eggs and cookies apparently. >> good for her. >> as we all should do. >> right now? >> there are eggs in cookies. >> thank you for joining us. >> thank you for watching power lunch. "closing bell" starts in two seconds. >> and welcome to "closing bell" yes we match again. i don't know how this happens. oil prices down again today. crude falling on doubts here we go again over a potential production cut agreement during tomorrow's opec meeting. we are live in vienna with details. the trump rally back in action. nasdaq hitting all day intraday high. we have money managers saying there is still a lot of room to run. they will name names on stocks

they are betting on. >> in the small caps. >> which are having a terrific month of double digits. we have two trump cabinet nominations out today. we are still waiting for treasury secretary and announcement on that. one of the men in the running for that job is john allison who will join us in a first on cnbc interview in just a few minutes here. >> that will be a big one. and the markets and much more. we start with oil. opec's impact on the price. at the meeting site where we are awaiting developments ahead of a big decision potentially out tomorrow. what are you hearing at this hour? >> reporter: it's a fascinating look. the market thought it had a deal. we got up to $53 a barrel back in september when they said we probably can't -- i can tell you a couple of hours until the key meeting on wednesday. and there is no deal yet.

there is feverish activity among the five star hotels. they put back the main meeting by an hour. rumor is they are having a lot of breakfast meetings. and they are trying to get towards a deal. and the problems are the same old problems, lack of participation in the cuts from some members. i spoke to uae's oil minister. let's listen to see what he had to say. >> i could say that the biggest areas that some are not participating. i think opec is a dated organization. and so expectation we would like to have something that is sustainable and that benefits everyone and also get everyone needing to participate. don't ask me how, who and when

before we meet. >> reporter: very interesting. we think we know who the names are. we think tehran is saying we don't want to take part in cuts. we are trying to get production up to presanction levels. the cuts should come more from rio or saudi arabia who grew market share. also, the likes of the iraqis, do they want an exemption because iraq is fighting a war in its own territory. it needs to pay for more security. it wants to stay around 4.5 million barrels. they are the two key sticking points who got their own security problems. the fact of the matter is in the last two years since we had the latest policy where they were going to let the market fall and maybe try to gain market share, opec put on 3 million barrels a day.

if they can do that that will be a mighty feat. it will be an enormous 24 hours for the oil market here. >> clearly if they don't have a deal by now you wonder what they can offer those who desperately need the oil money at this point. what could they offer them that will bring them to the table. saudi arabia is not willing to do that anymore because they are not in perfect economic shape right now. >> absolutely. we look their finances are in -- they have money and reserves but they are dwindling fast. what they can offer is this. the market demand side of the equation. next year demand is seen rising. that according to many will get us to some form of equilibrium. demand could come back and they don't need such an aggressive cut. maybe they can offer something on that front.

what they want is investment back and they are not going to get it at $45 per barrel. >> 30 seconds, is this a binary outcome either cut or no cut or something in between? >>. >> i have asked everyone here. i think the market is desperate. i think they could get a deal. when we find out who is doing what quota i think that could last a long while. i'm afraid the market wants to know whether we are $60 or $30 i'm not sure they are going to get it. >> crude is below $46 a barrel. >> good to see you. thank you. >> working longer hours than me. >> we will talk to him tomorrow. no one works longer than you do. let's get to our "closing bell" exchange. peter anderson, keith bliss sitting patiently at post nine listening to the conversation on oil. and rick santelli checks in from chicago. keith, we are sort of going side

ways this week so far and the gdp number looks very good for the third quarter. what is going to move this market further? >> i think the market is poised to move higher. when i look at the technicals and look at the seasonal factors that we are now in and i also look at the way everything is positioned especially with the market still expecting very stimulative effects you are seeing that the market is getting back to a more normal, if you will, equilibrium. bonds are selling off while equities rally. small caps which were for a long time laggards are now leading the market higher. especially along small caps bill that is an important factor because those are the stocks that will benefit the most from many things that the trump administration is talking about when it comes to tax cuts and infrastructure spending and perhaps a little bit more protection on the trade side. i think this again this market is poised to move much higher.

>> a number like today's gdp makes you wonder and this has been a debate today just how much of the rally donald trump and his win get credit for. we had a story of an economy that is improving. if you dig beneath that headline you saw corporate profits rebounding 6.6% and consumer spending driving a lot of the growth, as well. >> i do think that all the numbers so far don't reflect any of his policies. but we are setting ourselves up. the stage is set tremendously strong so that if any of his policies get through and it is still too early to get a sense of which will, but if they do get through that is an additional boost to what i would say is a really strong foundation right now. i think a lot of u.s. stocks and especially large cap growth area is very attractive and on top of that you can pick stocks that might even benefit from some of his policies going through.

>> i think we have some of your picks up there. morgan stanley, key corp, these are stocks that have already had tremendous double digit runups since the presidential election. goldman sachs up 17%. you think there is still more room to rally there based on hope of policies to come? >> you don't want the trump tail to wag the dog with all of this stuff. there is still let's take key bank. regardless of what trump does the company is still growing. it just bought first niagara. then you have increased interest rate the market will help. on top of that say if trump does get his infrastructure spending through, a company like key bank will benefit tremendously from that and probably grow revenues in excess of 15% to 20% next year. that is why i still like a company like that. >> the famed investor out of pittsburgh has turned bullish since the election and showed

his hand today at an investment conference. he thinks yields are going much higher. he sees the ten year around 6% and sees the euro going to 0.82 to the dollar in that timeframe. could you see that, as well? >> i think i could agree with them almost on the levels but i certainly don't think i agree with the timeframe. i think the timeframe is too short. whether it is 6% in a couple of years or 3.5% in a couple of years it is certainly a far cry from where it was in july at 135. let's play what if game here. we have had plenty of back-to-back quarters. we have had rebounds in corporate earnings in those timeframes. what we haven't had was sustainability. if we need a couple more quarters like that and we do start to move the needle, you add in the confidence post election, sustainability,

hitting the ground running with a country flood with liquidity, investor sentiment, i mostly ignore confidence >> we got to go at this point. >> referendum on sunday. ecb meeting. >> trying to get ready for all of that. appreciate your thoughts on today's market action. we are heading to the close with 50 minutes left in the trading session here. the dow up 23 points.

nasdaq for a time was in record territory. the russell interestingly enough lagging a little bit. >> flattish but outperformer since the election. president-elect donald trump has yet to announce his pick for treasury secretary. a leading contender former bank ceo john allison speaking with us here. two leading fund managers will tell us which small cap stocks they feel still has more room to run. we will name names. you're watching cnbc, first in business worldwide. is happening before our eyes. shift in human history sixty to seventy million people are moving to cities every year. at pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets.

