baio. >> i put my name in the hot. >> chochi comes in. >> chochi is inflationary. >> what a heck of the last 12 hours it's been. the way the market looked last night and the way it looks now. >> we should do this every month. >> can we do it again? do-over? welcome to this post election day edition of "power lunch." we will look at the vote, aftermath and more importantly, what happens now. can donald trump really deliver on all the big league promises he's made? with us for the entire show the legendary jack welch. we have so much to ask jack, including the number one piece of advice he would give president elect trump. punch your vote for "power lunch." we begin right now. welcome to "power lunch." we are going to break down the

pillars of the future trump economy. key themes around which mr. trump crafted his victory, jobs, taxes, health care, immigration, energy and trade. you'll hear from some of the nation's most outspoken ceos. plus instant market analysis. it is jam-packed two hours. extra strap on your seat belts because "power lunch" starts right now. welcome to "power lunch." i'm melissa lee. let's look at the dramatic reversal in stocks. considering where we were in the overnight session, the dow jones industrial average is higher by about 1,000 points. up by 1%. s&p 500, 2158. higher by almost 1%. as for the 10-year, we are seeing a dramatic sell-off with the yields on the 10-year going above 2% for the first time since january. ditto for the 30-year yield.

2.015%. as for some of the sectors benefitting under a trump victory, we are already seeing biotechs getting marked up dramatically in today's session, up by more than 8% on the notion that drug pricing might not be there as they would have been under a president clinton. look at the companies that are thought to be benefitting or will benefit from an infrastructure spending plan. united rentals up 14%. neff corp up 8%, all nonresidential construction companies. energy picture. mr. trump favors fossil fuels. he favors coal, etf that tracks coal higher by 12%. solar stocks down 11%. >> and here for the two hours of "power lunch" former bench e chairman, and mine, too, jack welch. great to have you with us. we are going to get to everything today, including what

you see as the seventh pillar and critical to raise, and that is regulation. not just regarding energy but other things, as well. we'll get to that, how to build a team, who you might like to see on his team. let me begin with a broad sort of themeatic. what do you see and the risks? >> when you've got everybody lined up, senate and house and you've got the presidency, you have an awesome responsibility. there is no one else to point the finger at. you've got to get a team together -- you've got to keep the spirit we had in the last three speeches. his last night, mrs. clinton this morning and the president an hour ago. those themes if we can keep that glue together for a period, which is not a high probability, but over the time if we can do that, his economic plan, the

opportunities are unlimited. you look at lower taxes. you look at job creation. we are stuck. we have been stuck in a terri e terrible, overregulated economy for eight years. stuck. business stinks. and the possibilities are unshackling it. >> it's not just energy. that was one carl icahn mentioned. >> 280,000 people. 40,000 full time dealing with regulations. imagine 1-7 employees tied up playing with bureaucrats across the table, to be sure the ts are crossed and the is are dotted. >> they call that a file-ready cabinet in washington. when you're looking to build a

team, donald trump is not known having a wide circle. he tends to have a small close-knit group. the men and women he selects for this cabinet will be massively important. what would you look for? not the people but the quality? the characteristics. >> i would forget every fight i had in this primary and then general election. i would think of who were the best players i ran into? who were the guys that i had the most respect for? the lady i had the most respect for? who were they? when i took over ge, it was a century ago, but when i did that we had the crazy run-off who is going to win? i had two people come in and hand me their resignation. i said what the hell is this? >> your competitors? >> yes. what the hell is this?

well, we were supporting the other guys. i said, tear it up. i don't want to do that. i love you. now we've got to win out there. so you can't have grudges in this game. you need talent. we will win with the best people. >> my friends know i am completely obsessed with "hamilton." there is a line, george washington speaks to hamilton, says winning is easy, son, right?ing is harder. >> no question. >> he's got to do it now. he owns it now. >> especially with all three branches under control of the republicans. it's all on them. >> absolutely. they've got a chance to do it. his message from the first day i liked. for two hours giving my pitch around his points. i was concerned up and down

about the messenger. because every time i lurched forward in support, i'd lose the messenger. he'd do some wacky thing. i thought wacky turns out for him. >> in terms of the impact on a company like a general electric, a multinational industrial kind of company, how do you start to think about the impacts of a trump presidency? do you first think about the trade many maimplications which be a negative for ge or benefits to the energy industry? as well as lower corporate taxes and possible repatriation holiday? >> all of those. >> a net positive, a net negative? >> tyrell, when we were in the make-up room, you gave me a quote from somebody that was on earlier. that is so on. >> it was nelson peltz quoting the "atlantic" magazine where he

said the media took donald trump literally, but not seriously. his supporters took him seriously, but not literally. and that feels to me as good a summation of what just happened. >> i thought it was fabulous. he's going to take care of the bad apples and get them out of here. he's not going to grab 11 million. he's not going to stop trade. he's going to make better trade deals. >> to that point, jack, this morning there are people who are sobbing and there are people who are euphoric. >> my daughter. >> the expectations were so not for this. the emotions are incredible. to the people sobbing, is it really going to be as bad as they think? to the people who are euphoric, is it going to be as good as you think? >> no. no. it's going to come in some equalibrium. i think that quote captures the

whole story. he's not going to shut down trade. he's going to get a better deal on ttp. this guy is a deal maker. and every time he sees somebody, whoa, whoa, let's see what we can do here. >> i was among a few hundred rabid supporters in ohio. based across the country and people i talk to doesn't matter the republicans have the trifecta. people are angry and they want action. they don't want republican action or democratic action. they want something done. >> they weigh the costs of what they saw in mrs. clinton against the possibilities and the chance and gamble of mr. trump, and they were so fed up and feel their american dream so threatened that they said, i

want to take a gamble now. >> he's different. look, he had outreach to the black community. what republican has done that? he used the perfect line, take a chance. can't be worse. it's silly talk, but in the end, people grab that. >> perfect psychological calculus. right on it when he poses it that way. simple message. >> very simple. >> we've got another 110 minutes with you, jack. we don't want to go all through it. >>. >> we've got a news alert from the bond market. 10-year notes up in the bond market. yields backing up. >> absolutely. we had 23 billion brand-new bouncing baby 10s hit the street. they kept hitting the street and hitting the street because there wasn't a whole lot of demand. i gave this auction a d-minus and maybe i was being kind.

