term short fing er for donald trump. >> i have brought my 10,000 rat. send us rally cap pictures to twitter. is this good luck or bad luck? i don't know. thanks for watching power lunch. "closing bell" starts right now. hi everybody and welcome to "closing bell." i'm kelly evans. i'm at the summit today. >> i'm in for bill griffith. we are watching dow 20,000 today. came close within 48 points earlier. some late day weakness in industrials and tech sector weighing on the dow. we will look at potential buying opportunities in the tech space coming up. over here at the ceo summit we have exclusive interviews

coming up including with fleming, valiant ceo and former barclays ceo bob diamond. >> let's get right to the market. joining our "closing bell" exchange today we have joe drant from united capital. our own rick santelli as he is here. he at the cme. jonathan, i get to you first. we get closer and then we back off. why? >> i think everyone was clearly waiting for the fed yesterday. i think the euphoria might be pulling out right now. no real conviction to get into the market. no real conviction to stay in the market. we have seen it gradually move higher and higher. i know the 20,000 number is a psychological number. we have to disconnect ourselves a little bit from that. we have to look at where the market has been and if we are going to get the santa claus

rally. >> and some big moves in the currency market. what are you thinking in terms of strength of the dollar? >> absolutely. that is one thing that the markets have right now with conviction is to buy dollars. the fed was more hawkishly expected. the markets believing them. we ended with a hike. the fed said they would hike four times this year. they only hike once. next year the fed is saying three times. i think it is more than that. it is very dollar positive. monetary remains in play. >> i want to push back on you. you said there is no real conviction to get in, no real conviction to stay in. why would you get out? >> because everyone thinks that they are going to be able to time this market and get to a lofty top. if you look at companies, some are overvalued. as this market continues to move higher and higher the sellers are waiting for an opportunity to jump into the market and start selling it. that opportunity has not occurred yet.

i think people were waiting for how the market was going to react to yesterday's announcement. go back a year ago. the first day the fed announced the market reacted positively and then we went on a slide. i think people were looking to see today if there was going to be some sort of follow through to the upside, if there was selling pressure. as we get closer and closether excuse might be coming off the table. >> joe, are you concerned about or encouraged by higher interest rates? >> i'm concerned mostly because this has been an incrediblebly frustrating ralry for average retirely. if you have half your money in stocks and half in a bond you scoff set gains by decline in fixed income. that is probably not going away. what i think you are seeing is people actually reallocating equities. what is really driving this is reduction in the amount of regulation which is like a

business tax. while i'm not sure the whole stimulus package that trump would like to get through will happen it will scale interest rates and i think yellen is under estimating how many rate increases are going to happen. all of that great for the dollar, not great for large caps. really good for small caps and regulated industries like energy, health care and financials which is where the strength has gone. many of the losers from the last few years have become the winners including fixed income. that is probably not reflected in people's portfolios today. it has been more frustrating because a lot are not allocated. >> bigger story in the market today. what yellen and company said and did yesterday or the dollar move today? >> i think that no matter what janet yellen and company do if they don't do enough the curve is going to steepen more because ten year will have to do the job

that they aren't doing on the short end. >> you don't think they were aggressive enough? >> first of all, if aggressive is being defined by how many rate hikes they think the record is dismal. they are along for the ride. they are superglued to the bus because they are the driver. you don't want to under estimate how much the market can make up for a lazy fed and i think all roads lead to a stronger dollar. it is a matter of how aggressive it is, which companies it takes the biggest tol on and which companies can make up the difference. >> and you were saying you can see it go up another 10% or so next year. are you concerned about any emerging markets that that might impact? i guess it would be a benefit maybe. >> for the emerging markets higher u.s. interest rate story

is very negative for em. we saw that back in 2013. i think we are in early stages of something similar. i think the curve will continue to steepen. we are optimistic on u.s. economy. a little worried about inflation. certainly the fed has a lot more connection now than a year ago. i think that is why the market is starting to believe them. again, i think there is risk of more hikes. that is a developing story. emerging market currencies is under pressure. some are hiking. really rocky 2017. >> what do you think the bigger story is? the fed yesterday? should they have done more? should they have gone a half point? >> i think they would have done more harm if they had done more. they had the ability to do this in lock step. they just need to follow through. they said 2016 we would be three to four hikes and got one. they are saying three or four next year.

they have to stick with that. the economic data that they are so dependent on supports it and i think the investing public could feel much more confident if we see that schedule. thank you. banks are rebounding along with the broader market after yesterday's losses. they are up about 18% since the election leading the pack here generally hopes of deregulation under the trump administration among other things. president-elect trump named a number of wall street alumni to his cabinet and inner circle. joining me now in an exclusive interview is greg fleming, former president at morgan stanley wealth management. a senior research scholar at yale law school. you are unshackled by the confines of wall street. you can speak very freely now. >> great conversation. >> first of all, is your jaw just dropping at what is happening with the financial

snz. >> i think the financials are benefitting fraup a couple of things including the prospect or promise of deregulation which is clearly something that the president-elect has pointed towards. and at the same time you have higher rates finally and as rick santelli said if anything i think the fed has been slow on raising rates and maybe following the bond market a little bit now. i think you have at least three more rate increases next year and the steepening yield curve will help earnings a lot. >> thinking about deregulation and the tussle between big banks and small banks they often have different political views and different -- in a way there seems to be almost a war of words sometimes. so if the idea is that trump will div deregulation does that favor the smaller banks more than large banks? how do you see that playing out? >> i think mr. trump has been clear that he is more focussed on community banks and on what the community banks can do on a local basis.

having said that, the whole case shifted from a regulatory standpoint. it is not simply regulation that will be pulled back. it is mindset of regulators and the fact that the heightened regulation that came out of the crisis and continue to increase over the period the pendulum went far out this way and is clearly coming back for financial institutions of all sizes. >> do you think dodd-frank is done for? did you have a sense of what is going to be the first things that they will chip away at? >> i think they will put all things under the microsoft. there will be delayed implementation. i think -- i get the question whether it will be just repealed. i'm not sure that you will have widespread repeal of regulation but you may have some pulled back. part of it is not just the regulation itself but the way the regulation has been implemented by regulators and the perspective of regulators. i think the trump administration or the incoming trump administration is focussed on changing that attitude on the

part of regulators. >> if you had to guess the rule big deal. it is supposed to go into effect i think in april. people have been scrambling and trying to figure out compensation schemes and otherwise to adjust. is the rule going to get thrown out with all of this? >> what is likely is it will be delayed and they will look at and there will be changes whether thrown out wholesale i'm not sure. but my view has been throughout this that a rule that came that applied to all accounts, not just retirement accounts, apply to individual accounts of any kind is the right way to regulate in that space if there was regulation. maybe something like that will happen. that will most likely be a minimum delay. >> we have seen the huge rally and a lot of debate about whether it can keep going. is it the idea that there will