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president-elect donald trump naming more picks to run his administration. john harwood is at trump tower in mid town manhattan with the latest developments and the passers by. >> reporter: it's raining meetings inside trump tower like it is raining on us out here. we had the coo of goldman sachs in to see the president-elect who campaigned against wall street. we had dan quayle come in for meetings a short while ago. we had two cabinet picks so far.

tom price, congressman from georgia, orthopedic surgeon. around his ideas of privatizing medicare will be controversial. we had elaine chow, former labor secretary named choice to be transportation secretary. elaine chao is the wife of mitch mcconnell. donald trump's potential business conflicts, she has a potential business conflict with her family's shipping company started by her father now run by her sister. that is likely to come up given the transportation department's responsibilities over shipping. no word yet on treasury secretary. you mentioned john allison is one potential contender. the front runner is believed to

be steve mnuchin. no word on defense where retired general jim mattis is front runner and commerce department where ross is believed to be the front runner and secretary of state is biggest one outstanding, intense competition between rudy giuliani, bob corker, senate foreign relations chairman, mitt romney is having dinner with the president tonight. we will wait and see what comes of that choice we expect it could happen by the end of the week. no word for sure. we know that donald trump is going to begin his victory tour to thank voters who supported him in cincinnati tomorrow night. >> which is a state he won by the biggest margin for ohio since 1988. >> i said tomorrow night. i mean thursday night. >> today is tuesday. it's been a long day for me, as

well. >> john harwood standing in the rain on fifth avenue. the cabinet spot does remain to be filled. our next guest has been floated around as a potential contender for that post. he met with president-elect trump yesterday at trump towers. >> there he is doing the red carpet walk. john allison we welcome former bb&t ceo. john, welcome. nice to see you. >> thank you. good afternoon. >> first tell us a little bit about what that meeting was like yesterday. who was in the room and what did you talk about? >> we had a very interesting meeting. we talked about how to get rapid economic growth. president-elect trump has a real deep commitment and belief that accelerating economic growth is a cure for what he considers is a problem with the middle class in america. that is really what his focus is. i met with president trump.

it was a very interesting conversation. two old business guys talking about business in a certain sense. >> you spent 40 years in banking capping off as ceo of bb&t. i want to explore some of your ideas that you would want to enact at treasury secretary which includes eliminating a lot of regulations that have come up in the last 20 years or so of the banking business and eliminating the federal reserve. can you confirm that for us? and why would you want to-do all of that? >> in terms of eliminating the federal reserve that is something i would like to do in theory. what i really want to do with the federal reserve is control. you have a powerful organization with no self-discipline for and had a big impact i believe on our economic volatility over the years. i think for monetary policy we

could go to some kind of rules-based system. there have been a number of proposed rules. that would help markets because the fed would be disciplined. on regulatory side i think dodd-frank has been a disaster for the creation of venture capital. i grew up as small business venture capital lender. it hurt the economic growth, i think in terms of the job creation and vitality that small businesses had and really impacts middle income america. i think we need to get the regulators off the banks and get the fed disciplined. >> the history of our country in the beginning of the 20th century was regulation would be imposed to only cure the most recent problem. the fed is an example of that. it was implemented in 1913 to correct the panics that we had in the economy. dodd-frank is a good example of that.

sarbanes-oxley is a good example. then you have the back lash against those regulations. isn't there some middle ground between no regulation and overregulation to some degree for the financial services industry? >> i think practically there is. i'm in favor of less regulation but we are not going to no regulation. as long as we have the federal reserve and fdic insurance you have to have regulation. the answer is allow banks to choose to have very strong capital positions that have less regulation. that takes the risk away from the taxpayer. that is what we are concerned about is taxpayers have to bail out weak institutions. when the financial crisis started the companies who got in trouble almost all were improperly capitalized. my company bb&t went through financial crisis without a single quarterly loss. let's let the strong institutions not be burdened and less productive and less

innovative because of excess of regulations. those who cannot raise the capital let's make sure they are regulated. that would give a huge incentive for companies to be properly capitalized. i think we would deal with the too big issue because businesses would have to rationalize. if citi group has businesses that are not popular enough they will have to shrink. >> some of this has helped light a fire under financial stocks regional banks up double digits since the election. jp morgan up 13%. bank of america up 20%. citi up 12%. there is hope of higher growth and inflation but the idea rolling back regulations, as well, bodes well for some of these big banks. do you think this rally has run ahead of iitself on some ideas or is it reasonable to expect this? >> i don't know exactly where we should be but there is a lot of

reason for optimism. while we have had a great rally a lot of bank stocks are selling for less than ten years ago. if is after a long period of time of very poor performance in the banking industry. so i think there is a good reason for optimism regarding the industry. particularly if you are optimistic regarding the economy. >> i am just fascinated by the lack of regulation in there. there is a certain degree of comfort that some consumers take by knowing that there is a back stop for them. you would want to get rid of deposit insurance. i know you want tomodify it and not eliminate it completely. i am curious how you feel the average depositor investor would feel if we do roll back so many regulations in place for so long in this country. >> i think that the average consumer would be better off in this sense. cost would go down because

regulatory cost is passed to consumers. credit would be available particularly at the lower end of the market place which has been hurt by lack of availability of credit and harder to get a credit card and harder to do a lot of things than it was. we can reduce deposit insurance significantly and 95% of the consumers in this country have less than $50,000 in the bank. so if you really want to protect -- >> one more point to this. i hate to interrupt you. i think of the millennials. these are the young people who grew up during the financial crisis in '08. these are people now who don't want to take risks with their savings. they are not investing in the stock market. they are putting their money into cash or someplace else and not taking risks. those are the people that don't feel the faith in the system and you want to take away some of

the props underneath that already exist to begin with. so you see where i'm going with this? >> i don't think millennials have that much money in the bank. they would still have deposit insurance. i don't think it is good that millennials don't want to take risk. i don't want them to take crazy risks. risk taking is what drives economic growth. we are not going to have economic growth so we don't want to incent everybody to be overly cautious. we don't want people to do foolish things in terms of buying houses they can't afford. we want to incent them to look at the risk returns and they will be better off taking reasonable risk over a long time. i'm a banker. i like having a lot of deposits. it's not good for economically or fair to people who might have all the money in the bank. i send them to buy stocks and bonds. >> you have said that marktds do

form bubbles but the fed makes them worse. we need a private free banking system based on market standard such as gold. do you still think that gold should play a role here? >> again, it's what i theoretically would like. practically we are not going to get there because there are a lot of gold votes. some of them aren't very sophisticated. the reality is that when we had a gold standard it worked extremely well but was an international standard. how we get back to international commodity-based standard i'm not sure. it would be desirable because it would impose discipline. the real purpose of central banks they were creating the finance wars. it allowed the government to borrow a lot of money to finance wars. rirts not a good situation to have governments be able to borrow too much and not have some discipline. >> you could argue that this is

