record-breaking day for the stock market we cross one more millennial, have more to go? >> the president is talking about 30,000 who knows where we're going. the important thing is to note how broad the rally is, not just tech stocks, in fact, they're not necessarily the most important part of the rally. let's look at the sectors moving financials is been big interest rates have been moving up materials, that's a rally that's continuing to ratchet. energy strong with oil over $60. even consumer staples are leading. you know what's not doing anything anything that's interest rate intensetive. real estate, investment trusts, utilities lagging for a long, long time. of course, those are bond proxies. a lot of new highs in financials as the higher interest rate scenario is helping the banks out. this is a small spattering i could go through american express, e-trade, key corp, suntrust, all sorts of banks all the major money center banks as well as the super regionals at 52-week highs a cyclical rally, not just a bank rally fedex, norfolk southern, dover, textron, deere material stocks, again, the rally's been going on for a good part of 2017, it's continuing into 2018. new highs in a lot of these sectors as well. what's not on the list is generally tech stocks. we're not hitting a lot of new highs. cisco is one of the very few, of course, dow components sitting at 52-week highs i want to bring in art cashin, let's talk about it, by the way, here's the guy with the hats. >> with the hat. >> the 25,000 hat. one thing that worries me a little bit, i smell a little euphoria for the first time. we know the markets have been high priced for a long time. it hasn't been you foeuphoric seems like a lot of people think things are going to go right in 2018 do you smell it? >> since the santa claus rally reasserted itself, look at the latest poll of investors, 60% are bullish, only 15% are bearish. last time we had lopsided numbers like that was back in 2005, a year later things were not going well at all. but i'm not ready to say anything we want to complete the first week of january on the upside. that's the first signal, then the entire month of january. and then hopefully the month of february they don't have to be rocket rides, they don't have to be parabolic, but if these two months are up consecutively, history says the year will be okay. >> one of the thing that's amazing to me are the economic numbers are so much better than anticipated, adp number $250,000 expecti ining 180,000. market moved up on that. a big story tomorrow with the jons repo s jobs report. we're expecting 180,000. what would it take to move the market forward given expectations are very high now if we get 240,000, will that move the market? >> i think it will i think the other side of what you're saying, earlier you mentioned the reits and utilities and bond roxc proxiesl suffered people are thinking pt the economy may be getting strong enough the fed may live up to the dot plot and maybe even exceed it. i'm not one that believes it. >> the dot plot being their projections where interest rates are going. >> prep zenatirepresentation ofh members of the board yesterday's release of the fed minutes was more hawkish than people thought. >> interesting, the market shrugged it off. >> it did. it gave a little twinge. i think the other thing they noticed is you're transferring people mester is going to a voter, a noted hawk that's a bit of a problem. >> any significance to the fact that letters are blue this time for the hat? did peter tuchman just get a bargain on the blue ink this time how's that work? >> shopping for bafrgains is something wall street does >> yes, they do, very well. >> the president appears to suggest we go out and preorder the dow 30,000 hats. we'll see what happens. >> go ahead, bill. >> if i know tuchman, he's got them lined up. >> toipt go bai want to go back point, if the economic data keeps advancing, beating expectations like this, could we go to the point now where good news becomes bad news because we're actually concerned the fed may be much more aggressive in their rate hikes >> as i said in the interview that i did for you, the year end, i would watch not so much the economy perking up, but does inflation follow suit? if inflation remains dodormant, the fed will not be that active. >> gentlemen >> thank you, guys see you later. see bob at the close arthur, as always, tip of the hat from the man see you later. now to washington where president trump earlier today weighed on this historic milestone for the dow. cnbc's eamon javers has that story from the white house right now. eamon? >> reporter: you know, bill, here at the white house they wear those red make america great again hats, not the blue dow 25,000 hats art cashin was featuring. they're no less enthusiastic about the milestone. we saw the president earlier cheering on dow 25,000 and offering us a prediction of just how high he thinks the dow can go here's what the president said at the white house earlier today. >> we broke a very, very big barrier, 25,000, and there were those that say we couldn't break 25,000 by the end of the eighth year and we're in the 11 the month. we broke 25,000. just as we came in now i have to be a little careful because as we walk out, maybe it goes down. you always have to be careful with that, tom but we did, in fact, break 25,000, very substantially break it, very easily. so i guess our new number is 30,000 but what it means is every time you see that number go up on wall street, it means jobs, means success, it means 401(k)s that are flourishing >> reporter: so is the president a perma bull not exactly. here's what he said calling into "squawk box" in february of 2016 when the dow was a rlot lower than it is now there's the president that year. >> i hope we're wrong. i think we're in a big fat juicy bubble. >> reporter: so the president then saying we were in a big fat juicy bubble at the time the president made that comment, here's where the dow was. the dow closed that day at 16,000, just over 16,000 it's been up about 56% since the day that the president worried that we were in a big, fat juicy bubble today, though, no talk of bubbles here at the white house. and, you know, the old saying is one man's bubble is another man's rally. even, i guess, sometimes when it's the same man, guys. back over to you. >> eamon, i have to say, i thought they put out a masterful statement about dow 25,000 today. it read so beautifully i think it might -- it was written by cnbc.com. >> it was. >> is hat tip to fred there. >> reporter: yes, hat tip definitely the white house put out two statements today that were just cnbc.com articles. so they are very enthusiastic and the press machine here at the white house is pumping out cnbc.com content so they're embracing this story. they're riding it. they wish a lot more folks in the media were talking about it. the press secretary here began the press briefing by talking about the dow. we saw recorded video from the president brought into the briefing roof, a special occasion, we've never seen that before, to talk about the economy. it they re they really want to hit that hard because there's a lot of political churn going on around them, a lot more negative. they like this positive story line. >> eamon, thank you very much. fred can add that to his resume. >> i'd have it framed on my b l wall. >> there you go. stocks as these levels, we turn a new year, new milestone, does it mean you turn to a new strategy will you stay with growth, go with value let's bring in a couple of experts on that. liz bell is from jaguar growth partners which tell you where she's coming from and cnbc contributor, michael fardam to make the case for value. liz, clearly this has been a growth market for a while. you say stay the course, is that the idea >> for us we look to emerging markets for growth, that's where we're very bullish right now p we like the demand drivers particularly real estate they have strong demographic trends, rising middle class, consumerism, increased availability to credit all that is really supporting the real estate markets that we look to invest in across emerging markets. >> michael, you feel differently, do you think growth is too overvalued here or what >> i think you have to know the market's expensive right now we've seen the market increase over 30% since president trump was elected and earnings have increased about 13% or 14% so we've seen the priced to earnings multiples just go higher this market's more expensive the one thing that didn't participate last year was the value sector the russell 1000 value index was up around 12% for the year the s&p was up 21% and the russell 1000 growth was up 31% so i think if you have to look for opportunities and things that haven't participated as much, and aren't quite as expensive, you have to look at the value index. >> i'm curious, though, michael, i mean, we usually identify sectors, but with the sector rotation that we've seen constantly in this market, every sector, it seems, has its day in this market. so can you identify a sector you feel is value oriented or cheap at these levels? >> well, you know, when i talk about value, you have to look at the russell 1000s, there we go, russell 1000s -- that's a great cheer, definition of value, i think you're not talking about necessarily the rust and dust bucket stocks of old that you just try, hope you buy them cheap enough and sooner or later the pieces and parts get sold off. so i think you do have to look at solid balance sheets and that's a lot of the blue chip companies, solid balance sheets, not too much debt, higher returns on equity, again, that aren't overlevered. exxon, for example, is a company that's now in the value category in past years it's been considered in the growth category i think it still represents value and i think it's a way to hit them where they ain't. >> liz, when you hear people constantly saying, especially with some particular names in the tech sector, that they're overvalued, the earnings aren't there, what's your explanation or justification for investing in these names >> you know, we think there are still attractive opportunities in the tech space. however, we think there's more attractive opportunities in real estate, especially in developing markets. for example, brazil, we invest across america, but we think there's a lot of opportunity there today. they're coming out of recession. there's been a lot of pentup demand for residential buyers. there are people are shopping in malls again. so i think for us, you know, we really see a lot of growth in these markets. and that's where we're focused on for 2018. >> so i'm curious, does that mean that you feel that growth in the united states is overdone now, overextended? >> is nno, i think there could e growth in the u.s., i think it's going to moderate a little bit for us when we look to the real growth drivers, we're an opportunistic real estate private equity firm. we see long term strong growth in latin america emerging market -- >> any others you'd mention, briefly, brazil real estate, you said, who else >> we're looking at mexico right now as well. we think with the elections coming up in 2018, across the region, there could be a lot of narcotic volatility. that could lead to a lot of exciting opportunities for us you know, right now we're looking at mexico's election coming up, it could go with the leftist president and, you know, that could create a lot of opportunity where there's market dislocations and if we can find a real estate company that is trading at values that are below the intrinsic value of the real estate, we think that's an attractive opportunity. >> all right liz bell on growth, michael farr on value thank you, both, for joining us. >> thank you. >> i like that it was growth that wasn't about faang. brazil and mexican real estate. >> right interesting. anyway, we got about 45 minutes to go until the close here dow is hanging on to a 151-point gain, puts us at 25,074, comfortable margin. >> i just saw somebody walk by, that may have something to do with the applause. somebody just walked by with a 26,000 hat. >> is that what -- >> that's what he was wearing. we got much more coming up next on the "closing bell," how we got here. what hit and what missed will the laggards lead the way to dow 30,000? plus, after president trump changes the rules for oil drilling in the atlantic and pacific, we're examining the real impact on the energy industry and the usa this special edition of the "closing bell" as the dow crossed 25,000 for the first time in history, returns in two minutes. ♪ (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. 