Transcripts For CNBC Power Lunch 20161118

Im Michelle Carusocabrera. Heres what else is happening at this hour. Fantasy sports sites draft kings and faneu duel agreeing to a merger. Chrysler recall. And stocks trading lower but we found some bright spots. Not surprising in the Financial Sector again. Citizens financial, m t hitting record highs. It is a busy friday. We have susie welch with us for the next hour. Lots to get to with you. We have a lot to talk about today. Were excited something happen since the last time we saw you. A little something. Speaking of which, a trump trifecta of news today. The west wing starting to take shape as donald trump picks his team. The ceo of auto company ford making some headlines following a conversation he had with the president elect and the markets rolling up the records following trumps win. Lets start with the latest on trump team. Cnbcs john harwood has the latest. We heard talk from donald trump about conciliation since his surprise victory in the election last week. Today we got three hard line picks from donald trump. First of all, the Tea Party Congressman mike pompeo of kansas for cia, gets praise for his brains and his temperament. Hes also said things about muslims that are at odds with the strategy that president george w. Bush and president barack obama have employed to try to diminish the idea of a civilizational battle between the United States and islam. Secondly, you have, for National Security adviser, retired Lieutenant General michael flynn, someone with a more volatile personality, also very aggressive and confrontational with respect to the battle against islam radical islam. He said in a tweet earlier this year, fear of muslims is rational. That will get scrutiny and criticism. And Jeff Sessions, the senator from alabama, chosen to be attorney general, Jeff Sessions is someone who was rejected by the senate in the 1980s on the grounds of his past racial views in statements. And we have just gotten a statement from chuck schume erk the inco saying that even though he knows sessions, works out with him in the senate gym, that that does not exempt him from questions about his past statements concern about his leadership of the Civil Rights Division of the Justice Department, for example, in light of his views on race and also on immigration. And one other thing on his immigration views, Jeff Sessions has tangled with big american companies, apple, microsoft, intel, facebook, and others, over what he says is their abuse of the h 1 b visa program. Thats something theyll look at. Jeff sessions will have a battle for confirmation, but i expect he will be confirmed by the senate. John harwood, thank you very much. The president elect is taking a bit of a victory lap about keeping American Auto jobs right here. But trumps tweets about it also causing a little controversy last night. Lets get the details now from cnbcs own phil lebeau. The controversy more about confusion over what he tweeted and what is actually happening. Well show you the tweet first from president elect trump. He put this out about 8 00 last night saying just got a call from my friend, bill ford, chairman of ford, who advised me that he will be keeping the lincoln plant in kentucky, no mexico. First of all, the lincoln plant, the Louisville Assembly blaplan was never going to mexico. What donald trump was talking about is the fact that the lincoln mkc production line will stay in louisville. Only 9 of the vehicles they built at that plant, back in 2015. Ford planned to end mkc production in kentucky by 2019 and after that, production would have moved to mexico, not known for sure, could have moved to other places. It will be staying in louisville. By the way, i get this question all the time, in terms of how many vehicles are sold in the u. S. By ford and where do they come from . So far this year, they sold just over 2. 1 million vehicles. 78 of them built at plants here in the United States. The remainder, almost all of the remainder, a few strays there, but almost all of the remainder from plants in mexico and canada. Thats the growth in production there because of nafta, and speaking of ford, in last week, since the election, look at shares and what they have done relative to s p 500. By the way, guys, even though theyre going to be keeping production in kentucky, still goinged f Going Forward with their plans to move small car production to mexico. That does not change. Thank you very much. Lets finish out the trump trifecta today. Investors piling record amounts of money into the market, bob pisani live at the New York Stock Exchange with the trumpanomics and surprising predictions from goldman sachs. New highs, all the major indices. Look at the outperformance from the small cap russell 2000 since the election. Up 10 versus the s p and nasdaq. All on higher growth prospects. Small companies would benefit more than Big Companies from reduced regulations. Main reason it is moving there. About the fund flows, talking about how the small investor is perking up, trade volumes increased since the election. Look at this. You see it new on the fun flow. Stock funds saw 23. 6 billion in inflows this week. Look where it is going. Etfs, 27 billion in inflows. Stock mutual funds could have outflow. What does it mean . It means investors are continuing to flock to low costs, mostly index etfs, the big winner. Look here. There has been inflows into the financials, materials, and treasury inflation protection securities and outflows from Precious Metals and emerging markets an bonds. Goldman sachs, early start on the 2017 predictions. Take a look. I was surprised by this. They expect the s p to be up 1 next year. They acknowledge more growth. Just going to mean the money will go into stocks that could benefit from reflation like materials and industrials and those who would benefit from rising rates like banks. Money would be coming out of low flation names like Consumer Discretionary and utilities. Money moves around, winners and losers, but the winners only marginally outpace the losers. They expect the Republican Led Congress will pass trumps economic agenda for higher infrastructure and defense spending and the concerns that trump may start a trade war, they acknowledge it but say it is likely everdonoverdone. On inflation, it is going up, they call it tax cuts, Infrastructure Spending and defense spending, a recipe for inflation. I would disagree, 1 on the s p, if we get real dwroegrowth, 3 prices could go higher than they are right now. Something to watch, thanks, bob. Susie welch with us. Lots to talk about whether the new trump regime can change the stock market and growth in the United States. I got a call the other day from a ceo who is in a very heavy regulated industry and i asked, what do you think about the election . He said, this is a guy who has run a company, in an industry, covered with regulations, increasing regulations, he said, i woke up and thought i was in a different country and the chains had come off and i could hire who i wanted to hire, a whole new day for us and felt incredible optimism and excitement about growth. And that business will be unleashed by the trump he had not been a big supporter of trump, but then for social reasons, but then looking into what the future meant for his company, incredible enthusiasm. Two new pieces of data, a massive rotation away from bonds and into stocks. The amount of money that went into stock funds last week, Third Largest on record. And bank of america, global bond index fell more in the last two weeks than it has since 1997. Should you follow those moves . Katie nixon of Northern Trust Wealth Management chief Investment Officer is here with an answer to that question. Should investors be doing the same thing that has been happening over the last week . Yes. We believe that this rally has legs here and really interesting comments you made about ceo growing enthusiasm. We see that on the part of investors also. Investors have been waiting for the time we could pass that baton away from a fed focused market who had run out of steam to one where we could see fundamentals improving. And we do see that under the pro Growth Strategies that are being espoused by the Trump Administration with the Republican Led Congress that accelerates the likelihood theyll come to fruition. The Business Community is happy. It is 60 degrees on a friday. Everything is beautiful. Im going to be a jerk. Is it possible that we get ahead of ourselves here . I look at the market, stocks heavily shorted are the most up. Seeing this huge rotation. Your business leader, youre dancing, i worry, nothing few things tend to live up to the hype. You raise a really good point, brian. Right now the market is going on, enthusiasm in news and not on anything substantial because we dont know really the timing, the magnitude of the trump strategies. What we do know is theyre progrowth. But there are 535 potential roadblocks on capitol hill, 100 senators, 435 congressmen and women, even republicans have their own agendas. Do you think all this stuff is going to get through. Looks look a pony and a rainbow. Not all the stuff is going to go through. There will be without a doubt a loosening of regulations because that is part of his agenda in which he got elected. There will be there has been a call for it for a long time. I think it is also important to acknowledge that things were already improving before the election. We have come out of the earnings recession. Were smeeg really strong economic data. We mentioned Housing Starts earlier today, tatia around jobless claims, multidecade lows. Things were already improving. What about Rising Interest Rates . And the stronger dollar . Very simply, if i can get risk free 2 , 3 into treasury, why would i bother