hospitality division, this is a great story. when i bought that resort 20 years ago, it was a has-been property, and he was the caretaker. i said, i noticed that he had ability. seven years later he got resort general manager of the year under me. okay. it is taking people and taking them to the next level. if somebody said, tillman, what do you do best? i take somebody and i take them to the next level. >> tillman, great to be with you. >> thank y'all for letting me come into your space. >> have a good time when you're here. >> thanks, guy. >> i don't know why, but it happens. "closing bell" starts right now. ♪ we can't dance again >> hey 19,000. welcome to "closing bell." i'm kelly evans of the new york stock exchange. >> we got steely dan in there. it is good when it fits. not so big on the 1980 election rerun but it is a song from 1980, might as well fit it in.

i'm mike santoli. do you hitting 19,000 today for first time ever. we will look whether it is a sell signal for investor or if there's an opportunity to make money. >> a big day. dow hit a record close five times since election day. s&p up 2.7% since trump's win, two weeks ago. only two other newly elected presidents saw a big gain following their election and they are ronald reagan and richard nixon. is it for the next four years or not? coming up. >> latest from trump tower and the president-elect's transition team and why some of the biggest names in technology may not be happy trump is taking the trans-pacific partnership trade deal off the table right now. >> plus a new report says amazon wants to live stream sports for prime members. we will break down what it could mean for espn, yahoo! twitter and others. it is a nice thought, keep it going. >> keep you pretty relaxed, that song. >> let's get to the market records. you're tracking the action of the stock exchange for us.

bertha is up. first to you, the dow is running at 19 k. >> reporter: it took a couple of bumps, but hovering towards those levels right now. if you look at some of the big gainers within the dow, it is names we've been talking about for the most part all day today. boeing is part of that list, also home depot kind of up there as well. a number of these different names in the dow kind of doing some of the heavy lifting for the index, trying to keep above that key 19,000 level. if you look at the sectors that have performed so far today, you look at some of the names. it is typically the ones you are going to talk about. maybe you will seattle bit of weakness in certain parts of the market, but overall we are seeing at least a little bit of a push back higher towards some of the interest rates in the stocks. we will see if interest rates play a part in the story as well. as for what -- at least parts of the market here showing some signs overall of life in general, kind of speaking, you are seeing new highs in some consumer-related stocks. first look at, say, ross stores, that is up there as well,

hitting fresh 52 week highs in trading today. some of the other names you see as well. also what is happening with some of the bank stocks because we're seeing a number of the regional type banks and larger money center banks making some, at least intraday highs. some backed off a little bit at this point. still though, we are seeing a little strength where we've seen them since the election in those banks and the financial. keep an eye on those. keep an eye on the consumer-related issues especially this week. remember, the consumer names on the retail side especially certain focus given this thanksgiving weekend. back to you. >> right, don. the s&p trading right at 2200, so it has a round number of its own. >> reporter: there you zblg let's get up to the nasdaq. roberta is there to talk about those new highs. >> reporter: we have a broad advance at the nasdaq. dollar tree is best performing, large cap 100, index up to better than expected earnings.

overall large cap like apple and facebook have been slack. but the big move to new highs has been driven by small-cap, that's where the action is. russell 22000 at a new record. up now a 13th straight day. it makes it the longest winning streak since 1996. chip stocks today though were also notching a new 16-year high, new highs for analog devices, texas instrument, fairly bullish on that side. on the down soid, palo alto networks down sharply after just winning guidance, cognizant technology getting a downgrade. the biotechs which we're watching as that rotation out of healthcare is really been a drag today. for the month biotech is up 9%. they haven't sat out the rally all together, kelly. >> thank you, berth ear. david joins us. >> hi, kelly.

>> and rich santelli checks in from chicago. david, the chase is on, right? how do you expect most managers the react to record highs in the market? >> you always view highs with some trepidation, especially when investor sentiment spiked to the bullish side, which i think gives at least a note of caution. but i'd want to take a step back, look at valuations on a cash flow basis. still very attractive. tax policy headed in the right direction. corporate taxes and regulation. i think that makes me want to tilt to an overweight in stocks. usa correct as you correctly pointed out, small-caps out performed large caps by three times since the november 8th election, and i think there's still great opportunity in the small/mid-cap area for investor portfolios. >> kenny, you know, we're talking about breaking through some of the round number barriers across the board. i wonder if you think that the way we're doing it, we're kind of drifting up through these

levels, says anything about whether it is kind of sustainable. do we want to see more of a burst of buying or is it to be expected in a holiday week? >> no, listen, i think part is a holiday week. i think the fact we hit a new century mark on the s&p and 19,000 on the dow, you know, speaks volumes about what investors are thinking about the future, what they're thinking about, like david just said, what presidential situate will look like and where they will find their opportunity. new highs beget new highs and that's what it feels like at the moment, that this market has room to run. certainly there are sectors you might want to look at, but overall if his economic policies, if any of it comes out to be true, i think we're set up for a great rally as we move forward. >> rick, do you think people will start to worry at all about the whole thing getting top heavy, that it has gone too far, too fast in two weeks? >> well, i personally think there's always going to be worry, and i think bull markets need a little bit of worry to motivate the shorts to recycle back into covering and buying. but all things considered, i

still contend there could be more glitter here for the equity markets. i do think that we under estimate not only the efficacy of, you know, both chambers and the president being on the same side of the aisle, i also think we're transitioning into a much more growth-friendly environment. i think for much it is unique to the u.s. i mean consider the difference between a 10-year yield and a boom year is 210 bases points. in is huge. it's been nothing but widen. the rates are actually starting to go down. the das is a good 250 points away from an all-time high. i think not only can it continue, and, yes, it is mostly unique to the u.s., i think it is going to draw in more global investors and the jny-come-latelies you have been referencing. i am quite optimistic which is making me a bit nervous. i never look at things optimistically or pessimistically. i look at them realistically, and it is hard to calibrate

where the stock market's fair value because of the last 7 1/2 years in the central banks, but looks like it has legs to me. >> david, from your seat as a portfolio manager, you know the s&p 500 since election is up just under 3%. maybe it feels like more than that because certain groups leading the way had more dramatic moves, but there's also the opportunity since the election to have underperformed a lot. where would you look to emphasize right now in terms of individual stock and sectors because of what the market has given you in the last few weeks? >> sure, michael. a couple of quick ideas. small-cap stocks, mid-cap stocks up better than 9%, which is a good sign, a harbinger for the economy. on "closing bell" in mid-august, "closing bell" asked me give me one name that will go up 50% in six months. i gave you genessee in wyoming. up 17% in three months. i think there's more up size to the regional rail company right sizing its cost and generating free cash flow. on the consumer side i have seen

a good turnaround in liberty interactive, parent group for qvc. i think there's opportunity on a valuation basis here. finally on a financial service side, good recovery in ameriprise. i think there's more legs to go. all of these stocks mind you are more in the small, mid-cap range where i think growth prospects are starting to unfold even better as we think about lower taxes, less regulation. >> meantime, kenny, talk to us about oil and the impact. i mean that was the story yesterday, today a little bit less though. how much -- how interwoven is oil with the market size here? >> oil continues to be interwoven, but all of the charter about oil -- you know, putin's comments about the pending agreement that's coming and don't worry, we are cutting production. listen, putin is happy to freeze production at the current levels because he is pumping more than he has ever pumped, as is saudi arabia. i think they can talk about it, talk about it, and even if they sign an agreement it will be

quick before one violates the agreement. i don't think oil is going much anywhere. $50, maybe. beyond that i don't see it. >> thank you, gentlemen. got to go at this point. keep watching these highs. markets continuing to climb despite the fact we still don't know who will fill a number of trump cabinet positions. eamon javers at trump tower with the latest. no hair comments from me, don't worry. >> yeah, no news here so far from donald trump on any new cabinet appointments today. we saw mr. trump leave the building and go down to the "new york times" offices and we have this sort of wild, new media moment where the "new york times" reporters and editors were live tweeting their meeting with donald trump even though it was behind closed doors, the rest of us couldn't see it. we did learn a couple of new things in the course of that meeting, one of which is that donald trump has been receiving a lot of phone calls from international leaders, but also from corporate leaders. we saw donald trump commenting he received a called from tim cook of apple and also from bill gates. at this point, he's back in the building. we've seen a lot of cummings and goings through the course of the

