the witness. >> as things unfold in fort lauderdale. closing bell starts right now. >> hi, everybody. welcome to the closing bell. >> i'm bill griffeth.

>>. >> the nasdaq, mike san toli joins us with the round numbers which we will get to shortly. bob, first to you. >> 27 points from dow 20,000. >> that's close to 1:00.

>> the firing on all cylinders. another upgrade earlier in the week. we have been down this week. we're down. coming up just a little bit. the oil business can stabilize. the retailers even with watt mart. it's down. >> only closed down. bertha coombs is there at the

market. >> on the big cap. >> the large cap, it works following the election. the rally, amazon, six months or so it's really helping. >> as you see, it's three. that's a boost in biotech stocks.

they're getting a big stick. what's interesting. more exceptional volume. everything else is kind of exploding. the dow is close to 20,000. mike santoli. >> the. >> it was back in the

depression. in 1966. it closes back to 1962. 1,000 active. they went back to 2,000. it at least coincided with the market being active. it offers 20,000. maybe it's not that important. when it turns out that it's not active on the market. we didn't talk too much about it. >> the super bowl is just

another football greaame. when you hit this kind of a milestone. it got within pennies today accidently. the trading machines are doing. we'll see. >> we'll see. thanks, mike. >> check back in with you mike. let's get to our "closing bell" exchange. will it be an historic friday? who knows, jim challanin, jonathan cortina right here at post nine and next to him is mary ann barto. rick santelli checks in. we have a full house as we await the magic number, jonathan. what do you think? what's going on today? >> it's funny. we had the conversation offline. let's hit 20,000 and get over with it. we can get back to the

fundamentals on the market. we're focusing on our market and the new administration. we're focusing on this. i think investors want to have this. i think this might cause some people getting into this market. people wait for certain catalysts and certain milestones to really spark their interest. i think as we've gotten closer, more people are coming into this market. i think if we pull back once we get through here, it will give investors an opportunity to get through the market that we've been waiting to get into since this rally. >> it's worth reflecting where we come because if you go back to the financial crisis, people have a sense on the run up that we had in '07, '06. we had a v-shaped stock market that has had incredible strength. if anything, the $20,000 level probably, one of the things, tell the people, hey, this is really going on. you probably have been on the sidelines for years now. if it sparked some interest in

the stock market, what should be done about that? >> you're absolutely right. both mike and you are correct. milestones, it takes a while to hit them. mike, i don't think it hits 18 years to hit 20,000 and bridge it. >> we have you on tape now. >> definitely. i think the real move is in the nasdaq. the reason i think the real move is in the nasdaq is we took out the all-time 2000 high. it's more meaningful. it's a great story. it should give investors confidence especially given the run that we've had since '08, '09, but what's happening with technology and innovation and what we've called at merrill lynch the digital era is very meaningful. i think the nasdaq is the digital index of this secular bull market. so i think that's the one we really should be celebrating hitting new highs and not necessarily dow 20,000. >> we were noting that yesterday, the technology stocks had been the lagers. they hadn't participated in the

trump post election rally until recently. it's the nasdaq that hit the all-time high when the dow didn't. jim callahan, it was the financials that were initially the big gainers for this market in the after election rally. and you still think the banks are under owned right now, right? >> i think they're under owned. i think that the credit cycle to the consumer is just beginning. i think the consumer's balance sheet is the best it's been in about 25 years, bill. so i think there's a lot to go. one of the great things about this rally, it's been so broad based. i mean, you had the banks do really well in november. you had the industrials follow on. now you're getting the technology companies to come along with the expansion. >> so i think there's a lot more companies in the dow that are internet related. >> world technology companies now as we like to remind ourselves. hey, rick, you know, some big swings in the dollar. interest rates have kind of

moved away from being some of the story lately. how about that jobs number as well. it's not like it's deep but the internals were pretty good. how much was that factoring in factoring in 20,000 today. >> you know, i think that waiting for the number is more of an impediment, more of a hurdle. the number is gone and we're over "the herd"le. the one lasting impression that we've walked away especially with the year over year. the average hourly earnings month over month wasn't good. year over year 2009 was the best since 2009. that is the one area that has been lacking. as wages start to do better and open up the audience to some of those 95 plus million that are off in the sidelines uncounted. as far as the market, you know, i think the run up to 2000 was by investors seeing a landscape that's more fertile in the future. i think toying with getting over 20,000 is like a commercial. your lights will be brighter now. new and improved. i think it will draw in

investors. we've had guests today saying millennials haven't been on board. this is the type of thing that triggers ultimate new investors coming in. i'll tell you what, there's going to be a lot left to this kind of financial indy 500. i think we are in the early laps. doesn't mean any of them are easy. have to defeat around the track. i think there is an open field to consider. rates going up is important. if you're an entrepreneur near and the barrier to entry in all businesses is going to be easier because of less regulations, the way they treat subchapter s and all the frameworks for taxation. all of a sudden 1 or 2% more in interest rate doesn't really stack up as an obstacle anymore. i think that the concentration on interest rates is going to shift more towards the entrepreneurial opportunities for small business ahead and that's what we need to pay most attention to. >> and, mike santoli, i was going to ask you when we were

talking about the numbers and the history for having a rally that's been this long? i mean, we're in almost unchartered waters, right? >> if you're counting it from march 2009, it's i guess the second longest, third best in terms of gains. a lot of people are going to point out that in 2011 you got into a bear market. a year ago you basically had a big reset. it's battle tested this up trend. it is one of these things where even the people saying people haven't been involved, they've been on the sidelines. if you were involved at all the market has done rotating into stocks for you. they've gained in value for you and you've participated in it. i don't know necessarily that we have this all or nothing idea that now i'm out, now i'm jumping in. >> that has been the hall market. we've called this the most unloved bull market in all of history. i was doing the research. we hit the low of 6443. that was the markane low bottom on march 6th of 2009, now we're

