Transcripts For CNBC Closing Bell 20170310

Join us to explain a little bit later. Thats some real money. Yeah. Lets start with the jobs report and the latest out of washington. Another busy day there. Steve lease man is there at cnbc headquarters and eamon javers is at the white house. The president s team taking strong for the 235,000 jobs added in february even though it came just a month into the trump presidency. Reporter i think it was a perfect number. Right exactly where it needed to be. Our jobs plan and our Jobs Creation and bringing jobs back to america is going exactly the way wed like it to go. When i was on a month ago we talked about bringing jobs back. I think this number reaffirms everything that were trying to do. No matter who was responsible, it was a very positive report. Unemployment falling to 4. 7 and it was helped by some temporary factors, for example, warmer weather but showing good underlying strength and payrolls. Heres where the jobs were, construction up 58,000 along with leisure and hospitality. The first two categories can be influenced by Better Weather with that mild february. Manufacturing doing quite well up 28,000. Health care a perennial job gainer. Retail falling by 26,000. Were going to talk about that a little bit later. The issue being the bricks and mortar areas, places thats losing employment. All of this works directly into expectations for a fed rate hike next week. More so the market is just about priced in three rate hikes this year and the debate or the risk is now to the up side with possibly a fourth, kelly. And the president eager to take some credit for it. I think thats right. I will say i think its early days with this proviso. I think a jump in confidence can lead to more jobs, but ultimately its policies that will matter and those policies need to be in place for them truly to be the responsibility or not of the president. All right. Thank you, steve. Steve lease man at headquarters. Lets get over to eamon who asked press Secretary Sean Spicer about that jobs briefing. What did he have to say . Reporter thats right, kelly. Just a few minutes ago. As you guys know the president during the campaign was skeptical several times about positive job reports that reflected well on president obama so i had a chance at the press briefing just a few moments ago to ask sean spicer about that skepticism in the past weighed against todays job number. Heres that exchange. Eamon. In the past the president has referred to particular job reports as phony or totally fiction. Does the president believe that this jobs report was accurate and a fair way to measure the economy . Yeah, i talked to the president prior to this. They may have been phony in the past but its very real now. So the press secretary sort of brushing off the president s past criticism of the jobs report process. Well see howell that plays over at the bls down the block from where im standing. We also got an update here from the president in terms of the health administration. The Top Republicans are working to push health care through on capitol hill. We got a chance to hear from him about what he thinks the prognosis is. Heres what he said. This is the time were going to get it done. Were working together. We have some great results. We have tremendous spirit and i think its something thats just going to happen very shortly. So thank you all very much and were going to get to work. So there you have it from the president. He says health care is going to happen very shortly. Obviously there are some political challenges up on capitol hill. Conservatives consider his bill to be obamacare 2. 0. Some major organizations like the American Medical Association and others have come out against it. This white house suggesting theyre confident its going to get done. Back over to you. Eamon, im curious. How would you characterize sean spicers relationship after the rocky start . Reporter thats an interesting question. A lot of people in the press core have known sean spicer. He was press secretary at the rnc. This is a very different question. Its adversarial between the press secretary and the press core. Sean spicer goes out there nearly every day and he does take questions from the press even from the reporters in the room who he knows will be hostile to him. So theres just this natural give and take and tussle in that Briefing Room every day. Well put. Well answered there. I think you answered it. Thanks, eamon. See you later. Maybe ive been watching press secretaries too long and learned how not to answer questions. Good job. See you later. Lets get to the markets now. The dow losing some of its early gains this morning. It first went negative this morning after these comments from senator john cornin at the conference about tax reform. I think were talking spring summertime fra time fram. Theyre shooting for something in the august time frame. Im thinking maybe sometime in the 2017 time frame would be more realistic but were definitely committed to tax reform. So were concerns over the tax rally killing jobs . Joining us we have with us Chris Cordero from region atlantic, steve bliss at post nine and Rick Santelli checks in from the cme in chicago. Keith, i mean, some feel that oil was calling the shots today but wall streets always got its eye on washington as well, doesnt it . Yeah, it sure does. Thats been the case ever since donald trump has gotten elected. Youre absolutely right. When you look at the marketplace it has all that weve talked about leading into this block here is priced in all of the Monetary Policy that we see. The yellen fed has been very transparent about what theyre going to do. The macro numbers were getting including the one we got today reaffirms the fact that were going to get 25 basis points next week. Really what the market is waiting for is whats going to be the next policy push out of the administration. We all assume that some kind of Health Care Law will get put in place and can they get tax reform before the summer recess rather. So when you take a look at the market weve been experiencing lower lows and lower highs and thats actually a trend thats not real favorable to the market continuing to push up. Its particularly noticeable in the small caps which tends to lead the market down but lags when the markets going back up. So these are a couple of troubling signs that have been picking up this week that we need to keep an eye on now. If they keep talking positively that will reverse the trend quickly. Sooner or later the proof is in the pudding. Youre seeing john cornyn and Mitch Mcconnell backing off. Well have to see what the message is around taxes. Chris, youre watching this. There are a couple of specific names you like in this environment. How would your decisions be affected if tax reform doesnt happen by august . I know that everybody wants tax reform. Everybody wants some more fiscal spending but sometimes you dont always get what you want. You get what you need and what you need right now is higher Interest Rates, which i think were going to get next week, and what weve already got which is really strong corporate Earnings Growth and those two things combined are thats great for the market. Theres a song lyric in there somewhere. Does that affect your portfolio management, chris, in the mean sniem do you sense that you needed to Pay Attention to washington to tell you what to buy or sell right now . Well, washingtons going to be entertaining and its going to move the market in the short term but in the long term where i see were going to get movement and one stock i like a lot is citigroup. You know, i think its almost a done deal that well get rate hikes next week. That will really help citi. They have unprofitable products that turn profitable as rates inch up. That will drop a lot of money to their bottom line. We were showing intel and comcast, our parent companies. Rick, what about you . The rate pick has been a big one here. Yeah, you know, to me rates were very well behaved, meaning that they were sticky. The data shouldnt have pushed rates down, but i think the lead up, the anxiety of ecb meeting, the big number today, the meeting coming up h put a hurdle in front of the markets. They did back away a bit, not much. Were still up nicely on the week, nine basis points. Heres the fascinating thing. Stocks regain their sea legs after going a bit negative as bill pointed out. Rates . Rates on the high rate. It looks like were in jeopardy of losing the 1. 01. Its not only a dollar story but in front of a fed meeting in front of a tightening a little bit illogical until you think about it on the other side of the street. The Euro Currency is pushing up a bit. Theres all these stories out about post ecb, meeting, draghi. It certainly seems as though the euro isnt buying into the fact that theyre going to have unbelievably low and negative rates forever. Maybe theres some movement there. Maybe theres some surprises there, but no matter how you slice it they were awfully short the euro and awfully long the dollar especially when you think of what the bat is to do with the dollar. Seems like a lot of sides in fxville these days. Keith, your thoughts on some sectors and where opportunities lie. There has been debate about whether theres time to start nibbling on energy. What about the financials . Are they still a slam dunk as the fed apparently gets ready to raise Interest Rates . Where do you see the opportunities right now . Well, weve been saying since for a long time, for a few months, the financials get long and stay long. As chris was pointing out, i think the fundamental picture against the back drop of whats going to happen in the administration makes that an attractive sector to do. Interestingly wa weve seen is the real estate sector has gotten slammed. Short term thats a good buy. I assume thats mostly a rate play. Has nothing to do with the underlying strength of the economy. Its just the fact that thats one sector that didnt count on this movement in rates moving as fast as it did as rick was pointing out. Weve had a nice, healthy move in rates. Those are the two sectors that i would look at right now. In a growing economy even with modestly raising rates, real estate should still perform well. I can tell you from inside information on some transactions im involved in, theyre still building multihousing projects across the country at light speed. That will be a place to play. Are you allowed to tell us that . It sounds so secretive. I feel so in the know now. Chris, i was going to ask you why intels a pick here . Intels a pick here. Its all about the cloud. All about data services. Intel is in a great position moving from a consumer based chip maker to one thats really going to support the cloud and the infrastructure. Thats really what its all about. Youre buying it at a great value and i think well see some nice growth out of this stock in the years to come. All right. Thanks, guys. Appreciate it very much. Have a good weekend. Tgif. Thank you. Thanks, everybody. About 15 minutes to go here. Dow is up 37 points. S p up 5. 