my stock of the week is biogen up 11% this week. year to date now up 22%. it's thanks to news presented earlier on the week in the week about the late-stage trial for experimental alzheimer's drug. thank you so much for joining us. steve -- >> have a great weekend. >> thank you for joining us, as well. safe travels for the weekend. see you monday. welcome to "the closing bell." don't look now but a dow 18,000 hat just walked by. >> all over the place here. >> i'm kelly evans. this is "the closing bell." we are at new york stock exchange and where today could be history in the making. >> yeah. that's been the expectation and pulling back right now. the dow's up 47 points. we were up, need to be up 100 almost exactly to hit 18,000. we got close. a couple of hours ago. but it has since been pulling back and we were told that

there's a thought that maybe the bias will be to the downside in the last hour here so we're keeping an eye on this. can we do it today? >> especially after that jobs report. we got to talk about that. 321,000. the shock hasn't worn off. we'll be joined by starbucks ceo with new stores and tasting rooms. schultz coming to us from seattle and this roaring stock market. his stock has seen a 300% move, quadrupling since rejoining the company seven years ago. >> let's show you the markets right now. plus signs of much of it this afternoon. after that big, big jobs number we had. the dow up 48 points right now. 52 away. s&p up 2. i think that's a record. right? >> should be. >> and the nasdaq is up 8 plus at 4778. again, the russell 2000 small

cap index, so far today it is up 7 1/2 points. i don't have my glasses. >> looks like 2074 for the s&p for those watching the game with us here. and about -- >> just under it. just under it right now. and transports up 34 points right now. talk about it all. a lot of stuff going on. rob martinstein, dick burrage, jeff reeves, lindsay pegzia and rick santelli. lindsay, any soft spots many what appear to be a gangbuster report today? >> it was an impressive report and as of late the market has been applauding relative improvement with the plus 200,000 numbers. this is the first report in months to show outright strength. now, of course, we look at the

report, a month is not a trend and talking about the tresh hold for rate us creaincreases, we n several reports in line rather than one every six to nine months and the hawks at the fed use this report to bolster the argument for near term rate increases. the doves still make their argument because even with the .4 increase in average hourly earnings, wages are stubbornly low since the end of the recession and the augmented unemployment rate is still nearly double. so it was impressive and no immediacy here in terms of monetary policy. >> rob, i was going to pick up on the point of this bringing forward the timetable maybe for the fed to raise rates. are you surprised that the market's up today when this now becomes the guessing game, how much more rapidly they may move here on interest rates? >> no. i'm not surprised. i think that the market, i'm

surprised at the number and i think people are surprised by the number. 5 out of 20 or so indicators in the number were positive and rest negative and the number is surprising. probably means we are not doing the best job of picking up this growth over time and probably means things are going a little better than we may have previously expected, so that's the case. i think the consumer is the story, obviously, you know, it's 70% of the gdp, this consumer is now looking at the best year of wage growth they have seen since 1999. uptick of disposable income and savings rate. five-year high in sentiment and five-year low in gasoline and a $66 barrel of oil dropped on the head of any inflation and the consumer's in great shape and i think that the reason, the optimism that follows with that makes sense. >> all right.

we got a little noise going on here. jeff, those arguments right there are enough to get plenty of people to say this fed should be moving now on rates and behind the curve. but you think the rate policy has been appropriate. why? >> yeah. i mean, you know, goldman came out with the report of what they expect in 2015. they don't think it's a rate hike until later in the year. i'm on board with that. you have to remember we're in financial media and do this stuff all the time and pundits saying the fed will raise rates and they've been slow and steady. i think that they're very concerned about making sure the market gets the right message and agree with the notion one outlier doesn't make a trend. good to see a great report here and revisions for november, october and september. but november's numbers are not it and i don't think yellen will act based just on this. >> if you take all of the reports we have had this year so far, the average job gain for

the year is 220,000 per month. when you add in where we are on gdp, the reports we have had lately, when you add in all the other economic indicators we keep an eye on, you take that snapshot and then lay over it what we have got in terms of where interest rates are right now, are they at an appropriate level or shouldn't they be higher than they are right now? >> i mean, i'm not going to doubt the market. maybe they should be higher. >> not the market doing it. it's the fed that's dictating where those rates are now, isn't it? >> i'm -- well, slightly the fed is dictating it but remember that the 10-year at 3 and now 2.2. there's room for wiggle in between what the fed sets policy at and the important thing to remember is the bond market saying they don't expect rates to go up significantly higher in the near term. so i'm going to take a cue from the market. until rates start to tick higher broadly across the bond market, i mean, i will trust the people out there know what they're doing if the market is

intelligent about this. >> dick, you as trustful here out market? >> well, i think -- >> not at all. >> dick we're after. go ahead, dick. >> thank you. my view is that the economy is gaining momentum. when you combine as your prior speaker pointed out, you combine a huge effectively tax cut with the drop in the price of oil and gasoline and what i believe is an acceleration in wage increases going into next year, consumer spending going up substantially more than people currently expect, gdp i think up at the high end of the range, you know, it's true that job growth for the fed to make a move or change their tune you're going to have to see it 1 or 2 additional very powerful increases in nonfarm payrolls but if you get that's it too

late. the bond market will show increases in volatility just because we're talking about this again. >> right, right. >> and then if you get that increase, that second number, it's going to be too late. we'll be in the midst of a significant correction in bonds and stocks. >> one thing to point out -- >> let me bring rick in here. he's itching to make his comment in there. we have given you a lot to think about, rick. what will you thinking right here? >> you know, we have too much of a coddling fed. play a little game here. kelly, bill, our guests, if tonight after the markets close the fed did a surprise 25 basis point rate hike, what message would people walk away with after that? be objective here. what do you think? >> positive one. >> they would say that the fed is worried the economy will overheat. that's good. anybody sitting on the fence, investors, it would create a positive dynamic. the fact that we are way too low, no matter what your view on inflation, it's not calibrated

right at zero interest rate and the message is that the fed isn't confident and they have painted themselves in to try to lead us around by the nose and many fed activities to happen after market hours unannounced and they were a surprise. i wish we could do that again. >> anyone think that -- lindsey -- >> i think that's right. >> go ahead. >> that's right. >> a very severe decline in overall activity. i don't think the economy is strong enough. >> for 25 basis points? >> we keep talking about this -- >> boy, i'm going to watch out for my mutual fund position. >> -- very significant gas price declines, because the consumer is still on very fragile footing and spending the dollars on price increases elsewhere. >> what's the consumer going to benefit of low interest rates? they're going to get nothing in the savings! their educational skills won't improve. i don't see that medicine should be held. >> interest rates by businesses -- >> they're going to benefit from

low gas prices. janet yellen and the president didn't do that. >> we had five months of low gas prices and not translated into robust retail sales. >> what do you think is -- >> just offset that gain. >> dick, is that you? >> rick -- it is. i watched the release this morning on cnbc and rick made a comment that is a great question to be asking again. when should the fed begin to raise rates? at the end of the expansion? they're running the risk now of waiting way too long. that was the question rick posed this morning. >> what's your answer, dick? >> bill dudley said he's willing -- he said it the beginning of the week, willing to run the risk of waiting too long. that's -- i'm not cherry picking the language. >> slightly hot were his words. a slightly hot expansion, yeah. >> yeah. i think you have to factor that into your analysis here. in addition to the fact that