be less regulation or look what happened with interest rates. if that was the only thing that happened the outlook would be what it is now. >> i would have answered rates most times in my career. but the regulatory pendulum swung so far in one direction. i think there is enormous relief across different kinds of businesses, not just businesses that are rate sensitive from a regulatory standpoint. i think it is probably close to 50/50 which is quite a statement about what happened from a regulatory standpoint. >> is there a sense that now the hopes are so high that it has gotten ahead of the reality of what they can deliver? >> they are not in office yet. i think there is a lot of anticipation around a roll back both of specific regulation and legislation as well as the way it is implemented. >> good to see you again. >> hey, scott. good to see you. >> i have a question about the market itself. we are watching this creep

towards 20,000 on the dow. i'm wondering given your experience on the wealth management side of the ball how you think retail should view dow 20,000. is it more than just a number given how fast we have gotten here since the election and the feeling and change of tone, if you will, that seems to be in the market? >> you know, scott, and you have looked at this a long time as well. retail will be balancing two different sides of the equation. one is from a pricing standpoint you are looking at multiple of the market of 22 times trailing earnings. there has been extrapolation between now and when president reagan took office the first time and parallels. when president reagan took office for his first term the trailing market multiple was 9, not 22. retail will be looking at that and seeing the quick move up. at the same time they are going to be and financial advisers are looking at a lot of positives

which is the clarity in washington. it looks like things will get done and positive. there is more of a positive view around business and as kelly said earlier you have business leaders going into the administration. then there is fiscal. there is going to be potential tax reform, tax rollbacks, bringing corporate money overseas back. those are all positives that retail and financial advisers are looking at. at the same time on any ordinary benchmarks in the face of the fed the market looks expensive. that balancing is what retail is very focussed on. >> you surprised that the market has done what it has since the election? >> i think, scott, i don't know who answers you and says no they weren't surprised. i would tell you that 99% of people both experts in the market, investors across the landscape are surprised with the

severity and the amount of the move since the election. >> but you in academia where people were shedding tears. what is your personal view on all of this? >> i think that the new administration has not even taken office and there is an awful lot of optimism. i view a lot of that optimism placed before the election in the sense that i thought the economy was doing very well and the fed was late on raising rates. we are in the seventh, eighth year of an expansion. this is the fourth longest expansion in history, in modern history. in february will be the third. in april of 2018 it will be the second. if it gets to the middle of 2019 it will be the longest economic expansion in history. some of this is a little bit frothy ahead of the curve particularly given head winds that we have. >> and unprecedented. thank you so much for taking the time to join us here.

greg fleming. thank you so much. we have a news alert on trump transition team. dominic chu has details. >> i certainly do. we have nine new additions to president-elect donald trump's transition team to help him get going and get those first 100 days going and kicked off. among notable names on the new additions to the transition team, none other than oracle ceo safra catz, a woman seen with president-elect donald trump both at tech summit yesterday as well as times before. you may recall just after the election when donald trump had won safra catz was talked about as a possible cabinet member. she has been named to the transition team for donald trump. interesting development on the technology and business front on that. back over to you. >> wow. dom, what is her position?

does it give detail about what her role will be? >> she will be part of the executive committee members. there is a long list of people on the committee right now. there are dozens of people on this particular list including peter thiel, donald trump jr., the idea that safra catz is part of the team in a formal capacity an interesting development given optics of the tech summit yesterday at trump tower. >> exactly. thank you. about had 45 minutes to go into the close. we are seeing a rally. there may be a rebound given declines we saw. dow up about 70 points. s&p up nine. russell lagging. much more to come here from yale ceo summit. valeant shares falling. the company's ceo will join us.

later bob diamond gives us his take on the trump rally and whether it has diverted funds away from alternative investment areas. you're watching cnbc, first in business worldwide. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.

i want you to look at the dow 30 heat map. goldman sachs, jp morgan. dow within 50 points, could not get there. up by 70 points weakest performer today is nike. >> wow. another tough one for the apparel company. shares of valeant today. decreasing stake in the company to help generate a loss from tax purposes. joining us now in a cnbc exclusive here at yale ceo summit is valeant ceo. you are such a battle ground stock here. it has been a tough year for valeant in so many ways. what are your main objectives

for 2017? >> well, first and foremost i think what we are going to focus on is continue to make a difference in patients' lives. if you think about what we try to do it was about getting a new team together. we hired somebody this week who comes with the head of our dermatology business and great experience. i have great experience there. hired a new cfo. getting the team together is really important this year. now we together as a team i'm confident we can focus on new products. that is what 2017 will be. >> how does drug pricing fit into all of this? donald trump just mentioned it again in the time interview and you had high profile issues with this. how much pressure do you expect on pricing front? how does that change how you are going to be profitable?

>> i joined back in may. within two weeks i put together a patient access and pricing committee with the concept of making sure that patients have access to our products and importantly we do the right thing on pricing. we came forward with a pricing policy that was meant to take a look at what had happened in the past and not repeat the mistakes of the past. we have a pricing policy that will stay single digit pricing and be within the pharmaceutical average. >> so there were a couple of heart drugs. one is going off patent now but is a large share of profitability. this generic competition, what happens when it comes to the floor and take as big chunk out of the bottom line? >> we had two products, two products we expected in november. did not come down yet. we did see an approval occur for

that but not yet launched. we built it into our numbers and are clearly looking forward to moving forward with not just those products but really the new products in dermatology, consumer. >> that is what valeant was about. the heart drugs were a bit of a departure. you had creams and skin care and these nichy parts of the pharmaceuticals industry. can we expect more of that going forward? >> absolutely. i am focussed on the pipeline. for me the pipeline is how to help the patients and make a difference in patients' lives. i have a new product that is one of the most effective products for the treatment of psoriasis. we are awaiting fda approval. if we can get that product to the market we hope to make a difference in those patients' lives by bringing out an effective product. >> the incoming administration is talking about repealing obama

care and delaying it. there is going to be more in flux in terms of how people are getting insured. you guys kind of go around that when it came to your particular relationships to get the drugs into the hands of people who wanted them. explain how what happens with obama care effects valeant. >> in the past we had relationships we worked on. we very much now are focussed on conventional pharmaceutical marketing programs, patient access programs. we have come full circle and right back to what really is the bread and butter activities of pharmaceutical companies. that is the focus for us continuing to make sure our patients have access to the products and come up with a novel agreement with walgreens which allowed patients to get access for our products. we are trying to come up with new innovation to help patients make products successful. >> you mentioned allergon