with a risky stock that is yielding less . We think the outlook is better than the 2 to 3 on treasury. What i would say is coupled with our belief that fundamentals are improving is a strong sense that the fed will remain pretty cautious. And pretty measured in their pace of raising Interest Rates into 2017. So we think rates are going to stay pretty well contained here. They may go to 3 , but a 6 , 7 return on equities looks pretty good compared to the 3 . Suze, sticking around. The rig count numbers are up. Baker hughes reporting a jump of 19 oil rigs last week to a total of 471. Were still down a good bit from a year ago. However, this is the 17th of 18 weeks that we have seen a gain in rigs. This is good for jobs. About 40 people, average, on every rig that will get hired for a couple of weeks to get the drill bit into the ground. So jobs will be coming back. But this also portends, big word on a friday, likely higher oil output. Lower prices, good for consumers, but also proves, doesnt it, that all that oil can come back online a lot faster than we predicted. All this talk, oh, it is once things get shut down, tough to bring them back. American industry responded quickly. They have. Presume texas, north dakota could use the work. Donald trump, may have heard that name a few times today, vowing to make infrastructure a pillar of his presidency, one massive Construction Company already seeing the impact of the promise, it is the first of two mystery charts today. There is your chart. The name and the ceo straight ahead. Plus, mcdonalds set to go high tech and maybe low people. The big changes coming to your local mickey ds coming up. Small business saturday is our day to get out and shop small. A day to support our community and show some love for the people we love. And the places we love. The stuff we cant get anywhere else and food that tastes like home. Because the money we spend here can help keep our town growing. On Small Business saturday, lets shop small for our neighborhood, our town, our home. On november 26th, get up, all get together and shop small. I we worked with pg eof to save energy because wenie. Wanted to help the school. They would put these signs on the door to let the teacher know you didnt cut off the light. The teachers, they would call us the energy patrol. So they would be like, here they come, turn off your lights those three young ladies were teaching the whole school about energy efficiency. We actually saved 50,000. And thats just one school, two semesters, three girls. Together, were building a better california. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Welcome back. Fedex hitting an all time high. Trading at its highest level since its ipo in 1978. Since election day, shares of this company up more than 35 . Here is a hand. It is a big infrastructure play. The answer, aecom. The stock soaring on the promise that president elect trump will make infrastructure a pillar of his presidency. Joining me is the ceo. I imagine youre doing cartwheels in your industry. Your stock has. My only concern is, you probably dont want to address the stock price directly, but when i see a companys stock gain 35 in a couple of days, i wonder, on the most optimistic scenario do you think youll see that kind of a jump in business . We do. We think were at a unique moment. We have seen a benefit across the entire sector due to the socalled trump effect with the renewed excitement around infrastructure. But also coupled with great fundamentals. We announced our earnings last week. We had 6. 3 billion of new project wins in the quarter. And then followed it up with a first five weeks of this quarter, where we had another 3. 3 billion of wins. We have momentum coming into this. As well as getting ready for the funds that will come into the infrastructure marketplace. Smart people there, i met a few of them working on private Public Partnerships and dialled into d. C. Where is the money going to come from. More debt or will this be private money, a combination . Youve seen the studies by the American Society of civil engineers, we have a 3. 6 trillion gap that needs to be filled over the next five years, the only way well fill that gap is with a combination of private sector and Public Sector money. We think one of most likely sources of revenue will be coupling the infrastructure initiatives with International Tax reform. We have 2 trillion of low tax earnings outside the United States. And we believe there will be an initiative to bring that money back in some way to fund the infrastructure gap. Were also seeing ideas being bantered about to produce tax credits for infrastructure. We have the blueprint, we have the blueprint, we have the tools to do that. But we also see private sector money coming into the equation. In todays environment, where we have very low Interest Rates, almost zero Interest Rates in some parts of the world there are a whole host of private sector pools of capital that would love to invest in infrastructure initiatives and we see all of that coming together. Is your Company Ready . Are you ready for the projects that are about to be unleashed . Do you have the brains and bodies to do it . There was a while where youve been pretty much less active than you would like to be. We certainly do. We have 95,000 of the brightest people in the world working for this company across a whole host of other sectors. We already have ram pd up due to the momentum we had in the fourth quarter, and momentum we currently have, were ready for this across the globe. Certainly here in the United States. Mike, thanks for taking time out for us here. Appreciate it. Well see you soon. Good luck. Big changes on the menu for mcdonalds, the Company Planning to offer Table Service in the United States. Also going to introduce mobile pay and ordering as well as selforder kiosks in its restaurants. Cnbc caught up with the mcdonalds ceo yesterday. Example of how were changing our attitude. We asked customers to fit around our Business Model and we have been successful doing that. Now customers and consumers in general are demanding much more choice and control over their lives. We ned to adopt and evolve our Business Model to fit around their needs. For those that want Table Service, great opportunity. Each time we convert a restaurant, we see the results. The next day, business picks up. Customers come back and enjoy the experience and come back more often. What do you think of this . I think you have to shake it up. In the experienced economy, everything you do, go shopping, out to restaurants, if the experience isnt meeting some kind of new need for you, then youre not going to get return customers. I think part of this a marketing employ, will bring down costs in some ways or they wouldnt do it. Mcdonalds and burger king, these are the jobs where you go, you get them when you cant do anything else. Theyll be gone. With a i talked to somebody who owns a couple of mcdonalds, i wont mention his name, his whole thing is, i wish i could get rid of everybody, not because he doesnt like people, but because sick days, health care costs, labor costs, would like to go to all kiosks and robots. And i wonder if we see all this boom in jobs from infrastructure, are we going to see the subsequent loss of jobs in the Service Sector . Hotels now you cant even find a person because you check yourself in. You can do that at home depot, and many supermarkets. As people get used to it maybe see a movement back, and that would be great as long as those jobs are picked up in the higher paying jobs in the infrastructure buildup. Still ahead, a thousand reasons why getting Something Like this where did i put it . Hold on, were doing it right now. Something like this, a whole lot harder. Global war on big bills straight ahead. Is it a force of nature . Or a sales event . The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. bing why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. India is the latest country to declare war on big bills. Overnight, they announced that some of the notes are illegal and all you can do is bring them into the bank and hand them in for smaller bills. I bring this all up because i have gotten my hands on one of these, ive been working for a long time to get it, this is a 1,000 frank note in switzerland where they said were keeping our large bills, thank you, especially in a world of negative Interest Rates. The bigger they are, the less space it takes up. I get why theyre doing it. The only way to stop corruption is get rid of the big notes. It is how the mafia was finally put out of business in the United States. They changed the rules about how much money you can put in before it was reported, 10,000 and kru crushed them. Anybody who tried to do business in india runs up against corruption. You can sue using british law in india. So it is a little more contract maybe honored a little more. It is friday. Here is Great Cocktail Party trivia. What is the biggest current doe nam nati denomination . 