until we see wage growth, we won't see inflation and there's a 2% target and we -- granted, we have seen the beginnings of wage growth here but we're not at the stage in this recovery yet where that's manifest in meaningful way and combine the two factors and i don't see the risk of the fed involved here any time in the near future an i'm happy to wait. >> i'm agreeing if you show it's an impact on wage growth in the foreseeingible future! >> is their i don't know to -- >> rob, go ahead. >> i may not be able to prove that anecdotally, rick, but as we sit here today we're five years away from, you know, a pretty significant trough in the economy and the road map that we can now look back on has led to the point of getting the nfp report we have today and combination with the health of the consumer, in addition to this fortuitous christmas

miracle of lower oil prices which finally, finally helped the families in america who make less than $50,000 who have seen no wage increase in the better part of a decade. they're getting a real boost in real income and all of these things seem to begin to work together to demonstrate the point that the policies in place thus far are not giving anyone specific credit seem to have worked. >> we have to go. sorry. it's a good discussion, important one, as well. we thank you for joining us. and, rick, we hear you on "meet the press" on sunday. what will you talk about? >> whatever they want to talk about, i'll be able and willing. >> is chuck todd ready for this, rick? >> oh, i hope so. no. hopefully we'll talk about jobs. i think that the discussion we're having right now would be a good place to start. there's a lot of people in this country, you know, we talk about breadth of the stock market and the recovery isn't touching everybody and needs to be

factored in. >> that's right. >> and also a discussion of race and justice and throw it out so everybody's aware. unemployment rate for blacks 11.1%. hispanics, 6s. asians under 5%. there's a real gap out there for the black community and could say it's a recession, rick. >> oh, absolutely. and it's all about education. it's about education and every possible way and honesty, congress for the last six congresses have no excuses. i don't understand in a country that spends so much per pupil and so shortchanging the youth in this country. >> all right. we look forward to your appearance on sunday. thanks, everybody. thanks, rick. have a good weekend. >> 45 minutes to go here. dow up 57. we closed at 17,900 yesterday. we need 100 points to crack 18,000 for the close. we are seeing dow 18,000 hats around here. >> art cashin won't wear his until we hit it. >> as he should. more on the 207 story today,

these jobs, higher wages, when's wrong with today's employment report? jeff cox said the headline numbers masks a still weak labor market in his view. we'll talk about it with jeff and steve liesman later. starbucks ceo with us exclusively to show off the brand new roaster and tasting room in seattle. may be opening in a city near you over the next few years. we'll be right back. (vo) rush hour around here

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we are on dow 18,000 watch today. but they're going to have to move here to get it done by the close. we need a gain on the dow of 100.10 to make it happen. >> we're only about 50 points there right now. dominic chu rounding up the big movers of the session winding down the week. >> let's start here with northrop grumman shares. the defense contractor added to goldman sachs' conviction to buy list and a buyback program and

the shares up nearly 6%. different story for big lots after reported a third quarter loss of 6 cents, a penny more than expected. revenue also came in below estimates. stock down by 16%. and let's end here with another retail name. frances francesca's. its ceo is resigning after two years on the job at the struggling company. add that and other factors as a result sharyls here up by about 30% on the day lease trade. back over to you. >> never good thing when the ceo is leaving and goes up by 30%. >> i'll leave that commentary alone. >> not a vet of confidence. >> thank you, dom. a strong jobs number today, up 321,000. last month also revisions and largest gain since january of 2012. but our jeff cox is saying don't believe the hype because it's not as good as it seems. >> jeff joins us with steve liesman. jeff, what don't the headlines

tell us? >> bill, i never professed to be a math genius. here's what i don't understand. i looked through the numbers today and we are 4,000 more people working, we have 115,000 fewer people not working. we have 150,000 fewer people working full-time. 77,000 more people working part time. the bls gets a net gain of 321,000. and we have a bunch of economists saying oh my goodness. >> wait, wait, wait. jeff, wait. you do know it's two separate surveys, right? >> i do get that they're two separate surveys and wonder why we're going so crazy over one of the surveys when another tells us -- >> fair point. steve? >> it's pretty well established that the payroll survey does a better job of at least the month to month swings in jobs and the one that followed by both economists on the side of the aisle you're on or a bull or a bear.

you can look to the household survey to perhaps get clues of what is going on and the household survey is running pretty good. responsible for the decline in the unemployment rate down to 5.8%. i think this jobs number was very -- very strong and i look throughout the payroll report abe i saw consistency. i saw job growth in many industries. >> what about the household survey, steve? >> it's just very volatile and not followed month to month and the unemployment rate and that's about the best to do and help you out with long-term unemployed and part time versus full-time workers aenl with that broader unemployment rate or underemployment rate and i think the month to month change in payrolls, best to follow the payroll report. >> here are a couple of things -- >> and confirmed in adp. >> i'm glad you brought that up. i'd love to have mark zandi tell me and tell me what beam he hit his head on, 208,000 projected for the private payrolls growth and ended up with 314,000

growth. everybody on wall street or a lot of people on wall street bringing their numbers down. goldman sachs calling this number every month, projected 225,000 and this is maybe trivia or coincidence -- >> can we just -- hold on. >> the number is coincidentally this same amount of jobs that were created in the restaurant and bar business over the last 12 months combined. i thought that was interesting. >> the headline, you want fries with that? exactly. steve? >> i was just going to ask, if you're saying to me that it's wrong to think of trend job growth in this country, north of 300,000, i completely agree with you. i think it's still a very strong 200,000 plus. >> hence my point. that makes us look better than we are. >> it is not strong? weak? >> my point is it's okay. >> no, no, no. >> when you look at -- >> ten straight months of -- >> when you look at job growth

at 2.1%, year over year, are you okay with that? what? >> wage growth. 2.1% year over year. >> i'm not. >> not okay with that. >> how do you get to that? >> not being okay with -- >> tell me how you get to a place of higher wage growth? strong payroll growth that reduces slack in the economy. we're on the way there. we're not there yet. nobody says we're there yet. there's still tremendous slack in the economy. >> i've been watching what people have been saying today including you, steve. i hear this oh my goodness, a fantastic report. my point is i'm not seeing it. >> here's what i'm saying. if this report is confirmed, and it is by the way in line with several other very strong economic reports that suggest growth is running pretty -- at least above what is the potential rate of the economy and i have not been over the top on this thing. in fact, the first thing i said this morning was if it's 150 i would have said it's too low and

not indicative of the friend and 320 is not indicative of the trend. >> we're out of time. a quick question of both of you to answer very quickly, jeff, do you not see progress if you look back over time? do you not see progress in these numbers and, steve, do you see quality in these numbers? even though they do get higher and higher? jeff, you first. >> of course there's progress, bill. but, you know, my point for this whole thing is that, you know, we need to be vigilant and we need to keep going and, you know, keep being aggressive in terms of policy and not let ourselves be convinced of an economy we don't have. >> okay. >> aggressive in policy, you're out here criticizing fed policy from day one. >> and i continue to. >> that's aggressive policies keeping rates down. >> i think that -- >> what is aggressive policy. >> nanny state policy. aggressive policy is doing tax reform, doing the kind of things to help american businesses grow. not the kind of things that -- >> those are good things.

