that we need to support president elect trump and as a nation we need to come together. I am optimistic. We have a lot of work to do. My concern right now is to ensure the fact that there is a lot less divisiveness and a level of sincerity and people coming together with compassion and empathy for everyone. Not all ceos are quite coming together. In an email to employees matt malone saying i absolute he c if you do not agree with this statement then please reply with your resignation because you have no place here. He has since clarified he did not ask anyone to resign if they voted for trump. Shares of grub hub down. On social media people are saying to boycott. I actually understand why ceos feel compelled to put out statements like this because they are mostly talking to employees. I think the whole thing has been how do you attract and keep millennial employees. This is the language of the current work place. It is inclusiveness and tolerant. That is the message they are going for without regard to who is it a continuation of what is happening on College Campuses with the safe space thing where you feel like different view points are not tolerated and the message that it can disagree with our agenda that you can get lost. I think it is more there were objectively certain extremist elements in the Trump Campaign that were more prominent than a typical campaign and that are was certainly the language and vitriol. For putting that aside. As a ceo i think it depends who your employees are, where they are located. I can assure you that in new york city or west coast of california you would be ignoring the elephant in the room if you said we agree to disagree sometimes and lets just move on because your employees wanted to hear some degree of leadership or a point of view that made them feel that absolutely say yg heard from so many of our employees that are upset. It becomes a work place issue. Right or wrong they had stories about people in work places where certain leaders were told please stop making cracks about donald trump you are creating a negative environment. I am the ceo of our household. Im serious. My house keeper is a lovely woman. She is also muslim and also a u. S. Citizen. She came to me and was very worried. I think to say nothing to her as her employer would have been a dereliction of my responsibility as her employer. Much more personal oneonone relationship. Ceos of companies, Howard Schultz would say he has a very personal relationship with people at starbucks. I think you are not giving enough credit to a lot of ceos who are very engaged. Unlike grub hub if you have a Global Company you feel compelled to speak representative of the home office in the United States. Im not sure that you can deal with people on a oneonone basis. Do you have to put out something that strongly worded in. It is a question of how each person will handle it differently. The message of there is a divisiveness there. We need to deal with that issue head on. Everything is going to be all right in the end if we hold together as people. I think the short answer is there is no need to invoke you should resign. Donald trump already making headlines that he may keep parts of obama care. Larry kudlow tells us four things trump should prioritize. Well discuss how Donald Trumps plan to renegotiate trade deals and potentially engage in trade wars could impact the economy. World ugly and messy. They are the natural born enemy of the way things are. Yes, ideas are scary, and messy and fragile. But under the proper care, they become something beautiful. The medicare enrollment deadline is just a few weeks away. Changes to medicare plans could impact your healthcare costs. Are you getting all the benefits available to you . New plans are now available that could increase your benefits and lower how much you pay out of pocket. To update your coverage or enroll for the first time call healthmarkets. Well help you make sure you have the right medicare plan. Hi, im doctor martin gizzi. Its a new medicare year. That means more changes. And more confusion. Heres what i tell my patients. Start by asking. What kind of care is best for your Current Situation . Have there been changes in your health or medications . The key question is what can you do now, to ensure you get the care you need in the coming year . To find the coverage you need, call healthmarkets today. New medicare plans in your area may offer better coverage and lower costs. 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And let healthmarkets find the right medicare plan for you without cost or obligation. Call now. Nchlts we have a news alert on facebook. What is happening . If you go to your Facebook Page right now you may notice something a little strange is happening. This is happening to a lot of users reporting it on twitter and other social media saying when they go to their page it says the in memorial page is showing up. This is a function that facebook has if you pass away. Its happening to a lot of users including Mark Zuckerburgs page. You can see what happens at the top. It says remembering someones name and we hope people will love whoevers page it is. This is their standard page. We did reach out to facebook. They said they would get in touch with us when they had something to share. This is affecting a bunch of peoples profiles. It is important to note that it is happening to actual people but not facebook groups. It doesnt say that personal pages such as trumps or obamas. It is not having that notification but for users and Mark Zuckerburg itself. We will continue to monitor the situation. It looks like a glitch or bug. This is a banner that facebook does offer. We will continue to monitor and let you know when we hear bat. We want to make sure nobody gets the wrong idea when they see the message. It has been three days since his election and donald trump has a long list of tasks he promises to tackle on the campaign trail. Going to bring coal back. Obama care has to be replaced. I would say 70 of the regulations can go. I will not let wall street get away with murder. I am proposing an across the