they still have to vote on final passage of the bill, then it will go to the house i'm told to expect that 4:00, 4:30, somewhere in that range. then the president will have to sign it. the white house said expect that late afternoon/early evening but there are already restarting talks on immigration even before the passage is final of that bill senator john cornyn, the number two republican in the senate, just told a bunch of reporters that he had a meeting at the white house on immigration with other senators like senator cotton, perdue, langford and grassley they were informing the president about what they thought could actually pass the senate on a bipartisan basis they said they put to bed graham/durbin, which was the pre-existing bipartisan framework in the senate and trying to work on what comes next this immigration debate is heating up as we now look towards the new deadline in three weeks. not only do you have that debate, which will be exceedingly contentious in both chambers here on capitol hill, but you also don't have the sweeteners, like children's health insurance or the delay of obamacare taxes to get each side on board then you have the introduction potentially of an even more contentious issue, which is the debt limit, which many republicans don't think should be extended or suspended for a day longer we'll see how that plays out first thing's first, we've got to get this bill through the doors of capitol hill today and onto the white house we'll bring you that when it happens. >> yeah, we'll see how quickly they can do that, kayla. thank you. for more on the shutdown, let's bring in sara fagan along with john harwood welcome to you both. john, let me start with you. is there any question what's going to happen with the house vote or does our attention just turn to these 19 days and can they get immigration done and then what happens next time? >> unless sara's heard something different from her republican friends in the house, i don't see anything that's going to stop this. i don't think mitch mcconnell would have brought that agreement forward if he didn't have some good understanding from paul ryan that even with the shorter time frame for extension than the house had wanted, that they're going to go along with it. now i think the question's going to be two-fold one, are they able to negotiate some sort of solution for the d.r.e.a.m.ers as part of an immigration package, as democrats have wanted. but then in addition to that, are they able -- if they don't have a daca deal, are the democrats going to go along with the higher defense number that republicans have talked about? because if they don't, you might have republicans who are opposing an extension of government funding when we get to february 8th. >> how do you think this plays out yourself it's an act of faith on chuck schumer's part to allow this vote bearing in mind that mitch mcconnell says they'll get something done on daca, but you is have all those conservative republicans who didn't like at all what dick durbin and lindsey graham came up with. i don't know what they'll be able to come up with that mr. please chuck schumer and the democrats. >> that's right. there is no issue that riles up the respective parties of the government one reason they shut the base down is because they're so angry daca hasn't bin fixed. they stepped away from that, but the issues don't change and, as you pointed out, you know, they've tabled the other bell. so, they're at the drawing board, at many democrats say -- and republicans say that they're making progress on this. here's the real issue, though. this is one of these where getting something in the senate, while difficult means getting it done in the house is harder. leadership knows fixing daca is the right thing. there's a high number of republicans that this doesn't do anything for them politically by supporting this. i think paul ryan has to bring up a bill that doesn't have a majority of republican support. >> and some democrats. >> guys, to sara's point, that's why getting president trump on the trump of side of some sort of a deal is so important. go ahead, kelly. >> i was just going to say i don't understand why the democrats decided today, you know what, forget it, we're just going to support this. what happened? >> oh, i think what happened is many of these democrats in conservative trump states were hearing from their constituents. you know, there are ten democrats up for election this year, this november that are in states trump won and this has been framed, i think, very well by president trump, by republicans, calling it the schumer shutdown. that was sticking. democrats were feeling the heat and i think their conservative members, members from the trump states, wanted no part of this shutdown >> that was even the headline in it is "new york times," john harwood. i mean, it was -- "the new york times," front page saturday morning was placing the blame squarely on the democrats. >> yeah. i don't think that pressure was overwhelming because if you look at who's president of the united states, what his numbers are, his association with payouts and government, i don't think democrats were getting an enormous amount of heat, certainly not what democratic strategists were telling me over the weekend. however, democrats are pro-government generally, they don't like the government shutdown and as sara was indicating, there is discomfort from the issue that we're going to hold out for an open-ended shutdown in defense of the d.r.e.a.m.ers. in that circumstance, they were prepared to take what you called accurately, bill, a leap of faith saying, we'll test mitch mcconnell. this deal is only for three weeks. they haven't acquiesced in the republicans' defense department either there's a lot to play out. you know, we'll see where we are in three weeks and whether people in both parties want a shutdown then. >> that's what i was going to say. the only thing i can figure out, maybe from the dems' point of view, sure they were facing pressure, but are they trying to move the ball into feb thinking that will be tougher, maybe the gop revolts and talking about the deadline in march -- does what seem like a victory for republicans set them up for a difficult period early february, into march especially with that debt ceiling looming >> yes, it does. i think it's an excellent point, but the facts will remain the same you will have a shutdown debate here in three weeks. the deadline on daca won't be until march. so, i don't know what will change in the next three weeks if we head into another shutdown the politics remain bad for everybody but worse for democrats and the democrats flinch now, it would be difficult for them not to flinch again in three weeks >> thank you, folks. see you later. sara fagan, john harwood, we'll let you get back to work here. will we be rehashing the same debate in three weeks let's ask our experts. what do you guys think >> so - >> take it. >> wait ate minute. >> i like to have the ability to shoot holes in anything. i was going to say, when have effort of you deferred to each other. what's this about? >> yes, i think the democrats were getting heat over the weekend. i think the schumer shutdown thing was sticking i think the republicans made it very clear we had all the republicans on board and it was we needed nine democrats and not one of them was going to sign it i think it was clear to say that democrats are holding this up. and i think the country -- i think the country is disgusted, right? listen, they want -- the country wants to fix daca. i get it but we need to move on and that conversation with daca needs to happen if the gop was smart, quite honestly, they'd work to get that daca program fixed. >> i'm curious about the market response, though, steve. we kept saying on friday, well, it doesn't matter. the market's going to do what it's going to do whether there's a government shutdown or not the moment we learned there was a deal and enough votes, that's when we saw the rally. >> you picked out xaktsly what i picked out the first side was we didn't sell off during the worries about it, but we rallied when we got the resolution what does that tell you? extremely bullishness, pent-up demand for equities. still. right now. so, you can't fight this this is about tax reform this is about infrastructure this is not about a government shutdown not nearly a government shutdown. >> no, and i agree i think you're right, right? we didn't see it had it dragged on for two, three more days you might have had more anxiety in the market, but it didn't. i think a lot of people felt like - >> even if it dragged on, if you look back at the history of it, we've had these drag on 15 days, 16 days, obama had one that dragged on for 16 days the market is my oopic on earnings. >> we're off to a crazy start this is year the nasdaq is up 7%. it's only january 22nd >> what do people say this year, though everyone said, we're not going to have a banner year. it will be upper -- you know, maybe mid-single digits. the thing that will upset the most people is if we're up 20%, 30% this year. that's usually what happens with the market they upset the people at the same exact time. >> you know what i put in my notes this morning, go back to 1987 by january 22nd the market was up 11% in the first nine trading days of 1987, only to go up 40% before the market started to unravel. sell off in october and 22% in six hours. so, the sense is, you know, there's a lot of people now comparing, is this -- are we getting started off this year to another year of what may be something like an october '87 where the market -- it gets out of control. >> if you're a seller, though, how do you sell the market in the face of another -- of -- wait another quarter when you see tax reform really take hold, and we start to see how these companies are spending money or buying back stock again or bringing stocks here, repatriating, how do you sell is it ahead of that the answer is you can't, otherwise you get