day. vie president-elect mike pence still in the building. we saw rudy giuliani come and go earlier, but we don't expect donald trump to remain here all that much longer this afternoon. at some point he will leave from here and head down to florida, to mar-a-lago where he is going to spend thanksgiving with his family. at this point, kelly, it is not clear we will see any big new cabinet names announced today because there's a couple of hours between now and when he leaves for florida. >> and in the void, the rally continued. it's only been a couple of weeks. >> the way we set it up, the market has been rallying despite the lack of cabinet appointments. the market is okay with inferring what might actually come when we get the appointments when it comes to economic relevant policies. >> that's a good point. >> reporter: i mean sometimes uncertainty is a good friend, even though markets often hate uncertainties. if you get those appointments you might see something the market doesn't like or people can start to chip away at them, throw mud at some of the

figures. for now it is sort of a blank slate, and in some sense there's some optimism around that. i think, you know, you will start to see the cabinet positions fill out during the course of this coming week. traditionally these transitions run, you know, all the way through christmas time by the time you get to deputy secretaries, undersecretaries and all of that. remember, there are thousands of jobs to staff up here, so they have to do the top ones now and roll through the rest of them between now and january 20th. so there is a long way to go between now and then. so this is not necessarily unexpected. >> it also seems from a trump tweet, eamon, maybe ben carson will have a roll after y'all. >> reporter: yeah, we saw the tweet. it was very encouraging from donald trump about ben carson possibly being secretary of housing and urban development. no indication ben carson accepted that job. we saw dr. carson here at trump tower earlier today. he didn't stop and talk to us. a lot of reporters shouted questions at him. he walked by and went through security. no indication that deal is done. it would seem though, because

donald trump is tweeting about it, that he would like dr. carson for that job. but at this point, still unfilled, kelly. >> eamon, thank you for now. appreciate it. out there in the frigid cold in new york. 45 minutes to go until the bell. dow is up 52 points to 19,009. pretty much highs there. >> we are, harboring around the ground numbers. when we come back jeremy siegel who has been predicting dow for sometime now, tells us where 20,000 could come before year-end. it would be a pretty good finish for the year. >> for sure. up next, president-elect trump says he will pull the plug on the tpp on his first day in office. run through the winners and losers from the withdrawal from that deal. you're watching cnbc, first in business worldwide.

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you see slight gains in major indexes but enough to cross numbers and get to record high as we get to 45 minutes before the close. >> let's check out some of the movers for you today. dollar tree among the biggest gainers on s&p. the nation's biggest dollar store chain raising fourth quarter earnings guidance.

reported better than expected third quarter earnings, and gross margins. shares up nearly 9% today. signet jewelers also rising. owner of kei and zales posted upbeat for the current quarter. fell due to dispointing number at jarod stores. signatures at 3% and retail overall having a good day. >> they are, but it is an embattled stock. it is a minor comeback compared to where it has been. meanwhile, president-elect trump vowing to pull out of the tpp in a video created and distributed last night on youtube. it was not an event open to the press. on trade, i am going to issue our notification of intent to withdraw from the trans-pacific partnership, a potential disaster for our country. instead, we will negotiate fair, bilateral trade deals that bring jobs and industry back on to american shores. >> susan li joins us with a look

at which u.s. stocks stand to win and lose the most from trump's move. hi, susan. >> yes. it was supposed to be a landmark trail deal among 12 pacific rim nations which seems to be history. let's start with the losers for the tpp's extinction and the sectors that were supposed to benefit the most. we'll start with tech and telecom, giants like at&t, facebook, they like the deal because it would have cut restrictions on sale, lower global roaming charges. next up, agriculture. it would have lowered tariffs and prices on american chicken, beef, soybeans likely increasing, sales like conagra and tyson. large manufactures like boeing also -- by the way also liking the deal, boeing is larger exporter by value and could sell their goods at competitive market rates. big pharma, the industry as a whole was on the fence about

tpp, but the market seemed to believe it would have meant longer protection for these big players. finally throw in the apparel makers, including, yes, the likes of nike. they would have gone market access and been able to ship goods home from cheaper overseas factories. let's talk about twiners from the tpp withdrawal. big tobacco was against this deal all along. it would have restricted the industry from suing foreign governments over anti-smoking legislation. carmakers, ford very vocal, a big proponent here, arguing tpp favors japanese car names instead of american ones. of course, american manufacturing jobs, they benefit because likely they'll stay home, at least in short term. kelly, back to you. >> thank you, susan. now, the tech industry has been a big advocate for tpp, the trans-pacific partnership. back in may industry groups representing companies like amazon, uber, apple and facebook, all urged presidential hopefuls the keep the deal and embrace trade as part of their platforms. >> now with the u.s. set to pull out of the deal, tech stands to face changes. more on this, we're joined by ed

li, managing member at rico. we don't think necessarily some of the big software based companies, facebook, alphabet, google, all of these as big exporters that need a trade deal to get their stuff around the world, what specifically would this deal have given tech giants? >> actually, i know we sort of tend to think of trade deals and physical goods going across borders, but facebook, google, amazon for that matter, they trade a lot of digital goods or intellectual property. as example, a youtube star in u.s. could have a big fan base in korea or mexico or sweden, and then here she is able to, you know, potentially monetize that audience by selling ads against it. the tpp allowed this to continue and go on and formalize what the rules would be and the ability to sort of bring data back and forth across different borders so you could monetize the data. that's the key part. tpp allowed for free flow of data across borders.

now it is off the table, it will be that much harder for google oral pta bet for that matter to sort of monetize all of the data across the globe, across different countries. >> team trump is saying they will be able to negotiate better bilateral deals. so is it possible, even though obviously it will take a longer period of time, there still might be -- i would imagine, by the way, that's why there's been outreach from the tech community to the president-elect. >> yeah, i mean of course you're going to want to deal with, you're going to want to negotiate with him. i think, you know, if the idea is that the trump administration wanted to take a closer look at it, they will see actually intellectual property is a big part of the u.s. economy. digital, creative works, et cetera. and that isn't protected, especially in asia, which is what tpp was trying to formalize and sort out. they want to sort of maintain dominance around it, necessary have to work out the deals, even if it ends up being sort of one-on-one deals with just japan or just korea, you know, it is within sort of u.s. corporate interests to dot for sure. >> you know, ed, one of the

takeaways to the u.s. backing away from the deal has been perhaps it is an opportunity for china. so china can step in and actually be more of a leader in this trading block. does that mean that companies like alley bauba or buy view could step in front of their u.s. counterpart in some way and put companies here at some kind of a disadvantage? >> reporter: i think it is an interesting example. i think home grown players in china, you know, they're going to want to cut their deal. china wants to cut their deals across the pacific rim, and, you know, with tpp off the table china can step in and fill the vacuum and dictate the standard, right, by which then the u.s. or any other trading partner will want to sort of negotiate, whether it is with japan or korea or other parts of the pacific rim. that's a lost opportunity unfortunately, even if the trump administration comes to the same conclusion ultimately, they're sort of, you know, they're a step behind, a beat behind. that's if china can get their thing, their pack sorted out before then. >> ed, kind of separate but

related issue, this whole onshoring concept when it comes to manufacturing base for companies like apple, is that picking up momentum as far as you can tell? >> reporter: you mean like the idea of apple bringing its manufacturing to your shores? i mean like -- >> fox con. >> reporter: fox con, that sort of thing. i think taking a closer look at those things, i don't think it will end up being a serious consideration for a company like apple to do that. you can pay $2,000 for an iphone if you want or pay $500 or $600 and participate in the larger global economy. that's where everything is headed. the other term is we have intellectual property. we have, you know, what an iphone is or sort of the apps that exist on the iphone. that's where u.s., you know, economy, the u.s. tech sector is really strong. that just hasn't -- that part of the equation hasn't really been aired out or considered in these deals. >> yeah. >> unlikely to create assembly jobs

