this will threaten bilateral relations and getting a quote from russian news agency saying that the decision to expel the diplomats are the -- a story to monitor as we head into the close. thanks for watching. >> i'm sure "closing bell" will pick up this developing story and they begin right now. welcome to "closing bell." i'm kelly evans. >> and i'm bill griffith. we are following the russian story. we will get to that in a moment. no dow 20,000 today. we will talk about so-called end of year window dressing and other factors that might be keeping the industrial average away from 20 k at least for now. amazon come up with a space age idea to get packages delivered to your front door faster flying warehouses with fleets of drones. we will discuss where the tech

and e tailing stock can handle innovation. and then later former sec commission head will be weighing in on president-elect trump naming activist investor carl icahn to a special advisory post. let's begin with the markets and what is holding the dow back from 20,000. bob pisani here on the floor of the stock exchange. i will say, bob, no response on the russian sanction story either here. >> although that is interesting it is not impacting the stock market. what is is the lack of bids and lack of leadership, not big moves so far but i want to keep an eye on the banks. remember i said goldman sachs, the biggest stock and the biggest mover, do the math there. that is a lot. almost 50 points in the dow just in the last 24 hours or so. other banks have been trending downwards. citi was $61 just a couple of days ago. it is low 59.

bank of america, the whole thing is very similar. some of this may be due to pension rebalancing, the tendency to buy bonds and sell stocks at the end of the year due to the way the bond stock market had moved. we have seen pretty good volume in the big bond etfs. agg is the biggest bond etf out there. that has been trending up on pretty good volume given seasonally light situation. there is the agg for the week. at the same time the ten-year yield has gone from 2.6 to below 2.5%. that moves treasuries to the upside on the price. i think pension rebalancing is the factor here. interest rate sensitive groups have been moving. let me show you one moving. come on over here, there it is. this is one of the big real estate shopping retes. they have been musk up. seasonal factors are main thing. i think some of the pension

rebalancing may be moving stuff at the periphery. >> thank you for now. will pension funds be the reason the dow doesn't get to 20,000 anytime soon? brian nick is here. we have been talking and welcome. a little bit more about the influence of pension funds in the market which is enormous especially this time of year. why? >> you have some late in the year rebalancing. whenever you have a pronounced difference between performance of stocks and bonds there is necessary rebalancing. that is about the same as the amount of retail money that has gone into stock funds. you have some sort sof cross winds with individual investors becoming more bullish at the sime time when large institutional investors need to do rebalancing. >> this is the result of rise of equities since the election. what about the rise of interest rates? >> really since brexit you had the rally relatively

uninterrupted. it creates this gap in a portfolio where maybe if you came to the year 60/40 reminds me of the end of 2013 into 2014. we saw a correction and a slight tick down. some people thought that was because you had pension funds rebalancing when stocks were up 30. >> they have to kind of do this around this time of year. it does seem like the overall direction of pension funds is that they don't have that big of a stake in the stock market like they would have 30 or 40 years ago. the portfolio allocation is generally way down. that has contributed to under performance lately. do you think over time they might vote to increase the allocations? while it might make sense it doesn't seem like they are doing that. >> something is happening where it is becoming more and more difficult to justify trailing performance based on the fact

you haven't had a lot of equities. your entry point is getting worse and worse. probably some people are asking you why haven't you kept up with the s&p 500. the largest institutional investors are holding liquid things. it is hard to get a sense of how you are performing compared to the dow jones industrial average. >> look at the stuff they are rebelling against. they are starting to think they can't all mimic the yale approach and do as well by it. they don't want to go into equities because of the quarterly volatility which they should be some of the longest term around. >> if you look long term the entry point doesn't look particularly attractive. i don't think stocks have been this far out in front since 1987. i think expect expectations to be around five percent or six percent. it is hard to argue that is most

attractive place to put money to work. >> it is ironic that it is that discipline imposed that is keeping them out of the market and missing the move here. put it in perspective for us. we have had the huge move in the markets since '09. when did it become expensive enough that pensions and oth other -- started in 2013. we had a bit of catch up after the crisis. you are probably looking at earnings. you have a couple of years where earnings haven't been growing. i think next year will have to deliver on the promises of this year which is earnings have to grow and maybe the market doesn't climb as high. maybe 2011ish type year. >> good to see you. happy new year. brian nick. let's get to our "closing bell" exchange for this thursday with the dow right now down just eight points.

ross gerber joins us from l.a. jonathan carpina and rick santelli checks in from chicago. so john what kind of order flow are you seeing on the floor? are you sensing that we are seeing some of this selling from pensions and institutions that we are expecting or not? >> i think that ended clearly a few sessions ago. heading past this election and towards the end of the year i think portfolio managers have positioned themselves for the end of the year and probably closed most of their books and kept little risk on probably did this about 2 1/2 weeks ago. seems the market is running on its own. nothing has really derailed it or moved it either way and we are watching it float higher and higher.

want to get everything in the books. and we talk about this dow 20,000. i want to kind of get it over with so we can start getting focus on the real fundamentals of the market. >> i see ross here and i expect we are arguing about apple or something. they have been doing okay recently in the dow. broadly speaking what are you looking forward to in 2017? >> i think the market is going to be great. i don't think we can ask for a better con influence of things happening to push earnings higher from corporate tax reform to tax cuts potentially for the wealthy as well as a stronger economy and now higher rates which are helping the financials. so we also have higher oil prices. all the things that hurt the market at the beginning of last year or this year is what is going to help us going into 2017. we are very bullish. >> rick, finally a breather for the dollar today but the

yields -- i guess the move in the bonds is commensurate with the selloff in stocks right now? >> i think it is and i think it is for the dynamics more of rebalancing than anything else. it is no shock that we are most likely going to settle tomorrow right where we are today. i said it many times from june to july of 2015 we had some significant tops, tightly paired together at 248 i think 2017 is a much more aggressive market year than any are thinking about just for one simple fact. the government has a great heart and they try to do wonderful things. what we are going to see in 2017 is the government leaving

various areas they are not good at and i think the dividend is greater because many are just not happy with the idea. if government is supposed to do something that makes our lives better and now we have a candidate that says they are not going to do it that isn't anything to celebrate. i think if you are looking at it from an economic standpoint there is a lot to celebrate. many think you have to kick the tight air systems. i think this rally is just a portion of what you get from tax policy. i think the other issues that the senate and the house should be able to put in the can and get done is going to be the big bonus nobody sees yet. >> i wanted to ask about export policy or just those numbers this morning. rick, just briefly on that point, only the chance to look through we are starting to see real deterioration. the goods trade balances is since '08. is that the stronger dollar.

