bri? >> mine is i wonder if amazon is going to face the ire of the president at all. remember, we have a couple of million people working in retail. we can save a thousand jobs here or there. if those retail jobs go away? i don't know. we'll see if amazon goes in the cross hairs. >> brian, michelle, we'll see you tomorrow. thank you for watching "power lunch." >> "closing bell" starts now. hi, everybody. welcome to the "closing bell", i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. well, it's toyota's turn, i guess. the japanese automaker the target of president-elect trump's tweets. we'll have details on what this trend means for the entire automotive section here. >> retail wreckage. the holidays didn't turn out for so many apparel makers. we first brought you the news on macy's and kohl's.

we'll look at where consumers are spending their money. >> mean whim, t-mobile just out with preliminary fourth quarter numbers. ceo john legere will be joining us live from the consumer electronics show talking about that and many other developments in that industry coming up. trump has said repealing obamacare and tax reform is next. the man working on the new dodd-frank representative jeb henserling will join us. >> courtney reagan is live outside a macy's store in elmhurst, new york, with the latest. is this one remaining open or closing, courtney? >> reporter: no, no, bill, this store is not on the ones that will close. this one will remain open. we are in elmhurst, queens. department store sales are getting wrecked after we heard

from macy's and kohl's. their com sales were down 2%. macy's said 68 of the previously planned 100 store closures will, in fact, happen in this year. it's also cutting more than 10,000 jobs. sears today said its holiday sales are down between 12 and 13% and it is closing 150 additional stores. american eagle comps are flat quarter to date which is not so bad as far as what we've heard from others. victoria's secret comps for just december are down 4%. bath and body works comps are down 3%. costco comps are up 3%. quite a mixed picture. don't get too worried about the consumer yet. we have a lot of economic data points that shows that the consumer is relatively, if not very strong and has money to spend. unemployment is low. gas prices are low. consumer confidence is sitting at a 15 year high. stocks are up, which means 401ks

should be mostly up across the board. master card said retail sales for november through christmas eve were up 4%. so consumers are spending, they're being picky and choosey. things like consumer spending. adobe is strong. >> courtney, this business is so volatile. there's one year we're talking about how kohl's is doing so well and we run into something like this. >> yes. >> mike said a lot of the stock prices have done a round trip since trump's election. is it different this time? is this really part of perhaps a decline that there's no stemming at this point or is it just another weak period for the retailers? >> reporter: so that's a really, really good question, and i

think we would all be very rich if we knew the exact answer to that and when tipping points will happen. what we do know for sure is retail is changing, it has been changing and it's going to continue to change. macy's did say that online sales were up double digits. it's not that consumers aren't buying apparel but maybe they're buying it more online. amazon is taking a hit so they're being choosey. going forward we have to rationalize what is most appropriate for the amount of stores that a retailer has and what it can offer online. what's interesting that we also know, kelly, is that when a retailer closes a store, there is a negative impact to ecommerce because there is a certain percentage of consumers that buy online but like to return to the store or make an exchange in the store. so if they lose their local store, they do actually see a hit from ecommerce as well. so there's going to be some balance of stores and ecommerce that is going to be right. we don't know what it is yet. >> that reminds me, happy

national returns day. this is the day that ups has designated when most people start to return those products that they either didn't want or the wrong size or whatever from the holidays. so happy national returns day, courtney. >> reporter: you too, bill. >> thanks. and i'm one of those who returns into the stores. one way they can get a little boost of foot traffic. now to toyota in the cross hairs of the latest tweet by president-elect. phil lebeau has the latest. >> this started about an hour ago when donald trump september out another tweet regarding mexican auto production. this time the target was toyota. toyota motors said will build a new plant in baja, mexico, to build corolla cars for u.s. no way. build plant in the u.s. or pay big border tax. there is a plant planned for mexico that toyota is building. not scheduled to open until 2019. how many does the automaker import from mexico right now? about 47,000 vehicles were

imported from toyota's one plant in mexico last year. the corolla, the third most popular vehicle in the united states, is currently built in mississippi. they build a lot of them down there. toyota's mexico plant is scheduled to open in 2019. we did get a response in the last half hour saying production volume and employment in the united states will not decrease as a result of our new plant in guanajuato, mexico, announced in april of 2015. here are some numbers to keep in mind when you look at the possibility of a border tax when it looks at final vehicles or vehicles at final assembly plants. gm is number one importing 438,000. close behind them fiat chrysler, re nault, ford, volkswagen. you don't see toyota because we don't have time to list all the automakers that produce down there. toyota is at the bottom importing 47,000 vehicles. take a look at shares of toyota. the impact following the tweet, you see it right there on the

chart. guys, we're noticing this impact. there's always the initial selloff and then it kind of comes back a little bit. it's not as dramatic as we've seen these tweets over the last couple of weeks. one last staff for you guys. we just ransom numbers. 1.98 million vehicles imported from mexican auto plants last year. vehicles sold in the united states. guess how many were imported from auto plants in canada sold in the united states? 1.96 million. not quite as many as mexico, but real close. >> yeah. i can already hear though the trump camp's response to the toyota response. toyota said the production of that new plant doesn't mean a reduction in employment in the united states but mr. trump's camp is going to say, we don't care about that. we want to see an increase in production and employment here in the united states, right? >> reporter: correct. correct. there's the pull on this whole thing. the automakers when they announced these plans, toyota announced this a long time ago before donald trump even announced his presidency or campaign for presidency, but the

automakers say, look, we are building for a global world where we need the lowest costs because we're not just exporting to the united states but around the world including latin america and europe as well. having said that, you make a great point, bill. why not add capacity in the united states if you're going to add capacity? the rub in the eyes of the automakers is it's higher costs in the u.s. great if you're building suvs, not great if you're building cars and that's what they're planning to build down there, the corolla. >> it either means lower profits or higher prices. >> right. >> i'm surprised at the canada figure, phil. >> thank you. we have a slight pull back as we turn to markets. just yesterday we were talking about the dow getting close to 20,000. 19880. it was okay you didn't have your hat after all. >> we're going to keep talking about it though. >> some traders are saying concerns over how long trump's programs will take to be implemented could be weighing on investors.

here's what house speaker paul ryan had to say about the time line for repealing obamacare. >> we're repealing, replacing, transitioning. the legislation will occur this year. what date all of this gets phased in on is something we do not now know because we're waiting for the trump administration to be stood up, we're waiting for tom price to be confirmed and become the secretary of health and human services. the question there is how long will it take for markets to be put in place, for markets to adjust. that question we don't know the answer to. the legislating on obamacare will happen this year. >> let's talk about some of this in our closing bell exchange today, quincy crosby from prudential financial is sitting next to us here at post nine. next is steve grasso from stewart frankel. and rick santelli checks in from chicago. steve, art cashman is of the opinion that we saw a decline down 100 plus points after those comments from speaker ryan, that

maybe the ambitious talk out of washington may take longer than the market was hoping for? >> sure. art also mentioned that the numbers were out for crude and inventories were out. i think that is where we're taking our lead from because you see the correlation between the s&p and where oil goes. and oil is that symbol of growth. if you see oil rally, it looks as if the global growth is inta intact. just think about what the portfolio managers have to model in for the first time in years. gdp between 4 and 6%. would you ever -- if i asked you when the last time -- >> what do you mean they're modeling that? >> as a possibility. even if it's transitory. when was the last time we saw that type of gdp? if i get you off guard, you're going to say ten years ago. >> after the recession. >> no, 2014. it was a transitory issue. coming off of bad weather and cycling up and a pent-up demand

so even if we have a transitory spike in gdp, stocks will react positively to that. >> there's a lot already priced in, quincy. that's the idea. you look at the data, adp wasn't great. services were okay. it has to keep getting better. >> it has to keep getting better. you also have to have corporate guidance, much stronger, we're going to get that that for the fourth quarter. the fact of the matter is you want to see the tax cuts rolled out very quickly. you want to hair him announce it. wait a minute, the market is priced for perfection. the fact of the matter is he will come out pretty quickly with the tax cuts and tax proposals. that should help the market. by the same token, if you expect to see growth picking up you need to see the 10-year yield picking up. that bodes very well.