steamrolled. >> the volume is telling you that it's on 452 million shares it's already 3:15. there's not a lot of volume. you don't have the aggressive selling. it's the aggressive buying is what's happening >> see, this is what we were expecting. none of this deefferral. >> if you look at the overall market, this is amazing to me when you start to see people put their -- we mentioned on friday, if you haven't ratcheted up your forecast or your analysis since september 20th, you're going to chase. >> they only raised it 2% or 3% because it wasn't clear what the impact would be on companies when you get down to the nitty gritty of earnings so far - >> you can't go from 35% -- you can't go from 35% to 21% on your tax rate and not have it affect in a bullish way your bottom line i don't care if you're an s&p company. >> you do have to look longer term to see the benefits of that so far we have messy reports that - >> that's why you give it a quarter. when people start to soak it in, maybe that's the top of the market where you can do a near-term top. but until then, everyone is just getting. no one has ratcheted up estimates so you can't get in front of it until then. >> that might be true. i think the headwind over the next couple of months is going to be what happens to inflation. my sense is all of a sudden inflation will rear its ugly head, not just in the states but europe as well what are the central banks going to do then they're going to become more aggressive. >> gasoline prices are at a four-year high oil prices, three-year high. that's one component. >> the bullish side. what happens if the fmoc says now we had the government shutdown, gasoline prices, because we know they only have eight mandates now there's not a dual mandate anymore. it's transitory. maybe that's another bullish thing. maybe they get more dovish >> oh. >> maybe they get more dovish. >> you've been waiting to that for a long time. >> we just replaced saudi arabia in terms of oil producers in the world. we're now in the number two position >> i feel like -- the only thing missing here is a cup of coffee. thanks, guys. >> and a little biscotti. >> yes, something. thank you. see you later. >> thank you. 47 minutes left in the trading session. positive day we've had all the major averages now in record territory for the most part with this rally that began after we got word they had enough votes in the senate today. >> we haven't even talked about the spate of deals announced this morning a lot more ahead on the "closing bell." >> announcer: coming up -- biotech boom several major deals that will impact the sector and the stocks happening today. we'll go through the movers as the space jumps. plus, apple's ceo tim cook saying he wouldn't want his nephew to get on social media. and he believes in limits for technology at schools. is america hopelessly addicted if so, how do we get back on the right track? "closing bell" is back in two minutes. most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. plus signs for the most part today, especially after word got out that the senate had enough votes to pass the bill to bring the government back into business the dow just off its highs, up about quarter of a percent right now. the best performer is the nasdaq technology doing well, up about three-quarters of a percent. investors, speaking of technology, are keeping a close eye on twitter today after a report that lender sofi has offered the ceo job to chief operating offer anthony noto mr. noto has not accepted the job but he is said to be considering it, but evercore says it would be difficult for twitter to receipt place noto should he leave. >> as we said, twitter shares are trading lower today. this week marks the 25th anniversary of the first etf, the first exchange-traded fund. >> that long >> now the industry has brought in record $466 billion of inflows. the growing etf market even capturing the attention of the music and inten tearment industry. >> joining us with more, bob pisani, who's just suffering mightily at this conference in florida, along with quincy jones and donna nidieri. >> i can't tell you how much fun i've had in the last 15 minutes hearing stories from frank sinatra. quincy jones joining us here and donna, who is behind iconic beta we're talking about the music industry and can you invest in the music and entertainment business they're here to say that you absolutely can donna, let me start with you the quincy jones streaming music, media how did you come up with this idea >> also known as the quincy 100, quite a long name for the index. we're a thematic index provider. there's no better way to get to know an industry than go to the source itself. so, you know, we looked around the industry and quincy jones has been in it for 70 years so no better guy to work with than quincy on how it's going to look. >> you've lived through everything >> can't even drive. >> we've been talking about the 78s that were around when you started, then the 33s and 45, the cassettes, the dvds and now it's the streaming business. so, the question is, where is the music industry, where is the entertainment industry at, do you feel there's a big future there? i know you've had some concerns about streaming in the past. where are we at here >> we're on the way. we're going there. we're getting there. >> are we going to make it look - >> i hope so. >> we know there's a problem with artists getting paid for streaming. we know they're not getting paid enough you used to be able to make a decent living as middle level artist selling albums and you can't anymore. is is there a problem? should people pay more for streaming? what's the issue >> i don't know. i don't know it's -- singers, songwriters and musicians have to work hard to know what to do what they do it's just not right to take that right from them, their income. it's just not right. >> we need to figure out a way for musicians to get paid. we agree on that. >> it's a question of integrity, you know i think it's from integrity because everybody wants to sue about it but that's not where it's at. >> spotify play their artists 80%. block chain is going to be huge. >> but we're in another business now and we're going to get there. >> so maybe it's not the spotify being unfair but - >> no, spotify is very fair, but we have to grow into the business now we have to grow into it. >> people will be willing to pay more for music. >> meantime, the index, built around your idea investing in sony and some of the companies. talk about - >> the index is actually global. streaming is just getting started in a lot of markets. if you look at japan, 75% of music sales is still in physical format streaming is just getting started in a lot of markets. it's exciting. the opportunity is huge. >> how do you feel about the artists today? you've worked with everyone. we were talking about when you were a band leader and contributed your own music and frank sinatra. let's look at this beautiful ring frank sinatra left you. it's never left your hand. willed to quincy jones from frank sinatra. >> that was my brother. >> he gave it to you >> that was my brother. >> and michael jackson, of course, another man you made -- rocketed to stardom with is the caliber of talent today as great as it was when you were coming up? >> it's happening, yes absolutely i'm looking at young ones like kendrick lamar and chance and weekend and those guys, the underground, yes. >> do you think they have the technical skills >> they will, they will, because it's a question of growth. the question of influence and growth, you know like we have 15 kids now that we manage and have come to us from all over the world, slovakia, everywhere they are the most talented young people on the planet i'm not even guessing. we have a young girl emily baird who has been writing for century artist since she was 5 years old. obama calls her a baby mozart. frightening. >> let's hope they're going to be listening to you. >> jacob, jonah nelson they don't stop. >> let's hope they'll be listening to you my advice is listen to count basy, the late '50s because you were the chart leader. pick up some live albums from the '50s frank sinatra, the man produced it right here. l.a. is my lady -- >> at fountain blue. >> at the fountain blue you did that listen to this man and listen to his great band leading efforts thank you for joining us donna, thank you good luck on it. we'll keep track of that and see how it goes. >> he's on it like a hornet. >> i'm on top of it. thank you for joining us we're here all day today and tomorrow talking to the leaders in the etf industry. back to you. >> i'm not cool enough to pick up from -- >> oh, man, that was so much fun watching you guys work there that's great stuff thank you, bob see you later. one cool dude is all i can say. >> who, bob? >> and quincy jones. >> you were with me on that one. >> the shades, i love it. we have a news alert on a deal this is sort of in keeping a deal in the beverage industry. >> hope you're thirsty because this is a deal in the liquor space. bacardi is interested in buying patron tequila $5.1 billion is the deal dow jones is reporting according to what's crossing the wire bacardi is looking to expand their portfolio. they think premium tequila is the way to do that and being patron would give them a toehold into that market bacardi is privately held. it's a family-run business one of the oldest continually family-run businesses of that scale. i actually toured their rum factory back in december and it's quite impressive what they've built up at this point but for now these deals -- it's unclear based on the story how advanced those deal talks are at this point in time, but we'll keep an eye on it. we're making calls on our own and we'll get back to you with what we learn. >> i just wonder how long bacardi will stay private. i mean, given the opportunity and consolidation across that whole sector. >> this is certainly a move that would suggest they're looking to expand i don't know if a public offering is in their mindset right now, but that's something a lot of companies look to as they expand their portfolio. this would be something that the public market could be interested in. >> who knew patron was a $5 billion business. >> i know, i know, amazing. >> that's a big number >> patron is top-shelf, that's for sure >> thank you >> thank you >> 35 minutes to go and the markets are higher dow hanging onto an 80-point gain i think we're looking at records at these levels. 