5. Pretty much seeing green arrows. Transports up 70. The vix is down again. More than half a point. Again, 11. 5. Russell small caps are up. Nasdaq i believe higher as well. Commerce secretary wilbur ross, he made news on nafta and the u. S. Trade war with mexico over sugar. Well have details on that coming up. And guess where millennials are buying their clothes online . The answer may surprise you. Youre watching cnbc, first in business worldwide. This is where i trade and manage mportfolio. Since i added futures, i have access the oil marketand gold marts. Okay. Im plugged into eities trade confirmed d i have Global Access 24 7. Meanini can do what i need do, then i can focus on wh i want to do. Visit learnfuturestoday. Com see what adding futures can do for y. Welcome back. Some plus signs now. Been a pretty erratic day. The markets being pulled and pushed varying degrees by tax policy out of washington. Talk about that. The price of oil. The dow is up 40 points right now at this hour. Jetblue airways is rising as well. The carrier reporting 1. 5 year over year increase revenue per average seat mile for the month of february after that metric fell by 8. 5 in january. But the stock is up smartly today. A gain of 5 1 3 . Meantime, its being tauted as the biggest on shore Oil Discovery in the u. S. In 30 years. Spanish oil company repsol says its found in alaskas north slope. It expects 1. 2 billion barrels of oil to be produced starting in 2021. Repsol and Armstrong Oil and gas have been gently exploring alaskas Oil Potential since 2011. Bill, there are probably people in the oil industry saying this is a blessing and a curse. Another pipeline is needed now. Look at i was glancing over there. We have 48. 5 bucks on wti again. A boon for some but its going to put pressure across the market. Another sleepless night for opec right now, right . Right. Meantime, commerce secretary wilbur ross made Key Headlines on nafta and the u. S. Trade dispute over sugar. Ylan mui has thats. Reporter bill, the two countries are extending their negotiations over sugar exports. Theyre hoping for a longterm solution over a deal that both sides say is not working. A new agreement would have implications for the commodities market but for oo food and beverage companies. Think of mondolese and coke. Mexico halted shipments of sugar to the u. S. Because of concerns it would violate export limits. So the fact that secretary ross and mexicos economic minister appeared together this morning saying that they want to cooperate, that bodes well for trade talks in the future. It is my hope that this will be the beginning of a long and fruitful relationship that will strengthen our nations. Reporter secretary ross also provided a more detailed time line of when that renegotiation of nafta might happen. He plans to send a formal letter to congress in the next few weeks. That will start the clock on the 90day notification period thats required before any talks can begin. And theres been so much rhetoric around tough action around mexico, todays meeting was meant to temper that. Mexicos minister joked about the fact that both he and ross have a fokt for pocket squares. I guess you have to start somewhere. I have a theory. I think that mr. Trump and mr. Ross are playing Good Cop Bad Cop with mexico. What do you think . Reporter its quite possible. They were very chummy today. When they were asked about how the relationship was going, they said everything is great but, you know, theres still the negotiations to be had. Well have to see exactly how the talks go, whether or not the goodwill they seem to have fostered is carried over. Im wondering how you say pocket square in spanish . Reporter i dont know. Somebody will tell us. Thanks, ylan. Thats why god created twitter. 40 minutes to go. 40. Yeah, what she said. The dow is up 46 points right now as we head towards the close. The s p and nasdaq. By the way, a lot of averages were heading for their worst day of the year. Shows you how strong a year its been. Weve yet to have a 1 down day this year so far. Isnt that crazy . Probably longer than that. It does go back a few months. Up next, 2 trillion of net worth. Well break down the key drivers. Also ahead, well tell you whats putting the mojo back into the high end art market coming up. s t value ocapital . Whatsrical thinking like . A etball costs14. Whatsm spit heers whats it wortto talko your mom . Whats the value of a walkn the woods . The value of capital iso create, not just wealth, but thin that matter. Morgan sey oh heyso we share our ecamg trg knowlee. Thats areat idea, oht whwhdot you st go to ecamthinkorswichat rms whe you can are strategies,ideas with market ofessials an thounds oer trade . I know. Urra told brain befo you tolmy face. Mmm, beberry . Tainto t knowledgef other trers on thinkorswim. Ly at td ameritrad this stock market, 2 trillion in wealth. How important is the stock market to this white house . The stock market is important to us, but its just one of the barometers that were looking at. We look at the stock market every day, but we look at the employment data. Were looking at gdp data. That was nec director gary cohn talking to squawk on the street this morning addressesiaddresseing the surge in u. S. Net worth. Showed net worth reached a record 92. 8 trillion in the last quarter of 2016. Now according to the feds report, 2 trillion led in that quarter led by steady surge in stocks. The stock market added 728 million and the value of the Balance Sheet was 567 billion. Its been on a steady climb going back to the great recession. And yet were not seeing the wealth effect kick in this time around, right . Yes. Heres why i think thats not happening right now. Its a combination of things. The shop till you drop generation, the baby boomers, were starting to slow down as we age and the scouting report on your generation, the millennials, is that you are frugal. You are. I know my kids are a couple years younger than you, theyre very frug gall as well. You have a double whammy for retailers out there. Yes. Were not buying as much as we used to and you dont buy anything. Truth to that. Income expectations are still so weak. Even though the wage number was up 3 , a lot of people dont expect their wages will rise. There might be something to the fact that people are paying down existing debt. Heres one more stat to throw at you. The ratio of net worth to disposable personal income. Okay. 6. 5 x. Thats the highest ever recorded and the only other times weve been above 6 were in the dotcom bubble and be in the housing bubble. So its quite interesting to watch this, both for signs of health and repair on the nations Balance Sheet and also for any signs of weakness ahead. Go out and buy something tomorrow, would you . Help out the economy. 36 minutes left in the trading session. Here the dow is up 41 points right now. New data shows those millennials are buying more clothes than ever at one specific place. The hottest online retailer on the block is coming up. Meanwhile, amazons Voice Assistant a leks is a could rake in 10 billion worth of wealth. Well talk to the analyst who wrote that report when we come back. Welcome back. Were seeing a rally here this afternoon as we head into the close. Were down from the highs this morning after that blockbuster. The dow is up 41 points, s p up 6, nasdaq 19 and russ willing up 5. Toronto Dominion Bank is lower. Cnbc news reporting that employees of the bank are being pressured to up sell products customers dont need in order to meet high sales goals. The bank telling cnbc we dont believe it is an accurate portrayal of who we are. We will use this as an opportunity to reflect and ask ourselves across the organization how we can do better, end quote, bill, before people start drawing parallels over at wells fargo. T. D. Shares down 5 . Thanks, kelly. Coming up to the last you half hour trading over the dow. We get to spend some time here with mr. Cashin from ubs. Weve been wondering what the next catalyst would be for this market as it kind of meanders. Its pretty clear oil is having an impact. Oil. The thing is theyre picking different spots. Earlier today it was the 49 level. When it dipped below 49 you would see bids and equities disappear. When it went above 49 they got reinstated. Now theyve marked that target do you know to 48. 40. So above 48. 40 where we are right now theres a little bit of bid under stocks. Before that next week is going to be very, very busy. We not only have the fed. Right. Weve got the dutch election which is on the same day as the fed. Then the next day we have the Swiss National bank and we have the bank of england. So weve got a lot of balls in the air. The yield on the ten year, too, challenge 260 this week. Its pulled back a little bit. Thats a number that bill gross has identified as being the number if it closes above that, then we see a bear market for the bond market. Is that good for equities or not right now . Well, it depends if it just, you know, glances above it, its still okay. But if it shoots up to about 2. 