is the market starting to push back after that poor reading this morning? >> i think part of that is that since we are the cleanest shirt in the dirty clothes hamper that our demand is drawing lots of things we are buying that aren't be reciprocated. even on the stronger dollar this has become the conventional wisdom. there is no economic cope left. what if i am a manufacturer, i can buy everything to put it together cheaper. there is a lot of things about a strong dollar that aren't horrible. if you are getting other advantages from things like less regulation and lower taxes that will offset the biggest issue that effects the stronger dollar from multinationals. i think there is a lot of ways you can squeeze things to make the numbers work better. i just think that the markets are going to be more creative in '17 than the analysts are trying to look forward to it. >> who is going to take us

higher? everybody loves technology. beyond that where are you looking for opportunities in 2017? >> first i have to say the first time i have ever watched rick and agreed with everything he said. i 100% agree with him. with that premise you have to be in financials. you absolutely got to be in them. they are going to have a phenomenal year because this is the ultimate dream scenario of the perfect scenario for financials to do well. and that is where we positioned almost 10% of our assets. >> we are showing energy picks there. rick, does that make you nervous? >> he agrees with everything for the first time ever. >> doesn't make me nervous at all. i am nervous that he wasn't marching in the parade last year. john, when we hit 20,000, before we go, when we hit 20,000 what do you think the market does? is that a sell off time or is

that a launching pad? >> i think we have had so much time to talk about it and think about it i think we will hit a pullback. it will give investors a little time to clear things off and get into the first quarter. >> good to see you guys. >> happy new year. >> 45 minutes to go in this session. the dow is down 11. s&p 500 is down a point. the small caps down by two and the nasdaq is the worst performer with quarter percent drop. jeff bezos is at it again. amazon pushes package delivery division to new heights. a discussion on amazon stock and whether it can bear the weight of more pie in the sky -- >> what is happening to toshiba stock. more than 40% this week alone. we will bring you up to speed. you're watching cnbc, first in business worldwide.

we are looking at a boat

right now that sits near a russian compound in centerville, maryland. the u.s. has imposed sanctions against russia. they have closed two russian compounds one in maryland and one in new york. and they have expelled 35 russian diplomats all in retaliation for the alleged involvement of russia in hacking the u.s. election this year. we are focussing on that right now. we don't know a response to speak of. >> some are suggesting waiting to see how donald trump responds perhaps in a tweet. they have been given about 48 hours to leave the country which is one reason why there is a lot of focus on the activity down there now. we will keep you posted and have more as the situation develops. like bill said the market has not reacted to this one bit as far as we can tell even as --

>> the dow down eight points. we are about 175 points away from dow 20,000. senior housing properties trust trading higher today. initiated coverage with overweight rating and price target of $23. you can see it is at $18 right now. the company has a leading position in the senior housing market and that it sees strong fundamentals in that industry going forward. >> that is exercise happening behind us here. >> planet fitness is ringing the closing bell. >> not planet hollywood where you eat after the workout. amazon has been hard at work in their delivery drones. the company winning a patent for air borne fulfillment center, in other words, a flying warehouse. take a look at drawings sending packages straight to your door. >> how will this help amazon's

bottom line? joining us now andrew keen. he is long amazon stock. chris johnson is looking for a pullback before getting out at this point. what do you think of this whole -- it seems like a gimmick to me. what don't you like amazon stock right here? >> right now it is not about not liking amazon stock. it is just noticing that the stock has gotten into a similar situation where it is overbought. it stretched itself too far and the other side is that the market is kind of crowding this trade. in other words, when we look at the wall street analysts 90% of them have buy recommendations. typically that combination signals a pullback in the stock. we look at that as an opportunity to buy into this for the long term. we are long term bulls on amazon. >> you are also in the bullish camp.

where do you see the stock going? >> i couldn't disagree any bit more. you are talking about a pullback. it is trading $760. it is up almost $90 from the highs. this is a pullback to get people into the stock. i am long the stock through option market. is this catalyst of the groenz going to effect anything immediately? no. i think drones are the wave of the future. there is massive support around the 710 level and the 200 day moving average. it is trading 760. it is up 12.9% this year when you have market hitting all-time highs almost on a daily basis. we are up 30 points on s&p. amazon come up $80. i think there is a pullback and opportunity to get long the stock. i can't justify the valuations because the ratio currently and in the future is astronomical. what i am debating is price action is to the upside.

earnings in january and if you look at how amazon performs it has rallied on earnings. with all of those this is the pullback to buy it. i don't think it breaks under 710. >> with all due respect i'm not say tg is going to happen to you. wall street is littered with people who said they want to get into a stock with valuations being down. you're not worried bet that? >> i can't justify the valuation. i'm not a fundamental trader. i am a trader that looks at markets. i am playing option market through february. i think you can get back up to $830. can it roll over the rest of the market? absolutely. i have defined the setup that i think amazon will move higher. this is a pullback. drone thing a little bit of news. >> you are making me all

jittery. talk about the longer term. >> let's look at calm it down is exactly right. sounds like andrew is looking at his watch. when you look at three other periods where amazon put the same chart up it has been overbought, it is seeing pullbacks of 30%. it is seeing 30%. those were great buying opportunities. they pulled down to the 20 month moving average sbrmpt dh you think amazon sells on 30%? >> i think there is a possibility which is where we see the long term support. options traders can take advantage of a few days, a few weeks, even if you are stretched out to february on expirations. >> hang on for one second. what you are saying about amazon reminds me of what people sometimes say about the broader market which is i think it can go down to 30% and then i will buy in.

why not if you think it's a good company and it's not overvalued why not buy it here? >> that's why we are still hold tg right here and we won't get it out of the portfolios. we will look to add it as it pulls back further. if you reflect back to apple, everybody pounded the table when it was in the same situation, long term overbought, seeing lagging in the market and everybody loved it. that is the magical thing. when everybody loves a stock all it takes for amazon to say aws isn't as rich as we thought it was, he is right. we are not going to see these -- >> are you saying -- >> a little bit of a bump in the road is going to cause that extra down side. we do see down side potential there. >> you say they are holding the stock right now but it doesn't matter what point you bought it in. holding it is still long the stock. you think the -- we have been holding for more than two years. >> buy it on the pullbacks. >> we will continue to --

>> i think that is ridiculous. >> our long term perspective is still very bullish and we would be buying more on that pullback, not selling. >> very good. good stoosee you guys. >> we will jump back in. a lot of passion over amazon. there has been for years. thanks for joining us. let's head to the close with 36 minutes left in the trading session. the dow is virtually unchanged. two stocks up and one stock down. verizon has been the leader and the financials led by jp morgan and goldman sachs -- >> amazon might be added to the dow. >> there is a thought. what is taking them so long? financial stocks have been weighing on the dow today. a top portfolio manager saying they have more room to run in the new year and will state his case coming up. d i neveget tired of i e you entily prepared to retire?