26,153, yes, that would be a record close 825 for the s&p. nasdaq in same record territory and the russell could close above 1600. >> don't you wish you had the same sheets we had netflix up 17% so far this year. the company reports after the bell we'll debate how to trade the stock. plus, picking winners in the energy space the sector is today's second best performier but it's the bet sector in the last month "closing bell" is back in two minutes with more music. so, how's it going? well... we had a vacation early in our marriage that kinda put us in a hole. go someplace exotic? yeah, bermuda. a hospital in bermuda. a hospital in bermuda. what? what happened? i got a little over-confident on a moped. even with insurance, we had to dip into our 401(k) so it set us back a little bit. sometimes you don't have a choice. but it doesn't mean you can't get back on track. great. yeah, great. i'd like to go back to bermuda. i hear it's nice. yeah, i'd like to see it. no judgment. just guidance. td ameritrade. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice. welcome back we just told you about that patron deal with bacardi it was actually this morning's batch of biotech deals that has put us over $100 billion anyway, it's the biggest dollar start for the year for deal-making. >> already $100 billion in deals this year. >> yes >> and it's the biggest dollar amount to start the year off since 2000 so, all of a sudden this is really becoming a potential big year for m&a go ahead >> well, we have an update for everybody except the industrials and materials. so, heavy industry is not doing so well, but energy leading the way with oil prices continuing to set three-year highs. telecom is up there intl. >> surprising. >> some other movers we're watching this monday apple has been a drag on the dow so far today after a second downgrade in a week on that stock. this time it was atlantic equities lowering its rating on apple to neutral from overweight on concerns of softening iphone demand that stock is down almost 1% now. ge shares dipped below $16 a share early on today after bank of america downgraded the stock from neutral to buy on expectations that the company is going to cut its full-year outlook after reporting earnings that happens later this week ge down another 1.2% today. it's time for a cnbc news update let's get over to sue herera. >> hi, kelly hello, everyone. here's what's happening at this hour secretary of state rex tillerson arriving in paris to discuss the middle east with french officials. earlier while in london, he held a news conference where he discussed trying to prevent turkey from attacking kurdish fighters in syria. >> we're engaged with turkey and engaged also with the leadership of our coalition and are asking that both sides show restraint please minimize the impact on civilian casualties. >> pope francis apologizing for earlier insisting that victims of pedophile priests in chile show proof of abuse. he spoke to reporters on his way back to rome after visiting chile and peru he told them that insisting on proof was, quote, a slap in the face to victims that he never intended the arizona cardinals are closing in on a deal to name carolina panther steve wilkes their new head coach the arizona job became available when bruce arians resigned at the conclusion of the season you're up to date. that's the news update i'll send it downtown to bill and kelly. >> see you next hour thank you, sue. we're inside the last half hour, about 29 minutes left in the trading session. dow up 80 points everybody across the board in record territory biotech is booming sending the nasdaq biotech index to a multiyear high. we'll tell you what's behind that move coming up. and apple ceo tim cook not a big fan of kids using social networks later on "closing bell" we'll tell you which cook family member is feeling the pinch from his social issue [ click, keyboard clacking ] [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] ♪ good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. talk to one today and see why we're bullish on the future. 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(dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? ♪ plus signs today, record territory for all four of the major averages, especially after we got word the senate had enough votes to put the government back in business and thes house is supposed to vote on this some time this hour. let's get to our "closing bell" exchange joining us tony, steve sarge guilfoyle a guilfoyle. in golf we call it the silly season you don't agree that the market should be going up right now but, hey, you'll take advantage of it anyway, right? >> i'll always take advantage of whatever markets give me i think liquidity will come out of it. we might see that with the boa and ecg. >> reason i say it is we had kenny p. and steve grasso -- >> i would have loved to have been part of that. >> they were saying, look, even if you think this market is going down, you don't dare sell yet because it goes up right now. >> you do sell partials. i sold part of netflix going into earnings tonight, i'm up a lot even if it's up a lot tonight, i won't feel bad because i'm protecting a profit. so, i sold half my netflix, i still got skin in the game it may go against me but i took half it off the table. last night i sold some of my kohl's -- i'm up 80% in kohl's and i bought ibm with those earnings. >> the interest rate, 2.65, i don't know how high we got there. 2.66 we're up towards 3.00. they think 3.25 is the next level now. i mean, is this thing going to keep going >> i think it is that doesn't mean there won't be small setbacks, established ranges i think that 2.63 won't be much fert than a small arrow shot away from where we're trading for a while. if anything goes different from game plan this year regarding interest rates, it will be more to the upside not to the downside everybody, of course, should be considering 3.00%. it's the next major resistance level. how long we camp out here in the 2.60s, there's subtle resistance around 2.80 but, yes, i do think -- and the pace of the long end is going to be very important. not only for traders, not only for trying to assess the economy or alternatives to equities but i think it's going to have to incite a bigger fire under other central banks that were just mentioned by sarge i think the bank of japan and the european central bank, should we see long rates and steepening curve rates in this country, that will make them try to speed up a little bit and i think the sped-up process in europe is very interesting to ponder all of it may take many years to complete but ultimately they'll have to find a way for all that southern paper, all those securities, the sovereigns like italy and spain, to kind of get brought into the family. and that trade is going to be huge i'm not sure if it will, boon deals but that will be a force to reckon with to make the negative interest rate paper disappear. >> meanwhile, tony, we have earnings, which larry kudlow tells us is the lifeblood of the stock market how do you assess how we've been doing so far this season as we make our way through, what is admittedly going to be a confusing earnings reporting season given the advent of the tax reform here. >> great question. where we fall out is you want to upgrade the quality of the companies you own right now. you want to avoid excitement and own great businesses we wish we could know how to trade netflix around and things like that to make a buck here and there. what you want to do is migrate down in valuation to protect yourself from what is a -- you know, an increasingly rough market when you look at where the valuations are at, the sentiment built around an increasingly bull market going forward. you don't want to get lulled to sleep by a one-direction market and this is the time to migrate down in valuation. >> sarge, anything you'd add there before we go we've been off to a crazy -- you have to acknowledge, nasdaq up 7% dow and s&p up nearly 6% is it justified? >> for one, i'll trade the netflix. have you to diversify. you have to stay strictly diversified across all sectors and even outside the u.s he mentions going toward lower valuations you'll get those in india, in brazil you need to play the etf game if you're a retail investor watching this at home because you don't know the specific stocks, the specific companies have you to become familiar with the various etfs that trade outside the u.s. that requires homework you can't ask your financial adviser unless you know the guy real well. >> guys, thank you tony, thanks for joining us today. starn sarge, i know you're making hay. good for you. 20 minutes to go before the close. dow is up 84 creeping up a little more. the s&p is up 15 nasdaq up 53 the russell up four. a new survey says the u.s. is facing a, quote/unquote, crisis in trust in government, media and business we'll discuss what snuctiinstits should do to earn back the faith of america. the biotech space with a pair of deals sending that index to its highest level since 2015. we'll tell you which names could be the next biotech takeout targets when kellynd ce ck a iom netflix shares rallying. the stock has been on quite a run so far this year up nearly 18% just in 2018 that's nothing new for netflix investors. they've seen a 60% surge over the past year. >> we'll see what happens after the bell. a new trust index shows americans have the lowest trust in institutions from business to the government in the world. >> steve schmidt is vice chair at