there's always something in the market back and forth. for the growth, for the animal spirits that's become so popular in the headlines, you need to see it rolled out and you need to see it rolled out quickly. >> rick, the dollar has pulled back somewhat appreciably. yields are down. the ten year now to 237 back to early december levels. is that regressing to a mean? is the market just cooling its jets waiting for, you know, in response to what paul ryan said today? >> well, let's take that in order. 2s look like they're going to have the lowest close since about the 13th of december, 10s about the 17th. dollar index is siding with the 2s, about the 13. but to me the one missing piece of this puzzle which might be a big piece that nobody has mentioned that's a big topic on this floor for a while is the dollar/yuan. that is closing at the strongest level against the dollar since mid november.

a much further back comp. the dollar was under pressure early. now whether this is indirect addressing of donald trump and the currency manipulation status that he's brought up on numerous occasions or not. inner bank offered. it's been jumping in three month, one month. now like a tube of toothpaste we're seeing the overnight do the same thing. it's pretty clear that the chinese are trying to weaken the dollar and push the yuan higher. there's a lot of issues with capital flows and political issues. i do think the dollar in many ways led up and may be leading on the way down. i think that piece of the puzzle needs to be brought up. in my opinion i would be shocked if at some point the ten year doesn't test the 227 area. why is that so important?

consider this, that was a high closing year for all of '16 until you got to mid november. >> quincy, what about the dollar? some are now saying maybe its move has peaked here. it's down more than a dollar. >> it absolutely has. when we take a look at the chinese issue, they have to keep money in china. we know they've been selling treasuries to intervene in the currency market. we've seen their holdings come down but the dollar, when i look at the tape today, some of the multi-nationals love the weaker dollar. the fact of the matter is that the commodities love the weaker dollar. we're seeing that underpin some of those commodities. but the fact is if economic growth picks up and you get a tweet from president-elect trump overnight that this is the date i'm going in for 15% on corporate taxes, watch that dollar rise, watch the ten-year yield rise and watch the financials spike. >> before we go, we can't ignore that tomorrow's jobs friday. it's been a busy week. what's the market looking for?

>> the market is looking for inauguration. it didn't care about yellen. >> they don't care about the fed, we don't care about jobs. >> doesn't care about anything. stop watching the tweets. there's no difference to how president obama came out against the financials, against health care and what president-elect trump is doing. right now, think about it. he's trying to keep jobs here. what was the public outcry with inversions? where was the public outcry when we killed off the financial sector? there is eight years that need to be undone. we're still in the early innings of this rotation. watch for higher markets. >> very good. thank you, everybody. good to see everybody here. >> thanks, guys. we have a news alert now on the trump transition. eamon jabbers stepping in. >> hi, bill. various wire services saying dan coats will be donald trump's pick for director of national intelligence in the incoming administration. dan coats would be succeeding

dni james clapper up on capitol hill today testifying about this russian hacking issue. coats is a u.s. army veteran. he was a former u.s. ambassador to germany. he's also served two separate stints as a senator from indiana. the challenge will be handling the entire u.s. intelligence apparatus at a time when that apparatus or much of it feels under assault from donald trump who has been tweeting sarcastically about the u.s. intelligence communities this week. very skeptical about russian hacking into the election. he'll have to mollify those folks who feel they're not being taken seriously. he'll have to also oversee u.s. efforts in terms of all of the spy agencies we have around the world who are handling the hacking issue going forward. a big, big challenge for the former indiana senator, dan coats. he'll be the pick for dni under donald trump. >> i wonder how big of an

overhaul it will be. something else to watch. interesting. >> i was going to say, kelly, fascinating dynamic here. yesterday, last night and this morning we had a report from the wall street journal suggesting that the donald trump team is planning an overhaul of the u.s. intelligence community, revamping the dni office and pushing cia officers out of the headquarters at langley and restructuring. the trump team denied that report. they said it's simply false. >> right. >> we'll have to see where that goes in coming days. >> another personnel pick here. eamon, thank you so much. >> you bet. what's this, 40 -- 50 -- 43 minutes to go. >> yes, it is. >> one of those days into the close. dow was down 54. off the session lows. the nasdaq is actually higher by 9 and the small cap russells giving up much of yesterday's gains. when we come back congressman jeb hensarling. he'll talk about his plans to

scale back dodd-frank and replace them with what he calls the financial choice act. >> john legere live from the consumer electronics show. you're watching cnbc, first in business worldwide. ouor mes asart y cialisu nasont gren ya ddree ossi, asart y cialisu nasont leioaly. urt y ynessyenen os caou t n

d ke oat com n utowesrdrv hepareour

utowesrdrv we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine.

visit an xfinity store today and see for yourself. xfinity, the future of awesome. congressman jeb hensarling has a proposal on capitol hill to replace dodd-frank legislation that was passed back in 2010 in response to the financial crisis. >> his bill is called the financial choice act. it promotes faster economic growth. joining us is texas republican congressman jeb hensarling. well come. >> thanks for having me. >> what's this going to mean for americans? how much will this change the financial industry? >> what it will do, it will be a shot in the arm for economic growth. what we have now is the arteries of capital are clogged. we have small business lending

which is at a 25 year low. entrepreneurship is at a generational low. too many people are stuck in poverty and food stamps. a lot of middle income people have seen their paychecks stagnate, their savings have actually been decimated. so, number one, we're going to get lending going again in america. we're going to get out of the bailout business. under dodd-frank the big banks have gotten bigger. the small banks are getting fewer. we're losing community financial institution a day and that's unacceptable. we also need a more stable system. the financial choice act is really a dodd-frank offering, and that is put loss absorbing private capital, prudent levels of capital and we will allow you to go out and bank the american economy. but it's a choice that bankers can make. in addition, we're going to help consumers. if they want to keep their credit card, they can. right now we have bureaucrats

choosing our credit cards, bank loans, mortgages. that's not right. that's not how it ought to happen in a free society with free people. >> mr. chairman, before we talk about some of the particulars in your bill, maybe we should talk logistics and the time line of when this might be able to be passed. speaker ryan, as you well know today, laid out a list of priorities. at the top was obamacare and some other things. the reformation of dodd-frank is not that high on the list. also, there's a question of how much an appetite there is for this kind of bill right now. there's one prominent wall street analyst who says maybe the reform of dodd-frank belongs with the federal reserve and not with congress. realistically, how much of an appetite is there to reform dodd-frank. >> i know the president-elect has said he plans to dismantle dodd-frank and i plan to help him do that. there's a lot of dodd-frank that can be dismantled by the

incoming administration. there's a fwar amount of dodd-frank which can be dismantled from the reconciliation process. that's inside baseball that can happen with 51 votes in the senate. >> are we talking about the first 100 days, talking months? years? >> not the first 100 days. the president-elect has already outlined the top three priorities having to do with rebuild and replace of obamacare, fundamental tax reform, strengthening and controlling our borders, but shortly thereafter comes relieving the american people of the sheer weight, volume, complexity and cost of burdensome regulation. that's where clearing out dodd-frank and coming up with legislation like the financial choice act comes in. listen, i've had conversations with the president-elect, vice president-lek president-elect.