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we are keeping an eye on markets. after a sharp down day we are not rebounding just hanging on and drifting lower for all major averages with the nasdaq hurt the worse today. dow is down seven. toshib a shares down again. >> earlier this week said the cost overruns had bought from

chicago bridge and iron last year might result in what they called several billion dollars in good will charges. company added figures are still subject to determination and overstated profits resulting in resignation of ceo and $60 million in fines by japanese regulators. >> time for cnbc news update. >> here is what is happening. the obama administration is rolling out stiff new sanctions targeting russia's intelligence community. the move is retaliation for alleged cyber attacks during a presidential election. 35 russian diplomats are being expelled from the united states. two russian intelligence compounds in new york and maryland are being told to shut

down. honda is recalling nearly 650,000 oddsy minivans between 2011 and 2016 because the second row seats may not lock during a crash. no injuries have been reported. owners will get a letter in the mail in february. residents of northern georgia are cleaning up today after a band of intense storms downed trees and power lines. local authorities say 25 homes sustained moderate to severe damage. no injuries reported. a violent crash caught on camera here at a gas station. police say a 35-year-old detroit man flew into the gas station. the driver survived and is in stable condition. that is the cnbc news update at this hour. back to you. >> thank you. we have breaking news on u.s. sanctions just imposed on russia. john harwood has more. >> i just got off the phone with various u.s. officials talking about the steps they were taking

today. they described in broad terms a pattern of aggressive behavior that includes not only the steps that russia took to interfere with the american election which they described as a fact, they also talked about cyber attacks on u.s. companies and harassm t harassment. they said all told this behavior is unprecedented in the post cold war era. that is why they took the steps that they are taking today. they, of course, announced the russian involvement in october but today is the sanctioning period. they have expelled 35 diplomats. this is the first mass expulsion of russian diplomats since the year 2000 when in the wake of the robert hanson spy case you had a number of russian diplomats expelled. you is the two compounds closed which were dual purpose partly recreational, partly intelligence and other purposes and those expulsions and the

shuttering of those compounds will be complete by the end of the weekend. and so the administration is saying that they feel justified in this. they were asked whether president-elect trump who has not accepted so far the conclusion that russia interfered with the election could reverse the steps. they said while a future president could but that would mean that the united states president would say i'm going to let in a large traunch of russian intelligence officials into the u.s., suggested that might not be either substantively advisable step to take. >> the picture on the right is a camera i guess nbc news camera. we are beholdened to whatever they are showing us but it is taken near and above the russian compound there in maryland. i will point out i don't know if you have heard but the security agencies here in the u.s. are saying the hacking activity by russian intelligence agencyicize what they are calling quote part

of a decade-long campaign of cyber enabled operations directed at the u.s. government and citizens. this is not a new development here. >> that's right. the other thing that the administration is doing, they are releasing some of the forensic data on how they track this hack. some of the ip addresses with the idea that they can interfere with russia's ability to act going forward. they are giving to cyber security firms the malware that they have discovered and so by not only implementing the sanctions but by giving a lot of information about how the russians operate they are hoping at least for a time to disrupt their ability to operate in that manner. >> when is the last time we expel diplomats? >> do not know whether any individual diplomats have been expelled since 2000 but that was

the last expulsion of numerous diplomats. >> seems a pretty severe step to take, is it not? >> i think it is a pretty severe step to take. so shower shuttering of those two facilities. those things are more immediately impactful than, for example, the placing of the officials from the gru, the russian military intelligence unit on the sanctions list. that means they can't travel the united states or can't move financial assets around through the u.s. financial system. they may not have those assets. >> john, thank you. john harwood there in washington joining us now is antonio martinez who joins us here at post nine. what do you make of these sanctions imposed today? >> what i expect is this is just one way to in a sense box in what kind of policies a president-elect donald trump is going to be able to impose.

>> how so? >> make it much harder for him to basically reset relations with russia, pivot towards russia and as you have seen not only in terms of the sanctions but the response even from paul ryan that it is clear that it is not just the current administration but a lot of pushback within congress, as well. >> paul ryan said it was an overdue step among other things in his statement in which he tried to kind of both be hard on russia while defending potentially the trump administration or not fully endorsing the obama administration. kind of a difficult tone to strike there. what kind of response do you expect if any from russia? >> i expect the russian government will probably -- it's hard for me to say which direction they will go. my expectation is that they will wait and see what happens with the next administration and see if things can change.

i think there will continue to be aggressive. >> these are publically announced sanctions. the obama administration is saying there will be others maybe a little more aggressive that they won't announce. what do you imagine those will be? i expect those will be towards more individuals as much in the security services of russian intelligence services as well as people around putin. >> just this morning russia and syria announced a cease fire. that seemed to at least kind of quell a lot of the intense violence we have seen there lately. that is another area where there has been tremendous disagreement between u.s. and russia. this seems to be specifically talking about hacking issue? in other words, it's trying to say we think you did this in terms of hacking our elections, our response is these measures? >> it is really unclear that you will see movement in the short term on, say, syria or u.s.

response there especially considering it is unclear what the position is going to be in the trump administration or the focus is going to be on isis. it is unclear that the current administration will have a lot of room to move. >> thank you for joining us at such a last minute. we call to you after the sanctions were announced. we appreciate you stopping by. >> there is the kremlin saying there will be a response and not sure if trump approves the sanctions. 24 minutes left in the trading session with the dow down 17 points. a leading trader will tell us what he is watching to the close coming up. and with key elections overseas looming large two financial planners give us their take on investing in europe versus investing in the u.s. stay with us.

breaking news now from the kremlin responding to the u.s. sanctions. >> thank you very much. kelly hit a couple of headlines here. let's get the run down of how russia is responding to the expulsion of 35 diplomats kremlin spokesman saying sanctions will destroy diplomatic relations with russia

and they are unlawful. they say russian retaliation will be, quote, adequate and that we would not exaggerate the efficiency of such sanctions especially because moscow says it is not sure if president-elect trump will approve the new sanctions and they do hope that the after math of the sanctions will eevaporate. tough words coming from the kremlin in response to the sanctions. >> thank you. tough day. we have 20 minutes left in the trading session with the dow down 15 points. joining us to talk about where we are going from here kenny polcari. feels like the market is done for the year. >> it absolutely feels like it is done for the year. we have been talking about this for a while. i think we hit real resistance. we have tried four or five times to breach the 20,000. so the market is recouping and consolidating. that being said we have broken a

key supporter on the dow 19980ish. so the truth is there is no support back down to 19300. >> are you surprise there has been not more of a response to sanctions to russia? >> a little bit. it is 3:30, late in the day. >> these are markets that are supposed to be moving. >> i think people have to sit -- i'm trying to understand the whole thing myself. was this necessary. did he have to do this? what is he setting us up for in the new administration? it is a little bit i think infuriating on one level. you have to let it settle. i'm not surprised the market is not doing much. a lot of people have made their bets so i don't think there is a lot of movement. >> maybe the markets are waiting for tweet from donald trump. >> absolutely. >> we'll take a quick break with 19 minutes left. the dow down 16 points.