>> dependent upon ridiculous monetary policy. >> last question, steve, on the quality of the jobs, are you satisfied? >> obviously not but the 0.4% rise in earnings is perhaps better quality jobs created and be careful because when you have bad weather like september and low wage people are the ones who are least likely to come to work because their job -- not coming to work in that weather issue so that is maybe a little distorted by weather. >> all right. good job. good conversation. this, by the way, the conversation you hear often in the cnbc cafeteria all the time. >> by the way, getting the corporate tax reform. >> over pizza. >> the cherry on top. that's the last piece to fall into place. 35 minutes to go. the dow up 58. still shy of that 18,000 mark here and looking to see if we can hit for the first time on a closing basis ever. that could happen today. >> got to get a hat for art cashin. the pros weigh in on uber's

valuation above $41 billion. yes, the private driving service worth more than delta airlines, for example. we want the know if you think that valuation is justified. go to cnbc.com/vote. the live polls are opening right now. we'll talk about it coming up. later, starbucks ceo howard schultz meeting with us. he's launching a new ultrahigh end tastinging room in seattle and will show us around. >> as willy wonka.

get this. uber's valuation exceeds $41 billion based on the value of the latest round of financing they just completed and at that level, the private driving service is worth more than some pretty big companies in corporate america, including another transportation company you're familiar with, delta airlineless. >> unbelievable. dominic chu joins us with a special report on this valuation. >> if you want to call it a transportation company, it's bigger than delta, csx and norfolk southwestern and southwest airlines and bigger than biggest transportation companies in america. is it tech? is it transportation? right now the debate is still raging for a lot of investors and still $41 billion, yuber is on a relative basis bigger than other companies out there and we put them in perspective. at $41 billion, uber is worth

the same as two alcoas. and then you get to one uber valuation. what's more than that? if you look at the other smaller companies, still brand names on the toy size of things, look at mattel, current valuations it takes four to equal one uber enand then a look at one other one with the energy slide recently. diamond offshore, one of the biggest offshore drillers in the world and because of this valuation, decline in oil and oil companies, it would take about ten diamond offshores just to equal one uber. so again, bigger than a lot of transportation stocks and also bigger than a lot of big-name companies in america. that have been around for decades and why some people say maybe the valuation is something that we should be concerned about. it remains to be seen whether it goes public at a different kind of valuation, we don't know, but for right now this has a lot of guys talking. >> that's for sure.

>> unbelievable from a societial point of view. thank you for that. yuber is worth more than delta airlines, 12 diamond offshores. is that justified? go to take our live poll. cnbc.com/vote and let us know whether you think it is or in the. >> let's talk about about it. mark haight is with us and andrew romans in colorado is, though. andrew, i mean, you know, we play the game. it is all -- value in the eye of the beholder, relative. blah blah blah. is that valuation an accurate representation of the value of uber right now? >> right. i think it's fun and interesting to hear the valuation of uber compared to delta or alcoa an they have been around for decades and when's the growth and the future for that business look like? you know, i think that the valuation based on the metrics of net receipts and top line

revenue, it is high but here's the thing. people are buying it. there's people willing to buy uber and the market's spoken and buying it at $41 billion. you know, the other thing is i think i could see a line of site for this company to get to $100 billion in revenue so when i compare it to not delta airlines and alcoa but to google, facebook, yahoo! even microsoft, other tech companies that were delivering that growth, they all had insanely high prices and vcs to pes and the days the own the stock, not necessarily after the stabilization. >> okay. >> so mark -- i'm sorry. go ahead, andrew. >> well, just if you break valuation down to the metrics and someone buys a taxi ride via uber, they start it off as paying 10% to the driver. once they got critical mass of the drivers, they started -- i'm

sorry. they take 10%, 90% to the driver. now it's going up to 20% and their net receipts after they pay the drivers is getting up to $2 billion and basically dealing with 20x. that's what it really is. >> mark, the valuation he's saying is reasonable, a real business and a really fast growing one. why don't you think it's worth $40 billion? >> yeah. this is a greater fool theories type situation. most of the money's made by wall street. rather than if it goes public. you can sort of back out what the underwriters were thinking, you know, facebook had a $100 billion valuation and $4 billion in revenue and a billion dollars in profits just for that year that they went public and so the idea was, okay, it is going to grow. and if you -- if the reports are true that uber has let's say 10 billion in gross revenue and

maybe 2 billion in revenue, at 40 billion divided by 100, that's roughly half, okay maybe that's -- the problem i have with that is first of all facebook and some of these -- what the underwriters probably thinking, they have a totally different business model. they have advertising business model and huge recuring revenues. and then you have a situation where facebook and some of these other big tech stocks have a big mote. they have a situation of no come pet or thes or beat out the competitors. uber doesn't have that. >> let me introduce here the point we asked our viewers to vote in on this. it's unscientific. they chose to vote. little surprise it's as tilted away from the valuation as it is given who we think we know who our viewers are. they've been playing the teslas and netflixes in the past and 80% of them don't think the valuation is justified right now, andrew. what do you make of that? >> i think there is a mote with

uber. i would be scared personally to be taking on uber. they've got a critical mass of drivers and so many different cities that once you start using the service you want to use it more. so in the markets many different countries, people that have started using uber like it and will use it again and there's going to be growth and tough to compete with it. it has to have a lot of guys and girls like a dating site and i would say that there's room for their growth in different product service offerings. today they're moving people in these cars. i think -- >> mark, you don't think -- >> yeah. >> you don't think this is the kind of a stock to buy when it comes public and just let it salt away for a while? >> you can really see what the underwriters are trying to do. goldman sachs. $100 billion value wigs and try to sell it to the public on a speculative basis. you know, if they do an ipo. and so all the speculative money to be made will be made by the public, not by the big --

>> by wall street and not the public you're saying. mark, anybody using uber knows it's a legitimate business and a reason why you think it will collapse and not on the way to being a $100 billion plus company. >> do they have $10 billion in gross revenues? we don't know. there's a lot of information we don't know. >> all right. >> even if they had that, that's 2 billion in stated revenues to them. >> yeah. they're clearly bidding on future revenue growth and understand the reason for skepticism here and that's skepticism expressed by our viewers in the poll. thank you, guys. 78% say uber's valuation is unjustified at these levels. roman, mark, have a great weekend. >> i'm sur pridprised many sayi it's unjustifieunjustified. >> people begging for real business models. here's one. you can argue it, how many cities are they in and legislation's the real roadblock

here. all right. >> a lot of cities having to get the arms around that business model right now. dow up 41. looks like aesz and less like 18,000. 17,942. up next, do millennials have it tougher? >> no! >> jobs report, of course we do. they have some answers for you. stay tuned. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. ♪ my baby drove up in a brand new cadillac. ♪

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welcome back. where the jobs are. mary thompson in new york where she's finding millennials whose careers are beginning to take flight. hi, mary. >> reporter: hey there, kelly. the jobs in aviation. the faa needs 100 air traffic controllers over the next decade. here controllers will learn how to spot planes with eyes and on the radar. what we want to do now is introduce you to two people to hope to get two of the jobs to earn them six-figure salaries. 23-year-old deanglo blair's career inspirations of speed and financial reality. >> i wanted to fly jets and airplanes and then i couldn't just afford it i move on to the air traffic controller side. >> reporter: on track to be the first in his family to graduate

from college, blair expect it is degree in aviation from middle tennessee state university help him pass the tests for getting a spot in the training. stacy knew that she wanted to be around planes. >> i have had a passion for it. >> reporter: graduate of aviation program, he she's been accepted to the faa's program. now she's waiting to hear when she starts classes and start the professional journey to take her, well, almost anywhere. >> the great thing about it is you can get a job anywhere in the continental united states and that's amazing. >> reporter: now, before they go anywhere, students of dowling learn how to handle scenarios like the one here on the screen. that being, of course, a plane on fire. on the runway. now, the work life of an air traffic controller is short. union rules dictate they enter the faa academy by 31 and retire by the age of 56.