a president-elect that will need financing for infrastructure and tax cuts. jim grant made the case yesterday i think he is like minded with you and says we are going to see this president have a traditional federal reserve with slow interest rates as we currently see them. >> i think we can borrow -- that is what the treasury does. that is different than bringing money which is what the federal reserve does. the federal reserve exists to control the money supply. the treasury exists to finance the u.s. government. you can finance through borrowing money. i think that is a much more economically rational way than by printing money. you have to separate the role of treasury which is to finance projects and the fed which is to print money. those are different roles. i don't think we are going to a gold standard. you have to discipline central

banks and that is why i think there is a rule for money supply. >> before we let you go just for the record because it is the question that should be asked, if you are asked to be treasury secretary would you say yes? >> i would have to think about it. it is a very exciting job. i'm in a very nice place in my career. i hadn't planned to take on such a big job. i would certainly consider it. >> sounds like you are thinking about it already. >> i'm sure he is. >> thank you. have a great day. a little over 30 minutes to go here before the closing bell and looks like we have this mini rally continuing in stocks. not a full recovery from yesterday's losses but the dow is up 23 points. s&p up four and nasdaq up 16. we added the russell is pretty flat. united health care the biggest gainer in the dow after raising guidance yesterday. >> when we come back we will have details on what is sending

tiffany shares higher today despite what it calls adverse effect on traffic at its fifth avenue flag ship store which is right next door to trump tower. >> unfortunate neighbor right now. coming up, newspaper stocks could be the big winners in a trump erera. we will explain next.

welcome back. to seema mody for a market

flash. >> you did report that a group approached german rival lind about resuming talks. the executive board is reviewing it. the previous round of talks between the companies fell apart in september. the merge recollect would create a gas giant worth more than $60 billion. these are companies to keep an eye on. >> 3% right now. thank you very much. we are heading into the critical last half hour of trade with the dow up 19 points just off the highs for the session. up next, two fund managers will discuss which small cap stocks are worth buying after the big post election rally and which ones you should be selling when we come right back.

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check out shares of tiffany higher despite what it is calling, quote, some adverse effect at its flagship fifth avenue store, the one located right next door to trump tower. the president-elect's home has been meeting of cabinet members and protests and heightened security. quarterly earnings beat and first increase in net sales in eight quarters.

tiffany saying it saw strong performances at stores in china and japan which helped offset weakness in the u.s. comps were still negative but not as much as expected. >> the store on fifth avenue is 10% of their business. >> which is unfortunate for traffic. apparently there is a back door entrance. that front door -- >> that's the selling point. tiffany on fifth avenue just sells itself. >> that made it hard for them to call an inflection point on sales and luxury spending in general which is looking better. >> they handled it very classy. time for cnbc news update with sue herera. >> here is what is happening this hour. police releasing video showing the after math of a charter plane crash in colombia killing 75 of the 81 passengers on board. three of the six survivors are players on a brazilian soccer team. no indication what caused the accident.

firefighters trying to contain a raging wildfire. at least 14,000 people have been evacuated and four people were taken to hospitals overnight with severe burns. the fires have burned hundreds of businesses and homes including the edge of dolly parton's dolly wood theme park. police believe arson is the culprit. overseas video showing a ferris wheel in japan catching fire. six people were on the ride in different cars but no one was injured. and it's officially becoming harder to become an uber or lyft driver in massachusetts than anywhere else in the country. starting in january the state will require all rides services companies to perform the most comprehensive background checks on drivers in the u.s. that's the news update this hour. >> speaking as a father, my daughter uses uber. i have nothing against stricter background checks on drivers. >> good idea. >> i always wonder about my

driver. >> the russell is back in green today after snapping the win streak. the index is up 11% since the election. can the small caps still deliver big gains? joining us right now the manager of the hood river small cap growth fund in portland oregon and craig hodges is manager of the small cap fund in dallas. thank you for joining us. what is your version for why we are seeing the rally? i get the financials and industrials and health care. small cap, is that because they are expecting less regulation down the road? what is going on here? >> that is part of it. going into the election i would say small caps were relatively cheap. so the fact that every wup was caught offsides with the gop sweeping the presidency, congress and the senate is very conducive to deregulation and the fact that small cap is

concentrated more in the u.s. so a lot of these measures you are hearing about benefit small cap companies relatively more. and on top of that rates are going up in the u.s. which advantages some companies like financials a little bit more and deregulation in health care is also good for bio tech and pharma. >> i would also think that they are more domestically focussed and you are seeing the dollar make a big move up again. 14-year high insulates them from that earnings head wind. is that part of your case? >> it is. there is a lot less that can go wrong in something that is domestic that you have the same accounting standards that doesn't have the earn currency risk. we probably have five companies come by a week and this is not a political statement at all but the last couple of years every single one without exception would tell you about how obama care was killing them, the regulations were killing them, the taxes were killing them.

and the fact that some of these issues may be taken off the table for small caps really has made them i think that is why you have seen the strength. i think it continues. we should have good news in that world i would guess for the next couple of years now. >> let's be specific here and get names. you got a couple of banks in western alliance and bank of the ozarks. why? >> i guess i feel like they trade at a discount to the group. the group is trading at around 16 1/2 times 2016 earnings. they are delivering above average growth. you can see upside for upside margins with steepening yield curve and you can see upside. and also if the stimulus works you will see better economy. if you layer that into 2018 these stocks are really cheap and i think you can get substantial upside from here even though the stocks have appreciated. >> i like that you point out the

prism stocks which i think you own. what do you do with that group now? >> we start to trim those. corrections corp has gone from 14 to 22 area. geogroup has gone from 18 after they announced the doj stuff. it has gone back into the 30s. i would trim some of the corrections corp. >> j.c. penney is a small cap now? >> yeah. about $3 billion company. a great turn around is going there. they will have about a billion dollars in ebita. so that stock could trade 20 on those earnings. here it is about nine. they have some great concepts. the sephora concept, the appliance area is bringing in a lot of people.

there is a lot of opportunity. they are doing all the right things and i see a nice turn around there. >> while we are inside your portfolio, is there an infrastructure play here? donald trump has said not just does he want to ramp up spending on america's roads and bridges and highways and airports, but that he waupnts to do it with american steel and american products. >> we have a lot of industrial names, a lot of infrastructure names. u.s. on crete is probably my favorite name there. it has been hit by weather conditions in texas. got about 40% of business in north texas. they are doing the la guardia project. 25% in san francisco. they are in great areas to be. another is a brand new ipo in water infrastructure. it was not a very good ipo, but that is our opportunity here. we feel like it is a kind of

unknown name. there are a couple of infrastructure names we like quite a bit. >> got to go at this time. good to see you both. thanks for joining us today. >> names we don't talk about very often. less than 25 minutes to go here before the closing bell. doesn't tell the story. a divergent of sectors in s&p. strong ones like health care. weak groups holding it back. the s&p 500 is up a little over 0.1%. president-elect trump has picked tom price to lead the department of health and human services. we will discuss which stocks could benefit the most from health care reform coming up. we will go live to the nasdaq for a look at which stocks are helping push that index to new record heights. when whirlpool builds an appliance, they put everything they know into it. but once it's sold, there usually isn't a way to keep improving that product. today, whirlpool can analyze iot sensor data