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(dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? ♪ welcome back to "closing bell," i'm courtney reagan at the new york stock exchange. ste sears is announcing it will be closing 100 more stores between march and april. 64 of them kmart stores, 39 sears stores this is on top of the 350 stores that sears closed last year in 2017 the company saying we will continue to close some unprofitable stores as we transform our business model so that our physical store footprint and digital capabilities match the needs and preferences of our members that's the way they refer to their shoppers as they try to move into a membership model kelly and bill, back over to you. >> you know, kelly and i have been talking about this all holiday season, i equated it to, like, football season and when the season ends -- >> yes. >> -- the next day you hear about all the firings of coaches of the losing teams. and we knew that following the holiday shopping season, you were going to get these announcements. neiman marcus gets a new ceo, macy's closing stores and now sears doing the same. >> yeah, again, sears has been closing stores over time, so this is not a huge surprise, and macy's told us in august of 2016 that they were going to be closing 100 stores over the next several years. so the announcements today from ma macy's of the 11 stores was really part of the 100 you're exactly right, when the holiday season ends, that's when they identify the stores they sort of pretargeted in advance now we have the exact list back over to you guys. >> courtney, thank you, courtney reagan keeping an eye on retail. it's been less tlahan a year since the dow crossed 24,000 for the first time as we sit here over 25,000, what stocks led it? co >> kelly, bill, it's been a hand chl of stocks. the cacaveat, the dow is a price-weighted index shares with the highest prices per shares carry the most weight with that being said, take a look at the march, less than a year between 20,000 and 25 thoir25,000, the stocks is been the biggest movers boeing shares added nearly 900 points to that move. a huge contributor united health group, 429 points from them, alone caterpillar, 407 points added. 3m, 406 points home depot and mcdonald's are vying for the fifth spot, both around the 355-point mark. if you total these up roughly, it means half the gains in the dow during that time span just these five stocks, alone it hasn't been all positive. there have been three stocks in the dow industrials that have actually lagged or been negative during that time span. only three of them merck shares, they've been down, but they dragged 27 points down. they're not as high a priced stock. they don't have as much of an impact general electric, same story big percentage loser but dragging 82 points off the dow big blue, ibm, down 114 points as it lagged the overall market. bill, kelly, as we talk about how the dow is going to be moving, highest priced stocks carryi carry the most weight. those are the stocks to watch. the highest weighted ones. the ones that carried the most weight and have the most momentum, guys back over to you. >> all right stay there we want to have you join the conversation as we talk more about this market milestone with the godfather of technical analysis, ralph, from altera capital partners is joining us from maybe the place that's colder than where we right now, minnesota. and it occurs to me, ralph, you're going to have to add another milestone to the side of your barn where you've been painting the history of the dow now that we're at 25,000, right? >> oh, yeah. i already did that, bill in fact, i had to stop because it got too cold. >> well, now what do you think how do you assess the market are we getting overextended or not at this point? >> bill, i am so bullish, i can't -- i have to sit down and calm down. you know what, and it isn't what just happened in the last couple of days, i think this started in the second half of 2017 when we started to see a major shift, rotation in sectors. you know, i appreciate the fact that the dow is an average, but look at the stocks in there that haven't performed in 2017. like ibm and exxon i think they're going to start to take over some of that leadership this rotation is very powerful, bill, and i think we have a heck of a lot more left >> you know, ralph, looehere's e thing. we're talking about the momentum of the plarmarket, breadth of te gains we've seen can you explain why you feel so bullish about it, why there's no bones in your body that want to lean against this rally? >> well, you know, yes, when you look at some of the accelerated trends, i do get -- i do step back and say, wow, we're a little bit ahmed ead of ourselvs i used the word a moment ago, rotation that's the lifeline of every bull market. as long as you get the rotation, i got energy rotating, very positively got financials take a look at the consumer sectors. discretionary and staples. i think they're going to help support this and move it higher. a lot higher. >> and, dom, that has been a hallmark of this market since the bottom in march of '09 where we have, as i was talking earlier, about this constant rotation it seems every sector has its day as others step aside here, right? >> yeah, i mean, it has been to ralph's point, the reason a lot of people have felt interestingly one way or another, there's positive or negatives here because technology is far and away been the best performing sector in the s&p 500 last year. it's important because it is far and away one of the biggest sectors in the s&p out there as goes tech, so goes some of those other parts of the market. what concerns people is if narrow leadership is there and other stocks aren't participating, is it really that health in i? one of the things i find the most interesting about the move over the last month and a half or so, some of the more beaten down names in the s&psuming thep position check out names like under armour, also kohl's. ralph mentioned energy halliburton is one of the best performers in the s&p 500 since the s&p 2,600 mark as we talk about the diversification of leadership, some people may feel better that other stocks besides technology are doing better although technology still remains far and away the biggest part of the market so as goes tech, so goes the market, right? >> it's true >> absolutely right. >> the point it's not just about tech ralph f, go ahead, then? where is this positioning us how would you be investing in this market? >> well, just some of the names that we just heard, like halliburton, that still has a lot more to go the name that i mentioned like exxonmobil, big blue chip dow stock, a lot more upside potential. i would start making positions in those and the banks are not ahead of themselves yet bank of america, heck, buy it, and put it away. warren buffett said put it away for five years he's absolutely right. come on, guys, we got a lot more to go. my near-term target for the dow is 25,900. i think we're going to do that very easily. my secondary target for the year is 28,700. i think we're going to do that, guys >> i was just going to ask you if you agreed with the president that next up might be dow 30,000, but we'll get ahead of ourselves here a little bit. >> well, 30,000 is, what, 20% from here? hey, bill, that's a $20 stock going to $24 why not? >> why not, indeed. >> i'm wearing my red stie, i'm very bullish. >> very good always good to see you, ralph. sit down and stay calm thanks for joining us. >> thank you. >> dom, see you later. >> you got it. 30 minutes left in the trading session. it's a barn burner of the day. again, i think the energy here has a lot to do with dow 25,000 as much as it is about the inclement weather outside. >> i'm just glad it's not about bitcoin. >> yes, we don't have that to face right now the dow is up 153 points 25,000 is the reality right now. next, more on the market's record day we're going to talk to traders to see how they're positioning themselves, what their energy's like, right after this duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than $1 a day! his secret? selectquote. in just minutes a selectquote agent will comparison shop nearly a dozen highly rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $21 per month. give your family the security it needs, at a price you can afford. since 1985, selectquote has saved over a million families millions of dollars on life insurance. here's a look at the sectors of the s&p 500 today up 13 points remember, we just closed above 2,700s for the first time two days ago up at 2,726. the dow is over 25,000 today we have, let's see, all but two in the green financials leading the way today with a better than 1% gain materials right behind them. interesting telecom is third interesting, because the two who are down today, utilities down 1%, real estate, bill, down 1.5% >> those intrasensitive sectors, that's for sure. heading to the close, 30 minutes left we have jonathan from meridian equity partners on the floor of the new york stock exchange where i was saying there's just this energy on the floor today. >> there really is. >> what do you think's going on? >> with the snowstorm here, everybody makes in it and gets here, as we've gotten to the trading sessions we feel the energy we felt at the end of 2017 the momentum is to the upside. looking at economic data coming into this week, knew