a coming wave of retirements, that's what's fueling this hiring spree by the faa. back the you. >> and you had me fooled, mary for a second. >> i saw you emergency roomier and the snow coming down. i said that can't be real. that's too beautiful. it is a simulation. that plane is not actually on fire. simulation. >> thank you. >> reporter: no. we're all safe. >> keeping the focus on millennials. they claim they have a rough time in the jobs market. >> joining us, jen mashori and we have miles udlam. i'm surrounded by millennials here. jen, you acknowledge unemployment is down for millennials and job wage growth is not up. that's your problem, isn't it? >> that's right. so we have seen an improvement in the employment numbers for millennials over the last year. you know, if you look at 18 to 34-year-olds a year ago, we were looking at double digit unemployment rates and seeing improvements an ena good

indication of that and also seeing that young workers are more and more working in sectors that are paying lower wages like retail, wholesale and so we're seeing a drop in wages for young people. we're looking at a 10% drop in wages for today's millennials versus young people a decade ago. >> miles, this goes back to the great recession. people say it will have an impact on the millennial generation in terms of lower wages and prospects lifelong. do you agree that we should be focused on that or do you see better news here? >> think the thing to keep in mind is that on the whole you've got more people working. which to me is important. we're on pace to add about 2.5 million jobs this year and half million of those to people between 25 and 34. so to me it's important to get millennials working. look, everybody's making less money. wages are barely keeping up with inflation. and so it's sort of a millennial problem and a struggle that everybody's having so i think things are good for millennials. >> jen, what has to happen to change this, to make it better

for you in you eyes. >> absolutely. we need to be looking at how to better align the workforce with our higher education system or how to better align the higher education system to meet the needs of the workforce. >> isn't shorter answer you want the baby boomers to retire? get out of the way. make room for us. >> you know, there's a lot -- there are fields growing and paying good middle skill, high skill jobs. health care sector, for example, very promising, for example. we need the pell grant to get to school and atine the higher salaries in the growing sectors and ensuring that we improve registered apprenticeships to get the skills they need and get into the sector where is the wages are growing and seeing some promise. >> is there a problem, miles, on that front. are the boomers a problem? >> yes and no. i saw a report this week of a plumber in upstate new york, 57

years old and looking for apprentice for five or ten years. and so i think millennials as you see -- >> five or ten years? >> can't find anybody. >> really? >> so as these jobs sort of come into the media and people talking about them, air traffic control, union job, plumbers, they need places to live and all these basic services that in the past were part of sort of a standard good middle class job and these things will come back. >> we don't want the boomers to leave. don't go. >> okay. we'll stay. >> thank you. jen and miles this afternoon, appreciate it. >> thank you so much. 50 minutes to did. >> art cashin tells us the last 15 minutes could be critical. we'll see. it is up in the air of dow 18,000 on the close. we are 64 points away right now. at 17,936. >> stay right here. we eke back in two. they're still after me. get to the terminal across town.

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for the first time. >> we have a tug of war in the close i guess. >> bottom line is if this would have happened a year ago, this kind of move up in nonfarm payrolls, the dow would be down 200, 250 points. >> fearing rates going up tomorrow. >> yes. we see a modest gain and strong move in financial stocks and the way it's explained to me, the bank guys buying the stocks say any short-term rise in rates is good for banks overall. also, more jobs means less defaults on loans for the banks. longer work hours. more pay, better consumer conditions. more loan possibilities and kind of makes a little bit of sense right now. >> two-year note went up a lot today. >> that was the big mover. others have gone up, as well. that's one to keep an eye on. >> that's short-term rise in the rates there and the important thing is we see industrials holding up. we see financials holding up and even interest rate sensitive stocks down today are only down modestly. the market on the equity side, the market telling you they're

not terribly afraid right now. >> what's the next catalyst? >> federal reserve on december 17th we'll find out what they have to say. that's a presser day. >> news conference day. >> anticipate everybody's now betting the obvious thing is remove the language of rates low for a considerable period. that's the phrase. that will obviously go away. that's the bet right now. i think most people still betting they're not going to aggressively indicate to raise rates sooner rather than later and mid-year 2015. >> we'll see. thank you, robert. >> tn minutes to go here. dow up 32 points. s&p by the way, not enough love today. it is up by 2 points. i'm sorry. just fractionally negative. it's the nasdaq up right there about 2 points. coming up later, starbucks ceo talks starbucks new reserve roastery and tasting room. sounds delicious. we'll explain what it is and

expect one in a store near you. coming up. financial noise financial noise financial noise

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floor of the stock exchange, peter t you chman said it's not going to happen today. dow 18,000. we have that much time left. david darst joins me right now. we need to step become and celebrate the jobs number, don't you? certainly you can find some soft spots here and there but it was good. >> upgrade to previous 2 months. over 300,000, bill, i think the average hourly earnings, which we have talked about many weeks has been very muted and it was up .4% versus only .1% for october. that's got to make janet yellen and all the other people to see that the labor market tightening beginning to translate into higher earnings for people. that's really what makes a lot of contribution to retail sales, consumer sales. motor vehicle sales, 17.2 million analyzed. >> very strong on that one, especially chrysler.

what about bob just pointing out, if this happened last year that the time, the market down 200 fears higher interest rates sooner rather than later. does the market not expect the fed to raise rates or do they not fear them now do you think? >> i think we are ready to go through a psychological and a perceptual change. it bites at 3% and above 4% and above. we're at zero or one quarter of 1% so i think you're going to see that these low energy prices, better jobs numbers, mortgage interest rates, 30-year mortgage rate this year, this week, below 4%, bill. 3.89%. for a 30-year mortgage. and i think these are helpful things an ensee that translated into a feeling that interest rates should be a little higher. >> we're going to take a break

and come back with david here and the closing countdown and see how we do. i think peter tuchman is probably right. after the bell, is starbucks ceo the steve jobs of coffee? the coffee purveyor. he returned to the company in january of 2008. shades of steve jobs back to apple. and that was when -- by the way, starbucks on the brink of -- on the brink at that time. it does sound familiar, doesn't it? we have howard schultz coming our way in the next hour of "closing bell."

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because at scottrade, our passion is to power yours. all right. two minutes left. very quickly. weekly chart, the trend you see here. this is the dow for the week. for the week. a gain of about two thirds of 1%. obviously, moving higher. because you had oil moving lower. remember on monday we had that rally in crude oil after the selloff when opec didn't cut production. we have come back to the lows for the week and down 1.6% for the week on crude oil. gasoline for the first time in like five years we now have gasoline prices in this country below $2. that one station in oklahoma city leading the way at $1.99. the trend for gasoline for the last three months as you see obviously is lower. 10-year yields there were moving higher buying stocks, selling bonds. the yield on the 10-year up to

2.3% and david, hidden in all of this is the strength of the dollar which is wrecking havoc with commodities prices and moving interest rates higher. >> bill, you have the dollar strong in the reagan years from -- in the early '80s until they dropped it in order to make us more competitive with japan in '85. you had another big strong dollar period in the late '90s given -- driven by the internet craze going on here. people wanted to get in here and participate. this third big dollar trend which i think can continue is driven by the energy mean, the energy theme where people want to come in here. saudi arabia, everybody is pointing. this we can's cover story of the economist magazine shows saudi arabian with a gas pump in his hand and a shale oil producer. that's the big driver of the dollar, as well. >> and feeling is that it's going to continue, as well. thank you. >> nice to see you have a great

weekend. see you later. going out and we are seeing a move higher here but we are going to finish below dow 18,000. that's first hour of "the closing bell." thank you for joining us. stay tuned now howard shchultz will be along. and welcome to "the closing bell," everybody. i'm kelly evans. we have almost missed the fact closing again at record highs here on wall street. s&p going out with a gain of about 2075. the dow adding 56 points for its part to 17,000, i'm sorry, 957. of course we didn't quite make it to the 18,000 level but that was asking for a lot today. we did have the jobs report to spring off of. let's get to it. here we're setting up for next week, as well.