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welcome back. you see the dow trading at 19014. that's pretty close to the high of the day, good enough for a new record. also not showing the russell 2000. it will be the 13th straight day it closed up in a row, which would be the first time in years that's happened. that's also out performing today. a lot of green even if it is a gentle rally. over to kelley on the floor. >> thank you, michael. i have special guests getting ready to ring the closing bell today, cookies for kids' cancer is here. grants for childhood cancer research. i'm on the floor with founder gretchen whit. joining us are cross by, jasmine and taber cannon. let's start with this. what can this $10 buy me for cookies for kids? >> well, it can buy you as many

cookies as you want because giving is from the heart, and so there never should be a price. >> that's a great approach. how much are you selling? >> we are selling -- >> as soon as as possible? >> yes. >> gretchen, tell us how this all started. >> sure. so in 2007 my son liam was 2 1/2 and he was diagnosed with cancer. i was completely shocked to find out that cancer is the number one disease killer of children in the u.s., and yet at the same time it receives very small amount of funding from the federal government. that just didn't seem right. like kids are our future, so why won't we invest more in treatment? >> and how much are cookies helping you because there are people with incredibly sophisticated lobbying efforts and this is a grassroots approach? >> absolutely. it was an important for me to create an organization where anybody could get involved in any level. since we have a grassroots efforts campaign, there have been 7,000 of them in all 50 states and 16 countries, but we

have large-scale events that are a little different. >> and probably require a lot more cookies. guys, how has cancer touched your lives? >> liam and i -- liam was my first best friend, and so we're really close. when he died it was very hard on me, just to have my best friend pass on. >> and so you're getting involved in this way? >> yes. >> how does it make you feel? >> it makes me feel happy that no one else will have to suffer from losing a friend, family member or their own life. >> what about you? >> my mom is a great friend of gretchen, and when liam passed away it hurt gretchen and it hurt my mom, too. so every year i have a bake sale in the hamptons, supporting kids with cancer. >> that is totally fantastic. cookies and everybody around here goes home with friends and family come thursday. i will let you get up and get ready to ring the bell and have fun do itting it. >> sounds good.

>> thank you so much. mike to you. >> amazon rising as we hear reports the company is looking into live streaming sports events for prime members. julia boorstin has the details. >> reporter: hi, mike. sources tell me amazon is in talks with the major includes the nfl, mba, as well as espn about buying rights to stream live sporting events. it was first reported yesterday in "wall street journal." the idea is a premium sports package available with amazon prime could draw more sub skriepers to the $99 a year service that includes free shipping as well as international streaming service amazon is gearing up to launch. mark mahaney tells us he don't think amazon will get big ticket sports events soon, but could get piecemeal rights to build up a platform. the main broadcast rights for mba are tied up until 2025. most nfl rights are tied up for six years and the mlb rights are tied up for the next five years.

if amazon strengthens its video offering with digital rights like the 10 nfl games twitter is streaming this season, that could make it a more formidable alternative to netflix as well as a stronger option for cord cutters and cord nevers. back to you. >> julia, it is interesting. you mentioned netflix and they've not gone in the direction of live sports and news. is there any indication this would create kind of an arm's race for these types of rights? >> reporter: well, every time there's a quarterly report, analysts ask netflix if they're interesting in moving into live sporting events. he always says no. i interviewed him recently, and he says he's just not interested in bidding on these live sports rights, in part because netflix has never done any live programming and sports rights are just so expensive. some of these big rights are tied up for many, many years. so i don't think that we should expect netflix to move into live sports because of this. amazon obviously treats its

live -- its streaming option as kind of a different thing than netflix does because it is part of prime, but it will be interesting to see what kinds of sports rights amazon does end up snapping up here. >> all right, julia. thank you. julia boorstin with the latest there. time for a cnbc news update with sue herrera. hi, sue. >> hi, kelly. here is what happening. the travel site orbitz out with a list of places the avoid over the coming weeks. using current flight booking information they put out a list of the busiest airports for the holiday, number one chicago o'hare followed by atlanta's international airport and los angeles lax. officials in michigan breaking ground ga tore a testing facility for driverless cars. the ceremony was attended by the state areas governor, rick snyder, and will be one of the first in its kind in the u.s. the center is expected to open in december of 2017. and turning to carnes that still knee a driver, kia is telling owners of sportage suv's made in

2008 and 2009 to park outside due potential fire risk. road salt can get into one of the car's computers causing rust and possibly a fire. the recall involves 72,000 cars. pokemon fans, how much is this pokemon card worth? apparently nearly $55,000. heritage auction says someone bought this card last week for that very amount. that's the news update this hour. back to you guys. >> i don't know, would you pay that much for it? >> i don't think so. i i'm wondering, is it a current thing? is it a throw-back? who is buying the cards? >> i don't know who is buying them. it is still pretty popular in certain sectors. a lot of kids moved on from it, but i never thought it would come back in the first place, but it did. >> it was the app that was such a hit. >> pokemon go. >> yeah. by the way, how cute and adorable and generous are the

little girls. >> i know. there's three of them. one for mike. >> there you go. >> i am keeping one and one for you. >> thank you, guys. i think you should send them over to kenny polcari and to art cashon and they should go to every post and i want every guy at the post to buy some cookies. >> i'm sure they will. >> thanks, guys. >> see you. >> less than a half hour to go, we have the dow, s&p and nasdaq all at records. do you 19023, close to the high of the day. dow could close above 19,000 for the first time ever. a leading trader will tell us what is coming next. hugh let packer enterprise and urban outfitters will deliver their results as soon as they hit the tape and break it down with our team of analysts. >> watch the premiere of season two of "billion dollar buyer" tonight at 10:00 p.m. eastern time. mogul is back to make big purchases from small businesses looking to grow. your insurance company

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2,202, first close above 2200. nasdaq, a 13 point gain, mike. >> less than half an hour to go before the close. we are here with matt. matt, we are lef stating up to the 19,000 mark, s&p 2200. are we stealing gains from the strong seasonal period? do you think the market is well positioned? >> you know, retail is really strong today. i think that's really the focus going forward. you know, at least through friday. we've seen the sector rotations and these grinds go higher today, you know. retail hot, biotech not. it is just a matter of where they want to put their money going forward. commodities, that will be the thing to look forward to, maybe not in 2016 but early 2017. >> interesting today. also telecom up, as you say. basically the stuff that was really hot coming out of the gate after the election, the financials, commodity-related stocks, industrials, maybe they took a break. other stuff has pulled up there. >> i think there's a lot of money coming out of bonds and into stocks and they have to find somewhere where there's value, and that's where the

value is. it is not the stocks that have run, it is the ones yet to move. i'm looking if we have pull back, maybe gold. it is the only thing we've not seen rally, and it makes since it has not. if we see a small pull back, that might be something we see money flow. >> maybe people all of a sudden are confident. we'll see how it plays out. kelly. >> thank you, guys. a little more than 20 minutes to go. stay with us. we'll see if we do it today. closing above 19 k for the blue chips. s&p 2202. nas dam up a quarter of a%. paul hickey says reaction to the election should be read as an economic all clear for the next four years. he'll explain. gary casparov warns winter is coming. he is not talking about the weather. the former grand chess master office admonition about donald trump and his native russian nemesis, vladimir putin. . changes to medicare plans could impact your healthcare costs.

