we'll debate whether this type of promotion can give the fast-food giant a boost like all day breakfast did. >> tesla set to report earnings after the bell among others. we have a hedge fund manager who says that stock is the single biggest company stock bubble going right now. an under the radar story, how judge judy is looking to make hundreds of millions of dollars off reruns. you have to hear this one. coming up. >> judge judy. i guess people would binge watch that. >> funny you should stay that. starting with president trump and the federal budget. eamon javers at the white house with a recap of the meeting today. >> we've got cameras into the meeting to see the top of it. we saw treasury secretary steve mnuchin and jared kushner gathered around the table. he gave us a hit in terms of what general direction he is going. here is what the president had to say earlier today at the white house. >> unfortunately, the budget that we are inheriting essentially inheriting is a mess. the finances of our country are a mess. but we're going to clean them up. things that we have been doing, including negotiating deals that have already been negotiated. you call it renegotiating on airplanes and other things. military items. we'll either get many more planes free or save a lot of money. >> when he talks about cleaning up the finances of the united states, you can read budget cuts in there somewhere. clearly this is a white house that is now thinking about slashing federal spending, possibly in a big, big way. the question is going to be what specific projects are they going to cut? as you know, bill, in watching this process over the years, every one of those federal spending programs has its own little constituency and lobbying department and they'll fight hard to keep the spending in place. all that going on behind the scenes today. we don't have any indication yet as what the white house will cut or when they'll announce the budget. but clearly they're working on it behind the scenes, bill. >> free airplanes? >> maybe like a package deal. buy six, get one free. something like that. >> i guess. thank you very much. >> that's news to boeing and lockheed. >> i'm sure they're watching carefully. steve mnuchin will be speaking with "squawk box" tomorrow morning at 7:00 a.m. evening. dominic chu joins us on what wall street wants to here. >> the treasury department is probably the arm of government of most interest to wall street overall, and the number one thing many investors want to know about, of course, is taxes. we are not just talking the corporate varieties here. it's something treasury secretary steve mnuchin spoke about on "squawk box" before he actually took office a few months back. >> any reductions we have in upper income taxes will be offset by less deductions so that there will be no tax -- absolute tax cut for the upper class. there will be a big tax cut for the middle class but any tax cuts for the upper class will be offset by less deductions to pay for it. >> so more clarity on the individual and corporate tax side of things. that's key here. another big topic, the banks overall. financial stocks rallied on this optimism about repealing regulations, particularly, of course, dodd/frank. >> the number one problem with dodd/frank is it's way too complicated, and it cuts back lending. so we want to strip back parts of dodd/frank that prevent banks from lending. that will be the number one priority on the regulatory side. >> guys, of course with treasury secretaries it's all about the value of the world's recover currency. he wrote a strong and dependable dollar is in the best interest of the u.s. while recognizing that at times over the long term that may not be the case. from time to time a strong dollar may have negative implications on the economy. a strong dollar, it won't help exporters in america, especially if there is an effort to revamp the manufacturing part of our economy and sell american-made goods to the rest of the world. kelly, bill, many more questions out there. that's a start. tomorrow's interview will be must-see tv. >> dom, also talk circulating around the street that maybe he could use tomorrow's interview as an opportunity to reveal that the treasury plans to issue longer dated maturities, maybe a 50-year treasury bond. if you heard anything like that? >> it's interesting that you bring that up. there had been chatter late last year with regard to possible policy for issuing new half-century bonds. there was talk on the street that dampened speculation about that mostly because there was the idea that the predictability of issuance of treasury in the united states made it attractive in upsetting the apple cart may not be good for other parts of the yield curves. 10s, 30s. but anything is possible. he mentioned it before. we would not be the only country that does it. places in europe issue 50-year bonds. canada has one and mexico had a 100-year one. >> maybe they missed the trough for rates. secretary steve mnuchin's interview kicks off at 7:00 a.m. eastern time on "squawk box." do not miss that. the dow closed more than 2,000 points above his moving average yesterday. the first time in more than -- its more than 120-year history. >> what does that mean? the dow is up nearly 14% since the election. is the excitement of the trum rally moving this parket too fast? joining us, to our closing bell exchange. neil hennessey from hennessey funds. cnbc contributor peter costa of empire executions and rick santelli from the cme in chicago. >> i kept thinking about you as i heard about new records for the dow. did you get back in yet? >> i didn't. no. >> you said you wouldn't mind if the market hit new highs, but it has been rather relentless recently. >> this relentless move is starting to get under my skinny have to admit. i'm still sticking with my plan. my plan is to not overpay for anything. i am like the worst person in the world to go buy a car because i will never overpay. i'm not going to overpay for this market. i think we're stretching the bounds of where this market can go at this time. maybe in three months this will be perfect for us. right now i just think we're -- we went a little too far, a little too fast, and it just -- more and more i see it, the more cautious i get. >> neil, you don't think there is euphoria here. >> there is absolutely no euphoria in the marketplace. you need that on the upside. this market has been very calm. everybody is talking about the volatility of the market that we haven't seen in 89 days, the maerk market hasn't moved 1% or more. the more they talk about it, the more it's not going to be volatile. you're talking about 19 times earnings. if corporations get any clarity on health care, taxes or regulations, that's all going to help business in one shape or another. so essentially the market is not over valued. it's slowly but gradually going up and it will continue to go up. >> rick, we had the minutes from the fed come out last hour, as you know. you have already commented on them. i am curious your thoughts on the market response. the headlines seem to suggest maybe the fed was talking at their last meeting about raising rates sooner rather than later, maybe as soon as march, but yet the dollar and yields went lower. what did you make of that response? >> bill, it's always tough to comment on what the fed says because i think that's the only category we can discuss because, if we comment on their actions it's a very short conversation. i do believe that they're behind the curve. how they proceed from here, i think it's silly. press conference or no press conference. there is important work to be done. i still contend with europe and their two-year note at a historic 90 minus bases points, the ecb may pay up for maturities even more negative than the neg rate they have. these are frightening financial issues. it's certainly not going to help the financial institutions of europe. so, you know, to me, our federal reserve should keep everybody from jumping off the same cliff holding hands. with regard to tomorrow, everybody is so anxious, the buzz with treasury secretary on "squawk box." when it comes to the dollar, though, there is one category that always, always wants and desires a stronger dollar. it's consumers. consumers are always better off. and in terms of a 50-year bond, i'll tell you what. it used to be a fascinating discussion. when the debt ceiling issue unveils in march, we'll pop over $20 trillion on the national debt. do we really need to ruin another generation. >> that's been the question. let's be clear. i mean, the question behind my question is the market doesn't seem to believe that the fed is likely to raise rates in march. what do you think it's saying here? >> i think they're going to raise rates in march, and i really think they -- whether -- let me rephrase. i am not sure what they're going to do in march. i would think they should raise in march. i am not sure the market will give you a clue until a couple days before. if they're going to go, it's in their modus operandi to alert people. you have a 72-hour window in my opinion in front of that meeting. >> neil, we have to go. because you think the rally keeps going, how much more? >> i think we get 25,000 on the dow clearly in the next three, four years. you are not even talking about much on a yearly basis. talking 4% a year. but i think overall we're in good shape. >> all right. >> thanks, guys. peter, sleep well. see you all later. take care. we have a news alert on macy's. could be interesting. dom chu. >> bilet's talk about retail bonds. in this case you have credit ratings agency standard a& poors saying they're revising the rating to a triple b minus from a prior triple b. and they've put the company's outlook to negative as well. it's important because, at a triple b minus it puts it one notch above non-investment grade or junk status. just a couple comments here, guys. the reason they did it was because they feel as though the company's weakened operating performance and competitive standing thereby a problem standing will be a problem in the future. it's increased traffic. increased transparency in competition from online fast fashion and only retailers. they don't think the outlook looks good and they're down-grading them to one notch above investment grade. >> the stock's -- still investment grade i notch above junk. at least the shares are not moving that much on the report. down fractionally. a lot of this already -- >> it's already in the stock as they say. >> it's been under a lot of pressure. 