we were going to get the jobs numbers coming out tomorrow. something to look forward to overall as we continue to trend higher, the momentum is still building behind it. >> bob pisani said he sensed a little too much euphoria what do you think? >> we don't want to get too far ahead of ourselves here. looking forward to the jobs tomorrow retail numbers come in next week we have to manage expectations here every time we hit these milestones and new highs it gives us an opportunity to step back and see where we undervalued, are we overvalued, where should the market go i feel the momentum will be pushing the market higher. >> energy still going higher, interest rates still going higher those used to be impediments i guess it's the old glass half full mentality now that that signifies a stronger economy, is that the idea? >> that's where it looks at this point right now. continue to talk about interest rates, we're trying to figure out when will that next rate hike come, how is that going to affect the economy and the markets? couple that in with tax reform, it seems like there's all these different potential market-moving activity that con really help us move higher. >> anything giving you sweaty palms at this point? >> look at the vix trading down almost toward 9 bucks. that's something really we got to keep an eye on. the more that comes down, that really concerns me a little bit. >> all right keep an eye on all of those. i'll let you get back to the trading. >> thank you, have a good day. >> kelly time for a cnbc news update, let's get over to sue herera hi, sue. >> hello, kelly, hello, everyone here's what's happening at this hour president trump expected to take up immigration reform next week. the white house announcing he will host a meeting with the bipartisan group on that issue majority whip john cornyn says that meeting will focus on solutions to the so-called d.r.e.a.m.ers immigrant children issue. prince harry and meghan mark markle's upcoming royal wedding creating a bit of a controversy in windsor a government official there is calling for the removal of homeless people and beggars. he wants the streets cleared in order to leave a good impression on visitors. he's getting a lot of kbregrief that. the massive new stadium for l.a. rams and chargers is beginning to take shape. it's expected to have 70,000 to 100,000 seats. and include nearly 900,000 feet of retail space. the groundbreaking took place 14 months ago it opens in the year 2020. and a new york city bike is -- look at that -- is no match for this monster storm a parked bike was caught levitating as the wind gusted and ripped across the big apple today. ci citi bikes weigh 45 pounds that gives you an idea of how strong the wind is today you're up to date. that's the news update this hour, kelly, back downtown to you. >> too heavy for me. >> i know, right >> sue, thank you very much. >> we were fascinated by that video. kind of went viral. >> 45 pounds holy cow. >> there you go. >> thank you, sue. >> that kind of day but inside here the rally continues very strong day. volume is not, you know, huge, but still an impressive rally to begin this new year and, again, you get this new mentality, you were already feeling the effects of the tax bill, but now you get some new money coming into the market as we begin a new year. >> there are the components of the dow 30 today of course, we're watching that as it nears k s -- we the way, almost at 25,001 look at ge leading the way again. this is a lot of the company we saw big selling at the end of the year and reversed here number two, ibm -- dow dupont number three merck is up there, number four intel is lagging again today yesterday it was down big on this chip news. >> you see walmart in the red. retail has suffered today. retail which shows a big leader at the end of last year. and took us almost to 25,000 is now lagging here even as we get pretty good numbers from some of these retailers. the store closures, that doesn't help this whole situation. >> over in the s&p worst performers at the moment, "l" brands down 11.5%. walgreens down nearly 5%. >> still, overall, major averages in record territory. the trump administration announced a proposal to vastly expaend offshore drilling in ths country. we're going to talk about that and which stocks might stand to benefit ahead. this special editi oonf the "closing bell" 25,000 is back in two. a new market milestone today with the dow crossing 25,000 for the first time to join s&p 2,700 and nasdaq 7,000 >> and that's just this week >> yeah, and that is just this week to begin the new year let's get to our "closing bell" exchange today, jim paulson is with us today, michael block and rick santelli's there in chicago at the cme michael block, you don't -- i mean, as impressive as this rally has been, to begin the new year, you don't think this lasts forever. why? >> i think a lot is getting priced in here, but there's a lot of good news the economic data has been great. people are excited about the tax plan and with lower taxes, corporate earnings are going higher and those revisions are happening now. analysts are back to work. i do think q4 earnings season is facing a high bar here, especially in sectors like financials i get the bull thesis in financials but i do think a lot of it's running in, they're not expensive, but i do think that a lot of folks are crowded into these names and we're going to have to see if they can get over that bar it's going to. be difficult i'm not saying bearish here. i'm saying we could pump the brakes and look at sector rotation, some things like tech and energy, where maybe there's more viability than sectors like financials and transports which are, frankly, vertical right now. >> speaking of vertical, the economic data has constantly surprised do the upside these last several weeks, tht include this morning, jim, edp, private sector payroll number up 25k not that it's the most relevant, china had a services index which was its best since 2014. is it all coming up roses or does the market just want to see it that way and how long can this continue? >> well, i tell you, it is coming up roses right now. i really think that what sticks out to me here as we start the year is the one major foundation of this bull market throughout has been climbing a perpetual wall of worry or chronic wall of worry. that is really gone. it's not so much even that investors are optimistic today, it's that main street is the consumer confidence index is almost close to post-war highs business confidence is very, very strong. small business confidence is very strong. we are finally at a point where everyone believes that it is roses, that everything's good. i think what happens a lot is when it gets good on main street, and everyone thinks the water's finally safe, it often gets rough on wall street. i do think momentum might keep this going higher for a while, but i think we're setting ourselves up for a significant correction sometime this year, and what one number we do need, i think, more than anything, kehlicall icall kelly, to change that momentum, a nomination or inflation number, a big surge in oil if that happens, i think we might see the downside for a period >> well, brent is at $68 a barrel wti at almost $62. that's where it settled, as a matter of fact, today. we're getting there. rick santelli, are you sensing that the markets that you follow will start to respond in a more traditional way to some of the economic date tha we've been geg lately as the fed begins the tapering process are we seeing that yet at all? >> only in the short end i do think that the curve is going to have one heck of a hard time trying to steepen just take today, for example, all maturities, knee networkjerg e saw the 25,000 adp at 8:15 eastern. after everything settled up, twos are up two, 30s are down one. 10s are unchanged. sliced through 25,000 like a hot knife through butter i think the dynamic stands i think there's going to continue to be a pretty good channel of buying in the treasury markets and i don't see that changing on the long end. as far as the foreign exchange side, i think the euro is going to be the darling for the first half of the year but i do think that something, a couple of things happened today that make me raise some flags. the 250,000 adp and jobless claims being 250,000, even though it's higher than it's been, it's only about 25,000 higher than the lowest level since the '70s at a time we have holidays, usually it spikes up a l bit. i personally think it calls into question this notion of full employment and we have 95 million people, i think, that are largely going to have a potential, at least some of them, to draw back into the workforce which means that the fed's going to have -- jay powell is going to have a really tough job if all these dynamics stay if place. especially for the back half of this year and in terms of how many rates and how quickly he raises because i think that we're going to continue to add more jobs than the population growth, and if that occurs, it's really going to question this notion of how tight the labor market is. >> yep jim paulson, the inflation number at some point we'll see. john paulson, mikechael block, rick santelli, thank you as always see you later. dow up 153 at 25,076. rallies across the board and i think pretty much all-time highs. >> yes. >> across the board as we close at these levels. we got much more on how to play today's market milestone 25,000. and a blistering storm barreling up the east coast right now, cnbc's contessa brewer is live in boston. >> is that you, contessa >> reporter: guys, i just want to show you how rough it is, as soon as you step outside and this wind smacks you across the face and you get the snow in your eyeballs. how does boston get back to business coming up right tethafr is at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. i've been waiting all day to say this, snow i's been falling. stock prices have been rising all day. the dow at 25,000 now. the hats are being handed out on the floor of the new york stock exchange and it joins other milestones we've already seen set this year, alone. with the s&p at 2,700 for the first time the nasdaq above 7,000 for the first time >> there must be a bomb cyclone analogy in here somewhere. >> i thought about that. i didn't want to use the b-o-m-b word in there too heavily. >> we're on weather watch, the winter storm that is the bomb cyclone blasts the east coast threatening to drop more than a foot of snow in some states and looks like it already has in places wtvj meteorologist andy lassman is back at headquarters, has the latest on the storm's path and how much worse it could get. hi, angie. >> you mentioned that bomb cyclone, really what it's doing is intensifying and why we call it a bomb. it continues to do that. very historical. with it comes really strong wind gusts. you'll notice some of those peak wind gusts into the 80 mile per hour range.ing in from nantucket, massachusetts. if you remember, this actually makes it into