earlier. that is a company in the area of there are different parts of pharma. there is dermatology and a lot of synergies and history between your two companies. would allergan being a good fit for valeant? >> i won't speculate on that particular question. i would simply say that as we look at it we are going to stay focussed. we will stay focussed on the core products on dermatology business, more of a niche product. we will focus on eye care. that is a focus for us. we are going to focus on gi, gastrointestinal drug. i think plus consumer business will be the core. i am excited to keep going forward and '17 will be a new year for us. >> what is your relationship

like for new shareholders? bill acman give you a heads up? >> bill has been wonderful shareholders and part of our board of directors. they have great comments and have been helpful to me. certainly it has been a chance to really rebuild the team, rebuild the product portfolio especially new products and take activities to try to pay down debt. we are going to operationally improvement but we are looking at noncore assets. that is something we have been working closely with bill. >> scott has a question. >> it's good to talk to you. you mentioned salex as being an important product to you. pen was almost going to paper on a deal to sell it before it fell through. i reported at the time that one of your largest shareholders, john paulson was against that

transaction. are you on the same page with your largest shareholders as to what your future should be? and will you continue to sell what others deem to be incredibly core and important assets to your company? >> so since the seven months i have been very active in talking to all of our shareholders and i have been listening to what they have to say about our core business. one first thing i did was say what is core. that is always a question. i define core business as dermatology, gastrointestinal business and the consumer business. those are the cores. beyond that we have noncore assets that we have said we are going to sell. we identified about $2 billion to sell and we proceeded with that. we proceeded. >> you were going to sell salex. the deal from my understanding

is that was all but done about $10 billion, a big chunk in cash and royalties you would have gotten before they came back to you and wanted a different price. so you were willing to at least entertain selling a core asset. >> so we as you know have some significant amount of debt. we have $30 billion of debt. i said we will build around this core. if there is inbound interests that said we would be interested in great assets you have i have to listen at this time. to me that is important. i will listen for those things. i can't make specific comment but if there is inbound interest i had to listen. importantly, i started the process with these noncore assets and that is where i think we can help pay down debt. we expect to pay down approximately $5 billion of debt over the next 18 months from

operational improvement as well as noncore asset sales. that is on track. we said it would take about six months. i'm very optimistic we will get it done. >> if i say i will pay a big premium is that on the table? >> it is a core asset. i will stay with that. >> you have a lot of debt to pay down. >> thank you for taking the time to join us here. about 30 minutes to go before the bell rings. dow jones industrial right now is good for almost 61 points. still have a decent way to go before we hit 20,000. about 150 points away. home builder sentiment getting a boost from trump economics. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't.

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welcome back. trump aeconomics boosting levels. >> boosting sentiment but not the stocks which tells you something. home builder stocks bounced after the surprising jump in sentiment but now in the red again. this is likely due to continued rise in mortgage rates. some lenders quoting 4.5% on the 30-year fix. did jump seven points on the monthly index. that is the highest level since the middle of 2005 before the housing crash. it's the first read since the

election. >> i think there is a great deal of post election euphoria. the women and men who make up the home building industry have been burdened by excessive regulation for a significant portion of the last eight years. they are looking forward to the new administration coming in and living up to its promises that they are going to repeal and roll back a lot of regulation. >> now, regulation is one thing. immigration policy may be another. the home builders are already facing big labor shortages and they rely heavily on immigrant workers to build homes. >> thanks so much. we have less than 30 minutes now to go before the close. the dow jones industrial average is up 67 points. 19,859. a leading trader tells us what he is watching into the close coming up next and also ahead the bull case for apple. why he thinks apple could hit 130 bucks next year.

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we need to be ready for my name's scott strenfel and r i'm a meteorologist at pg&e. we make sure that our crews as well as our customers are prepared to how weather may impact their energy. so every single day we're monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california. welcome back. eli lilly among best performers on the s&p 500 today. the drug giant issuing better than expected earnings and revenue guidance for next year

citing strong demand for recently launched drugs as part of the reason stocks moving higher. joining us to discuss tim anderson managing director. good to see you. begin with a bang and now going out with a wimper. what are you watching between now and the close? >> i think a lot of volatility we have seen since the fed announcement has been orderly. a lot of it has been in the transports and the russell which have had the largest rally since november 3. and really quite an impressive recovery in the first couple of hours from the sell off yesterday. now we are still in a little bit of consolidation mode which i don't think is unusual when you are talking about being on the verge of hitting such a big milestone as dow 20,000. so we just have to -- >> some say it is a number. you say it is a milestone. it means more than just hitting a number. >> i think it does matter. it might not matter for

valuation metrics but it certainly matters for market psychology metrics and psychology is very important in the market right now. >> good to see you. and it's time for a cnbc news update with sue herera. >> just moments ago a jury unanimously convicted dylan roof on all 33 counts in the racially motivated slayings of nine black church members in south carolina. it reached the verdict in less than two hours. the jury will decide next month whether he will face the death penalty. secretary of state john kerry saying the u.s. wants to see corridors of safe passage for civilians to leave aleppo. >> the assad regime is carrying out nothing short of a massacre. we have witnessed indiscriminate slaughter, not accidents of war,

not collateral damage but frankly purposeful, a cynical policy of terrorizing civilians. >> facebook says it will roll out a number of new tools to prevent fake news stories from spreading on the social media network. it says if fact checking organizations identify a story is fake it will get flagged as disputed and there will be a link to the corresponding article explaining why. lots of busy news. that is the cnbc news update. scott i will send it back to you. we have a news alert on trump organization. dominic chu has more details for us today. >> so what we have right now is the trump organization confirming to cnbc that in a move meant to clean house, so to speak, the trump organization is now terminating business deals that it currently has in both brazil and a

brazil. in this kind of move the organization confirmed they are getting rid of those dealings, another step towards perhaps trying to clean up potential conflicts of interest ahead of this particular inauguration. >> interesting news. thank you. let's go to phil lebeau with news on general motors. >> where you can do test driving particularly in adverse weather conditions. >> i think you captured part is technical resources are here. they work seamlessly together. being here where we can get the cold, snow and different weather conditions and leverage technical center is very important. it's a great opportunity. we're very pleased to say it was passed. >> there are reports that general motors might be an auto maker hit with a fine for price fixing. have you heard that you are the target of an investigation?

what is your thoughts in terms of what is being reported out of china? >> i don't think anyone will benefit from further speculating. >> you are on president-elect trump's strategic and policy forum. have you talked with him? what are your conversations with president-elect trump been like since he has been elected? >> i haven't had an opportunity to talk to him yet. i am pleased i will have a seat at the table to talk about important issues facing our industry. there are things we can do to work together with government and business to advance the country. that is high on my list of priorities. >> as a ceo how do you feel about his habit of sending out tweets about a particular company, targeting a company? as a ceo you are known for being one who is measured. you don't like the drama and you have a president who doesn't mind say yg don't like this company i will say something. >> i respect his decision on how to communicate. there is a lot of new tools in

communication. i think working constructively to raise issues, resolve issues and seize opportunities i am fine with working with the president-elect to do that. >> are you worried -- >> are you concerned that the one china departure from one china policy that the president-elect has talked about could have an impact on your business in china? >> again, i'm not going to speculate. there is a lot that is going to unfold. we have a significant business in china and here that creates a lot of jobs. >> automated vehicles you talked about wanting to pea the first to mass market them. when do you think that could happen? >> we are not putting a date on it. we are working extremely aggressive. we want to make sure we have safe and reliable autonomous vehicles on the road. i think what we announced today is the next step forward.