7 or 2 3 4, then i think you might get a negative reaction here. Youre going to have the fed next week. Some people are wondering if theyre going to do 50 basis points. Given their history i dont think thats likely at all. What youd want to have the viewers watch is not just the statement but look at the dot plot. Get a sense of how many more times they think theyre going to go. Also senator cornyn was at the sarah wheat conference. That seemed to take a little wind out of the stock market sails as well. It is. Its timing. They have decided they cant do anything until they get the health bill through and then theyre going to tackle taxes. So far nothing has been fully voted on. Right. The debate and discussion, dont look for easy passage of anything. Thats got the market a little anxious. Plus i hear we have a noreaster coming next week as well. Yes. Keep an eye on that. Well get into weather forecasting next week. No doubt. See you later. Thank you, guys. Time for a cnbc news update with sue herera. Hi, kelly. Heres whats happening at this hour. A video uploaded to the internet shows u. S. Backed Syrian Forces clashing with isis east of raqqah. The Syrian Forces said they do have enough manpower to capture the city underlying their opposition to any turkish role in the attack. Pope francis says he is open to the possibility of permitting married men to become priests. This to help the serious shortage of rural priests. He ruled out the prospect of allowing single men to marry. Diabetics may be at risk of early death. Thats from a new study from Johns Hopkins university. Patients who are hospitalized just ones for severe hypoglycemia were twice as likely to die from any other cause than diabetics. Seattle seahawks defensive end Michael Bennett says that he plans to donate his 2017 endorsement earnings to charity. He said he was inspired by chance the rapper who earlier this week pledged 1 million in donations to chicagos public schools. That is the news update this hour, guys. Ill send it back downtown to you. See you next hour. Thank you, sue. Lets send it over to seema modi. I want to draw your attention to shares of finisar. They missed on fiscal Third Quarter earnings. The maker of Communications Application component citing unexpected softness in china on weaker demand and technical problems. Now keep in mind despite todays 22 move to the down side, shares are still but 91 over the past year but, wow, a big mover in todays trade, kelly. Thats for sure. Seema, thank you. Now most people dont think about amazon when it comes to shopping for clothes. Really . But according to data from slice intelligence. Amazon listed the most sales among millennials. The commerce giant accounted for 17 of all online sales to this demo. Nordstrom and old navy were the top three. Footwear figures were not included in the top findings. Ive ordered shoes from amazon. I order shoes all the time. But you dont need to try stuff on, i guess, when youre shopping for clothes online . You know, its an interesting question. You can always send it back. What is it, the return rate, is that still 40 . Its high. Its not that easy. You can send it back. Its a little bit about once you know what you want, what you like, its so much easier to go on amazon, get it there, i do it myself all the time. Its not just clothing where amazon could be a big winner. Our next guest says the companys voiceactivated device alexa could eventually bring in 10 billion in revenue by 2020. That would be mark mahaney. Were talking real money now, mark. Well, it sounds like real money. The fact of the matter is on that revenue base that amazon has, that would still only be 5 of their total revenue. We have a product out in the market that we think is gaining a lot of traction from two surveys weve done. Whats happening in the intervening time is weve seen Brand Awareness for alexa devices to go from 30 up to 70 . The number of u. S. Internet households that claim they own one of these devices has gone from 5 to 13 . Its almost tripled. This is just v1 of the device. You know the devices will get better. Were very intrigued by the possibility that this could be a material new revenue driver for amazon. Are we talking 10 billion, is that just for people buying alexa or is it the ancillary products that they can buy through alexa, as well . Thanks for setting that up, bill. I think half of that are the devices and half of that will be add on shopping services. So what weve found is that about 17 of people who use the alexa devices use it also to do additional shopping. The biggest win is when the device is in the kitchen, you say, alexa, order. Thats the big win. Amazon first needs to build that but i think thats where all of the incredible shopping will be. The last thing to think about is alexa, if it were to get to 100 million installed devices, thats what you need to be a platform. There are other platforms when you think of apple platform and google play, then you can think of incremental burdens. People who have had an alexa or any similar product from competitors, its fun at first and they dont have anything to do with it . How quickly does amazon have to have this. Ill give you a different point of view on that. What we found is 50 of alexa users, we sur vafd 2,000 couples in the u. S. Theres no sexy killer app. People use it for music. Thats the leading app. Alexa, give me my news update. Alexa, give me my traffic conditions for today and tell me what the weather is tomorrow. Its really utilitarian as a product. Thats why its going to stay in the pan tris, bedrooms and living rooms. People are going to get wedded to these devices. The features and function alzheimers are going to improve. We looked at the google home product. Yeah. How much home share do they give up to google home . Well, you know, i do think, bill, its so early stage that were just creating a category. The google home only got introduced in the market in october. If youll recall the super bowl, the super bowl add was for that. The companies are educating consumers about the devices. Im sitting here on a precipice of a big wave and well wait to see if apple gets more involved or gets involved. The my guess is you will. Sz it bullets and more and more ap apps. This is year one. How expensive do you think it will be for amazon to build out a grocery Delivery Business . Its extremely expensive. Amazon has a long track record with this. They spent 7 years developing amazon fresh in seattle and only in king county seattle. Part of that part of the city and before they expanded it to a few other areas this is a very expensive. The logistics behind this are elextremely challenging and complex. They require a massive amount of scale. To put a number on the investments is very hard to do. Theyre making a big dent in london, san francisco, and the fact that they keep repeating it in more cities tells you theyve probably found the right financial formula. Good to see you, mark. Thank you, bill. Mark mahaney from rb capital management. I start doing the dinner. Springstein . Sometimes springstein. Most often rolling stones, as a matter of fact. You cant always get what you want. Get what you need. Coming full circle. Dow is up 56 points, s p up 8, nasdaq up 23 and the russ willing up 6. If you think the markets been on a role, take a look where the art market sales are up 50 . Were going to look at the art worlds bigger losers next. Facebooks goal has been quick to add more livid yes and today it has landed another pro sports league. The deal and the impact on television coming up. Miles per hour. Is travel0 to win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. So beautiful. What shall we call you . Tom name it tom studies show that toms have the highest average earning potential over their professional lifetime. See . Uh, its a girl. Congratulations two of my girls are toms. I work for ally, finances are my thing. You know, im gonna go give birth real quick and then well talk, ok . Nice baby. Lets go. Here comes tom 5 nothing, stops us from doing right by our customers. Ally. Do it right. Whoo look out. Were up 40 points on the dow right now. The s p and the nasdaq and the russell all slightly higher as well. Snap is trading down 3 right now taking a leg lower in just the last hour. Its now back below the opening ipo price of 24 a share. Snap started trading today. Lower in the last hour. If youre looking for investment beyond the stock market, the art world may be the place to turn. Robert frank joins us with a story of an art comeback. Big comeback. Really sudden. The big art sales in london over the past week raking in over 800 million showing that wealthy collectors are feeling confident again after about a year of decline. Sothebys had a strong week about 428 million in sales. Thats up 60 . 64 from last year. Now their top seller, lets take a look, this was the gusta gustav klimt. Then we had Gerhard Richters painting. Christies doing well. Paul gauguin sold for 24 million. Then we had peter doig, that went for 15. 