it's unbelievable. >> stocks soaring after the president's address to congress last night. we'll go over what he said that has investors so excited today. up 350 points. 12,000 f 21,000 for the first time ever. we passed 20,000 35 days ago. it was january 25th. >> seems like calendar days? >> i guess. i don't know. >> it's been so fast. >> it's very fast. >> the quickest one ever, was it 21? it was back in the '90s. we have dow components like apple, home depot, 3m and visa trading at record levels. financials leading the rally. goldman, jpmorgan and wells fargo hitting all-time highs. >> $3 trillion of wealth has been created in the stock market since the election. we'll talk about whether there are still opportunities out there in this market. >> that's a lot of dough. >> not a bad day to price your ipo. we're expecting the parent company, snap, to come out after the bell today. we'll bring it to you as soon as it happens. >> with the dow powering over 21,000 for the first time ever. insights from bob pisani who has been walking the floor today. robert. >> 20,000 to 21,000 in less than five weeks, bill. five stocks account for half of the gains. number one, apple. about 120 points in the gain in the dow industrials. the,00 goldman sachs. about 110 points in the dow's gain of the 1,000-points gained. 11%. number two. boeing. all the aerospace stocks have been huge. boeing up dramatically in the last five weeks. that's 105 points of the gain in the dow. the big industrials that are out there doing so well on the trump trade. 3m is up about 85 points. added 85 points to the 1,000-point gain in the dow. johnson & johnson almost 80 points since january 25th. add it all together, about 500 points from those five stocks. only laggards. a little bit from exxon and chevron. not that much. exxon is probably 20 minus points on the dow and chevron is probably about that. but that's about it. almost no real losers since the dow passed 20,000. back to you. >> bob, we'll see you soon. to the key takeaways from president trump's address last night. ylon moy is in washington. >> he livered on optimism and promised big action on a slew of issues that could have a big impact on business. tax reform is what we've been watching. markets believe maybe consensus is builtediding in washington f something, anything, to be done. >> my economic team is developing historic tax reform that will reduce the tax rate on our companies so they can compete and thrive anywhere and with anyone. it will be a big, big cut. at the same time, we'll provide massive tax relief for the middle class. we must create a level playing field for american companies and our workers. have to do it. >> that is just the start of the agenda. president trump also talked about infrastructure. calling for a trillion dollar investment that rev rajs public and private money. that's one issue where he might be able to pick up democratic support. don't forget about deregulation. he is creating a task force inside each government agency to weed out unnecessary rules and has mandated two regulations have to go for every new one written. the president is holding a legislative strategy session at the white house right now. it will be up to congress to turn the president's rhetoric into reality. back to you guys. >> good stuff. thanks. see you later. can't wait to get to our closing bell exchange today, talk more about these crazy markets, the all-time highs. kim forest, eric noel and mr. arthur cashin and rick santelli. it has been a crazy day for the fixed income and currency markets. we'll check into chicago in a moment. arthur. two people i respect very much. you and jack vogel recently expressed reservations about valuations in this market. does this begin to change your mind or add to the reservations? >> the bulls are rather unrepentant on ash wednesday. look like they've given up down-ticks for lent here. we started out this morning with over a billion two dollars to buy on balance at the opening. a lot of people thought some of this might be coming from offshore. but we rallied up to and through the european close. that indicates this is very much a home-grown rally and will continue. i agree with brian sullivan that it will be interesting when we get to the changes in the debt ceiling, et cetera. they won't be able to talk their way through that. that's going to need action. so the bill is still yet to be paid. the president's speech last night was masterful in the sense that he looked very presidential, and that seemed to catch his opponents by surprise. but legislatively they have a lot of work ahead of them. >> eric, we were watching interest rates move up over the past 24 hours. a lot of positive economic data globally contributing to that too. this keeps happening, is that a threat for the rally? if the fed starts hiking do stock prices fall? or do we see a replay of earlier in the 2000s? >> i think what we're seeing with rates and other economic things is that people believe that the tax cuts are coming. we recent will i did a survey of institutional clients, and many of them said the two most important things they cared about were the reduction in corporate tax rates and the reduction in rates for repatriating income that's trapped offshore. and what they heard last night in the speech was, that stuff is going to happen. the next two things they cared about were infrastructure spending and deregulation. they heard those last night as well. so you can see that getting behind this rally today and driving stock prices higher. >> kim, what are you doing with this market? is this the kind of a rally that wants you to even add to positions or start to take some money off the table? >> a little bit of both. there are opportunities everywhere to buy and sell. let's talk about selling first. it's -- we believe it's a very good idea to look at your portfolio and look for overweight positions, even though you may love a company, it might be time to sell a bit of it down to a more manageable level. why not put those dollars into what you -- what is unloved right now. i would say retail. let's take a chance on retail. i understand there is taxation issues out there. but there are some retail that's very unloved and would take a look at that. >> like urban outfitters, kim? >> like urban outfitters. it's not mall-based. macy's is showing us, and to a lesser extent, jc penney's is showing us the mall is dead. anthro. free people. urban outfitters. these are not mall-based. give it a whirl. >> rick, a ten basis point increase for the ten-year today. do you see that as a response to the speech last night or to all of the hawkish comments from the fed members that this some people convinced that we're going to get a rate increase in two weeks? >> i think we are going to get a rate increase in two weeks. and i am sure that mixed into some of these moves there is fed issues. but i also think there are equity issues. but let's frame this simply for everybody. we are up, nice, smartly in the equities. we're unchanged for the jeer ye tens. the dollar is lower. the euro is still higher on the year. all this happening, of course, as u.s. policy -- and my hat is off to the federal reserve. we see a lot of things out there that you're supposed to pay attention to, like what's going on with consumer confidence and a number of other variables. the fed is noticing those animal spirits, and i think that's a wonderful thing. but we all still notice that first quarter gdp outlook is on the weak side considering recent data. i am very optimistic. it doesn't mean there aren't issues but i will still -- i will still hammer this point home. what's going on with equities is repricing. i said on february 17th that, if the measured move works, we should get to 21,576 on monday, the 6th of march. still looking pretty good. >> eric, it's also worth emphasizing how strong the corporate credit markets are. seeing insurance against defaults plunging. the rates plunging. spreads plunging. people just can't seem to get enough of this stuff. what are you seeing there? how much more might that support stock prices? >> i think a lot of it goes to support stock prices out there. as the market is evolving and processing this information about where interest rates are, where the strength of the economy is, where they think tax rates are going and how that's going to go, you are seeing people saying, look, we think the ten-year will get to be about 2.85% on average of all responses through the end of the year. in their heads that's a very reasonable number. and it goes to continue to support this rally that we have been seeing in the marketplace. >> arthur, what catalysts do you see? we don't have the fed for another two weeks. our jobs report won't happen until the end of next week. in the meantime, or whenever, what catalyst do you see, and what do you think it will do to the market? >> i think some of the focus may begin to shift back toward europe. you've got important elections coming up there. there are some potential worms for the apple. you look at car loans. delinquent car loans are beginning to rise here. i don't think on their own they can pull things down. but they are a warning signal. so i think we'll start to look at geopolitics and some economic data. >> all right. we will see you later this hour -- hear from you, at least, when we get the market on close orders. thank you, everybody, for the insightful thoughts on today's market action. 