edelman, political analyst for cnbc he also ran john mccain's presidential campaign in 2008. you know all about the cynicism that exists in the world today when it comes to politics and media. this trust index, what does it say, what's in it and what does it say about the state of the world right now? >> the well, this is the largest study of trust, looking at trust in media, government, ngos and business that takes place in the world, across 28 countries, 33,000 interviews. what we've seen is a calamitous drop of trust in the united states drop in trust in the united states in the eyes of the american people, both informed elites and regular people, but also brand america from overseas when we think about american head quarted businesses, we now rank somewhere between spain and italy. when we look at how we're perceived, how we're trusted by countries around the world, we're slightly ahead of russia and slightly behind china. we saw corresponding increases of trust from the chinese people in their system but also globally in china, increasingly is the indispensable nation. so, this is very worrisome because when you think about an advanced stage democratic republic, the entire system functions not so much on rules but on norms and norms that require trust. very alarming results in this for the united states of america. >> i mean, i'm looking at this china thing. so, it's on top of the trust index among the general population and the informed public i don't know what that means but you're telling me that china's public has more trust in its institutionses than the american public does if that's the case, i would still rather be the american public and skeptical of my government than the chinese public that has, apparently, no such skepticism of a government that's surveilling me and quite oppressive, frankly. >> i think so that's one reason to be alarmed. the question isn't whether you would rather live in the united states of course, i would make that decision also. the question is, what system do people have faith in as we look at the government shutdown, it should be noted the chinese government has been quite vocal about expressing its skepticism toward the american system of government, saying why would anyone want to emulate this look at the chaos. one of the differences between united states and china is this, over the last 25 years, we've seen an emerging historically fast-growing middle class in china when for the average american working person, there have been significant gains at the top, your average working person has seen flat wages going back a quarter century and tremendous disruptions based on the technological revolution and globalization we're living through. that's stagnation in the middle class is fueling a lot of pessimism in america. >> i have 30 seconds not that we're going to solve this, but i'm curious how you think -- how we turn the tide and get the trust back again can we at all? >> it's going to take a hell of a leader to get this country going back in the right direction to establish those bonds of connection between us again to appeal to the better angels of our nature, as abraham lincoln once said. we have a lot of work to do. what's alarming about this study, it doesn't suggest we hit the bottom but that we're on an accelerating decline the angle of descent is getting deeper and there may well be a long ways to go. the problem seems to be getting worse, not getting better. >> do we blame the internet or any social media for that regard i was joking the other day i miss the day when i had no idea what everybody thought about everything that's what we're bombarded with right now. >> the concept of objective truth, what is it, is under debate we've seen a staggering collapse of trust in the social media companies, a real kred louseness about people they're worried about propaganda, they're worried about misinformation they don't know what to trust and whom to believe. that's an increasingly ominous undertone to all of this that we find in this study >> unfortunately, i think i trust you on this. i believe it steve, thanks. steve schmidt. >> thank you >> trust index thanks for being with us. ten minutes left in the trading session. look at this, it's just turned into an old-fashioned rally for the day. the dow now up 114 points. and yes, the nasdaq leading the way with a gain of 1%. big day for biotech, m&a and looking at the next set of potential targets. brace yourself for netflix earnings after the bell. we're debating whether you want to own the stock after its 17% run in just the last three weeks. "closing bell" is back in two. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. why is the market rallying, you ask? art cashin told us the market on close orders show imbalance to the buy side to the tune of $207 million. we're now just off the highs for the day, up 117 points and much of that gain just in the last hour here. >> boeing flipped positive that's been a name propelling the dow all year it was negative earlier. like the rest of the markets, it's flipped into positive territory and now continues to move higher. there's the s&p. up nearly three-quarters of 1% now. >> is this me or you >> i think you >> okay. shares of chipotle taking a beating today, making it the worst performer in the s&p 500 it is been on a huge rally, though, we should point that out. up 14% despite today's pullback. it's been among those stocks that has seen this huge gain among the dogs from late last year that the market started to get it tended to beginning of this year. today a pit of a pullback. >> and its merger monday, especially in biotech. two major deals announced this morning. meg has a look at them and which companies might be next. >> these two deals in the biotech spate total more than $20 billion. that gets us about 40% of the way to all of the deal value we saw in this space last year. of course, we're only three weeks into 2018. biotech investors have been waiting for this kind of pick up in m&a after michael yee called a lackluster 2017. this morning french drugmaker sanofi says it will bye-bye yoe verativ for $11.6 billion in total, a 6% premium. and sanofi is taking a little hit as some value the competition. celgene buying june notice therapeutics giving it a foothold in the burgeoning space of cancer immuno therapy. both of these deals are boosting biotech stocks is and speculation that more m&a will follow the companies with the biggest piles of cash is gilead, merck, j&j according to baird from clovis oncology to bluebird, which we're seeing that stock up quite a bit. people hope those deals are coming back in 2018 for biotech. >> we just said the best start to the area since 2007. >> big start. up 115, record territory for all the major averages we have the closing countdown in a moment. as we head to break, here's another check of those netflix shares company gearing up to report fourth quarter earnings in a few minutes. it'sp reha umo tn 3% heading into the close you're watching cnbc, first in business worldwide driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. trading session. bob pisani is with quincy jones. a year that has just - >> it's strong. >> it's like a sprint. >> it really is. >> it started strong and hasn't given up yet. >> the dow at record highs as that government shutdown is averted. up triple digits keep in mind opened lower by 70 points but clearly an intraday reversal. >> as they buy stocks, they sell bonds. the ten-year got to 2.66 today, another multiyear high we wonder how much higher it will go? >> i guess stocks and yields can move in tandem. >> what's not going higher is the dollar the dollar index hit almost a 52-week low today. in fact, that is just about right there, 52-week low. >> by the way, the best performing global currency in 2018, the mexico peso despite those nafta concerns. >> now we have netflix and td america reporting coming up here in just a few minutes. >> p&g tomorrow, raytheon, caterpillar tomorrow. >> we're wading into the deep water. thank you, seema we'll see you tomorrow we're finishing on the highs, up about 140 points on the dow. records all around stay tuned for those earnings and the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kel. thank you, bill. welcome to the "closing bell." i'm kelly evans. 140-plus point gain on the dow today. a lot just at the close. that puts the dow at 26,000 over 200 for the first time a half percent gain. that's a record close for the blue chips the s&p 500 adding 22 points to close at 2833. that's also a record close the nasdaq composite just up under 1%, closing above 7,400, at 7,408 and russell 2000 small caps up almost half a percent closing at 1605 for the russells after a 7.5 gain again, we saw moderate gains, especially after some washington action on the shutdown at noon today. then things really lifted here into the close before we dive deeper into these marks, let's get to washington with kayla tausche for the very latest has the house even voted on this yet, kayla >> reporter: they haven't. we're awaiting final passage by the senate that is going through some technical details and still expected to vote this afternoon. after that the house will take it up and then the white house will have the president sign is it after that. it is promise that sealed the deal is the promise by senate majority leader mitch mcconnell, pledging the path forward for bipartisan immigration deal by february 8th, the next deadline this deal sets in place. florida democrat bill nelson was one of the lawmakers that the white house had singled out as someone whose vote they wanted to change, who had said he was working in a bipartisan way. they wanted to see that from him. he was a no on friday night but he voted yesterday and he told reporters he's optimistic about the prospect for this immigration deal >> before this agreement, they had no protection and we were not getting any help from the white house. we weren't getting any help from the house. and we really weren't getting any help