the yield at auction was 2.02. that was basically a half a basis point higher than what i saw the high yield which obviously kept going up as i see 2.04% on the old guy. didn't price well. 2.22% bid to cover the worst since march '09. 52.5 for indirect. that was the lightest since january 2015. the only mildly respectable number was a little over 8% on direct. we had weaker ones lately. the 10 auction average is 10%. gabe it a d-minus. as i continue to look at the screen, two things run into my brain. one is pay very close attention to all the tops we took out before we hit that bottom in july, that historic double bottom. remember, we closed the 10-year at 2.27 last year. i think that's odds-on favorite as to where we are going to be somewhere in december when we close. maybe the biggest issue as i see, a low in the dow and a high

in the dow and 183 points. reminds me so much of brexit. all the people that have all the degrees were so wrong, it is unbelievable. or as maybe the president-elect would say, huge. >> back to you. >> would do we think is happening here? is it too early to say bond market's testing donald trump because of the talk how much he is going to spend? >> i think the bond market is testing the federal reserve saying just because of this, janet yellen, you better raise rates in december. this is not a political -- >> couldn't go weak in the knees. >> i think that's all part of it. here is the issue i see. we spent years and years with this foe set of variables where you didn't know where markets were markets, were they priced right or wrong? we know there's three or four issues that are a head wind of the economy, regulations. i agree with mr. icahn. it's not that you don't need regulations, you don't need a

skyscraper on top of the ones that work. with regard to affordable care act, a lot of people need health care. a lot of people are shut out of health care. and taxes, corporate taxes, individual taxes. that alone, if we get action there, trunk is going to get these things done just to prove he can. i think the market's giving him the benefit of the doubt on that. rates are going up for all the reasons we used to see analysts fib about in 2011 -- >> you think the economy will get better? >> yes! i said all along, it doesn't take a lot. we have to take our own foot off our own economy and see what it can do the good old fashioned way, without being managed by brussels or d.c. >> we saw a turnaround in the dixi. we saw flight into yen and franc.

so the dix is the highest level. >> if we interpret the rise in rates a suggestion the economy is going to get better and not about fear of inflation. >> rick, thank you. we are drilling down on one of the biggest pillars of the trump economy. that would be energy. our next guest says under president trump, we could chief energy independence by 2022. harold hamm stops by. ♪ ♪ ♪

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welcome back. donald trump says that he is pro oil and gas drilling, but does that alone ease any stress for an oil and gas ceo? let's ask one. harold hamm of continental resources joins us now. welcome. we've got jack welch with us, as well. have you been offered the secretary of energy job or at least has it been floated to you? if it was, would you accept it? >> well, we haven't had that conversation. that conversation hadn't come about. let me tell you, i've got a full time job at continental, trying

to do the best i can with that. >> that is a bit of a nonanswer answer, sir. >> like i say, that conversation hadn't been held. >> you wouldn't want it? seriously? >> i'm flattered that would be suggested even. certainly, that's a very important position. >> we'll let him know you're in new york city. you're close by. you just drop over there. >> i'm here in new york. had a great night. my eyes are a little red, but i'm good. i want to say hi to jack. how you doing? >> how are you? >> great. good to be on the show with you. >> is the action in the oil stocks and energy stocks -- softball, do you think it's justified? >> i tell you what. i predicted a trump rally a couple of times. i did that at the convention. certainly had one. i thought last night -- it's weird when i heard the market

was off. now those people are going to settle down and realize that this president is going to be pro business. that's what we've seen. we've got a trump rally going. we'll go into the future with that. i agree with mr. welch. this is a situation you take foot off the neck of business and people will go to work. that happened with reagan. you get rid of those overreaching regulations and let business thrive. that can happen here. >> how do you think about the impact on the energy sector? we have the commodities across the board rallying. one would have thought nat gas prices would be lower. >> what we've seen here this american energy renaissance

needs to continue. >> we can be energy-independent here in america. give us five years. we had a couple of years setback with what's gone on with low prices. prices should rally some. they're on the bottom. we've seen crude oil bounce like i said it would the second quarter of this year. we are past that point with that. we are seeing draws on inventory almost weekly. as that comes down, and we're in wintertime with natural gas. >> as the ceo of an energy company what's the first thing would you like to see donald trump do for the energy sector when he gets in office? >> there are so many of these overreaching regulations that's gone on. we call it death by a thousand cuts. that's what it was intended to do, i believe. certainly, those need to be drawn back designs on us put us

out of business. >> give an example of one of the regulations that impedes you. tell the audience how it impedes you, what it prevents you from doing that you'd like to do. >> let's take for instance just on federal lands. we don't have a lot of federal lands. federal lands permitting is almost nonexistent. it takes years sometimes to get permits. that's just one good example. of all the resources we have in this country, the estimated some $19 trillion. that equals the debt of the nation. we ought to be seeing that go forth. as we did normally ten years ago. >> isn't that only an issue now with recovery and crude prices? a year ago would you have been

saying that permitting on federal lands is nonexistent and that's a problem for us? when everybody was cutting back production because prices are so low? >> prices always impede drilling and production. that's not what kept it back. prior to that coming about, we were seeing permits take the industry, we the industry, was seeing permits take two to three years. that's totally ridiculous. if you said anything about it, it would get worse than better. that was a terrible situation. these new methane rules, we are trying to capture every ounce of gas we have out there to sell it. that's what we do. that's our business. we have clean completions just soon as the well is complete goes right in the pipeline. yet here we are, they're out there doing everything they can to impede production.

>> there's predictions about the death of solar subsidies, et cetera. do you think that would be a good thing? and there are a lot of people on the left who get angry about oil getting subsidies. if you wanted to get rid of the whole concept of crony capitalism, no subsidies for anything in the energy sector at all, would you agree with that? >> i totally agree with that. we don't have subsidies in our industry or business. we are not subsidized. nobody pays me when we drill dry hole. i drilled 17 in a row. i know. i can tell you we are not subsidized. should everything else be subsidized, wind and solar? >> that's not part of becoming energy independent by 2022, there is no place for solar in that equation? it's going to be fossil fuel based? is that your thought? >> let's get this straight here. those aren't going to go away.

the wind is not going to stop blowing because those subsidies are not out there. these companies, that was meant to get them started. that technology is up and going. all those are up and going now. it's not going to heard any of them. >> interesting. harold hamm, great to have you on this post election day. historic week it's been. thank you. >> thank you. it's good to be here with you. >> donald trump's victory setting markets on a wild ride. one set of stocks moving big time. ♪ ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities

that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20.