board income tax reduction especially for middle income americans. A Trump Administration will renegotiate nafta. If we dont get the deal we want we will terminate nafta. We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We are going to rebuild our infrastructure. Joining us now with his todo list for trump is larry kudlow, senior contributor and informal adviser to the Trump Campaign. Last time i saw you was early in the morning this week. Wee hours. We cant keep the date straight. We are finding out a lot about trumps Transition Team, about potentially some of his plans. What are your four things that are on the todo list for donald trump . He has a large menu. I think tax reform is number one particularly Business Tax Reform which i think would reignite the economy very rapidly. I think number two is going to be to rewrite obama care, that is a job killer and a health care killer. Number three is probably going to be restraining doddfrank. I think that is increasingly a front burner issue. For me personally number four i want to destroy isis. I want to bomb the heck out of them. I want special forces and allies, if you take them out you will destroy isis. That is my preliminary list. Other stuff will go on. What do you think donald trump will do when it comes to deficits . The paul ryan school of control the deficits, keep the budgets relatively balanced, can that go hand in hand with a 4 gdp growth in todays economy . If we get a 4 to 5 gdp growth which is what i would forecast if we get this Corporate Tax reform that is going to be the biggest deficit reduction measure possible because everyone percentage point higher gdp above 2 baseline gives you a 3 trillion reduction in the deficit over ten years. If i can get it up to 4 to 5 growth you are talking about deficit reduction. In the very short run the deficit may go up in the first year or two. Over four, five, six years that is the best way to get it down. Grow your way out of it. That is the reagan jfk, kemp, ryan, steve moore, kudlow, steve forbes, that is our prescription. It works every time if only we would try it again. How does that math work . 1 of gdp right now is 2 trillion at best . Thats 10 . Wait a second. The one percent is a growth number. Its a growth number. The dollar amount of 1 of gdp. Gdp is 17, 18 trillion. So it would be a couple of hundred billion dollars each year and it multiplies as you go out. The baseline rises faster. Over ten years you have already given me a couple of trillion dollars right there just using your calculation. The top line. And then you were talking about reducing the deficit. We will get into it another time. What happens is National Income expands. More people are paying taxes at a lower tax rate because of the incentive effect on growth and fewer people will want government assistance as the economy grows and employment continues to pick up and new businesses are created. So the combination is lower spending. You will have higher revenues from higher income. Once you do the math over ten years you have yourself a good parcel of change. Im a growth guy. Im a dynamic scoring guy. Lets change economic behavior. Lets stop the strangle hold on credit which is what doddfrank has done. Lets stop the death spiral of health care which is what obama care has done and lets destroy isis. Let me ask you about obama care for a second because there were comments from president elect this afternoon about keeping the option to stay on your parents plan until 26 and the other feature making sure you can keep coverage if you have had continuous coverage. The cost of these, are the plans changing and evolving . Trump never laid out a specific, specific plan. In generic times your earlier point is important. Nobody is going to lose their Health Insurance during the changeover. That is very important. I agree with you the same way people with preexisting conditions will not lose that. The key points here are get rid of the mandates. That is point number one. Point number two, maximize free Market Competition and consumer choice. Point number three, we can use these exchanges which was originally republican idea 20 years ago but make changes free. Have competition on the exchanges. Think of them as stock markets. You can have as many insurance plans as a demand for it and that will bring in the millennials. You will have lower deductibles. You will have smaller increases in the premium payments. That should bring the younger cohort back into the system because that is where it failed. Larry, have you talked the kids didnt want to buy it so for the older people they didnt have enough financing and the Insurance Companies are all pulling out. Have you talked with donald trump . What is on his mind . I have not spoken to him recently. He has been a pretty busy guy. What about his Transition Team . Sounds like he is making plenty of moves in terms of personnel here. What are you reading from this . The most important thing that happened today was putting mike pence in charge of the transition committee. This was absolutely five stars get pence involved. Tells you pence is going to have a huge role as vice president. I think of him as chief operating officer and other appointments coming in. You will see much more orderly and probably faster. Jamie dimon floated as possibility for treasury secretary. What would your preference be in. You want to get me in trouble. Because you have clear ideas of what you want to see get done here. Who helps actualize the kudlow plan in. I believe jamie dimon would go along with trumps program. I like jamie a lot. I like the fact that he is a democrat like jfk had democrats and republicans in his cabinet. I would like to see republican president have democrats. On the other hand, there is nobody in congress better, more free market, sounder thinker. Dont ask me to choose. Its way too hard. They would both be great. Thank you for joining us. Thank you. Larry kudlow. Time for a cnbc news update. Thanks very much. Here is your news update. President elect donald trump making changes to his Transition Team. Vice president elect mike pence in charge of the transition people. An Early Morning Train Derailment forcing evacuation of Small Community in minnesota. Two cars were carrying propane and butane gas. One of the cars was spewing gas into the air. A federal judge ordering amazon to repay parents for unauthorized inapp purchases made by their kids. And nintendo has gone back to the 80s with release of the Entertainment System classic edition. The system went on sale priced at 59. 