our plans are still that -- >> what will set you apart from other autonomous vehicles like tesla? >> when you look at the fact that we have 100 years of really understanding vehicles, putting them on the road, making sure we have a safe high quality vehicle and brands that create a promise. we will provide exceptional owner experience using what we have with technology. 238 mile range that we have connectivity, 20 years of history. we will have 12 million vehicles on the road. when you take autonomous connectivity i think we will have a very special offering to the consumer. >> are you worried about nafta being reworked? >> again, we will work constructively with the president-elect and all the governments that we work to make sure that we have a good balance of trade and do the right thing for the country and global operations. >> what percentage of work will

be done here versus silicon valley? >> really integrated. we have a team of over 100 people specifically working on autonomous vehicles there. they work seamlessly with great people standing behind me here. it's really a seamless team. in today's working world location is important when communicating so many different ways. testing we are doing in san francisco is so important because think about the roads and the experiences that we are capturing and the crowded roads of san francisco. here we get the cold and the snow. we will cover all aspects. thanks everybody. >> how can you make sure folks are safe when -- >> mary barra talking a little bit and not giving a whole lot of perspective in terms of whether or not general motors has heard from chinese authorities. you know the reports that there is a major american auto maker that is the target of price fixing investigation over there. we asked her about it two or

three times and she would not take the bait in terms of discussing it further. on a day when we don't hear from mary barra often we get a few comments about her thoughts in dealing with president-elect trump and his administration. >> one reason why this was so topical was because the stocks of both general motors and ford fell yesterday on the reports. ford had come out, at least somebody from their asia pacific region and said we are unaware. we didn't hear anything from general motors which led people to speculate maybe gm would be hit. she didn't say, she did not tell you she had not heard from the chinese. >> she did not say they had not heard. their standard response has been we follow all local rules and protocol. you don't have to go far to realize that they likely are or speculation that they are target

of this investigation because we are talking about price fixing and monopolistic behavior. they are number one in the china market. it's not a big leap to think they might be the target of that investigation. we have not heard an official denial that they have not been contacted by chinese authorities. >> that was nice handling there. not like she talks a lot. never seems to be a formal press conference or anything like that happening. you have to catch her on the fly. this was one opportunity to ask her about nafta and president-elect and china. she didn't really have a a lot to say on any of those topics. >> you are correct. and that's mary barra's style. mary barra is very coautious an careful in prepared remarks and these scrums. this is fairly typical of what we have seen with her since she has become the ceo.

it started off with a scandal. i think part of what she decided to do early on then was i'm not going to get caught up in making comments about potential skndles, big stories that are out there. frankly, what we heard from her today is fairly typical of what we would expect. >> good stuff, as always. thanks for bringing it to the "closing bell" today. phil lebeau just having spoken with on live television in a scrum mary barra. we have about ten minutes to go before the bell rings. s&p higher by about ten points. the nasdaq is higher, as well. speaking of the nasdaq, tech stocks have under performed since the election. we will look at whether there are potential buying opportunities in that space.

still holding gains. there is the nasdaq at the bottom up 21 points. joining us now to talk about investing in technology during this trump rally and what is ahead for apple is kevin landis, guys, good to have you. jim, i will start with you. this week you dropped a note that said five reasons apple stock can trade higher in 2017. why don't you give us number one or two reasons why. >> the number one reason why we

are talking very near term is we think the iphone 8 launching september next year will create a super cycle. this will be a big cycle with the new iphone and form factor display, faster processor. we think that will help out near term. longer term we see apple wood or the opportunity for apple to grow into countries like india where they have very small footprints. we like apple both short term and near term. >> have you modelled in at all repateeration? >> while numbers for a full year are above consensus we have not modelled in the new tax regime. we have laid out scenarios that it could be between 8% and 10% additional upside if they do lower corporate tax rates as

well as repatriotion window. to answer the question, no that would be additional upside should the trump administration push that through. >> are you as optimistic as a shareholder of apple as the analyst is? >> well, in some ways, sure. i think what i worry about is things are going so well at apple that they are not always going to be perfect. samsung is on its back foot and they are not going to stay down forever. the new google phone hasn't really taken a lot of market share yet because it is their first iteration. that has the potential to really be a strong challenger. so i kind of feel like competitively that companies sort of on top of the world and that can be a slippery place to be. >> kevin, what do you make of tech since trump?

if you want to put it that way since the election? it has taken a little while to get going. i'm wondering why you think that is and whether it will remain that way for a bit. >> i guess basically because tech companies don't build dams and highways and new airports. again, if we do go on a huge infrastructure spending spree there will probably be a tech component to it. i think it is not the first thing you think of when you think of economic stimulus. >> i am wondering what the risk would be for your story next year. is it repatriotion doesn't happen? already apparently saturated hand set market doesn't bring as much gusto for the new phone? what would it be? >> the number one risk we see is the gross margins we took lower because component prices have been going higher.

memory, content, screen, the components have been going higher so the margins could see a little bit of pressure in the near term especially the march quarter. that is the risk we see as well as do people hold out and wait their time until iphone 8 comes out in september. that is risk near term could see. those were the risks. >> guys, i appreciate the time. up next we are back with the closing count down. after the bell we have more on today's rally. kelly has former barclays chief bob dime skpnd allen patricof, as well. you know what i meant. you're watching cnbc, first in business worldwide. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers)

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with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. we are on the floor of the new york stock exchange. dow is up 58 points. you have a few minutes to go. what happened today? >> we ran out of steam. we have problems, big problems with the overall market because the strong dollar is killing.

ge has been down three days in a row. united technologies, they had a tough time with it. number two problem is we had people come in and decide they didn't want to own the tech stocks so at the same moment microsoft, apple, intel grouped down here and somebody sold a bunch of them. when you have teches and industrials in the dow not going anywhere sbrmpt . >> financials though. >> let's talk about dow 20,000. there is a way to hit this tomorrow. 2275. a lot of calls around there. you go over that you will get a pop in the morning. the dealers will have to go out and buy that thing.