5 million. As always in any market, winners and big losers. Russian billionaire sold this rothko painting for 13 million. Sounds good but he bought it for 36 million in 2008. He lost 150 million in five works that he sold through christies which is why hes suing his art dealer for fraud. Sothebys taking a break. With the art market typically moves a little more slowly than the stock market. Theyre almost in lock step right now with the sales starting out right when dow hit around 21,000 and a lot of that wealth carrying over to collectors saying, look, im richer now. Im going to buy more art. Quick question. Is rothko in a bear market . No. Is that whats going on with that . No. Just bad timing . He overpaid. Its not a great rothko and he vastly overpaid. Generally good rothkos big demand. I like that iceberg one. Lovely. Photograph, isnt it . So wheres the money coming from . Is it asia still . What was encouraging for the auction houses is that the bidding was coming from china, from the middle east, from europe, from the strong from the u. S. And latin america. So were still seeing a lot of global breadth out there. Not as much from the middle east and russians. There were a lot of bidders from almost all of the usual suspects. Going into may which is the big selling season here in new york getting sellers finally losening up on big products. Christies has a Francis Bacon that could sell for 70 million. Its a really good sign for the big may auctions coming up. Thats where the big money is spent. Thank you, robert. Cool. Bringing us up to date on the art market. Lets get over to seema mody. This time were going to look at the Virtual Currency bitcoin touching a record high. Bitcoin briefly breaking above 1300 ahead of an important s. E. C. Decision on a rule change that would clear the way for bit cohn etfs to list on be the u. S. Exchange. The deadline is tomorrow but were expecting the s. E. C. To potentially put forth some type of announcement today. This announcement would be around the winkle boss bitcoin. More to come. This is in anticipation of things happened yet, seema . At this point nothing has happened. But the fact that weve seen this big run in bitcoin, i should point out it is up 25 already in 2017. A lot of this rally, analysts say, has been predicated on the expectation that the s. E. C. Will open the door on the bitcoins to list. Pressure is on the s. E. C. Now. Right. Thank you. About 14 minutes to go here. Watching gains in the market. Back above 20,900 on the dow. The s p is up 6 points. Nasdaq and russell about 1 3 of a percent. We have the Semiconductors Trading earlier. The highest level since 2000. As you know, latin may be a dead language but not to david darst. You should hear him speak in latin. Todays market acronym has latin roots. Its very much alive during the trump rally according to david. Hell explain when we come back. Say carl, we have a question about your brokerage fees. Fees . What did you have in mind . I dont know. 4. 95 per trade . Uhhh. And i was wondering if your brokerage offers some sort of guarantee . Guarantee . Where we can get our fees and commissions back if were not happy. So can you offer me what schwab is offering . Whats with all the questions . Ask your broker if theyre offering 4. 95 online equity trades and a satisfaction guarantee. If you dont like their answer, ask again at schwab. About ten minutes left in the trading session with the dow up 41 points. Art cashin points out the market shows an imbalance to the sell side of 400 million. Dow still about 42 points. Some of the stories moving markets this friday. Stocks off the highs of the day and off the lows, thats for sure. Initially rallying on the heels of this mornings jobs report, but they have since backed off. Oil continued its slide down over 1 again today. About 9 for the week. And real estate, that sector has lagged most of the day as well as we were discussing at the top of the hour. Joining us now is independent Investment Consultant david darst with his latest weekly acronym, verna. It has the latin word for spring in it. I dated a girl in High School Named verna. She had a spring in her step. I had a conversation with her. She said to say hello. Im glad shes doing well. V is valuations are extended. Mt. Everest has base camp 23. Base camp 4, 26. We are probably somewhere between base camp two and three. Were up there. So you have to be careful walking around. Priced to book. Priced to sales. Schiller price earnings ratio. Ten year average. Evaluations are extended. Ve. Europe. Let Marine Le Pen win on april 23rd, the first round. It will sell off. Everybody will get crazy. Then buy europe. Very cheap valuations. Earnings growth, better than the u. S. The u. S. Is going to be robust this year. Shes behind in the polls. She is behind in the polls. So was brexit and so was trump. I know. The r is recovering earnings. We have the jobs report, housing, weve got automobiles, weve got consumer confidence, we have average Hourly Earnings up 2. 8 year over year. All of the industrial production. The empire state, philly fed well get them next week. Chicago purchasing management index. So the profits are supposed to be up 10, 11 this year. The market even though the atlanta fed gdp number right now the forecast is for only 1. 2 for the first quarter. First quarter. N is the nonfarm jobs report. Its not just the 235,000, its the Unemployment Rate down to 4. 7. Psychological impact there. It is the average Hourly Earnings and the u6 which is a larger unemployment report. Right. Is down to 9. 2 . So strength and tightening in the labor market, okay . Not the thing that was also encouraging about it. People coming into the labor force. If you can have people coming in and the wage numbers going up and the broad unemployment numbers coming down, its better than if it was a narrower subsection. Confidence coming back. Thats a big part of the equation. Be careful. I think you can buy europe on any selloff. You can buy some of these oils and oil services with the selloff thats accompanying the sharp decline in petroleum prices. Asia, japan you can buy. That leads you to asia, the a in verna. There you are. Chinas 19 Peoples Congress is two weeks. Le kachan and their janet yellen said theyre going to keep things on a very even keel. Thats a good thing. Worlds second largest economy, stable, steady as she goes. That can allow the market to advance further. But we are extended in terms of valuations. It was sort of weird Central Bank Transactions where theyre trying to sell ford so they dont deplete the reserves. You worry, is there more pressure building than we can see. I think, kelly, thats an adequate concern. You have high debt levels there. You have really the structural reform that really stepped on the accelerator again to do the things that theyve always done in the past. We havent seen that. I think, i hope that if he gets reconfirmed for the next five years he is attempting to take his number one j. Edgar hoover, the person that prosecutes and puts people in jail, hes trying to basically if he can get him beyond his 68 year mandatory retirement age, that means he might go for it as well. And that would, i think, be a positive thing for stability and the economy out there. And the world at large. Always a pleasure, sir. Thank you. The quote for today, i sing of arms, men and women. The multilingual david darst joining us once again. Thank you. Great stuff. Happy st. Patricks day next friday, everybody. I guess we know where hes going to be, and it wont be here, apparently. Well come back with a closing countdown in a moment. After the bell, todays jobs report were strong but there were dark clouds over one particular sector, and its retail. Well see if retail can rebound. Youre watching cnbc first in business worldwide. Oh. Not the smooch method come on. Whats going on here . You know how Ge Technology allows us to fix problems before they. They slow production, yeah. Well, no more catchy business acronyms. Wait, we dont need to smooch . Im sure we can smooch a solution we just need to hover over the candice, problem until. Just let it go. Hey, sorry im late for team building. Smoooooooch that felt right. Whats wrong with you . Hes so trusting. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com about 2 1 2 minutes left in the trading session. The market of the week has to be oil. The price of oil back below 50 for the first time in 3 1 2 months. Now everybodys wondering what the new support level is. For what its worth, the most recent low for the price of oil, wti, was about 46. Well see what happens there. Now put a chart with the dow. You add that to the Oil Price Chart and you see a correlation here, especially latter part of the week as the dow started to go lower with the price of oil. That seemed to be what was calling the shots late in the week. Art cashin was talking about that. For the dow itself for a time this was going to be the worst week of the year for the industrial average. Weve come back a little bit here, but thats not by saying much. Only down half a percent in that time. Ten year, it challenged 2. 60 , the number everybodys watching right now that bill gross put on the radar screen. Backed away from that but we get ready for the fed next week. Courtney ragan, everybodys expecting them to raise rates on wednesday anyway. The laggard today, ill give you this softball, retail. Retail stocks. We got some weak numbers out of the Retail Sector. The most disappointing from that group in 2012. We know retailers are Closing Stores so thats not a big surprise. There are some bright spots, bill. I have to point that out. Look at ulta. Thats an outlier, isnt it . It is an outlier but it is consistently an outlier. Its not a blip on the radar quarter. He este lauder and you have islips face. The e. L. F. Brand that ipoed. Up 14 or so. There are some bright spots in retail. We had reason to worry especially if the department is going from the Department Store sector. We didnt get offset from the warehouse jobs from the folks fulfilling the online jobs. Thats where i see it. Very good. Thanks, courtney. Thanks, bill. Well welcome bob pasani back. I didnt break anything. No, everything is perfect. Were going out with a gain of 45 points on the industrial average. Ever take with the nasdaq. Well wrap things up on the second hour of the closing bell with kelly evans and company. Have a good weekend, kel. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. Heres how were finishing up the session and the week. 48 points on the bell. The other averages did better relatively speaking. That took the dow to 20,906. Back above 20,900. Still posting its first weekly loss. The broad market a gain of 1 3 of 1 . 2372 for the s p 500. Its first weekly loss in seven weeks. The nasdaq up. 4 of a percent. 