100. What is the biggest 100,000 note, couple of them still exist. How do you any were going to cocktail parties . Probably going to the same cocktail party. Turns out that even pandas, how is that for a transition, can suffer from Culture Shock after spending the 100 days of their lives, they were shipped back. The two pandas are demanding american cookies and only responding to english commands, ignoring their mandarin speaking caretakers. Why would this be a surprise. Theyre like dogs. They miss their home and i hope that they assimilate soon. I held a panda. Theyre bears but still have what does a panda feel like . Theyre not at all cuddly. It is a bear. It is a gigantic bear. I wanted it off my lap as quickly as possible. But a great photograph. Theyre not like like a koala. It has giant claws and is probably going to pee on you. It is not a cute cuddly experience. Who knew . Now you know. A big week for the country and big week here on cnbc. Some of biggest Corporate Leaders sounding off on trump. Ss stay connected. The microsoft cloud offers infinite scalability. The microsoft cloud helps our customers get up and running, anywhere in the planet. Wherever theres a phone, youve got a bank, and we could never do that before. The cloud gave us a single platform to reach across our entire organization. It helps us communicate better. We use the microsoft clouds advanced analytics tools to track down cybercriminals. This cloud helps transform business. This is the microsoft cloud. So dad slayed the problemt with puffs plus lotion, instead. With lotion to soothe and softness to please. A nose in need deserves puffs, indeed. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Speed always wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Hi, everybody. Im sue herera. Here your cnbc news update. At a conference in brussels, nato secretarygeneral Jens Stoltenberg said he was certain that president elect donald trump would not withdraw from nato and is hoping to speak with him soon. Im absolutely confident that President Trump will maintain American Leadership in the alliance and will maintain a strong u. S. Commitment to european security. Thats important for europe, and also important for the United States. Police say a call about a possible bomb threat and hostage situation at Boston University this morning was a hoax. After the threat was called in from the university library, authorities secured the area as the bomb squad kept the entire building, nothing was found. Lebron james is giving 2. 5 million to the Smithsonian Museum of africanamerican history and culture to support the muhammad ali exhibit. The exhibit opened in september. Saying every pro athlete owes a debt of gratitude to ali. Thats the news update this hour. Back to you, brian. You missed our panda story. I saw it. I was going to accuse you of stealing the pouting pandas. But thats our okay. Youre the panda in chief. Some of the biggest names in business sounding off on president elect donald trump throughout the week here on cnbc. Heres what he had this to say. This is a guy that is a competitor. He wants to win and i always found him, you know, in one on one sessions to be a listener and a guy that wanted to do good work. If you listen to the things he said since elected, hes ensuring that the decisions that he makes are aligned with driving growth in the u. S. I think that will apply across all the things that we care about including immigration, patent reform, tax reform. My comments a year ago i thought donald trump is a very significant force. I thought that people would spend too much time focusing on some things he said, i suppose to the things hes done. Everything for donald, for those of us that know him, will be about his cabinet. He will go to experts and instincts will help drive thihi thoughts. People want something real. They want to see things being made, they want to see policies being changed. They want something real, no more of this man behind the curtain stuff. Is the Business World really ready to back the president elect or is this just a honeymoon to get on his good side . Lets bring in steve oddlin, bill george, Harvard Business School Professor and susie welch. Ill start with you, bill. You want to say positive things about any incoming commander in chief. You dont want to be on their bad side, bad side to keep it clean. Do you think the Business Community is this far backing donald trump, merely because he has a business background . Well, i think everyone is getting on board with the trump bandwagon right now. But if you hear from people like jeff immelt and mark fields, these guys are winning big global companies. Theyll operate all over the globe. They would like to add more growth in the u. S. But also optimize the manufacturing plan for the global world. They have no choice. To be in china, they have to manufacture in china. Theyre going to do some things to stay out of trumps cross hairs, throwing a bone and not taking the one lincoln suv to mexico, which makes sense to stay in kentucky. I think you will see ceos continuing to work with him, in any way they can, to get growth going in the u. S. , but the big question here is jobs, brian. We dont have the Skilled Workforce to do today and tomorrows jobs. There is 5. 4 million unfilled jobs. That number could go to 10 million and we got to get going on job training, thats the number one thing to upgrade. Im not sure we want to compete with 2 an hour jobs. I think that ill take you through one of the first things you said, throwing a bone to him now, i actually in my experience found a lot of ceos were cautiously supporting donald trump dure, the primaries and the general election, just didnt come out and say it. They were afraid to. Just a lightning rod issue and just kept their powder dry. Now that hes elected, they feel the ability to come forward and say, hey, the guy can work with him, i think i know how he thinks and good relationships with him before hand. This is a little like the voters we didnt know existed before the general election. I think the same is true with the ceos. I agree with that. Ceos are pragmatists and will find a way to do the right thing for their global business. And, yeah, i dont think theyre going to fight him. Theyre going to get on board. I dont think that means theyll pack pull pack from producing. We got to upgrade to jobs that are valued at 25 an hour, not go down market. I tell you, im worried about the service jobs. Im very critical of the last seven years, poeth tboth the co and president focused on gross employment. Pay better. Steve, what do you think about the response we have seen from ceos thus far . I think bill is right. We see ceos get very excited about fixing the health care system, the Corporate Tax system, and rolling back some of the regulatory schemes. Some are more interested in infrastructure, others immigrati immigration. You got Financial Service and bank ceos who almost universally were for clinton and both election, their stocks have risen the most. It is because of the hope that the provisions of dodd frank will be rolled back. Then there is general corporate ceos. More mixed. I think here the Corporate Tax reform and the potential repatriation is where the hopes are. And then Small Business leaders and they are almost universally happy now with the potential of fitching the regulatory schemes and health care. Everybody will work with them. In addition to what youre saying, i think the Small Business ceos, what hair hoping for now is he leads the way they lead, that he doesnt fall into the washington trap of running like the like a politician, but runs like a Small Business man or a big business man. He cuts through and gets things done. Thats what theyre looking for. I love the optimism. I worry, bill and steve and suze, youve all experienced d. C. , we have 535 other people on the hill, even republicans have their own agendas. Do you think this will be that easy. Every president since nixon, republican, democrat, whatever, said well end our addiction to oil and stop opec imports and were importing more than ever. Do you think these things are going to get done . Can he strike a deal with Mitch Mcconnell and paul ryan . For example, you know, we think infrastructure is obvious. Must do the infrastructure. Trump is right. Theyre pulling back, not high on the agenda. We must get Corporate Taxes fixed and some kind of repatriation holiday. I favor a territorial tax. If we cant get all the way there, cut the tax rates not 15, but low 20s and have a 12 month repatriation holiday if you reinvest in job training, r d, manufacturing, not just in financial assets. I think those things must happen and i think trump will largely get those things done. We know paul ryan has a bluepri blueprint, ready to go. We dont know that that agenda mushes up necessarily with Donald Trumps agenda. How do you think it plays out. Will they go along with him or ryan or what . I dont think theyll just go along. Trump is unlike anybody else who sat in that seat. Not a traditional ceo. Hasnt grown up in a large company, hasnt gone through sensitivity training courses. He comes at it with smash mouth and the way commercial Real Estate Developers come at it, extravagant, it is just unreal. The behavior since the election has been terrific. I think if you look at all this behavior as a develop, he always made the deal. So i think that hes demonstrated that hes willing to compromise, and he wants the deal done. Hes got his priorities, but i think hes going to turn to congress and have them bring forward the specifics. And that may be the best of all worlds. Youre not in your i think youre right about making deals. Thats the way he managed. Not your classic ceo, he ran a Real Estate Development company, he makes deals. Lets hope he can make the deals in washington. Thanks, bill. Thanks. Thanks, steve. Democrats facing a big challenge. How do you govern in a trump world . Will they jump on the trump bandwagon . Will they fight him on everything . Well ask a democratic congressman bob sherman next. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive we kind of calmed down now. Your money, down a little bit if youre a dow investor. Some stocks up, some stocks are down. The dow is down 19 points. The dow is now up more than 8 this year, even more amazing. If you think back to january, anybody remember january . A terrible month. So the fact that were up 8 now pretty cool. Ross stores, staples, sales force. Com. Democrats doing some soul searching after losing the white house and suffering a bruising defeat in congress. Now there is a challenge to Nancy Pelosis House Democratic leadership. As you know, yesterday i formally wr lly wrote to my col to ask for the continued honor of serving as House Democratic leader, to be a truong voice for hard working families and hold the values we cherish as americans. There is going to be a lot of people evaluating me, what im talking about, what i stand for, what direction i would like to take the caucus and the country, the Democratic Party in. And theyll give it a good look. Good to have you here. Before we get to the discussion about who will lead your group, what do you do here generally . A lot of republicans criticisms for donald trump, they didnt think he was that conservative. They thought some of his ideas were fairly democratic. Are there things you can get on board with or straight opposition . Donald trump campaigned as a populist increasingly i fear hell govern as if hes mitt romney. We want to impose taxes on those who ship jobs overseas. Some in his group are talking about a zero tax holiday on the profits earned overseas. We see bannon, thats certainly not a good sign for those who want to bring the country together. There is infrastructure, and trumps statements in favor of protecting Social Security and medicare benefits, and, of course, his trade policy. Were running the largest trade deficit every year, year after year, that any country has ever run in the history of the world. And i think we may get a new trade policy from donald trump, hopefully we get more than just a no on tpp. We probably would have achieved that no matter who had been elected president. Who do you support when it comes to your leadership . Nancy pelosi or tim ryan. Tim ryan is the new face. You got shellacked. Is it time for new leadership . We gained some seats in the house, they gained some seats in the senate. It was in the hands of barack obama and Hillary Clinton and that didnt work out well. But we won the popular vote, and i think that it is not so people arent voting for faces. Theyre voting for policy. Were showing our viewers now that the losses that you suffered under president obama since during his ten year. 63 seats in congress. 10 in the senate. 12 governorships. And then pretty dire as well. Respond to those. You dont think that has anything to do with the leadership . I dont know about electing governors, thats not my focus. In the house, this is the leadership that led us to the huge victories of 2006 and 2008 and the good showing in 2012. It is very difficult, however, for house leadership to create an image for the Democratic Party. Go back at your own broadcast. How many minutes was nancy pelosi on versus donald trump and Hillary Clinton. People went to vote, the images they had were donald and hillary. 2008 was the long time ago, that was then. This is now. There seems to be a huge divide here. Youve got people who are older, like bernie sanders, far to the left. You have younger people like tim ryan, little more centrist, which path should you take . What is the lesson from this election . The lesson is to reach out and offer them not just an opposing tpp and i dont think my party articulated that very well. There were so many in our party including the president who was in favor of our existing trade policy and doubling down on it, that that message got lost. Look at the states that Hillary Clinton lost. The exact states you lose if you allow the republicans to look like theyre for a new trade policy and allow the democrats led by the president to make it sound like were for doubling down on the old trade policy. Not that we lost nationwide, we won the popular vote. We lost the states on that concerned about trade, most especially, and those are states were going to get back to by proposing a new trade policy. Native california, native of los angeles myself, you represent the san fernando valley. Oil and gas plenty in california. Youve been fighting for years. Should you drill for it, should you not. If we see a greater opening for oil and gas, along with renewables, as a californian, would you support that . Places in california you should drill, places in california that you should not. Such as where in. Off the Santa Barbara coast. I think california produces significant oil, well continue to do so. And there are many other places in this country where we will produce hydro carbons as we transition where there are more jobs per kilowatt than there are in coal. Sir, thanks so much for joining us. We appreciate it. Thank you. Any thoughts . Sounds like he the democrats lost because of trade. And i guess you reduce it to one issue. But i think it was probably bigger than that, they got to face into the fact that it was bigger than that and to say you lost it, you can keep on saying we won the popular vote, to use it as soundly as they did in the states that they lost it in and say we dont need a change in leadership is seems to me very especially when the consequences were so dramatic, right . All houses of government controlled. And then Supreme Court will be affe affected. Stay with the same leadership. Wouldnt happen in business. I have one hope, eventually, were part of the problem in the media, we start saying the democrats, the republicans, i rant about this on morning joe, the california democrat is very different than the wisconsin democrat. And the and gop were trying to monolith everybody into the chunks. This group and that group. The californian is so much different than the wisconsinite, whatever it is. Interesting to see how they all on deck, opportunity just for you, the big wall street calls that you need to hear about today, street talk it is called and it is next. H allergy . Eees. Bees . Eese. Trees . Eese. Xerox helps hospitals use Electronic Health records so doctors provide more personalized care. Cheese . Cheese xerox healthcare services. Soon to be conduent. Thats it. How was your commute . Good. Yours . Good. Xerox real time analytics make transit systems run more smoothly. And morning chitchat. Less interesting. Xerox transportation services. Soon to be conduent. Welcome back. First solar, among the worst performers in the market today, being pushed by ubs. Sell from a prior neutral. They cite the cash burn rates and declining Profit Margins that could continue to 2018. Still after that, brian, Earnings Report in forecast for earnings, interesting to see first solar shares resuming to the downside. Drama there. Dominic chu, thank you. Time for street talk. First, tough morning for gap stores. Retailer reported earnings that matched analyst estimates but sales fell for the seventh straight quarter. Rbc capital reiterating their hold rating and lowering q 4 estimates. Stock getting pummeled, off by 16 . You wonder if any of these types of stores will fold all and go to brands without physical locations. U. P. S. , that stock low too. 125 target, called the company the gold and brown standard with a premire franchise. The Analyst Thinks u. P. S. Is well positioned, that target of 125 imemplplies 14 upside. People will ship more stuff. Marvel technologies, susquehanna financial upgrades from neutral to positive. They boost the target price from 17 to 13 the. It is 14. 71 right now. Analysts he is new details emer emerged. It is a big deal call, theyre a reasonably sized acquirer of goods. This comes off better than expected earnings in gross margin. Target implies 15 upside after the big move. I wonder if anybody bought the stock thinking it was the comic book and movie company. I bet. It is owned by disney. Your last stock, the smaller cap stock of the day, new relic. A name we talked about before. They do things like monitor application performance, guggenheim with a buy and 50 target. They note new rela takes away. The average target, 42. 70. That helped with the name today. Stock is down 2 . Still ahead, i love this, a championship weekend for nascar and just, you know, who of the biggest owner in sports stop by, penske and hendrick live on power lunch. Youre welcome. First, Donald Trumps pick for national securitiedy ed adviser causing controversy. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. How else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Now lease the 2017 gle350 for 579 a month at your local mercedesbenz dealer. Friday. Welcome to the second hour of power lunch. Im Michelle Carusocabrera with brian sullivan. Two hours to go until the closing bell. Those early gains are gone. We did hit some key milestones. Nasdaq record intraday high. Russell up for an 11th straight session, aiming for the longest win streak in 13 years. You can say with all this music were a cure for the normal business thats funny. Look at this charming man. Chip stocks up 2 this hour. Now up 30 this week. Hibbitt sports down. And yum brands up, 2. 