at 20,000, less than eight years later. a lot of this has been this rotation as we go along. we haven't had a full correction except for a couple of times. >> right. absolutely. unloved rally that we've seen over time. as the market continues to trade higher and higher, people are wanting excuses to get out. they're looking forex cus why they shouldn't get in. as this trade and continues to move this way, investors get confused a as to what the right point is to get into the market. when you get at the top, that's what we're seeing now struggling getting through 20,000. there are systems that are out there. there are sellers out there saying this is the top, let me try to get out. but rick made a great point before about the millennials. any time we can trade at certain milestones, certain headlines that gets the attention of the millennials that are investing earlier and earlier. i think that's a great learning experience. >> mary ann, when they got out of the market ten years ago, maybe never got back in, are they thinking, boy, am i

supposed to be in stocks at all-time highs? at the same time bonds aren't necessarily doing all that great either. >> that's 100%. i actually do talk to these clients that came out of the markets and haven't gotten back in and it's really about educating clients about the history of markets. when you go into a new secular bull market it means that something bad happened in the past. most investors focus on what happened in the last cycle. they're not focused on all the positives. i think the other thing that we're not talking about as we're coming against this milestone with the dow, in the whole move since the lows of march of '09, it's been supported in earnings. market cycles are expected to run. even though this is one of the longest bull markets, it's been fundamentally supported. the companies have been able to

earn the earnings. >> kick off earnings next week. that will be a nice little battle. >> rick, can't let you go when you're shaking your head like that. what were you going to say? >> i didn't know i was on camera. that was not nearly the type of under pinnings when the fed was seating the monster. the rally is so closer to future strategy. >> that aren't fundamentally sound. anyone who is there in '09 would have bounced back a good deal, was kind of like that day. everybody panics when something happens. they try to tweak it. that cross the creek bounce is the free fall. no policies would have been implemented after that. there still would have been a big bounce. the sun rises after dark, cloudy days. the real issue moving forward, how much fundamentals we can put

in place to support what i call rally chapter two. >> all right. very good. thank you all. we wish you sunny days ahead as well. have a good weekend. thanks for your thoughts on today's market. >> major averages have been soaring to all-time and record highs. >> yes. >> on the heels of today's jobs number, the dow is just shy of 20,000 right now. >> for more on this and what it may mean for the market and especially the economy let's send it out to chicago. steve leaseman is sitting down exclusively with chicago fed president charles evans. steerch, take it away. >> yeah, bill, what a time to have charles evans here, the chicago fed president. new voter this year. do you think it's because we're a voter that we're up here to the last few levels? >> i don't think so. >> let's get back for a second. tell me how you react when you look at a number like this, 19,969. does it make you nervous as a policy maker? >> stock market has been improving. it's continued to grow. grown after the election. fundamentals for 2017 look

pretty good. businesses are pretty generally hopeful for next year and change in policy. so it makes sense. >> the fed in its minutes of december said one of the risks for next year was that the market doesn't get as much policy or policy support as maybe it's banking on. is that a concern you have? >> well, i think, you know, putting our forecasts together last time. one thing you had to take note of was that long-term have rates had gone up. gone up noticeably. that was a surprise relative to expectations before the election. you had to make an assumption about that. we were in the camp where you made a little bit of an assumption about fiscal policy being more expansion naary. i think everybody is waiting to see details. what actually will be, you know, proposed, adopted, executed and we'll just have to see how that plays out. it could be more or less than people have currently put into their projections. businesses. >> tell us how that works relative to policy.

if there's more fiscal policy does that mean more rate hikes from the fed? >> i think we have to be paying attention to how the economy is performing. the labor market is pretty strong. i am looking for inflation to begin to increase a little bit more noticeably. i'm still disappointed it's been taking long to get it up to 2%. those are our goals. it's very important we get there. i think inflation will come a little bit later given the lags in monetary policy and all of that. we'll have to be making assessments and how much the multipliers are. >> tell us where you are in the spectrum of 2 and 3 rate hikes. it doesn't matter. in terms of the ballpark how many rate hikes can you push for this year? >> i've said for some time i'm still nervous that we've been under running our inflation objective for so long going back to almost 2009. i see the table being set for better performance and better inflation performance 2017 and beyond.

so i've got an outlook and i'm a little cautious and probably only have two rate increases penciled in for next year. if the outlook solidifies, if we get that, if risk management concerns are less important as we move away from zero lower down risk, yeah, 3 rate hikes could make sense. >> '17 looks like a good year for you. trade barriers, foreign growth, what kind of risks are you really concerned about right now? >> it's too early to say, right? i mean, nothing's been written down. a lot has been said. we don't know who all the advisors are, who's going to be the big -- in the administration how things are going to play out and then how congress takes all of that on board. you know, i'm just expecting to listen to how this plays out and work with my staff a lot to figure out what the implications might be. >> okay. >> things like trade and all of that, very difficult to assess. timing. >> right. >> and all of that. >> well, charlie, we'll have a

chance to talk to you over the year that you're voting. you didn't do it. it's just 78. you're still -- >> that's okay. >> 22 short. >> back to you guys. bill and kelly. >> we'll see if we can move it along here. thank you, steve. thank you president evans. let's get reaction to what's going on right now with jim bianco and peter bookmar. happy friday. beat peter, here we are in the threshold for the dow. what's going through your mind right now? >> well, it's certainly historic. for those long stocks, you can be happy about it. but being at 20,000 doesn't tell us anything about where we go from here. we've had a great run since the election, of course, but i think there are a lot of details that need to go -- people need to go through after trump is inaugurated. >> what's your biggest -- what are your biggest questions right now? >> well, my biggest concern is the global bond markets. i'm of the belief that it's the biggest bubble we've ever seen