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still out performing but good enough to notch all-time highs if we close this way. >> the market cap of the s&p 500 now tops $20 trillion. huge gains being made across the board for stockholders. dow could close above 19 k for first time, and since donald trump was elected it and the nasdaq have seen gains up. 2.7% figure notable because only two other newly elected presidents have seen a bigger gain, reagan was 3.7% and nixon. >> what will happen between now and inauguration. paul hickey joins us to talk about it. good to have you here. i know you crunched a bunch of numbers going back to 1932. we have plenty of elections in there, not much as strong as this one. what do the numbers tell you? >> unfortunately what the numbers tell you is that you can't read too much into this initial two-week reaction into what the market will do between now and election day or what you

will see in the upcoming four years. it is interesting in the fact that trump is the first newly-elected president since reagan where you saw a positive returns right after their election. so for both bushes, clinton and obama when their initial elections into office, the market traded down. whereas most would agree that trump is one of the biggest wild cards, yet the market is very excited. i think markets looking obviously to full republican control of congress and declining regulation and lower tax base, lower tax rates for corporations. >> paul, what analogies would you draw between now and the reagan period? because this question has come up a lot. >> yeah, it is funny because you do hear so many people talking about trump and reagan, the comparisons, but as far as the economic backdrop it is very different. when reagan was coming into office we were, you know, in a very inflationary environment, and inflation was on the way down. right now inflation is very low,

so the only place it can really go is higher. they are both outsiders, which is one thing which the markets seem to like and they're going to, you know, get rid of some of the onerous regulation on businesses. but overall, i mean they -- the economic backdrops that both trump and reagan are coming into are entirely different. >> paul, it is interesting. you know, you guys look at a tremendous variety of data sets out there in terms of influences on the market, or at least correlations with what happens in the markets. how long do you even think the election result is, you know, a definitive mover of what the stock market is doing at any given time? >> you know, i think, mike, it is a great point. so the elections, it is a very big short-term impact on the markets, but it is only -- washington is only one piece of the puzzle thankfully as far as the economy is concerned. there's a all right of other factors coming into play. the interest rate environment and, you know, the outlook right now that trump is going to -- the view is that it is going to lower regulation and lower taxes. as long as that view continues to be the case, the markets will

like it. once you see uncertainty regarding that, you may see some hiccups. overall the longer term picture with republicans in full control has been one of the better setups for the market going forward. >> and let's go back to 1968. that's when there was a 2.9% rally after nixon was elected. what parallels do you see between that period and today? >> well, you know, when nixon came in it is pretty interesting because we were coming off a very low inflationary environment for several years. so you could almost make -- you could almost make an argument just as far as the inflation picture and the interest rate picture is concerned, there's more similarities to then than there are to now. but, you know, who knows what the future is going to hold? but it is interesting that we -- that both nixon and trump coming into a very low inflationary environment. will inflation go up for trump as it did for nixon? that remains to be seen. >> also, of course, there was a bull market rolling for a few

years when nixon was elected in '68, so maybe a rough parallel. paul, just to clarify, you only looked at when a president was first elected, correct? so this is only for a new president, not re-elected? >> we did it for new and re-elected presidents. >> you did? >> what you look at interestingly is that this whole robbing to pay peter -- to pay paul, so what you see is that the market, you know, some of the initial reactions, if there is any inference to be made it is that returns going forward have been slightly worse when you have a strong initial reaction than a weak initial reaction. look at obama in '08, it was a horrible reaction, one of the worst in history, and his record as far as the stock market is concerned has been pretty well. >> obama in 2012, market was down 6% or 7% right after. >> 2012, two weeks later 2.8%, 2008 it was down 14%. there were other things going on then. >> certainly, and f.d.r. the same thing. >> and i was going to say from your note, paul, when reagan was

re-elected the market fell 3.7% and with nixon rallied 2%, in case anybody is wondering. even after you have known them four years time, there's a bit of a reaction. >> and for nixon and rageon you saw an initial two-week surge and the markets declined through inauguration day. >> paul hickey, thanks a loot. >> good talking to you. >> we have 12 minutes left before the bell. we see the dow above 19,000, up 80, pretty much at the high of the day. >> art cashon walking by there saying paired off at the bell. look at this, 82 points higher on the dow. it continues to kind of lef tate into the close. we have 12 minutes to go. be ware of shorting bonds warns our next guest. he will explain why he believes there's life in the bond market after the break. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head.

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less than 10 minute until the bell. dow comfortably above 19,000 mark. the s&p 500 nosing above 2200. talk to oliver purser about how to position here. we have had this radical move, stocks out performing bonds in a dramatic way. the bond market calmed down a little bit this week.

how should an investor approach this new world? >> momentum is on stock side. we have seen leadership in small-cap stock, so that's where you want to look over the short term. >> you want to chase that? >> you want to stay in it. the momentum is there and there's no sign that momentum will shift any time soon. i would be careful. there's a lot of commentary about shorting bonds or getting out of the bond market all together. definitely shorten your duration, but the bond market is not going to collapse overnight. it is going to take a long time. >> a lot of people look at the stock market, and we see it happen already. they'll say, maybe i'm not allocating enough of my portfolio into stocks, so people start to make those decisions. a, is it prudent? b, what impact could it have on further gains? >> again, momentum, we get new highs, and you will have people chasing it. it is impossible to time it so you want to be careful, to be smart. at the end of the day stocks will react to fundamentals. we want to look at economic growth. we want to see what type of policies come forth from the future trump administration and

see what it does to spending and fiscal policy. then you want to look at industries that are going to gain the most out of those policies. right now it looks like energy is going to be a big winner. in the healthcare sector, looks like large cap pharmaceuticals and insurance companies will be winners. you want to position that way, but you don't want to get carried away and be careful that the herd mentality can change quickly. >> you have the bond market fully priced for december fed rate increase, right? that seems like everybody is on board with this idea. does it stop there? because one year ago we thought we were pretty clear about what the fed was going to do in the coming 12 months, it didn't turn out that way. >> yeah, think you have to wait and see. i think a december rate hike is on the table. i won't be shocked at a january one. i think it comes down to what type of cabinet mr. trump assembles and what type of policy initiatives we expect. if you see a continuation of expected fiscal policy -- and we heard several fed governors speak about that. if fiscal policy starts to take

hold and takes the pressure off the fed being the only game in town, as fischer said, all of a sudden you have the possibility and the likelihood of three or four or maybe even more rate hikes, especially if gdp continues to pick up. >> we may even have new fed members before very long after we get president trump inaugurated. oliver, thank you very much. >> appreciate it. happy thanksgiving. >> back with the closing countdown next. >> after the bell, the trump transition lumbers on. democrats are trying to figure out how to deal with the president-elect and his just released trade plans. what the opposition may do and how it may impact the trump market rally. you are watching cnbc, first in business worldwide. you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you.

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or not in vests. sign up at etrade.com and get up to six hundred dollars. three minutes to the bell. we have the do you jones industrial average hovering above 19,000. looks like on track to close there for first time. s&p 5 lund cracking 2300. don chu, we have milestones falling. >> round numbers, it is psychologically important however they want to call them. still, when you see 19,000 in the headlines maybe some people are turned on or at least attuned to what is happening in the marketplace. i would say this, it is interesting. it hasn't been a stampede one way or the other. total volume, 294 million shares with a couple minutes to go here. the interesting part about this today is the bears tried to take it down at one point midday and

it came back decently strong. we're going to close about the highs of the session for the dow, up about 80 points. financial stocks, we've been harping on them so much because they're a big part of the story and have been since the election. a couple of notable ones, u.s. bank, m & t bank, some of these guys hitting record high, the big regional banks, the onesieing the benefit from steeper yield curves, another way of saying interest rates higher on the long end, lower on the shortened, it improves profit margins and the banks are doing decently and propelling a lot of the gains. >> another area that's interesting are retailers or generally consumer centric stocks doing well. you saw department stores, a lot of participation, restaurants as well, which is interesting because there really is not a policy story about that so much. >> no. >> maybe no minimum wage hike, but in general more about consumers perhaps being equipped to spend a little more. >> correct. it is the key consumer out there that's the mid scale consumer, not talking about ultra luxury brands in the scheme.

talking about o"hamilton" l's on the mid side, darden restaurants, appleby's, olive guard, that sort of think. you get the point. dine equity, brinker, all of the guys here are seen perhaps as doing relatively well in this kind of environment as the uncertainty dissipates and people start to be able to open up their checkbooks a little more to see what they're going to spend on. >> the question here i guess in terms of field position, the day before and after thanksgiving historically very strong. >> yes. >> the question is did you kind of put some of those gains in the bank. >> you drew them forward to today. >> we'll see. >> it was funny because art cashin told us that the tuesday of thanksgiving week has seasonably been one of the weaker days of this thanksgiving week and we're not getting that today. is there a bit of that draw forward? is there a position squaring, like you said, power people positioning for this long weekend? it is not a long weekend. but a half day on friday. >> probably not, although i will be here if they decide to take on -- >> i will be as well. >> thank you very much.