5 . Buying back 2 billion more worth of its own stock. President elect trumps team now taking shape, making key picks for defense and security. John harwood with another look. We have two hardliners suggested today to fill out key parts of president elect trumps National Security team. Mike pompeo, the Tea Party Congressman from kansas. And youve got also retired Lieutenant General mike flynn as National Security adviser, both of them are proponents of very aggressive, provocative, last two president s would say counterproductive approaches to dealing with islamic terrorists and how you call them out, how you confront them. There are other parts of the team that were still waiting to hear. Secretary of state, rudy giuliani, remains the frontrunner for that post. But president elect trump will be meeting with mitt romney, who is sharply criticized him during the campaign. Mitt romney remains an outside shot for secretary of state. And then the pentagon, another choice, mainstream candidates that wouldnt be so hard lined, available to president elect trump. Steve hadley, former george w. Bush advise, kelly ayotte, who just defeated in the recent election. And you had meetings today at trump tower with the president elect tom cotton, young senator from arkansas, hes seen as a rising star in the conservative movement and the Republican Party. But butt h but has taken a much different line. He said as soon as donald trump starts getting the briefings we get on capitol hill, i expect him to change his tune on vladimir putin. Well see whiether that occurs. Thank you very much for that rundown, john. President elect trump takes the oath of office on january 20th. On january 21st, crisis and conflicts from around the globe will land on his desk. Lets bring in former nato supreme allied commander james stavetes. I want to ask you about some names were hearing about. Michael flynn, worked for you in afghanistan. What do you think . Is he the right guy for the job . Well, on the positive side, hes very smart. Hes very fast. Hes quick on his feet. He can communicate in very direct ways. On the other hand, he is a very hard line actor when it comes to reacting to a slump. I think he will play to the darker angels of this administration in terms of adopting very, very aggressive stance, very hard power, very antiislam. It sounds like you think thats a bad thing in. I think that over the long throw thats counterproductive. We have got to find way to make connections with the islamic world and were not going to be able to kill our way to victory here. You need hard power to deal with the islamic state, but the long game is that mix of hard and smart power that allows you to make connections. What do you think of Jeff Sessions . I think Jeff Sessions, i know very well, from his time in the senate, on the Armed Services committee, i had meetings with him, testified in front of that committee multiple times. I think hes probably better placed outside of the National Security realm, background would suggest attorney general. Hes highly conservative and i suppose that will fit with the view from trump tower. What do you make of the picks thus far . I think it is pretty much playing to form, based on what we heard in the campaign. Steve bannon, qcoequal with th chief of staff, hard to see how that will work. Mike flynn hardline into the National Security agency, National Security Council Staff as the adviser and senator sessions. The two to watch are the two coming up, state and defense. And what characteristics do you think those people need and when you hear mitt romneys name thrown around, and also rudy giuliani, what do you think . I think what they need is some level of International Experience here, im talking about state. They need a role dex, connections around the world would be helpful and a vision for the country. As far as i can see of the two, looking for somebody like mitt romney would be a move toward a more centrist Foreign Policy that i think would be helpful for the Trump Administration in terms of reassuring global allies, partners and friends. Were you surprised as a lot of people when his name came up considering what a big critic he was of donald trump throughout the campaign . I was absolutely floored. Whether it is simply a trial balloon to make us feel a little better about how events are trending or real pick, well know more. Whether we look at the sec def pick. Secretary of defense, you mean. Yeah, exactly. Very moderate centrist, that would be a positive signal dwloe globally and to the military. I heard john talent mentioned as well. Those would be two moderate picks that would again send some reassuring signals out there. Admiral, thank you for joining us. Always a pleasure. Thanks, michelle. Trump presidency also energizing the Republican Party which now controls the white house and both chambers of congress. In a tweet yesterday, Cathy Mcmorris rogers said there is a lot of excitement in our conference and im proud to be part of it. What are the big issues on the agenda . Good to have you here. Great to be with you. We had representative brad sherman on earlier. Wasnt to get your reaction to this. I asked him what the democrats should do and how theyre looking toward their leadership considering they got shellacked. He didnt think they got shellacked . Well, you know, it is very exciting for me to be a part of a unified republican government here between congress and the white house. I believe this is a tremendous opportunity we have been given. It is time to think big and put people at the center of it. That needs to be our focus, putting people at the center. Im encouraged with the conversations that are taking place right now. We certainly have a lot of work to do. But we want to get to work to improving peoples lives and improving opportunities for everyone in this country. What is your path forward . Do you do things through reconciliation, which doesnt require some democrats to go along with you guys or do you try to forge a path that is the opposite of what president obama did with health care reform, try to bring democrats along and get something through in a more bipartisan manner . Im always someone looking for those opportunities to work across the aisle where we can. Im excited we laid a Strong Foundation for specific policy proposals through our better way agenda where we have presented an option on a tax code, the future of health okay rethinking the poverty programs and the constitutional balance of power which i think are going to be all priorities as we move forward. And the work we have done in the house is a Strong Foundation for those conversations that were now having with president elect trump and Vice President elect pence. I know you are eastern washington, however there say Small Company that makes aircraft on the other side of your state named boeing. And perhaps no company may be at risk of a trade war with china as boeing. They sell a lot of planes into china and the rest of asia. How hard line are you and some other washington constituents willing to be with china who buys a lot planes. It is important we get good, fair trade deals. And that i believe is what thats where were going to focus. Coming from washington state, were one of the most trade dependent states in the country. 95 of the consumers are outside of this country. Making sure we have good, fair trade deals is always a priority and will continue to be. And thats where were going to focus so that boeing, yes, can build more planes here in america, manufacturer and export our farmers can grow it here and export. Microsoft, another big name in washington state, you know, they want to export their software, we want all that, manufacturing, production, in america, and then to be able to sell it around the world. And what about the issue of Infrastructure Spending or spending in general . Republicans have long criticized the Democratic Administration for spending a lot of money. Donald trump is coming along and you can argue to the degree to which the deficit might go up, but he wants to cut taxes, increase Infrastructure Spending, yes, it could be very good for growth, but at what point do you draw the line on spending, which youre famous for doing . True. But we must grow the economy. And the Republican Party has always been a progrowth party because thats how we grow jobs, grow opportunities for people all across this country. Thats going to be a focus. Were in those conversations right now. Over on infrastructure package, which i think there are serious needs in this country for infrastructure. We are also going to make it a priority to make this the tough spending decisions, and thats where we need to be doing our jobs to rethink, review, eliminate. Does that mean are you comfortable with the deficit going higher . I want to see that deficit come down. And i believe it is accomplished as we rethink this whole federal government, reimagine, get more programs down at the state level. And do our jobs to provide that accountability that is so desperately needed and to really bring these rethink these programs to fit 2016. All right. Thank you for joining us. Coall it the pro america trade, the russell 2000 index, small cap stocks based here that could close higher today for the 11th straight session. Were going to give you some amazing stats around the last time that happened. Wonder how far this could go. Plus, donald trump and your taxes. What can you expect . What should you do about it now to prepare. A lot of questions, we have answers. Power lunch will be right back. Youre looking at a live shot of trump tower in midtown manhattan. President elect donald trump is headed to new jersey shortly. So we are expecting the president elect to depart the building. When, if he does, well bring it to you. Well be watching for that. Lets look at the bond market at this hour. Yields rising across the board again today. The ten year 2. 3 , the 30 year above 3 . The two year above 1 , 2 , 3 . Mortgage rates are moving higher as well, up to 4. 