>> donald trump's election shifting markets and the world but his rise to the presidency may be just the start. up next, a look at five globally important votes for 2017.

the world and the markets are figuring out what to make of the election of donald trump as president. >> we are not finished yet. in the months ahead several other elections can effect the markets and global affairs. seema mody joins us now. >> the rise of the antiestablishment view with the leaders of these parties gain enough votes to secure victories the risk of european project breaking down rises. citizens in netherlands, france and germany head to polls. could a next be in the cards. vow to immediately leave the eu and france leader has been gaining ground ahead of the presidential election. she called for france to pull out of the eurozone and angela merkel, one of the strongest proponents will be running for her fourth term as she continues to face rising back lash for her

handling of the refugee crisis. in the middle east iran holdathize presidential election in may 2017 and pressure is building for president rouhani to ensure the nuclear deal is not ripped up. a reshuffle in china's standing committee, the most influential political body in china and changes are expected. the outcome could likely alter the way china manages its economy. >> we are learning more about the consolidation of power. markets certainly watching that. for more on if retail investors should be investing here in the u.s. or perhaps in europe or one of the other countries let's bring in two members of the cnbc digital adviser council. >> joining us are rick edelman and johnson from the wealth management. good to see you both.

we have head lines involving the russian sanctions not see ag market response there so far today. just points up to some of the risks that are still involved in investing overseas. currencies are a part of that. you get political risks, as well. >> you are absolutely right. this is why we encourage our clients to keep foreign exposure to 20% or less of total portfolio. there are clearly investment opportunities and part of globally diverse portfolio. let's not get carried away. both currency and risks, high of over a decade and political risk especially with the change of our own administration. being careful about investing too much overseas. >> what about you? again, whether it is specific to a country like russia which sometimes can be a favorite for those who want to go out on a limb, what is your recommendation to clients? >> my recommendation is always to have a diversified portfolio but to rick's point you have

legislative risk. people, it's hard to appreciate how difficult it is to have intranational policy with different countries which would be the european union. you have the populism as a consequence of some of the refugees coming in. the biggest problem i think is data dependent while there might be growth in the united states on a rebound you don't have growth in europe. on top of that you have negative interest rate policies that negatively impacted banking institutions. you see that with what has happened in italy. >> having said all of this you would advocate money going to europe and put it in what you would consider an efficient vehicle for individual investors, those etfs, do they hedge at the same time? >> we are not a big fan of hedging at all because they are ridiculously risky and expensive.

just go with fully 100% long portfolio, highly diversified across the entire european continent and that way you are reducing risks with a low cost portfolio, getting you the exposure you need. >> rick, is there another way that somebody might say a strong dollar in overseas currency might weaken. i want the market run up, is there another way that people can do that or is that not recommended? >> everybody wants high return with low risk. there is no such thing. >> what about individual countries? germany is doing better than italy, for example, or the uncertainty about great britain and brexit situation. do you play it a little lower altitude than just playing the whole continent or all of europe? >> i think risk is always in direct proportion to return. if you hunker down and pick one individual country and let's say merkel doesn't win reelection.

my sense that the germany would be a better play. one note about the dollar you wouldn't want to hedge it. if the dollar gets stronger that might happen because interest rates are going up. euro going down helps countries like germany that are very dependent on exporting the items. one note, though, is don't forget if the dollar gets stronger and we are talking about europe versus united states if the dollar gets stronger that means consumers, the dollar buys more things. you have more purchasing power. so much of our economy is dependent on domestic consumption. it also helps the united states, as well, as corresponding would help countries like germany. >> with the euro where it is right now do you invest or book a vacation. good to see you both. thank you for joining us. ten minutes left in the trading session with the dow down ten points. >> we will have more on president obama's sanctions imposed against russia and what it might mean for your portfolio

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joining us to talk more about today's markets is senior

portfolio manager welcome to you both. sarah, what happens after we turn the calendar? >> i think that there is a possibility certainly we have been seeing with russian sanctions today and some of the global events that are happening that you could see a little bit of a pause at the beginning of the year. you have the big santa claus rally and then you get to january and everybody goes we have a whole year. we have all of these things that we think we are promised. so i think you can see a pause. >> everybody loves financials right now. if the yield curve continues to steepen they like the industrials, the materials, are you in that camp right now or where are you putting money to work for next year? >> i do believe this rally has gotten a little bit long in the tooth as sarah mentioned. i think a 3% to 5% pullback is something we can certainly see after the new year. that being said, though, if you

do see a pullback like that it will be short term in nature and i think the pain would come in the sectors that did the best since the election. so from a short term perspective i think there is a little bit of elevated risk in, say, financials or telecom or industrials but i do believe that will be short-lived. >> i was going to ask would you be a buyer of those areas on such a pullback? >> i think that would be a fantastic buy on the dip opportunity. going forward i do believe this yield curve is going to continue to steepen as a measured pace. we are not forecasting any kind of spike in long term rates. as that yield curve steepens that helps out the banks and that is generally a signal of increasing economic activity. >> if we get tariffs, the dollar continues to strengthen, all of those head winds. >> i think the dollar is going

to hurt multinationals and i think that will be a place where you have to be a little bit careful because a lot of the dollar exposure will hurt them. i think tariffs is an open question. i think the higher dollar is definitely an issue for a lot of them. >> take a wait and see attitude. good to see you both. thank you for joining us today. >> we will take a quick break and come back with the closing count down. >> you're watching cnbc, first in business worldwide. this is my retirement.