and that is now beginning to leak air. and to think that some tax cuts and some regulatory release is somehow going to overcome a rise in interest rates, not just here but globally, and we can somehow skate by that, i'm not a believer of that. i think valuations are egregiously over valued in stocks and a rise in interest rates and overvalued markets is typically not a good combination. >> jim, what about you here? what's going through your mind when you see us getting within, you know, less than a point away from dow 20,000? >> you know, that -- the economy seems to be reflating. i guess the question i've had since the election is what's reflating? is it real growth? if that's the case that would bring us jobs, growth, but if it's inflation that's reflating, that historically has not been good for stocks.

now what's been happening since the election and the precipice of dow 20,000, the bond market seems to be, as peter said, leaking air because it's worried about inflation. the stock market seems to be rallying because it thinks we're going to have real growth so they're not in agreement with each other. in the last 15 years this has happened before. more times than not it tends to be the bond market that seems to have the right way. famously it was 2007, things were plunging, everybody said don't worry about it. then 2008 happened. so if this continues i think inflation is the problem we could be in for a nasty surprise in 2017. >> interesting both of you as the stock market moves higher, you both have your eyes on the bond markets. peter, your theory is that we don't see a gradual rise or normalization as some like to say. you say a gradual rise in interest rate, your fear is people will try and exit at the same time pushing rates at the -- you know, at a great rate which could cramp out the stock

market. what would cause that though? what would be the catalyst for everybody wanting to get out of bonds at the same time? >> well, it's a combination of things. we're running into in my opinion the last standing of global quantitative easement. japan's reached their limits. as of april the ecb will be cutting their monthly purchases by 25% and now you have german inflation running hotter than expected and you're going to see a big conflict between those two, the ecb and the bundis bank. you have foreign selling of u.s. treasuries that's been pretty extreme. you have fiscal kerosene on an economy that's essentially at full employment. you have as jim mentioned essentially rising interest rates. >> right. right. >> so it's amazing the psychology in markets. for the past six years what worked was slow growth, qe, and zero interest rates and now what they want to work is faster growth, no qe and rising interest rates. >> now i wonder if you ask most people you could have fast economic growth or rising stock

market, hopefully we won't have to ask the question. >> no. >> thank you, guys. >> appreciate it. >> all right. heading to the closing with 37 minutes left, the dow is up 81 points. if you missed it, we came within .37 of dow. is it hasn't happened yet. which stocks. >> and it's more than coincidence.

we are about 23 points shy of that level right now. two to three advancers versus decliners on the dow today. some of the best performers leading this charge include nike, goldman and visa. flip side, verizon, walmart, j. and j. are all lagging. we were pulling away from the 20,000 level when we first got word of shootings in fort lauderdale at the airport. let's get the very latest on that situation with our sue herera back at headquarters. >> still a developing situation in the airport at fort lauderdale otherwise known as the hollywood airport. 13 people shot, five of those people are dead as a result of the shooting that occurred in

the baggage claim area in terminal number two. the alleged shooter is in custody and nfc has identified him as escoban santiago, 26 years old. he was born in new jersey. the pictures that you're looking at are the tarmac because baggage area in terminal two was evacuated but then there were unconfirmed reports of shots fired in terminal one. and they evacuated terminal one and the parking garage associ e associated with terminal one. nbc's pete williams says there's no evidence that additional shots were fired from terminal one. out of an abundance of caution we did see a very large police presence and response to those reports. so at this point you have terminal one evacuated, you have terminal two evacuated, and terminal two serves delta primarily but also air canada. they have both been evacuated. there is ground stop earlier for the fort lauderdale airport.

incoming flights that were within 50 miles were allowed to land, however, additional flights that were airborne and further away from 50 miles of being diverted to other airports in the area, most notably miami. very tense situation there and 13 people were shot. five of them dead. escoban santiago is in kun did i. the reports are that he was not fired upon by police, that he threw his weapon down, which is reportedly a .9 millimeter pistol and laid on the floor and surrendered. the reports were that he had multiple clips and he stopped to reload those clips as he fired on people in the terminal baggage claim area of terminal two. so 13 people shot, 5 of them are dead. when monitoring the situation, there will be a news conference shortly with the broward county sheriff's department. they are running this investigation. the tsa has tweeted various things, but they are not in charge of the situation there.

it's the broward county sheriff's department. they're looking at a live picture from our affiliate. phil, i'll send it back to you. >> 30 minutes left in the trading session here. the dow is up. with me is kenny porcari, cnbc contributor with o'neill security. we need a gain of 101 essentially to get to 20,000 right now. >> right. >> what will do it, i think, are the market on closers. how do they look? >> it was the buy. they were to sell, now they flip to the buy. 300 million to buy on balance, which is probably not enough to get us there, but we've still got half an hour to go. that number will continue to change. it will update. >> walk me through a few hours ago when we got to 19,999.63. wouldn't it have taken much at all. what's going on? >> 1,000 shares of goldman sachs would have pushed it over the edge. it was very interesting because you could feel that it wanted to go. then you also felt that there was real resistance.

look, we got so close. it would have taken nothing and it failed. you can feel excitement with customers. >> is this a case with the people lying in wait? this is a classic resistance level by its definition where if we get close to it, somebody's saying, i'm getting out. >> that's right. only because it's really a round number. 20,000 means nothing. >> of course, of course. >> it's that big, round number. >> milestone. >> milestone. i think you're exactly right. i think there are people that are saying i don't know if it's going to make it, i'm not waiting any longer. that's exactly what you saw happen. that being said, it is holding in well. it is going to do it. whether it does it today or next week, my sense is next week. jpmorgan on friday. they will blow the roof up. then the financials will ignite it. that's where you're going to get the excitement. >> so just to recap, again, we need a gain of 101 points to get to 20,000. up 78 right now. you're saying the market on close slightly to the buy side but not enough. >> i don't think enough to get us over there.