125 . That is your bond report for today. A lot of chatter about the socalled great rotation from the bonds to the stock market that we talk about all the time. Perhaps nothing exemplifies this more than the smaller cap russell 2000. The rousle 2000 is now on track to post its longest winning streak since the spring of 2003. More than 50 names in the small cap 600 index up more than 25 just this month. It is nice but is it sustainable . Lets bring in ron insana and lori. We all have 401 k and a host of other numbers, we want the numbers to go up. When i look in the guts of the rally, lower quality stocks, is this rally real and sustainable . Well, look, a lot of these smaller Cap Companies are benefitting from some policies laid out during the acceptance speech. This idea of deregulation, fiscal stimulus, Infrastructure Spending, all of those things created the benefits of the banking sector, materials, industrials. So theyre really part of what is driving that higher. Ron, what is your take here . And also on this great rotation . I want to say great migration, like thousands of gophers walking across the i think that refers to wildebeests, but having said that thank you. Anytime. If you watch the National Geographic channel. Is this mutual of omaha . Mr. Perkens fan growing up a bit. Yes there is a move from bonds to stocks and it make a ton of sense when you think about what was just outlined as lori suggested. The trump policies as we know them will be stimulative in a economy beginning to accelerate. You have that. And if it does accelerate and Inflation Expectations move up bond yields are forced to climb. Everybody ran from one side of the boat to the other. Is this it . If anybody was good enough to determine whether or not we already priced in what could be as much as a 3 trillion tax cut, which could be a roll back of dodd frank, a roll back of the aca, which could include some protectionist measures. We get it, we get it. Not if these things go through. Does that mean i can still buy banks, i should still sell off munis. What . Yeah, so, look, we have a long way it go yet. These are sectors or areas of the market that have been unloved for a really long time. If you look at banks, the move gets us back to where we were a couple of years ago. As ron mentions, you have other backdrop, we had improving economic outlook, we had earnings recession turning into potentially earnings expansion, you still have a very low Interest Rate environment even though were up against the 230, 240 handle on the tenyear, still a long way from a long term kind of Interest Rate of 5 or anything like that. So we actually think that we could still see some more follow through into the end of the year, typically see november and december are good years for the months for the market and typically see that an election years that is also a very strong period for the markets, so we think there could still be follow through. But as ron also notes, the policy imperatives will dictate what the longer term trajectory is. The important part is the sequencing in which the Trump Administration moves forward. If he starts with a trade war, if on january 21st china is named the currency manipulator. That would be bad. Talking about renegotiating or pulling out of nafta, the wto, then you have to unwind and step back and say if he doesnt sequence the tax cut, the market could take a hit. You have to worry about the speed with which rates are going up. Too far, too fast, that could bring in a correction. Ron, very quickly, how much of this bond sell do you think is china . Been selling bonds steadily for quite some time. 10 , 100 . I would have to do the specific do the numbers. Take a guess. 10 to 15 . I wouldnt own bonds for a while. Thanks, lori. Thanks, ron. And jim was the assistant. All right. All retail version of the good, the bad and the ugly. Here you go. It is good to be a discounter. It is bad to sell the teenagers. Were going to tell you why we say that. This is huge. Roner penske and Rick Hendrick going after each other as two of the four owners, two of three, the nascar championship this weekend and will join us live coming up on power lunch. The infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. The markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Come on, wake up come on, why ya sleepin . Come on what time is it . Its go time. Come on. Lets go, lets go, lets go. Woooo hoooo yeah i feel like i went to bed an hour ago. Ill make the cocoa. Get a great offer on the car of your grownup dreams at the mercedesbenz winter event. Its the look on their faces that make it all worthwhile. Thank you santa now lease the 2017 c300 for 389 a month at your local mercedesbenz dealer. Live shot of trump tower in new york city. President elect trump headed to new jersey shortly to spend the weekend on the Trump National golf club in new jersey. Saw ivanka trump leave trump tower and were told that is where he is going to meet with mitt romney over the weekend. A lot going on in that building the last few days. Thank you very much. It is time now for the good, the bad and the ugly in todays trade. All retail stocks. First, to the good. Ross stores beating estimates for earnings and sales. Faces tougher comps for the holiday season. Investors dont care. That stock is up more than 4 . To the bad, abercrombie and fitch, that stock down 14 . They missed estimates on sales and earnings. Weaker traffic among other challenges. And theyre not far off the ugly. The ugly today is the gap, same reasons as abercrombie and fitch, concerns about sales new, concerns about sales in the future, concerns about earnings, gap shares down 16. 4 . It is time for our second mystery chart of the day. This Company Shares have nearly doubled so far this year. We will talk to the ceo and well get one piece of tax advice for you that youre going to need to hear to get ready for the Trump Administration. Power lunch will be right back. 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. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats 10 times faster than slow internet from the phone company. Say hello to internet speeds up to 150 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Here is your cnbc news update. Attorney general Loretta Lynch commenting on the report on hate crimes committed in 2015. That report showed a 67 increase in violence against muslim americans. She said the Justice Department will continue to enforce hate crimes laws. This work is the right and just thing to do. I want the American People to know that as long as that work is necessary, the department of justice will continue to carry it forward. Several dozen Palestinian Protesters clashed with Israeli Security forces after fridays prayers at the west bank. They reject plans by israeli authorities to legalize settlements built on palestinian land. Buckingham palace is in need of a facelift. Officials say it needs urgent infrastructure work to the tune of 460 million over the next ten years. If the work goes as planned, it wouldnt need another renovation until 2067, when Prince William would be 85. Thats the news update this hour. Michelle, back to you. Thank you very much, sue. Once again, look at trump tower, ivanka trump leaving trump tower moments ago. There you see her. Yes. This is tape, right . Just now. Ivanka trump, we dont know if she is headed to new jersey, we do know that her father, were still waiting for president elect trump to be headed to new jersey shortly as well to spend the weekend at his golf club where hes going to meet with potential contender for secretary of state mitt romney. The parade of potential cabinet picks is continuing through the day here at trump tower in manhattan. Causing chaos. Robert frank is live outside of trump tower. The mayor and the new York Police Department starting a press conference right now as we speak to announce a plan to deal with the needs of the president elect and all the people that hes visiting with the traffic, the companies, the visitors and the residents here in midtown manhattan. Now, mayor de blasio and mr. Trump met earlier this week, but did not talk about the issue most important, the traffic and the crowds. Trump tower is where mr. Trump is holding all his meetings. In one of the busiest intersections in the country. Got all the major luxury retailers, tiffany, louis vuitton, prada, gucci. All of this traffic and crowds started to impact their business. Analysts recently trimming their estimates for tiffanys, which until recently had one entrance closed, but still surrounded by barricades. The analyst saying there is no way to sugar coat this, the big worry is what will happen over the next few months. Now, the head of the Business District here in midtown saying traffic and Retail Stores has dropped dramatically. In terms of what the mayor and Police Department could do here, theyre working very closely with the secret service, which has a different set of interests. They could possibly close one lane of fifth avenue, that will hurt the bus traffic and the emergency traffic that comes down fifth avenue. Also talking about possibly bomb proofing the first few floors of trump tower, which are all glass, that might help a little bit. But there is really no easy solution and mayor de blasio saying i cant tell you that gucci and prada are my most important concerns, so not a lot of sympathy by the mayor, but well see in the next probably ten minutes what theyre going to announce and whether this could get any better. Cant see them, but the crowds here are just crazy. You cant get into these stores. Has to be tough for them. Thank you. President elect trump wants to grow the economy by dramatically lowering taxes. Current individual rate is divided into seven brackets. The tax brackets would be whittled down to three at rates of 12 , 25 , and 33 . Lets get more details on the trump plan and how you can compare for the overhaul, from washington, eric todd we are erc greenburg. Is it good to assume that most americans or should they assume that they have got a tax cut coming and should corporations assume the same thing . I think there is a very good chance that businesses and individuals could see lower taxes by the end of 2017. It is not a great assumption that trump will be able to enact all of his tax plan through congress. In fact, thats very unlikely because it is a very expensive tax plan. It would cost up to 6 trillion using the most pessimistic assumptions. Thats going to be negotiated. Thats going to be bargained down. I think