if we drift up towards the open tomorrow you can see a nice move up. and that is what could get us over. >> what if the dollar continues to go up? rates continue to go up and they are a head wind in some respects. people said the dow is going up, big deal. now they are paying more attention. >> they are paying more attention because prices are so far out there that already there are questions about whether they are able to match expectations. they are pricing in serious revenue growth and serious earnings growth in 2017. it is almost a perfect scenario. they believe that we will get a perfect scenario of tax cuts and some kind of stimulus plan mostly in the form -- >> already baked the cake and haven't gotten ingredients yet. we are uncomfortable with pushing numbers.

i think the reckoning will come sometime in january. we are going to get reality. >> appreciate it as always. bob pisani joining us here. dow will go out below 20,000. we will see what happens tomorrow. next hour of "closing bell" coming up right now with kelly evans. thank you scott and welcome to "closing bell." i'm kelly evans live fraom the yale ceo summit. on wall street just one more trading day in the week to go after this. the dow did rebound but not enough to pay for the first time 20,000. we close today at 19,852 with about a third a percent gain. s&p 500 did a little better but up at 2262. the nasdaq participated closing at 5456.

and the small cap russell 2,000 up nearly 0.8% to close at 13,066. we have big tech names reporting earnings after hours. josh lipton is covering oracle's results. we will get to you in just one second. financials have been leading the trump rally. coming up former barclays ceo bob diamond joins me with his take on banking sector and the climb towards dow 20,000. joining me on the panel we have stephanie link checking in. george young and cnbc fast money trader guy adami. thanks for being here. what do you think about the market? >> there is always a period of digestion after the fed meets. in this particular instance with

the fed raising rates it was a little more intense. i thought yesterday was interesting in that the fed and their commentary about how many hikes they will do is more hawkish. that was quickly offset by janet yellen being more dovish. i think the message is that we are seeing a little more growth, a little more inflation and we just don't need emergency monetary stimulus any longer and are trying to get a more normalized process underway. now we have to get to trump and fiscal policy and whether the growth initiatives are what we are expecting. i think you will see better growth ahead. i think the market can continue to grind higher. >> we love this rally. it has been fantastic but not isolated to certain segments. we have had good growth with something like financial engines

which is a thin tech industry. also dst systems is a great opportunity. problem we are having is hard to distinguish between the good move upwards and the value. things are getting faulty here because you are make ag lot of predictions on what the administration may do. let's not forget the administration is not put in place whatever their programs are somewhat unclear and they have to implement those programs and get them through congress. we have a long time to go. there are a lot of projections here. we usually are optimistic at our firm. we think the stocks have a good way to run. small caps have a good way to run in particular. >> already up about 15% since the election. we get to results from oracle which are out now. josh lipton has the numbers. >> oracle reportingeps of 61 cents versus expectations of 60 cents. revenue 9.07 billion. just looking through the release

quickly here total cloud revenues 1.1 billion or 12% of revenue. 969 million in q 1. new software licenses 1.3 billion. on the call you expect to have analysts ask questions about the big net suite acquisitions. anymore color or commentary we can get about the company's cloud business and questions about incoming administration given safra catz's role on trump's transition team. guy adami, what do you think about the results? >> good but not good enough. i don't think oracle is that expensive. i think people are looking for revenue beat. i think if you want to play the cloud there are probably better names to do it with specifically a name like sales force and the fact the stock has had trouble getting to 42 on the upside

leads me to believe maybe we test down to high 30s. not a disaster by any stretch and i'm not suggesting you sell the stock y. don't think it is good enough to get it to the next level. >> stephanie, what about you on oracle? >> oracle has been going through a transition for a long time into cloud and away from legacy. we are all waiting for that inflection quarter. this one doesn't seem like it is that. it is fine. i will take 81% cloud revenue growth any day. however, i think the bigger questions are what is going on on the legacy front? is it decel rating faster so you can't see the depreciation in the cloud business? i think we also have to wonder what will happen to currency. currency is a big deal. i think that is a really important theme that people have to take into account when investing in the sector. >> i love what you said. 81% cloud revenue growth isn't enough? >> it's great.

it's wonderful. and the cloud story is wonderful. it really truly is. i'm very excited about it. the problem is they have a legacy business. if you want cloud go to sales force. i think at this point this is not expensive but he is right in terms of it not really being enou enough. >> how do you guys feel about big cap tech space? >> we think there is much nor value. it doesn't take that much capital. oracle is a huge company. not to say it is a bad company at all. that is not where we find value. each of us have our niches. i think there are other companies like to you interactive great online learning school growing revenue s we want unknown names that

become oracles of tomorrow. >> stephanie brought up the impact. you see the dollar index jump up after the fed decision yesterday to like 102. how much longer before -- that is effectively at parody if it is 1.04 you can wait to ring the bell on it. >> your question is at what point does the strength in the dollar have an adverse effect on big cap names that basically seemed impervious to that and the answer to that question is i think people are looking past that. i really believe what people are looking at right now is the fact that we potentially have been able to pass the baton from

monetary policy to fiscal policy at the taime the fed was probaby running on vapor. i think the tail winds of a market that has been reinvigorated by the potential for fiscal stimulus might transcend all of those things. >> we have breaking news on price line. dominic chu, what's happening? >> change. what we have now is the current interim ceo now stepping aside and becoming executive chairman of price line to make room for glen fogel. he is a 16-year veteran. an insider becoming ceo. we have another news alert with

regard to dow chemical. want tobring yourttention because d chemical which has outstanding preferred stock owned by berkshire hath away has risen enough to trigger a conversion of that preferred stock into common shares according to sources familiar at dow jones the intention is to exercise those conversions immediately over the next week or so. this is a huge deal here for dow chemical. this could free up capital they have in place because of the preferred stock for other uses. they have been paying a preferred dividend before that. price line and dow chemical moving at least not moving the stock on the news but movers and shakers involved. >> dom, thank you. i was going to say shares losing that cash stream. it is barely a drop in the water

terms of market cap. going back to price line this is a $1,500 single stock. it's not quite yet. what would you do with it here? >> we have been waiting on an indication with permanent ceo. having someone internal i think is very important just to stabilize the ship. this is a very well oiled machine. i like the story very much. wish the stock would come in a little bit on valuation. i think this is great news for dow. i think dow sets up as a great 2017 story because they are about to embark on the du pont deal. they are getting it in streams. volumes are improving. that is a name that i think should be on investors' radar. maybe you need to get through the calendar year to see the deal close. even if it doesn't get approved i like it. >> another dow for us to keep an

eye on. we have an earnings alert on adobe systems. >> those numbers are in and a beat on top and bottom lines. fourth quarter revenues at 1.61 billion beating expectations of 1.59 billion. those earnings came in at 90 cents per share. they were looking foreps of 86 cents. taking a look at various segments digital media revenues at 1.08 billion. we are looking at after hours stock and that is down 2% on fairly low volume. one piece that didn't beat street expectations was adobe marketing cloud which regardless of achieving record revenue of 465 million that is still below expectations. the calls coming up in an hour and we will be on it. kelly, back to you. >> thank you. guy, adobe has been such a stalwart. as she said a miss there in