50 minutes to go. dow up 337 points. s&p up 35, transports up 206. nasdaq is up 1.3%. 78 points. the russells are back with a veggens of 1.8%. wells fargo stock at a record. top executives there facing new consequences from the bank's fake account scandal. details on that coming up in a moment. then snap goes public tomorrow here at the stocks exchange. the owner of the messaging app is expected to price after the bell. we'll bring you the number as soon as it hits the street. you are watching krecnbc, first business worldwide. what's critical thinking like? 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and now above 21,000 for the first time in history. >> made it feel easy. so much focus on 20,000. and we're right above 21. >> for the traders, the professionals who follow the s&p. that's been around 2400 for the first time in history. the dow has been the big performer. though the russell is the best performer today as you pointed out. is this me? okay. mcdonald's getting a pick-me-up after the fast-food giant unveiled a new global growth plan at its investor meeting saying it's focusing on digit the enhancements and testing delivery methods. the board also approved a new three-year cash return target of $22 billion to $24 billion. company expects sales to grow between 3% and 5% a year starting in 2019. the stock up 1.3% today. >> wells fargo is hitting a record high today. now we have details on top. wells fargo executives hit with costly consequences from the fake account scandal. >> earlier today wells fargo announced eight members of the executive committee would get no cash bonus for 2016 and forfeit equity awards received since 2014. tim sloan and the cfo included in the list with a total loss in compensati compensation totaling around $32 million. the board approved a mission towards promoting accountability and putting the company first. it was not related to findings of improper behavior. that's in contrast to the four senior managers whose jobs were terminated last week for cause based on the board investigation. speaking to a source close to the matter i have confirmed three things. repercussions for the eight named today are likely over. number two, the board investigation is ongoing. it will be delivered and made public before the agm on the 25th of april. i get the feeling we'll get the report a little before that, perhaps mid-april. three, there could still be more repercussions for others but there won't be more announcements until the full report in april. stepping back, we have had two early releases. one group behaving inappropriately and the other not. top on everyone's minds from here, which camp will former ceo and former head of the community bank fall into come mid-april. worth pointing out, three of the four people found to have acted inappropriately did report directly to tollstead who reported to stumpf. in september stumpf and tolstead forfeited equities. there is potential for more to be called back depending on the decision. >> they had made a lot more than that. >> yes. pay since 2011. performance related for stump $142 million. for tallstead 51,000,019 clawed back. >> we're not expecting more heads to roll? is that what you said? >> we're not sure. the investigation is ongoing. and it's for anyone's guess to look at the fact that we have had the two early releases, a camp of people who were found to do wrong. a camp who weren't but still got some punishment. the two most high profile people's scalps earlier who stepped down themselves have not been mentioned. presumably in the full board review they'll be mentioned as to falling into one of the two camps. >> the 10 k was snuck in this morning. they said there could be, quote, an increase in the identified number of potentially impacted customers. of course, that number was 2 million. they have been releasing sales updates each month. sneaky that they put that into the 10 k today. pull report. mid april. share price soaring along with the market today. >> crazy stuff. thanks. to sima modi for a market flash. >> bank stocks in focus. close to hitting new highs. facebook, amazon, netflix. all within .5% of hitting their 52-week highs. similar story for google as the broader tech sector hits its highest level since 2000. the move, of course, in facebook coming ahead of snap's highly anticipated ipo at the new york stock exchange. facebook's instagram stories and whatsapp messaging seen as a rival to snap's offering. kelly and bill. >> thank you very much. let's get to the break and come back because, what a day we are having. with 40 minutes left in the trading session. dow up 336 points. comfortably above 21,000. we have a record there. s&p, same thing. we have been at 2400. nasdaq up a third and russell with a 2% gain. >> we'll tell you why intel is sitting this rally out next. former economic council director larry lindsey will be here weighing in on the president's comments about tax reform and whether wall street will get the plan it is expecting. that's still to come. bp engineers use underwater robots, so they can keep watch over operations below the sea, even from thousands of feet above. because safety is never being satisfied. and always working to be better. welcome back. as we head into the close, the dow is up i think nearly 350 points at the highest today. we have pretty much opened higher, opened basically above 21,000. been sitting there ever since. up 333 points. the gains across the major averages are pretty consistent today. dow up 1.6%. nasdaq 1.3. s&p 1.5. russell almost 2%. >> 28 of the dow 30 are higher, two lower. chip giant intel lower as advance microdevices and nvidia cut intel to market performer. citing cracks and the franchise and more competition from rivals. bernstein cut intel's price target to 30 from 36. it's trading at 35 and change right now. mikeron heading higher after goldman sachs upgraded it to buy from neutral. goldman says an uptick in average selling prices are lead to increases in growth margins. it's at 24.5. intel is lower. the other one i last saw for the dow among the components was walmart which was down, i presume, on the price-cutting competition that will come from target. >> also the border adjustment tax. that story keeps percolating. >> you're up to day. 36 minutes left in the trading session with the dow up 336 points. when we come back, the ceo of tool and equipment maker snap-on gives us his take on the president's address, the impact of tax reform and how to return the lost manufacturing jobs back to the u.s. >> after the bell. similar name, different company. snap, the parent of messaging app snapchat will price its ipo. we'll give you the numbers as soon as they hit. stay with us. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. dow up 1.58% and more than 329 points. we're well above 21,000 for the first time in history. s&p has been flirting with 2400 and the other major averages also sharply higher. lowe's reporting stronger than expected earnings today. comparable sales. and full-year guidance. that was boosted by a lift in the chain's professional business. lowe's saw a 9% increase in those transactions, worth more than $500. stock is up 9% right now. programming note. check out the premiere of cnbc's newest series in prime time. it's called "the deed." airing tonight at 10:00 p.m. and follows real estate mogul sidney torres as he offers inexperienced home flippers his own cash and expertise in exchange for a cut of the profits. debuting tonight at 10:00 p.m. eastern here on cnbc. kelly. see what you did there. tied the deed with lowe's. on the floor. with matt of virtue financial. snapchat, you know, the fed, better data. what do you think is most important in terms of why we're suddenly up more than 300 points? trump's speech last night. >> we've been waiting to say what's the reason for it. trump. he gets credit for this rally today. then on the back end of it we'll start talking about the fed and data that they're going to look at. certainly it's all about trump today. >> it's been remarkable. looking back since election day, the run we've been on. other people like to point out, look at the run reagan was on. maybe this move is nothing in the broader context. >> right now the market has not shown any top. we keep trending higher. we grinded out a couple of slow days monday and tuesday awaiting the speech last night. now we'll await what the fed has to say and chairman woman yellen has to say friday. it's all pretty good. talking about another fed rate hike coming sooner. we're expecting it. the market shows no sign of stopping or concern. >> that's the funny thing. if there were ever conditions ripe for a fed hike it would be when everything is coming up roses and the fed says it's going to do it and the market is basically signalling go ahead. >> we get employment numbers on friday as well. inflation is right where they want it. it's about time we do it. i don't know why we have to delay until june. it doesn't seem to make sense right now. the market is expecting it. get it over with and see what happens in june. if we do another one then, we do another one then. that's what the market is clearly indicating. >> taking it in stride just like the early 2000s. >> if you're snap, people are excited. money is flowing. good luck to them. >> matt, thank you so much. >> sure. bill. >> time for a cnbc news update with sue herrera. >> here is what's happening. former president barack obama and