ringing the bell at the big board, we have cookies for kids cancer, and up at the nasdaq ambu as. the second house of closing bell coming to you right now with the do you at 19,000. >> welcome to "closing bell." i'm kelly evans. another history-making day on wall street. for the first time, the dow jones industrial average closing above 19,000. in fact, closing comfortably above 19,023 with a gain of 57 points. that's close to the session high. that's about 0.35% higher for the blue chips. the s&p 500 for its part closing above another high level of its

own, 2202 for a gain of about two-tenths. nasdaq composite up to 5,386. russell with a gain of nearly 1% today, mike, as we were discussing. that makes it 13 straight for the russell, the longest winning streak since 1996. again, the big headline is the dow closing above 19,000 for the first time. markets climbing despite uncertainty surrounding president-elect trump cabinet, including a to-be-named commerce secretary. former world chess champion gary kasparov will join us with his take later in the show. as mentioned joining me on the panel, cnbc senior market commentator marcus. and jeremy siegel from the wharton school of pennsylvania joins us. cnbc fast money trader will be

here in a moment. wow, where is your rally cap, mike? or does it say make america great again? >> that's right. i think the market is trying to get there even before we have the cabinet officials, even before we have any legislation on the table. it is interesting, it took almost two years for the dow to get from 18,000 to 19,000, but this last little kick, especially the last several months have maybe been the more surprising part. we were below 15,5 in mid-february, more than a 20% move. total return i think year-to-date is well above 10% including dividends for the dow. it seems it is shaping into a pretty good year. i think this continued upward drift getting us to the records somewhat says how underinvested people were. >> it took everybody by surprise. i'm not going to give you too much of a hard time for being so insistent a trump victory would not happen, but it indicates the level of sentiment. it caught everybody flat footed. now it appears the rally happened, the chase is on.

how much further does it go? >> hard to say. i think a lot of what is happening in the last couple of weeks has been over attributed to what happened on election night. something important to remember i think is yields for instance had been climbing since july. same thing with the dollar. inflation expectations were climbing before that. it is possible some election night risks, like the possibility of a clinton victory and trump not conceding or a recount or something like that, the fact that those things didn't happen might account for the acceleration in the markets. but i think this is part of a broader repricing of risk from the big fears that we had earlier in the year. >> what, steve? >> yeah, i'm going to -- well, nice to meet you. >> likewise. >> uh-oh. >> so i'm going to say it has 90% -- or i'll go a step further. i will say it is 99% trump election. it is going to be tax cuts, corporate tax reform, having total control of government, that's the reason why the market rallied. >> 99% of the rally from '08 to

'16 was obama. >> you could say that, too, forcing people into risk assets, you could say that as well, and keeping rates low. but it is really hard pressed, it is finite amount of time to say it wasn't because of trump. >> professor, you're with us. you know, dow 19,000, as mike was saying, back in january seemed like a long shot. today we've done it. so what happens next? >> well, i heard the cheering on 19,000. i wonder what we're going to hear at 20,000. that's not impossible. that's 5.5% away. by the way, it is 100% trump as a rally. the republican agenda was always more capital friendly. what scared the market was, quote, the uncertainty of what trump would bring. now, you say has that disappeared? well, he's acted quite moderate so far. if he stays moderate on trade, picks good people for treasury,

et cetera. >> that's a big if, by the way. >> i understand that. we all expected him to get out of the tpp, which he did, so that's absolutely no surprise. but, you know, as long as he doesn't launch a big trade war on that side, there's everything favorable. just think, just cutting taxes from 35 to 25%, statutory, can raise s&p earnings by 10%. that is huge. >> professor, so all of that being said, obviously the next question hanging there for everybody is, okay, dow 20,000. as mike was saying, it took us a while to get to this level from 18 k, but are the conditions you're describing so dramatically different we could punch higher to that level very quickly? >> well, if we do think that there's going to be a tax cut, that's a 10% increase i think in the s&p. if we think there's going to be stronger economic growth, that's higher earnings. the challenge, of course, is yields are going up very definitely, dollar is staying

strong. you know, that's certainly going to be a challenge. that's one reason why small stocks are running so dramatically here, they don't have that challenge on the dollar side as much as the big stocks do. but i think this rally is justified on the basis of what happened on election day. >> which, by the way, you were not the most bullish guy going into election day, right? >> no. >> talk to us about this. are you, like what is his name, who woke up the next morning and said, wait a minute, maybe i am bullish? >> i always said in the short run it was a lot more -- it wouldn't be good, long run it is good. but i never thought the short run would be six hours long, and then all of a sudden, hey, hey, let's look at the bright side of that and put on the rose colored glasses. i thought it would last at least a week or so but, hey, he started moderate right away. >> yeah. >> everyone said, hey, let's look at the bright side of this and continuing to do so. >> so a lot is priced in. >> no slam dunk to be sure. >> that's exactly right.

if it bounces off the rim, mike, or as we get into the nitty-gritty, all of these policy things will take some time. is there a lot of potential disappointment ahead? >> there is, i think in pocket -- i'm not saying there's no element of celebration of the trump victory. i think the character of the rally, the beneficiaries and how far they've moved in terms of the deregulation at the stroke of a pen type stocks or the pharmaceutical stocks, so the pockets of the market that have the most direct line to a better fundamental story, regulatory story, they benefitted a lot. yes, i do think that you're kind of pricing in a lot of what we hoped the agenda looks like right now, and then we sort of see how it gets implemented down the road. >> we also have earnings flying at us this afternoon. let's pivot for a moment and get to earnings. hewlett-packard enterprise and inc., lets start with you at hp. >> reporter: that's right. the numbers are in and revenues missed by a significant amount coming at 12.5 billion versus street estimates at

12.84 billion. the after market stock up 1%. eps, part of the good news, beat the street by a penny. it came in at $0.62. enterprise group as well as enters price services group missed expectations, which could have been driving the top line. last, financial services basically were in line or actually beat expectations. the earnings all come on the first year anniversary of hpe getting spun out from hp. kelley, back to you. >> didi, thank you. be sure to tune in to nch sidewalk on the street" when meg whitman will join us in an exclusive interview to discuss these results, about 9:00 a.m. tomorrow morning, and ask her about the trump rally too. get to the earnings on hp inc. josh lip ton has though. josh. >> kelly, hp inc. reporting $0.36. the street was looking for $0.36. revenue though, 12.5 billion. that's better than expect. the street was 11.9 billion.

as for guide, q 1 eps 35 to $0.38, it is a bit light on the q 1 guide. full year 2017 eps 1.55 do 1.65, in line with the street. remember, heading into this print that stock had been up some 40% in the past six months. turning the business segments, kelly, personal systems up 4%, 4.3% operating margin there. printing net revenue down 8% year over year, though in total hardware units were up 1%. i did have a chance to speak briefly to hp, inc.'s ceo. i will give you his take on the quarter. as for the pc market in general, he said, listen, the market is down. he told me they continue to outperform that market though on the back of innovation, and because of their focus on the premium part of that market. as for operating margins, they are 4.3%, as i mentioned. i asked is that sustainable in the quarters ahead. he said, listen, the normal range will continue to be 3% to

4% with the opportunity to beat that now and again, which they did in the quarter. as for printing, he talked about that samsung acquisition. he said that sets his company up well in that $55 billion a-3 copier market. for investors he said they expect supplies to stop declining in fiscal 2017, bottom line talking about pc and printing market, acknowledging these are challenge markets but he knows how to operate in the up and down markets. he said his company's product portfolio is best it has been in decades. guys, back to you. >> joshua, thank you. let's march on to urban outfitters, shares downward. how did they do? >> reporter: a notable move to the down side. urban outfitters missing street expectations by $0.04. earnings of $0.40 versus wal street estimate of $0.44. revenue too was light at $862 million. perhaps also a concern is comparable same store sales comps were soft across the board

specifically at an throw polling. we are looking at shares of urban outfitters down 6.5% here after hours, kelly. >> a big move lower seema. thank you. by the way, the retail sector one of the best performers today. steve, talk about what is working and not working. >> apparel seems to be working, urban outfitters up 70% going into the print or thereabouts. when you look at the other one that should be up, burlington, it was up 100%. >> burlington had a huge day today. >> so i think if there's any -- if there's a sector that has gotten ahead way too far ahead, i think it is retail/apparel space sub sector there. i think that's where you could take profits from, as we're seeing in urban. i hate that saying, it is set, you know, price for perfection, but it seems to me the retail space is. >> it was dollar tree, signet, dsw, chico's, you know, rising tied lifts all boats?