terms of that cloud portion. >> this is a monster company. i don't know if you have a long term chart. i'm not asking the guys to pull one up but if you look at the stock over the last five or six years it has been steady climb to the upside. they did guide lower for fiscal year 2017 and maybe that is one of the reasons why the stock is lower now. i am telling you and if you go back and look every time the stock has sold off after earnings over the last three or four years within a week or so it is going on to make a new all-time high. hat is exactly what i think is going to happen now. yes, the stock is expensive. they do things better than everybody else. and i think this is a stock that you talk to me a week from now and probably all-time high. >> looks almost like a smooth line. let's head back to san francisco. >> oracle and sales force have

been going at each other for a long time. this time is no different. oracle takes three separate shots at sales force. you have safra catsz saying when sales force passed the milestone their platform service subscription growth rate slowed down to 36% even after you include acquisitions. mark chimes in saying oracle has passed salesforce.com and become number one in application, sales to customers with over 1,000 employees. and larry elson saying a lot of people were taken by surprise when ranked oracle number one in enterprise surpassing sales force and overcoming the 15-year head start going on to say stay tuned, more surprises are coming. you seem to be in their thoughts. kelly, back to you. >> stephanie, i think they just

tried to answer your rhetorical question about why not just go for salesforce. >> when you listen to the conference calls they all go after each other. it's all of them. they are all competing. i think the pie is very big. i think they all can grow. i just think the transition is taking longer at oracle and it gets frustrating to wait for the transition. if you look at adobe, that transition took a very long time. once it got going it really got going. i don't think you sell this today at all. and it is really barely down. let's hear what they have to say about fx and underlying trends in the quarter in terms of what to do with the stock. i think it is fine. >> thanks everybody for joining us. and there is more. be sure to stick around a top strategist from jp morgan is back with an even bolder call.

we will hear about that next hour. the fed raised interest rates for the first time in a year and the banks moved quickly to raise prime lending rate. bob diamond tells us just how good higher rates are for the sector and whether banks still have more room to rally. venture capital pioneer alan patricof weighs in. you're watching cnbc, first in business worldwide.

it didn't take long for banks to raise pri lending rate after the federal reserve raised interest rates for the first time in a year. >> the major banks have wasted no time in hiking their lending rates, all of the big names including likes of jp morgan, wells fargo, bank of america and citi hiked prime lending rate most fraum 3.5 to 3.75%. thus banks moved rates for borrowers. the prime rate is what banks use to anchor floating rate loans such as credit card loans and

some mortgages. however, the increase for savers is slower and less full. this is especially the case at the start of the rate increase cycle because banks are still not super profitable therefore the incentive to show price disman is higher than when rates are further along the line. this change is what they have been waiting for so they are not in the rush to spoil it for each other. banks with a higher proportion of deposit funding and within that more small checking accounts rather than big savings accounts. on that note, goldman sachs research says bank of america has most sticky deposit base because it has 60% retail deposit exposure. sun trust, wells fargo not far behind. >> joining me now for more on the move in the rates and move in financials we are joined by

bob diamond, former ceo of barclays joining me here at yale ceo summit. welcome. you are in the middle of a lot of different aspects. there is financials and how they are doing, interest rates, emerging markets. how much different are conditions today for you relative to just the day before the election? >> so i think the election was a surprise to most people. >> a little bit. and i think what we have seen is a focus on lower corporate taxes, a focus on celebrating success, a focus on investing in businesses, a focus on infrastructure. these things have been very, very good, i think for the mood around equities, but particularly the mood around financials. and it has been a while since 2009 but financials feel investable again. >> you had said before this back in september that the banks were getting close to capitulation

because of legal provisions. >> right now it's -- so one of the things i think about is as you go back to very difficult times in 2009. and i think we paid too little credit to secretary polsen and the team with tarp. and what they did in 2009 is they took away the stigma of putting money into banks. so good banks, weak banks all had equity put in. >> they took it away maybe for the banks but then raised it for the whole country. the moral hazard of the moon has been part of the legacy. >> they took the stigma away. and then they said you can't pay your employees or investors until you sport out the problems with nonperforming loans. before banks could pay dividends they had to clean out nonperforming loans. >> is that why u.s. banks are doing so much better relative to

european ones? you have a better read. it seems like a pretty dire situation for a lot of them. >> and if you look at what is happening in italy today with the size, the multibillion-dollar nonperforming loan that they sold off their balance sheet i think the european banks particularly italian banks are at that point of capitulation. if we can see the resolve then italian banks become investable. >> do you do the uk thing? do you just kind of make it go somewhere else? >> well, it has been eight years. if they had a really easy way to do it they probably would have done it. one tricky thing in italy which is the debate between government in italy too forgive or to do the good bank bad bank which means bail in. >> and bond holders are voters

in italy because a lot of retail public holds those bonds. >> it is trickier in london for banks that are more similar to building societies. many are the depositors. so it's kind of that local branch network mutual type of organization. and so i think if we can resolve that issue of is there a relief on the bail in we can accelerate the process. >> you said the u.s. banks are investable again and have certainly been on a tear since the election. so how much further does this go at this point sth a lot of hope has been priced in, a lot of speculation has been priced in. >> we think the opportunity is much more below the level of very large banks. they have recovered but i think the feeling around too big to fail, too complex to manage and in other words very high levels of capital for the larger

interconnected banks, lower leverage levels are here to stay. we are saying there are opportunities to take risk off the balance sheet of the large insurance companies so we have just vested in a company called somerset reassurance. we invested in a broker dealer which is a stand alone business. it is some of those high leverage, low risk businesses that are coming off the balance sheet. >> high leverage and low risk exist? >> there is. when there is a uniform leverage rule applied regardless of risk it will favor higher risk, lower leverage businesses. >> you mentioned hank paulson. what do you think of the president-elect's pick for treasury secretary? >> i think when you go back to the night of the election and people were surprised, i think they are equally surprised today at the quality of people that the president-elect is

attracting to the administration and whether that is steve mnuchin, gary cohn, rex tillerson there is serious talent joining the administration. >> you are smiling. what do you think this means? we know the glacial pace at legislation. maybe you can tell me what it is like when you are not trying to enact something but trying to do the opposite? can it happen quickly with obama care and dodd-frank and tax overhaul even with republican congress? >> republican congress, republican executive, 33 republican governors, this is a strong statement. i think you bring up a good case with corporate taxes. let me just take a second. this isn't rocket science. we have known this issue was here for 8, 12, 16 years. we have the highest rate of corporate taxes of any developed economy in the world, 35%. yet we have big companies like