it will happen in the first year. now whether that happens in early summer, late summer, early fall, again, the man hasn't even put his hand on the bible much less taken the oath of office. >> right. >> let's give him a little time. so, yeah, it's not in the top three, but i assure you it's in the top ten priorities of this administration to get done this year. we have to. you can't have capitalism without capital and dodd-frank has crushed capital moving in our society. >> i was going to say, you mentioned mortgage costs as well as an aspect of all of this. it's one area where there's been a lot of pressure. would your bill come before reform of fannie and freddie? how much do they have to do with one another? there's maybe one viable plan put together to satisfy both parties. it seems like in the meantime, you know, otherwise the status quo remains. >> well, i've been encouraged by the discussions i've had with the incoming administration. i think housing finance reform

is clearly a priority of theirs. it was -- there were many sins of comission of dodd-frank but the great sin of omission was not dealing with fannie and freddie. it was bad federal policy putting people into homes they couldn't keep. part and parcel of reforming our capital markets has got to ensure that we have a sustainable housing finance system, sustainable for homeowners, again, helping them have the opportunity to get in homes, but only homes they can afford to keep. something sustainable for taxpayers, something sustainable for the economy. i think there's the appetite for it. i think the incoming administration wants to get it done. i plan to be a good partner. as chairman of the financial hauser advises to assure we do that. the answer as usual will be a lot of private capital and the innovation of free and competitive markets. >> mr. chairman, let me turn your attention before we let you go to something we're focusing on today and this week with the president-elect's tweets to the

auto motive industry against general motors, against others and today against toyota threatening a border tax if they don't move production back to the united states in a more meaningful way. do you support a border tax of some kind, a tariff or whatever? would there be legislation that would make this happen? how would that -- how would that work, do you think? >> well, i prefer carrots over sticks and i prefer tax reform over taxes. the major reason that we have jobs leaving america is because we have an uncompetitive tax code. number one, i appreciate a president who's passionate about keeping jobs in america. i appreciate a president who actually wants to reform the tax code, hopefully pull it out by its roots, throw it in the nearest trash can and get a competitive, simple tax code. that would be my preference. that's how i want to work with the trump administration, but it's not just the tax code.

it's the regulatory burden. it's back to dodd-frank. we have 1 1/2 as much litigation cost as our competitors. we have something almost twice the environmental remediation costs. so what we need to do is make america the most attractive place to site a business, to grow a business, to create a business. >> right. >> so, again, i prefer carrots over sticks. that's going to be my approach. >> let's just be clear. forgive me. so you would not be in favor per se of a border tax? >> i do not favor a border tax, let me be clear. >> i do not wish to equivocate. >> thank you for joining us. >> thank you. >> about 30 minutes to go into the closing bell. dow's down 51 points. s&p down just a couple. the russell small caps are taking it on the chin. the nasdaq has a gain of 11.5 today. >> not going to happen today.

constellation brands under pressure despite beating earnings efforts. it has to do with president-elect trump and we'll have details on the story when we come back after this. ext gf

h

welcome back. take a look at constellation brands. the quarterly earnings beat. analysts attributing to the

stocks worry about potential impact. they support the tax. >> constellation owns u.s. distribution rights for corona and mexican beers. they've risen 10 cents since the election. >> rob sands will be on "mad money" at 6:00 eastern time. time for cnbc update. >> hi, bill. here's what's happening at this hour. prosecutors have filed hate crime and aggravated battery charges against four black suspects accused of beating and taunting a mentally disabled white man during an attack. the incident went on for 48 hours. sears is selling its craftsman tool brand to stanley black and decker for $900 million. sears bought the trademark in 1927 for 500 bucks.

sears also announcing plans to close 150 stores. that's about 10% of its locations. amazon plans to open its first new york city bookstore in the spring. it will be in the time warner center near central park in mid town, manhattan. amazon currently has three physical book stores in seattle, san diego, and portland, oregon. and six handwritten letters from princess diana have sold for more than $18,000 at auction. one letter was to the steward of buckingham palace revealing that prince harry was constantly in trouble and prince william swamped his baby brother with hugs and kisses. they're still very close today. isn't that sweet? >> indeed. if i'm prince harry, i would buy those letters. >> i wondered about that. the letters were given to someone who worked at buckingham palace and the family is selling them. >> i see. >> i'm surprised that the brothers didn't buy them. >> yeah, indeed.

thank you, sue. >> sure. >> see you later. inside that last half hour of trading right now. the dow down 43 points. we have a leading trader who will tell us what he's watching into the close coming up. t-mobile ceo john legere joining us from las vegas to discuss his plans to take the company to new heights. stay with us. ho

welcome back. the nasdaq is hanging on to a gain of a quarter percent. you can see roughly split on the dow between advancers and decliners. visa and exxon and travelers an american express are lagging. morgan stanley downgrading travelers to underweight to equal weight. lower reserve releases, auto margin pressures and the stock's valuation. price target remains 110 a share. it's trading at 118. let's get to the consumer electronics show in las vegas where john ford is standing by with t-mobile ceo john legere. >> i'm here with t-mobile ceo john legere. we are tipping a conversation about not just t-mobile's results, which you gave us a preview of here, but also some

of your latest moves uncarrier, as you call it. changing the rules, first of all, how are these moves which are basically rounding off the taxes and fees that people are so familiar with on their bills, no longer doing that, how is that going to affect the growth that you're touting with these financial results? >> we announced new rules for the mobile internet, and the trend that was most important is over the past four years mobile has become the way that people consume all content. and it's crazy that plans were created by utilities for the times when you purchased text messages or calls. so we set some new rules. one of the rules was what you see should be what you pay. and so we announced all taxes and fees included, and it's a big deal, john. for example, on a verizon xxl plan, the $110 plan, it costs 227.70. the industry has $17.2 billion

in fees. we think it's going to be very well received. we also announced kickback which is an additional line on t-mobile one is $20. if you use 2 gigs or less, a lot of children's plans, et cetera, we give you $10 back. so this is $40 all in and a commitment that we will never raise your price on the unlimited. >> analyst rich greenfield predicted that comcast is going to try to acquire t-mobile. i was going to ask you about that, and you set me up in your presentation just now. i saw you were talking about verizon and comcast are going to get together as one of your predictions, two of the most hated companies in america, you said, becoming -- >> comerzon. >> comcast is the parent company of this network, disclaimer. >> yes. >> it sounds like you're not looking at comcast acquiring t-mobile? >> no. a lot of what i talked about, it's going to be the wild west in wireless in 2017. you know that the cable place --

by the way, isn't it hilarious that we call an industry by the definition of the infrastructure that they bought, cable company. come on. they need a wireless play. they're doing an mv and o which is a total joke because verizon won't give them the economics, won't be able to do unlimited. i announced that i believe they will fail miserably, and then they'll retreat. >> i believe he said, we'll clean your clock. >> mow nop poe lists don't know how to compete. >> those bastards, excuse me, children, have no idea what competition is. >> of course not, they're worse than at&t and verizon. >> mobile will be one way people consume video in '17. >> right. >> you also said it's hard not to be excited about a less restricted environment with the trump administration. >> right. >> how far does that optimism extend for what you expect this administration to do? >> well, listen, as you can see, there's a lot of euphoria around

a business environment with less regulation. this will impact industry structure. it will impact some of the moves that we've been aggressive in trying to change that we've been in kind of a restricted regulatory environment. i will tell you that we have a positive outlook on the economy and what's happening with the administration such that our 2017 plan is for a tremendous amount of growth. so, yeah, i think it's going to have a pro found impact. >> what is the number one trend at ces this year do you think? i know you use the technology as well as just sell the network that a lot of it runs from. >> for me, i'm most interested in the artificial intelligence, in vr. they haven't reached the tipping point yet. i do think that what we've been talking about here is as i always said before, john, all content is going to the internet. all internet will be consumed mobile. i've shortened that now to all content will go to the mobile internet. that has profound impacts to all

of the adjacent industries and how we do what's most important. customers do not care if you're a wireless company, a cable company, a content company. they want to pull out their device and consume everything they want and they want to do it on the go. that's a big impact. >> john legere, ceo of t-mobile. never one to mince words. >> we will unpack it from now on. thank you john and john. good to see you. let's head to the close. 18 minutes left in the trading session with the dow down 51 points. now that alexa has started the takeover of american homes, amazon's artificial intelligence system is turning its attention to the highways. that story is coming up. the nfl playoffs kick off this weekend. tom brady and his new england patriots have a bye but the superstar qb may be watching the games at home in his new high tech pajamas. there's a look. you can wear them, too, and we'll have the details straight ahead.