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hi, i'm sue herera. here is your cnbc news update. hillary clinton giving her concession speech to her supporters in new york city this morning. she says she's disappointed with the outcome, but all must now unite behind donald trump for

the good of the country. >> we must accept this result and then look to the future. donald trump is going to be our president. we owe him an open mind and the chance to lead. our constitutional democracy enshrines the peaceful transfer of power. we don't just respect that, we cherish it. >> more than 100 firefighters in new york state are battling a massive fire. the blaze broke out at the former bethlehem steel site. no word on injuries or how that fire started. high doses of statins are an effective treatment for patients with heart disease according to a new study from stanford university. patients who took higher doses of cholesterol-lowering statins were almost 10% more likely to survive than those on moderate doses. that's the news update. see you in an hour. back to you guys, michelle. thank you. donald trump's victory catching wall street off guard.

many of the big banks, brokerage houses scrambling to get out new notes in the early morning hours. many of those notes landed, where? in bob pisani's mail box. what are they saying? >> i'm cross-eyed. buy now, sell now. they are divided. deutsche bank are quite happy. they said stock market should be fine. we think the stock market sell-off will be short-lived. the apparent republican sweep is a positive for the broad market. a lot of other strategists are cautious because of his pronouncements on trade. morgan stanley, typical. we are more bearish today than yesterday because of increased uncertainty. so is jpmorgan. investors might attempt to buy into the initial market weakness. we would argue once you reduce on a potential bounce. there are plenty arguing president-elect trump should be far more constrained in his actions. while the rhetoric has been

heated, we think various business people close to donald trump will restrain some of his nondetailed threats made during the campaign. following chatter about what the fed might be doing from here. goldman had a note out. it's early to draw firm conclusions. policy uncertainty will stay elevated. some time that uncertainty may translate into a more cautious fed. goldman did lower its probability of a fed rate hike now to 60% in december from 75%. the one thing they didn't get? a 1,000 point move in the dow, down 800 to up 200. nobody had that in their notes yesterday. >> robert, thank you very much. former treasury secretary hank paulson weighed in on mr. trump's victory. "i congratulate donald trump on the election as our next president of the united states. our country emerges deeply divided, but now is the moment to mend fences and endpaj constructively to address the issues before us. donald trump will be america's president and my president. i do all i can to ensure he and

our country succeed." so who among the people you know would make a good treasury secretary? >> there are all kinds out there. >> dimon would be a great one. >> will he do it? >> that's another question. you didn't ask that. >> this is part of the problem though. there's all these amazing candidates, not just for cabinet positions but probably for president as well. we know them. we interview them. they say the same, why would i want to leave the highly lucrative private sector to go to work in washington? >> can we get theo epstein to take a job? >> he did the red sox and the cubs. >> that's the question. who wants to go down there? >> they can't get anything done.

the media is digging into your life. you're used to being the ceo, now you've got to deal with a million people going if their own direction. do you know how many federal agencies there are? i did research this weekend. the government doesn't even know. there are that many the government don't even know how many there are. >> there is one thing you never think about. if you're the ceo, they tell me like jamie dimon is, and you go down there, guess what you become immediately? a staff member. come on, boy, i want to talk to you. staff. you haven't had someone talk to you like that in 50 years. >> not just the personal life, but the job life. the phone rings, the secretary runs in. >> and everything you say and write has to be run through a bunch, through the white house. >> and the president tweeting whatever he wants. >> we need really accomplished leaders to do it.

that's the catch-22 there. you need guys and women. >> we just picked one. let's fill the job with him. >> all right. what does a trump presidency mean for the markets and what should investors do with their money? joining us lizann saunders with charles schwab. is there a message in the market's view from limit down overnight to up a percent right now? >> i think it may be an example of shoot first and ask questions and analyze later. when you look at the history of however we turn the crisis events, including past election surprises as well as other more dramatic geopolitical events. seeing this type of market reaction, we are only one day in, is not uncommon, that immediate woosh down then a pause and sigh. >> nobody predicted this though.

the shot fired lasted five seconds, then we immediately rebounded. >> maybe we should have expected an unexpected market outcome given how unexpected the election outcome was. it's funny we get this unexpected election outcome. we come with a base case what the market is likely to do and assume that is going to follow historic pattern. everything about this has been very unique. what we are seeing at least today is a unique relative to expectations market performance. >> liz ann, same question about the bond market. we chatted with rick santelli and asked what's the rise in yields about. is that the fear he is going to go crazy with the deficit and issues with spending and inflation or he's got a pro-growth agenda, therefore the economy will get better and yields have to rise? >> maybe a bit of both. i think the policies do have an inflationary bias to it. we were seeing a pick-up in traditional inflation measures

prior to this. we were seeing in traditional measures of wage growth. the atlanta fed wage tracker was running a full percentage hotter than hourly earnings. we are seeing the seeds of potential inflation scare. probably not an inflation problem. inflation is going to be something which the fed will have to keep its eyes. which is why you did not see a big deterioration in expectations for a december rate hike. >> utilities are getting whacked. what can do you with interest-sensitive stuff you've got in your portfolio right now? >> we have had an underperform rating on two of the areas, utilities you mentioned and telecom that had been hot beds for that high yield income play by investors, and had a message out there to investors that's where you were unquestionably seeing froth in terms of valuation. our bias on the upside in terms of outperform ratings, believing that the fed was going to continue to raise interest

rates, but also on technology, at this point, we are pretty happy with the binary nature of those sector regulations. >> you've got government work. would you take a job in the government? we are talking about how onerous and hateful the process would be. would you consider it? >> i don't think so. not as a paid member of the government. my involvement was i 0 served on president bush's bipartisan tax reform commission, not a tax expert but representing the outside world of tax geeks. it was an incredibly instructive and interesting process to go through. i would consider serving in that manner, but to become a card carrying member of the government? that's not in the cards. >> liz ann, we are going to ask all our guests. what would be the first thing you want to see the president do? >> i'd like to see a

continuation of what we've seen, not only from the president-elect but current president and hillary clinton, which is being conciliatory. trying to band together. it's one day, it's one speech from each of them so far, but i hope to see that message continue. i think we need unity after such a bitterly, bitterly, ugly election season. >> unity and civility was the hallmark today. good to see you. thanks, guys. dom chu with the biggest post election price swings. >> talking about historic unprecedented moves. some assets made their own unprecedented moves. we'll show you three charts on a macro level that are just as impressive.

♪ guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market. kid's 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 don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. now that fedex has helped us we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job.

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awaiting for senator mitch mcconnell to come out and take the podium, as well. one of the highest ranking senators in the united states expected to make comments on the election. if he makes any headlines of note, we will bring them to you. >> he's the majority leader. we want to hear how he plans to work with donald trump at this point. that's going to be significant. the last 24 hours, you might have heard, have been a wild ride for the stock market and futures market. dom chu is keeping an eye on the biggest price swings that directly followed the election. we are trying to figure out what happened. please take us through the map. >> if you take a look at charts, you talked about that massive run-up in dow futures. let's take to you the macro asset classes. first off, you heard about the massive move in the peso. let's put it in chart format to see how massive the move was. that massive spike higher in the value of the dollar against the

peso means on a historic level we hit the lowest level of the peso against the u.s. dollar. a massive move for that particular currency all because of that rhetoric around mexico and donald trump. on the interest rate side of things, you mentioned it before, utilities, telecom stocks. liz ann sonders, michelle caruso-cabrera weighing in on those moves. we got down to 1.82 up to 2.09 and hovering and 2.05. what looked like a massive bid in treasuries fizzled out. gold prices. all that safe haven buying pushing up the prices of gold. $1,340 an ounce back down to $1,274. >> i want to see off that mexican peso chart. take a look at the etf that tracks mexican equities. this had a good week going into

the election. pulling back down 9% in another mexico-related trade. look at shares of kansas city southern. that's the railroad that has a lot of north/south rail routes. that is also being smacked today on the thought perhaps trade will be curtailed under a president trump. still ahead, manufacturing and trade. two more pillars of the trump economy. ahead of the national association of manufacturers sending a letter to the president-elect. what did he tell him? he'll tell us next live. carlos gutierrez on trump's plans for trade. "power lunch" back in two. what's critical thinking like? a basketball costs $14. what's team spirit worth?

(cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

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points for his incoming administration. joining us to talk about the future of the presidency is ceo of national association of manufacturers who earlier today sent a letter signed by over 1,000 ceos to the president-elect, which included an infrastructure proposal as well as promise to work together and help reunite the country after this devisive election. thank you for joining us. >> good to see you. >> not everybody has the ability to read the list, the proposal for infrastructure what's the key points for somebody who's watching right now about what would you like to see happen on that front? >> the key point is we need a significant investment in infrastructure to get our economy moving again. the letter you mentioned was signed by over 1,100 ceos from companies of all sizes in all sectors, all across the country. we wanted to send a message that the business community wants to help our nation heal, and we believe that we can be helpful in providing reconciliation for

a country that has seen a pretty difficult election season. on the policy front, infrastructure is a great way to start that. >> those are all very nice words, but let's get to the question now. what would you like to see happen? >> to see a spending plan. >> that has what? >> one of the guests you spoke to previously, you asked what do you want to see as the first thing. we want to see a comprehensive economic development strategy that includes several different points. infrastructure being one of them. tax reform regulatory reform, you heard about that from harold ham a few minutes ago and a commitment to expanding our energy resources here in this country. infrastructure itself, we have literally thousands of miles of roads, tens of thousands of miles of roads, thousands of bridges that need repair, plus, we have a significant need for additional roads and bridges and ports and airports. >> everybody is so aware of all that. do you want tariffs? manufacturers often want

protectionist measures so that way they can be more competitive compared to foreign countries. >> i think you just pivoted from infrastructure. so we -- >> it is a national -- you are the national association of manufacturers, right, so that's going to be one of the questions. >> sure. so obviously we want to be able to access more conservativen sys and that's an issue we have to educate the general public on a little better. do a better job at that. we want to reach the 95% of customers who are located outside of the united states so we can sell our products to those customers. that's a way to build communities. >> let's talk about bringing jobs back. the president elect said he wants to bring manufacturing jobs back thjob s back. which percentage of jobs have left because of, quote, bad trade deals or what percentage have nothing to do with trade

deals? >> i think our biggest challenge is to grow the manufacturing economy here at home, a different way of saying that, i think. the way to do that is to create that competitive or pardon me that strategic plan for competition that would include a focus on tax reform that reduces corporate tax rates, that makes sure that small and medium sized businesses are not left behind, so that we can reduce the cost of doing business here in the united states. that strategy would also involve reforming our regulatory structure, reducing red tape, here in this country, rethinking -- >> it all sounds good, sorry to cut you off, we're slow on time, it is brian sullivan. i'm going to ask you about something which is probably the dirty little secret, though, of manufacturing, which is that america -- >> i'm interested in hearing this. >> americans are price obsessed. do you agree with that? we're price obsessed? >> i think everybody wants to make sure -- >> make a deal. here is the issue. there never has been a country

in the wrld that can pay high wages and produce low value goods. how much of this and the manufacturing renaissance we're talking about ultimately has nothing to do with bc but does fall on the back of the u.s. consumer who at some point will have to make the decision? are they willing to pay up a little more to keep their neighbor employed. >> i don't think this is a binary choice but i appreciate the question. what we need to do in this country is we need to enhance and create the environment, to be able to expand manufacturing that we do quite well in this country, that pays significant wages, significantly higher wages than other areas of the economy. and create more of an environment to invest here at home. there is nothing -- there is nothing that is -- that prohibits us from doing that other than our current policies which we need to change. that's why what i think the american people were saying very

loudly and clearly, they want to see a change in the way that we treat business here in this country, that we create -- that we treat those who want to invest in america and who want to create jobs here at home, and that's what we're all about at the nam, that's why we produced our competing to win document, and our infrastructure proposal that you just noted. >> sir, thanks so much for joining us on this day. we appreciate it. >> thank you. >> let's turn to commerce and trade. joining us is former commerce secretary carlos gutierrez. good to have you here. >> thank you. good to be here. >> would you work for donald trump? you backed clinton. >> no. >> why not? >> i don't agree with his policies. i'm a republican and i did not support him. you know, on one hand there are all the character things. let's put those to the side. the idea of, you know, declaring war on trade and declaring war on immigration, i think those are the two worst ideas i've heard in a long time. >> you're not willing to erase

the black board, say, okay, we have a new president, let's look forward, this is a man who is going to need good people and good health and if i could help him i would do that. you can't say that right now. >> no, look, if i can help my country, of course, i will help my country. and if i'm asked for advice, of course i would advise, but we got to get off this thing. what got him elected is not going to make him a good performer. and he promised things like -- >> what do you think got him elected? >> demagoguery, populism, we're going to bring jobs back. what does that mean? we're going to bring textile jobs back? we should be talking about bringing new jobs here. innovation, new businesses, startups. bringing foreign companies in. letting u.s. companies go overseas. that's the free market. but when you start talking about bringing jobs back, the way he criticized ford motor company for having plants overseas, those plants are to serve

consumers overseas. it is either very cynical or betrays any knowledge of how the world works. >> jack welsh, want to jump in? >> no, but i don't think in any way -- back to your statement again, literally versus seriously -- >> that's what i was going to ask you. do you take him literally on trade? >> i think that's a good question. i don't think we should because the proposals are so aggressive. but he's got to deliver something. his whole campaign was on trade and build a wall. he's got to do something. in the meantime, that will create disruption. for example. >> hold on one second. we have to take a commercial break. we'll let you finish your thought right after this break. don't move. 's with me? i'm in. i'm in. i'm in. i'm in. ♪ ♪