5861. The russell 2000 up the same amount, 1365. We did close off the highs of the session. Dow is up 82 points after the payroll report. Now the Brookings Institute is out with new analysis. American health care act. Claiming at least 50 Million People could lose their Insurance Coverage. The coauthor of that will join us along with larry kudlow who says it will be far fewer. That debate is coming up. Joining me on the panel this hour, cnbc senior contributor and pro columnist, michael santoli. Evan newmark is here and charlie checks in from ariel investments. We have jobs, we have oil. Too much of the latter maybe because the oil prices thats right. I think it was down 9 this week. And the markets as a whole focusing on the former. The jobs report certainly strong but not too strong. I think the markets got priced pretty much right for it. Confirms this picture that we pretty much knew was in place. The economy is in a pretty good spot. The big question is how much is the market already accounting for that in this 14 move since the election. Thats what we dont know. March 1st you had the high for all of the equity indexes. On the surface its been an und undertow. Is it like september where we saw this action and didnt have much more down side from here or did we finally get some deeper pull back . Honestly, i think thats pretty much an even call. I like reflecting on the fridays. You look at the price action and the reports this morning, good reminder, the dow is down first week in five, s p down first week in seven. I dont think there was anything to tweak, even the price of oil that a bear, if you were heavily baeriearish. Insider buyer versus selling . Yeah. Probably hasnt been very much insider buying for quite a while. I think at the last selloff about a year ago, you know, close to jamie dimon low or whatever it was called there was probably some insider buying, but youre not going to see with prices up where they are a lot of insider buying right now. The one thing id say about the oil market, i would not look at the price action and say thats a tell. This is a great question. Great topic. There is basically a price war going on between the u. S. Shale producers and opec and opec cut back on their production and the shale producers are finding financing for them to go forward and so youre going to continue to see this tug of war. I dont think the glut that you see in supply is because the Global Economy is slowing. Charlie, this is exactly right. Plenty of people could say oil proxy for demand, its going south. Thats not a good sign. Its hard to deny the evidence piling up everywhere that there is an unbelievable amount of supply in this market. That is true and i think thats going to be the one offset to a bigger trend, which is inflation. Lower Energy Prices are going to moderate inflation, but i think the big story today was that 2. 8 increase in wages from a year ago. We are finally starting to get really hard to deny evidence of inflation. Weve got much tighter job market, weve got drug prices up 7, 8 . Weve got rental prices up 4, 5 . Youre going to have tariffs on the borders. Weve got a lot of things that are pushing towards more inflation, including competitive devaluations of currencies a right hand the world with people trying to improve their manufacturing status. I know. I think thats an excellent point. In fact, this morning jim cramer asked chair jerry cohn if thousand is the time to issue a 50 year bond. We have under invested in our infrastructure for the last 50 or 60 years in the United States. We have enormous opportunity right now. Jim, we can issue enormous debt in the 50 year, 100 year segment to finance debt. Im not sure how much debt we need to finance. Theres an enormous amount of capital looking for Long Duration assets in the United States. So he left the door open to it. Yeah. The idea that the rates are going to go higher, you lock it in now. This has been a discussion point for the last few years. You know, its always been my view that this white house does not care about deficits. Im talking about gary cohn, Steve Mnuchin and donald trump. They dont care about deficits and as wall street people, people who are used to financing, their mind set would be we can issue 50 or 100 year debt super cheap, why wouldnt we do it . I think that is their mind set. It will be interesting to see where that debt actually gets priced at the end of the day. If you could issue 100 year bond with a 4 coupon, thats probably something youd rather do. I see it as different questions. One is do you take on debt for longterm investment in infrastructure . Thats one set of questions. The other one is should the treasury hit the markets bid and issue megalongterm debt to lock in todays low Interest Rates. That question i would say absolutely not. Every time people kind of know about it, look at it, say lets not dramatically change it. Theres a bunch of guys who say no. We actually have more demand for shorter term debt. Heres the thing. The treasury borrows every year to fund the short fall in revenues. Its not as if you borrow this year i dont have to borrow next year. You have to borrow next year. Youre taking on higher average costs annually of debt. Youre saying do it all on the short end and pick it up for 2 . Not all. They have been lengthening it. Youre not going to issue a ton of 50 year debt thats going to make a difference. It all depends, this whole discussion depends on your view of longterm growth rates. Its totally a function of how strong you think the economy will be. The treasury has resisted this idea of making a longterm call and where borrowing rates are going to be. Charlie, what do you think . The one thing we can debate whats in the best interests of the government but i can tell all of your viewers, do not even think about buying a 50 year bond at 4 . That would be a disastrous investment. Right now my advice is go home, sell every bond you own with a maturity of more than three years. Wow. Because Interest Rates are going to go up. When a ten year bond Interest Rates go up by 1 , the value of that bond goes down by 8 or 9 . Yeah. If we get the 200 basis point move that i think is going to happen on the ten year, youre going to lose 15, 16 of your money. Lets get to breaking news on bitcoin. Coming out now. Seema mody, what did the s. E. C. Decide . Disapproving the request for a rule change that would have effectively allowed the bitcoin e. T. F. To list on the b. A. T. Exchange. It throws cold water on two other bitcoin that were looking to list on the new york stock exchange. The sec issuing this order disapproving the request for a rule change that would have allowed that wrinklevos trust to list on the b. A. T. Exchange. In response, we are looking at bitcoin, the Virtual Currency down about 15 . This, of course, after hitting a record high this morning on anticipating that the s. E. C. Would approve the etf request. The Virtual Currency falling here, kelly. Seema, thank you. Wow. Its giving back 2 3 of the im not touching bitcoin. Im not touching either snap or bitcoin. Is it fair to lump them together . Not necessarily. You kind of could in lots of ways but i dont want to get into that debate. I think the argument that charlie was just having about what your prognosis is for inflation, that is the key question. And its one that you know ive been wrong dead wrong for a good two you could go five, six years for ten years everyone has been saying the Interest Rates are going up. Every discussion about whether the treasury should issue bonds, whether you should buy bonds, whether you should buy stocks, it really comes down to what you believe the prospects are for Economic Growth both here and globally. The jobs report did come in strong this morning. One area of the economy that was lagging a bit is retail. Joining our conversation heres cnbc senior e con reporter Steve Liesman and courtney ragan. This was the big dud in the report this morning. I mean, you know, its not a great sign. Yeah, exactly. So overall that jobs report was really good. I know steves going to talk about that, but the retail part was really not so nice. Down 26,000 in those retail trades jobs in the month of february compared to the prior month. We did see the prior month gain 40,000 and so i guess if you look at the two months its not so bad but within that 26,000 loss in february you see the losses in the Department Stores, in the general merchandise stores, in the Sporting Goods stores. Weve heard a lot about these stores that are closing. We know macys is closing some 63 stores by early spring. Sears closing 150 in early 2017. We know h. H. Greg filed bankruptcy and are closing some stores. We have some factors at play that may be showing up in the numbers. The one part that i didnt like, kelly, is the downtick that we saw in the warehouse jobs. Thats actually outside of the Retail Sector somewhere else in the transportation and logistics but thats where those jobs come into play for those folks fulfilling your online orders. Thats the area of retail were supposed to be seeing growth even though we know theres some automation so that was particularly troubling to me. That was bizarre. The warehouse commercial property space is on fire. Steve, heres what i was going to say to you. If nothing else, grim and tough as it is for retail, at least its happening in a strong jobs market, right . Its not like its happening while the rest of the economy is taking as well. Theres some transitioning taking on there. Its a very, very wrenching transition for the employees as well as some of the shareholders that you saw in the stores that were shut down, macys. Youre making this transition. Im not necessarily seeing weakness in the consumer other than perhaps a seasonal thing adjusted to the late tax returns that are coming out this year a little bit later. Tax refunds. So the key i think youre saying is right is that job markets pretty strong. It doesnt look like what were seeing here in retail is a problem when it comes to the actual spending by the consumer. One area of strength worth noting by the way is moiktor vehicles. Thats doing well for whatever reason people are buying cars and theyre adding. I dont know how much that is able to absorb the losses. People are moving from one sector to the other. With the efficiencies going up the number of jobs are not going to be the same. True. Ev