99. It is already being sold as much as 1,000 on e bay. It comes with 30 games preinstalled including donkey cong and supermario brothers. I thought about getting. This fits with your back to the 80s market theme. We are really back to the 80s. I think we are going back to the early 70s with a very divisive american society. By the way, that was much worse than the early 80s. We will stick with nintendo. Trade was one center piece of Donald Trumps president ial campaign. We will discuss what trade policies will look like, whether they could spark a war. Pot, marijuana a big winner this election cycle. Eight states legalizing it. We will look at the marijuana money about to be poured into the economy. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Welcome back. It was another recordbreaking day on wall street with dow up. S p 500 down three points to 2,164. The nasdaq rebounding from a rough session yesterday up half a percent or 28 points to 5,237. President elect trump pledged to get rid of what he calls unfair trade pacts. Less than an hour ago it was reported the Obama Administration has given up on tpp. The north American Free trade agreement is already on the books. Here is what the president elect had to say about that in the first president ial debate. You know to ohio, pennsylvania, you go anywhere you want, secretary clinton, and you will see devastation where manufacturing is down 30 , 40 , sometimes 50 . Nafta is maybe the worse trade deal signed in this country. Joining us now is Meredith Lilly associate professor at International Affairs at carlton university. Thank you for being here. Welcome. Thanks for having me today. What do you think the implications are of President Trump tearing up nafta . I think it is very important to get details exactly what president elect trump has in mind. Reopening nafta in order to modernize and improve the deal is something that i think all sides could agree on and it probably is time to do that. Let me stop you right there. This was kind of news to a lot of people what you are saying. What needs to be reopened and revisited and who agrees on it . Nafta is a very good deal in many respects but it was negotiated at a time before the internet, for instance. There are provisions that just dont exist in that deal. Tpp was supposed to replace or modernize parts of nafta that it didnt address. So if tpp is off the table then there would be aspects of that negotiation that would be worth while to consider including things like updating the list of professions for which our countries can facilitate mobility. The concept of Nurse Practitioner didnt exist so it isnt among professions for which we have temporary entry provisions. There are things that can be improved about nafta. I think tearing up the deal would be a mistake. Both of our countries the United States and canada benefit tremendously from bilateral trade between our countries and overall the deal has demonstrated to be positive for the American Economy as well as american had jobs. I think it is important to understand in fairly short order exactly what president elect trumps plans are for nafta. How easy is it to tinker on the margins with these trade agreements . My sense is it is like once you start picking things apart they come apart quickly. Secondly, how possibly can president elect trump grow the economy in the middle of any kind of trade wars that may arise with china or mexico or canada . Is that real possible . Is the u. S. Economy domestically Strong Enough to do that . On your first question how easy is it to open up and tinkering on the margins is something that can be done if all parties are in agreement. Where it gets difficult and where trade agreements can unravel is if one party wants to open up areas that will be very controversial because in trade agreements you have to give something to get something and so that is how it can potentially unravel. But if all parties are agreed on the aspects that need to be modernized then it is something that can be positive. Go ahead. Whether the u. S. Economy can weather trade wars with china, canada or mexico, first of all, i think these are all very different issues. The United States depends to some extent, the economy does rely on trade with all three of those countries in different ways. I think it is right and good for president elect trump to look at the trade imbalance with china and address those kinds of problems. That doesnt mean that a trade war should be started with a country like canada where we have balanced trade where the United States exports about 300 billion worth of goods to canada and we do the same vice versa we have countries with similar labor provisions and protections for workers and similar wages. This is a positive trade relationship and very reciprocal and balanced. I think it is important not to lump all free trade and trade agreements into the same basket. Thank you for joining us. Thank you for having me today. Professor Meredith Lilly. Facebook is luring advertisers to the site. Why are ceo Mark Zuckerburg rolling out idea that fake news articles couldnt have effected voters on election days. Eight states received enough votes to pass what the surge in Legal Marijuana money will mean for the economy coming up. Welcome back. Facebook is coming under increasing criticism that fake news articles may have influenced the president ial election. Well, zuckerburg defended facebooks role in the election saying the idea that fake news on the social network influenced the election was quote pretty crazy. He told the audience that the argument reflects profound lack of empathy for why voters favored trump. If you believe that then i dont think you