45 minutes, a little bit more, to go. dow positive today led by dow, i think, news of the merger is moving forward. that's up 18 points. everybody else in the red. transports down almost 100 points. >> dupont is the leader among them. >> not dow. >> thanks. >> also a leading stock today. flood of earnings after the bell tonight. we've got tesla, hp, square, l brands and fitbit among the companies expected to report tonight. we'll break down the numbers with our team of analysts coming up. also ahead, this is the fighter jet over which president trump waged a cost-cutting war before even taking office. we'll show you the high-tech ways lockheed martin has been driving down the price of the f-35 when we return. ♪ to err ihuman. to anticipate is lexus. experience the lexus rx with advanced safety standard. experience amazing. i love to see businesses that just started from ground up grow into further success. it just feels good to know that i'm helping someone else. my first goal is to learn about their business, what they're currently doing in their advertising. pull some research, create a great story. trying to figure out some way of building some kind of trust in a very quick moment. you have to love to work with people. our goal, without a doubt, is that all customers are satisfied before they leave. ♪ . welcome back. as we mentioned, the dow is the lone index in the green. that has to do with dupont. after reports its merger with dow chem is on track. dow chemical higher by nearly 4%. dupont up 3.5%. lockheed martin shares risen 11% since the yx despite president trump calling the defense contractor out for cost overruns. morgan brennen joins us with a rare look inside the lockheed plant where the f-35 that's been the hot-button issue for the president and lockheed martin is made. a fascinating look at the assembly of this jet, morgan. >> that's right. it's been fascinating. there is so much information here. take a look at this behind me. all three variants of the f-35 joint strike fighter jet are put together on this lockheed martin assembly line, a mile-long facility that used to make f-16 fighter jets. as the pentagon looks to bring the f-35 a's price down to as low as $80 million by 2020, the contractor is working to cut costs and cut costs aggressively amid recent criticism from president trump. automation is a big part of the economic equation that enables lockheed to make money even as prices fall. from auto drilling on the ford fuselage, which is five times faster than by hand. to robots that cut days off the coating process, for the paint that makes the stealth. production manuals to project onto plane parts cutting down on prep time and mistakes. investing in a new tech for suppliers as part of a cost-cutting initiative called blueprint for affordability. even so, with production of the f-35 expected to ramp up to nearly -- excuse me -- nearly quadruple over the next five years, even with all of this tech, even with all of this automation, even with all this focus on cost-cutting, the company still plans to hire another 1800 workers for this location alone over the next couple of years. so i think one of the key points to keep in mind here is that, as all of this manufacturing au automates, you still need people to take the fine touch to the details of how this plane is put together. >> morgan, i am wondering, if they had more pressure applied even at this point, how much more costs could they wring out of this whole process? >> i think that's the big question everyone wants to know including investors and analysts on wall street. $85 million to $80 million is the number the pentagon put out last week in terms of bringing the f-35 down by 2020. lockheed martin say they're working to make it a reality and do so while at least expecting to increase margins and increase margins potentially to double digits. right now i think they're in the mid to high single digits. so that's the big thing that everybody is focusing on right now. how do you bring costs down and do so more quickly than the price of the plane comes down so that the margins can continue to grow. remember, even though this program is almost 15 years old, the actual rollout of the plane is still in early stages. >> yeah. i mean, i was going to ask about margins but you answered the question right there. they're going to get squeezed no matter what. great stuff. enjoyed watching a lot of your reports from there today. thanks. see you later. 40 minutes left in the trading session. dow up 18 points. it's the lone gainer among the major averages and any positive close for any of the averages will be a new record high. right now just the dow. it'stesla and hp delivering numbers after the bell. we'll bring them to you as soon as they hit the tape. up next, judge judy looking to cash in on distribution rights to her show. could be pretty valuable. details coming up. you have access to the right information at the right moment. ♪ ♪ and when you filter out the noise, it's easy to turn your vision into action. ♪ ♪ it's your trade. e*trade. ♪ ♪ papa johns, better than expected kwquarterly earnings o yesterday. they say investors are focusing on the chain's disappointing quarterly revenue and north american same-store sales. stock down 7% today. ouch. here comes the judge. who remembers that? judge judy is reportedly looking to cash in on reruns of her popular syndicated show. in addition to the $47 million a year she makes in salary. >> $47 million a year! >> you can take a ton of money on a syndicated show if it's successful. and she has. the hollywood reporter says she negotiated the rights to her program library. very smart. as a result, that could be worth as much as $200 million. the paper reports that former bear stearns banker elizabeth barren has approached groups and distributors about a possible deal. judge judy's program averages more than 10 million viewers a day in its 21st season. that's astounding. cbs is producing new episodes at least through 2019, 2020. it reportedly passed on distribution rights to the library because, tire kicking among potential buyers over the years did not bring a big response. >> you wonder if that's the difference between it moving the needle for the company and moving the needle obviously for judge judy herself. sounds like an incredibly valuable library. where does she shop it too? you mentioned earlier binge watching. >> you have so many new distribution channels out there. think about the streamers, netflixs and amazons who might be willing to pony up. >> even if it's not netflix, i imagine one of the competitors will. cbs just launched an over the top service. >> yes. >> you might have thought it would be a great program for that. so -- >> exactly. >> i imagine it will turn out to have been a savvy move on her part. >> you go, girl! get the dough, judge judy. good job. if you negotiated "the closing bell" library? >> i didn't get the rights to those. "power lunch" i may have been interested in. dow up 28 points. mcdonald's plans to expand the dollar menu to beverages. details on the golden arches new moves. treasury secretary steve mnuchin will speak with "squawk box" in a first on cnbc interview tomorrow morning. the action begins at 7:00 a.m. eastern time. you won't want to miss it. oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. the first stock index ♪ (musicwas createdughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks. 