his wife michelle may have reportedly signed the biggest book deals ever. penguin random house confirmed the agreement with the first couple. reports claim the obamas were paid from $30 million to $65 million each. pope francis's began the start of the lenten season and held a service inside the ancient roman basilica. if you're planning a trip to washington, d.c., to see the cherry blossoms, you may want to get there sooner rather than later. officials say the beautiful pink blooms will hit their peak in two weeks. earlier than last year. speaking of traveling, who doesn't need a drink during a long flight. cafè pacific wants to make sure it's extra tasty. the hong kong carrier is brewing a beer specifically designed to be enjoyed at 35,000 feet where apparently cabin pressure and altitude can affect your sense of taste. that's the news update this hour. >> not to mention the impact alcohol has on your brain. >> it also affects how you behave. yeah. >> that's interesting. >> see you later. >> nightly business report tonight. looking forward to it. as the market rallies to new highs, manufacturing stocks are also seeing a lift, increasing manufacturing in america, of course, was something the president spoke about in last night's address. >> we have lost more than one-fourth of our manufacturing jobs since nafta was approved. and we have lost 60,000 factories since china joined the world trade organization in 2001. we must restart the engine of the american economy, make it easier for companies to do business in the united states and much, much harder for companies to leave our country. >> joining us now with his reaction to the address and the state of u.s. manufacturing is nicholas pinchuk. snap-on's chairman and ceo and an executive committee member of the national association of manufacturers. welcome, sir! >> glad to be here. >> so, your business touches on so many important things to the u.s. economy, the consumer, how the auto market is doing, the types of workers you are able to attract and remain in a lot of these auto repair shops. broadly speaking, the state of manufacturing as you see it needs what most from this president? >> well, i think, look, i think the first is we heard last night, and that i would say is priority and tone. the president, by talking about a manufacturing in such a positive way, set a priority saying that american jobs are number one and, by extension, american manufacturing is important. and the -- that puts american manufacturing at high priority, and it hasn't always been so in washington, either in the executive branch or the legislative branch. also tone, the idea that american jobs are important. in other words, restoring and focusing on the importance of the workers in america, and restoring the respect for the dignity of work. as a company that depends on manufacturing and the dignity of work, that was music to our ears. >> yeah. i mean, economically speaking, this has been going on for decades where companies kr migrated manufacturing overseas because it was cheaper. increased their profit margins. if you roll that back, presumably somebody has to pay for the higher cost of production if they bring jobs back here. and that's presumably the consumer. it would be inflationary. is that what you see? i mean, would it be really that easy to bring the jobs back here to this country? >> well, i think -- i think it isn't easy, but i think if you look at snap-on, we make 80 -- north of 80% of what we sell in the united states off our trucks we make here, and the hand tools, 50% labor. we have very skilled work force. the 14,000 members of the manufacturers work force. they say the number one reason to locate a factory is not cost. it is the skill of the local workforce. so one of the things we need to do is upskill the american workforce to make sure that, when borders open and we have fair trade, that they win the competition. >> okay. if they are upskilled in terms of technical skills, they can win the competition. >> your stock has been on a tear for years. you have tripled practically in the last eight years or so. could you have made more money if you moved your production overseas? >> we make in the markets where we sell because we make 65,000 skus. and therefore it's very difficult to -- it's a very customized product. it's difficult to launch them or lob them 12 time zones and 12,000 miles away. we could have chased cheap labor, but we understood the customization required capable workers. that's why we are so focused on the upskilling of the american workforce. we believe in the future and it's been the life-blood of snap-on for decades. >> a lot of implications there for the workforce. >> i know we're late on time, but i have to ask you. tomorrow snap ipos. they have the ticker symbol snap. why haven't you had that all these years? yours is sna. what is that all about? >> i am not so sure. the sna has predated us. but we have done okay in 30 of the last -- 25 of the last 30 quarters we have hit an all-time high. so i don't think it served us poorly. >> you've done fine. >> i don't think they could have had the p, right? you can now only do four letters. >> nicholas pinchuk. >> i'm not sure. >> thank you for joining us. market flash on valeant. >> it appears the market is reacting to headlines from the 10-k that the se is conducting a formal investigation to possible violations by one of its sub d subsidiaries. we already knew this from a disclosure three month ago. the board may look at requiring some employees to return nz abouts, incentive or stock-based compensation this year. shares down nearly 5%. keep an eye on that one. back to you, bill. >> all right. here we go. breaking news on auto sales. phil lebeau. how did they do? >> a relatively strong month, bill. looking at the pace of sales. according to the research firm auto data, in february the pace of sales, 17.58 million vehicles. this is one of the lower volume months. we don't get too worked up one way or the other. roughly in lane with what analysts were expecting. and just for a point of reference, the pace of sales in january was 17.61 million. what really matters, this month, april and may. this is when auto sales pick up. that's when people will really start to say, do we have a record year on our hands. back to you. >> very good. thank you, phil. phil lebeau. 22 minutes left in the trading session here. rally under way. dow in record territory above 21,000 for the first time ever. s&p has been flirting with 2400. when we come back we'll get insight on the economics of president trump's address last night. larry lindsey, former economic adviser to president george w. bush will join us. 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. 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. . welcome back. 18 minutes to go. checking out these markets which are ripping higher today. pretty much all the components of the dow 30 are higher as well. the industrials up 328 points. 1.5%. similar gains across all the major averages today. a sea of green in the blue chips with two exemptions which we have mentioned, intel and walmart today. >> that's tough. so we talk about the state of the union. quasi state of the union. >> last night president trump promised tax reform and a trade policy emphasizing his america-first theme. >> we must create a level playing field for american companies and our workers. currently when we ship products out of america many other countries make us pay high tariffs and taxes. but when foreign companies ship their products into america, we charge them nothing or almost nothing. >> joining us now with his review of the speech last night, lawrence lindsey, former director of the national economic council, former fed governor, now, of course, ceo of the lindsey group. dr. lindsey. welcome back. >> it's great to be here. thanks, bob. >> what did you think of the speech last night? >> well, i have been involved in state of the unions now for 35 years, which is kind of a scary thought. i must have started in kindergarten or something. but i thought that the speech reached out to establish big themes, which is exactly what the first sort of speech like this in an administration should be. there are not a lot of specifics. there usually are not a lot of specifics in this type of speech. president obama had no specifics about, you know, the stimulus bill or obamacare or banking reform in his first speech. so i think the president correctly stuck to the key themes he wanted to get across. there was no ad libbing. and as a result, the story we're talking about is the substance of the speech, what he wanted and not something he said off the cuff. >> so when it -- >> i thought it was well delivered for their purposes. >> sorry. >> everyone we have spoken to around here, larry, thinks the stock market reaction is basically exactly what you're describing. before the speech the concern was, you know, how was corporate tax reform going to happen, how are they going to pay for it, will it get held up by obamacare. do those concerns still exist? we still don't know how this is all going to play out. it's not clear what the pay for for corporate tax reform will be. >> that's what makes washington so wonderful, isn't it? uncertainty. that is not going to change with the president. i think, actually, they're basically on track. we have to remember just how long it takes to do these things under any administration. i do think the