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they gave me a proper -- >> billionaire vestor willbert ross leaving trump tower. he is considered a front runner for commerce secretary in the trump administration.

that hat looked good on him. >> i didn't know they made them in camo. a new version of the make america great again hat. let's get to the nasdaq and get moovs. bertha coombs standing by. >> records again moving higher but this hasn't been the big p capor caporaly. the forces come from bio techs. the bio techs have really been the big leaders. health care today strong on the sense that with he will be much easier when it comes to the issue of regulation coming out of the health department. entertainment stocks also very strong, as well. a bit of a relief rally on some cable providers. at&t pricing that directv over the top screening up $35 a month really won't under cut them on

price and perhaps not prompt people to cut the cord. big caps continue to lag. apple is down for the month. ubs this morning with comments cautious about the prospects for iphone sales. >> thank you. so-called old media stocks have seen hefty gains since donald trump's victory. >> julia boorstin looks at how the struggling newspaper industry could be the big winner in the trump era. >> reporter: newspaper companies aren't just seeing higher stock prices but seeing a surge in subscriptions. the "new york times" adding 132,000 subscribers since election day. while trunk saw average increase of 29% in paid subscriptions during election week alone. >> i think the fundamental point, though, is that what we are seeing, i think, is a public response to a certain kind of

truthful journalism which in an age of fake news i think makes more and more sense. i expect that interest and that support for the journalism to continue. >> reporter: the "new york times" thompson is refers to the spread of fake news on social media amid concerns that fake articles influenced voters. as for concerns that the "new york times" and others won't be able to keep up growth momentum thompson says he thinks the news cycle will continue to be, quote, very lively. >> julia, thank you very much. quick shot outside trump tower. the red carpet, bald gentleman if i may call him that, chief operating officer of goldman sachs presumably after he met with donald trump we believe is a candidate for treasury secretary. >> we don't know what they were

talking about. what is notable about this meeting, of course, is that donald trump in the late stages in his campaign ran an add that targeted and bashed goldman sachs bankers and now he is after being president-elect meeting with the number two at goldman sachs. >> preelection and post election is two different worlds. mitt romney is up for state. >> he is certainly smiling. we just talked to john allison. he had a candid conversation about how to get america's economy growing again and said there is a lot of room for optimism. >> i guess he is going up. he hasn't met with him yet. that is why he was still smiling maybe. gary cohen going in to meet with donald trump. heading to the close with ten minutes left art cashin signaled. >> which could make a difference because we had a flattish market for the dow.

we had a weak closing yesterday. we will keep an eye on it for you with s&p up. with all focus on political cycle the next guest says the one in europe has potential, as well. and market watching tom mcclellan says enjoy the trump rally while it lasts. he explains why history suggests it could all end after inauguration day. what the charts tell us is coming up. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!

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seven minutes left with the dow up 22 points. joining us on the floor of the new york stock exchange is senior vice president of wealth management. i'm sure we will be talking more about this as the week progresses. a lot of things going on in europe thmpt referendum in italy being foremost. >> i think those issues may be discounted. seen a lot of negative trade on italy. i think there is a thought that

the vote will go negative. the question is what is the next step. i think when you look at today's trading activity i think there is something interesting to note. we saw sort of the concern that the political balloon may be. then we got the economic data and things turned. i think what that signals is that there is a bigger story than just the political issue here. there is a fundamental strength in earnings recovery. that should be a positive. >> one of the questions is if we do see some crisis type events, some shock to the system perhaps in the italian banking system can ecb clean up the mess as has been the story over the last few years. what is the word on that? >> i think that the issue becomes is it a regional effort? what is the scope of the effort and what is the attempt to create structural reform. i think the important thing to realize is we have seen a lot of chatter about this already. when you think about where the

euro is you may actually find that that discount becomes a tail wind for better return for the markets. >> he is shorting global bonds. he thinks rates are going up and even mario dragi said you can't keep them low forever here. >> you he has been very bullish on that. i would say this. when you see surging bond yields and stock prices at the same time we saw in 2013, 2009 and 2003 that is generally a good sign. if they get to 6% like i think he alluded to you will see the dollar go bankers and you will get head wind shatter. >> that's right. that would imply a 6% ten year treasury yield. that would certainly be disruptive. one more quick point. as long as you have bond yields below 3% or 4% you are in a sweet spot. you can get growth and get

people not too concerned that they have to switch to bonds sblmpt denot competition yet for equities. good to see you. >> we'll come back with the closing count down. we will speak with norman minetta with his reaction to trump's selection of elaine chou. approaching medicare eligibility? 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. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans,

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the count down bob pisani joining me here. the four major averages were higher but we are not going to set records today. >> the key things, the economic numbers, consumer confidence numbers really high and consumption numbers very good. i think that was a reason we held up throughout the day. >> here is the market to watch overnight that will be the oil market as opec gets ready for the long awaited meeting. priced down today. >> we saw the effect second day in a row declines in some of the big names. >> and i have been encouraged to show the dollar against the yen because it is the best month since 2009 as the dollar just continues to surge here.

>> i can see why the chinese are concerned and looking at the possibility of further capital controls. >> we'll see you later. we are back on track. we have much more coming your way on the second hour of "closing bell." and welcome to "closing bell." in today for kelly evans. here is how we are finishing up the day on wall street. looks like stocks recovered just a bit from yesterday's sell off. back in rally mode just a little bit, though. dow closing higher by a little more than a 10th of a percent. s&p 500 up a little more than a tenth of a percent. the nasdaq up by 0.2. the russell 2000 closing flat to a little bit lower on track for more than 11% gains for the

month. coming up on the show, tom mcclellan will tell us why the so-called trump rally may not last past inauguration day. joining the panel to talk about the market we have cnbc pro columnist michael santoli and joining us jeff davis. mike, the trading action today sort of flat on the major averages but beneath that the story of sector performance and under performance energy got crushed. >> energy was the outliar. i think the past two days you have actually seen the market kind of turn around and digest outside sector moves that we had. the overall market hovering right at those old highs. it reminds me a lot of the way we stood three weeks after post-brexit low. the market turned side ways with different groups. a little bit overbought.