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. it's your tv, take it with you. with directv and at&t, stream live tv anywhere data-free. join directv today starting at $35 a month. no extra monthly fees. on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claims centers are available to assist you 24/7. call for a free quote today. liberty stands with you™. liberty mutual insurance. welcome back. dow moving higher, now up 31 points. s&p down two. nasdaq and russell down 7. texas roadhouse tumbling on the heels of an earnings miss yesterday. same store sales grew 2% in the fourth quarter. below street expects of 3.1. they attributed the decline to the calendar shift of the christmas holiday. merry christmas fell on a sunday versus friday in 2015. it also assigned higher wages. shares down 13%, bill. all right. we have 30 minutes left in the trading session with the dow up 32 points, still record territory here. joining me on the floor. tim anderson from tjm investments. there are respected market watchers out there starting to get sweaty palms. jack vogel. art cashin, here. are we in irrational ex uberanc territory? >> i call it a rational exuberance. nothing is exciting. we don't have big gaap openings. a frothy ipo market. we have institutions that just continue to accumulate stocks, continue to increase their wading in stocks and rotate from sector to sector occasionally as we continue to go a little bit higher. >> so are you waiting for the classic euphoria that usually, typically ends a market move like this? is that what you are looking for? heavy volume? >> i think we are a long way away from ending the market move. we could have a pull-back of 3% or 4% here. we would still be at dow jones, 20,000, s&p 2200. bull-backs are healthy from time to time. i think any pull-back, 3% to 4% pull-back would attract a lot of buying. >> not there yet in your opinion. thanks. see you later. time for a cnbc news update. to contessa. >> house speaker paul ryan visiting mcallen texas to reborder operations. he saddled a horse and rode with border officials for the first time. thousands marched in ukraine's capital to mark the third anniversary of the maiden protests. it began at a memorial for victims of the 2014-revolution before moving to government buildings in kiev. a j.d. power study finds lexus and porsche to be the most dependable vehicle brands. it rated brands by the number of problems owners had. toyota, buick and mercedes-benz round out the top five. astronomers discovered 7 either-sized planets. nasa and a belgian research team say the cluster is 40 light years away. they circle around this rather dim, comparatively to our sun, dwarf star and they think -- this is so fascinating, these planets have the potential, actually, to be habitable. perhaps they already hold life or someday could hold life. i mean, kelly, it doesn't get better than that. >> what? >> we could one day -- humankind could -- i mean, i am just taking this to its logical conclusion. we could live there. >> i am sure this discovery has sparked a lot of conversation today. in offices and homes and elsewhere, about life elsewhere in the universe. so very casually, i said to my co-anchor in makeup a while ago, do you think there is life elsewhere in the universe. you said? >> no. >> she doesn't think so. >> apparently this is a controversial or surprising thing to think. >> humans are so special, it's only us? >> we haven't found anybody else so far. i am not saying it's not possible. i just don't think it's going to happen. >> oh, fine. now you're going to back off. >> i understand the biological conditions could exist. i don't think it will happen. >> you don't think there is another dow jones industrial average out there in the universe somewhere? >> i discovered so far i am apparently the only person who thinks -- >> as our production manager pointed out, they've determined a one in 60 million chance that the -- that you won't find life out there. you are willing to take those odds. >> do you just mean in your lifetime we're not going to find life? >> i am just saying i don't think it's going to happen. look, i expect elon musk and bezos will colonize a bunch of planets. >> the people -- they're just excited about the possibility of this being water. we're drawing it out into something much bigger and different. >> i am glad i'm not on twitter anymore. >> somebody on twitter said there is probably life out there. whether it's intelligence life is the question. >> you could say that about here sometimes. >> i wasn't going to go there. >> thank you, contessa. so mcdonald's reportedly plans to cut prices on some beverages, offering $1 sodas and $2 mccafè specialty drinks. >> pretty tasty. what's it mean for investors as competition in the fast-food sector continues to grow? joining us will slava and jonathan mays. will, a good move for mcdonald's? >> i think it is. in general we think mcdonald's is in the early stages of a multi-year turn-around. what's worked is listening to the consumer and what they want. all-day breakfasts has worked well. more recently we've seen the dollar beverages in coffee come out. the mac jr., another lower priced entry item. the dollar drink would be along the same vein to drive customer counts and drive the ticket up once they get in the store. i think it makes sense. >> jonathan, what do you think? i get the all-day breakfast. everybody loves breakfast at mcdonald's. lowering prices on beverages, does it bring people in necessarily? >> to an extent. c stores have been doing this for years to get customers in the door. why not mcdonald's. beverages have a higher profit margin than food, so franchisees are much more on board with something like this than, say, a dollar double cheese burger or something like that. >> jonathan, that's the interesting point. drinks are really profitable. if mcdonald's is going to make this move and take it away, won't that anger people and potentially undermine the profitability? >> still, to get customers in the door you need some level of discounts. they'll still make a profit off the drinks. where, if you're discounting -- if you're discounting the food, then you're more likely -- much more likely to record a loss on some of those items. i think that's been some of the problems at mcdonald's and a lot of quick-service chains in the past. >> will, i have said in the past on this program that i just think there are too many retailers out there. we're oversaturated. i think it goes for fast-food chains as well. there are too many choices for consumers. these guys are all just beating each other up to gain market share at the expense of profitability. and they're having to work on the margins by lowering drink prices to get people through the door. what do you think about that? you are positive on mcdonald's, but they have a tremendous amount of competition out there. >> i am. i think what's happened here is we have established a scenario where the big guys with the loudest bull horn to talk about value and something that's going to be attractive to get the customer in the door will win. the large-scale players will do that. burger king has gone after ten nuggetets for $1.49. they haven't been big profit winners but they get customers in the door and smaller chains can't afford to do it. mcdonald's is going down that path now. they can still make money on the dollar drink. hopefully they can get you to trade up to actually get something else to make it a more profitable ticket. from that standpoint it can separate them from the group. >> jonathan, is this a change? we've seen the four for four type battles over the last couple of years through the fast-food space. does this open a new kind of battle here? >> i think they've been sort of fighting the battle now for probably the past 14 months or so. they've been really, if you look at the traffic the past 18 months especially, just overall it's been very weak. and they've had to -- these restaurants have had to discount to get customers in the door. it's been a real major traffic battle. in getting back to the -- that point, you know, frankly there are too many restaurants. and this is the sort of thing that a lot of concepts need to do at this particular point to generate traffic. you need to have a certain number of discounts to get the lower-end customer. and it's just -- it's a very, very difficult market. this is just sort of one of the ways they have to compete. >> it sure is. all right. will, jonathan, good to see you both. thank you for joining us today. >> thank you. >> thank you. we have got 22 minutes left in the trading session here. looks like the dow is on track for yet another record closing high. >> 27,072 right now. >> 2,000 points above his -- >> 200-day moving average. >> impressive. president trump's words and actions towards mexico, of course, have been sharp. two top cabinet members are now heading south of the border. coming up we'll see if they can repair the strains on trade, immigration and more. snapchat's ipo promises to be one of the most celebrated of the year. for all the excitement on wall street, life is different at the company headquarters in venice beach. we'll take you there next. ♪ ♪ welcome back, with the dow up 24 points in record territory. checking other movers. toll brothers reporting a quarterly earnings and revenue beat. toll ceo says millennials are finally starting to buy houses as demand from baby boomers remains strong. norwegian cruise lines says it sees strong bookings ahead and notes a key milestone, its debut into the chinese market with the delivery of its norwegian joy cruise ship this summer. kelly. despite the big-ticket ipo it's expected to attract. if you visited the headquarters, you might not be sure you're at the home of the high tech giant. julie boorston is in venice beach with more. >> beautiful and sunny. a block from the venice board walk and beach. that's the only thing that makes snap's headquarters unique. it's comprised of more than 300,000 square feet scattered across buildings on six different streets in pricey venice, california. here are three of the buildings. the company warns in its s-1 that this diffuse structure may prevent us from fostering positive employee morale and encouraging social interaction. moreover, because our office buildings are dispersed throughout the area we may be unable to adequately oversee employees and business functions. while being in venice is beautiful and has its appeal, lower -- it also has the appeal of lower local competition for talent. snap warns of disadvantages of having to recruit remotely and requiring employees to relocate. venice real estate is expensive. there was a 14% increase in the median sales prices in the past year, and the price per square foot is about 25% more here in venice than in san francisco according to trulyia. it may make it tough for employees looking to buy here and make it tough for snap if they're looking to expand office space. back to you. >> you always have to put the risk factors in, okay. competition. something could happen to the ceo if he or she is an especially important part. i have never heard them put the headquarters as a risk factor. is that just lawyers working overtime, or do you think it really is? they're saying it could affect morale and the ability to control employees. give me a break. >> the morale of the employees we've seen seems pretty high. you see people walking out of the building with lunch. that seems to be where the cafeteria is. there are always a laundry list of risk factors, things that you couldn't imagine impacting the company's performance. it's pretty unusual. when you talk about tech companies you think of campuses like facebook and google's. this is unusual. do i think it will make people have low morale because they're separated? probably not. there are so many advantages to being here in sunny venice. >> they do well enough, they can build a new spaceship headquarters like everybody else. 15 minutes to go. dow up 25. s&p, nasdaq and russell all lower today. coming up, one of the challenges facing president trump is a shortage of cyber security workers. we'll talk to a hacker about the risks facing the new administration. still to come. is my headquarte. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. today's tesla earnings report will be the first to include results from the recently acquired solar city. >> from what we can expect as a result of the deal and more, cnbc's phil lebeau joins us with a preview. hi, phil. >> hi, kelly. when the numbers come out within the next half hour, many people will be focused on the loss for the fourth quarter. a loss of 43 cents a share. revenue coming in at $1.2 billion. what people should focus on is the guidance for 2017. looking at annual deliveries back to 2011 through 2016, you see they delivered 76,000 vehicles last year. how many will they deliver this year? and remember, they have already said that their goal is 500,000 in annual production by next year. so there is a big gap there. let's see what they give as guidance. many believe it will be 112,000 or 115,000 vehicles to be delivered. looking at shares of tesla, they've been on a tear especially over the last month and a half since the election of donald trump. they have been moving higher, and many have said, look, this is a company that manufactures in the u.s. jobs in the u.s. could be good with a trump administration. numbers in about a half hour. >> tesla's market cap is approaching that of ford's. >> yeah. that says something right there. you don't have to say anything else. think about that. ford, which has been around for how long and has how much capacity and worldwide sales, pretty much with the same market cap as tesla. >> ex traordinary. we'll see you soon. i just got the market on close orders. we'll call an audible and show the animation quickly. how good are you guys? art cashin telling us it shows an imbalance to the buy side of $250 million. enough, i guess, to keep us in record territory for the dow right now. as we head to the close, joining us here at post 9 today, ann, portfolio manager at wells and laura u.s. economist. i'll start with you on the fed minutes. i have seen two different headlines, one says they're dovish and the other says they are not because maybe they're talking about raising rates in march. break the tie for us. >> i don't think they were pointing towards a march hike at all. it's certainly a live meeting, but only a few people seem really motivated to hike then. and more of them really want to get more clarity on the fiscal outlook. so i think we're more likely, in the may/june sort of arena. >> still. >> you're looking at specific companies, ann, that you think are good investments in this environment. what are they? >> i do. it's been a tough market. everything has gone up so quickly. there are still opportunities out there that we're looking at. so a couple of the ones that i like have both top-line growth opportunities and earnings growth opportunities as well. medtronic being one of the companies, one of the largest med device companies in the world. they are finally starting to see some of their investments pay off, and the top line is starting to grow. they have margin opportunity improvement as well. trading at a below-market multiple. i think there is still room for growth. >> american tower. seems like every time we get a portfolio manager up here to talk about -- you're being very selective and you pick the best of the best. american tower. often shows up on the list, right? >> it's funny. it's a name that has been a brate executer in this space. it's the larger tower company. best long-term growth opportunity. trading at a discount both to the group, though, and to the market. internal things that are going on at the company still leave room for growth which is what we're looking for. companies with some control. >> on that point, laura, there are so many different things in in play in terms of what happens with the economy this year, growth, inflation, the tax plan and border adjustment tax. what are you factoring in right now in terms of how we get through the next couple of quarters? >> sure. the way the fed is responding to this uncertainty, they'll now be publishing fan charts basically showing the wide range of outcomes that are possible around their central case. that's coming in the march meeting. >> oh, boy. >> we look forward to that. >> in terms of our own forecast, we remain optimistic. we think the new administration is inclined to add stimulus for the economy. we think the economy already had momentum leading up to the election. and so we're above consensus and expecting decent growth. >> we have 2.8 in 2018. >> ooh! >> 2.8! that would be pretty good. >> that would be pretty good. compared to what we've been at. that would be great. >> warm oatmeal is what we're after at that point. >> thank you, both. good to see you. we'll come back with the closing countdown for this wednesday. after the bell, buckle up for a ratings onslaught. tesla, hp, square. jack-in-the-box, all reporting numbers. we'll have them as soon as they come in. you're watching cnbc, first in business worldwide. is happening before our eyes. shift in human history sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. partner with pgim the global investment management businesses of prudential. 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, it's easy to turn your vision into action. ♪ ♪ it's your trade. e*trade. ♪ ♪ coming up on the three-minute mark here as the dow continues into record territory. let's face it the fed doesn't have the impact on the markets it used to have. nonetheless, we were all waiting for the minutes to come out at 2:00 eastern time today. volume was lower than normal up to that point. wasn't a lot of volatility. in fact, after the minutes came out, the first blush read was that maybe it was a little hawkish. maybe they were going to be talking about raising rates in march. you saw the slight dip there in the dow there at 2:00 eastern time. but then it has since moved higher. in fact, the dow is still the only one of the major averages in positive territory, so we'll have eight straight gains for the dow and it will be a record close. the dollar index went lower, interestingly, after the fed minutes came out. you got that different reading. there was talk that maybe the fed would be discussing balance sheet issues. they didn't. they were talking -- focusing more on inflation and maybe they should be raising rates. the dollar does continue lower, 101.19. yields along the curve lower. 10-year. you'll see the move after the minutes came out at 2:00 eastern. oil went lower for different reasons. they're worried about an over-supply situation right now. you had a healthy pull-back for wti today of 1.3%. and it's still down to $53.60. then, bob pisani. we talk about earnings. plenty of companies coming out tonight, a full menu across different sectors. >> information coming out of tesla about the new car they've been trying to get out for a while. more information would be welcome on that. >> this will be the first report that includes solar city in there. >> that's right. >> we'll see how the integration is going. >> down day for exxon. every day exxon goes down. now down 10% for the year. with the s&p up 6%, exxon down 10%. all the big permia names. concho. clr, continental resources. double-digit declines in the last month or so. the market seems to be saying that they do not believe oil will move anywhere near $60 and that, therefore, for some of these names, valuations will be an issue, certainly for exxon there are assumptions that it will need oil around $60 to justify some of the earnings expectations. their earnings for 2017 expected to be twice what they were in 2016. the whole business is supposed to dramatically turn around this year. a lot of it predicated on higher oil prices. it's a tough situation. but when you get in exxon, second or third biggest stock on the s&p 500, down 10%, the s&p is up 6%. every day the divergence gets bigger and bigger, it starts to get noticed. >> especially when you consider the dividend these companies pay. if you're not betting on oil, you're going after the dividends. >> 3.5%, 4%. that's one reason the stock has gone up. >> thank you, bob. another record for the dow with a gain of 22 points. only needed a plus sign of any kind. stay tuned for the flood of earnings coming your way on the