>> all right. we'll see what happens. thanks, kenny. >> kelly? thank you, guys. the trump rally has been kinder to some stocks than others. dominic chu has the standout winners and the losers since the election november 8th. >> let's keon soy on some of th points. let's be honest, it all happened since the election. the markets on this trump rally have gained a lot of 1250e78 and pushed into some rarefied air, if you will. if you look at the top three dow participants since the election, it's no surprise here that financials have been a huge part of this story. the best performing sector in the s&p 500. with that two dow components, goldman sachs and j.p. morgan chase, the two best percentage gablers sin e gain ners. that has done a fair amount of work, but now disney has come into the top three in terms of percentage gainers since the overall election. so one of the real lagers over

the last maybe year and a half or so in disney shares have started to show some signs of life over the course of the last month. united health is one of the better ones just not in the top three. as for the bottom three, guys, check this out. it's a couple names that we're all familiar with. you have cisco, coca-cola and procter & gamble. they have had the biggest percentage fall since the election. one of five or six stocks in the 30 member dow that have had negative returns. each of those stocks have fallen at least 2% since that time. now we speak about those. those are the biggest percentage losers, guys, however, the one that's probably had the most impact to the down side, the biggest drag on a point basis is johnson & johnson. it is one of the big jest laggers but not one of the biggest three percentage losers. by virtue of its share price, 116 bucks a share, when it moves it does do a lot of lifting either up or down for the dow, guys. >> we got so close, dom. we got this close. a nickel. >> a nickel.

>> robert hahn pointed out when we were just .what was it 37. >> .37 points away. >> away, any five cent move, any five cent move in any of the dow stocks would have put us over that. whether it was cisco, which is one of the cheapest, or goldman which is one of the most expensive, but we fell this far short. >> she's got the nickel. anybody want it? >> you know what's crazy, i mean, if you look at, it's been so interesting to watch the price, the tug of war. i was looking earlier today at the spider dow jones etf, it tracks the dow jones, the diamond, dia. if you looked earlier this afternoon there were almost equal numbers of bullish options and bearish options traded on this particular dow etf. it goes to show you, this is a real battle brewing. like kenny polcari said, there are people who feel like they want to sell in this market and have found that people are willing to buy at the high levels if they keep selling into them. so it remains to be seen when

and where we will hit this. i guess if you mention the fact that the banks have their earnings on friday coming out, that could be the next potential big catalyst. remember, we've been saying it for two weeks. the market is in a territory where it's gone up very high, and statistically this doesn't happen. maybe it's a little bit of stuff to work off before we can make a march towards 20,000. >> dom, thanks very much. we'll see you later. this reminds me of a political convention. you wonder who's going to put the nominee over the top. will it be goldman sachs, nike, caterpillar. we'll see. the dow, nasdaq, s&p getting new high records. the dow, as we know, has been flirting with 20,000 all day. >> joining us are larry kudlow along with mohamed el erian. i want to know where you guys see eye to eye when it comes to these markets. larry, let's start with you and whether you think dow 20,000

here could reasonably be more of a floor than a ceiling and i guess it depends on what you're always talking about, profits. >> yes. there you go. thank you, kelly. you're wonderful. profits are the mother's milk of stocks. there's a lot of optimism. everyone's talking about trump and his business tax cuts, which i totally favor. and i believe will help businesses and will help profits but that's a ways down the road. right now a lot of bullish ngsz about third quarter profits and improvement. many people are saying we've turned the corner and the five or six quarter decline is over. if that's true, if that's true, then i think you're going to head right to 20,000 no problem, but i'll just put some numbers on the board today. year on year wages, 2.9%. >> right. right. >> productivity is basically nil, nil. business inflation, business prices, 1.5%. so we're still in a tough period. costs are rising faster than

prices. normally that is a negative for profits. >> okay. mohamed, after hearing all of that, what do you make of where we stand today as we stand on the threshold of dow 20,000? >> so i think we've gotten here for good reasons. one, as larry said, pro growth policy announcements. deregulation. infrastructure spending. two, a better political setup, i.e.,, we may get congress acting on these policy proposals and, three, the rest of the world hasn't gotten in our way and that's important to stress. the rest of the world has been pretty benign in recent months and weeks. we've gotten here for good reasons. to go further we need announcements to become design and implementation. >> yeah. >> and somehow we need to cope with the divergence between the good things that are happening in the u.s. and the less good things that are happening elsewhere, which means we've got to be careful about the dollar.