general electric that pay zero taxes because of the exemptions. so to take 35% rate to 15 or 20, 20 to 25, reduce exemptions, force them all back through congress. that will be revenue positive. and that also allows companies to bring $3 trillion of trapped capital either back into u.s. or other places around the world. >> they are saying speculation now is that the market is starting to sell off because reince priebus i think referred to the real big stuff that will not come until the end of 2017. and then you think if that is the early case what if it falls to 2018. that is why there is concern. >> i think the president-elect has been very clear that you can count on corporate tax reform quickly. >> bob diamond thanks for joining us here. let's send it back to headquarters. shares of adobe volatile. the company issuing better than expected first quarter profit

guidance but full year came in short of estimates. does dominic chu want to pick up the rest of this? >> i can. i will pick it up because a lot of people look at jabil circuit because it is a prominent apple supplier. those shares up by about 10% on after hours trade. 237,000 shares traded so far. after the company reports earnings of 69 cents per share beating estimate of 64 cents. revenue better. $5.1 billion. analysts looking for $4.9 billion. they issued their current quarter revenue guidance in line with expectations even though their q 2 profit expectations were light. the ceos say they are pleased with the performance and got a good amount of strength. this is within their diversified management segments. again, some other comments coming out here. for right now you talking about

a stock that under performed the overall market down about 7% year to date. now responding with a 10% move higher on the earnings beat. back over to you. >> quite a pop. thank you. stocks moving higher generally after yesterday's sell off and pushing closer to dow 20,000. coming up two stock pickers tell us which names they think look under valued. facebook taking new steps to crack down on fake news feeds. we'll tell you what it is doing and whether it will calm concerned investors when we come back.

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facebook shares falling around 3%, a time when critics and shareholders have been worrying about the amount of fake news on the social media website. julia boorstin joins us with details on new steps facebook is taking to fight fake news. >> that's right. facebook saying it is starting by targeting hoaxes spread by spamers. the company is making it easier to mark news as fake and working with third party fact checking organizations to flag stories and explain why they are flagged. flagged stories cannot be made into ads and promote skpd can only be shared if you click past a warning. facebook is working on the changes to help minimize stories that seem misleading in your news feed and to shut down the financial benefit of fake news. facebook is eliminating the ability for companies or for fake news companies to spoof

domain names. this isn't just about doing the right thing. it could end up being crucial to protect facebook's bottom line. making these types of changes will be key for facebook along with google and twitter to maintain its users' trust. >> all right. thank you. time for a cnbc news update with sue herera. >> and here is what is happening this mour. a jury has unanimously convicted dylan roof on all 33 counts in the racially motivated slayings of nine black church members in south carolina t. reached that verdict in less than two hours. it will next decide next month whether he will face the death penalty. the injured began arriving at a syrian hospital in western aleppo as evacuations started. residents boarding buses and ambulances, the first step in an evacuation that is part of the rebel's surrender. u.s. banks will be required

to build -- the action by the federal reserve was the latest bid to reduce the chances of future taxpayer bailouts. and long time nba sideline reporter craig sager has died of cancer. sager worked basketball games for tnt for nearly 25 years. he was 65 years old. that is the news update. back to you. >> that's really too bad. i think espn had him come on and do the championships last year. so very well known name for anybody who has been following that. our thoughts are with him and his family. thank you. we have a market flash to get to with meg tyrrell. >> we are looking at shares plunging now on news that the company has discontinued an experimental drug for a rare

blood disorder. stock down almost 17% as the company say tg is discontinuing the pipeline program of a drug known as ag 519. it is stopping this one after guidance from the fda on halting clinical trial after side effects having to do with liver in the trial. a call will be held at 5 p.m. stock down about 17 pn% right n the dow today rallying more than 8%. up next two top stock pickers tell us which stocks have more room to run. plus whether the ipo market could heat up during the incoming trump administration when we talk to alan patricof coming up. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future.

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as the dow inches towards 20,000 which stocks are poised to win and which might be losing steam? joining us now are mark and chris cordero from region atlantic. marco, you first. >> i like a couple of names and sectors i like longer term some of which pockets have gotten ahead of themselves.

the banks have been on a tear so i'm trying to look for names that aren't as extended. one of them might be chub because a lot of the portfolio is invested in fixed income securities and better economic climate should support harder pricing for its insurance policies. >> tell me about liking the real estate sector. >> bit of a contrarien idea here. the vanguard trust etf sold off heavily with other interest rate sensitive sectors. has a nice yield of about 4%. better economic conditions should breed hiring. that should be good for multi family unit properties. rates should reflect that even as they overcome bump in rates we had here. >> i see you like halliburton. chris, you like gm, as well.

>> i think the big story is just the aging of the cars on the road. the average car on the road is over 11 1/2 years old. so that just means there is going to be demand tr it. more importantly is if you think about gas prices three years ago, gas prices were high three years ago so suvs and large trucks weren't selling. if you are in the market for an suv or truck you have to buy something new. you don't want the used cars. the fact that you don't have a lot of older suvs and pickups that means you are likely to see a pop in gm going forward. >> i see you are a fan of one of the financials to citi group and you have apple on there. apple you think could do better from here? >> i think apple has two things going on. one is that it has over 200 billion in cash offseas. if we see something out of the

trump administration to allow for more cash to be repatrioted apple will be a huge beneficiary to that. getting cash off books will be benefit to earnings. either that comes in the form of dividend or stock buyback is going to be good for the price moving up. >> couple of picks from each of you with ideas. thank you both. >> thanks, kelly. coming up, yahoo announcing another major hack. this breach affecting 1 billion people. will verizon keep the bid on the table or is it too much of a security liability? that's next.

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welcome back. shares of yahoo falling after a report that verizon could end the deal to take over the company. this after yesterday's announcement that a billion yahoo accounts had been stolen. it is a separate breach from the other hack earlier this year. the white house said the fbi is investigating the latest hack. let's bring in verizon analyst. welcome to you both. >> hi, kelly. >> amy, first to you, what do you think is the likelihood of the deal falling apart? >> i think pretty high. i think this opens up door for other deals and verizon to

revisit their strategy and could include distribution companies and traditional media companies and digital assets to bulk up and scale. >> usef, what is your point of view in the severity of the breach and what happens to yahoo going forward? >> take you to the other side of that aurm. i think verizon will continue to be interested in this transaction. this is clearly a huge black eye for yahoo. aol had its own breach of about 200 million users a few years ago and verizon went ahead and acquired it. i think aol is suboptimal when it comes to their ad stack and also when it comes to just the type of properties, the contents of media properties they have. i think yahoo will definitely double down and give them some scale to compete with google and with facebook.