second hour of "the closing bell" with kelly evans. see you tomorrow, kell. [ applause ] . thank you, bill. welcome to "the closing bell," everybody. i am kelly evans. the green-eyed bull is here because the dow pushed higher, today, a 29 point gain. a lot of it has to do with one component. dupont. all the other averages actually closed lower today. not by much, but still, the s&p 500 down 3 points, 2362. nasdaq down .1% to 5860. the russell 2000 small caps fell nearly .5%. at 1403 for the small caps there. turning our attention to earnings this afternoon. they'll come in fast and furious. phil lebeau standing by to cover results from tesla for us. josh lipton brings us hp's numbers. dom chu will bring us results from fitbit and stern ruger. and we'll have jack in the box and l brands. heartland financial chief investment officer nancy and david nelson and msnbc fast money trader guy adami. welcome, everybody. guy, i want to talk about the markets for a minute. the dow manages to increase a little bit. everyone's attention is still on how overbought a lot of things are. everywhere else we've seemed to have taken a pause today. >> i hear what you're saying. i think it's been a constant refrain that the market is overbought. i could say we have been just grinding higher in a methodical way and things don't feel that frothy to me. banks, for example, they feel over bought. but if you look at -- juxtapose them to where they were trading eight or nine years ago, price to tangible book in my opinion, they're still relatively inexpensive. a quick example. in its heyday goldman sachs was trading 2.5 times tangible book, give or take. i am not suggesting it's going to get back there. right now tangible book in goldman is 175. if it gets back to 1.8, it's a $310 stock. though the moves feel like they've been pretty huge, in retrospect i think there is room to go on the upside. by no means, by the way, am i some raging bull. >> it's interesting to hear it from you, guy. nancy, the housing data this morning. existing home sales rose. talking about millennials buying so many. macy's said we hope people will stop buying cars and buy clothes again. what does it say, the strength in autos and homes, about the consumer? >> the consumer sentiment numbers have been awesome ever since the election. there is positive correlation historically with spending and the same with the small ceo -- small-company ceos, 85% correlation with gdp. we are optimistic. i agree with guy. i don't feel the frothiness. i think this has been a methodical, i wouldn't say disciplined but definitely a methodical move up. we are still finding attractive valuations. the banks are actually entering into our sell ranges and have begun to trim some of the financials. >> then where would you be buying here? >> still in technology. i have been on talking about facebook as now a value stock. we did buy some tesla in the fall. we don't ever want to own too much of that stock because it's so volatile. we own google. we've been picking away at apple. about six months ago, still holding it and buying it in new accounts. health care is also an area that we have been focused on and continue to add to. >> before we get into health care, since you mentioned technology, does that mean you guys will be a buyer of snapchat's ipo? >> i don't think -- that would be quite a trick for us. no, i don't think so. we use relative price to sales ratio for companies like tesla. that stock entered our buy range six months ago and we began picking away at it. we'll never own very much because we're large cap value managers and typically look for dividend and dividend growth. we'll own things like google, facebook and tesla when we get the opportunity. >> we'll come back to that in a bit. i guess it's tesla the technology company's results. david, nancy and guy were saying they wouldn't describe it as frothy per se. measured, even, talking about the market. would you agree? >> i think guy hits on something important. i think, if you're going to try to trade around this market and try to avoid, you know, a potential correction here, that's a two-step process. you have to get outright, but what's the trigger to get back in? 5%, 10%? i guarantee you down 5% it will feel like it's going to be 10. if you don't have a disciplined approach to get back into the market it's probably best to avoid that. i would like to echo guy's comments on the banks. the fed is doing their job for them. from what i can see in the minutes today, it looks like they're getting ready to hike and sensing inflation out there. that's good news for the banks and companies like bank of america will profit from that. >> let me ask everybody. guy, you know, beginning with you here, about what's happening on the fiscal side. the dollar today a little bit weaker. at $1.01. we'll see what happens with the tax cuts and border adjustment. how are you divining the political side of this right now? >> you can't. i am not trying to be vague or cryptic. you are asking me to talk about politics. president trump on one hand talks about how the strong dollar a couple of weeks ago was -- i am paraphrasing now -- killing us, meaning killing multinationals. that flies in the face of a 20, 30-year policy of a strong dollar policy. this is not a political statement. quite frankly, i am not certain he knows if he wants a strong or a weak dollar. i would suggest that a weak dollar is in everybody's best interests in our world but quite frankly, if you're somebody at home playing this home game you want a strong dollar for any number of reasons. to answer the question is difficult, quite frankly, i think the administration is probably divided right down the middle in terms of what they want. hang on one second. we're starting to get results. beginning with hp. josh lipton. >> reporting eps of 38 cents, versus expectations of 37 cents. revenue $12.7 billion versus expectations of $11.8 billion. looking through the segments, kelly, personal systems, net revenue up 10% to $8.2 billion. operating margin 3.8. printing down. q 2 guide. net eps. 37 to 40 cents. in line with the street model. maintaining full-year guidance. i had the chance to speak with the ceo dion wiseler about the quarter. he said they had strong momentum globally, not just one region. he said every region saw top-line growth. executives calling out growth in emia in the quarter. the focus is on the printing supplies business, ink and toner, that's the biggest profit driver. saying they remain confident that supplies, revenue growth would stabilize by the end of 2017. he says he remains confident because of what's going on with the install base and usage. for the pc market. he didn't disagree with third party analysts that said pc units could see declines in 2017. he noted this is a $330 billion market. i asked him what are the key drivers to keep the market flattish in 2017. in part he pointed to the upgrades. there are around 600 million devices around five years old. the strategy for hp has been to focus on the more profitable parts of the pc business. i asked questions about the possible tax reform. cash repatriation. the ceo saying they do not chase ghosts at hp, inc. early days for the new administration. he said they would be thoughtful in an approach to changes that may or may not take place. back to you. >> josh, the shares up nearly 2%. nancy, what do you think? decent numbers relative to the expectations in personal systems and printing? >> yeah. we have had the best earnings season in eight quarters, so this is not a huge prize. it's not a huge beat. this is a company that feels a lot like an annuity to me. trying to keep the core business from shrinking while they find other ways to grow. we don't own the stock. not to say you can't make money in it. we got out of the stock. it's a great company undoubtedly and that was a good quarter to be sure. >> guy, what about them calling out strennigth in emia. we've seen them hold up pretty well. >> europe since brexit has been unbelievable. for them to call out strength in europe and the emerging markets makes sense. everything that's been going on, quite frankly, leads to their dialogue and context right now. hard to talk about the stock because i am in the room the size of a lavatory on a jetblue flight. i'll say this. the strength they're seeing in europe, i think you'll see it across the board as we continue through earnings season. >> we have. >> absolutely. we'll come back to this. let's get these earnings from square out here. deirdre bosa has that for us. >> a quick look at what the stock is doing in afterhours. up 6% at one point. i believe still up more than 5% at this point. square. this is the payments and small business software company, reporting a loss of 4 cents a share. revenue -- gaap revenue coming in better than expected. slightly better than expected at $452 million for the quarter. $450 million was expected. the gross payments volume, an important number with these payments companies. that came in at $13.7 billion. up 34% year over year, slightly higher than the street was expecting, which is $13.65 billion. stock up 5%. it has been a very good start to the year for square. it is up about 11%. was up until after hours up about 11% so far year-to-date. also, the street, i want to mention, has been quite bullish on this company. 