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welcome back to "power lunch." we're rejoined by carlos gutierrez. i'm going to push back against you. president obama sounded more conciliatory today than you, a republican sound today when it comes to donald trump. >> well, look, i don't have the need to be diplomatic at this

point. donald trump will be my president. and i'll do everything i can to make sure he's successful. i'm just saying that as we speak, china is building roads, going down to vietnam, laos, cambodia, they're creating a regional block in asia, and we're gaze over tpp. that's bad for our economy -- shut out of asia if we don't get out of tpp. you would think a republican president for my party would make tpp his number one priority. so these are the things that we're going to waste time, it is going to cost us growth. >> the democrats did not like tpp either. i'm not sure -- i'm not sure anybody knows what's in it given it is multiple thousands of pages long anyway. >> that's true. i'll tell you what it is. it is a trade agreement with countries in asia with whom we don't have an agreement today. we only have korea, singapore,

australia. that's not enough. we are woefully underrepresented in asia. unless we have tpp, our companies will be shut out. essentially asia will be china's regional block. so president obama, by the way, is supporting tpp. >> another issue with president obama, something you're very involved with, sir, the new cuba policy. i think it costs hillary clinton florida. what do you think? >> i'm not sure about that. i still haven't seen the cube be american vote in florida. but the -- it would be a shame to all of a sudden just on a piece of paper sign and then close down embassies, close down flights, close down everything built over the last two years. we started a process of normalization with a neighbor, with whom we have been at odds for 58 years, to go back to "cold war policy, i don't want to think about going back.

i'd like to think about the future. i'd like to think about a vision of where we're going. but everything i hear is back. >> mr. secretary, we have to leave it there because senator mitch mcconnell is getting ready to speak. actually getting ready to drink. that's water. we think. he is from kentucky. senator mitch mcconnell. >> before we get started, one parochial matter. kentucky had the unfortunate distinction until yesterday of being the only state in the south with a democratic legislative body. that changed dramatically yesterday as the republicans in the bluegrass state took the state house by defeating 17 democrats, went from 47 up to 64. had been almost as long as the -- had been since the cubs won the world series. 95 years of continuous

democratic control. so that only added a little more happiness to my evening. to more current and national matters, senator schumer called yesterday and offered his cooperation and i said, certainly what i intended to do and we talked again today. and that's still the view of both of us that we want to work together and see what we can accomplish for the american people. not only in the lame duck, but beginning next year. also, had a chance to talk to president, the vice president, of both of whom called to president elect trump, and to vice president elect pence, all today. not only just offering congratulations where appropriate, but in the case of the president talked about

wrapping up business this year. i'm really proud of the races we won. look across the country, as all of you know, we had a lot of exposure, 24 of us up, only ten of our democrat friends. in a day when american people clearly were expressing themselves for major change, in the vote for president, it is noteworthy that only one or maybe two senate incumbents were defeated. so i think an appropriate way to look at the senate races, 18 of the senate candidates ran ahead of the presidential candidate in other races, somewhat behind, kind of a mixed picture. but i think in a day when people were voting for change, they didn't -- they really wanted to change the republican senate, which i'm proud of. and, of course, many of our

members actually had bipartisan accomplishments. >> we have been listening to senator mitch mcconnell, senate majority leader, the conciliatory tone we heard all the way from vice president elect donald trump, all the way to president obama today. we're taking a look at the markets. because we're continuing this extraordinary swing, this turn around we saw from the overnight session. the dow is higher by more than a thousand points from where we were overnight. we're seeing veritable rally in the dow jones industrial average, close to session highs, about ten points off. higher by more than 1%. financials surging higher too. these leaders, the thought is that perhaps they'll escape more regulation, maybe regulation will be disbanded and certainly the bureaucracy surrounding regional banks in particular could be alleviated and we're seeing that group higher by 5. >> it is possible dodd frank goes away. >> it is possible, yes.

>> and the volcker rule goes away. >> a lot of regulation. >> cross trading comes back. this could be -- >> cpmp. >> my favorite institution. >> civvy. >> which constrained so many institutions from anything. >> banks doing well because interest rates are higher. >> couple that with the huge rise in rates and take the tlt, the long bond, down 4%. this is a massive move in the bond market. the highest levels we have seen since january. massive move helping the financials today. >> with us for this hour of power, jack welsh of general electric with susie welsh. they know each other. both are best-selling authors as well. i want to go back to team building. and that is really one of the first orders of business here as the transition takes place. he has to build a cabinet. there will be lots of posts within the regulatory apparatus

that are going to ned to be filled. do you now -- you too on this, jack, do you need a team of rivals to borrow doris kearns goodwin book. how important is it to have some people who talk to him and disagree with him? argue? >> it is incredibly important. and i think that the complicating factor is that he, as we saw in the primary and the general election, he's a little thin skinned. so surrounding himself with people who are disagreeing with him may be against, not in his comfort zone, would be a great discipline for him to adopt. and i would suggest that for first trips he makes is out to silicon valley. he was a big cry out there. but now he's in power. now he's the boss. and now he's won. and i think he should go back out there and see who will talk to him now. >> recruit? >> if he could find somebody to come out. the voice of innovation, the voice of technology somewhere near him and around him. >> i don't know if it is

related. but the data desk just sent down, amazon is down, apple is off by more than -- >> all companies he targeted in the past. >> you have ceos of these companies coming out and talking about him in strong terms, you know, as if he's a very bad person. he needs to go mend some fences with them because they are important to the economy. >> how much did you value the people that would argue with you, who would take you on? did you have them? i assume you did. >> several of them. but i think what he needs now is he needs a team that buys into where he's going. he doesn't need a lot of contention right now. he's got to get things done in the first 100 days and needs a cabinet around him that buys in, here's where we're going, here's how we get there, i knead you all on the bus. we're going. and he doesn't need a lot of arguing in the first 90 days. >> you know, jack, i don't want

to steal any of the market thunder today, i'm a thunder stealer by nature. it seems like -- i want to get your stock market views. seems like the market is acting crazy today. what i mean by that is that we're looking at all these things trump said, coal, yes, and they're selling and buying and selling and buying. 535 other men and women in government underreacting? >> totally. lo look. >> i think without question everyone is picking and

choosing, that's the game. >> got to be something else because 24 hours ago he had the same policies, we knew he wanted to cut corporate taxes, we knew a number of the policies and yet nobody bought into it. >> it was just in the period where the stock market went crazy, was the period where the election was like that. >> seem to be acting like trump is going to come in as an emperor and make decisions that -- you got to go -- even republicans have democrat issues. >> because of what he said in speeches and tweeted out, you don't have any -- >> i have a bunch of analysts sitting at the desk, amending stocks every morning. now they have some data to jump on this one and to trade, to trade. that's all it is. and these guys get paid on trade. >> i think one of the things that stood out to me in his

speech last night is how much time he spent relatively talking about infrastructure. i think that helps the market. they see spending coming. they see building coming. they see jobs coming and growth c coming as a result of that. >> people make fun of the wall. suddenly the wall today became jobs. you see the stocks going up today with the infrastructure. and i think maybe -- there is volatility, overarching fence is that it is go to be good for business. you compare to last night, what you're seeing last night is just shock. >> across bronx -- >> i know. >> jfk. >> you love those potholes. >> you don't realize how bad

regulation and this uncertainty over the last couple of years has put a weight -- it is incredible. this administration has a new reg every morning. >> my favorite regulation, in the state of massachusetts, i believe it is a regulation that home day-care centers, children have to brush their teeth after lunch. okay. this is a regulation on the books. it is not complied with all the time, but there probably compliance officers part of their job is making sure children in day-care centers brush their teeth after lunch. >> remember my favorite martian, we'll do a new show, my favorite regulation. we'll dive into something as nine. >> reg of the day. >> eliminated. >> don't move. coming up, we're going to talk to one of donald trump's economic advisers about what we can expect from the trump administration. and the one stock that is falling today, that might not expect. "power lunch" will be right back.