joining me is jim la camp and robert frank, kenny pulcari and bob pisani all around the table. so welcome one and all. pretty historic day and didn't crack 18k. what do you make of it? >> what's not to like? the market claws higher. the market responded positively to good news. didn't care the bonds were selling off. we're seeing the dollar continue to be strong. the yen which is cratered today. oil prices lower. bodes well for monetary inflows into the united states. good story for equities. i think we claw our way higher to the end of the year. >> too good? you get into the cycle of stronger dollar, begets an inflows and then too much? >> i'm with him. i think the yen 121 yen to the dollar, that just cratered right at 830. that makes that yen carry trade even stronger and don't underestimate how powerful that is.

a lot of it finds its way to u.s. equities. >> and the euro is weaker. >> used to find its way into the australian dollar and look less attractive with the oil price declining and barely talked about it fell another 1% today closing at a five-year low. what do you guys make of it? what's at stake, robert? >> jobs report is unbelievable. okay. it's an outlier. a lot of overanalysis and more people working. they're working longer, getting paid more. this was great news. i feel like i've been coffering a foreign country for five years and people making more money and more wealth. finally this is spreading. >> you're talking about the 1%. >> that's right. >> you feel like it's finally something that everybody else is participating in? >> mass recovery and everyone will benefit and combined with gas prices. this is a very good holiday season. >> wage growth 0.4%. >> and the fourth time that we have seen the past year better than .3%. this wasn't a little bit of an

outlier but seeing wage growth that's consistent. >> that's very interesting because "the wall street journal" ran with a headline article of disputing that point completely about wage growth and lack of wage growth and what the real unemployment is. listen. i get the number is great. 320 number and it's great. it is such an outlier and almost discounted. >> they did last month's numbers and i'm with you. real wages aren't really growing. >> that's correct. and temporary jobs are up. >> if you're talking about -- no, but they're growing more because you've seen oil drop so your dollar goes further. >> 2.1% is analyzed wage growth. that's not really anymore than the inflation rate and not seeing enough capture of wealth from individuals on the lower end of the spectrum. >> let me ask. >> i don't think that's the problem. >> what's enough? what's the amount? and then do you start to worry about inflation? and then axccelerates the fed ad

kills markets. what is enough? >> 2% labor participation is low. >> everyone was concerned four years ago at the unemployment rate. that's come down and now focused on wages. coming down they'll have something else to say. the middle class is not getting enough. finally we are seeing strength in unemployment. >> what's the trade? i know, robert, this isn't your job. we can ask jim or others but if you're right, what's the trade? >> i think consumer discretionary is going to improve particularly with oil prices continuing to slip here and retail sales starting to do better in the last two or three readings. usually having that much of a jump in retail spending, it carries on for several more months. >> we saw the trade today. it was financials and everybody said, my heavens, that's a tougher trade in this situation but better jobs, means more credit, means less defaults. it means banks generally doing a little bit better overall. the market told us what the trade was. >> steve grasso with more just

off the floor. did you think we'd get to 18k in what's it take next week? >> going to year end. people really -- i don't think they make any big bets here or there. obviously, you have the dollar at a five-year high. you have oil at a five-year low. energy doesn't look like a beta chase into year end. you had as bob said financials a proxy to the market. financials running. what i see as suspect, though, kelly, is that you still have utilities. i'm long southern. you have utilities performing really well. that doesn't scream to me risk-on trade. right? 4.5% yield. >> does it scream, steve, goldilocks and not at that point of a rising rate environment and so the question then becomes is the market underpricing the extent of moving here? do you think they are? >> or is all this nonsense of the fed really not moving before june of next year? >> right. >> and i think that's more the case that we're probably all getting excited about this rate rise but the market doesn't

reflect the changing price. >> interest rate sensitive stocks down slightly today and reits for example, utilities, they're comfortable and not going to raise. >> that's right. not going to raise rates ahead of -- i think the expectation actually was more midsummer. i mean, a couple of weeks ago talking september, october. maybe august, september now. is it going to february in february march? absolutely in the. >> to the point of utilities, we have seen consumer staples to be strong and health care. these are not aggressive names but if you look at big cap tech, it is moving lately an enstarting to see it spread out to more aggressive names. >> what about bonds? knowing how much the retail investor, institutional investor piled into bonds, how much risk is there in the bond funds today from zero to a lot and should people be reallocating the money here, jim? >> there's a risk to the market here particularly in the high yield sector.

we don't know how many energy defaults in the energy sector and been tremendous amount of issuance in a sector. if the fed starts to raise rates, they did 17 times from 2004 to 2006. the 10-year treasury basically stayed in place. i don't think we have to worry about this. >> great point. kenny? >> rates go up so incrementally. not 2% at a time and so therefore they're going to take it very slow and see how the market reacts. >> also going to be interesting, robert, next year to look at the affect of effectively an oil patch recession in the high yield market right now and doesn't often happen of a localized recession without a national event so i'm just curious how that plays out. >> it reminds me of housing where everyone in the oil patch is saying, first they said, well, you couldn't see oil under 70 bucks. not going to happen. and now sort of seen this before and we're ready for it. i don't think they are ready for it. i don't think where we know and

where those risks are and who holds that high yield debt and one of those black swans that's really if oil keeps falling we'll see a lot of collateral damage with the banks, hedge funds and holding the debt. we don't know who holds it. >> steve, we saw it today. nabors down. marathon off. eastman chemical down 3.5. again, largely the focus on the key levels and shouldn't overlook that pressure. >> look at energy. the real risk is upstream market. that's where you get the rail risk. downstream names or refineries, not as much risk there. so that's why you see a name of exxonmobil large integrated name with a yield seen as basically a safety bet and down year to date and where people are hiding. you have exxonmobil. they don't know what's happening. >> we should have these probables with the energy sector

down 9% this quarter, we still have the s&p 500 sitting at historic highs. i'll gladly trade -- >> what happens if that reverses? i have a case what happens if you get that spike higher? i'm not a believer you are going to. if i'm wrong and energy starts to escalate higher, do you still capture those gains in the s&p? or do people start to give it back? everybody's pointed to consumer discretionary. >> depends on why prices go higher. economic growth story, that could be -- >> i'll gladly trade lower energy stock prices for the economic benefits of lower energy any time. >> not a growth story. europe is not getting better last time i checked. >> you seem -- steve, you are so dour. >> i'm so down quha? down? >> dour. >> yeah. think about it. china growth from 11% to 7%. you have the commodity play and -- >> yeah. >> we stated this whole interview started with the dollar being at a give-year

high. everyone thinks you can bet against the dollar bet. >> we have to go. >> if you look at a long-term basis, the dollar has room to climb. >> that's a great tease for your show. thank you for being here and everybody. catch steve coming up with the rest of the crew on "fast money" at 5:00 p.m. thanks to bob, as well. stocks rallying as a result. are investors not worried about the fed raising rates next year? no, this isn't chocolate factory. it's starbucks brand new roastery and tasting room. a mega store in seattle. how will this affect your local starbucks in just a couple of years? coming up, the coffee giant's chairman and ceo howard schultz with an up close look. keep it right here. you're watching cnbc, first in business worldwide. do you thin you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to like, pull it a little further