the hurricane-force wind criteria, of course, totally different system than a tropical system. nonetheless, giving us some tough conditions up and down the east coast if we take a look at some of those conditions, your snowfall, of course, where that radar is right now, you'll notice we are talking about additional snowfall here as we go through at least the overnight, late night, rather, lours and once we start to go into the overnight hours we start to taper off. as of right now, we're talking an inch of so more more new york city as you go up the coast, still maybe 3 to 5 inches foring at u of a foot already in some spots. again, conditions are very tough especially when you add in breezy conditions where we are dealing with 30 and 40 mile per hour winds at this time. so blowing snow, decreased visibilities, of course, that is the culmination of what a blizzard is. i want to show you, however, once those conditions change, once we get the snow out of the picture which, again, happens as we head into the late evening lour hours we start to see cold temperatures move in arctic air spills in see where you're looking at really light pink colors which is parts of the upper midwest, out toward the northeast, we are going to be talking about temperatures into the teens. this is going to be frigid air you know we've been dealing with breezy, gusty conditions really for most of our day and dealt with the snow, the ice that means we are dealing with power outages -- power outages, rather, and that, of course, is a big problem. power outages and frigid temperatures going to make it really bad for folks as we head into tomorrow. that possibly record-breaking cold is here to stay for the weekend. hopefully some better conditions on the backside of that, but in the meantime, definitely something to keep a watch for, guys back over to you >> angie, thank you very much. she mentioned how the -- how much snow they're going to get in boston today. contessa brewer, bless her heart, raised her hand before everybody else so she could be up there and witness this firsthand. by the way, you're rocking that outfit today, by the way >> reporter: thank you so much that's exactly what i had on my mind you know, it's keeping me warm i have to say. it's one of the best winter live shots i've ever done, ever this is my safety glasses. i got them at cvs. they're actually reading glasses which i don't need so they make me feel woozy. they protect my eyes from this blowing ice. it's hard to tell how much snow's on the ground because it's all blowing the visibility is so bad, the roads are so bad, tonight the penguins/florida panthers hockey game has been postponed. just to give you a sense of how bad the roads are, you're seeing the snow plows, the lines of them over here, in the center of this intersection, the plows have been pushing all this snow. i want to show you the video wu saw earlier of the guy who just ran into the big mountain of snow he said i couldn't help it it was right in the middle of the street it took five guys and borrowed snow shovels in order to get this guy out look, there's people who've had to work in this as well. there's people who've been out today, construction workers, we saw the fedex workers. here's the guy who's -- it's an uphill battle. trying to keep this sidewalk outside of the hotel cleared whew that wind really blowing okay flights. 4,000 flights canceled all those people will be trying to get back on planes tomorrow we'll be keeping an eye on it here, guys. >> there is nobody better. >> such a -- >> nobody better take those glasses off then you can see where you're going thank you, contessa. >> get the inside. >> see you later >> warm up holy cow. 12 minutes left in the trading session here the dow holding steady now we had a gain of 184 at the peak today. now up 151 as you can see, yes, above 25,000 for the first time. meantime the trump administration is drafting a proposal to open nearly all waters in the atlantic and pacific for offshore drilling. we'll have that. plus much more on dow hitting the 25,000 mark when "closing bell" comes right back. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. art cashin stopped by a moment ago and said they added up all the market on close orders and the imbalance was to the sell side by $850 million. and that has taken a toll here. >> that's a decent sized number. >> as we mentioned, the dow was up 184 at the peak. if you're just joining us, yes, th that put us above 25,000 for the first time ever on the industrial average we're pulling back we're comfortably above the average, but a gain of 144 as we head toward the close here. the trump administration aiming to open federal waters to offshore drilling now. let's get over to jackie dean r deangelis. >> proponents of the draft proposal says it's a game changer because it will encourage economic growth, spur manufacturing and create thousands of additional u.s. jobs all while strengthening national security. opponents raise concerns about safety and the environment think deepwater horizon. now the areas that we're talking about drilling here, the coast of alaska, the eastern gulf of mexico, and the pacific, and the atlantic, which those regions haven't seen drilling activity since the early 1980s states like virginia already saying a commitment to preserving the health of virginia's coastline has fueled the growth of the new virginia economy. today's announcement puts the progress that we've made at risk." florida, governor rick scott and senator marco rubio, both expressing concerns over this draft as well. cnbc spoke with the alaskan governor's office who tells us that the governor applauds the decision to allow increased development, but that the governor urges the federal government to work with alaskans to resolve concerns about offshore oil and gas production. meantime, john mcnabb, vice chair of the american leadership council and former chairman own ceo of wilbrus tells cnbc while drilling makes sense because alaska has existing pipeline infrastructure in place, drilling off the east coast does not because it doesn't have that infrastructure and that is expensive to build also remember, this is a draft, that draft needs to be approved. a five-year plan needs to be put in place and leases need to be then sold. the infrastructure needs to be built. all of this is going to take time, guys >> big move. nonetheless, jackie, thank you all right. a record-breaking day on wall street we will have the "closing count down" for you in just a moment. after the bell, more coverage of dow 25,000 including word on high options traders on how high we're going to give you word on how high options traders think this rally wilgol we're back in two. >> toy boat, toy boat, toy boat. it's time now for your business of the week when the founders of l.a.-based fashion brand distilled needed to raise money, they looked to the crowd. they were the first in their industry to launch an equity crowd-funding campaign raising nearly $2 million and adding 1,700 new owners to the business for more, watch "your business" weekend mornings at 7:30 on msnbc. >> sponsored by american express open helping you get business done. there he is. your new brother-in-law. you like him. he's one of those guys who always smells good. his 5 o'clock shadow is always at 5 o'clock. you like him. your mom says he's done really well for himself. he has stocks and bonds. your dad wants to go fishing with him. your dad doesn't even like fishing. you like your brother-in-law. but you'd like him better if you made more money than he does. don't get mad at your brother-in-law. get e*trade. about 2 1/2 minutes left i just have a random trader here doing his job with this hat. that's very nice lot of energy on the floor, in fact, you can usually tell when we got milestones on the trading floor. the photographers come out they're out shooting the traders right now. so you'll be seeing these photographs tomorrow in your favorite newspaper or on your favorite business website. yes, we've got records today across the board the dow now above 25,000 for the first time already this week, we had the s&p above the 2,700 level. and nasdaq going above 7,000 for the first time let's show you the dow this week so far i mean, it's been pretty strong out of the gate, to begin the new year just a steady stairstep move higher new money, new year, new strategies and analysts come back from vacation to try and refigure what the tax bill's implications are going to be for a lot of the companies that they follow and it's been bullish so far what was not bullish today was the retail sector. i mentioned that earlier the xrt down on the day as we hear from, you know, some of the numbers were pretty good for the holidays from some of the individual retailers but the damper on it by some like macy's announcing an acceleration of their store closures, sears holdings did the same thing and neiman marcus ceo stepped aside to make way for another ceo there. and the vix, bob pisani, we mentioned this earlier, john was with me on the floor a little while ago, and we dipped below nine again for a time today. for only the seventh time in history. >> it's important to remind everyone that the vix is not what it was ten years ago. that there are many, many ways to buy protection today in the options market >> right. >> there are weekly options, there are individual options, there are monthly options. ten years ago all you could do was buy these quarterly options that is what the vix is based on that's not the market anymore. so there's many ways to buy protection and it's not clear how much the vix truly represents concerns about people and the market overall >> very busy -- a lot of activity today i'm very impressed with this i keep mentioning, i know, but we've seen a lot of energy today and the traders are really part of this process that we see taking it above 25,000. >> we've talked about this, my concern here is i do smell a little euphoria. now, remember, the fact that this has been the most hated rally in history, cliche now, but it's one of the things that's really sustained the market a lot of people don't belief it. if suddenly a lot of people do start believing it, things are really going to get better on the economic front, they're really going to get better on the earnings front, that removes that cynicism that i was so fond of about the market. it worries me a little the other thing that worries me is a very, very high expectations we now have on the chicken front. that adf report. the other numbers, you know t t that, of course you've been reporting that the economic numbers have been beating expectations and tomorrow the jobs report, well, bill, you take a guess suppose it's -- we're expecting 180. >> adp came in at 250 when the expectations were lower than that we'll see. >> if we get a 240, that's a big bet we got down here, we get 240, will the market go up or concerns that the fed might be aggressive raising rates >> thank you, bob. more records fall again on wall street but write them down