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welcome back to "power lunch." i'm michelle caruso-cabrera. we're tracking an incredible turn around in stocks hitting session highs just moments ago. take a look. dow higher, a gain of more than 1%. stocks are rallying, gains of more than 5% for all of the big defense sectors. northrop grumman, raytheon, lockheed. look at this, smith & wesson

shares and also sturm ruger falling sharply. remember, the gun stocks, there is no need for panic buying of guns. under hillary clinton administration, there were fears of more gun regulation. drawing gun sales forward to buy ahead of her election. >> another stock, this goes to our regulatory discussion is transcanada. that stock is up. the parent company of the keystone xl pipeline, which officially got the ax last year. the stock up perhaps on thoughts that not only president trump who does not, by the way, let us remind everybody single-handedly write, make and sign laws himself, but might get the help of a republican controlled congress as well. >> we're following donald trump's historic election and

now the attention turns to the economy. andy, great to have you with us. i would think that the repeal of the aca would be among the top things. how feasible is that? there is some thinking that now that you offered it to workers, you can't just repeal it. you can't just say you have this benefit and then you don't. >> look, the aca has to go and go quickly. it is a -- it increases the cost of employing people along with the number of the other regulations you and jack have been discussing. and it takes discretionary income away from consumers. we're having a recession in the restaurant industry this year. there is research showing us because people who have increased health insurance premiums are about 47% less likely to eat in a restaurant than they were prior to the increase. >> not the impact on the employees, the consumers. >> we really need to -- and that, by the way, was based on 2% increase in premiums in 15 and 7% last year.

not the 25 that is coming next year. which could be a disaster. we can repeal and replace it. we got medicare, medicaid for people that are living in poverty, for low income people. people that have jobs and are wealthy can afford health insurance. and have health insurance. we need a solution for people in the middle, working class americans and middle class americans that don't have insurance through their employer. you can do that with incentives, we need to do tax deductions or tax credits for people that can't take advantage of the deductions so they got something to spend. and now incentivize competition among ensurers it get their business. if we can use incentives and competition to drive that health care market, we will have a solution, bills introduced that would do that and we need to pass laws. >> we talked about a national ma market. the risk pool is very small. it is constrained. if you were able to buy across state lines, national markets, that could lower prices. >> you absolutely have to have a national market, people can

advertise the way drug companies advertise now, you're advertising for drugs. it would be a huge benefit to the market. and really the idea is you really need competition. this government money you think just doesn't work. ask the veterans, people with ma medicaid with terrible insurance. there are things we can do, we need to get them done and this is obamacare. >> you think veterans with rather go to the private marketplace or get it from the va? >> i think they would like a better managed system. i think you can improve the quality of care they get and reduce the price they pay. which is what we -- competition reduces prices and improves quality. >> we have an example to some degree, medicare advantage and private market solutions offered for people. >> it doesn't mean the government has to get out of health care. there are things, you can stay on your policy, we need to deal with people that have

pre-existing conditions. i'm not saying they need to be out completely. we have a role if regulation. but we have so many regulations. jack was talking -- it is killing us. >> let me ask both of you this. we say i'm going to create jobs, everybody, all politicians. not picking on anyone. can you really create a job? does the job create itself? don't most jobs have to create for themselves? >> the government can't create jobs because it is working with taxpayer dollars. >> i would argue they're the ones that can because they stay -- sullivan, he's going to do this. i'm not bringing revenue in. >> the only way to hire him is if you have tax dollars that were created by legitimate businesses. what you really need are people that take risks. you need somebody to say i'm going to invest my money, invest my time, my life, making -- >> i'm saying all politicians create a job. >> i'm telling you how they do it. you take the risk, make the investment, spend the time and if you're successful, you need

other people to service that business. >> change compared to do what they were 24 hours ago? >> we're a franchise. we have a lot of small businesses that work for -- they don't work for our company, but with our company. i got to tell you, i feel so much better about their lives, about whether they'll be able to borrow money from community banks, regulations coming down from the department of labor to try and increase their overtime pay for their general managers. i feel better about what is going to happen with this joint employer standard, which is going to destroy the franchise business model. there are so many elements, so many things out in now that are so much brighter this morning than yesterday morning. >> wow. you know -- >> happy music right now. >> the conventional wisdom from across all these economists, this is going to be a disaster and the markets belies that and everything else. >> conventional wisdom is wrong about pretty much everything. somebody is like we're seeing

the death of the democratic party. >> we're seeing the death of political experts. >> the pundits. >> watch for trump to bring business people in. >> have you been asked. >> i would be honored to serve in a trump administration, but he was just elected yesterday. so maybe a little premature to talk about who will be in it. but he'll have business people. >> you bring the hamburgers. >> i'll bring the burgers, you bring the fries. >> thank you. >> a number of stocks and sectors making big moves on mr. trump's victory. plus, trump has been such a critic of janet yellen, and he's been critical of the fed generally. should yellen just submit resignation. we'll discuss that.

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that stock taking a hit. they have a huge business in mexico. a lot of concern about a trade war. import taxes, hurting train businesses between the two countries. we also want to call your attention to arch coal, it is rallying today. trump saying he supports the -- the last remaining major coal company that is still publicly traded. >> most of them died under the obama administration. >> we're seeing oil inching higher. this despite the move higher in the dollar index. we go live to the nymex for the clo closing trades. should janet yellen stick around and work for him or just resign? "power lunch" will be right back. ♪ ♪

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had a chance to invite him to come to the white house tomorrow to talk about making sure that there is a successful transition between our presidencies. >> on wall street, goldman sachs elevating 84 employees to its prestigious partner class. the new group is six more than the prior class, announced in 2014. the latest induction brings the total number to 484 or 1.4% of the total workforce. go pro has recalled all 2500 units of its karma drones after 16 days on the market. the company says a small number of the drones lost power during operation, leading to that recall. and new jersey has seized power in atlantic city, taking control of the assets and the major decision-making power. that city is half a billion dollars in debt. the state can now sell assets including the former baker field airport and that city's much coveted water utility. that's the news update at this hour. back to you. >> sue, thank you. oil markets closing for the

day. let's get to jackie deangelis at the nymex. trump trumps the stronger dollar. >> that's right. probably the gains are a little muted because of that stronger dollar. but we are over $45 a barrel. that's a positive sign here. the oil markets today are looking at the equity markets and this could be a situation where we have increased growth prospect and there is more demand for oil. that's where the boost is coming from today. saw that knee jerk reaction last night, but the consensus from those i spoke to is his policies will be positive for crude oil prices and there may be more supply coming online which will push crude lower. shouldn't really necessarily be a fear, the market will regulate itself in the same way production stopped when we hit 26 last time. if crude oil goes lower, product will stop until it balances out. there is more pressure on opec now.