"closing bell" access is brought to you by belfor. restoring more than property. ♪ a

f he tthesgh ♪ a y st. rtiradvesse un50 dign,t

rgnl. ga, ate in hn,n, ur can sharour g adthat aata, actokowiyoraids,acrara ms th 15 minutes to go focusing on the dow. no 20,000 there. look at the nasdaq, that's right about all-time high territory.

we're flirting with it. with that gain of 10 points at 5487. facebook, apple and amazon helping to push it higher today. >> and amazon's digital assistant alexa already making big waves at the consumer electronics show out in las vegas. here's one massive echo at a media event. >> wow, look at the size of that. >> that's the echo next to the guy. >> there are dozens of gadgets. now alexa will be hitting the road, too. >> alexa. >> so much for the satellite. >> phil lebeau has the details. phil? >> kelly, this is an agreement between amazon and ford that was announced out at the consumer electronics show. you will have the alexa assistant, whatever term you want to use there. that software is going to be available through ford so that if you are a ford owner, you can now use alexa while you're driving the vehicle. in other words, you can say

alexa play you-2. also offers connectivity to your home, whether it's opening the garage door, perhaps turning on some lights, the security system. you know, as you mentioned, the music collections. all of the things you can do with alexa you can do while you're driving a ford. this is not the first time that we've seen an automaker announce one of these connectivity deals. you have ford and amazon, daimler is working with google and the google home which is similar to the alexa system and you have gm and ibm watson. so as you take a look at ford, what i find most interesting, guys, is that you have all of this connectivity continuing to come into the vehicle. what is the number one complaint that car owners have every year when it comes to reliability of their cars? the technology is not working, at least it's not working the way people expect it to when they buy that vehicle. they still have to jump over that hurdle, all automakers do so that it's smooth and it works as you expect it to.

>> we were supposed to be talking about apple in this role, phil. suddenly amazon has jumped in and been able to leap frog, i should say, over a lot of other people who want to own that digital space in your car. >> well, you have apple car play which is a huge system and it is in a lot of vehicles. there are a lot of automakers who have apple car play as part of the digital assistant within the vehicle. now you're starting to slice up how that digital landscape works within the vehicle. apple is not completely out of the race here, you just have amazon with the echo and alexa system forming a partnership with ford. let's see if they do it with other automakers. we know that apple car play is with a number of different automakers. >> phil, thank you. >> you bet. >> alexa, talk of ces. >> yes. yes. >> 12 minutes to go into the close. as bill mentioned, amazon helping the nasdaq here possibly close in record territory, but that's not the case for the other averages. the dow is down 45.

>> art cashin signaled no buyers up or down. they've all paired off. we'll see what happens here. the march to 20,000 has stalled and according to one trader, equity valuations could be to blame. we'll talk about it when we come back.

about 8 1/2 minutes left in the trading session with the dow down 44 points. we've got joining us on the floor of the new york stock exchange michael block from rhino trading and joe zef zoc from tocqueville as set management. joe, clearly the rally has stalled or do you think valuations are getting out of hand here, right? >> i think there's good reason to be optimistic if donald trump is going to change the tax plan and encourage businesses to repatriate money. some of those stocks are well advanced into the rally. they might stall once earnings start to be reported. >> that's starting to happen in the next week or so. you also think that's what we're setting ourselves up for here, michael? >> yeah, expectations are pretty high. heading into earnings, with ces going on, big health care conference, big retail conference. a lot of pre-announcements. we saw kohl's and macy's coming

out. holiday sales weren't so great. is that company specific or more consumer. consumer credit is getting stretched, appetite is getting stretched. maybe we're about to see disappointment in some of the sectors and stocks. >> you say look overseas? >> yes. we have a strong international product at tocqueville and global valuations are lower than those of u.s. markets. we have the best economy in the world. we have the best political system, best growth product. i can go on and on with pro american speak. >> where are you looking? >> developed markets. emerging markets is a development. they can sell into those emerging market economies, but we'd like to have the balance sheets and the regulatory environment that favors the investor. >> what about china? there's been more news about the currency and concerns about what's happening in the economy. it's nothing like last year, at least as of right now. is there a reason to be concerned?

>> here's what i'm concerned about. my issue here is not if china has a bad day in the stock market it will carry over here. that's not the issue. the issue is you have the authorities there and there's talk about them manipulating the currency, perhaps they're doing it already. perhaps they're talking about t letting loose rumors. you've seen the yuan making massive moves, 20 big handles. 698 to 678. that's a big move. when you have volatile moves, they're not coincidences. they cluster together. it's not like there's normal distribution. everything averages out. that's weird. it doesn't happen once, it happens around the world. everyone was positive the dollar would go back up. what does that mean for positions, companies, the yen? the yen has coming off. they thought it was going to go weaker and help japanese exporters. these things worry me. chinese gets volatility elsewhere. that's my concern. >> we have to go at this point, guys. thank you very much. i've been waiting to say

this all day, mr. block and mr. zok talking stock. >> yes, we are. >> i was thinking more block, zok and barrel. >> that's not bad. >> that's much more sophisticated than what i came up with. >> always a thrill. >> we will take a quick break here. we'll come back with the closing countdown. >> then after the bell we'll talk about more cord cutting on tap. john martin the ceo of time warner. he'll sell streaming for tnt, cnn and the cartoon network. what it means to the company, the consumer and cable. you're watching cnbc, first in business worldwide. edldi ahi wi

*d whwh *d maedrara l .. whwh geoff er bitys ve rtton' *adle 'on ale itpsy he on

two minutes left in the trading session with the dow down 40 points. no dow 20,000 today. maybe tomorrow. who notion. the jobs number appears and so we show you the dow right now. but the one to watch is the nasdaq. very quietly it has now moved into record territory. remember the technology stocks suffered mightily during the trump rally. that's not happening right now. so maybe some rotation going on. i financials have been lagging. goldman sacks is down. the technology stocks going higher. nasdaq, 5487.44 and we're up two points above that right now. so it looks like a record high for the nasdaq on the close today.

we're either regressing to the mean or responding to economic data or the lack of a time line for the trump agenda, but the ten year is down. we hit 237 today, 236. we're going back to levels we haven't seen since early december. same thing for the dollar index, which is down to 101.48. that's a level we haven't seen in a while since early to mid december, but oil did continue to move higher with the drawdown in some of the oil stocks that were up to 53.71. tomorrow our first jobs day of the year and nobody cares right now, it seems, bob pa san sani. >> sounds so intelligent. what's really hot, the reflation. gold stocks. big gold stocks. amana, aui, all up big. 4, 5, 6, 7%. you're right about the yield. the yield curve. you're right about what's going on there.