a little ahead perhaps but i think the market is kind of hanging in there and retaining most gains for now. >> let's put this on the record now. the nasdaq had an intraday all-time high. bertha coombs with that. >> the nasdaq performing strong today and really on the back of a quartet of large cap stocks that hit all-time highs. charter and comcast, our parent companies shares hitting all-time high today. some relief there that at&t's pricing on screening services of directv is competitive with cable prices so people won't want to cut the cord. the chip equipments base and chips have been on fire all month. microsoft kind of bucking the trend. large caps have really been the laggards this month as far as large cap tech. the large cap tech etf has been one of the laggards.

small caps driven by bio techs. we did have the russell 2000 closing lower for the second day in a row. it was on a 15-day rally. huge run for the those small caps this month. >> bertha, thank you very much. some of the winners and losers there at the nasdaq. jeff, everyone is trying to figure out whether the so-called trump rally can continue. we will look at certain sentiment indicators. defensive stocks, transports have been leaders. you have sort of a bit of stories there. what are you looking at to tell us whether this rally has more steam? >> you can see it all across from utilities getting sold off as well as real estate investment trust and bond surrogates which have been dominating. it is not a surprise to see them rally back. i think you see banks lose a little steam. they priced in complete rollback

of dodd-frank in regulation. there is a bit of too much optimism built in. >> we get two sides. we get that where it is too much hope and too much pricing of policy and then the other side which is there is a lot of reason to be optimistic here considering the policies we are talking about and what kind of gdp we saw, the base we are building. >> the consumer sentiment number, that is volatile anyway. that is a pretty eye opening number. >> every new data point we get implies that the economy had momentum going into the election. if anything if policies help they are building off. >> just referenced this but the u.s. economy we did get word grew at the fastest pace of more than two years. will that fuel the next leg of the trump rally? steve liesman joining us. >> what a pleasure it is to be on set with my friend bill griffith. >> first time in a while.

you should have brought your guitar. >> i'm happy to anytime. this was a gdp number fuelled by the consumer. we will show you that in a second. don't get so used to this. this feels a lot like a snap back from flat numbers in the first half of the year. now we see these snapping more back to trend. gdp revised up to 3.2. that came because consumer spending was revised up. business investment revised down. what is interesting about those things those are areas that the new trump administration can improve upon inside the growth numbers. housing doing better than expected down 4.4%. it had been reported to be down more than 6. all that there is room for improvement here but probably not 3%. over at jeffreys they say the

u.s. economy generated momentum for faster growth prior to the november election. if enacted donald trump's fiscal proposals would shift economy. and amhers said this was propelled by better income numbers. one other aspect of the report. we get the first look at economy-wide corporate profits. the public companies and private companies surged up $133 billion in the third quarter. take a look at these numbers. you can see up to $2.15 trillion. that's a very good number. maybe anticipating what is going to happen. jp morgan writes we had been anticipating a turn around for profits but looks more rapid and stronger than we had expected. i know michael santoli this morning was looking at corporate profit numbers because they can lead the s&p numbers down or up.

>> a lot of good signs. i'm wondering the current quarter gdp estimates get revised on this number? >> some people brought it down a little bit. it is only -- they were looking for 3 and got 3.2. we are running about 2.4% right now with the october data in. november and december will be critical. we will be looking for holiday spending and consumer in terms of driving fourth quarter gdp growth. >> what messages do you get looking forward? >> especially it is the same one which is the market is starting to heat up as we got into election season. and then the question becomes what do you do if you pour fuel on that? in other words, is the bond market correct? just because of a group was doing, not necessarily because we have a massive swing in the fiscal deficit next year. >> we had the chart up earlier. 2.9% we have done a lot of work on how much error there is in

this number. the best way to do it is to average it over prior four quarters. what you see is we are running between 1.5% and 2% growth. not entirely clear. there is a meaningful acceleration. >> jeff davis we haven't forgotten about you. let me bring up the opec story. that is the story tomorrow. what impact does oil have on everything we are talking about right now? is it still a fundamental factor for the economy or is it low enough that it is not a factor at the moment? >> it is at a level where you still have a debt problem related to the energy business in the united states and there has been a lot of restructuring going on of debt service in the united states. you can't ignore the fact that oil is a bit too low for a lot of the businesses that are paying heavy debt loads and debt service right now. rising interest rates aren't going to help those countries at all.

oil prices that need to sustain above 50 in order to prevent problems in the midwest that were i think really a problem earlier this year. watch out for that. that could be some of the down side of the opec meeting tomorrow. >> opec headline risk we started a conversation this morning about the unpredictability of president-elect donald trump specifically as it relates to his twitter account and whether at all that was a vulnerability in this market. haven't really seen it. >> haven't yet. it is interesting it almost provides a pretty good test exactly how much the rally has been about truly a trump agenda or just about getting passed the election. you see erratic tweets that people thought would intervene in his ability to get things done somehow then maybe you would see excuse for a sell off. maybe that is all it would be is an excuse to say you don't know what is going to happen. i remain interested to see if

and how he tweets on friday about a jobs number because this economy is a disaster. >> isn't it creating journalism jobs? isn't there a 1:00 a.m. to 6:00 a.m. twitter shift for people in the media. >> i'm on that shift. >> nobody is going to be unstaffed at that time of day anymore. >> passed administrations journalists and others have been scarred for comments from a president had to wait for news conferences. now it is gone complete 180. >> tweets are not a replacement for a press conference. >> tell that to the trump administration. >> it's not the same thing. >> i'm thinking back to during the campaign when hillary clinton would tweet about high drug prices and the entire bio tech sector would sell off. i'm imagining whether it gets into the market territory or not. so far not so much. some of the uncertainties, there are uncertainties with the fed. >> we show continuously that the

market thought our respondents thought trump was better for the economy and hillary was better for the stock market. i think this notion of there being twitter risk or whatever you want to call it, just sort of aberrational risk in a president-elect who will say anything that can create volatility and down side risk to the market. >> we have to go at this point. steve, good to see you. >> good to see you, bill. >> jeff, is the full name jefferson? >> when i was looking for a job below the mason dixon line it was definitely jefferson. not here in boston. >> doesn't work as well there. thanks for joining us. >> you can tell he has been asked that before. president-elect trump has vowed to replace and repeal obama care and his pick to the health and human services secretary one of obama care's fiercest critics. we will look at winners and

losers from potential debt of obama care. noted market watcher tom mcclellan says investors should beware of the trump rally. why he says we could be in for a rough ride. he warned the stock market was suggesting a trump victory and he was right. that was right before the election. you are watching cnbc, first in business world wide. the heirloom tomato. when you cook with incredible ingredients... you make incredible meals. fresh ingredients, step-by-step recipies,

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very excited about the announcements today for health and human services. another announcement before the dinner hour is forth coming. it is just exciting to see the caliber of men and women that are stepping forward. >> so we are awaiting for the next announcement there as vice president elect pence announces around dinner time -- >> wonner what time they have dinner. >> my dinner is like the 6:00 hour. >> i was going to say -- >> he did tease us yesterday that we would get a bunch of announcements today. >> we have gotten some. >> they picked long time obama care critic congressman tom price. he will be the new health and human services secretary.