in pencil because you can bet there will be more to come. stay tuned now for the second hour of the "closing bell" o this dow 25,000 day with kelly evans and company. i'll see you tomorrow, kell. thank you, bill, and welcome to the "closing bell," everybody, i'm kelly evans for the first time ever the dow jones industrial average has closed above 25,000. it's the fifth thousand-point mark we've crossed in just the last year or so. 150-point gain on the bell that's just about 2/3 of 1%. dow closing at a record. so did all the other major averages today the s&p up about 11 points to 2,723. the nasdaq, actually, the laggard today, just about .2% gain 7,077. the russell 200 adding three points up to 1, 555. don't forget the transports. we'll talk more about this shortly. they're up today to 10,854 so the records keep dropping on wall street. and that round number, the dow 25,000, finally notched. join ing me today cnbc senior markets commentator michael santoli. bill smead from smead capital management and michael, welcome to everybody. a historic day on wall street. the dow closing above 25,000 for the first time s&p, nasdaq, russell also at records. leading the day on the dow, the worst performer of 2017, general electric on top once again while intel was today's big laggard for the second straight day. intel down nearly 2% over in the s&p, advanced microdevices a big winner, again, continuing a theme of what's been happening with intel. stair cycle today, up nearly 5%. "l" brands down 12%. retail might have been the only weak spot in the market, not the only one utilities lower, real estate lower today. what do you make of dow 25,000 >> the defensive stuff lower look, it's a time to assess how far you've come. that's the key thing the dow in this case has been a leader versus the broad market in the run from 20,000 to 25,000 it's up 5 percentage points in the last 12 months more than the s&p is. >> wow. >> you have global blue chip mostly industrials, but really broadly based consumer industrials, tech companies, that have been doing well. i do think you had a little more energy coming into the -- kind of the velocity of the buying in the first three days of the trading day. you can't extrapolate -- trading year can't extrapolate that into the whole year today was a familiar feel, right? 60% of all volume to the upside. you had a nice run in the morning, and then flat all day that was last year that was the kind of well-behaved-type rally that got us to where we got to at the end of 2017. >> bill, when people ask you, they say, man, you know, 25,000, here we are, the markets keep going, have i missed the whole thing or should i get in now what do you tell them? >> well, we stay pretty fully invested all the time because you don't know what's going to happen, but i will say this, that in a short history of financial euphoria, it's explained when you get a period of financial euphoria, there's the people that get completely caught up in it, kind of a mindless way you're seeing that with the bitcoin and somebody announces they're part of the blockchain, the stock goes nuts, et cetera then you've got what i call the super smart crowd, the admired crowd, you know, the tepper, gran grantham, buffett crowd. it's starting to bother me historically the most sensible people say it looks like we're going to go crazy the next six months -- >> grantham true to his character is saying it's going to happen six months before the crash. well, yes, warren buffett, david tepper might be a little more bullish. you still got some high-profile skeptics out there. >> the sentiment right now, the sentiment among both professionals and now the american association of individual investors argues that we're closer to august of 1987 than we are to another 30% leg up like grantham says. i don't know where you take the sentiment to do that >> yeah. michael, let me ask you, are we in the middle of a market melt-up? >> well, i think what's actually happening, to put it in perspective, the market, i think, was a bit overpriced before tax cuts. now with tax cuts, kelly, i think you're going to see companies that are going to deliver pretty solid earnings, basically because why? because they're going to have a much, much lower tax rate. so i think there's a case to be made as tepper said earlier that the market is, at the least, the same valuation that it was a year ago because of what the expectations will be and what i believe will be corporate earnings going forward >> we actually have that statement from david tepper, which he spoke with our scott wapner earlier today david tapper of appaloosa management talking on the "halfti "halftime" report with scott he said "explain to me where the market is rich with earnings forecasts going up and interest rates where they are, how is this market expensive? i don't see the overvaluation. world growth is higher there's no inflation the market coming into this year doesn't look rich. in fact, it looks almost as cheap as coming into last year." tepper also said, "the market can't go down until the bond market gets hit. adding "it's amazing where interest rates are." mike, what would you add to that >> he's basically a credit guy by heritage and expertise. credit is not giving you any reason to really worry about the underpinnings here i do think, though, he articulates very well what now the prevailing story line is, which is that cosmetically, tax cuts are going to bolster earnings growth enough that the arithmetic is going it teto tel when you do the algebra, the p/e is going to look fine. it's not the reason stocks and businesses are worth more in an ongoing basis. i don't think it's going to be as simple as look at the stocks that are direct beneficiaries of lower rates. ge was the worst stock in the dow last year and had nothing but a low tax rate forever. >> now it's the best performer the last couple days >> yeah, you know, i think if you look at ge, that's a story, ge has issues that are much, much deeper than whatever their tax rate happens to be, as you no doubt have seen investors have no doubt noticed in the headlines. but i think -- i think that mike's exactly right, i think that really is the story so is this going to be a market that can drop? is this a market that can drop of course. any time it could be 10%, 15%, in a heartbeat. that's a normal correction but in terms of valuation, with interest rates as low as they are, as long as we don't get some surprise spike in inflation, which is possible, given what's happened with tax cuts, i think the market still is at least fairly valued, maybe not crazily overvalued, but i think fairly valued. >> let's bring in bob pisani he's on the floor. bill, we'll come book to you in one second we want bob to give us a look at the biggest market movers. we already mentioned ge, bob. >> e yyeah, i want to point outo remarkable the rally has been. the dow hit 20,000 almost exactly one year ago, in fact, it was january 17th, and we have hit 1,000-point rallies fairly regularly including march 1st we hit 21,000 august 1st, october 12st, november 20th. this is a pretty regular clockwork kind of thing. it's true, we hit 25,000, lower numbers, low eer percentage gai, it's still remarkable. it's a broad rally we talked about the banks. all the banks with the exception of goldman, all the big regioal. cyclicals moving up as well at the same time. many industrials hit 52-week highs today. dovers, norfolk southern, fedex, deere, textron hit highs at least on an intraday basis the material rally which we saw, commodity price, many at multiyear highs, continue. this was a big theme in 2017 playing out in 2018 as well one of the things that's not on the list today that wasn't a big new highs were where tech names. we did have cisco, big dow component. that did hit a 52-week high. the other thing is, i would point out, this is the broad rally theme, earlier in the week we saw tech names move up, generally called growth names. today if you look at growth versus value, value notably outperformed so smaller names, oil stocks, for example, or consumer staple names, tend to do better today this is part of that great rotation that keeps the market at new highs something falls back, something moves in to take its place that's one of the reasons the market's been so strong. kelly, back to you. >> all right, bob, thank you bill smead, what were you going to say >> i'm just reminded, i think of my history of my time of appearing with you folks on cnbc, i started out in '09 on larry kudlow's show and they put me and three other people in a little box on the screen and they had me on there, we were a small nobody official, bi was a token bull they couldn't find anybody to be bullish in '09 they had this guy from seattle come on the show and be bullish. and we were very bullish and we were very lonely and we were on in h '10 and on in '11 and on in '12, on in '13 and we were the token bull for five years and now you bring people on and they're crawling all over each other to be the most bullish the people that -- >> how does that make you feel does that -- someone who's always pretty much fully invested like you said >> first of all, so what we're doing to do with our portfolio, we're going to tack toward as much as we possibly can with as little turnover as possible to the companies we would want to sit through a bear market with and i don't agree with the logic about the 10% to 15% correction. i can tell you, with financial assets as a percentage of household net worth this high in the past, those declines aren't 10% or 15% we like our stocks. >> you're comfortable, bill -- your point is whether it's a 10%, 15%, whether it's much more than that, the stock market ultimately drops, you're not getting out of it, you're not going to cash, not buying b bitco bitcoin. you're picking companiies you're comfortable owning throughout that period? >> we lost 50% in the first 14 months of the '08, we have made -- each $10,000 is now $24,000. so i was the first buyer we got terrible market timing. i'm not a market timer all i can tell you is when i started in this business in 1981, interest rates were -- bob can -- interest rates were sky high stocks were 6 1/2 times earnings and no one wanted them everybody was bearish. everybody that would have been on tv -- >> i hear you. >> -- if there was such a thing. it's just the exact opposite extreme. i know david tepper's a great money manager, i know jeremy grantham is a brilliant guy, willi warp warren buffett is a brilliant guy. they're apologizing, pay 25 time earnings for a staple company growing 5% or i will pay 150 times earnings for the most interesting revenue growth story in the history of mankind, amazon. >> yeah. >> while that's going on, the 35r7 apartments are going down in value in new york, going down in value in seattle the coastal cities are at risk. >> all right. >> if amazon or any of those guys stumble, kadybar the door. >> i love the history lesson, by the way. >> there was tv in 1981, just not financial tv networks. let's talk about amazon for