we've seen yields coming -- slowly moving down now for several weeks and that's a major issue. that's one of the reasons the banks won a lot of pressure. >> bob, thanks very much. realistically we do care about the jobs numbers. you'll have that tomorrow morning on "squawk box" at 8:30 a.m. eastern. stay tuned now for the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kel. thank you, bill. welcome to the closing belle, everybody. nasdaq is closing at a record high here on wall street. in fact, it's the only average that even closed positive but a gain of about .2 at 5487 puts it pretty much at a new record close, 5487. it literally beat that by a half a point. we'll continue to see how things settle out here. again, that was bolstered by amazon, apple, some of the

bigger cap names along with a few others. we'll come back to that. the other averages, can't say the same. the dow dropping a quarter percent to 19,899. the russell fell to give back some of the big games. 1371 is the top. shares dropping of toyota. the president-elect promised a big border tax if the automaker went through to build new plants. this just a day after ford scrapped its plans for a mexican plant. the toyota shares responding to the negative side. down 2/3 of a percent. we'll have the impact of trump on more corporate leaders coming up. joining me on the panel, cnbc senior market's commentator michael santoli and bob doll and rob tox. great to have everybody on board here. we didn't close as weak as it could have been.

the nasdaq went totally the other way. >> yeah. >> kind of an odd day. >> we were down on the dow. it righted itself. the market has been trading in a narrow band. it's been four weeks that you've peaked in terms of the supposed trump dynamics in terms of the dollar soaring, yields going up. industrials and metals going higher. you've seen that unwind in slow motion. i think what you have right now is people figuring out as you have investors sentiment looking a little bit toppy, do we have to give back or can we adjust to the sideways market until earnings season comes or until we get a policy catalyst. >> we'll come back to this. let's get up to the nasdaq closing. bertha coombs is here. >> today powered by amazon. that's the big cap that was the biggest mover up 4% on the day. and amazon trouncing a lot of those brick and mortar retailers. you heard about the story with macy's, kohl's, having

disappointing sales as the online sales were better. the brick and mortar sales were down. amazon captured 38% of christmas shoppers. folks like me who are on prime and just automatically shopped there. they seem to get a lot of momentum, not only that, of course their echo now being integrated into ford. we won't talk about distracted driving with regards to that. apple today also positive all day helping to keep the nasdaq and the nasdaq 100 above water and outperform the rest of the market. you know, really been such a big small cap move here at the end of the year, but today was all about those big caps. take a look at some of the other big tech cap names that were strong today as well, including yahoo notwithstanding the fact that verizon officials say they're still not quite sure what is going on there in terms of that acquisition, although they're still committed to it for now. netflix today hitting a new high as well. biotech today also perci iperki.

health care has been such a lager. it's coming back rotating into the center. >> biotech has had a rip roaring start to the year. bertha, thank you. rob, what do you think? kind of stalled here trying for dow 20,000. we're seeing strength again. it almost feels a little bit like the 2015 thing kind of market here today. >> i think the market's kind of got it right. it got really excited about the trump rally. you know, lower corporate taxes, higher growth, all that kind of stuff. but you see stuff like this toyota, you wonder just at what -- maybe they need to discount some of this back because you don't know what the new world looks like. you have new constituency if you're the ceo of a company here or anywhere else. donald trump and not just others. you have to start factoring that in. that will take a bite out of profits. >> how do you sharpen your pencils and factor that in, bob?

>> you have to look at companies where donald trump doesn't know how to spell the company's name. companies are trying to hide, there's no question about t. he's going to pick and choose. he's going to use the bully pulpit as president to try to get people to put america first. he'll do whatever he can. so watch out. >> what's the impact going to be overalthough? because we've watched the markets every time one of these trades, especially when it's the border. it's responding negatively or is the market starting to stamp its feet and to borrow mike's phrase, we want this action now and we want it to be the kind of action we want and not necessarily the kind of stuff that might hurt -- >> you're probably right, kelly. since the election it's been donald trump, the growth president. i'm going to cut taxes, i'm going to roll back regulation. we have not heard about the protectionist donald trump and maybe the market's saying, that's still there. we've got to worry about it a little. i agree with mike's earlier comment. we're a little ahead of ourselves. having said that, the first two days were internals.

>> what was her name, varuca salt. >> the golden goose, right? the market is not sort of pencilling in a broad effort to restrict trade. what they are looking at is the retailers which for many reasons look like they're treacherous. one more reason is the potential border adjustment tax. you also have paul ryan saying we're not going to impose tariffs. nobody knows how to assimilate the trade piece. if anything, investors are saying we're happy if all he does is want to pick off these companies one by one and shame them somehow. >> as opposed to? >> as opposed to saying we're going to have a lot of low productivity. >> jeb hensarling said he was against some border tax. we should talk about what's happening with the u.s. dollar. i don't know how it's responding to all of these crosscurrents. it's gotten so strong. it moved back a little bit. moved down today. that should be some good news for the multi-nationals. >> it does seem so. it seemed like it was a crowded lot. people thought the dollar could

go nothing but up against the currencies. still going up against the mexican peso. that's the one where you haven't seen a switch back. to me, it's one of those trades that got a lot of momentum coming out of the election and there's been a rethinking process. >> like everything, it kind of got real strong and now there's a bit of -- a moment to pause and reflect. how about the price of bitcoin, by the way, plunging after it rallied nearly 60%. kayla taushi is here. what's been going on? >> if you looked at bitcoin you would have seen it was close to a record high level. then overnight it fell as much as 23%. it's cut those losses in half, but it happened in just a matter of hours and it was in response to a surprise surge in the chinese yuan after beijing clamped down on outflows and also reports of possible intervention in the currency market. bitcoin's become a convenient way for investors to move money quickly, anonymously and cheaply away from financial systems that

are under strict capital controls. for that reason bitcoin and the yuan have developed something of an inverse relationship. when it falls it decentralizes vehicles like bitcoin and when the yuan rises, it sharply corrects. past spikes occurred in the financial crises in greece and cypress when depositors feared that their money would vanish overnight, that it would be taken back by regulators or the government. bitcoin's current run began on the back of production being cut in the coins themselves and then on top of that you had the u.s. election. the peso has a record low. while today's losses, as i mentioned, have been cut in half, it is a good reminder when you look at this wild, almost hyperbolic run, what goes up comes down in a dramatic way. >> brian kelly said it was a

five standard deviation move. >> it was a huge surge and yet now, of course, kind 6 coming back. you know what i love, the bitcoin/gold comparison as well. i don't know if we have the chart. the prices of these two are about to inflect. at least before today's big declines. so i don't know if it's just people expressing -- there we go -- a little bit of a different appetite for how they have these safe haven -- >> safe haven depends where you are investing from. the view, bob, as you know well, the view of a safe haven asset is vastly different from the safe haven of someone in china, india, mexico. >> absolutely right. i think currencies can be the grand adjustment factor. we have a lot of volatilities because there are a lot of global uncertainties. politics, economics, interest rates, earnings. so currencies will be the grand adjustment in lots of trade. >> do bitcoin serve different functions? >> they're certainly related. kind of pointed out, they're different in the way they

operate but they're a subset of the bigger story with currencies. >> i joked yesterday on twitter that they were about the same price and that they're both these kind of abstract stateless assets, right? that people think that when things really go down and we can't hold dollars or anything else -- >> you're not finding bitcoin in your basement? no gold bullions set in your closet? >> it's useless or a pure abstraction. >> the other comparison is looking at mccau gambling stocks. it's a release valve for capital in china. you can find correlations forever. i'm going to look at that chart myself. >> it's really interesting. i think what it does tell you is, yes, bitcoin is an interesting new tool for moving capital in a way that you could move it before. it doesn't make it a currency. you don't want currency to have a chart that looks like that. >> makes the dollar look incredibly stable by comparison. real quickly turning back to the

markets overall. we have the jobs number coming out in the morning. where does that leave us, bob? >> i think it leaves us with an economy doing reasonably well. the rally that everybody calls the trump rally was partly that. as importantly is the economic news starting around october got a little bit better and i would suspect we would see more of that which would continue to provide some powerful risk actions. >> better and better data? >> at least as good as we've been. the next big move up has to be will the regulation being proposed provide more. >> jobs report or jam 20? >> if the jobs report is good tomorrow, then you know who's going to take credit for it, but i think we're all going to start looking at the labor force participation rate. that's the thing that trump folks said you need to look at. we're going to start to look at that. actually, it will be quite a refreshing way to look at the jobs numbers. >> the wage stuff, too. all right. kayla, thank you. >> thanks. >> rob and bob, thank you guys

as well. >> pleasure. toyota, the latest automaker under attack by president-elect trump. coming up, we'll see whether the latest tweet could prompt toyota to produce jobs here instead of mexico. retailers like macy's having a rough christ mags season and ma'am zorch going strong. cnbc, first in business worldwide. herae l fr

ki bkhureo's s ? s eemoney ca y r enme tgegatiit's me t.