thats likely that when all is said and done, were going to be looking at a tax bill from this congress that does lower taxes for individuals and businesses. Eric, you disagree with that . Disagreement around the edges between a Republican Controlled Congress and donald trump, but ultimately lower taxes . Definitely lower taxes. Trump plan is really a fairly straightforward cut in individual and business taxes and very large cut as scott mentioned. The house and senate plans are smaller. We havent seen the senate plan yet. But they are both thinking about very fundamental reforms to the tax system. What they all are in common is a desire to cut the Corporate Tax rate, lower the top individual rate. So i think something is going to happen on those grounds. At the same time, are they going to limit deductions, eliminate credit, all those loopholes we have been talking about for so long, eric . I would be surprised if they limited very many of them. Really . Yeah. What about you, scott . You think thats going to happen . Im a little more optimistic. The trump tax plan and some plans we have been seeing on the hill has broad itemized deduction and some corporate and business tax credits. And i think that there are some particular deductions like the state and local deduction that could really be significantly eliminated limited or eliminated by the end of the year. Do you give tax advice . What would you do right now if youre an upper income individual . Would you change what youre doing because you expect lower ttaches next year . If i were an upper income individual, i would hold off on realizing my Capital Gains until i see what type of tax bill comes out of congress. There is a pretty good shot that congress will lower tax rates on Capital Gains in which case it would be more beneficial to realize after. In addition, if i were a business, i would start making plans to ramp up my capital investment, both trump and lawmakers signaled they would like to use the tax code to reward and encourage physical capital investment. Eric, any tax advice . Not really. I think i agree with scott but also there is a good chance that anything that is enacted, any tax benefits, like for investment, will be retroactive to the beginning of the year. So i dont think there is necessarily a call to delay investments. Is it possible some people might see higher taxes . If i see the bottom right now, 10 , couldnt it go to 12 for some people or will that depend on where the income limits are . Under the trump plan, in individuals will have higher taxes because hes proposing to eliminate the head of household status and cut back on personal exemptions. By our estimates, all income groups taxes will fall. But many individuals will see taxes rise. When it gets through the legislative process, i suspect those provisions will go away. Well are to see. Eric and scott, thanks so much. Thank you. Whether it is the plastic on your phone, parts the interior of your car or Artificial Grass on a football field, materials can tell a huge story about the underlying strength of the economy. If you like these kinds of companies, but they get a lot of wall street attention. Trensio, stock up 95 this year. Plastics outperforming high tech. Ceo chris pappas joining us now. Youre one of these companies, you dig in, and i realize man, theyre about in everything, but im not familiar with the company. Who are you . What do you make . What are your primary products . In a laymans term. Were in the plastics, chemical, rubber industry. We make products for smartphone, laptops, packaging, appliances, construction materials. Were in all kinds of updated activities and that makes us those are relatively slow growth industries. They are. Were resilient. We have a broad base of differentiated applications, we have a product line that is really driven by supply and demand dynamics. 50 of the earnings is driven by that. Shows supply and demand dynamics are going in our favor and the margins. Your stock nearly doubled in 12 months, in a relatively slow growth industry. Is the economy so strong that it justified that kind of move . Were making that kind of move, we went public at 19 a share, almost triple today. And were doing that in the economic environment of the last 30 months. If the economy were to get stronger, we would do even better. So the rb reason we wanted you on, Companies Like yours tell the story of the economy in almost every sector better than most. Youre in everything. So how does trensio see the economy. Pretty good, pretty constructive. Pretty good . Good enough to provide the kind of lift we had in our earnings. If the economy grows further, our earnings will grow further. Were trading at less than eight times earnings. Were traiting at 5. 4 times ebitda. The lowest valued Chemical Company in the universe today. Why do you think that is . Were getting a fair amount of respect. Were not complaining. Were working hard to get the message out and get people to understand we got a long way to go with the stock. Might have heard about the election we had last week. Yeah. A lot of ceos now making comments about the election. Mike burk, ceo of a huge Building Company on earlier. Very optimistic. Would you benefit from any additional Infrastructure Spending . Are those the segments you would be in. Were in construction. We would benefit to some degree from that. Were in, you know, consumer and other oriented spending, again, laptops, tires, things of that nature. Were just generally constructive on the economy. Were about 60 in europe, which has been stronger than people think. The headline economics in europe are not what is going on the ground. It is stronger than people. Because of that, you might have read my mind, because more than half sales are in europe, the dollar might be headed to parody. The stronger dollar will crush u. S. Companies that sell to europe. Will it crush u. S. Companies in. Our earnings are doing what theyre doing while the euro went from about 135 to 110. How . We have sustainable competitive advantages and the kinds of products, we have differentiated technologies, we have been able to raise price, raise margin and lower costs. We have been able to fight through that. Good to hear. All we hear is europe is toast and youre doing not at all. Chris, great stuff. Thank you very much. By the way, the nasdaq composite also hitting a record nominal high today. Amazon in the index. A boost. Amazon distill down 7 over the past month. Here is the question. Is amazon stock a buy heading into the Holiday Shopping season. Well ask the we already got the Christmas Music going, guys . Really . Winter is coming. It is already here in colorado. Coming up, well show you somebody very excited about the first big snow of youll be sick of Christmas Music in three weeks, i promise. Were back after this. [pony neighing] what . Hey gary. Oh. Whats with the dogsized horse . Im crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. The medicare enrollment deadline is just a few weeks away. Changes to medicare plans could impact your healthcare costs. Are you getting all the benefits available to you . New plans are now available that could increase your benefits and lower how much you pay out of pocket. To update your coverage or enroll for the first time call healthmarkets. Well help you make sure you have the right medicare plan. Hi, im doctor martin gizzi. Its a new medicare year. That means more changes. And more confusion. Heres what i tell my patients. Start by asking. What kind of care is best for your Current Situation . Have there been changes in your health or medications . The key question is what can you do now, to ensure you get the care you need in the coming year . To find the coverage you need, call healthmarkets today. New medicare plans in your area may offer better coverage and lower costs. Healthmarkets has access to thousands of Medicare Options from leading Insurance Companies nationwide. Plans that may. Cost less. Cover more. With more choices. Like dental and vision care. And the freedom to choose your own doctors. All at a price you can afford. We help find the right plan for you. And we do it at no cost. There were so many benefits i wasnt taking advantage of. Healthmarkets can find me the right plan. And their service doesnt cost a cent. When i try shopping on my own, i get nowhere fast. Healthmarkets takes away the confusion. Too often i see my patients paying more than they need to because they dont know what theyre entitled to. Make sure you have what you need to get the care thats right for you. You have only a few weeks left. If you miss the deadline, you may have to wait another year before enrolling. Call a licensed healthmarkets agent now. Call now. Call this number by the deadline. And let healthmarkets find the right medicare plan for you without cost or obligation. Call now. Okay, here is the video we showed you of ivanka trump leaving trump tower. You know who is departing with her at the same time . Well show you that again. And zoom in. News corp. s rupert murdoch. Still waiting for president elect trump, heading to new jersey shortly. A camera trained there. Ready for him when he walks out the door. Many of us are dreading the first snowfall of the winter. But look at your screen now, this is so great. One dog in colorado is very excited. His name is loki, an australian cattle dog and seems to be trying to catch every single flake in his mouth before they hit the ground. So cute. You dont like this, brian . I love it. Im wishing i was there because Copper Mountain opened today and im a big skier. Cattle dog, hes never seen snow before. Amazon is gearing up for the global rollout of a streaming video service. How significant if at all does this mean for the stock . Lets ask the trading nation