he long criticized how much authority the affordable care act gives to the federal government. with the possibility of reform along the way there could be stocks poised to win. >> and to lose. joining us anna gupta. hospital stocks have been big losers so far. have they been sufficiently punished given we have another clear signal from president-elect trump today that he is going to replace and repeal obama care in some form. >> i still think the sell off is not overdone. i wouldn't be stepping in here. the appointment of tom price it is clear with his political views on obama care that repeal is pretty much in place. the shape of replace is still unclear but broad strokes are beginning to emerge.

i think they will see more uninsured will come to emergency rooms and volume loss, as well. i wouldn't be stepping into the acute care hospital names here. >> i know you do it, too. yesterday they guided higher for 2017 and then the stock is up sharply as a result. we don't know what form the reformed aca is going to take. are they winners no matter what happens in the insurance industry going forward and health insurance? >> i think they will do well if we do get improved economy under trump's plans for expansion of jobs because more people have insurance. more importantly under what we have seen from dr. price at least so far, a couple of points he raised were quite beneficial to the insurers and united is not very expensive. the points i would highlight one would be getting rid of the age

premium limitation rates wran older person can only be charged typically three times what a younger person pays for insurance. if they get rid of that band and allow it to widen then there will be greater profitability for the insurers and giving people more choice than tax credits could drive more business to insurers like united health care. i think there is limit down side from here for the companies and with some sort of modification to the affordable care act i think the upside could continue. >> what is your base case for what types of changes to the affordable care act we get ranging from just modest tweaks all the way to medicare or whatever paul ryan. >> i think for the first thing they will do is defund obama care. there are taxes, cadillac tax. taxes on the pharmaceutical industry, device tax, insurance tax, all of that will go away.

in terms of what is used to replace that i think it will be more decentralized expansion through medicaid at the state level. the appointment of tom price and then cms administrator would suggest that the broad strokes approach might be that of healthy indiana with some funding from the affordable care act. so i don't think they will roll it back all the way. but there will be a lot of clawbacks in the benefits, the subsidies will be reduced and i think the number of insured will come in. >> are the bio tech, drug makers in the clear here when it comes to crack down on higher prices for drugs? >> i think that they are no longer vulnerable to what would have been the most significant and only negative which would have been had medicare been allowed to negotiate pricing

directly with the drug companies rather than the way it is set up now which stunted the insurers. the drug companies whether they are traditional companies or bio farma stocks have done not well this year because of concerns like you were talking about before with hillary clinton's comments and i think now that they are out of the way we have a sector that is poised to grow at a very rapid rate based on disease prevalence, not based on price hikes and are valued very, very conservatively, the ones i highlight which i think have incredible pipe lines, very good valueuations and i think this left the sector as they have looked in other areas that might benefit from trump business expansion, the day trump announced as being elected they did have a favorable reaction. after that they have been put out the back. i think they are going to do

awesome. >> this is a category we can spend a whole hour on. thank you for joining us today. good to see you again. thanks for joining us. protesters fighting for a higher minimum wage taking to the streets today across the nation. fast food workers and other minimum wage employees causing disruptions. we will tell you what they are demanding and whether there is any chance that the incoming trump administration will listen to them. president-elect trump has promised tax cuts for everybody once he takes office. but his proposals could have a huge impact on wealthy americans this year as you can imagine.

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and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. minimum wage workers launching a national day of protest across the country today. susan lee joins us now with the highlights. it was a rainy day. >> which stopped the protest. >> it was meant to basically start really early in the morning which it did and then ended. there are two prongs. the first was lower manhattan and then at noon they were at newark airport. it was meant to be across 340 cities. not only new york but rallies in chicago, san francisco and then you throw in 20 airports. the fight for 15 movement, this is the first national rally for this group since president-elect trump was voted in and that's not really a coincidence since part of the goal of this was to

make sure the message was loud and clear for the incoming administration. in fact, the group's national director told me membership has grown since the election. >> the fight for 15 was powerful on november 7 and i would say we are more powerful now. more groups joined and more folks are getting involved because they feel this is the time to show the country that people aren't going to let people in power do whatever they want to do to people who are working every day. >> in lower manhattan they got started pretty early as workers had to move on to shifts that they had to work in order to make ends meet. members from fast food and uber drivers joining in for the first time arguing for higher wages. union rates and better benefits. the movement does have supporters including vermont senator bernie sanders tweeting seeing change always happens when millions of people demand it.

when the american people stand up and fight and win. research says if wages go up more jobs are lost. research was done in 2014 and said even a move up to $10.10 an hour results in half a million jobs being eliminated either through automation or restaurants closing down. >> what is the likelihood this happens? you get a republican in congress and the honeymoon will only last so long with the new president here. >> i do think in terms of $15 nationwide there is no chance of that happening. the hillary clinton proposal of minimum wage hike seemed off the table. the restaurant sector has outperformed since election day. on the other hand companies are feeling compelled in certain markets. ceo of target on here a couple of days ago saying proudly that it is a great place to work because they pay above minimum wage. >> and clearly the movement is

growing. >> absolutely. as you heard from the national director of fight for 15. momentum gained since november 8 since we have a republican-led government heading into january 20 who seem to be more business friendly than worker friendly. >> susan lee, thank you. always a pleasure. still to come here the trump rally continues. the dow now up by more than 4% since slaeelection day. our next guest says there is indication the rally will come to an end after inauguration. tom mcclellan straight ahead.

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welcome back. we'll show you how we finish the day on wall street. the dow finishing the day up 23 points. nasdaq was in record territory for a time up 11 on the close and the russell which had been on a tear in 15 straight days of gains. yesterday that was broken and today down another 1.6 points. vice president elect mike pence just spoke to reporters a few minutes ago. >> excited about announcements today for health and human

services. another announcement before the dinner hour is forth coming. it's just exciting to see the caliber of men and women that are stepping forward. >> so we are waiting -- we heard about health and human services with congressman tom price named to that position. we haven't officially heard about transportation secretary but are expecting that to be elaine chou. let's send it to seema mody for a quick earnings alert here. >> take a look at shares of splung after hours. an upbeat earnings report. 12 cents adjusted. revenue topping expectations as the company did sign nearly 500 new. the u.s. department of homeland security. guidance looks good and seeing

shares active here in trade. >> thank you. we'll keep an eye on that one. >> splunk. >> time now for a cnbc news update with sue herera. investigators finding the black boxes today from that charter plane that crashed in the colombia mountains. 75 of 81 people were killed. three of the six survivors are players on a brazilian soccer team. red cross reporting about 20,000 syrians fled aleppo in the past two days. yesterday hundreds of people from there arrived in a humanitarian camp on the outskirts of the city. the second tallest volcano in mexico spewing more ash today into the sky. a mexican agency reporting the volcano exploded five times in the last 24 hours. that volcano is less than an hour away from mexico city. and the new york mets making