ki bkhureo's s ? s eemoney ca y r did you know slow internet can actually hold your business back? say goodbye to slow downloads, slow backups, slow everything. comcast business offers blazing fast and reliable internet that's over 6 times faster than slow internet from the phone company. say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business.

welcome back. toyota stock moving lower today on a new tweet by prump president-elect trump. he said, no way, build plant in the u.s. or have a big border tax. toyota's shares were down less than 1%. bill george is joining us and a cnbc contributor. bill, welcome to you. toyota and many other executives are wondering how should they respond to tweets like this? >> well, that's for sure. i think from president-elect trump's standpoint he's having a very powerful impact by direct intervention, or you could call

it government by intimidation, and he got ford to make a move. they say that wasn't the reason, but i think you can argue that. and he's got general motors in his cross hairs. now he's going after the largest japanese producer in toyota that employs tens of thousands of people in the u.s. i don't know about the border tax. that could lead to trade wars, not just mexico. from trump's standpoint, he's winning, going after carrier, united technologies, boeing, going after everyone in site. i question whether this is a good way to govern the country. without sitting down and having a discussion. >> although he does seem to be quite well attuned to the electorate, right? the people it who wanted him to go to washington. >> oh, yes. >> he's continuing to do, demonstrating by tweet, i am doing this, i am taking these

mandates as he reads them quite seriously. so, you know, again, i think the question is if you're in the automaker's seat, what do you do? i mean, do you find a way to work with him on some kind of gesture that kind of placates the issue? do you really have to revamp all of your operations? how far do you go here? >> i agree. i think the automakers have to have a global manufacturing plan. they want to produce all over the world for europe be, for china, for mexico, for the rest of the world. they can't just pull everything back to the u.s. i agree with you that this is good politics, but it's not good policy. and i think the automakers would much prefer to work privately with trump and have a private sit-down discussion than this kind of public, you know, fist fight. that worries me, that we're going to continue -- he's going to continue doing it. he's not even president yet. when he becomes president, particularly with these foreign automobile companies, i don't think you can just do everything in public like this. >> bill, you know, the response

today from most of these companies has been to issue some kind of mild clarification or some statement that perhaps they'd like to work with the incoming administration, but you have to imagine down the road there might be a ceo that decides to say, no, this is absolutely wrong. you know, we have a global supply chain. this is the way we've organized our company and i wonder what happens then or what kind of company might be a candidate to do something like that. >> well, i think you're absolutely right. and someone's going to have to have the courage to stand up to it and say we have to have a global supply chain. by the way, the parts come from all over the world. we're just talking about assembly plants here. you can't make all the parts and assemble everything in the u.s. this america first policy. i don't know whether it's mary barra or toyota. someone has to do it. you can't keep changing your plans in response to the latest tweet from the president-elect. that's dangerous.

>> yeah. but if he's quite serious about this, we've talked to congressmen who don't sound like they're necessarily on board with the border tax, if you're a company you ultimately have to respect what he's trying to do, right? if this is more than just a bark. >> ultimately if you're an automobile maker you have to have good economics. you have to have the right costs in your cars. you can't sell cars all over the world in the highest cost location. i think you have to optimize that. the idea of small cars, toyotas, cruzes being produced in mexico and the big cars in michigan, ohio, the united states. this is not illogical on their part. it could become very uneconomic. they'll lose market share on a global basis. that one in the end will cost jobs and that's the serious part about it. >> exactly. the last thing he wants. bill, thanks for joining us. bill george.

>> thanks for having me on the show. breaking news on gap sales. now let's get to courtney reagan with those details. court? >> hi there, kelly. that's right. so gap, inc., reporting its total holiday sales, that means the month of november and december up 2%. so that's not so bad. and then if you look at just the month of december for gap, comps were up 4% for the entire retailer, up 12% at old navy just for december and up 1% at gap stores down though 7% at banana republic. some points of weakness. still altogether it was enough for the gap cfo to say they expect the full year earnings to come in modestly above the high end of their prior range of $1.92 so that actually looks pretty good and gap shares are higher by 12% after hours which, again, kelly, just goes to show you cannot paint retail with all one big broad brush stroke. >> man, it's just -- it's a

roller coaster ride, mike. >> i'm looking at the one year chart of the stock. you talk about gaps. there's gaps all over this chart because they've had multiple kind of switch backs on this. there's been a decent quarter or better than feared quarter. i will say this 10% move looks kind of dramatic. it gets you back to where the stock was december 13th. >> there's the full year chart. what an ugly looking chart that is. it shows you how whip sawed all these retailers were. >> there were shares of macy's, kohl's, l. brands and amazon. they lowered guidance and said in part because of increasing online competition. amazon bucking the trend with a nearly 3% gain. courtney, amazon may be taking new steps to go brick and mortar, is that right? >> reporter: that's right. the department stores may feel like they ended up with coal but that's not the case for amazon. slice intelligence scans e-mail receipts scanned more than 4 million of them.

they say amazon got 38% of all online sales this holiday season. as that online bohemoth grows, what hasn't forgotten its bookstore roots. amazon is confirming plans to open a bookstore at new york city's time warner center. in august amazon did mention it had plans to open book stores in new york, chicago, portland, and san diego in addition to the bookstore that's currently open in its hometown of seattle. they also used kiosks in places in malls to sell devices like kindles. there are also reports that amazon could be interested in buying beleaguered apparel maker american apparel as it goes through the bankruptcy proceedings. amazon is working at capturing more apparel sales. it launched its own private label brands last year. it's been growing in that space and analysts think it could overtake most of retail going into this year and the next year. american apparel is valued at

under $70 million. so it's a price that is very affordable to amazon, not to mention there's quite a political play there because true to its name, american apparel does manufacture its goods right here in the u.s.a., something that we know the incoming administration is a very big fan of. now if amazon wins this, if they are, indeed, in the process of bidding or if anyone else does, there's no guarantee that the manufacturing stays in the u.s. and it is probably part of the problems financially so far that they've seen in addition to some other things. but, still, it's a very interesting talker and play potentially for amazon. kelly? >> i was thinking the same thing, mike, about this is not necessarily a name or a ceo company, i mean, that is one of donald trump's favorites -- >> no. >> -- but if they were to kind of announce, hey, we're keeping production here, keeping jobs here. >> sure. >> it can't hurt. >> it can't hurt. at least maybe you dodge the bullet. maybe you're no longer in the cross hairs or something like that. i think the way amazon is going about all of this is they're

lucky to be able to do this. the perfect locations for the perfect brands that we can get on our own terms as opposed to, look, if you went to macy's, if you could be reduced to the economics of your best three stores, you'd have a great business. >> exactly. it's all coming full circle for the time warner center. it had a bookstore for years that went out of business, then it was a seed -- >> i'm thinking the old coliseum books. >> they have a long history. exactly. courtney, thank you, especially for dealing with those sirens out there on queens boulevard. courtney reagan. >> reporter: thanks. >> see ya later. coming up, turner ceo john martin telling us whether he worries about the trump administration reversing net neutrality rules and whether that will have an impact on his stations. stay with us. nir. ce worhedory

jed m eded35 lpeve nir. ce worhedory r siere e. ntespo)♪her minic

welcome back. president-elect trump's proposed cabinet includes five billionaires and it could create a boom for the luxury retail market in our nation's capitol. real estate, too. we'll have details later on the "closing bell."