administration is committed to getting a tax reform bill through before labor day. i think they're -- it's going to involve a lot of negotiations, a lot of compromises, but i think that they're going to move forward on that. i think obamacare is going to be more of a work in progress. i think there will be substantial groundwork laid, but it may take longer. the one thing where i think the president is moving the fastest is on the regulatory side. and, bob, you mentioned that, you know, snap-on could have made more money abroad. they won't be able to if all of this goes through. the house tax bill, or anything close to it, will make america the best place in the world in which to invest and start a business. >> trying to address all of that is the border adjustment tax. very controversial. it's not even clear that the white house supports it fully, as they do in the house. does it make sense for you? economically speaking, to impose such a tax? >> oh, absolutely. back when i was in graduate school, the basic structure of what the house is putting forward was considered the gold standard in what a tax bill should look like. you can jigger the rates here and there, but the fundamental structure was, we have three big distortions in our tax code. one is the lack of expensing. second is the favorability of debt over equity which leads us into trouble. the third is we have a tax border issue. we are the only world-wide taxer that actually discourages investment in america. we have to level the playing field. a lot of ways of doing it. i think the border adjustment tax is the most elegant one on the table. and in the end, you need something like that in order to produce the revenue in order to accomplish the rest. >> all right. dr. lindsey, always good to see you. thanks for joining us today. appreciate it. >> thank you. my pleasure. >> you bet. see you later. breaking news on the snap ipo. leslie picard has the details. >> dow jones reporting snap set to price the ipo at $17 a share. that's a dollar above the range they had been marketing it to investors. that would indicate a valuation of $24 billion. this is significant timing if they have indeed set the ipo price already because typically these companies wait until after the market closes to have a definitive price. but we have calls out to sources to figure out exactly what is going on and we will make sure and come back to you when we get those details, kelly. >> thank you, leslie. >> we also heard "la la land" won too. we have to be careful. >> or that we were going to close lower. no danger of that. dow up 339 points. s&p up 35. nasdaq up 82. russells up 27. next guest says higher u.s. market returns will be driven by earnings not the president. that coming up after the break. whether it's bringing cutting-edge wifi to 35,000 fans... or keeping a hotel's guests connected. businesses count on communication, and communication counts on centurylink. r cashin stopped by moments ago and said the market on closed orders paired off. no inbalance to either the buy or sell side now. >> dow up 335 points heading into the close. >> looking at the top stories moving markets on this historic day. the dow well above the 21,000 mark. we closed above 20,000 on january 25th. it took just over -- a little over a month to climb the 1,000 points. the financials hit levels not seen since december of '07. utilities by far have been the biggest underperformer today on fears of a sooner interest rate hike than expected. joining us now, john spalenzani and sara. you think this is just getting started? >> i think we're just getting started. we have to go back past 2008, have to go back past 2000 and back to 1950 when we saw similar interest rates and similar monetary policy after world war ii and similar huge stock market rally. going forward i think really things are in place for the trump rally to continue. we have low interest rates. if i told you a year ago that the 30s would be 3% and we would be at 2300 you would have said you are out of your mind. i think right now the fed, if they do 25 basis points in march, does not matter to long-term stock investors. >> sara, what you think matters are earnings. you are taking the fundamental view of this market. with this rally, adding to the gains we have seen since the post-election period here, does this market make sense to you from a valuation standpoint? >> it does because we think continued strong earnings growth will continue to drive the s&p 500 higher from here. that's supported by the strong economic data you have been seeing since mid-2016. ism data came out today. it's been expanding for six months now, on a multi-year high. the fed signalled they'll raise rates in march. the market i think has absorbed that. that's a recipe for the earnings to drive the stock market higher. >> looking at the trough in earnings in 2008 was about $98. we talked a while back about, if you took a double in that multiple to let's say 150 ten years later, which every ten years earnings double and put a 20 multiple. it gives us 3,000 on the s&p. we are closing in on that level which is amazing despite all the negativity and nay-sayers and all the people who have been around since the last ten years. >> when people say, i don't understand. what's going to happen with the border adjustment tax and the -- is your answer just, i trust the process, it's all going to happen? >> i trust warren buffett and jam jamie dimon. guys who have money at stake every day. jamie said if rules were reduced just a little bit there would be $1 trillion more to lend. that's basically the infrastructure package if they do a private/public partnership. i think there is so much liquidity out there we haven't seen it go into, one, the market and, two, the economy. there is more good news to come especially in trump can get gdp to 3%, 4%. >> the uber bull from gfi group. thank you both for joining us today. the dow up more than 300 points, at least for the moment, the closing countdown in a moment. after the bell. shake shack will serve up their numbers. more details on snap's pricing. you're watching cnbc, first in business worldwide. ♪ i'm just a cheese burger in paradise ♪ mpanies across the ste growing the economy, with the help of the lowest taxes in decades, a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced 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trade. e*trade ♪ ♪ coming up on the last two minutes of trade here with the dow up just under 300 points, we are starting to see a little profit-taking come into the market here. hey, what a rally. i can show you any of the major averages here to show you the quality, the intensity of the rally today. i can show you the s&p going to 2400. big gains for the russell especially with a gain of almost 2% for a time today. here we are now comfortably above 21,000. the best and worst performers inside the dow today, kind of telling. jpmorgan among the financials. for a time goldman sachs was the best performer. up about 3.5% today. intel with the downgrade by burnsteins worst performer in the dow. down .75%. expectations rise for a rate increase this month from the fed. the yield on the ten-year up ten basis points for much of this day. now at 245. as rick santelli pointed out. the yield on the ten-year is flat. that's exactly where we started the year. >> the important thing here is, even though the yields have moved up a little bit in february, banks are doing well, we talked about fund flows today. was the retail investor coming back. put up some numbers on etf flows. s&p 500, gold, midcap. that's the corporate bond index at the top, all with significant inflows in february. this is an indication that retail investors are putting money back into the market. january and february fund flows numbers together. $87 billion combined. that's the best two months of inflows for etfs as they started keeping record. some of it is obviously the trump trade. some of it people coming back into the market in general. good sign. 350 new highs today on the nyse. haven't seen that in a long time. >> records galore for the major averages today. dow up 300 points. now we wait for the snap ipo pricing. it will be a big day tomorrow for that one as well. stay tuned for the second hour of "the closing bell" with kelly evans and company. see you tomorrow, kell. thank you, bill. welcome to "the closing bell," everybody. i am kelly evans. there is a fight for 300 going right now on the dow jones industrial average. looks like we will get that number. 