a second mentioned tech was not a big part of the rally. earlier this week, luke venture's gene munster making a bold amazon call, saying the tech giant is going to buy target this year he was on "squawk box" yesterday to explain why take a listen. >> part of it is what they were doing with whole foods, that was a big tip of the hand that amazon really voalues two things which is a high-end customer, and second and surprisingly, which lines up nicely target, and second and surprisingly, is they value offline and i think this is the part that is a little bit of a step in a different direction than most people think. >> well, we have another thought. james is here. thank you for waiting here patiently. you're saying that target isn't necessarily the best fit for amazon, which you cover. you do have interesting other alternatives who are they >> i mean, before i get to that, i just wanted to say, the reason we wrote the note, all these companies are being floated out and 13ekspeculated on like rite and target we talk to amazon, read annual investment letters jeff bezos writes if you read those, understand what's happening, it's not just about the footprint, it's about the ability to flex the muscles on the pricing side and about improving selection. >> okay. >> why whole foods was a good thing. >> exactly when you look at target, it's not necessarily there. think about oacategories, bbeau, threw out ulta as an example beauty is one that's an antiquated experience and the pricing is still relatively high lyft is one that's private the same time you're looking at last-mile logistics and also capitalizing on their self-dr e self-driving efforts. >> you have -- not uber, you have lyft, ulta as two possible acquisition targets by amazon. what's the third >> costco. the reason i'm saying it is because of the current private label which is a solid name. but i just want -- >> more than solid. >> no, it's a very good name >> by the way, amazon emulated the costco model they've done the membership, they capped margins, made sure they keep prices low it would be a weirdly synergistic fit. >> one thing i think is worth keeping in mind is the whole foods deal, first of all, you didn't have a lot of people saying whole foods, target of amazon next month. it was very opportunistic on a lot of levels. lot of things going on at whole foods made them a seller it's not necessarily the case, i guess, that jeff bezos and team are there cooking up this list of companies they have in their sights at this very moment right? >> right i don't think so it's all about being absolutely opportunistic and all about also having the global reach because it's not just about the u.s. for example, with whole foods opportunities no the to expand domestically but mainly to expand overseas so all those things need to come together i just think there's so many names being thrown out there and it's really important to look at it through the right lens. and that's what i'm trying to do today. >> i want to get your two cents on this. quickly. >> yeah, i completely agree. i don't think that amazon is out there with a big shopping list even if they are, again, an incredible growth story. i think it is going to be opportunistic. the whole foods deal made a lot of sense to me the target one doesn't make so much sense to me. >> kelly >> smead, we'll give you the final word close it out here. >> we're in seattle, amazon opened their amazon fresh and amazon go locations in seattle i drove by there every day back and forth from work. virtually no one was there they bought whole foods because the amazon fresh and amazon go is a disaster. okay they bought that because they feel they have to succeed in groceries to be a much larger company. >> so do you think they should buy target or someone -- kroger, et cetera? >> we own target i prefer they don't because i do not want to own the time warner in the aol transaction >> we'll leave it right there. guys, thank you all. a lot of good stuff today. especially on this key milestone day for the markets. bill smead, michael, and james. a lot more ahead on this special edition of the "closing bell," dow 25,000. >> options traders see the markets from a very different angle. coming up, john najarian, mr. options, on what they think about where the big three, the dow, s&p, and nasdaq, will head now. plus, another indicator for the big caps the transports where the transports lead, the dow often follows. this special edition of the "closing bell" dow 25,000, is back in two minutes. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. the dow jones industrial average today closed above 25,000 for the first time. joining us to discuss where options traders think the market's heading is john najarian from the najarian family office. welcome, sir. >> great to be here with you both. >> you're reading the tea leafs for us, what do they say >> they say people are still very bullish they were cashing in a lot of bets earlier, michael then they came in and basically rolled them up to a higher strike price. so what that tells you is somebody who's been right and riding a nice, long into the beginning of the year, cashed out of the lower strike as the strike went deeper into the money and said, you know, what i still want in. and they bought a ton of upside calls in the s&p 500, in the nasdaq, the qqq, and what they avoided for the most part, guys, was they avoided the iwm they avoided -- >> the russells, the small caps. >> it was way under normal volume. >> the russells haven't been doing as well the last couple sex bleach sessions let's take the s&p 500, for example. where do they think it's going 123. >> buying the 275 calls in the spdr, spy, which, of course, is why, a smaller version of the spx, buying those aggressively at the 275 strike. >> that's 27.50 equivalent. >> just two weeks from now they're betting on bigger numbers out in february and march. >> 3,000 or are we -- >> yeah, let me see -- 130% of normal trading volume on a big up day where we added up big day th they added to it same thing in the qqqs bank of america was heavy, 250% of normal volume in the banks. i mean -- >> which is one of the best performing sectors today. >> yep and also, let me see, the hyg. so that is -- >> high yield debt. >> yeah. high yield you wouldn't expect that, mike, to see a high yield getting that kind of goose, but you're getting it. >> it's almost like people are buying upside risk insurance right? they want to get -- >> that's good i like that. >> -- that they're with perhaps something to hold on to if, in fact, markets run away to the upside. >> john, thank you we'll come back to you in a bit. it took six weeks from the dow to surge from 24,000 to 25,000 up next a market historian weighs in with what we expects to see when we hit dow 26,000. and take a look at how the dow 30 finished today. the big winner was ge. ibm was up there, too. intel having another tough session. "closing bell" will be right back 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 to "closing bell," i'm josh lipton some news just here crossing from apple apple saying that the app store kicked off 2018 with a record-breaking holiday season culminating in $300 million in purchases made on new year's day. during the week starting on christmas eve, a record number of customers spending over $890 million in that seven-day period in 2017, alone, apple saying ios developers earned $26.5 billion, that's more than 30% increase over 2016. investors care about the app store because it's such a big part of that faster-growing higher-margin services business. in its last reported quarter apple said the services business jumped 34% to $8.5 billion kelly, back to you >> all right, josh, thank you. apple shares moving a little bit higher, but the dow moving a lot higher today closed above 25,000. president trump said earlier he doesn't believe it could stop there. >> we broke a very, very big barrier, 25,000. and there were those that say we wouldn't break 25,000 for the end of the eighth year we did, in fact, break 25,000. very substantially break it. very easily. so i guess our new number's 30,000, but what it means is every time you see that number go up on wall street, it means jobs, means success, it means 401(k)s that are flourishing. >> so how much credit souhould h president get for the rally? joining us for their take, cnbc contributor ron insauinsana and hersh. jack, we'll begin with you, how much of this is because of the president and his policies >> he serves some credit market up 34.5% since he was elected. trimmed and curtailed regulations. got the tax cut through. you know, there's some credit due there. i would say. >> ron, is it a lot about deregulation because we heard not just the president but a lot of market watchers say, look, it might not get the headlines every day but there's been a lot beneath the surface twhahat's been moving a easie ining on that front. >> adds to a series of a company's bottom lines and, listen, it's on the president's watch. if the market had gone south, he would have gotten the blame. he does get some of the credit granted this is an expansion of a market that started a bull run on march 9th of 2009 and had bigger years, we should point out, than what we lad had in 20. again, not to get too political. what happens on your watch, you get the credit for, what happens on your watch, you game the blame for. this is a bull market that's approaching 9 1/2 years old. >> yeah, one of the longest, mike, we've ever had what about tax reform? you talked about how in some ways the best thing that could happen for the market it would always happen tomorrow. >> it did happen. >> how much of a factor is that? >> i think it's a significant one. it sort of gives you another chapter for the story of why the market should keep going higher. because you were going to run out -- you kind of run through a lot of these stories, right? it was for a long time it was qe, the fed is the only thing keeping this market. then it was buybacks then it was, well, dividend yields are better than bond yields you keep having to replenish the bullish narrative. tax cuts have a real-world effe effect $1 trillion in government debt, hand it to the private sector, it's going to be good for people who own stock and run businesses and people who employed by them. all that stuff is going to be reflected in the stock market. presidents get too much credit and blame most times but the market incorporates everything that's going on in the world which, of course, inkpluds wcluo happens to be president at the given moment >> is big part of that jeff, what will you be watching as we enter 2018 i guess what i'm trying to say is how much are you watching the white house? and congress and what happens there? as we look for maybe those next catalysts. >> first things we're watching is our january barometer, santa claus rally. first five days a january indicator trifecta. if they all come in bullish, it's a very bullish indication of the market for the rest of the year even though it's a midterm year