an outfielder one of the highest salaries on record. there are reports that cespedes is on the verge of signing the contract to stay with the team. he is 31 years old. >> baseball expert sitting next to me, michael santoli. >> i am wondering -- i think the mets had to do it to keep the fans happy. they have acquired the guy three times in three years. >> they have. >> look a boom rang. >> he has to pass a physical. if he passes his medical exam he just has to sign on the dotted line. >> that is a lot of money for a 31 year old. >> it's a lot of money for anybody. >> let's face the fantasticcts. the trump rally took a brief pause yesterday. the rally might only last until

inauguration day. >> he is tom mcclellan. he has been tracking how markets typically behave when a new president is coming into office from a different party and joins us now with more. tom, what did you find? there is more hope than what comes to fruition? >> there is a lot of hope when you get a new guy coming in especially from a different party because everybody assumes that whatever is wrong is going to get changed or fixed by the new guy. even though nobody is doing anything yet in terms of governing all the hopes of all the fixes and repairs to everything that is going wrong are being attached to the new president-elect and people are happy about that and so they do stock prices up. and then on the 21st of january the mood starts to sour and we have to face reality of we have the problems and it is going to take longer to fix them. that tends to bum everyone out so they sell their stocks. >> let's go back to the chart.

that is a forecast. that is not reality yet. you're a cycles guy. your father was before you and what you are looking at here is a presidential cycle pattern that typically happens the first year of a new term for a new president from a different party. is that the idea? >> that's right. we are chopping up the s&p 500 history, averaging them together and selecting only the ones that apply to the criteria we are looking at and then you typically get a lot of hopeful elation in the honeymoon lasting until inauguration. the other thing that is really regular when you have a brand new president from a new party is that he will typically find out once he is in office that things are worse than he told us and the only solution is whatever package of tax hikes or cuts that he waupts to get through congress. bill clinton did it when he said

we were in the worst recession. he said the only solution was a $20 billion package to reward the campaign contributors. congress declined to do that and we got along fine. investors don't like hearing that things are worse than expected and it tends to depress prices during the first year of a new term. >> you know the state of pushback. by my count there have been eight new presidents from a new party since world war ii. you are not necessarily talking about an enormous number of representative samples here. i guess that is one question. at what point do you think the election effect is waning as an influence on the market once we get into the inauguration period? >> it will continue that he is going to fix everything until he is in office and isn't fixing everything. if you think back to 1999 when we were in the middle of a tech bubble, internet earnings were entirely fabricated and im imaginary.

the bubble peaked on the day when yahoo announced actual earnings. everybody said really is that all? it's the same thing when you get a new president. there is all sorts of hope attached and then once he takes skpaufs everything doesn't get fixed already people say is that all and we still have the problems and then that tends to reverse on what they were all thinking and expecting and optimism that was during the honeymoon period. >> before we let you go you like housing. you think that is a sector that will benefit from the new economic climate here right? >> i do for the next year for a couple of reasons. number one, housing stock prices tend to follow in the foot steps of lumber prices with about a one-year lag. over the last year we saw lumber prices trending higher and we should see housing stocks trend higher. there is a big fundamental driver. zillow says that 33 years old is the average age of a first-time

home buyer. the peak of echo boom was 1990. those kids are 26 now. they are just now coming into the peak timeframe of buying a first-time home. we are not yet to the crest of that birth rate from 1990. so when those people start turning 33 look for the demand for new housing and the millennials all like new stuff to see a big surge. some of the early will be buying in now. >> a lot of people, economists, strategists have been looking at the reagan rally wondering if there are parallels here, lower taxes and that sort of thing. i guess the conclusion is we are coming off of a multi year bull market, rising rate environment. do you see any parallels between the two? >> when reagan was in office he was trying to whoop inflation by having interest rates in the

double digits. there is one better parallel when talking about expectations from a big infrastructure pa package. people refer back to the 1950s when eisenhower signed the interstate highway bill. the week that eisenhower signed that bill, that was the top for the market and we entered a bear market. same thing happened in 1961 when kennedy said let's send a man to the moon. that month was near the top and we ended up bear market with 27% decline for the dow. just because you hear of infrastructure spending that everyone says and everyone expects will be stimulus we look back and find the actuality is not so much. don't get your hopes up too much. >> tom, always good to see you. thanks for joining us today. tom mcclellan joining us from seattle. speaking of infrastructure donald trump said he wants to see a trillion dollars spent to

revitalize the country's infrastructure roads and railroads and airports and reportedly said to pick elaine chou as transportation secretary, a former transportation secretary will be joining us to weigh in next. it's a mouthful. first impressions are last impressions and that is especially true when interviewing for a job. how one woman saw a problem during the hiring process at her business and used technology to fix it. great story coming up. you're watching cnbc, first in business worldwide. the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile... even when i'm on the move. sign up at etrade.com and get up to six hundred dollars.

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call now! president-elect donald trump reportedly planning to nominate elaine chou has transportation secretary. phil lebeau has the details in what could be a pretty high profile post given trump's plans. >> certainly an important one. we will talk about the infrastructure plans at least the wish list for the trump administration in just a bit. when you are talking about elaine chao i think when the announcement came out when people said he was thinking about picking her people said that makes sense she has experience in the cabinets for george bush and george herbert walker bush. she served in that administration, as well. when it comes to the wish list for the trump administration that is what she will be asked to shepherd through capitol hill if they are trying to get the $1 trillion in projects to be funded. rebuilding roads, bridges and

ports, the roads and bridges rebuilding those, a lot of those are shovel ready. ports has issue there. you always hear people complain we have terrible airports in the united states we need new airports. we haven't had a new one since 1995 for a variety of reasons including the fact that for the most part many municipalities are land locked and airports are huge revenue generators and that means everybody has their hand out, the states, cities, a lut of different parties including airlines using the airports. they want to make sure they have a say in those being developed. when you are talking about elaine chao it is easy for us to say we should have all new airports. it is a lot tougher for that to actually happen. it will be interesting to see what happens if she is transportation secretary. most believe she will be approved for that cabinet post. some brought up the fact that there might be conflicts of

interest given the fact that her father started a shipping company and her sister runs. given her background in washington and the fact that she is married to mitch mcconnell and she really is not a controversial figure she will likely get approval. that is the expectation. >> phil, thanks very much. let's talk more about this and more on president-elect trump's choice for transportation secretary, norman mineta, a former transportation secretary under george w. bush. mr. secretary, good to see you again. >> good to be with you. >> first of all, just on the potential conflict of interest do you think that will be a problem for her given her family ties in the shipping business? >> i think they can shelter that whole issue so that she doesn't have a conflict and the federal

maritime administration can handle a lot of the issues that are dealing with ports and so i don't think secretary chao would have to necessarily get directly involved. he is an outstanding business person and has really kept the relationships between the united states and various asian countries for a very positive way. >> so do you see her as a good pick to become a deal maker in what could be a contentious political issue. sure everybody likes the sound of rebuilding roads and bridges. the question of how to pay for it in the past has divided parties has been a pretty hot button political topic. >> i think that is where the trump administration is going to have to work with the house and senate to come up with a funding program for the trust fund.