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321,000 payrolls added in november and the market rallied. are investors okay with the fed staying the course for the first rate hike next year or not? let's ask beth ann bovido. welcome. >> great to be here. >> we did see market estimates

of the first rate hike move forward and yet stocks rallied. >> we have been hearing from the fed i don't know how long to do it. we have gotten over the separation anxiety and maybe markets realize they'll slowly take it away. >> we also just heard new york fed chief dudley say he wants the economy to run slightly hot if anything. >> put it this way. i don't know what markets we're thinking. we're saying that the fed's first rate hike is june of next year. we think that they're going to move in terms of slowly, slowly raising rates, 1.25 by the end of the next year and that's exactly where the fed brought them down in the previous recession and really getting back to normal recession their levels. >> it doesn't make any difference. i don't want robert to accuse me of being a grinch which he will do but look at interest rates around the world. japanese rates are lower than ours. spanish and italian rates are low and our economy is better. doesn't matter if the fed raises

rates or not. interest rates don't go anywhere while the other countries suffer from deflationary fears. >> i think the fed takes it slower with the inflation factor. the dollar is strong. historically still kind of within the average. it's still rather strong and then importing some activity and slow them down and i think they're on the path and they want to keep going. >> but still june the first time. >> i'm saying june. >> all right. thank you so much. really appreciate you being here on this big day. we move to some breaking news on gunmaker remington with our scottcohn. scott? >> reporter: remington is nation's oldest gun manufacturer and just agreed to a major class-action settlement with the model 700 series rifle. cnbc reported on allegations four years ago that the rifle is prone to firing without the trigger being pulled. the company in this settlement

denies the allegations that the gun is defective and has repeatedly denied it covered up a defect. nonetheless, it's agreed to compensate millions of people who own these guns and the 700 series. in a class action case that resolves a number of complaints that go back decades. a central figure in our documentary and in this case is richard barber. his son gus was killed in 2000 at the age of 9 years old in a hunting accident. rich made it his life work to learn about the truth of the remington 700 rifle. he joins us live from boseman, montana. thank you for being with us. i can only imagine the tangle of emotions right now. tell me your reaction to this. >> well, it's not unexpected to me. i've been involved in this project. today this marks the beginning of the end for me.

and i have great hope of getting my life back. >> there's been a lot discussed about your motivation, indeed we heard a lot discussed about our motivation and whether it's an anti-gun crew crusade. tell me why you have done what you have done and why it's so important to you, beyond the tragic loss of your son. >> first off, three days after my son was killed and information started trickling in to me, i made a promise to my son three days after he died. i promised my son it ends here and now. i would never be bought off or quit until i have affected change. i've done this primarily as an effort to try to serve and protect others. my work has been featured in not only by cnbc but a lot of other major networks and that was my attempt to educate the public, to prevent future injury and

death. when gus was killed, nobody knew anything about this. it was all con creoled in our court system. pursuant to protective orders. and i sought to put an end to that. >> rich, remington in this settlement agreement denied there's anything wrong with the gun. i suppose that is to be expected and we're sill reviewing the terms of this. do you feel as though this settlement now will take care of the problem, people will understand the potential issues with this gun and that it will lead to a safer product? >> i believe so with the recall coming to pass. i've done my part. i have -- i don't know what i could say that i haven't already said. people need to draw their own conclusions from the information that's before them. i think it's important to note that this is an important agreement and everybody gave

something to make this thing become a reality. i gave something. plaintiffs gave something. remington gave something and i think remington should be commended in their effort to put this behind them so all of us can move forward with our lives. >> richard barber, live from montana, thank you so much for being with us. reminder, we have lots more coverage of this important settlement right now on cnbc.com. kelly? >> scott, our thanks to you both. starbucks is building a cathedral to coffee. they're opening a mega store in seattle that looks like a coffee candy shop. when's behind the move? ceo howard schultz joining us. thousands of americans across the nation protesting the lack of indictments in new york's chokeholding death and the ferguson shooting. "meet the press" moderator chuck todd weighs in and his show this weekend focusing on those issues. he has a preview coming up.

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welcome back. today starbucks unveiling the latest venture. reserve roastary and tasting room in seattle and their hope is many more will follow. joining us is starbucks chairman and ceo howard schultz. welcome back. how did it go today? >> this is a historic day. we have dreamed about this

moment to open up such an immersive experience to demonstrate all of the aspects of drama romance theater of roasting coffee and making it into perfection for our customers. we've -- our stores are overcrowded today. it's willy wonka of coffee. only thing is missing is the ride the likes of disney. >> well, that doesn't sound cheap, howard. it is great the know that this is a kind of destination, a flagship if you will for the brand. it seems to me it's also about improving the taste of the coffee at a lot of shops across the country. can you tell us how expensive it will be to roll out the roasteries and the expense planned for it. >> let me explain what we're doing today. today we are unveiling a new brand in the family and starbucks reserve. the star in the "r."

rarest of highest quality. we'll begin opening up over time about 100 small starbucks reserve stores. but this facility which is almost 20,000 square feet which is a full immersive multisensety experience the likes of which does not exist not only in the world of coffee but anywhere in retail probably find itself next in calendar '16 somewhere in asia. where we'll build in leading global cities this kind of a facility. this is a magical experience that is majestic, customers are walking in here and they're literally swept away. shines a halo on the brand and it makes starbucks i think more relevant than ever before. yesterday we had all of wall street here for an investor day. you saw how the stock responded. i think people saw the future of starbucks as they walked into this facility. >> and listen. your share performance since coming back over seven years is

nothing short of incredible. i mean, you are up 310% and the s&p up only about 40 or 50 in that time period i think. did you expect at the time that you would be able to create such value without, for example, rolling out some of these new more focused initiatives aiming at protecting your share of the coffee space that's now rather saturated. >> always had a unique view of building the kind of business that we have built and that's the balance between profitability and a social conscious and taking the long view. we were the first company in america for health insurance and equity in the form of stock options to part time people. this year alone free education for juniors and seniors who work for starbucks. what we're trying to do as our company is build a great enduring company, take the long view and recognize the importance of building long-term value for our shareholders and extraordinarily proid of the performance over the last seven

years but as i told the shareholders yesterday and in this facility emblem attic of that, we're just getting started. aspirations are greater than ever before. but we recognize that our success in the past is not giving us an entitlement for the future. we have to earn it and that's what we're committed to doing. >> understood. now, it is interesting to focus in on how all of this despite the roastery and rain drops of coffee beans and affect or improve the experience your average customer has of the starbucks location. three times in the last two weeks i've walked in for hot chocolate and walked out because the line is too long. takes forever. talk about how long you improve these through the use of technology or other means. >> well, i'm glad you asked that question because we're three days in in the pilot in portland, oregon, mobile order and pay. but during calendar '15 rolling out mobile order and pay and in

a second half of the year delivery. we believe that will be significantly incremental in terms of traffic and most importantly will enhance the customer experience. shorten the wait time and provide another opportunity for people to enjoy starbucks coffee. i agree the stores are very, very busy in new york city. we're addressing that issue. in a sense, it's a good problem to have and working hard to solve it. but between mobile transactions, mobile order and pay and delivery by the end of '15 not only will the problems be solved but continue to be the leading technology retailer in the country and what's emblemati krf c of that is 8 million mobile transactions. calendar dle 13, billion three at mobile retail and not not satisfied. i recognize the issues and continue to work very hard to be the leader in mobile technology within the four walls of the

retail stores. >> i raise it as well because in some ways people compare your period of company at mcdonald's when its problem is took too long to get items and the menu too sprawling and a concern that lasts to this day. as "wall street journal" noted is 255 item numbers on the menu. talking about food, beverages, more in the evening. you can understand why it's a little bit overwhelming and i just wonder why go this route instead of streamlining the entire thing? >> well, well, i wouldn't put mcdonald's in the same sentence as starbucks but i'll allow that for now. but in any event, in any event, let's make sure you understand what we're trying to do. what we're doing is identifying future and existing need states and understanding that there are other day part opportunities within starbucks but our core business is coffee. that's what we do. that's what we live for. and this facility is emblematic