have internalized the message the Trump Supporters are trying to send in this election. Facebook has been accused of having a socalled filter bubble or echo chamber where clinton and Trump Supporters only saw their own views reflected back at them where some studies say all together false studies got through to the news feed. Zuckerburg acknowledged that facebook is finding the right balance between free speech and protecting user safety. Facebook said it would stop allowing ads targeting specific ethnic groups. Social media as a whole played a significant role in the election. The recent study found nearly half of u. S. Adults get their news from facebook and one in five social media users modified their views about a political or social issue because of a social media post. And now, of course, as president elect trump continues to tweet and a huge part of the population continue to get their news on social media, facebook, twitter and others are navigating their roles as major sources of information. Lets hope newspapers dont go out of business yet. Eight states voted to legalize marijuana in some form on election day. Jane wells has been following the story. Jane . I have a marijuana swag bag. There is no marijuana inicide. Just recreational sales estimated 7 billion is going legit, up in smoke, up in profits when we come back. Today i am helping people everywhere do what they do. Better. I work with startups like alpha modus to predict markets five times more accurately. I am helping tv networks use social data to predict what people want to watch. And i worked with marchesa to turn fan feeds into a dress that thinks. Hello, my name is watson. Working together, we can outthink anything. And the returns i get out are ivemeasured in reps,n this game hello, my name is watson. Huddles,bright lights, competition and games played. At Td Ameritrade we believe the best investments are the ones that matter most to you. Welcome back. Voters in 8 states voted the legalize marijuana for medical or Recreational Use this week. It is part of the path of what is a 50 million legal recreational industry. Take a look at the map. 43 states now have some form of Legal Marijuana. The 15 states highlighted in gold is medical pot as to not be practical and 28 in all and 8 of those plus dc are green. And it will take a year to get the systems up and running and right now places like nevada is election day at the grow house. Right now, adults 21 and over can now legally possess up to an ounce and grow six plants at home and his business is expanding. He explained his role. Im a tester. I test all the products, you know, i dont need to but i just volunteer. Well, someone has to do quality control. Exactly. As for taxes california alone could raise a billion dollars. Over 200 million in taxes and right now miracle grow without doing pesticides for the industry. And donald trump guys has said he supports medical marijuana. As for recreational hes going to leave it up to the states. But well watch very closely who is chosen as attorney general. I didnt think about that. This is becoming big business today. Some canadian start up with a billion dollar valuation. Its various quality and reputation but stock is up 70 . Its his reaction to the election but still up 30 . Well ceo sees this as a multibillion dollar industry. And wants to be the leader and hes getting here early. Thank you for bringing us up to speed there. Next week is the first full week with donald trump as president elect. Will earnings drive stocks . Thats next. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound welcome back. So the market was heavily driven by the election this week. Will it last until next week. We also have a slew of earnings. Especially retail earnings headed our way. T. J. Maxx, dicks sports on thursday. Foot locker among others on friday. I do think theres a chance if that captures the investors attention you saw kohls this week better than expected numbers. What youre seeing is almost like the commodities and copper. They reduce capacity so much and the inventories are so mean theyre levered to any improvement in consumer spending. Theres 0 chance that earnings are the main driver next week. Look at video today. Yeah, theyll be, you know, the odd story here and there but i think that the themes will be around the bond market and its going to be around trump and heres the one thing that we can be thankful for. I dont think well be talking about the fed over the next couple of months. Im actually greatly relieved. The whole idea of you think its just a rate hike in december end of story. No, i dont think its an end of story. Its just the global economy, what trump does or doesnt do, that will begin to drive the story and the bond market more than will the fed or wont they. A agree to the extent that everyone is going to need a little bit of reality and all of this stuff we seemed to have priced in in terms of policy weather and also we havent really heard trading partners very much and i think the market can be a little bit caught off balance. Macys doing interesting things on the real estate side. Maybe that next week but the idea that youre going to make these into something beyond places to shop which is what their initiative is probably has some. Good luck on that. Right. Just that. And you can talk to him. Shareholders. Well, the argument is that the value has yet to be realized. Dont hold your breath. He is always such a joy. Thank you here on the closing bell. Have a great weekend everybody. Fast money begins now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys time square. Im melissa lee. Tonight on fast, the commodity crush is on gold, oil, silver all getting hit but creating a buying opportunity for one group of stocks. Well give you those names. Plus choosing sides. Why two companies are in hot water after speaking out about both president elect donald trump and president ball balm and later the trump rally could be about to give a major boost to one dow stock reporting earnings last week. First we start off with the markets. 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