team. Today, anthony declemente, and david seeburg. Anthony, it is nice, grand tour, the new bbcs top gear base and amazon rollout last night. Does this matter to amazon stock at all . I think that it is an evidence that amazon is seeing traction in the media strategy. And top gear is a phenomenal show, in terms of viewership, particularly in the uk. Very global following. Like a lot of things amazon is doing in media now, this is a very expensive proposition. They have the global right to this show, and as a result, theyre potentially according to reports, theyre using this as a sort of foot hold to basically launch globally 200 countries, Amazon Prime Video only in several or handful. So people who own amazon own it for the longterm, they own it because of two massive markets, ecommerce and cloud with aws. And, you know, i think it is a good time near term seasonally to own it. Amazon does outperform in the fourth quarter. When you ask about the media rollout, it is going to be expensive. People who own the stock need to be patient this could in the near term impact margins the way margins were hurt in the third quarter. But for people who know jeff bezos, not a guy that likes to show high operating margins and believe in his ability to invest in a high return, invest of capital. To that extent, i think the stock is still fine, despite the dramatic investment in media and video. So, david, you heard anthonys view there, maybe it is a little bit of a negative . Content is expensive. Does it concern you . It is absolutely expensive. They address this in their earnings call. I look at it and say this is another page out of the netflix playbook if you will. Amazon is addressing it. Going head to head with against netflix and these countries and try to gain market share. I think it is incredible. I think that longterm theyre going to benefit from this. Plenty of room for multiple players in that. Not a zero sum game. You look at the competition that, you know, netflix had with hbo, theyre going to go head to head over there. Youre going to have plenty of food at the table for both of them and make a lot of money off this. I say longterm strategy, i love it. I think that amazon is an amazing stock. And, brian, we talked about this on fast money on monday night, when this stock was beaten up, based on the fact, rotation out of the names, we talked about buying weakness that was close to 715. Right around that period of time. This stock is a buy, Great Company to own, second or third inning. I see a lot of longterm gains in this name. Good call monday. What have you done for us lately. On the show tonight. Melissa is not here. Youre stuck with me. Ready to kill it. Anthony, a pleasure. Thank you very much. For more trading nation, head to our website, trace tradingnation. Cnbc. Com. With all due respect to the rest of the show this is what ive been waiting for. Two the most powerful men in nascar and sports, hendrick and penske live on power lunch. Now the latest from tradingnation. Cnbc. Com and a word from our sponsor. When markets get volatile, consider using limiters. They allow you to specify the maximum price youre willing to pay when buying a stock. Additionally, they let you set the minimum price youre willing to accept when selling a stock. But they can help you avoid unpleasant surprised. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. It is championship weekend for nascar. Joining us two of the biggest names in the sport. Roger penske and Rick Hendrick. Joey logano will run against the hated carl edwards and kyle busch. Kidding about that last part, gentlemen. Thank you for coming on the program. I know your superbusy. Nascar is kind of forcing you to do this so we appreciate it either way. Roger, where to start . First off, somebody who has won in every level of motorsports. Do you like this chase format . Listen, brian, its a pleasure to be on with you today and certainly sitting next to 11time cup champion. For me to be in the club with joey logano and joe gibbs and to have this opportunity. I think the format has driven a lot of intensity and certainly everyone around the countrys going to be watching this race on sunday because four guys and theres not one that i would say is the favorite. Of course, we think our own guy is, but overall weve got real talent and there is going to be great racing. Thats high praise, rick and deserved. Would you be just as effusive of roger if and when logano puts the bumper on Jimmie Johnson two laps from the end. I like it a lot if we win. But you know, i have to say i like the old system best when we had a little cushion when we came into this race, but its exciting foe ining for the fans. Its going to be a great race. I told coach his two cars were going to take each other out, then rog is going to get joey to pull over and were going to win the race. Thats the way its dwing to go down. Brian, we said a long time ago, were not driving the cars, its the drivers, well see what happens on race day. If busch and edwards take each other out, please just record something from the gibbs trailer. There would be good audio there. People who arent nascar fans dont realize what successful businessmen you are. Forget about the racing stuff. Roger, you started a bunch of billion dollar plus company, rick you have a huge enterprise of your own. Nascars struggled a bit in the last couple of years. What would be one change as a businessman that you would make to nascar . You know, i think were working on that. I think the owners along with nascar are trying to, you know, look at what the fans want and need and try to change this sport and change it up a little bit to freshen it up to give them what they want. I think this chase is a good example. I think compared to some of the other sports like maybe football, our viewership has not dipped quite as hard. So were going to work hard as businessmen and owners and entrepreneurs to work with nascar to make sure we keep our sport growing. So its an exciting time. And we spent a lot of time yesterday brainstorming what we could do to make it more exciting for the fans. Can you share some of those with us . Is it shorter races, fewer races . All the races in michigan near your house . What would you do . Let me just put it in perspective. I ran the super bowl in 2006 in detroit and we were pushing to get 70,000 seats. We have a super bowl crowd every single weekend for 36 or 37 weeks. I think the on track product has been great. I think people have been obviously challenged after the financial crisis. So sometimes the fan base looks smaller, but to me with the new charter system and the car owners getting together and theres never been more positive dialogue with the sanctioning body than with nascar today. I think were looking at the ontrack product. Were going to change some rules next year which might put the driver a little further back than the car. But to me, ive seen more interest in sponsorship here over the last 6 to 12 months. So i think we just need to look out the windshield and not look in the rear. Roger, what about the economy in the wake of the election . On wall street stocks have rallied dramatically, wond bon falling and theres a real sense that theres a change coming. Are you seeing that in any way through any of your businesses or through racing or the fans . Let me say this. From our automotive business, our stock has had a significant rise Penske Motor Group over the last ten days. The fact that some of the rules and regulations on Greenhouse Gases and some of the emissions that are required by the oems will give them a little better chance to compete. Theres no question the Business Community sees the trump win very positively. And to me, i think we have to look at what the final group of people that hell put in his staff and, you know, in his whole cabinet will make a difference. Yeah. But i think hes got to deliver. Okay. And last quick question, rick. Are we going to see Dale Earnhardt jr. Back in the 88 next year . Yes, sir. You will. Great to hear. Roger and rick, i wish both of you could win this weekend. But thats not america. So good luck to both of you in your own way. Thank you, gentlemen. Thank you. Thank you very much. Be sure to tune in nbc this sunday beginning at 2 00 p. M. This is it, one race, four drivers, those two guys plus joe gibbs, the former redskins coach, he has two cars in the championship. It will be a heck of a race. You are so excited. I really am. I know you are. Youve been talking about this all day. Roger penske is like my idol. I could tell. Check please is next. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. How else do you think he gets around so fast . Take the reins this holiday and get the mercedesbenz youve always wanted during the winter event. Now lease the 2017 gla250 for 329 a month at your local mercedesbenz dealer. Oh caroline. So corporate put you up in a roadside motel. But with directv from at t, you can download then binge watch your dvrd shows from anywhere. That makes you more powerful than whatever it is you just stepped in. Or that friendly dumpster diver outside. I wouldnt sit there. Its your tv, take it with you. Now you can watch your dvr anywhere, at no extra cost, with directv from at t. My favorite story of the day. The pandas born in the usa. They dont understand mandarin. Conflicting reports about whether they were scheduled to be returned to china or that was never going to happen. Some people have taken credit. Inside joke. The guys name is marlin per kins from mutual of omaha. Closing bell starts right now. Hi, everybody. Welcome to the closing bell on this friday. Im kelly evans at the New York Stock Exchange. And im mike santoli, i know who marlin pranen . I used to know who he is anyway. You want to share . A wieldeilderness tv guy