>> also same sale stores for retailers have been mixed. dollar tree better than expected, same thing with target and best buy, makes the holiday outlook a little more muddy now i think. >> right. and, by the way, there's a lot of different factors here, but a lot of these retailers cited election uncertainty going into the period as kind of a boot on their neck, and that's clearly off now. >> it is off. now, if it was an excuse before, you don't know if it will be a benefit now. i do think a lot of the retailers did get inventory so tight, and basically they did not model for strong sales performance. street sentiment toward the group was terrible before the rally. so i think that's why you've seen that pop. >> real quick, hp, anything jump out to you? >> not too much specifically on the reports except these are the kinds of value stocks, very low multiple stocks that had huge runs, and also are trading at the upper levels of their valuation since they split the old hp. >> professor siegel, anything you want to add to these? >> no, and i think this rally has a while to go when you have

all of, you know, small stocks, large stocks, even tech stocks, which we know have challenges, joining with it. i don't think this is something that ends tomorrow. i think it continues through december. >> all right. let's move on to an earnings alert on video game retailer game stop. seema rejoins us. >> reporter: kelly, a mixed report i should say from game stop. earnings beat $0.49 versus wall street estimate of $0.47, but revenue a bit light at $1.96 billion. this comes after the company did preannounce earlier this month guidance, that seems to be a concern here, very conservative fourth quarter earnings guidance. we are looking at shares down just half a percent in the press release. game stop says while the video game business underperformed recently, we are focused on maintaining our leading market position especially during the holiday season. a crucial time for the retailers, kelly. >> that's for sure. seema, thank you for now. steve, also campbell's soup and

hormel were having a nice session. what would be your parting thought as people see these headlines, think about what exposure they have to the market and what to do next? >> i think the professor summed it up. the day after the election i came in and bought spiders as s&p's. i thought it was going to get butte up, i bought uri which was infrastructure -- >> united rentals? >> yes. i think if you want to buy the market, buy an etf. have your place holder there. if the market comes in, you're looking longer term. you buy the market again. if it trades up higher, i'm a big fan of buying on momentum. i bought more spiders today. >> how bullish are you feeling at this point? >> i think to mike's point, i agree with him completely. regulation, you don't do that in one swipe of the pen. tax cuts, i think it is closer to doing that for the highest tax bracket, going from over 40% with the obamacare surcharge, coming down to the top rate of

33%, that's an awful lot of money in potential consumer's pockets. >> all right. steve, thank you for joining us. professor siegel, thank you as well, sir. >> thank you. >> and be hur to stick around to catch steve and the rest of the crew coming up on "fast money." before the election david stockman said sell everything. now he is back to double down on that call. he will explain why at the top of next hour. now, the dow hitting 19,000 there and closing there for the first time today. up next, two top stock pickers tell us which names they think investors should buy right now and which ones they should sell. is president-elect trump closer to naming more people to his cabinet? coming up, we'll head to trump tower for latest on the transition and whether trump's appointments can give more fuel to the rally. you are watching cnbc, first in business worldwide. ♪

welcome back. the dow closing above 19,000 today for the first time. dominic chu here at the new york stock exchange. bertha coombs tracking nasdaq winners. tell us about the day that was. >> reporter: the day that was involved the large cap. let's stick to the dow names that powered the gains. if you look where the leadership was, the biggest point contributors to the 67 odd point

move, you have home depot, you have boeing and united health. those three guys pulling most of the weight for the dow industrials, putting it over the 19,000 hump. as for the biggest drag, the 2% drop in johnson & johnson. back over to you. >> thank you, dominic. let's shoot to the nasdaq and recap the record day there, bertha. >> reporter: it is about the small-caps, russell 2000 13th day of gains. you have financials participation and consumer discretionary strong. jack in the box at historic high today after better than expected earnings that lifted wendy's to multi-year high as well. in the large cap you had historic highs for the likes of ross stores which had strong earnings earlier this week, comcast, adp, chims at a 16-year high but, kelly, they still have a ways to go. 30% before they take out the march 2000 all-time highs.

>> bertha. thank you. joining us, david cats and room. welcome, guys. david, give us places where you see value. >> you don't want to chase the markets. the market is at all-time highs but a lot of stocks are well below their highs. we are starting the like the drug companies in a fairly meaningful way. avi is off a gray high. 12 times earnings. zimmer announce willed earnings a week or two ago, lowered expectations a touch but outlook favorable at a great price. >> aroom, what about you? >> think when we look at the trump platform broadly we have opportunity in defuense spendin. we like booz allen in the defense spending. we like jacob engineering, it is an opportunity in infrastructure spending area. in transportation we like odfl

which is a market leader. >> going back to you, david, you have a financial on here. tell us about it. >> so financials have been on a tear in the last two weeks. we think it is very early on in the financials rallying, so we wouldn't chase them, but if there's any sort of pull-back we would be buying into it. jp morgan is our favorite. the stock is at a multi-year high. we think the prospects are high. higher interest rates, a little less adversarial environment. this group is vastly underinvested in by mutual funds and hedge funds. we think there's a mad dash to get in. we like jp morgan, we like wells, and we think the group is going to have a very good year next year after a very good fourth quarter. >> and, erin, in terms of style we have seen a dramatic shift in cheaper stocks, more cyclical stocks from growth and more stable ones. is that enduring or basically dependent on i guess how much more interest rates go up if at all? >> yeah, i think the value

approach is more interest rate driven in a broader level. when you think about 2017 after we had a broad rally, the stocks that you want to focus on are the ones that will have earnings upwards in 2017. so it becomes a stock picker's market really as we look at the next several quarters. if you take the case of booz allen, for example, the defense spending will go from the current level which is about mid single digits to 14% over the next year. so there are opportunities in increased spending there, that is going to drive earnings upwards. there's an opportunity for you. so you really have to focus on the stocks that can drive earnings from this point on and really put your money to work there. >> david, just don't want to neglect to mention you also like sisco. can you tell us about some of the places you would avoid here? >> so we have not liked utilities. they've just sold off about 15% to a lot less negative on them, but not putting new money in

them. companies that have run up like a caterpillar which we have owned and did great this year we think is a little ahead of itself. we would not jump into that now. if you have profits and wanted to take them off the table, we would be comfortable with something like that. if you were looking at technology and they're above 40 or 50 times earnings, be very wary about them. lots of places in technology at 12 times earnings so we think that's a better place for your money. >> arun, what wouldn't you touch with a 10-foot pole. >> i think reads are over extended here so be cautious on those as the chase for the yield has come off and people will increasingly focus on the earnings that will matter for 2017. >> arun daniels, david katz, thank you so much. >> thank you. >> nice to be here. >> giving you a view of what they like and don't like in this market. when the dow closed above 19,000 for the first time today. coming up, we will look why history says investors should jump on the rally bandwagon. plus discuss the latest development in the trump transition and who may be the

frontrunner for secretary of state. find out how that could impact the market when we come back.

. welcome back. the trump rally showing no signs of losing steam even as investors await the president-elect's key cabinet nominations. we may be getting closer to some of those appointments. eamon javers is outside trump towers with the latest. >> reporter: we may be getting closer, we may not be getting

closer. donald trump has officially left the building here at trump tours. his motorcade departed just after 4:00. he is heading to mayr-a-lago in florida where we're told he will spend thanksgiving with family. we are getting reporting on some of the cabinet picks for the next administration. i will read you some of the headlines. some of these names are not necessarily news. dow jones reporting nikki haley is leading candidate to be next u.n. ambassador. retired general james maddus likely to be named secretary of defense. mitt romney leads trump's for secretary of defense. reporting the president-elect himself leans toward the former governor but advisers are having a tug of war and delaying some of the decision making ultimately on who the picks will be. all of thoese hedged reports, w don't have final decisions here. it is not final until mr. trump says it is final, kelly, and

that word may came from mar-a-lago, not here from trump tower. >> right, where he is headed. are you going to mar-a-lago, eamon? >> i'm not. i'm going to philadelphia for thanksgiving. >> oh, come on. the weather after being out there all day? >> it is not as warm, right. >> home is where the heart is. >> i look forward to spending time in palm beach at some point. >> i'm sure you will, eamon. thank you. everyone always says the markets don't like uncertainty but they keep going up despite a lot of unanswered questions about trump's presidency. one of the questions is how he will work with democrats like senators elizabeth warren and bernie sanders and how it could impact some of his policies. joining us is niles standige. and deputy assistant secretary of transportation. so, nile, what do you think? you know, it is hard to be overly concerned about how he will work with democrats when they have, you know, both parts of government.