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about 90 seconds left in the trading session. bob pisani joining me. we have the dow down 15 points. so clearly as we have been saying you are not going to get dow 20,000. the interesting mix today verizon was the best performer among the dow components and financials were laggers today. so jp morgan and goldman sachs at the bottom. >> goldman was 244 yesterday. today 237 or so. that is a slow descent. that cost the dow 50 points. goldman sachs since the high yesterday cost the dow about 50 points. >> it led the charge and it's holding us back here. >> recovered a little bit. jp morgan the same thing.

all of the banks, so just keep an eye on that. we see interest rates moving up a little. >> thanks, bob. for those of you planning your resolutions planet fitness has exercise equipment all over the floor of the new york stock exchange. stay tuned for hour number two of "closing bell" with kelly evans and company. thank you, bill. welcome to "closing bell." i'm kelly evans on one of the final trading sessions of the year. here is how we are finishing up the day on wall street. looks like red across the board except for the russell. dow dropping to 19,821 further receding from 20,000. the s&p 500 dropping less than a point. the nasdaq moderated its losses on the bell was down about a quarter percent. the russell did manage to close

higher by about 2.5 points. the markets have not recovered after yesterday's sharp selloff. we will have much more on sanctions against russia and kremlin's response coming up. joining me is michael santoli. also with us cnbc contributor heather. good to have you both with us. mike, it was so clear when we were in rally mode what the story was. financials were driving. changing a little bit day to day. what is the story now? >> it is a slow unspooling of a lot of those moves. markets really just holding steady. today could not have been much more balanced. 50% of stocks are up. the average stock in the s&p almost dead flat. the market is going to hold the value for a moment. if i am wanting to be bullish we

say hovering near the highs and burning off the overbought conditions and maybe setting up for something good. not a lot of catalyst that you can see certainly ahead of year end. right after that i think it is a noisy period to figure out just how much of that rally into five weeks after the election used up good news. >> a lot of those companies and financials led the way were worst performers today. home depot and others were a little bit better on the upside. the question again is you have this huge wave as everybody has been talking about pension selling. once we get past january 1 that is baked in. >> i think that investors even though there is not a lot of volume right now with trading there are a lot of stocks in place here for 2017 and the advisers are making their plans now. so it is important today and tomorrow even on light volume and a relatively flat trading day i think it is important to

keep an eye, of course, on the financials, small caps as well because they have been leading us higher in december and there is sector rotations. that is what we have seen into technology and now back to maybe a consumer, perhaps. so you want to watch the leaders and laggers. is there really a trend? is it a clear trend right now? we are not seeing leadership from one specific sector. that is what you want to see. >> and cooked up -- he looked up numbers on the final trading session of the year. we had it in 2012 and 2008. >> he served up. two of the last five or six years you had one percent gain on the final trading day of the year. this santa claus rally period we refer to as being something as a bell weather for how january

will be. it extends to the first two trading days of the year. >> i'm falling out of love with a lot of these. >> the january indicator last year -- >> january indicator. these things are vague rules sdplmpt with dow 20,000 is another one. >> i remember talking to people and going i guess we are going to do this in the shortest time ever, this 1,000 point move. we got to 19,985. what are you looking to for leadership? is it the same group that got us to this point? >> i think the leaders this year may become laggers and may become leaders. in 2015 energy was lagging

sector, oil below $30 a barrel. this year energy is up 25%. i think the same may happen in 2017 meaning i'm going to hang my hat on consumer. consumer staples have not been participating in all of this upside and this rally that we have seen and yield a good dividend. i may shy away from not just -- i wouldn't just be interested in the consumer for a dividend yield but for upside potential retail, wage growth. wage growth will be increasing and possibly inflation and that will help the consumer. >> we had data this morning. i mentioned this earlier. the export numbers really weren't great. the dollar is taking a step back. we will see if that helps moderate. if not it could be more of an issue. president-elect donald trump saying sprint will bring 5,000 jobs back to the u.s. while another company will add 3,000 jobs. a lot of americans might not know about this. josh lipton is here to tell us

more about it. >> so raised $1.7 billion and is going to put that money to work building out a massive network of satellites to deliver high speed internet service in rural and emerging markets. greg wiler talked about his kaech's mission this morning on cnbc. >> we are building a new and ambitious system providing internet access to almost 10 million residents, doing enterprise, providing internet access to aircraft and ships. we have found a great knowledge base here in the u.s. and we do a lot of work in other countries. the u.s. has been fantastic. >> so tells me 900 satellites will be built on assembly lines where some of the new hires will work. first prototypes will go into orbit next year. service expected, he says, to be

available in 2019. he says that consumers will buy these small terminals and this is how they will connect to his constuilation of satellites and hopes to sell them for around $100. back in the 1990s a number of companies pursued the same treme of internet beaming satellites. they had big name backers but wiler says the dream can be realized, the technology is ready, costs have come down and the need is real. >> thank you. real quickly, he said we have been here before this one web company is backed by soft bank and that is part of the reason it is now involved. brilliant marketing on their part. >> it is hard to argue with the good news of new jobs being here. it is hard to know whether this can be extrapolated out to across the economy. if other companies want to get that kind of seal of approval

from the incoming president venture back startups with engineering jobs on offer are not necessarily pulling in those discouraged workers. >> for more on the impact this could have let's bring in the american action forum. would you agree we will take any jobs? what do you think would get to the heart of the problem? >> i think what gets to the heart of the problem are other problems made on the campaign trail. talked about tax reform and infrastructure program. those are the kinds of things i think under pin the post election equity rally until recent days. there has been a big jump in consumer confidence. all of that is an expectation of an economy upshifting from sub2% growth to something much more rapid. that is what they are looking for. >> talk about how we are going to get there. in just a couple of days the minimum wage will go up in many

jurisdictions around the country. new york city will go up to 11 bucks. the guy who owns the apple bees franchise is talking about the impact. been laying off a lot of employees. there is a lot of things percolating as he is about to take office and perhaps shake things up again. how is this all going to translate to better wages and job growth for everybody? >> i think if you look at the economy right now it's not particularly strong. we had a big third quarter headline number but was all exports that have been proven unsustainable. underneath is an economy there, household sectors hold it up. it is going to have head wind. he is going to have to move quickly to change those fundamentals. >> was that you, heather? >> yes. >> jobs, jobs, jobs. i love it. i think with unemployment near 4.6% right now if we are going to get growth out of the economy over the past eight years

nearing 1.8% on gdp we need it to come from new jobs. i love this news it sounds great. i will make sure whatever i'm doing a robot can't replace me. >> we are all trying to make sure of that. that is what is happening. we are talking about innovation occurring and there is a fear that it will deplace more people as we are trying to help them. talk about where the regul regularatoregula regularatory rollback or infrastructure plans, how that is going to filter down. >> i think there are two things to be cognizant of. the regulatory explosion has been across the board. basically the obama administration averaged about $100 billion a year in additional regulatory costs imposed. it hit small businesses and for the first time we saw startups fall below. it hit large companies. and getting that under control will help across the board.

infrastructure obviously means different things to different people. you can look at transportation infrastructure, some of the energy infrastructure and certainly the modern broadband infrastructure. i think they will be high profile targets. those things will matter. on the whole fear of innovation we have been afraid of this every couple of decades for hundreds of years. what has happened is we have remained fully employed and wages have risen. if there is one thing this economy needs is to sustain growth and wages. >> doug, thanks for joining us. that's the chorus in the background. i was just going to say they are going to have a full plate. there are high expectations. >> i think on paper all of it should be friendly to business, to people who own capital and all the rest of it. in the details not just getting it done it seems so much is

towards investing heavily in new capital investments in this country. they are more likely than not to be -- who knows if they are going to be profitable. unintended consequences are a big deal. i don't know that you want the bull thesis to rest so heavily on policy as opposed to other things going on. >> these are the times that we have been given. thanks for joining us. >> thank you. >> coming up dan niles ditching what he knows best. he will explain why he is voting on a totally different sector for 2017. white house announcing consequences including sanctions and expulsion of diplomats for russia. what that means for the future of u.s./russia relations. banks rallying after trump was elected president. slowing down of late. will it push into next year? we will bring you the 2017 play

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and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back thmpt white house responding to russia's interference to u.s. elections with new sanctions. john harwood has the latest.