that puts us in a good position here in the united states. back to you. >> jackie, thank you. president elect donald trump has been an outspoken critic from time to time of the fed and the fed chair janet yellen. should miss yellen simply resign? steve liesman? >> it is a three-part question. does she resign herself, does she ask to resign or does donald trump, the president elect, and the fed chair find a way to co-exist. harsh words saying yellen should be ashamed of how political the fed is. >> i believe the fed is very political. it has become very political. like many other groups in this country. beyond anything i would have thought possible. >> most said she's unlikely to resign because she'll make a stand for the fed's independence. she understands politics is part of the game of being fed chair, and would be concerned about the

precedent. the fed has few things in congress. some suggest the situation could be intolerable if trump continues his criticism in office. that's true if yellen raises rates. rates she declined to raise for -- because of the election. yellen's term expires february 2018, tough for trump to nominate, gain senate approval, for a new fed chair, much before that. the question is whether the populist trump is the one who becomes president or the pragmatic. a lot of people say there is no point in picking a fight with yellen, because there are very few presidents if ever that have come into office and wanted the fed to raise rates. >> what are you guessing? >> he won on a promise it drain the swamp. and he's identified her as something that -- very political. has a lot of battles to fight. this is one that he wants. i think he's disagreeing with me. >> i think he ought to leave

this alone. i think he ought to leave her in the job. as you say -- >> why? other models are more important? >> she's not going to do anything crazy. >> it is only another year. when does the term end? >> 2018. >> he'll nominate her successor next year. >> he could look magnanimous, just hold out -- >> he could look presidential. i'm not going to play politics with that job. that is supposed to be an independent regulatory. >> here is what people told me, this is a potential bellwether for how donald trump handles relationships with people who were the subject of the harsh criticism that was the cornerstone of the campaign. does he reach out to her? do they just not talk at all? presidents and fed chairs meet, as do presidents -- fed chairs

and treasury secretaries. something they do often. a working relationship is something that -- >> one thing that began the hour last hour. you said he needs to forget about the battles and the people who he got ticked off -- >> no grudges. >> he has to reach out to her somewhere, given the words that have been said. >> i think they both have to come across the line. this is a one way street. not going to be a -- to go around and say, i love all of you, okay. they got to -- he dealt with ted cruz and ted cruz was out campaigning for him. >> right. there is no consequence at all. he can sit there and say the fed is political and then do what? nothing? >> she'll raise rates. you know that. it stinks. it stinks. that's it. >> i don't agree with that, no. it is a 2% economy. >> it stinks. >> relative to what? we're not sure about that. you're sure of that.

and i guess we'll find out if there is a way to do better, but -- >> what about the role of david malpass, influential within the campaign, who at one point was talked about running the federal reserve in previous -- >> with john taylor. >> an advocate of raising rates. >> we tried pin john taylor down this morning. he did not wish to be pinned in part because perhaps he's thinking about how his words might come back to haunt him if -- >> he did say he thought rates should be in a year. >> in a year. it has shown it should be higher now, which he would not say. >> absolutely. >> so the question becomes does he go on a -- if you want to take a look. donald trump has a chance to have a fairly large -- there are two open fed governor positions, there is this position of the vice chair of banking supervision, and he gets to replace the governors of anybody who would leave in addition to that. >> and possibly, by the way, i should say three supreme court positions as well.

>> very much. very much. >> you're not the supreme court -- >> it is -- >> this administration -- >> massive impact on the -- >> fed chair, maybe a couple of fed officials, supreme court officials. >> maybe one solution, have to see what the presidential style is. you know his campaigning style, maybe it will change. one potential approach is to say, look, you're on notice during the campaign. i criticized you for being very political, and now you're on notice. we're watching for that. and find some kind of common ground. >> there are -- the thing with president in office now, he said in the hearing, who won? i won. so let's not measure this guy about how much time he jumps overboard because you didn't the last time when obama said, look,

elections have consequences. i won. >> i agree with that. which consequences. he said he likes low rates. >> i'm saying -- i'm saying in the relationship. >> okay. >> let's say we got to get both sides coming, okay. he's not going to jump over. and kiss every butt in town. >> around the dinner table, conversations like that? >> yes, usually i can edit out phrases like that, but -- >> they provide inspiration, i'm sure. >> i love the paradox. but he is a real estate developer and they love low interest rates. >> exactly. >> if the core trump is going to fight against the political trump. >> slowing this economy more. this hot economy steve keeps talking about. >> i didn't say it stinks.

>> we'll leave it there. we'll leave it there. thank you. we're leaving it there. >> thank you. >> markets close to session highs. to dom. >> there may be a debate about the economy and what is happening there, but there is no debate that we're only about 30 points away from the record close on the dow jones industrial average. about -- you see there about 256 points to the upside now. session highs. also want to call your attention to that chart there, the ishares. it is up more than 4%, best days since 2011. had four straight days worth of gains, perhaps anticipating a donald trump victory. nearly all components positive. boeing, united technology, lockheed martin, general dynamic. according to our data partners, the fourth quarter of an election year has historically been a good time for defense stocks since 1980 during the fourth quarter of an election

year the s&p 500 aerospace defense index has outperformed the s&p 500 in every single period. back over to you. >> excellent stuff there. if you haven't heard it already on cnbc, today, maybe the best week of the year for the stock market. here is the question. that's in the past. what is the market going to do for us lately? trading nation team will handle that next. what's happening here? this is my new alert system for whenever anything happens in the market. but thinkorswim already lets you create custom alerts

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-- take us to new highs. let's go to the trading nation team, boris slosberg, we spoke this morning on "squawk box," at that time the dow was lower, about 200 plus points. what is the message here in. >> what did i tell you? i said we'll go too flat and probably rally. the message is market is seeing trump as the growth president. i think this is the big takeaway today. his message yesterday was spend, spend, spend, increase demand, i think the market is seeing that very much and the stocks are just being unleashed to record highs. that's why bonds are -- yields

are just spiking so much. obviously i think he's going to juice the economy as much as possible. he wants to see 3.5, 4% gdp, massive spending, that will help the economy to grow very much faster than anybody thinks it will. >> stocks go up when earnings go up as well. sales and revenue grow up. from what he said as a candidate, are there things he said or maybe the makeup of congress that makes you convinced that either revenues, and/or earnings are going to go higher. >> it is all about revenues. it has to do with yesterday's acceptance speech where he made a very, very candid speech where he said the country is it in trouble, we need to spend a lot on infrastructure and he's got the congress in his pocket now, the single most important thing is he has all the power. i said this morning, he's like the godfather, everybody has to kiss his ring now in congress. nobody will stand in his way when he increases spending maybe by twice what we're doing now in terms of the deficit.