evan, that goes back to everyone figuring out how strong is this economy . It will be weird. There will be certain sectors not that it will be repeats of retail but the effect that youre seeing in retail will have in finance. By the way, you see it already in new york. New york rental prices. You see what happened on wall street. Bonuses. The age of explosive wall street employment hiring. Even in a good bull market thats not going to happen again that way. Those jobs are also going to disappear. We need to convert. They need to convert those malls into condos. I want to see evan living in an old victorias secret store. Yeah. That could be happening. Weve talked to a lot of people that said theyre trying to figure out the most appropriate way to sort of reimagine that real estate and thats not beyond the realm of possibility. Above malls or in malls. I was in sarasota when they tried to do that in the center of town. Its not easy. Once the malls get emptied its very hard to find another use for them. There are creative people doing interesting work, thats the big story. Putting Grocery Stores in them, michael. Theyre good for film sets for dystopian movies. Its like logans run was filmed in a mall. Theres a Public Company that spun out of sears, seratage. Theyre doing gun ranges, for profit colleges, health clinics. There are things you can do. I was in a mall yesterday and there was a time warner cable, i guess its now spectrum, which is right there in the mall. There were a lot of people in that store. Charlie, what about you . Would you be buying seratage here . Hard to say. No. I just sorry to make a digressi digression. One thing i want to talk about is correlation of stocks is going to start to get much wider and so i think youre going to see effects like retail be very hard on reads and Interest Rates being hard on reets. A lot of these are owned by reets. What youre talking about in retail, its going to be very hard on that space. Inflation will be good for Certain Industries like materials, farm land. It will be very bad for the bond substitutes of which some of them are affected by whats going on at retail. Some sternal warnings this afternoon. Thanks for joining us. Steve and courtney as well. Have a good weekend. The Health Care Reform battle rages on. President trump met with members of congress to press his case for his obamacare replacement. As a new report says 15 Million People could lose coverage if its put into action. The man behind that report and our larry kudlow next. And echo boomers are taking over the economy. If youre not sure who and what they are, we will explain coming up. Youre watching cnbc first in business worldwide. Congressional heavy hitters making their way to the white house this morning in the name of Health Care Reform. Eamon javers is watching that. Reporter thats right, kelly. A couple of things to bring you up to speed on from here at the white house. One is the white house reaction to the jobs number. They are very pleased with todays number, but i had a chance to ask sean spicer in the briefing given that the president has been skeptical of jobs numbers in the past when they were good for president obama he accused them of being phony and fictional. I asked does the president believe todays number is a real number. Heres what he said. I talked to the president prior to this and he said to quote him very clearly. They may have been phony in the past but its very real now. Reporter so spicer there essentially blowing off the president s previous criticism of the bls and the jobs number process saying that they believe here at the white house that this number is very real now. We also did hear from the president today talking about health care. He was in a meeting with some of the key members of Congress Committee chairs to talk about progress on that legislation. He said 2017 is going to be a disaster in terms of obamacare. Heres the president. 17 would be a disaster for obamacare. Thats the year it was meant to explode because obama wont be here. That was when it was supposed to be. Even as bad as it is now, it will get worse. Choices are disappearing as one insurer drops out after another. Reporter also another piece of news here. This from the attorney general Jeff Sessions. Putting out a statement a little while ago saying that all president ially appointed u. S. Attorneys have now been asked to resign. Heres the statement from Jeff Sessions saying the attorney general has now asked the remaining 46 president ially appointed u. S. Attorneys to tender their resignations in order to ensure a uniform transition until the new u. S. Attorneys are confirmed the dedicated career prosecutors in our u. S. Attorneys offices will continue the great work of the department. Now, kelly, this is something that is fairly standard when you have president ial change of administrations. The career folks stay on. The president ially a pointed folks, the political folks as theyre known tend to leave. One of our questions though is whether this applies to pare pareet barrara in new york. Hes a famous figure. In november he went to trump tower, had a meeting with the president , emerged from that meeting and suggested that he had been asked to stay on. He said that the president asked him to stay on and that the incoming attorney general, Jeff Sessions, had asked him to stay on. We have asked for comment to the sdny. Weve also asked the department of justice for comment. No word on whether he will, in fact, be leaving here. The white house refers all questions over to the department of justice, kelly. Eamon, a great point. Hes a major figure in these circles. Eager to see what happens. Thank you. The Brookings Institute with a post based on the cbos estimates or what its expecting it to come out with, at least 15 Million People will lose coverage under the American Health care act by 2026. Joining us now is matthew feedler from brookings. Hes coauthor. Larry kudlow is here with us. Matt, let me begin with you so were all clear. This is your expectation of what cbo is going to say . Thats correct. So what my coauthor and i did, everybodys waiting to see what cbo is going to say next week and what my coauthor and i did is look back at prior cbo analyses of proposals that are part of this legislation and other similar proposals to come up with an expectation of where cbo is likely to come out. 15 million is your number. This is the number of people that would no longer have access to the plans through the exchanges . No, this is the number of people who would not have Insurance Coverage economy wide if this were enacted. Because of what Different Reasons . So there are sort of three major components of this legislation that would lead to significant losses in coverage. One is substantial reductions in coverage for state medicaid programs. Second is repealing the individual mandate. The third is a variety of other changes to the private Health Insurance markets including changes to the aca subsidies and a variety of other changes under the bill. Im going to bring in larry now. Hes already shaking his head. Well, look, no disrespect to matt or brookings or the cbo. The cbo made wild assumptions when this bill first went through, i mean wild assumptions. Isnt this their job though, to make wild assumptions. For one thing, they finally came around and admitted that obamacare was going to cause a loss of jobs, 2. 5 million. That was a big change. But they over estimated the people buying insurance on the exchanges. I just want to put this in play. They originally said 22 million by the end of this year. The actual number was about 10 million. So thats a wild estimate. Completely wrong. I dont think we should count on this. Look, let me say this. I think that 4, 5 million may choose, under score that word, choose not to take the new health care. I think thats possible. And i also want to say that i like the ryan bill. I could live with it. I think the high end income people, thats a flat tax credit up there, up to 150 k for marriage filings. I think this is too much. I think the low end people who will get refundable tax credits. Which means cash. I would give them more. I would give them more. And then regarding the other point, sick people should not pay the same premiums as Healthy People and the u. S. Government or the states should cover the sick people. In other words, be transparent. Is that the medicaid piece of this . No. It would allow these people to go out and shop around for their own plan, not go into medicaid. But my point is this. U. S. Is a generous country, all right . If youre sick and you have problems and its a steady issue and you cant afford it, we will give it to you. We will just give it to you in the form of a tax credit or a health food stamp or Something Like that and let them shop around. I think that would be very helpful to everybody. So, matt, heres the other question as well. The estimate youve put out is for the number of people who would lose their insurance in year one. Does it take into account some of the dynamism that larry is talking about. Lets say the price comes down in the private market, more people are able to buy coverage in year two or year three, for example, is it possible at all to make admittedly assumptions and start to look out for the effect in those years . So id just like to clarify that in fact the estimate is for 2026. So its the end of the tenyear window that cbo will use in evaluating this legislation. Its the long run effect. To go back to one of the questions the things that larry raised about, you know, whether cbo was off the mark in projecting the effects under aca, hes absolutely correct that cbo over estimated the number of people who would have coverage in the marketplace but they were in fact very close on estimating the number of people who would gain coverage overall. One of the reasons for that is its often much harder to tell where people will gain coverage rather than that they will gain coverage at all. But whats important for policy makers and for people is the number of people who have