17 buy ratings, 11 hold. we'll continue to go through the earnings report and look at things like square for retail, launched this past quarter. investors excited about square capital. we'll speak to sara fryer, the cfo later today on squawk asia. >> david, thoughts on this one? >> companies like this, it's not about the earnings. there are very little earnings to speak of. it's all about the growth. i think that's what investors are excited about, hence all the buy ratings. the stock has pretty much recovered all the way from about a year ago. it's not my kind of stock. i need a little bit more on my plate for something like this. i can understand why it's up in the aftermarket right now. >> i'm jumping in. tesla's results are out. to phil lebeau with the results. hi, phil. >> tesla reporting a loss, non-gaap loss of 69 cents a share for the fourth quarter. revenue coming in a little better than many were expecting, $2.28 billion. as we said earlier, it's all about the guidance with tesla, what it expects to deliver in 2017 and in particular with the model 3. because the company is adapting its production lines, adding production of the model 3, the company is not giving full-year guidance for 2017 deliveries. it saying it expects to deliver 47,000 to 50,000 model s and model x vehicles, basically total production delivery, of up to 50,000 in the first half of this year. again, no full-year delivery guidance. with regard to the model 3, the company says that it is comfortable that the launch is on track for the second half of this year. that's the most we're getting from tesla. loss of 69 cents a spare. revenue coming in a little better than expected. in terms of guidance, kelly, if you were expecting a full-year number from tesla, not on the earnings release. we'll see if it's on the conference call later on. right now tesla saying it expects to deliver between 47,000 and 50,000 vehicles in the first half of this year. extrapolate that out, deliveries topping 100,000 if things go as planned for tesla this year. back to you. >> on the high end. shares up 1.3%. nancy, it's not often we hear a value manager say tesla entered their screen. as we look at the performance of the shares up 30%, 40% since the last report when they tried to beat the numbers and put up good results, maybe taking the horns in a little bit in terms of the outlook for 2017. does that undercut the stock's performance from here? >> well, i don't think -- probably. i don't think it can continue to move in -- at the pace it's moved over the last three months which is just luckily, when we initiated. we didn't get an opportunity to buy much more than 1% across our portfolios. i wouldn't be adding in here. if there is a significant pull-back we'll take another look. this stock is much like what david said earlier. it's a long-term stock for the growth potential, for figuring out the solar roof and the solar city integration and trying to determine, you know, what the model 3 delivery will be. we wouldn't be jumping in here, but we like the stock for the long term. >> david, what are your thoughts? >> this has nothing to do with being a stock. this is the elon musk show. it's about his vision here. it's not surprising that there is no full-year guidance on the vehicle delivery. because they probably don't even know what it is. this stock, you know, really discounts that no other company out there, gm, ford, even bmw, will be really a competitor for them. it's a great story. and maybe this will work out. a lot of things for elon have worked out in the past. for me right now, you're buying a story. there are certainly no earnings to speak of at this point. i am not sure how you grow into this valuation when you look at the projections. >> let's bring phil lebeau back in with more. phil. >> hey, kelly, we have a little more color from the tesla investor letter regarding the model 3 and where the company is as it moves towards first delivery, expected at the end of this year. company says it has begun building model 3 protetypes, this has been reported and expected for some time as part of the ongoing testing of the vehicle design. initial crash test results have been positive. all model 3 related sourcing is on plan to start production in july. so there you have it. the company saying it still plans to start model 3 production in july. remember, the company has said sometime towards the end of this year it expects to begin deliveries of the model 3. we don't expect large volumes, but if they can hit that target, that will be certainly something investors want to see. tesla saying it expects to begin model 3 production in july. kelly. >> shares still positive after hours. thank you. to the results from fitbit with dominic chu. >> shares are up about 3.5% right now. about 310,000 shares of after-hours volume after the stock fell 2.5% in the regular session. we have numbers out that generally missed analyst estimates. the loss is 56 cents a share, worse than the 50 cent loss analysts were looking for on average. revenue falling slightly short. $574 million. analysts looking for $576 million on average. i will say this as a caveat. fitbit did give a little bit of guidance back at the end of last month. we maybe expected a little bit of this. they do, however, offer some forecasts. they see their first quarter, current quarter, loss between 18 to 20 cents per share. analysts on average looking for a 15 cent loss. first quarter revenues up $270 million to $290 million versus estimates for $308 million. it doesn't look like analysts' estimates were met across any of the categories. however, we're talking about a stock that's fallen 20% year-to-date and off about 65% over the last 12 months. you wonder maybe some traders and analysts have already factored this in. right now the shares are holding steady, 320,000 shares of volume. >> david. >> yeah. on this company, you know, the perception has been the wearables space has been weak and that was maybe a problem for apple as well. garment had blowout numbers this morning. hit it on every line item. it was clear that enthusiasts are turning to that product. it may be the company, not the product. >> i like the gps running watch. sometimes i have trouble working it. >> guy. >> stay with square on the long side. in terms of tesla we have been bullish on the show. i'll say this. at some point, and i don't know anything, but they have to do some sort of capital raise. if it's in the form of an equity offering you buy that secondary. every single time, bar none, it's been a great opportunity. you stay long in the stock, hope they do a raise and buy it on the dip. thanks for having me back. it's been a blast! >> it's been a pleasure. thank you everybody, guy, nancy and david at this hour. a ton of earnings to get through. more to come. stick around and catch guy ed a adami. two stocks in the sector with more room to run. we'll have the names and more at 5:00 p.m. tesla shares higher after reporting better than expected revenue. up next, three analysts with very different takes on the stock, one hedge fund manager says the stock is in a bubble. president trump delivers his budget in a few weeks' time. we'll preview the possibilities. stay with us. did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back. an earnings alert on two restaurant names. susan li with the numbers. >> jack-in-the-box down in after hours by close to 12%. earnings missing for jack in the box, putting it in at $1.18 in the quarter. less than forecasts. revenues missed. $488 million in the quarter. looks like comps also hurt the stock as well. co-owned jack in the box comparisons -- comparables only up a mere .6%. estimate looking for 2.6%. a wide miss. they also own their mexican eats name. the qdobo, down 1.4%. people looking for an uptick in the quarter. they're guiding for pretty weak comps for the second quarter, lowering fiscal 2017 as well. cheesecake factory have beaten estimates six quarters in a row. eps in line. match estimates 67 cents apiece adjusted revenues beating and costs in line. steady as she goes for the stock. back to you. >> interesting stuff. i can't believe qdoba didn't do better. tesla reporting quarterly results. that stock trading higher at last check. 1-2%. up 1.7%. bringing in ben callow and jamie albertene from consumer edge research also with a buy. and mark stanfield who is short tesla. welcome, everybody. a lot of people, mark, have pointed to the positives in the report. what do you see as you look through the results? >> i see that model s and model x sales have stalled out. there is no growth. they sold thousands fewer units in q4 than 3. it doesn't look like they're guiding too much growth. that growth story is over. before the massive luxury electric competition arrives, which happens in like 12 to 18 months. audi, jaguar, mercedes. beautiful suv crossovers, $20,000 less expensive than the cheapest model x. >> you're shorting those. been a brutal three months for being in that position. >> it has been brutal. the whole story is the model 3. if i can briefly say that tesla is spending about $80,000 to build each car now. there is no way in the world it will be able to build and sell a model 3 that starts at $35,000 without losing a ton of money on it. >> let's bring in ben. you are much more positive on the stock. you want to refute any of those points? >> sure. i think on the s & x volumes. first half looking for $110,000 for the full year. it's right giving first-half guidance and revisiting as the year progresses because of the ramp on the three will be strong. i think with the model 3 production ramping up at the same time they are producing s and xs out of the factory that's okay. they said in the quarter they received record-high orders for both s and x up 50% year over year. i think it refutes the first point. as far as the model 3 goes and the costs of production. i think this