welcome back. may not look like much at first glance, but we had a record setting day on the nasdaq 11 point gain closed at 5487.94. that's a half a point over its prior record close. the dow, meanwhile, down 43. the s&p down a point or so. russell 2000 is down 16. time now for a cnbc news update. back to sue herera. >> here's what's happening at this hour. the director of national intelligence says he will make public next week an unclassified report on russian hacking during the 2016 presidential election.

james clapper telling a senate committee hearing he has very high confidence the russian government was behind the attacks. >> this was a multi-faceted campaign, so the hacking was only one part of it and it also entailed classical propaganda, disinformation, fake news. >> house speaker paul ryan says legislation will begin this year to repeal and replace oabamacar. he made the comment on his weekly briefings. under armour unveiling its new high tech sleep wear at the consumer electronics show in las vegas. it was developed in collaboration with new england quarterback tom brady who credits sleep as an important part of his training regimen. the sleep wear will cost between 80 and $100. i don't know.

maybe it's flannels. i have no idea. >> we're going to learn a whole lot more about it. >> yes, we are. >> thanks for now. >> you're welcome. donald trump has named five billionaires to his cabinet as the president-elect is also a billionaire. he and his designates have the stor story. ivanka's new house, and she's going to tell us about the neighborhood, robert. you're here with us at post 9. first to you. >> along with the five billionaires, the trump cabinet has many multi-millionaires. wilbur ross worth 2.5 billion bought this house, 10,000 square foot mansion in the massachusetts height neighborhood. last month listed for 12 million. 12 seat movie theater, staff quarters, seven bedrooms. directly across the street from the home of outgoing billionaire commerce secretary penny

pritzker. treasury pick steve mnuchin has purchased a home in this same neighborhood. price and details yet to be disclosed. brokers are seeing a surge in showings in recent days from the trump team, other wealthy trump appointees likely to be looking right now. the luxury housing in d.c. are rex tillerson, betsy devos, linda mcman, andy puzner. while small in number, their wealth could have a meaningful impact on the washington luxury market. get this, in 2015 there were about a dozen sales of more than 5 million. there have already been four alone just in the past six weeks. so, yeah, it's a small group. >> wow. >> it's a small market. that could really juice that market for the next couple of weeks. >> steve, stay there. it's not just donald trump who will be moving to washington. his daughter ivanka will also relocate there. diana olick is by her new home. >> six bedrooms, six bathrooms.

they've had people fixing it up. painter guy up at the window. we can't know whether or not she actually bought the house or whether or not she's renting it from the new buyer. we do noah cording to records that it was sold on december 22nd for $5.5 million. it was listed for 5.6 but it had been on the market for almost a year and there was a price change in the middle of the year. so probably a price drop according to redfin. this neighborhood is home to many, many, many swanky folks. please take a look at this map. you can see just how close they are to the obama family, which will be moving into a rental that has nine bedrooms. so a lot bigger, but you can literally walk to the obama's house in three minutes according to the google maps and you can bike there in one minute. we are very close to this and, of course, a truck going through. we're very close to the sidwell friends school which is right up wisconsin avenue from here and

that's where the obama girls went. we do know that ivanka has three children with her husband jared kushner so very well-located. when i talked to agents before we heard of all of this news, they all thought that most of the trump folks would be buying in mcclain, virginia, a little bit more republican area than around here. neighbors hearsay democrat, republican, whatever, they will welcome them to this swanky neighborhood with all of its many swanky folks and very millionaire-type homes. looks like it's going to be lovely. would love to go inside. >> yes. >> sneak peek. >> interior tour. google doesn't offer that yet. thank god. >> we had a couple of pictures on zillow but that was it. >> exactly. i'm just -- you know, robert, i guess luxury real estate and pricey private schools can bring everybody together. >> what's really interesting about the trump administration aside from the wealth is very few if any of these guys have ever been in d.c. in politics. so typically with an administration you get people who have either rented in d.c.

or already have homes there. these are rich guys who have never been in d.c. so the housing demand is so much greater. what's also interesting, the wealthy guys that i talked to that are part of his cabinet or named as picks, they want to be central. they want to be within walking distance of the white house and congress. they don't want to be in the suburbs where all the big homes are. so you've got this mismatch between rich guys that want central big houses and washington, d.c., where all the big homes are typically suburban. >> it strikes me as a penthouse crowd and that's not anything you have within the city limits of d.c. >> penthouse crowd? >> there is a penthouse available for around $11 million. >> across the river. >> at the ritz carlton. do you really want to be in a competing hotel to the trump hotel if you're part of the trump cabinet? >> i'm talking about up in the sky. nothing can be taller than the washington monument. >> we're not walking distance to the white house. we're not walking distance to capitol hill and not walking distance to any metro.

i do know that there's like 12 ubers within a one minute distance. remember, we are not really close to the hub of downtown d.c. this is not suburban. it is close to downtown. it's surprising more haven't moved into georgetown where you might be closer. it is a little bit out on the edges of the downtown area. you can bet that these folks will be fueling the downtown restaurants and fueling the economy of d.c., no question, and lots of ubers and black cars to get you downtown. >> if i were an uber driver, i'd be hanging out in that neighborhood, that's for sure. >> yes, definitely. >> thank you both. >> we're going to learn a lot more about calarama. john martin talks about getting in on the increasingly popular streaming wars. and 91 million people die from an overdose war. the costs are going up. how innovation is pumping up prices. that's still ahead. you're watching cnbc, first in business worldwide. is

evpps buinalrere is yocrst ales ononhiorswimou. est

some of the hottest tech trends in the industry. julia boorstin is out there. julia? >> reporter: hey, kelly, we're joined by john martin, the ceo of turner networks. the majority of your company time warner's profits.

before we get into the cbs stuff, we have to ask you about bloomberg reporting, president-elect trump said he opposes the merger, the acquisition of your parent company, time warner, by at&t. how concerned are you about this deal not being approved? >> well, obviously, i can't comment specifically with respect to what the president-elect may or may not have said, but i will tell you that inside our company there is a lot of enthusiasm and excitement about the merger. and a lot of this is really all around innovation and bringing new and innovative video to the consumers for the benefit of consumers. i know that there is a lot of questions about media concentration. this is a vertical merger and, you know, i think that from our standpoint inside our company we look forward to working with at&t. >> so you think the merger will be approved even though trump

said he opposes it? >> i am not a regulatory expert but we are proceeding along that path. >> turner owns cnn. >> yes. >> which president-elect trump has criticized. my favorite one is he's called your reports unwatchable and a disgrace to broadcasting. very pointed criticisms. >> cnn has never been stronger financially. it completed 2016 the best year in the history of cnn both from a ratings standpoint, revenues standpoint, profits standpoint. the president-elect has been critical of a lot of news outlets. maybe yours as well, but we take very, very seriously the responsibility that we have to provide unbiased journalism and sometimes that means being critical of folks that otherwise may not like it. so, look, i think, you know,

what's amazing about cnn is just as many people have said cnn has helped president-elect become lekted and many have said we've been critical. if we've made both sides unhappy maybe we're doing our job. >> hulu gave us details, $40 for their bundle. directv has one. are you concerned that the new bundles will squeeze your profits? >> no, i think it's good for our industry and it's good for a company like ours at turner. we have the number one cable network, tbs, we have tbs, tnt. cnn is the fastest growing news network in the united states. and we have the most highly concentrated portfolio of cable networks in the united states. as the virtual mvpds and new packages come to the market i expect that our networks are going to be present and be part of almost all of these bundle packages, which i think will be

helpful to our company and helpful to consumers because i've been on the record for saying now for a long time there are too many networks in the united states. there has to be an elimination of these networks that nobody watches. so why should consumers pay for networks that they don't care about. i feel good about our position. >> hi, john. i was going to ask a little bit about sports as well. since you're out there at ces, how about talking about esports. is sports itself kind of the ones we think of definitely football but maybe basketball, too, and basketball, are the traditional sports shrinking and is esports growing or how would you describe the phenomena that we're seeing here? >> well, esports, it's nothing short of an incredible phenomenon. i have a 9-year-old son who basically watches religiously other people playing games. and to him that's video content.