301 points higher after donald trump's quasi state of the union speech last night. at this rate he should give them once a day. 1.5% gain for the blue chips. s&p 1.63%. same for the nasdaq and russell 2000 small caps up 1.9%. we closed above 21,000 on the dow for the first time, just 24 trading days after crossing above 20,000 for the first time. that does, i believe, tie this for the quickest run up 1,000 points. and we know it should get quicker as we get higher. remarkable move here with a 302-point gain now. after hours, a bunch of earnings headed our way from broadcom, shake shack and vox. snap inc.'s ipo set to price at $17 a share. we'll bring you the details coming up. joining me, michael santolli. jamie hughes and tom persimki. truly jaw-dropping news. >> different kind of nail-biter today. will we get up 300 or will the dow turn positive to extend the streak yesterday. i see three fuses lit overnight and into the morning. one was the reassuring speech by the president last night. the danger is parsing too much what the market's reaction to in the details. it's more about the tone and more about the fact that, look, policy is sort of trending the direction we like. the economic data looks good. 3% gain in the financial stocks today. that's most of today's move really. the economic data, somewhat higher. pce inflation. if the fed is going to go, you want the economy to be working in line in that direction. >> markets globally rallying, dani. it's not just us. data globally continues to do better. what is this about for you? >> i think it has a lot to do with people viewing what trump said yesterday as the fact that he can finish a full sentence. but again, there is a lot of mayo and no meat. we don't see any policy. generally in these kinds of speeches you don't see a lot of policy. the big lines. immigration. we see, you know, taxation. we see regulation. those three things are his, you know, soap box that he's going to stand on. the markets want to fly. they have been held back for a while. i thinker to the last three years or so we saw the market really be a baseline for a long time. and now we're rallying. i think we are getting a lot of participation by individual investors. i think we're going to see that through. i think this kind of a rally today will incite people to participate more. >> tony. bob was saying the biggest two-month inflows into etfs we've seen. $87 billion. more people getting involved in the market. just the speed at which we have moved from 20,000 to 21,000. we talked about it. there have been these little, you know, kind of quieter days where different sectors are kind of -- but it's kind of extraordinary to watch pretty much all those being lifted today. >> you fengsmentioned flows. they were strong lately. one would question whether they can last a long time. the population is aging. they tend to want to move higher in the capital structure as they do. which is to say into less risky assets. those who have been left out of the market are just moving in because -- >> i think i read 14% of americans, from like one of the government surveys, actually own equities. outright. >> federal reserve data in the flow of funds reporter produced quarterly shows that households have about $15 trillion of direct holdings in equities out of the $37 trillion that exists and other $10 trillion in mutual funds. so they have had a share of this move, but they have felt left out because they've been in fixed income. this is not to say they'll abandon fixed income but they did want to increase. >> how much has the wealth of this country increased. it has been offset a little bit by what's happened in bonds. >> $3 trillion as the president mentioned added to u.s. equity market value since november. that's approximately correct. then i think you get 1 trillion mark to mark on-paper losses from bonds. this isn't somebody's real portfolio. this is kind of round numbers, very much in terms of what the overall financial asset markets have done. >> the "journal" pointing out today people buying higher priced cars because of the wealth effect. apparently the rolls-royces are flying off the shelves. >> $40 trillion of equity values. 1.5% -- >> you mean globally. >> just using federal reserve data back to september. $4 trillion since the election. >> here is the thing. the big disconnect. trump's main base has no participation in any of this. what's his message and the market disconnecting got to do with what's happening for these people who have lost their jobs, who have no pension funds, who don't have a way to participate or are not participating in this economy. is this giving them the sense of courage and looking forward, making america great again, or is it making them feel, again, left out. >> marginalized. snap pricing. leslie. >> snap set to price its ipo at $17 a share. we confirmed that with two sources. $17 a share we told you yesterday that they were aiming to price between $17 and $18 a share. that $17 a share makes investors feel like they got an extra dollar out of the bargain that they are insured more of a pop tomorrow versus $18 a share. i am told by people familiar that this deal was ten times oversubscribed. meaning there are ten times more orders for the deal than there were the number of shares they were offering. i am told the book right now is made up of very high-quality mutual fund investors, long-only investors. it's important to keep in mind that several of the investors were in snap privately. so it's not too surprising that they'd also buy publicly and give this ipo more of a boost. now, as you mentioned, today is an historic day in the markets. honestly, snap couldn't wish for a better market by which to price its ipo. while it was on the road, only one day of declines in the broader stock markets and very low volatility. if you were looking to pricen a i -- an ipo that's the market you want to do it in as opposed to a down market where there may be lower price sensitivity and investors might wish for a lower price. so those investing, those in snap and founders and insiders, previous investors in the company, this market is as good as it gets for them. >> leslie. i don't know whether these snap images are entertaining, disturbing or enlightening. thank you. bringing in julia boorstin for more. >> we've been monitoring snapchat over the years. as it prepares for this ipo. for the first time we are starting to see the reaction of analysts. analysts have been very much focused on what distinguishes snap from the other social networks. snap has dramatic appeal and engagement with younger users which is a huge advantage. this is a demographic that's very hard to reach with traditional advertising. analysts are starting to raise concerns about the fact that snap has such saturation in the u.s. market with the younger demographic that there may not be that much room to grow here in the u.s. there are also questions about the fact that facebook and instagram, which facebook owns, has started to copy some of snapchat's more popular features, such as the stories feature way of sharing with friends. analysts are starting to ask questions about whether the fact that facebook and others can copy snapchat at scale is going to really impact their growth, especially overseas where facebook and instagram already have a much bigger audience. a number of things to watch. it will be interesting to see how the analysts continue to weigh in on the stock. >> one thing i think about is the difference between this ipo and when google went public its valuation was $24 billion. it's a much more mature company in a way. is the kind of available, you know, huge valuation increase still out there? are people still expecting it's going to be a 10 x revenue growth? >> it's mature in the sense of the user base. it's taken hold across a broad audience. not terribly mature financially. they've not made an effort to ramp that up. facebook i said waited too long to go out. they wanted the $100 billion valuation. seems like it's been a relatively disciplined process. i am not really sure that people are expecting a massive, you know, pop in terms of the first day or six months. >> we'll come back to this. getting a couple more earnings reports coming in here. let's see. josh lipton is going to bring us box. >> box delivering a loss of ten cents versus expectations of a loss of 14 cents. revenue $109.9 million. analysts modeled 108.9 million. box delivers on a promise it made a couple of years ago to achieve positive free cash flow in the quarter. $10 million in q4. improving more than $30 million from q4 of last year. saying they grew paying customer base over 71,000 businesses. mentioned spotify. discovery communications and volkswagen group of america among others. q 1 revenue guide saying to expect somewhere between 114 and 115. that's basically in line. full year 2018. $500 million to $504 million. basically in line. looks like slightly weak bottom line guidance for q1 and fiscal 2018. remember, the stock, kelly, had been on a tear heading into the print about 30% year-to-date. >> shares a little bit weaker here. the box ceo aaron levie joins jim cramer tomorrow. down in after-hours. same store sales missed. coming in half the rates that analysts expected for the quarter. 