from the republican leadership in the senate but now we have a path forward in which we can work a bipartisan solution that will take care of the d.r.e.a.m.ers >> reporter: the white house has been consulting gop senators for weeks at this point but today invited a group of of about a half dozen of them over to the white house to discuss what they thought could potentially pass on a bipartisan basis. that meeting happening even as house republicans began to balk at this timeline to get an immigration deal on the floor by february 8th february 8th, kelly, we should note, is less than three weeks from now and that time is going to go very quickly we'll see what they can do >> yeah, we've already got a countdown clock started, or at least working on it. kayla, thank you very much joining me is cnbc senior market michael santoli drilling into the markets, leading the dow was intel. nike did trail intel was up 2%. nike down 1% first energy topping the s&p big time, up more than 10% chipotle the biggest decliner, down 4%. even verizon had a great session in the dow today look, we were up 80 points all afternoon. popped on the close. how much is about d.c. >> i think not that much is about d.c. but it's a good illustration of how this market acts right now there was no pain with the coming shutdown last week, no anxiety in the markets when we have a resolution of the shutdown after a few days, it's an kus to buy because everything -- this market converts every headline into an excuse to go higher. right now we're in the phase, the party doesn't end until everybody gets a piece of cake i think every investor that wants in is basically being forced to chase up why not because all the news out in front of you on the table is giving you a cover story and excuse or genuine reason to think the market has tailwinds. >> nancy, what are your genuine reasons for investing here what do you make of this market which, as we said, the nasdaq is up 7% since january 1st. >> i know, it's crazy, isn't it? listen, valuation is still not wickedly expensive and i was watching my friend kenny p. on earlier talking about comparing this to 1987 i certainly hope he's wrong. but i do think we have a different dynamic. and that is that earnings growth is recovering and has been in recovery mode for over a year. we're getting global growth, as you've heard, and we're seeing companies that have used technology to improve margins. so, if you think that boeing is expensive, that may or may not be true but they have transformed their business using technology same with walmart. you can make that argument for federal express and on down the line so it's not just tech companies that have benefitted i think that's different this is time around. i was around for '87, so i remember that very well. >> i'm just thinking, we talk a lot about technology as a disruptive and negative inflationary force it's interesting it has such a positive let's talk about yields. it's going up along with stocks. the u.s. treasury yield continues to rise. the two and five-year yields hitting five-year highs. there's the ten-year just below 2.66%. and, michael, what do we make of this relationship? >> it's something that shifts over time in terms of relationship between how much stocks are worth and where bond yields are at. i think most times in history you look at the ten-year yield at 2.66% and then hear people worried about the chance that they're too high and be very puzzled by it. i want point out in 2013, the last time we surged in yields to 3%, it happened from 1.7%, it happened over eight months so, it's a matter of how far yields go up from here, if, in fact, they keep going up we don't know if that's going to happen at everyone expects it and how fast it happens. the speed to me is more about the volatility of the bond market, if it gets jumpy and whether or not that translates into stock market stroll tillvoy we've seen is that in the past. >> i agree with mike don't forget about the dollar. if you're a global investor and you have the opportunity to get a 2.5%, 2.65% yield and you can do so with a strong currency, i think that's part of this as well so, i think we should keep that in mind. the dollar has been weakening for a year, longer and i'm worried that that tends to lead to inflation and that we might see a pace quickening from the fed. but given the members of the fed, i'm actually pretty optimistic that the pace will be measured and the market will move around that >> that dollar reminds me of what you're saying about rates a lot depends on the speed of the move. >> exactly. >> if you have a dollar crash -- >> from this slow grind down we've had for over a year which still brings it down to the middle of its range over the last five or ten years. >> fair enough mr. o'leary, has he decided to join us from sunny florida hello, kevin thank you for joining us. >> great to be here. thank you. >> before we get into these netflix results, why don't you tell us what you think of this market another big rally. this year -- i don't even have words to describe it >> we're here at the etf conference and all we have here is thousands of investors. it's a great place to get feedback what's coming into the market, i think, and the reason we continue to see the slow grind up is the realization that there's going to be a lot of good earnings in the next 24 months as a result of tax reform, b, more buoyant economy, c capital being repat rated against stocks the theme today is how much repatriated capital from apple is going to go chase their own shares while investors also want to buy them. all of these forces come into play at the same sometime. and the market continues to go up but i'm not that worried about earnings anymore i think we're going to have really interesting midcap earnings results over the next three quarters >> yeah, look, earnings we've talked about what do you think of all the deals we've had, including some biotech deals this morning, kevin. this is now the best start for deal-making in dollar terms since 2000 >> yeah, i think there's a buoyancy at the board level now to put capital to work that we've got some stability, even though the government with the whole shutdown story that came over the weekend what's amazing is, ceos, cfos in corporations today, whether they're smaller ones or larger ones, domestic, are ready to do business again because we've got stability. we've got a good tonality in the market and with the government and they're willing to put money to work and take a risk again. these are great times to be an investor. >> let's see how netflix is doing on that very note. the numbers are out. julia has the numbers. >> looks like a big beat for netflix in the subscriber number the company announcing that it added 24 million new memberships. that's up from 19 million add added -- 24 million new memberships in all of 2017 compared to 19 million added in all of 2016. so, breaking this down here, the company had 8.33 million net additions in the quarter versus expectations of 6.3. 9 million. so, nearly 2 million more net additions in the quarter than expected now, breaking that down, 2 million of the net additions were in the u.s. that's about half million better than expected. and 6.36 million net additions internationally, overseas. looking at the earnings and the revenue coming in at -- earnings coming in at 41 cents per share. that's right in line with estimates. while revenue was $3.28 billion, just a hair stronger -- or $3.29 billion, just a hair stronger than expected. continuing to go through this release here, guidance is also very strong. the company guiding for -- q1 revenue $3.69 billion in revenue versus the 3.49 analysts anticipated. eps guidance of 63 cents per share. also much stronger than the expectations of 56 cents that we're getting from thomson reuters in terms of forecast that is, of course, going to be driven by subscriber growth. the company says it expects 6.35 million new subscribers in q1 versus the 5 million expected. so, we're looking at stronger than expected guidance for q1 as well as that subscriber beat in the quarter. now, just looking at one -- one note here and why the profitability wasn't higher. they note two noncash charges. one was a $26 million cash tied to foreign exchange. interestingly, there's also a $39 million noncash charge for unrealized content they didn't decide to go forward with. they didn't say exactly what it is here, but we can assume it's due to killing the kevin spacey movie and writedowns on unreleased episodes related to "house of cards" after that kevin spacey scandal so, real strength here and i'm going to continue to dig through this they mentioned "the crown," "black mirror" and "stranger things" as content driving the stronger than expected subscriber additions in the quarter. you see the stock is now up more than 9%. >> that's a lot of interesting stuff. julia, thank you what jumps out to you? >> expectations were high. the results were even better and kind of vaulted both of those things the membership numbers are really all you have to know for netflix. because there is a certain number of global memberships at which this financial model works very well. it's a distance from here. if you're accelerating into it and getting memberships coming in better than expected each quarter, as happens happened this quarter, you get to that point. the question for an investor is, what's the value of netflix's head start as all tv becomes internet tv? it looks like the value is going up of that head start. >> naeps, what would you say >> the same thing. the subscriber numbers are the most important i think particularly of interest is the u.s. number that beat handily because it's a more mature market, obviously that is impressive to me i didn't hear anything about margins. that will be interesting to note as mike said, that's all that matters with this company. it's like amazon and revenue growth and dominance they are dominant and the price just went up for apple >> that's an interesting