>> let's talk about sanctions themselves. these were in response to not only the russian election hack but what the white house described as the concentrated consistent pattern of harassment of u.s. diplomats in moscow that they said was the worst of the post cold war era. there were russian individuals who were associated with the gru, military intelligence unit placed on sanctions list prohibiting them from using u.s. financial system. russian firms participated in the cyber hack were also on the list. there were 35 diplomats in the u.s. who had been expelled. they will be out by the weekend. two russian facilities both recreational but also intelligence that had been shuttered by this action effective through the weekend. for context this is the first time since 2001 that a significant number of russian diplomats have been expelled. in addition to the sanctions

themselves there has also been a significant amount of disclosure by the administration. they have put out internet addresses, ip addresses. they have named individuals. one individual previously been the subject of fbi most wanted poster for his role in the criminal hacks of u.s. businesses has been identified as participating in the election hack, as well. so there is disclosure to try to deter the russians. the political implications are fascinating. the administration has taken this step, could be reversed by donald trump but we have statements out this afternoon from paul ryan, the house speaker saying these sanctions are overdue from john mccain and lindsey graham saying they are overdue and will seek tougher sanctions against russia. that means president-elect trump once he takes office could reverse them but will face heavy republican resistance and is sure he can reverse them if he

wants to invite a large traunch of russian intelligence agents back into the country. fascinating how this is going to play out. >> those pictures were a live shot of one of the compounds where intelligence officials were given 72 hours to leave. talk a little bit more about the implications. we heard from the kremlin saying there will be a response and appropriate i think the word is. they called the actions unlawful. this is a pretty big move by the u.s. here. >> it is. and it's a long time coming. i thought it should have come probably in the summer when the first information came out. at the time probably would have been less of a shock. now it does look a little bit of a sign of desperation of the obama administration going out in three weeks almost more than three weeks and that is how the russians are portraying it as

barack obama's playing a very weak hand. he can close all this but the trump comes in and dismissed this as we have to move on and get on with our lives. that's the question of how it is going to play out. >> do you expect this to be overturned by the trump administration even though optics may not be great? >> i am not sure. the first reaction that where have to this is i think it is entirely inadequate. the russians have cast doubt on validity of our presidential election which is pretty much a shot right at the political system here. we are responding by expelling a bunch of diplomats and putting three companies on sanctions. that strikes me as entirely inadequate -- >> in what way do they cast doubt on the validity of the election? do you think the russians themselves cast doubt on validity of donald trump being president? >> i do. it doesn't matter to me whether they turn the election in mr.

trump's favor or not, the fact that we are debating that within the united states means there is less prestige attached to the office of the president. we have seen the russians do this in parts of europe. this is the first major effort like this in the united states. i think it deserves a very serious response. >> like what? >> more than this. 35 diplomats isn't a record for us. we did 51 russian diplomats in 2001, 80 in 1986. this is not even a terribly forceful response in terms of kicking diplomats out. >> has it been definitively established the extent to which russia interfered? to release e-mails from a group that they hacked is one thing. to have tampered with the voting booths, for example, would be something completely different. is this a proportionate response to what we know so far about their involvement? >> it is and isn't. first of all, what the russians

are saying we didn't tamper with elections and proven 17 american security companies said they did. russians argue that america is always negative about russia but putin didn't do anything. one of the problems with any response from the united states is that russians never stay in that proportion. they always go much further than that. i think that is something to be very concerned about because putin doesn't retaliate. we have to remember that the services and most of his cabinet is somehow implemented in it. so they really see it as an attack on the kremlin and all the institutions there. so from their point of view it is unproportional and they will go much further unless donald trump makes a deal with them. >> i am a little surprised there wasn't a bigger reaction in markets as all of this was

developing this afternoon. >> it didn't seem to cause that much of a ripple. it is unclear if it is just considered to be this expected response. nothing seems to really escalate tensions beyond where they were perhaps although it is interesting for us to note that the obama administration says we intend to reserve the right to retaliate in ways we are not going to talk about which is kind of an amusing thing. maybe that is a defense against saying this was not really enough of a response. >> we have to go, but do you have sense of what the response from russia might be having established the kremlin saying there will be one that maybe it will be larger in proportion than to what we have done here? >> i suspect it will be loud. mr. putin is winning a lot of gains. he humiliated us in syria and pushed us out of negotiation process with turkey. i'm sure he will expel some diplomats and maybe apply more pressure to eastern europe.

he is in such a strong position right now that unless the united states gets a lot more assertive i think the next several years will be difficult ones for us. >> thank you guys for joining us. reacting to that news this afternoon. rise nothing tropical storm rates are already hitting home buyers. how to reduce your mortgage rate. donald trump is tapping carl icahn as special adviser. dan gallagher joins us for more. stay with us.

interest rates on the rise and buyers starting to feel the pinch. a potential way to alleviate some pain. do tell. >> mortgage rates took a big jump and kept ongoing. if you were in the market to buy a home last summer but you just couldn't pull the trigger guess what it is going to cost you more now on monthly payment for the same price home. already we have seen the hit from rising rates pending home sales dropped in november to the lowest level in nearly a year. and they were lower than november of 2015. pending sales measure contract signs, not closing. so people out shopping in november factoring higher rates. the average rate is well over 4% and while it has been moving in a narrow range the expectation

that the it will move higher next year as the economy strengthens. add faster rising home prices to the mix and you have a toxic cocktail. you can buy down the mortgage rate. you have to have more cash up front but lenders will lower the rate if you pay a percentage of the loan up front. one point is 1% of your loan amount. if you are getting a 30 year fix you may get a rate of 4.25. if you pay one point you get 4%. that lowers your payment by $44 a month. this is only a savings. if you stay in your house for at least seven years that way you are saving more than you paid up front. if you want to see the numbers again they are online at cnbc.com. >> there has been so much written about the housing

market. it's just there are people now who specialize in buying older properties, tearing them down and i think the journal featuring somebody building new ones. a lot of focus on home prices going up much more in urban areas than rural ones. it seems in a way the market for everything that happened is back to being kind of a regional one. >> everything in real estate is local. you are seeing more home flipping now that home prices are rising. you are seeing tear downs because builders want to build in the priciest areas. they don't want to go out into where they were because they know that's not where the demand is. what we need in this market is a lot more supply coming in. we are not getting it. with the higher mortgage rates you have some people who might have wanted to sell and are saying i'm not going to put my