>> mohamed, let me just raise a point. >> go ahead. >> because i agree with you, i think we usually do but, look, on the issue of the pro growth tax policy, i'm going to just focus on the business taxes, easy repatriation, 15%, 20% rate -- corporate tax rate for large and small companies and immediate expensing. all of that is pro growth. if it goes through, it's going to be just tremendous and could raise economic growth to 4 or 5% for at least a couple of years. >> larry, i just wonder. let me ask you this though. we've been hearing from paul ryan this week, we had jeb hensarling on yesterday. it seems like they're tempering expectations when a lot of this policy will be finally enacted. has the market gotten ahead of itself? >> that's where i'm going. that's where i'm going with this. >> okay. >> stepped on my line. it's okay. i don't have any problem with that. >> just contributing to the conversation, larry. >> you always do it very well. look, you're exactly right.

the strategy as i see it, just speaking for myself, i'm representing nobody, is that the health carey forms, the obamacare reforms will come first and tax reforms will come second. very complicated matter. tax reform, you have the border tax return with mexico. if you don't get a tax bill this year, i would argue you're going to get less economic activity. people will postpone decisions and your point about is the market getting ahead of itself, on the matter of tax laws and tax legislation and pro growth, supplies, i worry about that because we may not know until the very back end of this year what the rates are, who's going to pay the rates, will there be grandfathering, will it be retroactive to some day. it's a lot of things out there that are going to have to be resolved. by the way, just a quickie,

that's why i wanted to put the business tax reform piece into the first reconciliation bill with the health care. i still believe that's the way out of this. >> all right. mohamed, you've been waiting very patiently. we had peter and jim on. both of them when we asked about dow 20,000 they wanted to talk about the bond market. they're worried about the inflationary implications of what's going on now. their fear that rates are going to skyrocket at some point which will hurt economic growth, not to mention what it does to the stock market. what's your view of that? >> so i agree with them that the bond market is smelling high inflation as well as higher growth but i disagree on rates skyrocketing. >> okay. >> because of international arbitrage. if anything sky rockets, it's going to be the dollar. that's why it's really important to think about the divergence. yes, the bond market is smelling both higher growth and high inflation. we've had too low inflation. inflation rate of 2%, that's pretty good for the economy. >> you know, i think you're

right, mohamed. i think -- it's the skyrocketing part that i find difficult to believe. i don't think economic growth overnight is going to 5 or 6% so that would drive up the real rates. i don't see that. i'll grant you inflation expectations have increased. the ten year break evens are now about 2%, but i would note the dollar is very strong, as you know, and i believe a strong dollar holds down inflation, all other things being equal. >> yes. >> so, anyway, i don't see skyrocketing rates. >> i was going to ask you that, mohamed. they talked about how they saw inflation picking up. larry made the point earlier, if you've got wages increasing, more than prices and productivity is flat, do you think inflation could surprise us to the up side here after many, many years where the opposite has been true? >> yeah, inflation doesn't keep me up at night, kelly. could it surprise someone to the up side? yes. i think there's too many structural forces that hold it

down. i think the key issue, and that's a very important signal from the market, is to the politicians saying, you know what, if you deliver pro growth policies, good things are going to happen. and hopefully that message will be heard not just on capitol hill but also in europe and in japan. >> i just can't tell you how much my heart goes out to mohamed's analysis on this pro growth tax cut. i just think it's fabulous for me to hear you say that. god bless. one more point. one more point. >> okay. >> on inflation. i do not believe as the fed does, i don't think more people working and i don't think more people earning a better wage causes inflation. bad money causes inflation and with the dollar strong, we're in pretty good shape there. they'll probably have another court appointed rate hike this winter or spring. i just -- i think mohamed said inflation doesn't keep you up at night. i'm in the same camp.

>> all right. gentleman, thank you both. >> thanks, guys. have a good weekend. >> larry kudlow, mohamed el erian. the dow is back at 19,990. we saw some weakness over the past hour on developments out of this shooting in florida at the airport where many people are wondering just what the situation is, how bad are things down there. well, sue herera joins us with an update. >> still developing situation at this point, kelly. five people are dead. eight injured in the ft. lauderdale shooting. the shooter is in custody, unharmed. he is being questioned by law enforcement. he is identified as escoban santiago, 26 years old. born in new jersey. they don't know what the motive is. terminal two was evacuated. terminal one was evacuated but there was no incident at terminal one. we're monitoring the news conference. back to you. >> thank you very much, sue. it's happening again. this is like contractions when somebody's giving birth.

we make a move close to dow 20,000, we pull back again. everybody gets excited, we pull back again. looks like it's starting to happen again. we're up 92 points. we're at 19,991, about nine points away. i'm desperately looking for art cashin to see what the market on close orders looks like as we head towards the close. at any rate, just a reminder, the dow, the s&p, the nasdaq are all in record territory right now. >> by the way, with every point we are -- we're starting to hear it on the floor. we're sitting with a gain of 92. we'll see if we move up a little bit here. this, about 14, 15 minutes to go. look at that, even with the dollar index stronger today, the s&p transports are up big and russell small caps are actually weaker on this session today, down by 2.5. >> lost in all of this, the jobs report this morning. wondered if that would be a market mover. it was not even though as larry pointed out, we've been talking about this, the wage component

was the strongest on an annualized basis in seven years. a gain of 2.9% for the month of december. this is not the market -- there's a real dividing line, before the election, after the election. before the election we were still obsessing on the federal reserve. that number would have sent markets spinning as they expected the fed to start raising rates a lot faster. now we have very different expectations because of what's expected to come out of washington. >> everyone is watching january 20th instead. >> exactly. >> that said, we did start moving higher gradually after that report came out at 8:30 this morning. i wonder how much that number is feeding through to people looking at a way to describe the economy picking up momentum. that wage data came in a month when the retailers who have been reporting over the last couple of days had a horrible go of it. so is the strength in the consumer will be coming through somewhere, just not in the traditional ways that you think about. >> this is a market that's not focused on monetary policy, it's

focused on fiscal policy. >> let's get back to cnbc headquarters with seema modi. >> the market has been outperforming is biotech. this is coming ahead of the widely anticipated jpmorgan health care conference. we see drug announcements and mna announcements. in terms of particular stocks, a.mgen rising 3% or so after a u.s. district judge blocked them from selling their cholesterol drugs which amgen said infringed on its patents. they're on track to end the day lower. it's down about 20%. we'll see if 2017 is a different story. >> seema, thank you. 92 points higher. it's convenient, by the way, we're at a round number. you can watch the point gain. >> all we need essentially is