that will juice up the economy in the first half of next year. >> we're looking at what could be the best week for stocks this year. in terms of record highs, at it on the s&p 500? >> we think we're going at it. we continue to view that -- we're going to make up new highs in the year end. i think the message from the charts here is that you want to own risks and buy risks. and if you look at the 5% pullback we had since august, from that peak, very healthy consolidati consolidation. investors were selling their safety stocks, and accumulating more high beta in cyclical sectors. that was healthy and positive signals underneath the surface. and now along with the big overnight reversal that continued into the session today, we got industrials breaking out, and transports breaking out, financials and the banks are breaking out. >> can we do this, though, without technology, technology is, what, the biggest sector on the s&p 500 right now. we have some of the biggest

components on that sector, in that sector, really having difficulty because in the past, they have been targeted by donald trump. amazon, apple, microsoft, all trading lower. >> we're doing it with technology. technology has been one of the standout leaders here over the past few months. coming off the all time highs. these are some of the strongest stocks in the market here, just simply not going up as much as some of the other names. they're fine. they're going to continue to work. big breakouts in that sector as well. technology is working. energy is starting to turn the corner. all the right areas, melissa. yes, we think we are going higher and those are all the sectors that are going to take us higher. >> we got a bullish view on the overall stock market and technically, that's why we do it that way. boris, ari, thank you very much. for more trading nation, go to our website, tradingnation.cnbc.com. "power lunch" is back in two minutes. >> and now, the latest from

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we got a big rally on our hands now. the dow is up we got a big rally on our hands right now. the dow is up to 280 points, close to a record high. only a couple points it from it. >> down 800 yesterday and now we're talking historic highs. the dow at 18,614. dow leadership, well, it's drug stocks and all the big financials are hitting new highs. jp morgan and all the big bank stocks are at 52-week highs. are we there on the other ones? not quite. s&p 500, the old high was 2190. 20 or so points away from that but not quite.

a a and s&p midcap, 53 was the old high. that was back in august. we'll take the dow for the moment. we'll see if we can get there at the close. >> i'll toss it over to michelle. >> one of donald trump's biggest campaign promises is to roll back federal regulations on business. let's bring in the ceo of paychex. glad to have you here. your company helps smaller businesses manage things like p payroll, et cetera. is donald trump good for kbroyo customers? >> i think it is. when we took a survey, the top things were government and tax reform, and i think donald trump

is promising to improve those things. if we can reduce taxes and get investment in those small businesses, it will be a good thing for their growth and employment levels. >> is it good for your business? when you see more and more regulations, don't small businesses more and more need your kind of help, therefore? there's a little bit of regulatory capture that happens with your business, no? >> absolutely, but just the amount of change -- just change alone in regulations is good for paychex, and i think what we're going to see the next few years is a lot of change in regulations. don't forget as the fed sometimes reduces regulations, states will pick up. if the fed doesn't increase minimum wage, the state oftentimes will increase minimum wage. we may see more complexity from a state perspective than we do from the fed if they start reducing regulations. >> bottom line, do you think a better economy is part of these policies? >> lowering the corporate tax rate in particular and reducing costs to small businesses will get them to invest more and hire

more, and we're certainly hopeful it's going to improve the economy and small business outlook. >> thank you for weighing in on this historic moment. trump pulls out a win. what was the country saying in last night's election? "check please" is next as we wrap it up. now that fedex has helped us simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking.

very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce. what are you doing? getting your quarter back. fountains don't earn interest, david. you know i work at ally. i was being romantic. you know what i find romantic? a robust annual percentage yield that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water. on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.

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"time" magazine. this hits newsstands on friday. it says donald trump -- >> trump pence 2016. >> and "time" magazine three weeks ago when they had total meltdown. they had his head sort of melted away. what do you think the country was saying last night? >> political science will probably be figuring that out for decades to come. you think about the campaign hillary clinton ran. it was very pop culture campaign and jay-zee, beyonce. people said, we are living looifrz ylives you don't understand. i think these were people who

weren't going to vote for trump but they didn't want to hang with the rock stars and people said, this is not our life. you don't get it. >> i've heard virginia and wisconsin and everything else in the supreme court. everyone i talked to brought that up. when you look at polls, you wonder what the future is going to be. we need something, but clearly they don't work. >> can we finally put conventional wisdom to death, like just end it all? i never want to hear any more conventional wisdom ever again. i've had it. >> if someone comes up with a poll, i'm going to tell them what they can do with that poll. >> b orpol-o-l-e or pol-o-l-lp-? >> they were just so wrong. >> the best poll, tyler, we all know this, is a lunch counter in a local restaurant in a swing state. and just talking to people.

>> ibd has done a pretty good job the last two times. >> they got it. >> and they were the only real one that got it. >> in the l.a. times, everybody laughed -- >> plus five, plus seven. >> they were an ally. it was easy to dismiss it. >> pollsters, they're so afraid to be wrong, so they merge together. shove it in a drawer. it has to be close so no matter what happens in the end, i said it was close. >> what was the biggest opportunity and the biggest risk. i think we got to the opportunity which i think was greater. potential growth and reduction of regulations. what do you see as the biggest risk of a trump presidency? >> him scaring people. him just flying off the handle. i don't think he will, but i think it's a risk. i think the other thing on the supreme court, harry reid was talking about the nuclear

option. if the democrats play tough in these openings, we could have a nuclear option coming the other way back at harry reid. he used it to pack the washingtwas -- back the washington court. now if we end up breaking all these traditions of the senate -- >> the way things get done. >> -- it will be a very tough situation going on if we use the nuclear option in these things. >> what do you see as the biggest risk and opportunity? >> i think it's a combination of what you were saying. the possibility that he just alienates people right off the bat so nothing gets done. i think it's a careful dance right now. he did win, and he did get a mandate, and can you imagine what it feels like in trump headquarters today? the stock market is going up, and they won, and suddenly everyone want to be their friend. but you don't want to use that to alienate too many groups. >> he was so gracious last night, and you just wonder, does

he return? does he go back to the pre-win guy? >> he's gracious in a number of situations. >> i think that graciousness is one of the reasons the market turned around. >> for sure, for sure. >> without question. >> it gave people comfort. folks, we have to leave it there. susie, great to be with you. >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> how you doing? >> what a day. >> an incredible day. i'm bill griffeth. where is the selloff we heard so much about. all the averages getting a big boost today, a kmecomplete turnaround from when the limits hit their lows. the dow was up 800 points at