of the fact of adding menu items, there are adjacent categories to the nature of what we do every day and that's serve over 70 million customers a week. we're coming in primarily for coffee and other items. >> you are still talking about -- i'm sorry. go ahead. >> yeah. no, the other difference between mcdonald's and starbucks is let's make sure you understand one thing that's very important. we are a company owned system in which we employ over 300,000 people all over the world who are owners of our company who are deeply attached to the values and the life blood of our company has been the equity of the starbucks brand is our people. the problems that mcdonald's has had and continues to have is nothing to do whatsoever with the existing business model or the future of starbucks. >> so do you think that when it koims to the minimum wage your compensation for your employees is sufficient? when's the typical wage that you are paying baristas and do you

support a raising to $15? >> well, what we have done historically is we have historically in every state that we operate pay more than minimum wage in addition to comprehensive health insurance, 401(k), equity in the form of stock options and college tuition. after january 1, the wages at starbucks are going up again in which we'll continue to pay above the minimum wage in every state that we operate. >> just going back, as well, to the experience in the stores, i know you mentioned this is -- in the roastery a focus on coffee going back to your roots and you also did say to investors you want to double u.s. food sales. we're, again, talking about new menu items or doubling and adding other parts of the day, for example, the evenings combined with beer and wine sales and what does it look like in a year or two time? >> well, what we have tried to share with the investors yesterday and obviously they

responded quite positively is that there's 12,000 north american retail stores and each one of those stores creates an opportunity for seg menation. what i mean by that is day part opportunities in the early afternoon and the evening to create new food opportunities that our customers want from us. not every store will be the same. but we know we have license from our customers to provide other opportunities of different types of food in the afternoon and evening. with regard to beer and wine, we've tested that very successfully over the past year. and we will be rolling that out to about 500 stores or so in the next calendar year f. you look at the body of work of starbucks and you said it yourself in terms of the last seven years of our financial performance, we've been extremely disciplined and thoughtful in the way we roll out products making sure that the customers are at the center of everything we do and our mantra for 43 years is one

thing. in order to exceed the expectations of our customers, in which we wake up every day to do, as managers and leaders, we have to first exceed the expectations of our people and that's how we have built so much significant shareholder value. >> two final questions, howard. you just brought up leadership. you have been critical of leadership in this country. what do you propose doing about it, for example? is this in other words a problem of the system or blaming president obama for his leadership failures? and how do we redress that in 2016? who do you think out there right now would be a more effective leader for the problems of the country at the moment? >> well, i have been quite outspoken. i think it's quite tragic that for the better part of ten years now we have had a complete dysfunctional government in which we cannot possibly seem to get even small things done. i was hopeful that the new congress would embrace the president and the president

would do the same and looks as if we're having the same level of polarization. i think the united states -- i think the people in america deserve much better. there's clearly been a fracturing of trust and confidence. i don't think we can go on too much longer like this. the country is in dire need and longing for truthfulness, for authentic leadership and hopeful in 2016 we get that from the right candidate. >> do you think, would you support mitt romney as that candidate, howard? >> i'm not here to support any candidate. i'm here running for starbucks. and doing -- >> are you running for president, by the way? it sounds like that, as well. >> no. no. i'm not running for president. i am running for america, though. no. i'm not running for president. >> understood. howard schultz, we thank you again so much for being here and seeing how the concept does in seattle and branching out.

ceo of starbucks, thank you so much. >> thank you. stocks closing at record highs again today. tech stocks continuing to help lead the way. now one wall street firm saying the tech sector going nuts next year. that story is heating up the hot list next. are americans willing to spend more on high-end wine? silver rope will join us coming up. at if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

stocking continue to hit new highs. let's see what was burning up cnbc.com with allen wastler. >> market was pretty interesting for folks until this remington news hit. we have it up in the lead spot right now. people are diving into it at the rate of about close to 300 people a minute. just eating it up. remington doing this massive recall of the model 700, nation's most popular gun. all of this was, you know, sort of based on a cnbc documentary. we have it available in that story. people can check out the clips and all scott cohn's fine reporting on it. really getting attention right now. number two, you had him on earlier, jeff cox sort of

throwing cold water on that hot jobs report saying it's all made up of mcjobs and kind of low level type stuff and that's getting a lot of attention, as well. and then a report out of europe this morning. hsbc with an examination of the tech sector and says, hey, they think it can keep going and that tech stocks might go nuts in 2015. of course, everybody's been saying tech stocks, you know, way oversold and tech bubble. hsbc says, no, they're the only growth game in town and why people should be looking at them. top lee for you, kelly. they're very hot today. >> that will do it and important stuff online. thank you. thousands of protesters calling for police and judicial reforms after no indictments in ferguson or the new york chokehold death and now consuming washington, d.c. "meet the press" moderator chuck todd is here next. stay tuned. are all the green lights you? no. it's called grid iq.

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i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably. we call that predictable. thrillingly predictable. welcome back. lack of indictments in both the michael brown and the eric garner death cases are sparking protests across the country putting the race issue front and center in washington, d.c. joining me now is chuck todd, moderator of nbc's "meet the press" and the sunday shows focuses on these issues specifically. great to see you. tell us who you're talking to. what is this conversation about? >> this is more of a law enforcement conversation. i'm going to have people from sort of the various parts of the law enforcement community, a couple of police chiefs, mayors,

also cy vance, district attorney for manhattan, somebody representing the fraternal order of police because this seems to be what needs to be rebuilt. i think now there's acknowledgment universally, african-american community has a trust issue with the law enforcement community. that has to get repaired. what does it take to do that? techniques? training? is it cameras on cops? is it videotaping interrogations? what do different police forces need to do? that's the focus of the conversation that i'm hoping to have. >> like to get the panel in a second, chuck, but seems the tenor of this shifted with no dimt in the eric garner case and whether it's about cameras on cops and the fact there was video footage in this kiss and didn't matter makes it a much broader, deep, difficult conversation, doesn't it? >> it does. i think it goes to what you've heard from many african-american leaders for years but particularly that african-american men in general

don't feel like they get a fair shake from the law enforcement community period. and they feel as if case in point eric garner. i think that that's where you're seeing sort of universal acknowledgment that, okay, this trust issue, it's a perception problem. people may want to quibble with how deep the problem is factually but the perception problem i would argue is of greatest importance because you need a -- we need to have a good police community if we're going to have safe communities. >> kenny? >> chuck, i would say this. based on -- we live here in new york and based on the experience here, the demonstrations and protests quite honestly have been -- have been welcoming and a surprise really to not only to the city and even to -- >> right. >> -- people all around and brought it to the service. they understand it now a perception problem.

i think deblasio has to work with the police department and the police said maybe there's new training we have to do, new conversations that have to happen and the trust rebuilt on both sides. >> how much of that, chuck, can be affected by washington? why have this conversation in washington right now? >> look. i don't know how much of a role washington should be playing here. obviously, the justice department is going to have a separate investigation. that is a necessary but i noticed yesterday, for instance, columbia, south carolina, a police force with one of those troubling statistics where the police force is much whiter than the community it serves. but what did the police force do yesterday? they announced proactively cameras on cops, videotaping of interrogations. i think you are seeing communities around the country realizing, okay, city leaders, police chiefs, get out in front of this before we're a national conversation. >> that's one reason by the way people have been buying shares of taser and gopro thinking this is happening everywhere.