point kevin, we'll give you the last word >> i think as we look at quarters ahead, quarters ahead for amazon -- or netflix, one thing to think about is when you make ten movies in hollywood, i don't care who you are, netflix or anybody else, only two of them make the majority of the money. six are dead, two are disasters. we never get that data out of netflix. all we get is if you have to take a charge in the case of the spacey deal, you saw is that but you don't know how many dogs they're going to make. are they going to do any better than hollywood are they going to get better than 20% to make money over time their argument is, well, there's a long tail. we'll get someone to watch this even if we make a dog. in quarters ahead, i wonder if that story will catch up with them a little bit because nobody can do better than 20% hits in making movies. that's the history of hollywood. it's the old 20% make all the money. >> kevin, thank you for joining us nancy, thank you we'll have much more on netflix coming up here the shares are up nearly 9% after hours. that's on top of the 17% gain this year. pivoting now to washington, the u.s. senate reached a deal to reopen the government joining us right now to talk more about that is republican senior senator from louisiana, bill cassidy senator, thanks for joining us. >> thanks for having me. >> so, it sounds like the house is not totally finished this up yet, but wlapz now, 19 days from now? is anything going to be different? >> yeah, i think it will be. there's nothing like a hanging to sharpen a man's mind. i think democrats now realize that republicans are serious about bordersecurity if they want a deal, they are willing to give on border security and i think, frankly, republicans are willing to address the issue of the daca kids you put the two together, you can make a deal. so, i do think there will be something that happens. >> right that sounds great, but -- it sounds easy to talk about. you know as well as anybody, getting it done can be a totally different story. in the last hour, the prospect was raised that it could be house republican members who don't feel comfortable with defense spending levels, for example. there's a lot more roadblocks ahead potentially, aren't there? >> yeah. our democracy is messy but we continue to get better if you look at the economy -- i've been listening to your feed the economy is doing fantastic so, as much drama as there was about the tax bill, the tax bill got -- now we're seeing the benefits i like to think that's what will happen going forward on these other issues, too. >> we're looking at the voting taking place right now on capitol hill there so, as we understand it, a lot of this will come down to immigration for striking the next deal, previous graham/durbin deal has been, quote/unquote, put to bed. what might the next bill look like what needs to be in there as far as you're concerned? >> the president has said there's four pillars of course, the daca and the border security are two of those, chain migration is another. if we can address those in a way which is not so expansive that it falls apart but is focused enough on those four issues, and that issomething which has bee agreed to on a bipartisan basis, then i think a deal can get done schumer is saying he's willing to give on border security that was the president kind of you got to do it for me before i go forward that, to me, at least indicates movement >> we know you have to go and vote yourself. last question. is there going to be any issue raising the debt ceiling come march? >> i don't know that obviously, people will look at how do we address or debt and deficit issues on the other hand, if you have 3.5% growth, as we did before the obama years, you actually take care of a lot of our debt and deficit. i like to think what we're seeing now will play into how wet address that issue >> growth cures all evils. we'll see. senator bill cassidy, thanks for joining us we'll let you go. >> thank you. we're going to talk much more about netflix earnings straight ahead. the big debate, it's up after hours, do you want to own the stock? up 17% before this move in 2018. or do u it ayowand hope for a drop more "closing bell" in two ♪ take off for mexico with expedia. ♪ one click gives you access to discounts on thousands of hotels, cars and things to do. like the fairmont mayakoba for 59% off. ♪ everything you need to go. ♪ expedia. welcome back we have a news alert on adobe. what's happening there >> two pieces of news have that stock up better than 2.5% after hours, over 200 bucks a share for the first time the first has to do with an earnings revision upward at least for the earnings target up 16 cents for the first first cal quarter. adobe saying expect $1.43 of nongap eps, up from a prior estimate where they were projecting $1.27 they also took up their full-year target to $6.20 from $5.50. and this is from the tax act from that change in tax law. so, that has the stock higher. also adobe making an announcement about change in chief financial officer and change in general counsel. both of those people are retiring mark garrett, who has been the cfo for about ten years through adobe's transition to the cloud, is going to retire so is mike dillon. both will stick around and help to find their replacements and transition to their replacements just to note, kelly, on the cloud and on mark garrett, ten years ago that stock was a fifth of where it is now kelly? >> over 200 bucks for the first time today thanks very much today. now to those netflix shares surging after reporting better than expected earnings just a couple minutes ago let's get back to julia for more details. julia? >> we have more interesting details in reed hastings letter to shareholders. the company is saying last year average streaming hours per membership grew by 9% year over year with greater member expected growth. they now plan to spend between $7.5 and $8 billion on content this year. that's up from the prior range netflix gave of between $7 billion and $8 billion they said largest investment in original film to date called "bright" with will smith was a major success and drove notable lift in acquisition. this is notable for investors because the film was critically slammed. has just a 27% on rotten tomatoes that didn't hurt its appeal on netflix. the company saying in its first month "bright" was most original viewed ever and sequel in the works. netflix announced the addition of a new board member, former ceo of canal ploos group in france a growing percentage of netflix members are european so his perspective will be valued on the board. back over to you. >> julia, thank you. netflix up a little more than 8% after hours. should you keep buying the stock? here to debate it ed reed and kevin landos thanks for being here. ed, what is this quarter telling us about netflix as a business >> their runaway train, they're growing, doing what they said they would, get the user base up in the u.s. and also internationally. i think that's impressive. other things are growing, too. the negative free cash, that's going higher they're going to spend more on content. their content applications are going up as well the other thing looming on the horizon is the disney/fox deal. >> that's mentioned in here. >> that takes stuff out of the pipeline it's buying the content pipeline the stuff that netflix buys from they saw this story coming way back when. that's why they started bulking up on their own production i think it will be harder in hollywood to own the mind share of the producers you need to come to netflix. now all these other places. >> how does it look to you as a business >> i think they're in the right place at the right time again. it's sort of the mark of a great strategy is that you're in the right place at the right time time after time. i don't see anything want to like here except for the things people have hated for the last ten years, which is that they're burning cash yeah, they're going out of business to thunderous applause, i suppose, for the last decade >> i mean, i actually wonder about that you're pointing out the same thing i did, which is the negative free cash flow. at what point does that turn into a positive? at what point do they get the scale in their subscriber base - >> hang on. >> i'm sorry. >> we'll get back to kevin we have breaking news from washington eamon javers, what's happening >> reporter: looks like the senate has enough votes to pass this continuing resolution they're voting on the floor right now as you noticed a few moments ago in your conversation with the senator it also looks like there are continuing conversations here at the white house right now. the white house putting out a list of about six republican senators who have been over here this afternoon since the earlier vote on breaking the filibuster in terms of the continuing resolution so, clearly republicans anxious to figure out what their path forward here is going to be on immigration now that there seems to be a commitment from mitch mcconnell to have a debate and a vote on immigration at some point in the coming weeks. we'll expect to see a vote in the house of representatives we'll see if they have the votes there to get the government back open again this evening. back over to you. >> everyone who has to show up at work tomorrow will be watching that along with the rest of us eamon, thank you. pivoting back to netflix, kevin, one thing they talk about is they'll have negative free cash flow of $3 to $4 billion next year. this is what you were talking about. what do you make of that >> i think they've calculated that's what they can get away with they're still a growth story obviously, they can raise prices any time they like every time they do raise prices, everyone gets a little nervous and they just keep right on adding subscribers and they're adding subscribers faster than they planned to. so, i think this is -- maybe it's a little like the amazon story. amazon was sort of break