the highway trust fund essentially is going broke and we need a substitute for the gasoline tax. that is 18.4 cents a gallon. that hasn't changed since 1993. and yet the cost and the needs of maintaining and building new are terrific. >> what's the impact on jobs? that really is the main underlying theme here, the reason to want to build up the infrastructure other than the fact that we need to do that anyway is to create jobs. what impact do you think that would have depending on the size and scope of the plan that they end up with? how many jobs are we talking about here, do you think? >> i'm not sure how many jobs it will create but i know that it is all across the economy whether attorneys working on programs for contracts or engineers and architects, construction workers. it just impacts on everyone and

i think it is a very positive kind of a jobs program and the president-elect has been talking about infrastructure. i think we have neglected some of it in the last several 10, 12 years. so this is an opportunity to help rework those programs and build current new programs. >> thank you for joining us. >> former transportation secretary of the united states as we await news on that cabinet post announcement. donald trump has promised to lower taxes for everyone. up next, the big impact his plan will have on the wealthy before he is even in the white house. >> first, watch out san francisco. new orleans could be the newest tech hub in america. how the big easy is transforming into the silicon bayou when we come back. guys, what's happening here? hey nicole,

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teleconferencing, nothing new. but tele interviewing, turns out, only a few years old after an employer noticed just how many people were absent from scheduled interviews. our kay rogers is in new orleans with a look at how that technology is reshaping the entire hiring process. kate. >> hey there, sara. that's right. entrepreneurs like crystal mcdonald's are hoping to usher in a new era in new orleans post ka at that time rainy. she went to issue and hire people for hourly wage positions. a lot of times, they just wouldn't show up for the interview. so in 2013, she launched a company called acru that allows for the first-impression videos in the hiring process.

>> there really wasn't a lot of innovation in the hourly wage space, so that's what we really focus on is targeting employers that are traditionally high turnover. >> they reached half a million dollars so far and worked with 10,000 interviewees across the country and power moves, a boot camp focusing specifically on minority entrepreneurs and getting their ventures off the ground. >> new orleans is the -- i think the best example of resilience in entrepreneurship that our country has seen. especially post katrina. we have through an unfortunate circumstance seen great fortune and coming together to rebuild. >> so crystal is part of, as you mentioned, a growing group of entrepreneurs here in new orleans or as they're nicknaming it, the silicon bayou, guys.

back over to you. >> kate rogers there in the big easy. thanks for joining us. by the way, if somebody doesn't show up for a scheduled interview, they just don't get the job. i mean, i'm not -- saying she's got a bad idea. >> solutions to that. >> whatever. by the way, happy giving tuesday, everybody. the day that people are encouraged to donate to charities of their choice. when we come back, why donald trump's tax plan may boost those contributions from top earners in the big way this coming year. and coming up on "fast money," next hour, hedge fund manager, robert raymond says oil is heading to 70 bucks a barrel. he'll explain why he's so bullish as oil dropped today below 46. that's at 5:00 p.m. eastern time on "fast money." come on! why doesn't verizon offer unlimited data like t-mobile? is it because their lte network was built six years ago?

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2016. those two of the changes that trump's tax plan are already having on big taxpayers. his proposal, of course, would cut that top rate from 39.6% to 33%. it would cut the cap gains rate from 23.8 to 20 and the corporate tax rate and the rate for pass-through income from 15 to 35 and eliminate the estate tax. this all has to pass congress. but tax advisers say the wealthy are already front-loading their charitable giving to this year, because they get to deduct more money than if they would under the trump plan next year. so we could see a big jump in big dollar gifts, just in november and december. especially with giving tuesday. now the wealthy are also pushing income into 2017 by postponing big sales of real estate, stocks and other assets. that's because the potential drop in the capital gains rate. the saying among the wealthy these days is pay me in 2017. that could lead to a large drop in reported income, and here's

the catch. a big drop in income tax revenues in 2016 since that cap gains amount for a growing share of both tax revenue for states and the federal government. that's the hidden thing here, is that we could see an unexpected drop in federal tax revenue, because all of that income is going to be shoved into 2017. >> good point. i'm just curious how charitable giving has trended over the past few years in this country and where we are. >> it's -- last years was the first year it was back above where it was precrisis. so it sort of crept along steadily after 2009. last year we were back to precrisis levels and it was a record. it was an all-time record, more than $300 billion in giving. so, you know, we could be up again this year, maybe even more. >> you don't think there is any hesitation for people to just assume that, in fact, these lower tax rates are going to prevail next year? >> there is some risk. >> worst-case scenario. >> exactly, exactly. but now the big risk they're not taking is on the estate tax.

there could be a change there, but you don't want to mess with your estate planning and have to redo it next year if nothing happens. >> you don't want to just choose to die this year. >> correct. never a good idea. >> now your beat is the wealthy. the average american, you wonder. if they're going to pick up their contributions this year, as well. right? yeah. >> front-load them. >> i also wonder whether there is an impact on the market. you could see people a little more reluctant to sell before january 1st than they would be next year. so there could be a market impact. >> because that is a pretty hefty decline in the capital gains tax. >> it is. and for income tax, by the way, it's the largest decrease for the top rate since the reagan years in 1986. >> the middle class, though -- >> a little less. they still get a cut. not quite as significant as the top. >> and the reagan years was coming off of 60-something-percent. >> 70% to 28%. that was a big cut. >> we were just saying, we're getting so many e-mails, cybermonday, giving tuesday e-mails.

flash sales. >> this is the fifth annual giving tuesday, very institutionalized. for sure. >> good marketing. people should give. >> thank you, robert. >> thank you guys. >> good way to end the show. >> what do you say, we do that? that's it for "closing bell." thanks for joining us. the three of us will be here tomorrow. "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square, i'm melissa lee. pete najarian, sg, karen finer man. a top technician says there is another group of stocks about to join the party. he'll be here in just a few. plus, oil sinking today ahead of tomorrow's big opec meeting. the hedge fund manager who calls the collapse in natural gas a couple years back says i'm is heading to 720 bucks a barrel. he'll explain why and when. and later, you will not believe the reason why some beer stocks have gone, well, up in smoke. it's a provocative call from a top analyst, and