house on the market because i don't want to lose my 3% mortgage rate and move into something more expensive. >> it is interesting to look at the home builders index and to the point she was making it is unchanged for the year. we were down in january. we had a comeback since the election and it has been a round trip. >> the overall volumes, starts are up. looking back for a couple of years but not as if it has been a big thrust of demand. is it prices? or is it volumes of new homes? to me the rates the way they have gotten to now shouldn't be a game changer. it is one more frictional element in the mix here. >> something to keep an eye on as we head into 2017. time for a cnbc news update. >> a helicopter carrying four people went down over a remote

area in the angeles national forest. that happened about 1,000 miles from the summit. all the passengers were rescued safely. high dozes of fish oil late in pregnancy can significantly reduce the risk of asthma in children. the danish study followed 700 women and babies. children were 30% less likely to have asthma symptoms. the great lakes has a big plastic problem. a new study estimates 22 million pounds of plastic from the united states and canada makes its way to the lakes. last summer scientists found masses of floating plastic in superior, huron and eerie. serena williams is engaged. the pair revealing their news on the website this afternoon. williams posted a poem detailing the couple's engagement in rome. that's cnbc news update.

>> i had no idea you were rocking my world with that news. i can't say we have had serena on the show. >> this might be an opening. we want to talk to you. >> huge fan. thank you. >> banks staging a fourth quarter rally. does it present a buying opportunity? that's next? mixed martial arts. we'll talk to the ceo of the world series of fighting about the booming business still ahead. lexudecember to remember sales event get up to $2500 customer cash on sect 2016 d 2017 models forhese terms see your lus dealer.

the huge rally has been slowing down. joining us with whether this is a buying opportunity. wear a lot of hats and he says it is a great time to be a bank stock investor. if you have been investing the last couple of months. what about now? >> so here is the wish list. the wish list is fed hiking. we have it for now. looks healthy, as well. long growth, optimism is there. we see consumer optimism. most are telling me the ceos have plans and you are excited. maybe growth will be there.

tax cuts, most banks pay pretty close to full boat. they are one of the biggest beneficiarys of tax cuts. >> a lot of this is priced in. >> how much of the wish list do you think is priced in or at least in what sorts of banks does it seem priced in? >> i would say long growth, yield curve, fed is kind of priced in. the tax cuts are quasi-priced in. i think the group can have more if it happens. some of the changes that can happen can really be a big driver. think about jp morgan, morgan stanley. all the position trading they can do. very clearly look at the fixed income markets and how dysfunctional they are. >> a couple of these are long standing issues. it is unclear the regulation going away would change the nature of shifts taking place there. >> i think earnings used to come to trading. it is helpful the markets being

efficient to have the big players here. trying to move having big players. >> plenty people -- we raise the same issue which is how much exposure should they have if trades go bad? >> governments were exempted from -- in theory they can trade -- >> i guess the question would be for me if i look at the goldmans and jp morgans you don't want to operate within that constraint. the market didn't put a high multiple on. that can't be your entire story. >> it is part of a factory that could drive earnings and power. it is healthy for the market to allow them to do it. i think they will hold high capital. that is the part of dodd-frank that i never argued with. other roles interchange fees what do they have to do with

this? if you are $10 billion you get hit with this. >> it just transferred money to the retailers. >> let me ask you your top couple of picks in that whole space as we get into next week. >> bank of america, that's easy. maybe it is consensus but i think there is more to go there. i started looking at the regionals that can be active here. you can look at bank of north carolina, first horizon, western alliance. they have drivers. they are going to do m&a. >> that is what i was going to ask. a lot of deals have been thwarted. even the ones struck a year ago. a lot of people knowing they are nearing thresholds but they have been thwarted. >> i think the $10 billion level will be lifted and i think banks are not faced with pressure as they hit 10 billion across it. 50 billion, come on?

really important? you are not. maybe 150, maybe 200. that allows those guys in the middle to become active. one of the best things banks have done is try to cut cost. the best way is to consolidate. >> a great way to set up the next discussion. thank you so much. happy new year. be careful what you ask for. those might be the words for the wise. we'll tell you what the social media leader asked followers. president-elect trump has raised eyebrows with some ideas. we are going to talk to one time and maybe future sec member dan gallagher next.

as we were discussing financials have been lagging lately but the sector has been on a tear since donald trump won election. it is on regulatory rollback. you can see gains of 32% to 22%. commissioner dan gallagher is president of potomac global partners. what do you think are going to be the first priorities for the donald trump sec? >> first, you know, i believe one thing that elizabeth warren said is very true that personnel is policy. you have to get the set up from the top, two new commissioners.

my seat is still open on the commission. they have been operating with three. mary jowhite will leave. you will be down to two. two new commissioners, new division directors. you have seen -- >> someone from your firm. >> i am so happy in the private sector. thanks so much. >> you just join us still getting your feet under you. once you get that chairman set, that chairman gets the power of the agenda which is the biggest authority you can have on the commission. >> do you have a preference for who that person is? >> i have a preference for the type of person that is, a free market person someone different than we have had for years. in some ways it makes sense. i think we need to think about deregulation for the first time in forever maybe. i haven't seen it. >> it has been a word you couldn't utter since the financial crisis and not a priority of the obama administration. why for the public who may be

skeptical of deregulation thinking it will send us into crisis is it necessary now? >> we had a build up of regulation in the bush administration. then we have a financial crisis the response to come is dodd-frank which piled on regulations. without even thinking about the aggregate impact of all that regulation and what is happening internationally and outside of dodd-frank. regulation after regulation has been rolled out. it is time to take a deep breath and stop doing things. people say nothing is getting done in washington. i wish nothing was getting done in washington. reflect on what has been done and then this new chairman will have to reflect on how we fix a lot of these bad things that have happened. >> it is hard to undo policy. >> how much of that has to rest with congress as opposed to sec chairman? >> and the answer is it is a case by case analysis. some rules will be high on the list for congress to take on legislatively. if there is a mandate unless

that comes off the books whatever chairman comes in will have a law telling him or her to do something. some will be right for that. some will have to be handled administratively. sec will have to do a notice to amend the rules. other kz be dropped. >> what about not enforcing things like the dol rule, i'm not sure how that overlaps in terms of what the sec can do that if you think it will try it do something? >> it is labor and the enforcement mechanism is plaintiffs lawyers so they are ready to enforce. it is really a matter of extending the timeline for implementation of that rule, taking a deep breath, trying to figure out how to fix it. i hope it will be addressed. i think it is high on everybody's list. >> in the areas that the sec oversees what do you see as the log jams? what are shortcomings of current policy that is holding back the