is a case of looking to gm and the bolt, which i don't think is going to be competition at all. i am not sure tesla is competing with the luxury vehicles. they've been out-competing bmw and mercedes on the s class and 3 series for the past few years. looking at gm as far as the manufacturing expertise, i don't know if that's the right way to look at it anymore just because the bolt loses money. the other thing, on the funding expectations. guy was on in the last segment and said buy the deal. i think that is an overhang here. i do think they'll probably be out to market the next three to six months after they show investors they've derisked the model 3 ramp. that's a big catalyst for the stock going forward as they fill up the balance sheet with cash and de-risk as you ramp up production. >> mark. >> when i bring up competition, ben is referencing models that have absolutely nothing to do with what's 12 to 18 months down the pike. i am talking about pure battery electric cars, long range. inontari interiors that make tesla's look like a 1990s acura. they're beautiful. every long in the stock is ignoring what's going to be out in 12 to 18 months. >> jamie -- >> people aren't lining up 800 at a time for a car they haven't seen or driven like they are for tesla's. that's where the comparison breaks down. >> what tesla are they lining up 800 at a time for? >> the model 3 deposit. >> talking about the lexry end. q4 were sales down thousands. i'm talking about s and x. how can you argue that growth has not stalled out? >> i think eventually they'll reach a point where they stall out on growth, like you say. back in 2013 they couldn't sell 20,000 cars. they did. then they couldn't sell 35, they couldn't sell 50. they couldn't tell 90. they have outperformed every year. now it's more about the model 3 and that's why the stock has run 70 points in the last few months. >> jamie, do you want to address the issue about the next round and what they'll deliver. >> let's talk about you and me, baby. 50,000 units for the first half, my friend. not for the full year. ramps to 100,000 for this year. on that cadence, 20% growth for the model s and x looking ahead to 2017. >> the runway was already -- >> they have 400,000 reservations for the model 3. third of all, the dealerships are the problem with audi, porsche and mercedes. they don't want to sell the i 3. don't know how to sell the i-8 or the bolt or volt or leaf. or any other vehicle down the road. the utter disaster the competition -- the bolt is a total disaster, mark. by the way, the only reason the bolt -- >> it's outselling the model s now. >> first of all, the bolt is only selling in california predominantly to placate cafè standards to sell more suburbans and silverados. gm needs to make fewer vehicles, not more. where do they get the lithium for the volts and bolts? tesla has a massive giga factory sitting in nevada. i would encourage you to visit. the vertical integration here is what gm and ford were 100 years ago and why they worked 100 years ago. that's why the model s is the apple iphone to everybody else's competitive dynamic here on the luxury vehicle front. talk about competition and residual values. three years ago all the bears were saying they wouldn't hit their targets. we're trading well above the residual value valuation. >> have you looked at ebay for used teslas? >> i look at it every day. cars.com, ebay, tesla motors.com. i talk to penske and auto nation, the dealers and manufacturers. i know the competition. i know where you're going with this, you're wrong. my friend. i apologize. >> with all due respect, i'm happy to show you the numbers. back to s and x. you said they guided to 100,000. 20,000 in q 3. that's the run rate from last year at the end of the year. there is no growth in s and x. alternatives facts are for kristian, not f -- cnn, not cnb >> mark, we can talk about this off-line. what i see are reservation orders up close to 50%. run rate of 47 to 50,000 for the first half of the year. multiplied by two, 100,000 -- they did 80,000 last year. 20% growth. >> you're doing the year. i'm doing sequential quarterlies. this is a growth stock. >> before we go, ben, please address solar city. how it's in the numbers and how much it is a drag if it is on performance? >> i think the solar city part of it comes out better than people expected. that would say it would be a huge cash drag. they added cash to the balance sheet. in q-1 they will too. it's coming in better. they'll ratchet down the number of deployments out there to keep cash going and being more creative to the model. that and the energy storage side were a positive surprise. it's about the model 3. the second half ramps better for the s and x to get to the numbers mark is trying to find. >> how will they build a model 3 and sell it profitably starting at 35 k when they're spending $85,000 to build the car. the battery pack savings. 35-kilowatt -- how will they build a profitable model 3? >> with volume production. right now they're building, you know, a few model 3s right now. they're going to ramp production to a number -- >> all right, gentlemen. this has been a pleasure. >> i know where the stock is there, mark. watch out for that deal, buddy. >> jamie albertine, mark spiegel. great to have you. appreciate it. time for a cnbc update with contessa brewer. >> here is what's happening right now. the trump administration could issue new guidance to schools regarding transgender student rights. press secretary sean spicer reiterated, despite the guidance president trump believes such issues should be decided by the states. >> as far as the conclusions go, i have made this year and the president has made it clear throughout the campaign that he is a firm believer in state's rights and certain issues like this are not best dealt with at the federal level. johns hopkins say people with heart disease risk factors in middle age are at an increased risk for developing dementia. 41% higher among smokers, 39% higher with high blood pressure and 77% higher with those who have diabetes. major league baseball saying good-bye to the intentional walk. to speed up the game, pitchers won't need to lob four pitches to home plate to draw the walk. a signal from the dugout will give the batter a free pass to first. that should decrease the time spent watching baseball to like, what, seven hours per game? >> shave five minutes off. >> long, long games, baseball. >> there might be more in store. we'll see. all right. contessa. thank you so much. president trump sending top white house aides across the border to fix relations with mexico. up next, we'll look at the uphill climb they have, what they discussed and the potential impact of trump's illegal immigration crackdown. the president also wants more stuff made in america. coming up we'll look at how easy or difficult it will be for apparel makers to shift production back to this country. both on the track and thousands of milesway. 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. immigration crackdown. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. the president also wants what's happening here? this is my new alert system for whenever anything happens in the market. but thinkorswim already lets you create custom alerts for all the things that are important to you. i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. welcome back. secretary of state rex tillerson among the top white house aides heading to mexico to try and improve relations with our neighbor to the south. kayla has more. >> secretary tillerson and department of homeland security secretary john kelly are on their way to mexico where discussions with president pena nieto and other officials will concern the implementation of recent executive orders on immigration policy. according to sean spicer, who today denied it's a trip to repair frayed relations between the two countries' presidents. >> i would argue that we have a very healthy and robust relationship with the mexican government and mexican officials. president pena nieto has echoed that as well. i think the relationship with mexico is phenomenal right now and i think there is an unbelievable and robust dialogue between the two nations. >> homeland security memos this week requesting 10,000 more enforcement officers and 5,000 more border patrol agents. increasing head count in i.c.e. by 50% and border patrol 25%. dhs says an uptick in removals of illegal immigrants strained the agency. levels have been flat for the last couple of years. kelly said the first priority is on illegal immigrations and the 800,000 to 900,000 immigrants' whose removal have already been requested. but also visa reform, namely hb 1 visas. it's clear the administration has a long to-do list where this is concerned. >> that is true. kayla, thank you. earnings from lbrands are out. >> not a pretty report card. they own victoria's secret and bath and body works. a miss here. we got a preannouncement as you pointed out earlier this month. looks like earnings came out above those estimates. guidance we got earlier, revenues did miss. here you go. here is the ugly part of the report card. a sales decline in the mid to high teens for the february comps. and that is way higher than the estimated mid single-digit decrease. also looking at guidance going forward. eps way off as well. looked for basically 361. what analysts expected for the next quarter. they've now given us a range of 305 to 335. as you see, it's not looking pretty for l brands. back to you. >> it is certainly not. shares down 9.5%. susan, thank you. 20 days. that's when premiumsident donal