i'm not sure that is necessarily enough but aol as it stands within verizon i don't think will cut it. there are ways of making the deal work while still protecting verizon from the liability potentially. >> right, which raises another issue. amy, you cover verizon and were talking about their ambitions longer term. does yahoo still fit in? >> i definitely think it does. yahoo, aol have been seen as twins separated at birth. but certainly i think verizon cares a lot about other growth opportunities for them and this could actually open a door for them to look at other assets. cbs is one floated although they have been really clear that the 300 channel bundle isn't something they want to pursue similar to their big peer at&t and time warner. >> if it did fall apart for some reason what would happen to

yahoo? >> i think they are going to have to go back to the drawing board. two years ago they started not by imagining the sale but the spin off of the asian assets of alibaba and yahoo japan. i don't think that is optimal considering they lis toon disgruntled shareholders. there is a way to create shareholder value by going the other route. we think alibaba is worth close to $30 in cash. we think yahoo japan is worth around $6 in cash. they add another $6 or $7. just doing the sum of the parts. ask any value put on core still gets you to $2 or $3 above where the stock is trading today. thank you for joining us. we should disclose cnbc and

yahoo have a business alliance to share and co produce editorial content. donald trump meeting to talk job creation and trade. up next venture capitalist and hillary clinton supporter alan patricof weighs in on what tech could look like under trump. we'll be right back. ♪ and if you want to be free, be free ♪ ♪ 'cause there's a million things to be ♪ ♪ you know that there are ♪ and if you want to be me, be me ♪ ♪ and if you want to be you, be you ♪ ♪ 'cause there's a million things to do ♪ ♪ you know that there are ♪

welcome back. president-elect donald trump met with tech leaders this week to discuss job creation, trade and immigration. joining me now for more is alan patricof. welcome. >> thank you. nice to be here with you. >> what do you think came out of the meeting yesterday? >> i think he heard the message

certainly. >> they were giving him the message? >> i think they were giving him the message. i gather peter thiel pulled the group together. i wasn't there. it was a lot of leaders from the west coast. they brought forth the major ma message. integration is properly their highest priority, to keep talented people in this country, and the other i'm sure is the implication of regulation and how it hampers early stage companies. the obvious things we've all been talking about. >> one of the biggies that no one is quite sure how it will pay off is repatriation. there is crash, trillions of it overseas, a lot of it held by technology companies. what do you think of a one-day holiday to bring it back? >> i think it's great. i wish i could say our venture capital companies are affected by this issue, but i don't think we have anything to repatriate. i was probably one of the

earliest investors in apple, they're one of the biggest recipients of the, right now, challenge with a lot of money overseas. but i'm not close to them anymore. >> that's true, it doesn't quite affect the startup community. as you said, that's more the immigration piece of it and just kind of reminding everybody that new businesses are the job creators. even though we talked so much about silicon valley, the pace of new job creation has been falling for years. that's been blamed on the obama administration in some parts, saying there's more regulation if you want to start a business today. what do you think of that? >> i frankly don't buy that, i've heard that but i have a contrarian viewpoint. i've traveled around the country. i've seen in new york and lots of other countries, there's the greatest startup wave, i've never seen anything like it. we have buildings full of startups right now. >> do you think they're just not counting them properly? because you're right, you do see these communities sprouting up.

>> i think when they speak this, they're talking about the really small businesses, which are not going to have the multiplier effect on employment. they're really small businesses. the venture capital industry is focused on companies that have a multiplier that are going to grow to be significant companies and big employers. >> it's funny you say big employers. there's also this idea that as tech grows, it will displace jobs, instagram when it got sold to facebook for a billion dollars, these companies now employ thousands and thousands of people. do you think the tech sector will always have fewer employees for its market cap than other industries? >> we're in an environment where robotics and machine learning and the whole idea of artificial intelligence relating to driverless cars, and just the implication of driverless cars and the number of people who

could be displaced from their jobs is enormous i mentioned machine learning, there are companies that can replace the merial of office workers that are doing routine mondotonous type of filing and compilation of basic data that is easily done by machine learning today and outsourcing. >> let me ask you a broader question. how have you felt since the election? >> depressed. >> you were a big supporter of hillary clinton's and a big fundraiser for her. but our last guest mentioned he's been so impressed by the quality of the cabinet that donald trump has pulled together. has his selection of people for cabinet posts given you confidence? he's pulling from your community, the business community. >> every one of them -- i don't want to be that across the board. many of them give one cause for concern. you see that reflected in the comments made, whether it's the

new head of the cia, the new head of the national security agency, the secretary of state, the department of energy. i mean, i could go on and on. there are a couple who are -- >> what about the stock market? confidence surveys are out, you look at the map and you know it was basically the coasts and then the rest of the country, look at the governorships held by the gop. you don't feel like you should be giving it more credit than -- >> i think we have to keep an open mind, like it or not donald trump is the president -- going to be the president of the united states. i think we would like him to succeed. the comments that come out of trump tower give anybody cause for concern if they think about it. the business community eventually likes consistency, does not like irregular, irrational comments which move the market up or down. >> tweet risk, as we're calling it. >> it goes beyond that. it's in speeches. when you damn the drug industry

one day and the drug stocks go down x%, you criticize lockheed and that goes down x percent, it's hard for investors in public stocks, it doesn't affect us because we're in there for the long term, private companies. but in the public market, you've got to be very concerned with what can happen, come out tomorrow. plus all the exigencies that exist in the world and political events that can affect the market. so i would say let's give him the 100 days and see what happens. i hope we have a more, you know, consistent point of view coming out of washington that will give people confidence to make the capital investments and everything else. >> thank you for taking the time to join us, we appreciate it, from graycroft llc. general motors announcing its plans for, speaking of which, driverless cars. the details from the news conference are next.

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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley welcome back. general motor outlining plans to manufacture and test autonomous cars in michigan. our phil lebeau has the latest.

>> reporter: kelly, gm is testing the volt in michigan. the company now plans to be the first mass market automaker to roll out autonomous vehicles. on the topic of whether or not general motors is the target of a price fixing investigation in china, mary barr said she would not comment on that. on the topic of donald trump, remember, she is on a policy board that will advise him, she has not yet talked with donald trump. and i asked her how she feels about the president-elect's penchant for calling out companies on twitter. here is what she had to say. >> i respect his decision on how he wants to communicate. there's a lot of new tools in communication these days. i think working constructively to resolve issues, to raise issues, resolve issues, to seize opportunities, i'm fine with working with the president-elect to do that. >> reporter: still unclear when

mary barra might have a conversation with the president-elect. but kelly, as we know from constant tweets and other stories, he's not shy about reaching out to ceos or saying something publicly to ceos. kelly, back to you. >> that's for sure, phil, thanks so much, our phil lebeau speaking with mary barra in the last hour or so. that does it for "closing bell." thank you for joining us here. "fast money" begins right now. oh, it was so close. dow 20,000. you could almost taste it. coming within 50 points of that magical barrier. dow closing up today 60 points, not enough to hit that milestone just yet. do dow 20 k will have to wait. will banks continue to lead the way or will another group of stocks carry us over the $20,000 line? hello,