even, couldn't make money and they kept growing and being successful this is a slightly different version. maybe more towards facebook and uber story where it's a great growth story and will get around to making a profit later. >> mike, what do you think >> the reason the market allows them to do this, fund the negative free cash flow is because you can draw that line from here where they are in terms of subscriptions out to whatever percentage of global broadband customers you think they can get and i think we're beyond the point where we think it's a zero sum game it's not netflix versus cable versus hulu and everybody else in the letter today, netflix says there is room for many of us in this world and that seems to be proving true. >> so, the key for them is do subscribers grow faster than content costs over time? which side of the debate you fall on, is that a big part of it >> that's the right way to frame it mike is exactly right, they're giving them the room amazon was mentioned earlier i think that was another interesting example. the difference, though, with amazon is all their profits are coming from aws. it's a completely different business line that they kind of hit upon that they were smart about. netflix is in a really specific business here. i think they're doing a good job with that business, but i do think headwinds could be sort of the content pipeline itself. i think it's going to get more crowded, more competitive. you've got to fight for those things and it will cost more money. >> we have to leave it there here to join us to talk about netflix. meanwhile, someone call jack bauer. td ameritrade is creating a new business we'll have throws details coming up. halliburton moving higher today after posting bigger profits and revenues than wall street anticipated the "fast money" "fast money" guys will look at what stocks you should be buying in the energy sector. pssst. what? i switched to geico and got more. more savings on car insurance? a-ha. and an award-winning mobile app. that is more. oh, there's more. mobile id cards, emergency roadside service... more technology. i can even add a new driver... ...right from her phone! geico. expect great savings and a whole lot more. look at this finish on wall street doesn't look like how we started. futures this morning, the dow was supposed to be lower at the open by 60 points. we turned around, especially after that afternoon vote to reopen the government. and then really bumped on the bell record highs across the board today. time now for a cnbc news update let's get back to sue herera >> hi, kelly hi, everyone here's what's happening at this hour vice president pence standing beside israeli prime minister netanyahu blaming democrats for the government shutdown and thanking president trump and the republicans for ending it. >> let me say, we welcome the news that thanks to the firm stand taken by president trump and the house and senate republicans, the shutdown in washington, d.c. is coming to an end. >> five people are unaccounted for after an explosion at a drilling rig in oklahoma there were 22 people working on that rig when it occurred this morning. 17 workers were pulled from the site, including one who suffered minor burns. part of the rig collapsed from the heat of that explosion the price of gasoline continues to rise. the national average price of regular gas is $2.53 a gallon, according to aaa that's up more than 7% just since december and the price may rise a few more cents as retailers have not fully passed on their higher wholesale gas prices to motorists. that's the news update this hour kelly, back to you >> thank you, sue. sue herera by the way, it wasn't just netflix. we had numbers out from td ameritrade >> that's right. the market is liking what it's seeing from the first quarter results from td ameritrade and td ameritrade's positive results are largely thanks to what the market is doing on the bottom line, td ameritrade reporting earnings per share of 52 cents compares with estimates of about 50 cents. on the revenue side, td ameritrade also beat $1.26 billion. that compares with estimates of $1.2 billion now, interestingly, the ceo said in a statement that block chain and cannabis-related securities drove further surge, particularly toward the end of the quarter there. their client assets of $1.2 trillion, up 48% year over year. back over to you >> from block chain and cannabis, something much more plain vanilla, thank you td ameritrade is also going 24/5, 24 hours a day, five days a week that's when you can execute trades, all day and all night. joining us is chief strategist over there, j.j. it sounds like people -- who needs to trade the s&p etf when you've got cannabis, you know, futures or something seriously, why are you making this move? >> well, we're making the move, kelly, because look what's happened to tv you remptsed the show "24" before the commercial break. you had to watch it when it was on at exactly 9:00 p.m. eastern, whatever it may be a few years later, that's the silliest thing we've seen. why wouldn't it be on demand our research and clients tell us that 70% of our clients do their research at night or on the weekend, whenever the market is closed so, they do a lot of it at night, why wouldn't they then be able to react on what they're researching at the same time it's been a great demand from our clients to kind of meet them where they live and technology now allows us to do so we're taking advantage of what it does and giving a service to our clients. >> what happens then when that client that's been researching an idea wants to execute that trade in the middle of the night in one of the etfs you're now trading 24 hours do you actually execute that on your end how does that fit together does the market actually allowing for that right now? >> it is, michael. we just leveraged processes we have during the day with overflow providers, et cetera. with all that being said, i was on there last night, the first night we did it. and most of the markets were three cents wide all night long. have you to remember, this is primarily retail trading small we very much encourage people, just like anything else, michael, education is such a big part of what we do in our education, it's all about starting small it's a new product, new thing at night. so, stay small i was on there last night trading small, as were many -- many others. and great markets, really tight. have you to remember one thing about the 12 etfs we allow people to trade. you're talking about the s&p, spdrs. what trades at the same time is the e-mini s and future. there's a natural hedge for market makers so, therefore, encouragement to keep markets tight because they can lay off the risk it isn't adding any extra risk to the system. it's allowing people to do what they want, when they want to and that's why we're very select stif on the names we started with. >> a little silver and gold in there, too, emerging markets keep us posted thanks. >> thank you, kelly. energy prices are on the rise and so are energy stocks. the "fast money" tde wh rarsit their picks for the sector next on the "closing bell." [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] ♪ good questions lead to good answers. our advisors can help you find both. talk to one today and see why we're bullish on the future. yours. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. it's day three of the shutdown of course, the senate is scheduled to vote today at noon on a short-term funding bill. >> there's a consensus that our ceos want america to be strong and then there's the consensus in washington that there can be no consensus and i don't -- i think a lot of americans are saying, what is this about other than hurting people >> this is a real shutdown now these are people not going to work this is a military not being paid this is children's health insurance in a number of states being shut down. >> the senate passed the bill to fund the government for three more weeks the vote was 81-18 with a significant portion of the democratic conference on board >> we will vote today to reopen the government, to continue negotiating a global agreement with the commitment that if an agreement isn't reached by february 8th, the senate will immediately proceed to consideration of legislation dealing with daca. >> stocks near their session highs. the dow, the s&p 500 and the nasdaq, one, two, three, all hitting record highs today >> 140-plus point gain on the dow today. a lot of that just at the close. that puts the dow at 26,200, a record close for the blue chips. >> i like watching that little chart crawl at the bottom. energy reached a new 52-week high, closing up more than 2%. here to trade it, "fast money" traders. hello, guys. why don't you kick us off here is this all a halliburton effect in the market today? is this an earnings thing? i think it's one of the best places in the market in terms of earnings what do you think about the sector >> i think it's an underpositioning reason behind it ultimately, this is a massive pain trade if you look at the value growth from the fourth quarter last year and the way energy rallied and took off, a lot of the funds that participate, dedicated energy funds, they didn't participate in that real upside with energy. there's a lot of underexposure they came in on their books with this year. they're seeing a big catch-up. i think this is a pain trade and i'll tell you why. i look at the flows in our desk, pain trades don't occur in the institutional trades right now i wouldn't be chasing it here. i would prefer to be short, let's say, the xop as an expression on that. >> so -- >> grasso, go ahead. >> so, i can't argue with anything david has said. it's obviously the weighting and s&ps at extreme lows compared to tech being at extreme highs in the overall weighting. you said it was the halliburton effect >> yeah. >> that's up 30% from november lows so, if you look at those plays, you're better off there than large integrated names exxonmobil, how much do