trump is aiming to release a budget. coming up we'll hear from a former hacker on how the white house should be tackling cyber security. ♪ [dramatic ♪ ic begins] ready! charge! charge! (in chinese) charge! let your reign begin. evony, the mobile game. download now. welcome back. another day, another record high for the dow. today it was up 32 to 27,075. dupont helped the dow close in the green but everybody else was down. though slightly. the s&p down 2. nasdaq 5, russell about 6. checking on the names moving after hours. we have had a bunch of earnings. a lot of movers to the positive side. tesla up more than 1%. hp up 1%. square up more than 5%. fitbit is even up a percent. trump holding a working lunch with members of the cabinet and key adviser to discuss budget plans. he touched briefly on health care in his remarks. john harwood has been speaking with congressional republicans about what they're expecting regarding the future of obamacare. he joins us now. john. >> we've been waiting for two things from the obama white house. one is the phenomenal tax plan he has talked about and the second thing is that better, cheaper alternative to replace obamacare that he campaigned on last year. here is what the president said in january about when we would see the obamacare repeal and replace. >> we're going to be submitting, as soon as our secretary is approved, almost simultaneously, shortly thereafter, a plan. it will be repeal and replace. it will be essentially simultaneously. it will be various segments, you understand, but will most likely be on the same day or same week, probably the same week, could be the same hour. we'll do repeal and replace. >> now, i misspoke earlier. of course i was talking about the trump white house. here is the news. that secretary. tom price, who now has been confirmed, told house republicans last week the administration will not be submitting a repeal and replace plan. instead, they're going to work with house republicans on their own plan. now, here is what the president said on february 9th about his plans on tax reform. >> we're going to be announcing something, i would say, over the next two or three weeks that will be phenomenal in terms of tax. >> now, we are two weeks later now, and house republicans also tell me they do not expect to get a tax plan from president trump. instead, they have been working on a tax plan. they proposed it during the campaign. trump had something similar. they say he is providing input into their plans. is there a consequence to the trump white house's failure to produce its own plans? two potential consequences. both could succeed. one, it's harder to unite the house and senate if the white house doesn't take a firm stand. the members of congress voting on risky provisions face the risk. if the white house hasn't offered its own they could turn on risky propositions and make it difficult for the republicans. >> a lot for them to think about. john, thank you. treasury secretary steve mnuchin will join "squawk box" tomorrow at 7:00 a.m. eastern time in a first on cnbc interview, touch on many of these subjects. don't miss it. energy pipeline stocks lower today. the deadline for protesters at the dakota access pipeline has come and gone. cal perry is there with the latest on the situation. >> the original deadline of 1:45 ago. we learned from law enforcement in the next 15 minutes they're planning to enter the camp and, as they said, anyone remaining in the camp is subject to arrest. following that, tomorrow there will be a massive cleanup underway at the standing rock camp. as you mentioned, the pipeline about complete. energy transfer partners saying they should have oil flowing in the next 30 days. kelly. >> cal, thank you. a situation we'll all keep an eye on. 2016 a record year for data breaches. up next what companies and consumers can do to protect themselves from cyber attacks. first, donald trump pushing his made in america message. we'll look at the challenges facing retailers in hiring and manufacturing in the u.s. you're watching cnbc, first in business worldwide. ♪ when you have $7.95 online u.s. equity trades, you realize the smartest investing idea isn't just what you invest in, but who you invest with. ♪ isn't just what you invest in, but who you invest with. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. welcome back. president trump is pushing his buy american, hire american message across various industries, while some manufacturers have pledged to keep jobs in the states, retailers may have a harder time making the shift. courtney regan joins us with a look. >> most of the 740 workers here at this factory have gone home for the day, but not before making 1100 suits. that's pretty rare for a u.s. brand these days. when it comes to u.s. manufactured clothing and shoes, shoppers are hard pressed to find an abundance of made in the usa apparel in stores because nearly 98% is made abroad according to the american apparel and footwear association. there are a lot fewer u.s. textile mills and factories than in years past. skilled sewing labor at low cost is basically nonexistent here. we just don't have the workers with the skills necessary to do it. >> coupled with years of deflationary prices and you have a set-up for american manufacturers to make it work in order to produce garments in the good old us of a. but if you can make it work, the supply chain can help a company react more quickly to changing consumers' taste. tailor brands bought them in 2013 but still the entire coil, only 13% of the products are made in the usa. >> i'm shocked this is still happening. that itself is eye opening about this report. >> thank you so much. donald trump citing cyber security. the president's executive order to freeze federal hiring could have consequences on the government's ability to fight cyber attacks. that's next. that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise up next, a form he hacker tells us what the white house needs to do to protect america against cyber attacks. so what else is new? how's your mother? umm..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. ♪ ♪ ♪ only at&t offers you all your live channels and dvr on your devices. data-free. entertainment. your way. only from at&t. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley welcome back. new research shows u.s. companies and government agencies saw more than 1,000 data breaches last year. that's a 40% increase from the year before. for more on what can be done from cyber attacks, let's bring in the hacker and author of the new booker the art of invisibility. i feel like i should be careful around you. in all seriousness, there are a lot of angles. because it's been in the news. let's start with the administration. is emphasizing cyber security. what are the main things from your point of view, you're making sure. >> i believe they need to get a team of people to make sure that actually get pointed. like a cyber security committee of really good experts to help donald trump figure out what to do. isn't at this time best way? he simply doesn't. >> i'm thinking of giving up the computer at this point. i think they need to bring in a really good team of experts that know what they're doing from an administration side, a technical and a process perspective. >> do you know any? >> yeah. me. so i do pen testing. companies hire myself and my team to actually hack in to get in physically, to exploit people who use computers. >> did you this successfully for dozens of major corporations on your own in the first place. are they still as easy to penetrate today? >> pretty much. i did this for a hobby. it was more of an intellectual challenge. i got myself into a lot of hot water. ended up in federal prison because of it. now i get to do the same thing to help companies. they give me authorization to do so. and we get in 100% of the time. so if i can get into business computer systems, government computer systems, so could the bad guys. one of the number one ways in was the way john podesta was hacked. >> by saying you have a package delivery. click here. >> it was a fake google message. it came from g mail saying it was compromised. he put in user name and password. game over. and they were stolen and sent to wikileaks. the reason it worked? he didn't have two factor authorization. you put in your user name and password. if it is valid, they send you a code. >> with every e-mail? >> no. just to sign into your account. >> what is one thing companies right now listening can and should do? what is one thing rest of us who are just our wi-fi to everything at home should be doing. >> companies have to mitigate these fishing attacks. make sure they're secure. as a consumer, one, five things. use a password manager so they're be thinking of the password. >> i hate that. they're so annoying. >> and it creates random passwords. you only have to remember one of them. there should be two factor authentic indication. you have to put in the code. if they're ever using wi-fi, we're in new york city so there's lots of free wi-fi. you can subscribe or the to have a vpn service. >> all a pain in the butt. if anyone can simplify it, it's you. we're glad you're here. best luck with the new book. author of the new book, the art of invisibility. "fast money" begins right now. >> live from the nasdaq market site overlooking new york's times square. tonight, check out shares of tesla. jumping after hours. there they go about 3%. conference calls underway. we'll bring you the latest headlines. we're going to tell you how to cash

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