101 point gain. art cash dlin stopped by. $900 million is what we're looking at. the dow is up 92 points. is that enough to put us over? >> will it happen on the bell? >> the dow is closing in on 20 k. leading us higher. the nasdaq closed at a record high. what are some of the best plays in tech right now. let's bring in mark meheny and gene muenster from luke ventures. mark, i noticed netflix is one of the best performers today. how much are you counting on tech to keep powering the rally? >> there's been a couple of things you've already mentioned on the show. one is generally pro growth, lower taxes. that's good for all parts of the economy, including tech. secondly, the negative fear is the rising dollar. netflix, amazon, google. they have half of their profits

overseas. that's a headwind. it is going to be -- you're going to hear some extra caution we think from the executives when they talk about the full year and beyond that i think what we've just had is this quick rotation in and out of tech, concerns that trump would tramp down on some of the technology leaders. they have a meeting in new york. i think the fear about what trump's impact would be on tech, that was overstated. >> gina, looking at your favorite picks right now, near term you like apple. longer term you're looking at tesla and amazon. what's the story you're telling here about technology? >> well, you just need to own the secular themes that are playing into what we think is the future of computing and that's around augmented reality, artificial intelligence and robotics. to put that into perspective, all three of them have longer term growth opportunities. despite what the market is doing any given day, all three of those like for example tesla is one of the concerns that a lot of investors have is around

their manufacturing ability. we believe what they're doing around robotics is to significantly improve that output. >> and, mark, as we look at the biggest valuation companies in the world, a lot of them are these big tech companies. if this rally's going to continue, how much bigger can they get? are we going to have trillion dollar market cap discussions at some point or is this going to be a place where now we need to see other parts, new companies or different parts of the economy kind of bolting into the leadership? >> well, you threw a lot in there, kelly. you touched on some of the key points. i actually think we're going to see a pretty robust tech ipo market this year and that's all i'll say about that. in terms of trillion dollar market caps, i hope we don't get into those discussions. i've talked publicly about one company getting there, amazon. i'm still talking five years out. i don't want to get ahead of our

skis. fundamentals have been very consistent. google, 20% year over year growth. it will be consistent for the next eight quarters. that's why people should pay up. we think there's modest up side

pants problems that were hurled by the founder about some women's bodies. and the leisure trade and outdoor sporting goods store cabellas shares have slowed 300%. another thing that hasn't gone out of style, bargain seeking and treasure hunting. up more than 460%. dollar tree shares have gained 366%. kelly and bill? >> unbelievable. >> isn't that crazy? >> thanks, courtney. >> so we've got five minutes left in the trading session. let's talk about where we may go from here. joining us on the floor of the new york stock exchange, brent chuke and mr. arthur cashin, director for operations at ubs. doesn't look like it? >> the airport shooting stopped the first attempt and now your

problem is the clock because while you have $900 million to buy from portfolios, if i'm a trader, i don't want to pay a record high with the weekend coming up and not knowing what's going on. it's a tug of war in the flock. >> what do you think of the markets? >> we've come a long way in a short time. the actual recovery and rally has been that the actual economic data is improving. the highs you have not seen since '13. scramble it in. maybe some of that fuel has burned off and we're set for a pause. long term we like equities. >> so let's look ahead to next week. earnings starts. >> earnings starts. >> that's usually a volatile period. >> friday will be very important. bank earnings. >> bank earnings. >> friday the 13th. >> oh, boy. >> keep your rabbit's foot handy. and the president-elect is going to have a press conference in the middle of the week.

>> on the 11th, right? >> yeah. so we're hoping to find out what progress might be made. that will be important for this market. >> i'll be interested in the retail sales numbers, too. the wage data was pretty strong. the old details are clearly not doing that great. it's a little bit tricky to assess the health of the young public. >> i didn't inject there. >> no, not at all. in general the u.s. consumer is on a very fundamental and firm footing. if you look at the debt to asset level, we're back in the 1990s. now they're getting retail levels. retail sales month to month, volatile. long term there's room for spending. >> all right. away you go. >> i can't talk that. >> when you get to be my age you gather these things as you go along. >> thanks, gentlemen. see you later. >> maybe. so what do you think?

if anything, we're seeing a little more selling as we go to the close. >> the buyers has to pay a record high. with the weekend coming up, geopolitical surprises, whatever, take another shot next week. >> what do you say to those people who say this is just another number? it doesn't mean anything in the aggregate. >> but when we hit 20,000, every new hampshire, every mainstream media will batter it. do i have enough with my 401k. you might induce buying. >> do you tell your clients, yeah, this is the time to buy or due take the money off the table? >> i think there's a lot of pessimism. that kept people from investing in equities. the one thing that i worry about is that investors with 20,000 in the u.s. are being emboldened to invest in the u.s. i worry that people chased the trend and they ignore the rest

of the world. >> let's bring bob pasani in here. we came within .37 points. >> that will go down in the annals of agony. >> the scripts were written. we're all getting older as we're waiting for the dow 20,000. you know what made me happiest? average hourly earnings up 2.9% for the year compared to the same area last year. that is the best number since june of 2009. what it means, let's not be abstract. more money in our pockets. once people feel more confident, stock owners can spend. wouldn't that be something? >> that would be great. >> 80% of all stock controlled by the top 10% of households. isn't that an unfortunate number? >> thank you.

your new co-anchor there. >> there you go. >> thank you for joining us. >> arthur, as they say, maybe wait till next year. >> wait till next week. >> next week and see what happens. >> thank you very much. >> we go out as we came, just within a hair's breath of 20,000 but not today. gained about 64 points on the dow as we head towards the close. stay tuned now for hour number two and the "closing bell" with kelly evans and company. have a good weekend. thank you, bill. hi, everybody. welcome to the "closing bell." i am kelly evans. what a day we have had here on wall street. looks like we are finishing up without hitting dow 20,000 both in the session and on the close here. we thought the closing orders might push us here. we've come off a little bit. the dow which was up 100 points earlier closed with a gain of 67.