1.6%. earnings in line with the estimates at 9 cents adjusted for the quarter and revenues beating $73 million. they also raised their 2017 revenue guidance just slightly to giving us a range of 355. now estimates -- 349 to 353 and they've lifted now the net new stores that they plan to open in 2017 to just one more than expected. so 11 net new stores this year up from ten. and we are far off. remember the record highs, kelly, of $90 apiece? we are trading to around the $30 to $40 range. still trading 63 times projected earnings. >> a company that did really well on day one. be careful what you wish for. thank you, susan. shake shack up a little bit less than 1% after hours right now. getting to broadcom. those results are out and sima modi has them. >> broadcom reporting q 1 earnings beating street expectations. $3.63 adjusted. wall street looking for $3.48. revenue at $4.14 billion. helped by growth in its wireless business. wireless revenue came in at $1.18 billion. analysts also looking for growth in enterprise storage. revenue there at $707 million. this is one stock that has participated, kelly, in the broader tech rally. shares were up 15% coming into this earnings report. stock building on those gains right now of 4% in extended trade. >> what do you guys think? a lot of these have been flying in here? >> broadcom. strong stock. strong group. this is not the kind of day where you look closely for reasons to sell. shake shack, interesting. what susan ran through was the story. it's never been about the individual stores being able to have these huge chipotle-like growth numbers. it's about store additions. it's a slow slog. the fever has broken with the stock. >> it reminds me of krispy kreme. lines out the door and then it exploded. it just seems a similar story. >> i still haven't had a hot one. i have only had the boxed -- i hear it's a very different experience. tony. >> in these data along with today's lack-luster automobile sales reminds us there is a big difference between the old economy and the new. with transformative companies, faring well. for the economy to do well on the whole, for the u.s. to move toward a 3% growth rate. it's all normal. from the recent new normal of 2. it needs some other transformation. >> you don't think snapchat will totally transform -- >> i am not predicting a market top. but if there was a market top, when a company that makes silly digital photos -- >> with rainbow puking out of your mouth. >> it's fun to use. alibaba was a market top as well. this is the biggest offering since then. >> snap made $400 million last year and lost half a billion. like you said, mike, earlier, they're not necessarily at the stage where this is a takeoff signal. but it's exciting and a big ipo. you know, so people -- >> high concept. >> still feels like an advertising story when all is said and done. google is an advertising company. youtube is a lot about targeted advertising. >> a good gauge of china and how conditions are there. we said we'd be sanguine about china. growing. >> we're all still in melt-down mode from -- >> snapchat's benefit is they're not saying we're going to attack precisely the advertising pool of google and facebook in the same way. they're saying it's a different thing, different platform and approach. >> dani, final comment now that the president has spoken. given his address that's been warmly received not only by people but also by investors on wall street. where do we go from here? >> today we were up 300 points. where do we go from here? i think in the middle of march what may happen because we hit the debt ceiling around the 15th or 17th. we did go through that day but at the end of march something has to give. i think march will be pretty tumultuous. >> thank you for joining us. huge rally today despite no specific mention of deregulation last night by the president. during his address last night, the president said he wants to cut red tape for the approval of new drugs. he cited amicus therapeutics ceo and his daughter in the gallery and fought a personal battle against the fda. mr. crowley joins us later on "the closing bell." you do all this research 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. president trump meeting with republican congressional leaders at the white house discussing some of the big proposals put forth to his address to the joint session of congress last night. >> the president set the legislative table for congress. and today broke bread with republican leaders to discuss the process of moving forward to use the president's word. there was one proposal in particular, kelly, that they focused on, and that was the reform of the affordable care act. i am told by sources that was the entirety of the conversation at the lunch. that was what the senate conference focused on and the house conference will focus on it tomorrow with a goal of getting a, wouldi working draftn a matter of days. the president outlined where the white house stands on this. the president supports an interstate product for states with expanded medicaid. they want an option for patients with preexisting conditions to access the plan and the use of tax credits to purchase the policies. that is seen as an olive branch to republicans who viewed that specific facet as mandatory for any deal getting done. then infrastructure, which is something the president put forth also last night, calling on congress to procure a trillion dollars in funding from legislation. where that comes in is unclear. i spoke to kevin brady, the chairman of the house ways and means committee this morning. he said the following to me. he said that i expect the administration will start engaging more seriously with congress on infrastructure. it's clear it's a priority. so are health care and tax reform, though. so it sounds like the ball is in the white house's court on that one. the ball is also in the white house's court for the budget. tonight the president will be dini dining with secretary of state rex tillerson. the president said he supports nato. he wants the allies to meet their financial obligations. the money is pouring in. they're having the dinner at a time when the budget is due in a few weeks and the draft expects a steep cut to what the state department normally got. >> 37%. thank you. joining us to talk about why the market has responded so positively to the president's speech. terry and henrietta. terry. >> you learned a lot about the president last night and about markets today. what you learned from the president last night was that they're very focused on delivering these priorities. over 2017, possibly early into 2018. what you learned about markets which was not known before today was that what they prefer is hearing what the priorities are and what the resolve is as opposed to hearing details. then we can expect the details to come over the next weeks as kayla said. >> henrietta, seems to take the pressure off getting those right away and kind of trusting that the president and congress will figure it out. >> yeah. i mean, there is a lot of minutia that needs to go on, a lot of that is still being crafted by members of congress, specifically kevin brady, who you mentioned earlier. he is working with the white house advisers at the n.e.c. gary go gary cohn goes to the hill regularly to meet with members as does speaker ryan meet with trump to explain what they're working on. i understand there is a decision at the white house level to stay out of the fray until the house provides them with some legislation specifically on tax policy. last night trump got in my opinion within striking distance of supporting something pretty controversial with representative brady and speaker ryan's better way agenda, the border adjustment tax. he came quite close to endorsing it in language but not using the same words. >> terry, i was going to ask, i wonder what dynamics have been changed, if any, within both houses of congress by these sort of statements of principles that the president laid out right there. in other words, does it make it any easier for the senate to accept something like the border adjustment tax or, for that matter, to have some kind of a bridge on obamacare and what the resolution might be there in the house. >> let me take it this way. we've never had the consumption-based system, border adjustabili adjustability. the dynamic is that the house leaders remain committed to trying to put that system on the table and make it a viable proposal. but at the same time, i think senator hatch was on your air yesterday and made it very clear that it's going to be very tough to do in the senate. and the decision for the white house, really, is going to be if they think that the border adjustability provision damages the trump trade, we see it as less likely to happen also. this is not -- they take credit for the economic boom that you're seeing right now, the markets boom you are seeing right now and don't want to do anything to damage it. we see it as uphill. >> henrietta, if it doesn't happen does the tax plan happen and increase the deficit? or where does it leave us. congressman brady told us there was no plan b if there was no border adjustment tax. >> it raises over a trillion dollars to pay for the corporate tax rate reduction. one of the things we saw last night that was interesting was the strong endorsement from the white house that he is going to stand up for the american people. he referenced harley-davidson, one of the only brands that people actually get tattooed on their bodies. they still are. he gave what was the most poignant moment in the tax portion of the speech last night saying he was going to protect them. listening to the republican's rhetoric on the house side about what border adjustment is, they use that same language. i thought it was interesting he pointed to that and gave what i thought was a forceful look into the border adjustment idea without using the words. >> he was responding to the baron's cover, mike. >> bearish call. >> thank you, guys. terry and henrietta. news alert on juneau therapeutics. >> shares moving a little bit in the after-hours on the news that the company is discontinuing a trial of an experimental cancer treatment. this was the trial we have been talking about a lot over the last year. there were some patient deaths in the study. this is an experimental treatment known as car-t, you remove a patient's cells, modifying them and giving them back to the patient. the trial was stopped after they saw deaths and then restarted and then stopped again after they unfortunately saw a few more. making the official decision to stop the trial and divert resources elsewhere. they have a lot of other studies going on in the space. juno down 2.4% on the news. >> meg, thank you. box shares lower after reporting earnings. coming up, find out what the ceo is saying about the quarter, and then later, trio of big financial stocks closing at new highs today. we'll discuss just how high the banks can continue to rally when we come back. stay with us. know you have a dedicated advisor and team who understand where you come from know you can craft an investment plan as strong as your values ♪ as strong know that together, you can establish a meaningful legacy with the guidance and support of your dedicated pnc wealth management® team. strong session on wall street today. let's send it to seema mody. >> pure storage one of the companies that went public recently in the enterprise storage place. earnings and revenue beat exp t expectations. weak revenue guidance for the first quarter. $171 million to $179 million. below consensus. that's one of the reasons we're seeing shares drop after hours as much as 8%. a different story for monster beverage. shares rallying here after hours. earnings beating expectations. 