you know, if anything it seems like the democratic coalition has shrunk, not grown, since the election. >> yeah, i think that is right to a certain extent. one of the reasons that donald trump got elected was his appeal to blue-collar workers, particularly in rust belt states. part of the appeal was actually in policy areas that there is some crossover with democrats on, things like the trade issue, things like minimum wage, though donald trump hasn't been totally clear on that. but there are infrastructure spending, is yet another of these policies. these are things that democrat might be tempted to go along with, but, of course, there are other things that donald trump has said that appall democrats. so that's the political conundrum for them. >> yes. so, oliver, how wow expect a president who does not truly at least at the outset seem to need direct help from democratic legislators, how do you think he is going to position his agenda when he gets out there?

in other words, is it you're with us or against us and we don't care if you're against us, or is there a practical reason he might want allies on that side? >> well, donald trump is the art of the negotiation. i would be very, very surprised if he leads the congress into grid lock. i think he's going to be looking at ways to find partnerships in public and private partnerships particularly. he will be a person that will be trying to reduce increased regulation, as he said last night, but he's also going to be very, very focused on this $1.10-year investment in infrastructure. this is exciting. he is focusing on building america and building the innovation enterprise and building the crumbling infrastructure. that's are good things i think both sides of the aisle can jump on to. he is interested in pushing the economy to a 4% model. and building new ways to build health reform, but also go into

the biotechs, wireless techs, micro techs, nano techs, elder techs, and basically try to feed the economy through technology and infuse it with capital, and that's a growth model. i think we will be seeing donald trump in the first 100 days being the growth president. >> niall, i'm curious to know if the democrats will ask for anything in exchange for working with trump on something like infrastructure, especially because i can't imagine they want to be close to -- for instance, a fiscal package that makes the tax code more regressive. how are they going to work with him on that? >> i think one of the things we're going to see is really negotiations over the specifics of this infrastructure bill. the way it is set up right now is a process of tax credits to private construction companies and also a model through which u.s. companies could bring their profits back from overseas. bernie sanders has described that as a scam even though he agrees he wants to work on

infrastructure. could there be a middle ground? possibly. we've seen senator charles schumer from new york, the incoming democratic leader in the senate, talk in somewhat more positive terms about the possibility that he could work with president-elect trump. >> yeah, hey, niall, a quick follow up. i'm wondering how much a barrier the conflict of interests of the trump organization and trump being in the presidency will be to even starting negotiations on this. i've been somewhat surprised that democrats and also, frankly, republicans haven't been more aggressive in speaking out on this, given that their reputations might well rest on it if in fact people's worst fears of corruption in a trump presidency are realized eventually? >> yeah, i think that's a great question. i think it is evidence that even donald trump, controversial though he is, is enjoying a honeymoon period to some extent. people have not pushed those questions right now as aggressively as one might think. but i do think it is an ongoing concern on both sides of the aisle to some degree, but

particularly among democrats. democrats are going to want firmer, clearer answers on that question before they would risk the sense that they had been somehow coopted by president-elect trump. >> oliver, how did you put it, a growth presidency, first term, first 100 days? >> well, i think we're going to be -- we're going to be seeing a very good choices that he's making for economic policy adviser. he's obviously looking very closely at a new transportation secretary. the education secretary will be a key point. we have to educate society and educate workers. he's going to be a jobs president. he's very, very interested in looking at all kinds of partnerships, any kinds of ways of defense spending, energy development reform, regulation reform, that will lead to more productivity and jobs. he is trying to bring industries back to the coast of america, and then produce more job creation. when you create more jobs, then people have jobs, they can then

have healthcare, and then that will be less stress on the healthcare system. then that's how when we go to repeal and replace obamacare, to make it more efficient, we will have additional money to pour into the $1 trillion infrastructure development that's so needed. as we take care of our health, we'll also be able to take care of crumbling america. >> all right. >> that is essentially what he is doing in this campaign promise to make america great again. >> that's what the markets are sniffing out. oliver magee, niall stanidge. time for an update. >> hi, kellie. here is update another this hour. president obama holding the final medal of freedom ceremony of his tenure in office. today's the recipients included ellen degenerous, robert denir owe as well as bill and melinda gates. president obama has awarded more medals of freedom than any other president. the number of americans over age 65 who still owe money on their homes is on the rise. a study released this month

found 35% still had mortgages or other housing debt. researchers also found the amount seniors owe has doubled to $82,000 up from $44,000. a recall from toyota. the company is recalling 744,000 sienna models over concerns the mini van's sliding door could malfunction and in certain conditions open while driving. the alert includes model years 2011 through 2016. toyota says it is working on a fix. say hello to these two guys. that's tater and on the other side is tot. these two lucky turkeys will be pardoned tomorrow by president obama at the white house in an annual tradition that dates back to president truman. afterwards, both birds will head off to gobbler's rest at virginia tech. >> i mean you can't name them tater and tot and not expect them to get eaten? >> well, i don't know. >> very lucky turkeys. >> and they're so pretty. they're in their little turkey

finest, you know. >> necessary are. >> tater and tot, getting spared. >> spared. >> thank you, sue. >> see you, kelly. >> have a good one. >> coming up, how close will president-elect trump be to vladimir putin? gary kasparov weighs in later on "closing bell." meg tirrell gets a look at eli lily's fight against alzheimer's disease. >> find out why this underground room at the headquarters of eli lily is so secretive that the only windows are fake. chasing after short term returns. instead if getting caught up with the crowd, the investment managers at pgim take a long term view, teaming specialized active investing with risk-management rigor, to seek out global opportunities. we manage over a trillion dollars this way, attracting many of the world's leading investors. partner with pgim. the global investment management businesses of prudential

welcome back. where wrp you when the dow closed above 18,000 for the first time? it was like a few years ago. >> christmas eve a few years ago. >> today, the dow closed above 19,000 for the first time, gained about a third of a percent. the s&p closed at 2202 and the nasdaq set a record of its own, 5386. now that the dow has closed above the 19,000 level, will 20,000 be following closely behind? eric chummily joins us to break down the numbers. hey, eric. >> as you mentioned, the s&p not as nice a round number. the s&p is a round number.

if history is a guide, the dow closing at 19,000 will triple the psychological barrier suggesting more gains to come. all the way up to 18,000 a couple of years ago, we have seen traders pushed up higher according to data. the dow doesn't just go up, but out performs the s&p 5 hnd along the way. it is risk adjusted, beta adjusted, whatever adjusted for out performance. it is true for one week, one month, quarter returns. the dow has out performed s&p 13 of the past 17 times. part of it is that the triple zero multiples get extra attention in media and market, like this discussion we're having right now encouraging people to jump on board. another part of it, it is technical trading. levels that were strong resistance are getting broken through, turning into support. that's a really vent people can flock to, pushing assets higher. the best example to were, mid 2007, look at the chart, the blue and orange, s&p and dow were the same.

in late april the dow crossed above 13,000 for first time and out performed s&p by almost 4% in three months. take a look at the market now. we've been pushing against 19,000 for a while. it took us almost two years to get there. every day hit the ceiling, hit the ceiling. now that we've broken through, we closed above it. now that ceiling can turn into a floor. >> i wonder waugh guys think, is the flows that come in psychological when people see that, i don't know which way it goes. if they see it and think, forget it, or see it and say it is time to get in? >> over the span of a months if that's when out performance starts, i don't know. the dow is typically a more defensive index. like in 2007, it may hold up better. i think we have the dial it back. by definition, there's only been 19 of these, right? >> but that's a decent number to look at. >> from 196 to 1982, right, so that's the one we don't want to go back. >> it could be 14 years of trying to get to that 20,000.