coverage, not necessarily where they get it. Matt, again, with respect youre talking about including youre talking about including medicaid. You see, this could have been relabeled from obamacare to medicaid care. Thats the big winner. Yeah. People were thrown into medicaid which has the worst provision of health care services. Whatever. Needs to be changed. Were going to put a lid on that hopefully and give the states a lot of flexibility on how to change that. But im saying this, in terms of getting rid of mandates, okay, that is going to free up people. The healthy will have a lower premium because they wont have to finance the sick and the ill. Theyll have more choice eventually crossing state lines, Health Savings accounts, you name it, and i think actually their enrollments will go up, not down, once they see the choice and the lower the lower premium. Let me just ask you guys this quickly and then we have to go. Theres so much focus on the body coverage and the count. The whole point was to expand it. Now its a little bit different. There are people who had coverage through their employers who were dramatically affected by obamacare. It was never part of these figures. Does that need to change . Is the number as important now as it was eight years ago . I think the number is important in terms of creating the political incentives to vote for or against something. Right now larry you can call it choice. Those people whose constituents they are, those people who might vote think thats loss of coverage and no matter what the reason is, theyre not going to feel like in the press, in the publicity that comes into this bill, thats where the arguments have taken place. Thats a very nonmarket analysis. Youre a market guy. This is a congress were talking about congressional dynamics. The congressional guys are covered by a fabulous plan that they wont let other people have by the way. Absolutely. Thats my point. I dont think that Congress Folks are interested in running a market experiment. They want to do the minimum possible to take credit for something. A 24yearold who is healthy and bullet proof as we all were at 25, that was last year for kelly. Hardly. Bullet proof 24yearold does not want anything. I accidentally didnt have Health Care Coverage for a year and had to pay we had this discussion. Youre free to schooz. Real quickly. Larrys problem is because you have these preexisting coverage conditions, because you have the dependency provisions the republican thing is its not a Market Driven solution. Listen to what i just said. Regarding prior conditions, sick people, this government, United States should be generous enough to just give them the cash, give them a voucher, let them shop around. Get on to tax cuts. Republicans never do that. They should. We will pay for your health care. Why not . Its a generous country. Put it on a poster. I like it, larry. Larry kudlow joining us. Matt, appreciate it. Thanks for having us there. Well find the cbo number next week. There is increased deployment in the Defense Sector as the president promises to beef up the military in general and the navy in particular. Kate rogers has more on pass ka gul la mississippi. Huntington ingalls ship builder. Reporter President Trump is vowing to rebuild the military in a really big way. Here at Huntington Ingalls which is the navys largest ship builder theyre recruiting them by the millions. They pick up after years of slow growth due to the government sequester. If donald trump keeps his pledge they expect more business and more jobs to follow. It will be one of the greatest military buildups in american history. Reporter from land to the sea to the sky President Trump is promising to beef up American Military to the tune of 603 billion. That marks a 54 billion budgetary boost in defense spending. Talk of a potential boost has the industry feeling optimistic. If you look at what the president has proposed or at least discussed right now, a pretty significant expansion of military procurement as well as manpower is probably in store. Reporter military Ship Builders like Huntington Ingalls, General Dynamics and their suppliers are among the top beneficial beneficiaries as President Trump plans to grow the fleet to 274 ships. The largest buildup since the cold war. If that does come to fruition, certainly those companies, both the ones building the ships and actually the ones supporting the construction of those ships, would have to expand significantly. But, first, the president needs to get a buy in from the divided congress. I think its going to be difficult for him to get what he wants so there is a fight coming. Reporter trump, of course, has repeatedly called on congress to lift that defense is he see quester. If that follows through companies will stand to benefit. Huge ship. Beautiful, too. Kate, thank you so much. Our kate rogers there. What was it, pascagoula. Time for a cnbc news update. Hi, sue. Kelly, heres whats happening this hour, everybody. California plans to allow testing on public roads of Driverless Cars by the end of the year. The States Department of Motor Vehicles is seeking Public Comment on public regulations for driverless testing. In his first appearance, Minnesota Governor Mark Dayton says he is cancer free. He had the surgery last week. After massive surgery is done. The Important News i got, absolutely clean pathology report. There is no evidence of any spread of the cancer beyond the prostate, which was entirely removed. So thats the part that really matters for the long run. And we wish him the best. The chicago cubs agreeing to a record one Year Contract with National League mvp kris bryant. The 1. 05 million is the record for an unsigned player with less than two years of major league service. Youre up to date, kelly. Have a great weekend. Thats the news update. Thank you, sue. I was going to ask you if you have anything on this baseball guy . Hes a bargain. The reason you can pay him 1 million is because he has little service. You had to lock him up. They had access to him but you have to have good faith for when you want to eventually sign him as a free agent. Understood, sort of. Back to court for jon corzine. He takes the stand again in a trial over whos to blame for mf globals 2011 bankruptcy. Well go live to the courthouse after this. Back in with his pa. What . No. I just broke my leg. No, this is a full blown move in to the basement, youre gonna be out of work without that money from. Aflac you might miss your rent. Aww i just moved out. Bummer man. Hey i used to have my own place. Yeah . No, no i live with my mom, but its cool. Health can change but the life you love doesnt have to, keep your lifestyle healthy with. Aflac oh the things you say oh youre unbelievab e youre unbelievab e 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. Welcome back. Bitcoin after the market closed the sec ruled that the bit cohn etfs could not move forward. Its a setback for bitcoin etf. Still the price of bit cocoin l rivaling gold. Is there any liquidity. The underlying markets for actual bitcoin are unregulated exchanges. Theres no way for them. Showing up there. The price is moving up in that case. I dont know why they dont make it synthetic. 26yearolds are taking over the economy. As baby boomers retire we are likely facing an economic reset. God for bid. Then facebook scores another pro sport in an attempt to boost its livid yes presence. When it means for the social media titan and teaming sports coming up. 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And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. But they didnt know they were all tobacco products. E. Ooh, this is cool. It smells like gum. Yummy this smells like strawberry. Are these mints . Given that 80 of kids who ever used tobacco started with a flavored product, who do you think Tobacco Companies are targeting . Do we get to keep any . Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Welcome back. We ended the week on a positive note. It wasnt enough to change the fact the dow was down for the first time in five weeks. The s p down for the first time in seven weeks. There again the dow added 45 points. Today the s p was up 7, the nasdaq up 22 and the russell up 5. There are currently 4. 8 americans 26 years old. Is that exactly 26 years old. As they land good paying jobs, purchase homes and raise families, they will change the complexion of the economy according to our next guest. Bill smeed, the founder and ceo of Smead Capital Management as well. You mentioned the 26 number is the biggest number. If you look at every single age year 35 right down through 22. Its 30 more people than that same age was 10 years ago. Wow. As that pick moves through the python the next 15 years, youre going to want to be in the way of that. That means 35yearold households with two kids not single People Living in expensive metropolitan areas. You would be long the house with kids and everything that supports that trade and short the urban apartment one . We have the fewest homes for sale divided by population for 50 years. For that matter, maybe its as bad as it was when people crossed the oregon trail and there werent any houses at all. All right. How would you analyze the situation . I think weve got a lot of attention to the baby boomers for many, many years. This is a drag on growth. Were all doomed. Things are going terribly for productivity, gdp. As they retire . Absolutely. As the echo boomers, millennials, 26yearolds start to get married, jobs, start to save for retirement and start to pay taxes it has a number of ramifications for investors across the board. The longterm themes are critical. What does it mean for Interest Rates . When you balance the baby boomers save money you should see some of the worries about the baby boomers should be selling their assets as they retire or as the echo boomers will begin to save so its an offsetting effect. The baby boomers retire and the echo boomers buy the assets. I guess i wonder if its strictly an offset. I guess im thinking back when the baby boomers were at a similar age in the 80s. That was a tremendous broad lift. They were doing all of these things prime years of earning and everything else. Is it going to keep us steady or will it be a growth accelerant . The issue is the baby boomers die off faster than they stay alive. You meet those that say well have secular demographics. The children will start to come around. What are your best ideas for investing in this theme, bill . Are you talking to me . Yes. The the first thing i would mention is we have a very abnormal circumstance from a demographics standpoint and that is that people today that are 55 to 70 years old, you have loads of them on your show every single day. Many of them are taking over the truchbl administrati Trump Administration. Theyre working and spending money like 65 and 70yearolds never did before. Theyre much more active and spending more in the economy. Okay . Secondly, people have waited way longer to get married because they go to college, 65 of High School Grads go to college. Its unequivocally impossible for millions and millions of people to go through and buy houses and cars with borrowed money for the first time in their life to not have a major impact on the price of money over the next ten years. So the first thing you want to do is you want to buy houses. We own nbr and linar, major home builders, right . The second thing you want to do is visualize two people with two little kids stuck at home more. Wifi from comcast. 