35 cents adjusted. it did account for profitability as it says in the press release, negatively affected by $46.3 million distribution termination expense. again, that's not hurting the stock. it is up 7% after hours. the company also announcing a $500 million stock buy-back program. lastly, want to draw your attention to shares of planet fitness. earnings 20 cents adjusted. that's higher than wall street c consensus. revenue above expectations. weak 2017 guidance though it does see 2017 same-store sales growth between the 6% to 8% range. shares down 8% after hours. >> thank you. time for our cnbc news update with sue herrera. >> here is what's happening this hour. the wouldo of the gunman who killed 49 people at an orlando nightclub will be released on bail awaiting trial. she is charged with obstructing justice and aiding her husband in the june 2016 attack. film academy president cheryl boone tells the a.p. two accountants responsible for handing out the best picture oscar to the wrong film will not be working the show again. "moonlight" is heading back to theaters playing in 1500 screens nationwide. a landmark new york city hotel which has hosted presidents and celebrities over the years is shutting its doors. the good news is it's only temporary. the waldorf astoria will be closed for three years to undergo a massive renovations. going under the knife is growing more popular. the society of plastic surgeons says cosmetic procedures increased by 3% in 2017. the most popular. breast augmentations, face lifts and chemical peels. >> ugh. >> ugh. i know. >> i am too chicken to do it. >> no. i am really -- >> exactly. >> back to you, kell. >> canceled my dentist appointment this morning, thank you, sue. stocks soaring today and financials are a huge part of the rally. up next we'll discuss whether you should still bet on the banks and if the stocks are being driven by interest rates or deregulation talk in washington. later we'll talk to the ceo of one biotech singled out by president trump last night about how the administration could impact his sector. details later on "the closing bell." hey gary, what'd you got here? this bad b is a mobile trading desk so tt i can take my trading platform wherever i go. you know that inkorswim seamlessly syncs aoss all your devices, right? oh, so my custom studies will go withe? anywhere y want to go! sync your platform on any device with thinkorswim. only at td aritrade 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. the headline is the 303-point gain on the dow jones industrial average today. 1.5% gains, nearly, for the blue chips. s&p and nasdaq up nearly 1.4%. s&p over 2400 for the first time. dow closed above 21,000 for the first time. nasdaq over 5900. the russell well above 1400 now. so a very banner session. financials were higher across the board. leading the rally today. the question is are today's gains tied to bond yields going higher or potential regulation, deregulation out of washington. joining us david alison. manager of the hennessey large and smallcap funds. jason goldberg at barclays. >> david, still see value in the financials? what's driven the price action? >> we've been up and down pretty much with the direction of bonds. we heard yesterday the government may send spend money and do a lot of things and the companies may spend money. it is making banks look more favorable. if you can see your way to higher rates the next three to five years or five to seven years. margins will expand and stocks will follow. fairly simple story. banks are in great shape. it's a matter of getting some margin into the business to expand the earnings. >> jason, a guest last hour suggested that jpmorgan could fund the trillion dollar infrastructure itself from deregulation that could come out of washington. is the force important to you? deregulation? >> four legs. david touched on the first. higher interest rates. feds went to two-thirds probability right hikes in march. comments from dudley and comments from trump last night. the other three legs, one is certainly this pro-growth agenda. infrastructure spend would help. to help on the loan growth side as well as capital markets activities. reduce corporate tax rates would help bank earnings and help the economy we think. the last leg is deregulation. the industry for the past seven or eight years, every year has gotten worse and worse from a regulatory standpoint. we think at the tipping point where regulators will start to regulate less. and things stop getting worse and maybe ultimately get a little bit better. >> david, some of the comments yesterday by jamie dimon at jpmorgan's investor day were striking at credit never having been better. looking incredibly strong and solid across the whole base. is that the kind of thing you see when things are about to turn? is this something that basically says, they haven't been allowed to do anything silly for these years so there is a long runway before we have to worry about credit. >> exactly. i think it's a testament to what the regulatory structure has done to the banks. primarily the depositories because that's where most of the regulations are with dodd/frank. and i think it's a testament to what's happened and the conservativism. which is why i think we are poised for a multi-year run, not only in the banks but in the market because the banks are healthy. and they can take a rise in rates, expands -- banks will lend more as rates go higher because they can make more money. >> if -- >> that will drive the economy. >> if we look at the price relative to their book values, though, it's -- at some point do we approach crazy '05 levels or will the earnings support where the prices go if this continues for years? >> well, i think you have to, you know, be careful, obviously. i think the last time i was on the show, you know, you were talking about goldman sachs. i thought it was okay and the stocks made new high today. it doesn't mean they're going to go higher. i think as an analyst and fund manager, looking at fundamental improvements in the companies before you look at the price of the stock. you have an industry that's fundamentally poised to improve for years to come. looking at the whole s&p sector, what other sector will benefit from a 200-basis point rise in rates? no other sector will improve better than financials. yes, valuations are high relative to history. they are not super high. i have seen them worse. >> yeah. >> i have to put that aside and say, you know, this industry could get better for the next five to ten years. >> jason, same question -- >> it's a tough thing to sort of sell. >> jason, are we talking about going back to the bad old days of multiples over book value, '05, '06? if not, what are we talking about. >> trading at 1.6 times book. the roes were higher. one of the things you'll see as rates back up and as banks are allowed to return more capital to shareholders, the roes will expand and valuation multiples we think will increase from here. >> jason, one final question. the fdic put out numbers on the profitability of the banking sector as a whole. the return on assets was like 1%. in order to boost return on equity that you are talking about, is the only way to do that by adding leverage? >> i think there are a couple of factors. roes are at 1%. net interest, always inline with historic average net yet interest margins are at multi-year lows. as they expand and rates rise we think roa will increase. we think ultimately you'll increase the leverage in the system. capital ratios are at the highest levels since the 1930s. when we think over time that will hopefully ease a little bit. >> david's picks, bank of america. pnc among others. thank you for joining us. david ellison and jason goldberg. more breaking news. on snap's ipo. back out to leslie. >> $17 a share is official. they're selling 200 million shares in this ipo. the company decided this about 15 minutes ago. they met according to people familiar with the matter inside morgan stanley. morgan stanley is among the lead underwriters of the deal along with goldman sachs and jpmorgan. so $17 a share indicates that the valuation of the company is $24 billion. now, one of the sources i talked to