when you get those three things positive, the doisr up, like, 17.9%. one of the things that pushed us to be bullish recently, way we had the low point in february '16. the math from there, the dow t puts us up, dow 29,000 best-case r scenario for our -- >> this year did you say dow 29,000 is. >> i did say 29,000 as our best-case scenario maybe 47%, 50% pockssibility if you read our forecast from last month. end of last month. >> all right. >> with the elections, even if the dems take over, not much is going to happen. they're not going to have the two-thirds majority to turn over anything i think things have gone as they have been until potentially 2021, january, the next inauguration date is >> all right ron, also, if we are turning our attention to infrastructure which you hear people talk about here, is that going to kind of consume the oxygen for the market for the next little while? >> i'm not sure how much the market, kelly, is going to be consumed by that obviously there's been some reaction in stocks that would benefit from an infrastructure buildout or rebuild. i think other thing that needs watching is if, indeed, the economy accelerates further and corporate profit growth moves higher, the fed comes back into play and possibly accelerates its rate hiking schedule i thing that's going to be a key variable this year i think the market looks fine for the next several months but if the fed, we saw this in the minutes last week, starts talking about having to raise rates more than three times, four times, five times, six times, that changes the calculous a little bit with respect to valuations in the stock market think that's underdiscussed at the moment >> all right >> i would just add, we're in a period where the market has the luxury of not needing anything in particular from washington right now. the world is growing things look very good. i also can't point to previous bull and bear markets really that started or ended because of some specific action by the president or congress. so it tends to be kind of running in parallel to the market, not the causal >> there were drops like in 1962 when president kennedy wanted to impose steel price caps. we've seen interruptions but not bear markets launched from the white house. more often than not from the fed. >> guys, thank you both ent. >> thank you >> ron insana -- >> i was a year old. >> and already watching the market. >> time for a cnbc news update with sue herera. here's what's happening ate at this hour, everyone, near whiteout conditions on the east coast. hurricane-force winds batter the area flight aware reports thousands of flights have been canceled in the u.s. due to that storm jfk is closed until 8:00 p.m laguardia 6:00 p.m and boston's logan airport 5:30 p.m. eastern time. a drone capturing peaceful video along the carolina coast just hours after the monster snowstorm blew through the issue now becomes the cold las blast. it's expected to drop to 18 degrees there. weather apparently not a factor in a deadly multi-vehicle crash in texas authorities say five semitrucks were involved. four of them were stocked when a fifth truck rammed into them two people were killed that crash is currently under investigation. and now to the metropolitan museum of art which will begin charging a mandatory $25 fee to visitors who don't live in new york the museum's pay what you wish admissions policy will now only apply to state residents it's enacting the new policy to put the museum back in the green. it starts on march 1st that is the news update this hour, kelly, i'll send it back downtown to you. >> i was half expecting the met to cite tax reform with the s.a.l.t. deduction, getting rid of it, we got to keep it affordable for new yorkers anyway, they're not politicizing it, thank you, sue. >> you got it. >> sue herera. dow closing above 25,000 for the first time today next, "fast money" trader guy hotoi is going to tell us w pl ithis special edition of the "closing bell" is back in two. ♪ james r. and associates. anna speaking... ♪ yes, i understand. well, well what's your guess?! thanks. ♪ james r. and associates. anna here... ♪ it's ridiculous, pour into the hudson's a... ♪ james r. and associates. anna. no. no, no, no, no... ♪ what i really wanted to do... ♪ [phone ringing] baker architects. this is anna baker. hi, thank you so much for getting back to me.... this is what our version of financial planning looks like. i am so excited to be working with you... tomorrow is important, but you're ready to bet on yourself today. spend your life living. today's the day. find an advisor at northwesternmutual.com. welcome back records falling again on wall street take a look at the dow up 152 points today to close above 25,000 25,075 is the level there. the s&p 500 up 11 to 2,723 the nasdaq up 12, 7,077. that's records for all the major averages today. here's a recap of the day in our "rapid recap." >> there it is dow 25,000 halfway between 20k and 30k. >> the markets had a kind of change of attitude you know, last week, we were thinking we were going to have to put santa claus' face on a milk carton and the year was not going to be bright new money for the new year kept pouring in, seems to continue to pour in today. that puts us in reasonably good stride. >> the dogs are doing well exxon outperforming chevron. i think that's remarkable. ge obviously was down more than 40%. it's kind of inching back up >> i spoke exclusively to appaloosa's david tepper today who told me the following. "with earnings forecasts going up and interest rates where they are, how is this market expensive," he said, "i don't see the overvaluation. >> we broke a very, very big barrier, 25,000. those were there who said we wouldn't break 25,000 by the end of the eighth year and we're in the 11th month. so i guess our new number's 30,000 but what it means is every time you see that number go up on wall street, it means jobs, means success, it means 401(k)s that are flourishing. >> i am so bullish, i can't -- i have to sit down and calm down >> for the first time ever, the dow jones industrial average closed above 25,000. it's the fifth thousand-point mark we crossed in just the last year or so and joining us now with how to play dow 25,000, now that it's up there, "fast money" traders tim seymour, guy adami thanks for joining us. good to see you both tim, let's start with you, first of all, what do you think about the move today >> look? you think about the data we've had in reinforced overnight, tremendous pmi, composite pmis, manufacturing and services out of japan, europe is at the highs of their cycles. when you think about where the world is, it doesn't surprise me the industrials and what we've seen on followthrough is right there. the question ult patly is, where are valuations and if you look at a lot of the names we've talked about within the dow that underperformed, you can make b an argument that some of these names especially those who would be seeing upgrades in terms of eps from tax actually look pretty interesting including the pharma sector, including some of the demographic -- core domestic plays and then -- >> okay. >> -- look at a fedex which is behaving almost like a tech stock for reasons that are specific to this company and the economy. so i think fedex's while it's had a move is a name you can stay with. >> all right guy, i noticed your financials did pretty well today. >> yeah, they did. listen to the montage, tim and i were just listening, one guy said he was so bullish he couldn't stand up or sit down or something, makes me want to go sti sell everything. because the unanimity with people who are bullish, people are tripping over themselves to say how much more bullish can i be than the next guy you know what, sometimes the crowd is right i think that's a situation that we find ourselves in so i still think the financials work i think based on price to book value, they still have runway to the upside i think these defense stocks, which have just been on fire, ever since then-candidate obama, president obama, was elected, those things have quadrupled in some cases i think they still work. industrials, i mean, i throw fedex in from to a certain extent names like honeywell, roper, boeing to a certain extent, the industrials are still relatively inexpensive. there's still some tremendous tailwinds for them as well i think all those sectors work. >> tim, who else you mentioned fedex. what are other things you think are interesting here >> if i think about the broader economy, first of all, let's get into the tech space because a lo the of people thought the end of the year tech was finally giving ground so the rotation we're seeing i think goes back into the growth tech. but also value tech. so look at a cisco, which for many years was really underperforming the peer group now i think at a discount. so eight times roughly eb to free cash flow for a company that's seeing a major play from infra-tech buildout. this comes with the cap-x that's being spent. i like a cisco, some of the auto companies still. got the great numbers yesterday. if you think about the domestic play, consumption trends and disposable income trends, a year ago everyone was writing off autos though valuations were cheaper. people are reassessing a lot of this is positioning and perception. >> infra-tech buildup. i love it. >> kell, 2itim and i decided to dress alike today. look, we both have the blue, red ties, jeans and boots. we did it for you. >> snow day. >> everyone's on the same side of the boat. you know, that's another animal spirit. >> a metaphor for something scary i think. >> different bottoms kind of styling, though. >> well. >> guys, thank you very much. >> more than i wanted to show. >> yeah. i'll leave it right there. >> sorry about that, everybody. >> catch more of the "fast money" gang at 5:00, one wall street analyst will make his case for why the cryptocurrency world is worth $10 trillion. the russell 2000 and dow transports did also rally to new highs today but they underperformed in 2017 will 2018 be the year they catch up that's next. and you're looking at all 11 sectors of the s&p 500 see how they finished on this record day financials as we mentioned were the best performer up nearly 1%. real estate down 1.7% on the bell you'reatincn, rsin wchg bcfit business worldwide welcome back it wasn't just the dow hitting 25,000 today, the small caps and the dow transports hit record highs of their own but they still lagged the three major averages john najarian is sbback to weig in on what's next. they lagged last year a little bit. >> yep. >> are they going to catch up in 2018 >> yes. >> that was fast. >> all right, thank you, john. >> i'm out of lehere yeah, they will. i believe they will. tl they're such a big beneficiary of the tax cut, kelly. >> why isn't the russell doing better with all that being the case >> as best as i can figure right now, people are making their bets on the big caps because they, without moving them too much, can put a lot more money to work. they put, you know, the billions