5yearold entertainment from disney and comcast is what its going to be all about. Lastly, the borrowed money or the financing or transactions will come from gbajabiamibank o and american express. Thank you for joining us. A more hopeful way to think of the economy. Appreciate it. President trump signing a new executive order on travel this week. It removed some existing orders. Cal perry is in westwood, california. Heavily iranian neighborhood. Hi, cal. Reporter hi, kelly. They call it tehrangeles. The biggest iranian population outside of iran here in l. A. 300 to 500,000 people. A couple of things to notice. The Nuclear Agreement, the Nuclear Agreement between the United States and iran, from a business perspective. Think of the airlines looking to do business from los angeles to tehran now putting that on hold. The second thing hitting this community very hard, iranian new year. Neruse is two weeks away. A lot of family members that come here yearly, come every year for the new years celebrations, this year theyll be stuck in tehran. Cal, thank you. Cal perry there for us in westwood, california, or irangeles i think he said. European sovereign debt helped bring down m. F. Global. Jon corzine defending his decisions and taking the stand today. Well bring you the highlight. Content is becoming king in facebooks video business. Social media giant is making a big streaming bet. Well tell you about it next. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com welcome back. Facebook is expanding its live sports content striking a deal with Major League Soccer and univision that will bring at least 22 English League games to the platform. The games are expected to be on mlss facebook page. Becoming a social media sports streaming war, twitter and facebook. Twitter has deals in place with the nfl, nba and nhl. Now in addition to soccer facebook is reported to be in talks with Major League Baseball which does some streaming of its own. Its getting crowded. It sure does. Obviously these platforms are in the business of trying to get more eyeball hours. I think this is a way theyre going to experiment with this passive viewing of real time, just sort of like have it on in the background type stuff. I also will point out, we poke fun, its just the streaming rights or its just soccer, not the huge big name sports in the u. S. Espn went on the air televising, you know, slow pitch softball and taped nfl games at some point. Comes down to the rights. The rights are the things that cost money. A lot dont come up. They cant get their hands on it. Not to promote my wifes company but i like where youtube sits in this whole space much better. Why . Because i dont like the idea of bidding against other people for rights. The value of the rents, the real economic value is transferred away from the platform to the content producer. Quite right. The interesting thing for facebook is theyre doing facebook live. Theres been some trouble, some crime. Two months theyre trying to figure out how theyre not sure, journal had a great piece the other day, that this is the future of their video content. If its not and you have to go to more traditional the whole thing, thats why espns struggling right now. Thats why the value of soccer in europe is skyrocketing. The value goes to the content producer, not to the platform. Netflix cant come up with their original content. Trust me, people bidding on the rights they have the Financial Model for how theyre getting a return. Its into the equally shared with the content provider but they wouldnt bid them up if they didnt have value. They might be getting desperate. Well see. Tell me if youre watching mlb on facebook. Its been more than five for thatter global chairman john corzine on the stand in court for the second day in a row. Leslie has todays highlights. Reporter thats right. It has been a lengthy day of crossing for john jurocorzine. He took the stand at 8 30 this morning and endured a lengthy seven hours of questioning. Lawyers were the ought auditors at the time of its dmis were the ones doing the questions. The focus was on the responsibility. That it should have had over the financial statements, as well as the risk profile of the firm. And corzine himself kept repeating that he was not an expert in accounting and that he deferred to outside experts, Price Water House Coopers for those types of decisions. The defense also tried to highlight an infamous report from october 2011. Where they showed their concerns and reasoning behind the down grade including low Interest Rates, volatile market conditions, global risk management, concern over their exposure to european sovereign bonds and price water house cooper said they had nothing to do with any of the reasons by which moody downgraded their rating. These bonds are at the heart of the case and whether to keep them off the Balance Sheet led to the confusion by customers he and investors which ultimately led mf global to file for chapter 11 bankruptcy. Corzine is set to return to court on monday. Where hell endure further crossing as well as a redirect. Was it bad trade in bad accounting . This one is not over yet. United technologies climbing nearly 9 since donald trump was elected. And the ceo discusses it with the president and how it could impact business, after this. During the lexus command performance sales event, experience our most refined models ever. Including the ls, lx and es. Experience amazing. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Termites. Were on the move. Hey rick, all good . Oh ya, were good were good. Terminix. Defenders of home. it just feels like anything is possible here in upstate new york. at corning, i test smart glass that goes all over the world. But theres no place like home. Theres always Something Different to do like skiing in the winter, jet skiing in the summer. We can do everything. New york state is filled with bright minds like samanthas. To find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. President donald trump has met with ceos during his first few weeks in the white house. And jim cramer has down to discuss the economy. The Current Administration has reached out to business in a way the last administration has never done. I think a chance to go to the white house to have your voice heard is very, very important. And i think the Trump Administration is trying to do the right thing to bring jobs back to america, to grow the American Economy and were certainly very supportive of all those things. Tfg full interview will be tonight on mad money at 6 00 p. M. Eastern. Talk about a guy who needs a Good Relationship with the white house right now. The defense contractors, it is important. After everything that happened with carrier as well. So much pressure to not ship jobs out of the country. To turn a potential adversarial relationship into one more constructive. I fee every ceo is trying to execute that move. I think the interest thing over the next few weeks will be whether the tailed wind that trump is getting with, whether thats translating into everything with policy implications or just like a feel good animal spirits. You just said 200 and how many thousand jobs . Eventually you run out of fuel for that. Unless you get a boom somewhere. A lot of it depends on defining your terms. Theres a little too much talk of literally bringing jobs back. Bringing the same jobs. It strikes me as skating to where the puck used to be and it is not that practical. If youre talking about having these Companies Take a little more risk in this country, thats good. Yeah. Maybe. The question is whether thats enough to get you to 3, 3. 5 growth. It will get to you 2, 2. 5. That takes us back to tax reform. If were going to do that, do obamacare first. Does it work . Does it have the support . What about markets . We turn to next week. I guess well get the rubber stamp from the fed and well see if that makes a difference. If theyre going to start to accelerate their talk of not just three but maybe more. Im not saying the 2. 6 on the ten years. The bond market has not thrown up, excuse the phrase, all over it. Well see. Have a great weekend. Thank you for joining us on closing bell. Fast money begins right now. Live from the Nasdaq Market site overlooking new york city times square. Tonight, a tough week for twitter just got even worse. Weve got the details on a new study that says bots are taking over the social media he platform. Plus, couldnt get a piece of the snap ipo . You are in luck. Well tell you how you can get paid to buy it at a discount. Who doesnt want that . Later this tech sector hitting its best. Weve