19,967. 1/3 of a percent of gain. and the s&p 500. 2277 is a record close for the broad index. now the nasdaq which already hit a record this week up nearly 2/3 of a percent to 5521 closing perhaps 5500 for the first time there. that's a record. the russell 2000, the small caps, they did not participate. they were down 1/3 of a percent to 1367. 20 points high. the dow traded within .37 points of the 20,000 milestone. we will tell you where you should be putting your money to work. two top financial advisors will weigh in on how to position as we flirt with this milestone on this show coming up. let's get a check on today's big movers. bob pasani is tracking the action on the stock exchange. bertha coombs is over on the nasdaq. >> .37. only .37 away. it was agony all afternoon. all standing here ready to go.

nonetheless, let's take a look at how close we got. again, the most important stocks, goldman sachs. nice move this week. gold man had been a little over 2.3%. remember the highest priced stock, that got us right up against it. jpmorgan had a good week overall. as for the rest of the dow week, some of the laggers led. nike, one of the worst performers did very well. pfizer had a very decent week. united technology, a stock that was a big mover after the election had moved sideways and had did very well this week. laggards didn't help us out, chevron and exxon. chevron/exxon both down on the week. exxon down almost 2%. this at a time when oil stabilized near 18-month-highs. those were the two biggest

disappearances. home depot and walmart. two other disappointments. i know you have a few winners, a few laggers. bottom line is we're right up against the door. >> let's head uptown now to the nasdaq where bertha coombs has been watching the stock. >> both the nasdaq 100 and nasdaq composite closing at all-time highs. the nasdaq 100 has been the powerhouse all week. it's been such an interesting transition because we saw following the election the rally was really led by small caps. small caps today and this week have been the lagers. people have been moving into big names like amazon, facebook. all of those names. but really this week it was kind of fa, alphabet, amazon and apple, facebook. it helped move the numbers up. apple closed at the highest numbers in about a couple of

months here. also, take a look at some of the new highs today. they included netflix which faded into the close. netflix has been a big performer. this was a huge drag and it has been up for seven of the last eight weeks. that's among the best performances we've seen among the big cap tech stocks today hitting an all-time high. and biotech recovering this week as well with a really nice move to the up side. that's anticipating perhaps jpmorgan, the big health care conference and out in san francisco. but compare this week last year biotechs were down 10%. this is the best performance to start the year for biotechs in about three years. kelly, back to you. >> some catching up to do. thank you, brert that. let's get to today's panel. joining me is michael santoli, evan newmark is here. and aroum daniel. rick santelli is joining us from

the cme as well. thanks, everybody, for being here. mike, we got so close. does that itself tell you anything? >> i don't know that the gree by which we missed 20,000 tells you anything, but i do think what it does tell you is it was not a lot of swelling up over this move today. it's been lingering near the all-time highs. it's been flattening out. it's all net positive if you're looking out weeks, months. if we didn't have 20,000 in the mix, market, big cap index is up 1/3 of a percent. so it seems like there was a lot of effort just to get the dow as high as you did. >> many of these days we have these long lists of stocks at all-time highs. it was very few. >> small cap is down. >> exactly. that's been one real area of strength. evans, do you mind taking a step back for a second. dow 20,000, i know it's a

milestone. it's a milestone nonetheless. are you amazed we've gotten here? it's been a roaring back recovery in the stock market? >> i'm not surprised. you know, for -- i -- the market plus the mice have been sideways for two straight years. it's been crumped up since the election of donald trump. >> yes. >> we're in that interim period. but the moves have been pronounced in certain sectors. they've been very pronounced. the small cap stocks, midcap stocks, pfinancials have been bg moves. energy stocks still nowhere near the all-time highs. >> what's interesting about this right now, it's not as if we're doing these stories and on the cover of newsweek, time, whichever you're going to see crazy evaluations and real cautionary tales. >> no.

in the small cap area, and i think in certain areas, the valuations are going to push the envelope. you won't see the big bursts of buying. when somebody sits back and goes, i'm buying a lot of good news going forward. if i nl buying a small cap you have to do that. >> it's true, the other piece of it, some of the biggest companies in the world, some of the tech names that we talk about, those are the ones that are trading at pretty lofty levels, the netflix and those kinds included. do you think the market is healthy here? >> i think we prefer the small and the midcap space, kelly, over the large caps as given where they are trading right now. we like technology. i think the evaluation is fairly attractive in the small and midcap space. we like financials on the interest rate cycle. we also like industry on the distribution side as we expect the aspect to continue on the

infrastructure spending as we see coming up. >> i was just going to ask you, every time people name the reason bes why they like those sectors, the question just is but isn't that priced in already. how much good news is in here, ahroun. >> i think we have to be very stock specific and story specific. i think we've had a broad move in sectors. i think it's the stocks that would specifically move based on the self-help story. there is hd supply. it's mna story as well as infrastructure in the company. we have to look at stock specific stories. it's really a top market. same thing in financials. we like the regional banks. you have opportunity to move. >> what were you going to say? >> you know, i really think that much of the discussion about the market and how high the rates

play into it, it is very key. i once again think that we can't look at things in the old style of inflation, monetary phenomenon. i get all of that. after going through all of the over top policies, i think the best way to look at growth and inflation is together like siamese twins. we couldn't have big inflation until we started to get growth. i really don't look at interest rates for the stock market. it's what makes this particular rally. i think it's when i actual live personally think that the most important aspect of the milestone is the day we cross it, how long thereafter it closes above 20. if it happens the same day, i don't care how long it takes, that would be a much more bullish scenario than if we cross it and have to wait another week or month to get a solid close above it. >> right. right. i take your point.