that's in addition to all of the time that he spends with traditional linear television networks. and so we at turner were out front and we're proud to be partners with some really, really important and populus games, both on twitch and then on tbs. and i think this is something that is a global phenomenon and we have significant expansion possibilities outside the united states and this is nothing more than consumers watching another sport. i mean, it's hard for me to imagine a gamer being called an athlete, but these are athletes. that's how my son looks at it. he's wildly enthusiastic about it. we were a first mover and i think we have a huge opportunity to grow this business. i think this is something that is only going to continue to grow. i don't think it's at the expense of anything. i think it's going to continue to be a source of new video consumption across multiple

platforms. >> let me ask you a follow-up question. you mentioned there have been too many cable channels and we're seeing the shake outthere. as a user i feel like it's gotten more complicated because everybody seems to have their stand alone over the top service. if i want to toggle from show to show, instead of flipping the channel, i'm going from computer to the tv and i'm opening apple tv, i'm going to find the hulu app. do you know what i mean? it seems to have become so difficult. it makes the 500 menu channel lineup so easy by comparison. would you agree? >> look, i actually -- i -- i accept your comment. i sort of agree with it. i don't know if my 9-year-old agrees. the other day i was in my house and he's yelling from the other room. dad, dad, the tv's not working. i went in and i, of course, turned on the cable box and the cable box was working perfectly but the internet was not working. so for him, apple tv, netflix,

hulu are just as easy to toggle back and forth. it's second nature for him. i do think a concept of improving the overall consumer experience and user experience is going to be critically important. we as knelt work providers are going to work very, very closely with our distributors to try to f continuously improve the overall experience. it's confusing. >> you talked about esports is the future in so many ways. the truth is right now a lot of your business is about traditional sports. sports costs are on the rise. how concerned are you about the rising sports costs especially in light of the dip that nfl ratings took this fall? >> us, not at all. i'm not worried at all. we have a fantastic partnership with the nba that we have until 2025. we have major league baseball out through 2021. we have ncaa march madness which the popularity of that

championship tournament just continues to grow every year. we have that through 2032. so we have perfect visibility in terms of what our overall costs are going to be in sports and 80% of the sports that we have are either tournament or playoff or championship play and i think the nfl has got its issues, which are like very singularly specific to the nfl. i -- you know, our nba ratings are up this year and we feel great about our position. sports plays an important component of an overall portfolio of creative content. >> i can't imagine what the content will look like in 2032. >> i won't be around. >> kelly, back to you. >> great stuff. thank you both. up next, saving the life of somebody overdosing on opioids. it's getting more expensive. we'll tell you what's happening with the price hikes on the overdose antidote when we come back. t an yver inrererent th i ine, ststst..

or not in vest uatcod x hus.

. welcome back. the epipen gain national attention when the producer drastically hiked its price. it's not the only drug that's seen a hike. >> deaths from heroin overdose alone now have surpassed those from gun homicides in the united states. we took a look at how the rising drug is squeezing the budgets of first responders. it is also recommended to be in everybody's purse and medicine cabinet. take a look how one person was happy she had in her car one day. >> i've saved one person's life it was on 290 heading east and

he was in the far left lane and i saw his car veer far right and i thought and he hit a immediation. so i get out of my car and i see that he's overdosed with a needle still in his arm. so i run to my car, i grab my narcam which i always have with him and i ingest him in his thigh and he wakes up. >> these are the kinds of stories you hear about how amazing this drug really is. it's been available for 45 years. what taylor there used it's a training device. it talks you through how you're supposed to use it. you're supposed to put it in your leg. this would be in somebody's leg. it actually counts down and tells you when it's injected the drug. so this works really well. people like it a lot. it has a drug in here that's 45

years old. this cost almost $2,000. >> just that one thing you're holding? >> this one thing. it comes in a pack of two. it's a story about these new methods of administering things. new technology driving price tags up. we saw generic prices of this maybe about $20 for a milly litter. this $2,000. >> the reason why the price is so high because the technology involved? >> often times that's what you hear from companies. this was a similar situation with the epipen. this was an old drug with a new delivery device. we reached out to the company. they told us they raised the list price. this is actually up 500%. in order to increase patient stan assistance. on the back end of that they raised the list price of course. they also say they do give a lot away to charity.

you can see that's a big increase. >> do you think the nonexpert would know how to use that? >> this is a nasal spray that's also been consumed for -- it is pretty cool. with the right amount of training people have different options. >> if you're going through them all the time now that that cost really adds up. if we can while we have you right here, after-hours there's some new in the. report of a ban on cholesterol drug. >> we're adjusting these headlines. has been halted. it has to do with a patent case underlying the drugs, newly improved cholesterol drugs. surprise decision it looks like here in amgen's favor impacted santa fe.

>> nearly 5% move. meg, covering all things pharmaceutical for us. gap shares are also rallying after hours following strong holiday sales. we'll discuss whether there's reason to discuss whether there's optimism. stick around for "fast money." he'll explain why and that's at five. whreoi?

yo whreoi? inn'rnredad. iork atat at id romant auata y

take a look at this. shares of gap are surging after-hours because they reported strong december sales. the stocks up about 7.5% right now. gap also raising it's full year guidance. >> everybody was basically off-balance for better than expected report just because of what we heard out of the department. one element of it does seem to fit with the message you got out of macy's it wasn't clothing that was the weak point. apparel was okay. it was accessories. it was other parts of the stores. >> and watches. >> that apple.com was one of the strongest growths of holiday ecommerce. >> obviously these pockets of things that are working well.

you're not having enough traffic to basically feed all those departments. >> you know what they need more of? >> what do you think? >> tom brady pajamas. somebody starts the trend, what makes these so special? >> some kind of infrared something in the garment itself and i don't know. >> what is infrared do? >> some kind of -- i think it helps you recover from exercise. i don't know exactly how. i was joking they should come them the placebo because maybe you think it works. what i immediately thought back to was another quarterback, joe namath endorsing panty hose back in the earlier '70s. >> did he really? >> gap does not have his $90 pjs. underarmor does.

they were announced out at ces. nevertheless we're going to have the watch retailers tomorrow. >> no doubt. >> and especially as we head into the job report. gap moving the other way. bucking the trend. >> i think the market wants a strong job report. you don't want another first quarter slow down. >> because we've had a couple in a row now. see you later. "fast money" starts now. >> "fast money" starts right now. live from the nasdaq overlooking new york city times square. tonight on fast the retail rep rajz on as a whole group of stocks get pulled down. is this the death of the mall as we know it? plus president-elect taking aim at another stock today. toyota is cheating the u.s. out of jobs. can the auto thrive under trump presidency? and later one of the biggest deals could be in jeopardy because of the president-elect. we'll have a special report on those developing details.