you think that is up since november? i'll tell you. 10%. these big, fat, multinational, large integrated names is not where you're making your best bang for your buck because oil is range-bound you don't get into an integrated name when range-bound. >> good stuff. david s"fast money" coming up a 5:00 p.m. we turn to a news alert on clorox. >> clorox's cfo steve robb announced his retirement he's been cfo since 2011 he'll serve? that role through march where he'll be succeeded by kevin jacobson, who's been in charge of financial analysis since 2011 the company credits robb with $100 million in cost savings annually back over to you. >> might need him in congress. thank you. apple ceo tim cook issuing a warning to just about everyone using a phone. we'll tell you what that is before the break another look at netflix shares, rngsept.higher after its latest more "closing bell" in two apple ceo tim cook speaking out at harlow college in the uk last week warning about the overuse of technology and social media saying, quote, don't have a kid but i have a nephew i put boupdryes on some thing i won't allow i don't want them on a social network, end quote after launching the ipad, steve jobs said, quote, actually we don't allow the ipad in the home we think it's too dangerous for them professor adam molter talks about that in his new book "irresistible," and ed lee welcome to you both. ed, let me start with you on the apple piece of this. is it hypocritical is he drawing too fine of a distinction between the social media and iphone if so, does he need to do something about it >> there was how smartphones themselves are addictive i think he's referring to kids of a certain age his nephew is around 10 or 11. that's a perfectly and valid point. i have a 13-year-old she didn't get into social media until 11 or 12 now i can't pull her away from it but i think that's a fair thing to put on. at the same sometime it's like, yes, apple doesn't own social media or not outright. >> they just enable it. >> it's easier for him to sort of make that, you know -- make that sort of -- draw that line, at least. >> professor, what do you think having done quite a lot of work on this for the book >> i think that's absolutely true children especially don't have the resources, the capacity to control themselves in the same way adults do. having said thattings adults spend four hours a day on screens. and that's growing every year. that's grown from three hours two years ago. so, i think it's a concern for adults as well, but especially for children who need to be guided by adults. >> it's funny. i feel like the road map for the industry has been laid out there by the alcohol industry, which has been able to say - >> that's not a good sign. >> it's not, except they've always said underage drinking -- >> you have to label it. >> even though they realize people do below the legal age, they do sample and they do experiment, they can kind of benefit from that without actually promoting it. >> how can we ever go down that path for technologying and for social media and should we be specific about social media or is this about iphone usage that leads to that or - >> i mean, the other thing, again, to look at the technology specifically, i mean, imessage is a huge part of the apple ecosystem. that you can argue is social media. my daughter spends as much time on that as she does her instagram or snapchat. it's as much a part and parcel of that. i don't think tim cook would disagree with that i don't think he would say, oh, that's want what we do i think he's thinking you need to put limits on it at a certain age. >> is it fine to leave it up to parents to say, you got to -- if you want to keep this away from your kids, keep it away from your kids or headed someplace michael suggests which is effectively regulation >> i don't even know if we'll have a legal age but i think you can play it both ways. >> i think we're headed down the path of regulation when people at large companies say our key objective is not consumer well-being, it's to ensure you spend every possible minute with your devices, that's a concern. they're succeeding at that thousands of people against each individual consumer trying to regulate their behavior. to me that's a mismatch. to me, regulation is something people will consider. >> it's one thing if it's alcohol, firearms, tobacco it's another if you're talking candy, soda, social -- i don't know where this will fall, but thank you. a quick -- what were you going to say >> it can be argued either way the tide is turning against tech it's seen as a danger in a lot of ways. i think if tech doesn't figure it out, they will be regulated that's where the stakes -- >> books like yours will be a big part of that thank you for joining us. >> thank you. >> ed lee and adam alter. we want to keep you updated on what's happening in washington and in the white house. news alert with eamon javers >> reporter: that's right. we're getting new news now from the u.s. trades representative the. this coming out just within the past couple of minutes saying the president has approved relief for u.s. washing machine and solar cell manufacturers, u.s. trade representative rob t announcing the president approved recommendation to safeguard tariffs on large residential washing machines and imported solar cells and modules. they made this recommendation on the basis of an inner agency committee process, they're saying this will be seen here at the white house as a move that's very much designed to protect american jobs in step with the president's more protectionist rhetoric around jobs and globalization. so, we'll wait and see if there's any full statement here from the white house that's the news from the trade representative right now, kelly. >> eamon, thank you. the market, of course, jumping ahea the market jumping ahead of this meantime bitcoin is taking the street by storm, but there's one firm that's not biting, and tonight on "fast money", a technician's take, and why he says keep buying tech. and a gentle wave-like motion... liberate your spine... aflac! and reach, toes blossoming... not that great at yoga ya but when i slipped a disc, he paid my claim in just one day. so he had your back? yup in just one day, we process, approve and pay. one day pay. only from aflac oh, nice music it's time for the takeaway amazon launching its checkout free store to the general public if they get this right, what is at stake >> i guess plenty is at stake. it seems like a lot of them would want to go, i do wonder if it's all about cost, at the checkout clerk level, but really something more than that, where the general use experience is better. >> by the way, we went to the seattle store, walked out with a bunch of stuff, was charged for everything except a yogurt. >> that's what they call shrink in retail. obviously it's a work in progress up next, bank of america doing away with free checking for the remaining e-banking customers. now a $12 monthly fee if they don't carry a $1500 balance, or over $200 direct deposit there's other low-cots checking accounts is there broader significant obviously there was a lot of political pressure that they have to do something for these people who don't make banks a lot of money so if you have fee-based checking accounts, if you're if you have small balances, ear maying a tremendous amount something tells my unthe current -- finally in case you missioned it tim buckley spoke to our bob pisani about bitcoin >> you will never seed a fund from van guard on bitcoin. we tend to stay away from assets that don't have underlying economic value, they don't generate earnings or cash flows. >> never is a strong word. vanguard can afford to not chase cryptos. is this going to prevent anyone else -- >> bitcoin is alsodsh -- van guard is a not-for-profit sort of, and they have a strong mission, that we let our clients participate at low cost in the growth of business that's kind of what. >> you just sort of hope that -- >> if the liquid concern accounting overcome using a lot of managers are in a hurry it's not that profitable it really isn't. >> that's a fair point we're going to circle back to this 9% pop in shares when "closing bell" comes right back. finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. exwith a class-leading8 31 mpg combined estimate.d lease the 2018 nx 300 for $339/month for 36 months. experience amazing at your lexus dealer. hey! you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track, closer to home. we grew to a trillion dollars in assets under care by thinking about your goals as much as you do. the senate finally has enough votes eamon? >> we're about midway through the process. the going we're wading for the hour to vote, and then the president has to sign this bill that will keep the government -- or reopen the government for just three weeks they expect at the white house they might be able to have it done by about 7:00 kelly, over to you we'll continue to monitor it netflix's market cap crossing $100 billion for the first time. up 3%, 9% after hours. >> it's amazing, it's an extreme version of what is going on in the market as a whole. i've said kind of optimistic things that's been true for years, and this stock has had tremendous switchbacks, down 20, down 30% it doesn't mean it's up up and away forever, but there's a greater number many people persuaded that i have durable momentum >> what do you think will be listen for in the conference call. >> thee reaction on the entrance of disney, and open questions. >> the u.s. subscriber beats even though they raised 5 percent. that helps explains the gain that does it for "closing bell" today. "fast money" begins right now. "fast money" starts right now. overlooking new york city's times square, steve grasso, david see berg, guy adami. the real action is -- we'll head to hollywood florida, to puke to one of the pot-only etfs, and whiched tracers tell us what could be the match made in heaven

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