>> but the difference in that case is 1,000 to 2,000 was a double link. right now every thousand we get it is only like -- >> right, but out performs once you get to the 1,000 point level. i know all-time highs, actually you have better risk adjusted returns from that point on. >> right, so this goes to that point. >> we will see when you hit the next round number. >> mike is a buyer. >> we have a new to learn on a data beach. seema, who now? >> reporter: a concern at madison square garden. it has notified customers it has identified an address, a payment card issue, that is affected cards used at merchandise, food and bench locations at madison square garden. the theater at msg, the radio city music hall, beacon theater and chicago theater. no mention of tickets but, again, these specific locations potential security concern over the span of 11 months. we're not seeing shares though move on this news. we will keep you up to date on

madison square garden. notifying customers of the payment card incident. >> i was going to ask about that, if they might give people a heads up who are affected. seema, thank you. more than five million americans are suffering from alzheimer's. that number is expected to rise to maybe even triple. but one drugmaker could be set to make a real mark on treating the disease. those details coming up. the election touching off a rally not just here in the u.s. but also abroad, including in russia. the russian stock market climbing 4.5% after donald trump won the white house. up next, human rights activist gary kasparov joins us with his take on what a trump presidency means for the future of u.s./russian relations and potential fallout. you're watching cnbc, first in business worldwide.

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how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. welcome back. in the last two weeks american politics has been rocked and markets have soared as president-elect trump begins to take the reins of power and shapes his new administration. our next guest says the people appointed to these key positions could help determine trump's future relations with russia and vladimir putin. joining us is gary kasparov, chairman of the human rights foundation and author of "winter is coming," why vladimir putin and enemies of the free world must be stopped. thank you. >> thanks for inviting me. >> watching this all unfold, hearing what trump has said about putin throughout the campaign and since, how do you expect this all to play out?

>> it is hard to reconcile because let's start with what we know. trump praised putin, and he even went as far as denying the fact russia was behind the hacking of dnc and other attacks on the u.s. electoral system, even after being briefed by american intelligence. we also know that putin wanted trump to win. you know, russia propaganda has been promoting trump, you know, even putin at certain point. russian troll factors were working tirelessly, helping trump by creating fake websites and attacking anybody who was going after trump. we also know that trump had people like paul manafort, his former campaign manager with ties to the kremlin. we know michael flynn, who by the way in his book a couple of years ago was critical of putin but suddenly change, and now he is pro putin, advocating put an's foreign policy. that's what we know. >> you bring in michael flynn. are you painting it with an

overly broad brush? these are incredibly complex relationships. >> the question is why pout inwants trump to win? because he hated hillary? because he believed trump could be an ideal agent that would help putin to spread his political agenda or there's something tangible. there's something about trump's bankruptcy, whether there was russian money there. i think putin had expectations and we can answer the questions only by looking at the nominations. >> sure. >> who will be in the administration. if it is mitt romney -- >> mitt romney is under consideration. >> the man who four years ago correctly stated russia was number one political foe, and was ridiculed by obama and we know he was right. i don't know if necessary have a prenuptial with trump, but what are conditions. i believe romney would not jump into the pool without having,

you know, strong guarantees that he will be given a free hand to run foreign policy and not to be sort of subordinate to michael flynn, for instance. >> mike? >> i would say even without the sort of -- beyond the mutual admiration we have seen there, you know, donald trump has sort of said, look, we don't want the united states on a foreign policy basis to be sort of meddling as much, not solving as many of the world's problems. he is skeptic of nato and how strong a force it has to be. does it have to be anything more than that? in other words does there have to be a quid pro quo aside from that? >> for putin, it is music for his ears because while trump keeps talking about, you know, sort of building relations with putin, you know, talking to other, you know, places in the world that can make the difference, he keeps ignoring traditional american allies. i think sort of restoring the strength of the alliances is number one priority.

i know for instance in poland the situation is close to panic. >> and, gary, we appreciate you join us. wish we had more time. the book is "winter is coming." please come back. >> thanks very much. >> gary kasparov on the latest between u.s. and russia. no drug has eli lilly, more on latest advancements, next. and the second season at 10:00 p.m. eastern right here on cnbc. ♪ guyhey nicole, happening here? this is my new alert system

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welcome back. eli lily making a bill bit on its alzheimer's drug. meg tirrell sat down with the incoming ceo to discuss the potential game-changing treatment. meg? >> kelly, that's right. incoming eli lilly ceo, dave

ricks, a huge new chapter for the company, depending on the outcome of its big alzheimer's trial with results due within the next few weeks. alzheimer's, of course, is a devastating disease with no current treatment. it affects about 5 million people in the u.s. now and that number could trill by 2050 without effective intervention. for that reason, the market for an alzheimer's drug that actually slows its progression is estimated at more than $20 billion annually. but there has been failure after failure in this space, which has scared off many companies and investors. lilly itself based failures with this drug says it figured out the right patients and is hopeful for success this time around. >> it's a a unique area we have been studying for so long with so little outcome. it's an area where we would characterize as high risk but higher reward and certainly reward for patients and the health care system. >> for that reason, lilly's stock could react strongly, so much so, they have a locked

windowless room they call the cave where they'll analyze the data after it comes in. this is underground of the headquarters. jeffries estimates a swing in the stock up by as much as $23 or down by as much as $12. whichever way it goes, it's bound to have implications for the other drug makers working in this space. most specifically biogen, which has a similar drug in late-stage studies. so a very, very anticipated result here, guys. >> meg, carter had a question. >> from what i understand, the logistics of administering this drug are complicated. do you know if lilly's -- it has some kind of a contingency plan for if the drug does get approved, how it is going to explain that to regulators and get to market? >> that's a huge part of it here. this is not a pill, a drug that would be infused so there is a system with working with infusii infusion centers. we talked with dave ricks and they say they are talking to payers about potentially reimbursing for this and

figuring out that system. not just of administering the drug, but also testing patients to make sure they have the buildups in their brains which make them eligible for the drug. >> thank you for joining us. meg tirrell. the markets closed at record highs. can the momentum push forward into tomorrow? what to watch for, right after this. isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles... aflac! or help pay the mortgage? or child care? aflaaac! and everyday expenses? aflac! learn about one day pay at aflac.com/boat blurlbrlblrlbr!!! the market.redict but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor.

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welcome back. a big day for news today, obviously. still a lot of politics to watch for. but also a bunch of data coming our way tomorrow. what are you guys watching? >> for a preholiday session tomorrow, the fed minutes -- not a lot of news in there, but obviously they'll probably solidify the case. also some macro data, including michigan consumer sentiment. not the most widely watched, but you want to see what the mood of the public is after the election. >> especially, because i think this would be the final. and the final usually has breakdown by income, age. could be interesting to see what's happening there. >> yeah. in terms of the fomc minutes, i actually am going to be watching for something. but it's not obviously for what they're going to be doing in december. i think now the chances of a december rate hike are something like 100% or something ridiculous, according to futures. but look for hints about how they're going to act next year. there is a really interesting

tension, i think, building within the fed. and probably even within the mind of janet necessariyellen h. her speech showed letting the economy run hot might undo damage to potential growth that was left over from the recession, which is a controversial idea in economics. >> but which i think is what you're about to see. this is laid out before the trump victory, right? so does all of that change now and do they actually tighten? >> it could. because on the other hand, she said last week that a new big fiscal boost wouldn't be as helpful now as it would have been in the early years of the recovery. when a lot more resources were idle, suggesting she would, in fact, clamp down more on inflation than the markets are anticipating. this could also be why inflation expectations haven't jumped since the election of donald trump. >> if you're talking about a multihundred billion dollar swing in the fiscal deficit which is what you could be looking at, yeah, that's a big enough reason that you would want to maybe change the pace. of fed rate. >> and caught in the middle

somewhere is the dollar. so many different stocks that could be exposed. that's one area where the more detail the better. the large figures priced in but the details still very obscure. >> by the way, it's 100% for december, because there is at least some chance of a half-point increase. >> all right. mike, i'm not going to see you for 24 hours, okay? or 23. >> less than that. >> "fast money" starts now. kelly, thanks. we begin with breaking news on wall street. the dow topping 19,000 for the first time ever. and it wasn't just the dow. the s&p 500 jumping past 2200 for the first time, as well. and the nasdaq and russell both hitting new highs. all four indexes hitting highs for the second day in a row as the trump trade rages on. how much longer can trump rally last and what's left to buy? guy adami, we start with you. >> great to have you tonight. listen, can the trump rally last? i'm no raging bull by any stretch of the imagination. the iwm,