said the book is an "a." the book meaning the types of investors that bought in. these are the types of investors that are known for being long only, not flippers. that being said, people said they can technically do what they want tomorrow. that's what my sources are telling me. they are counting on an "a" market as we talked about earlier. stocks keep ryinising. that's the market you want to price an ipo. tomorrow is fair game for anyone. $17 a share the official number, kelly. >> leslie, thank you. reaction, mike? >> look, i think people generally love to boast about the quality of the book. i don't doubt it, actually because they did have the ability to scalp the buyer base right here. i don't think i have a good handle on how to handicap how this will trade in the short term. the skeptical story has been this overlay for a while now which is probably good. not everybody trying to pile into this hole saying i want to buy a piece of it. >> could be muted. could be better in the long run. snap at 17, debuting here tomorrow. up next, box ceo aaron levie gives us his take on the latest results. shares down 2.25% on the news. trump wants to cut red tape at the fda. will it help pharma stocks? we'll hear from a ceo coming up. ♪ hi, i'm frank. i take movantik for oic, opioid-induced constipation. had a bad back injury, my doctor prescribed opioids which helped with the chronic pain, but backed me up big-time. tried prunes, laxatives, still constipated... had to talk to my doctor. she said, "how long you been holding this in?" (laughs) that was my movantik moment. my doctor told me that movantik is specifically designed for oic and can help you go more often. don't take movantik if you have a bowel blockage or a history of them. movantik may cause serious side effects, including symptoms of opioid withdrawal, severe stomach pain and/or diarrhea, and tears in the stomach or intestine. tell your doctor about any side effects and about medicines you take. movantik may interact with them causing side effects. why hold it in? have your movantik moment. talk to your doctor about opioid-induced constipation. if you can't afford your medication, astrazeneca may be able to help. welcome back. box shares are lower after their earnings this afternoon. ceo aaron levie just spoke to josh lipton about the quarter. he joins us now with the details. >> i just spoke to box's aaron levie about the quarter. box delivering on the promise they made a few years ago to the street that they would achieve positive free cash flow by q4 of 2017. i asked levie how he got to that bogey. whether it was a consequence of taking spend-down. he said it's more a reflection of the inherent leverage in the model. that this is a company that keeps growing. he mentioned new customers in the quarter. over 60 deals above $100,000. eight deals over $1 million. that's a record in the quarter he said. investors want to know whether it's sustainable in the quarters ahead. he was telling me it is. i asked him about president trump and the various policies that could be coming toward us from taxes to immigration. asked him where the policies that are on his radar. he says, we care a lot about immigration. that they have a range of talent from around the world at box. he said that's in part what's made box as strong as it is. on the other hand, he said listen, there is regulation coming that could impact customers in a positive way, that could mean greater growth, that could mean they invest more. some positive potential flkeffe as well. with snap making their public debut. i asked him for his advice to spiegel. he said spiegel should over-communicate his strategy. it's easy for the market to move from one quarter to the next but be as clear, he said, as possible about your vision. snap he said has a lot of potential and now has to be predictable, consistent and achieve the goals it laid out. as you mentioned, kelly, stock down in the after-hours. conference call kicks off at 5:00 p.m. eastern. back to you. president trump taking on drug prices and the fda, the biotech ceo who attended the speech gives us his take on how trump will impact his sector. coming up on "fast money," a top technician has the ultimate catchup trade for your portfolio. that's at 5:00 p.m. eastern. 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. the nasdaq biotech index climb nearly 1.5. president trump in his joint session last night, he promised to lower drug prices and to make insurance more accessible. meg? >> the drug industry trying to digest the men from president trump last night in his speech touching on pricing but also introducing a young woman who was a come student with a rare disease. it was rare disease day yesterday. and what towed say about megan who is giving some people hope that trump's approach may be a positive one toward whole industry. >> megan's story about the unbounded power of a father's love for a daughter. but our slow and burdensome approval process at the food and drug administration keeps too many advances like the one that saved megan's life from reaching those in need. >> now her story is a pretty well known one. her dad is john crowley. you can see there amicus's stock is up about 17%. er they had earnings today and analysts are talking about the future of that company. they are in the rare disease space and trump's comments about rare diseases and slashing regulations on the fda, prompting analysts this morning ask whether biotech got a presidential pardon. may be not so fast. trump focused on drug prices. you can see this has been a common scene over the last few months since the election. last night saying we should bring down the art flishl high price of drugs. how is trump going after that? his focus on slashing regulations people taking is a potentially a positive thing. >> now let's bring in john crowley. welcome. >> good to be with you. thank you. >> great to have you. maybe you should be fda commissioner. >> no. i'm very happy running a biotech company and championing the development of new medicines for these rare and devastating diseases. er. >>error it is our precision drug that was approved in the eu last year, launched in germany. this morning we reported that we're off to a very successful launch. getting that drug to patients throughout europe. we expect to file in japan about the middle of this year. and with the fda, we have more work to do. another study to do get that over the finish line here in the united states. and we're working on the protocols and doing the diligence on the feasibility of the study that the fda requested. >> you're putting that very diplomatically. here's how i understood it. the fda refused your request for accelerated approval of this drug. this after european regulatorser approved it using the same data the fda said was insufficient. saying people need access to these drugs wochblt your experience be a classic example of that? >> i think in this case, this is a drug that we developed for many years. we've heard from patients and patients do want the drug. we do disagree with the fda. while we have a great wrim fda. we're committed to working through issues and to doing work that the fda requested. but of course, we'll continue to evaluate what's in the best interests of apparents. >> overall, the fda's process for approving drugs these days, is it too slow? they have tried to pick up the pace a little bit. and the portrayedoff between safety for the general population and giving people access to something that could save their life. is it too slow? >> we look at it from two perspectives. one, what do the patients want? one of the great things, congress has -- he president obama signed into law, one of the key parts of the legislation is that you need to put the patients at the the central of this. we believe it needs to be driven by science. in the rare diseases, there are 7,000 of these disease that's just in the united states affect more than 30 million people. so what is important is to bring that expertise to bear at the fda. we're usually committed to working with the fda in this regard. in that regard, i think the president presidenter's comments will be very, very constructive. >> we hope you'll come back and speak with us. john crowley, the ceo of amicus therapeutics. this is where i trade andrs. 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. josh lipton has the breaking news on yahoo!. >> a new file about the independent investigation. ronald bell has resigned as the general counsel and secretary. the board has determined not to award la ris a myra cash bonus for 2016. they promised to forego an equity award as well. the board has accepted her offer. yahoo! records expenses of $16 million related to it. >> still, the deal is happening. >> the deal is happening but yahoo! did have to take a reduction in the price. so clearly they're spreading that accountability. >> any final thoughts? on this 303 points higher. >> it is hard to assail where we are right now. just tactically, be careful. >> all right. we'll see what happens tomorrow. that does it forbell." "fast money" begins now. i am asking all citizens to embrace this. i am asking all members of congress to join me in dream big and bold and daring things for our country. i am asking everyone watching tonight to seize this moment, believe in yourselves, believe in your future. >> and traders did seize the moment. the dow surging above 21,000 for the first time ever. the s&p