>> chuck, that goes to the point of ferguson or that city in north carolina, why is there such an imbalance? why is the police force in these communities predominantly white if the community is predominantly black and not more of a mix? i think that's another conversation that has to happen. why aren't we attracting black police officers, men or womens into the communities to help? that's actually part of also i think the perception problem. it's like us against them and it's wrong. >> absolutely. and here's the thing. the very large police forces have done this. the big ones. nypd, lapd, chicago pd, metro dade county, miami. the large ones have done this. what's missing is the mid sized ones, the smaller cities, smaller communities and where look at ferguson and talking about ferguson, ferguson in the st. louis metro area and has a police force of its own. those are the communities that they need to step up. >> you want tips for dealing with rick santelli? >> i have immigration on the

table. i'm sure he's going to look forward to that and the economy and 2016. i got an array of issues. >> no. it's great. i think it's wonderful. we look forward to sunday hearing from him and hearing from everybody. chuck todd, thank you for being here this afternoon. >> thank you, kelly. >> chuck joined by law enforcement experts to discuss the issues of race and justice. check your local listings for that air time. are consumer spending big bucks on discretionary items? wine? we'll check the indicator and luxury wine maker silver road. stay tuned. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions,

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welcome back. wine's a popular gift this holiday tile but what about wine that costs $100 a bottle? david duncan joins us with some of that $100 a bottle wine to tell us about demand this holiday season. welcome. >> hi, kelly. >> robert franks' thesis is the economy of a 1% growth and recovery economy to a 99% if you will. you've seen that in your product? >> yeah. i would believe that for silver oak particularly. i think our brand with the value wine is $70 a bottle. napa is $100 a bottle.

really is for the person who just got their promotion for the person who wants to have an affordable luxury at a special dinner that night whether they're celebrating at a steakhouse or out somewhere else and that's part of the part of t we love about silver oak. >> talk just generally, we spoke with howard schultz, he's introducing beer and wine to starbucks locations, doing a wine kind of thing with coffee now where it is becoming specific and the pallets are becoming more sophisticated. were you going to stay out of that? >> i think it is a great thing. i think starbucks will not sell wine at $30 a glass, but perhaps, we'll see where they go. but i think the idea that the american consumer is interested in -- i saw the schultz piece in the way that coffee is being broken down into its varietal thing, something wine has been doing for hundreds of years. >> david, what are you seeing internationally? i read all the stories about high end chocolates and big demand in china, high end

tiffany type items, what are you seeing out of the asia region for wine consumption? >> in asia in particular, it is the soon to be or is the largest wine consuming economy there is. of course, the french have a wonderful head start there. and many california wineries including silver oak and toomey, our brands, are making inroads in asia. i visited there myself for the first time last year to talk to the consumer and see what was happening. i think it is an exciting, very exciting wine region. >> china, all about roman econte, about the first growth. now you're seeing screaming eagle show up, those great napa valley i was on show up in the auctions. but globally we still have a chronic oversupply of wine and in napa valley seems like everybody has a winery now. every billionaire, every hollywood celebrity, every pop sing heaer has a wine now. is it getting xhod commiditized?

>> things really started in the late '60s with robert mondavi and on. and i think there is an opportunity in the wine world for, you know, kind of the small things. most of the productions you're talking about for celebrity brands are very, very small and don't impact the wine world in a major way. >> i think you hit the nail on the head there are wines and there are brands. silver oak is a brand. it is like a -- it is like a tiffany, right? you want a nice bottle of wine, go for silver oak if you want a california wine, versus going out and buying a $20 bottle of wine, that's great. for the brand, go for the brand. >> the drop in gasoline prices, how much additional stimulus that might be this holiday season. does that make a difference for those buying your product or what can you tell us about trends? >> we're up 16% this year. so things are looking good for

us. i think the -- the discretionary spend is when the consumer is happy, one of the things i follow personally in the wine business is the michigan consumer confidence index that is a direct indicator as we went through the recession, we saw that go down, wine sales got tougher. that is up at 88 or whatever it is at right now. and people are buying wine and buying expensive bottles. >> your wine is not for the hoi polloi. you talk about the $20 a bottle, didn't they get hurt more than you did because the stock market has done well over the last several years and those that had money still have money and they buy wine, go out to dinner, corporate dinners. i don't know about the $20 to $40. what did you see in that end of the market? >> that end of the market was hurt more and more discounting, more aggression on the behalf of the producer to really get the wines out there and get the boxes moved. we really focused on maintaining brand strength. as we came out of the recession, you know, that served us very well.

we had a joke during that time that they limited -- you can spend $60en on on a bottle of wr buy silver oak. >> when it comes to the amount that people are drinking, some bourbons and other products we have been featuring lately, they're very trendy now. is that peeling away your customer at all? >> again, i don't believe so. think that interest in beverage and alcohol and people seeking quality, those products tend to be very expensive, is a wonderful trend for us and the wine business in general. i think something we look forward to having people seeking quality, you know, whether it be food or beverage or wine or coffee or whatever it is. that's a good trend for us. >> now i know i have a new economic indicator, cabernet, corps rela co-related to the state dinners. ceo of silver oak. we'll give you what the panel is watching next week when we come back.

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welcome back. what a week, what a day with the payroll number. let's talk to the panel about what we're watching next. k kenny, you're up. are you still thinking about the cabernet? i know. you can tell us. >> i'm looking toward the end of the year. we're so close to the end of the year, i want to see how the retails play out, see how this

story plays out in oil. i think oil found its level here. i don't think it is going much lower. i think actually oil is setting up to be the new trade for 2015. energy names are setting up to be the new trade for 2015. >> robert. >> i'm looking for something really important, the million dollar truffle. tomorrow sotheby's will sell a truffle, a mushroom, found in italy, four pounds. they say they got an offer of an million bucks from a guy in china. that's the sign of a double. a million dollar mushroom. >> i was going to say, maybe it is -- the last one was half a million bucks in 20 10. it tells you we have come -- i want to know who buys it? still the chinese buyer? >> russian or chinese, guarantee. >> really? >> jim? >> i'll look at the currencies. the yen is following. the euro is following. the yen is starting to accelerate its decline. while that's a plus now, for the dollar, if it goes too far, too fast, it could become a concern for the market. we're looking for the markets to go higher. >> to your end, do we talk about

a meltup or too soon? >> the third year of the presidential cycle is also provides a tailwind for stocks as well. we have the end of the year and the third year of the presidential cycle. >> your prediction on the spot here again, it is so fun to do, when do we hit above -- >> i think it could be next week. we came very close today. it is a matter of how do we close through it? do we do it with any real commitment or is it just kind of -- does it really just drift up and then drift back? i think it is close. >> do you hear the guys around here talking about a meltup at all or no? >> no. not really. not necessarily about the -- i think people are concerned because the -- they feel like we are -- we're moving higher on not a lot of commitment so a little bit of nervousness, but nobody is calling it a meltup yet. >> we'll leave it there for the time being. thank you very much. have a great weekend, appreciate it, everybody. talking truffles, talking cabernet. time for "fast money" with melissa lee and the gang. >> lots of big trades to talk about. china, huge move up 20% over the

past month. also we'll talk about that controversial call out of bank of america. google or yahoo!. would you rather? we'll see what the traders think. >> i love that one. straight over to you guys. >> thanks, guys. "fast money" starts now. live from the nasdaq market site in times square, i'm melissa lee. tim seehorn, steve grasso, closing in on dow 18,000 after a strong jobs report this morning. u.s. financials leading the way. the market that is exploding here is china. shanghai composite, best week in five years. and starting to feel maybe a little bit bubbly according to some. the index is up 21% in just one month. so what is the trade at this point? tim? >> bubbly is something you have to take in context. i agree. the market has been doing crazy things. they added 380,000 brokerage accounts in china last week. this whole thing about local money, it is a captive market, you had the market connect with the foreign money into -- you