of dollars, almost trillions of dollars, into the small caps right now, they're going to run them i mean, when you're looking at a half a percent or .75% move for the s&p 500, you're not so worried about that, but in the small cap if they put anywhere near the money they're putting into the s&p or dow stocks right now, i think they'd move that thing 3% or more in a day then you're worried about it's just your market, you're pushing it and all of a sudden it can pull back really fast, too. >> what do you think >> i think there's a global character to this move, to the rally, in general, which is not going to necessarily be centered on the small caps. the other thing i come back to, i really don't have a strong position as to whether they'll outperform in the short term or not. when you had credit conditions so easy and strong a favorite group, good performer for a long time, still they have not been able to catch up. to me, those are a couple dogs that aren't barking here it sort of makes you ask why they haven't performed until now. >> what do you make of the transports meantime? >> stratransports is much more interesting, global cyclical play i understand the strength there. obviously it's very dominated be i fedex and the shippers at his this point it's okay. it's a bellwether group. >> what point do we start talking about amazon in the same breath you mentioned fedex the way we do apple, when i say apple is a e rretailer 500-plus retail stores there and amount of retail that goes through those stores same thing with amazon as far as a bellwhether for transimportpo. >> that's what's happening in the background of the transports. >> true. volume, dow theory and so forth, they wanted to see confirmation, volume confirmations and things like that. you're seeing that in the s&p 500 in spades. i described at the top of the show -- >> yeah. >> -- you know, 200%, 250% of normal volumes in some of those classes. where you're not seeing it, where it's only 45%, i think, of normal volume, again, back to those small caps the iwms so they're not getting the love yet, kelly. >> yeah. >> that means, in my mind, they'll play catch-up later on. >> john, thank you again for joining us john najarian on this record-setting day. while the dow soars past 25,000, tesla isn't participating today. we're going it tell you why it was down, next to their breeding grounds. except for these two fellows. this time next year, we're gonna be sitting on an egg. i think we're getting close! make a u-turn... u-turn? recalculating... man, we are never gonna breed. just give it a second. you will arrive in 92 days. nah, nuh-uh. nope, nope, nope. you know who i'm gonna follow? my instincts. as long as gps can still get you lost, you can count on geico saving folks money. i'm breeding, man. fifteen minutes could save you fifteen percent or more on car insurance. big day for the dow and all markets, but tesla falling nearly 1% after shifting model 3 production guidance, again phil lebeau has those details. phil >> and kelly, it's that guidance, that's what worries a number of investors today. in one reason why we saw tesla shares under pressure the entire session. did come back a little bit from where it was this morning. here's the guidance that tesla laid out yesterday in terms of model 3 production previous guidance was by the end of the first quarter they'd build 5,000 per week the new guidance is by the end of the first quarter it will just be 2,500 per week and then 5,000 per week by the end of the second quarter they have essentially stretched it out over another quarter. what was the impact of changing that guidance? well, on wall street, while there were many analysts who put out notes saying, look, this was a disappointment, what we did not see were any downgrades. there were no downgrades the analysts were disappointed but not surprised. and the question is also out there, is this going to prompt anybody to potentially cancel their reservation? i don't think it will. i think the reservation level is probably close think where it's been for some time, which is well over 400,000. tesla deliveries overall, last year they did exceed their target by about a thousand vehicles. they said, look, we'll hit at least 100,000. that was the new guidance they gave late in the year. they delivered over 101,000 vehicles but it's not the overall deliveries right now that is the focus for investors, kelly the overall focus is what's going on with the model 3. we should get more clarity on the model 3 and whether or not this ramp-up in production is accelerating, when the company reports earnings, that's likely to be early february, it might be late this month, but more likely early february. >> all right, phil, thank you. phil lebeau. joining us now is chip choudary and gabe hoffman who says tesla is his largest short position chip, do you think they need to get that model 3 production up quickly or no? >> no, it wasn't a hiccup. it's showing what tesla is all about. they're creating the industry and investors are only focused on one thing company as a whole having a piece, model 3, is a small piece in the hole puzzle it whole puzzle it's model s, model x, and model 3. everything is on the platform. >> gabe, what about you, what's the significance to you? >> well, let's keep in mind that tesla missed their q4 model deliveries for model 3 by 80% compared to what they told us just two months ago. the same thing happened in q3. they missed by 80%, the same number that they gave when they reported their earnings until the middle of the quarter. so you have to ask yourself, why would anybody invest in a company where the management seems to just flat out lie to the public all of the time >> trip? >> i think my friend is somewhat little on the wrong side tesla's stock trades on the order book they have, the order book for their model s, model x, model 3, and tesla semi, and also the emerging model for tesla energy think about the two major disasters that happened, one in australia, other in puerto rico. there's only one company in the whole world which has come to the rescue, that is tesla, with battery backup look at what happened four days back at atlanta airport. not a single airport has a complete grid backup solution. it is only tesla that could address that issue for example, delta lost 15 to $20 million, just one airline, when atlanta airport came down tesla is an industrial -- >> gabe, what about that >> puerto rico is really nice. the reason we invest in companies is for them to make money and get paid i don't think tesla's getting paid from puerto rico. and they haven't told us if they've made any money from australia. i'm glad our friend brought up tesla semi, because i believe that was essentially fake news here is what i mean. when we think of a prototype, a working prototype like elon musk drove out on the stage at the event when they unveiled it, that means the truck actually does what they claim specifically i'm talking about this 30-minute super charging for 500 miles of range now, independent scientists who are familiar with tesla's battery technology have been quoted in places like "the wall street journal" essentially proving that that technology does not exist right now in other words, what tesla is telling us the semi truck can do, it cannot do in tesla-speak, that's called aspirational in real world speak, we call that a lie >> trip? >> i think my friend was not at the tesla event. i was there, spent four hours there on 16th of november. tesla semi is the only product in the world which is antigravity. not a single one in the market today can accelerate up a gradient it is only tesla this is called grassroots innovation that's what investors are paying for, not for bean counters they're paying for something who is an exponential thinker, and who can take major risks the rewards will be exponential. tesla is going into -- >> gabe? we're almost out of time gabe will have the final word. >> just one simple question. can the semi truck today charge in 30 minutes, yes or no >> in two hours -- in two years from now, it will. not only that, the technology that tesla is putting in place has made all the naysayers wrong. >> so it's "no." >> no, the tesla semi is coming in 2020. by that time everything that tesla is saying will be coming there. >> all right >> remember, tesla is -- sorry >> that's fine, very respectful, i appreciate that. guys, thank you for the debate trip choudary, gabe hoffman. you can see the long and short position in its full glory there when it comes to tesla the dow crossed 25,000 for the first time we'll get you ready for tomorrow's trading right after this and don't miss "fast money" coming up at the top of the hour duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually, duncan got his $500,000 for under $28 a month. less than $1 a day! his secret? selectquote. in just minutes a selectquote agent will comparison shop nearly a dozen highly rated life insurance companies, and give you a choice of your five best rates. duncan's wife cassie got a $750,000 policy for under $21 per month. give your family the security it needs, at a price you can afford. since 1985, selectquote has saved over a million families millions of dollars on life insurance. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. at ally, we created a savings account with a great rate. but if that's not enough, our app helps monitor your spending too. and if that's not enough to help you save, we could start a carpool. look at this traffic. don't worry. ok, if that's not enough we'll start a trainpool. oh i have a meeting in five minutes. and if that's still not enough... i got it. we'll just create a shortcut. we'll do anything, seriously anything to help you save. ally. do it right. talking 4th quarter? yes. there you have it, a third trading day of 2018, and man, what a way to start out the year first we closed above 2,700 on the s&p, today above 25,000 on the dow. guys, quick final thought, especially as we look ahead to tomorrow and we'll get a big jobs report. >> we are. the market has been feasting on good economic news we'll watch the bond market react to a good jobs year. we'll see if we get a good wage number, a blowout unemployment rate or something like that and see if that jogs the market. >> john? >> i mentioned about the high yield bonds, hyg that plays into what michael is saying about bonds that could be playing chicken also, if indeed we get a great number tomorrow. >> i'm thinking about the wage thing just for a second. even if it comes in strong, i wonder if it spooks people that much >> i don't know that it has to spook the stock market that much i do wonder if it's going to jog the long end of the memory curve. >> thank you, that does it for "closing bell. "fast money" starts right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," full steam ahead for the crypto craze has bitcoin takes a break and its rivals surge how much is the crypto world worth? $10 million according to one analyst, he'll be here to explain. and a major crypto announcemen