financial sector, investors, business in general? >> people forget the sec has a mission to facilitate capital formation, active or facilitate. now it is time to get back to the drawing board and say how do we use existing tools at the commission? statutory tools and facilitate capital information. how do we increase the number of ipos and get small and emerging companies so every american can take part. >> the cost of that is often cited as a reason there aren't more public companies. >> it's with stood the test of time and very bipartisan. why all the guns are trained on dodd-frank. would you do something in a nonbipartisan way is subject to the sort of activity. >> analysts just told us he is looking to go away for some thresholds for systemic

regulation to be gone away. and still thinks the banks will end up needing to have high capital, high liquidity. who is this really going to benefit in. >> it benefits the overall economy. the rule is silly. i said it as one of the two people that voted against it in washington to think that you don't have to revisit it. i don't know if you saw the study that said other rules have impacted liquidity in the corporate bond market. something we have been talking about. >> your descent might be a road map for regulators, deregulators. just wanted to ask about carl icahn. he has taken on a role seems to have a lot of influence in picking people and shaping and driving policy. the way he comes down on wall street is different from somebody who might be coming from the financial industry. he is much more concerned with making sure that corporate executives aren't asleep on the job, that there is a role to

protect shareholders from boards that are asleep at the switch. so that is a different kind of set of objectives than what we have been talking about when it comes to sort of deregulating the financial sector. do you think they are at logger heads? >> he has his own views. to think he is limited to discrete issues he has a much broader world view he comes from the real world which is great. the president-elect is listening to folks that do this stuff for a living instead of academics and others that have been prevailing in washington. i think he will bring free market perspective. he will have his own take on some of those issues many of which are very hard to argue with that there should be responsibility for the shareholders and that management should be performing. >> i don't know what that means to conflict minerals. >> adios. >> thank you for joining us. dan gallagher of the s.e.c. looks like the flood gates

are open after years of ban on mixed martial arts allowing ultimate fighting championships into madison square garden this weekend. we will talk about what is ahead for his organization after this.

welcome back. after nearly a 20-year ban, mixed martial arts is back in new york city, holding an event add madison square garden this new year's eve. joining us with more is world series of fighting ceo carl silva. this is a big venture. how big is the business now? >> it's big, the only growing sport worldwide. and, you know, mma has become the fifth major. we're really excited to be at madison square garden with our biggest event ever. >> describe a little bit about the business model. is this ticket revenue? how does it work for your major athletes? >> it's all of that. it's our sponsors. it's working with madison square garden. it's putting fans in the seats. it's working with distribution partners with nbc who will be broadcasting the fight on saturday. it's how you mix all those

together to create a valuable business model. >> how shall we think about your organization against ufc? is it kind of the sanctioning bodies in boxing, those kind of overlap but also distinct? >> i think the way to think about it is ufc is the oldest and the biggest. they just had a big event on november 12th here. they were the first to come back to new york city and madison square garden and we're the second. it's pretty exciting for us. >> your athletes are exclusive to one or the other? >> they are. all of our athletes and fighters fight for world series of fighting. they're with us. we take care of them. they're under contract with us. we grow them from early days through pro and big careers in fighting. >> you have big names, ronda rousey. is that your idea, to create a generation of talent who can pull them in through

pay-per-view? >> absolutely. justin gates is undefeated, he's been with us since he was young in his career and now he'll be defending his belt against luis fermino. >> ufc just sold itself for a lot of dough to wme. >> they did. >> do you look at that and think that's the end game or are you looking to go in kind of a different direction? >> if you look at live in general, live sports, it's really the only thing left valuable in television. we're partners with nbc and nbc sports. i think you generate value in your sports property by being live and generating stars and creating stars like justin. >> we've seen the wwe do this kind of over the top model. it's had its highs and lows. certainly when you're trying to reach a fan group who may be disparate all over the world, and frankly some of them may not subscribe to cable and want to

reach your content on demand, do you have a saturday for that? >> on saturday our undercard will be streamed worldwide. we'll be on nbcsn from 2:00 to 4:00, and then on nbc. we have to mix it all together, especially in the next five years. >> it's hard for me to watch football anymore, let alone these guys bashing each other's heads in. are you worried about the long term litigation risk, the health? >> the commission is protecting the fighters, we're protecting the fighters. it exists in every sport. sports is tough sometime, broken noses happen in every start. if you watch on saturday, you'll see the referees jump in and stop it when it should be st stopped, that's an important part of the sport. >> thank you, you can check it

out on 2:30 p.m. as he mentioned. shares of twitter falling this year and jeff dorsey has turned to the masses for help, asking users what they want from the social media service. their answers, next. you got it whato yothk? ye going to wish, wish b at the lexudecember to remember sales event get up t$2500 customer cash on select 2016 and 20 models for these tms. see your lexus dealer.

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welcome back. twitter ceo jack dorsey taking to his own product in hopes of getting users to tell him what he needs to do to improve on the product in 2017. he says, what's the most important thing you want to see twitter improve in 2017? he got a bunch of responses. here are a few that he interacted with. i love these names. "i would like a reporting option called this is defamation that goes to an actual lawyer and gets shut down." "i see liking as a public endorsement. sometimes i do it as a mental note or reminder." >> these are all longstanding issues, criticisms, elements of the wish list for a lot of users, it seems like. he did interact freely with these, saying we're working on stuff, especially the defamation

stuff. these are things that there should have been efforts under way, why have you guys not figured this out? >> it's been over nine years. >> it's interesting, dorsey has had a specific and high minded view of twitter's destiny. it's supposed to be this kind of raw, realtime, unfiltered, kind of chaotic user experience. maybe that's not what most people want. >> twitter's stock has suffered quite a bit this year, tons of rumors and speculation about takeovers and the rest. jack dorsey responded to one of the users asking about editing tweets by saying, it's much easier to do it for typos, for example, than it is to kind of edit the content of the message. he also made the point that has come up before about, we are the public record, it's difficult -- we know what it's like, if you're going to public a correction on a published article, you have to say, this is what's corrected. >> that's what's different and from what moment in time.

there is an inherent tension there. a lot of people say, make it easier to sign up, make it clear what you have to do to participate. that's something that they've tried to do but it's half measures. >> the book marking thing is something i used to use back in the day. now it's the heart. "fast money" begins now. thanks for joining us. "fast money" starts right now. live from the nasdaq markets overlooking times square. tonight on "fast," one of the most well-known tech investors is switching teams, so to speak. dan miles reveals the sector he thinks will take off in 2017. plus the chart master breaks down what you need to know before the new year. before we get started, check it out, after ten years we decided it was time for an upgrade, here it is in all its glory. the new