that will definitely be one thing to watch. evan, you were shaking your head. >> the old song, "it's a stock picker's market." i don't buy that at all. >> one all the way down to .2. >> i don't buy it at all. the sectors. >> that's the cap. >> if you look at the consumer discretionary sector, media has been great. retail has been bad. >> it's hard to find a good retail stock. >> it's all psychology. that's why the tacit funds have become so -- >> yes. if you look though i mean generally the way things have taken out.

it hasn't been a stock picker's market. basically, i don't expect that change to have a good idea. it's just not going to double. >> redefine what it means. right now the conditions are more conducive to being selective and picking potential winners versus losers. doesn't mean you're going to get it right. >> except now the correlation is going lower. >> let's give 2017 a chance. >> yes. >> we'll give 2017 a chance. >> you mentioned h.d. supply just in a stock picking word before you go, who else do you think would be a good candidate here for 2017? >> i think we like the technology sector. i think the very timely topic is cyber security as we've been talking about it all week. and that's a stock that we like. it's on different levels. it has an opportunity to outperform.

we like hot spot, cloud platform and digital marketing. so these are very stock specific stories and where i disagree with evan is the fact if you have earnings going upwards and the numbers are changing, the multiple will catch up. long term you get paid for t. that is where the stocks can drive -- outperform the sectors. >> thanks, everybody, for joining us. aroun, rick, thanks for staying with us to talk about dow 24r078k. we'll pick back up next week. have a great weekend. we have much more on the dow's march to 20,000. the banks are still some of the big winners. nearly 18% since the election. are there still buying opportunities left? we'll ask next. with the market record highs we'll tell you what else you should add to your portfolio. plus, new details on the government report on russian hacking. you're watching cnbc, first in business worldwide.

welcome back. we have details. eamon jabbers has more. >> two weeks before the inauguration of the new president of the united states, the intelligence community has released this joint report.

unprecedented report arguing based on their intelligence collection they have concluded that the intelligence of a foreign power intervened on a united states election on behalf of the man who will be sworn in as president of the united states in two weeks. the report is called assessing russian activities and intentions in recent u.s. elections. let me give you the key paragraph for history here. assessment is a term of art. that's the conclusion that an intelligence agency comes to. we assess russian president vladimir putin ordered it. russia's goals were to undermine public faith in the u.s. democratic process, denigrate secretary clinton and harm her electability and potential presidency. we further assess putin and the russian government developed a clear preference for president-elect trump. we have high confidence in these judgments. it's a key here, kelly, that not all of the agencies in the u.s. intelligence community signed on

including this one. they say we also assessed putin and the russian government aspired to help when possible by discrediting president clinton and contrasting her to him. this report says all three agencies agree with this judgment. cia and fbi have high confidence in this judgment. nsa has moderate confidence. that reflects a post-iraq wmd intelligence reform to try to give policy makers a sense of when they think they really know something versus when they think they might have strong indication of it. i want to give you another detail here. they're saying the russian effort hacking the u.s. election changed over time. initially they thought the hillary clinton campaign was the most likely to win. then it shifted over time. they say initially they had a plan for hillary clinton victory to try to discredit the entire u.s. election system. when it appeared to moscow that secretary clinton was likely to win the presidency, they focused more on undercutting secretary

chin tows' legitimacy. they say pro kremlin bloggers had #democracyrip on election night in anticipation of hillary clinton's victory. that was not needed given that donald trump won the election. the intelligence agencies said this is a declassified version of a highly class fight assessments. but this version that we are seeing publicly does not include the full supporting information or key elements of the influence campaign. i want to also bring you this statement from donald trump here in the wake of his meeting with u.s. intelligence officials in trump tower earlier today. donald trump putting out a statement saying while russia, china, other countries, outside groups are trying to break through the cyber infrastructure of our governmental institutions, businesses and organizations including the democrat national committee, there was absolutely no effect on the outcome of the election including the fact that there was no tampering whatsoever with the voting machines.

kelly, so donald trump issuing his own statement here and we'll wait to see what the white house has to say publicly and what members of congress have to say anything about it. this is our first opportunity to look at the detailed case that the u.s. community was making that they intervened in the u.s. election using intelligence services on behalf of the man sworn in as president of the united states in two weeks, kelly. >> eamon, thank you. more breaking news on that horrific airport shooting in fort lauderdale today. >> we're beginning to find out how he carried out that horrible shooting today, kelly. five people are dead, eight injured in ft. lauderdale at the airport shooting. the shooter is in custody. this is from the baggage claim area where that attack took place. nbc has blurred out the faces of those who were either wounded or killed in that attack. he gave -- basically what happened, he was on a flight from canada, he being escovan

santiago. he is the suspect. he is thought to have arrived on that air canada flight after legally checking his gun. he picked it up in baggage claim, went into the bathroom and loaded the gun and came out and started shooting. he reportedly reloaded the ammunition clip several times. officials don't know what the motive was. they don't know if it was terrorism at this point. they're still investigating that. as you can see from the footage. a lot of people were evacuated. terminal 1 was evacuated as well on some unfounded fears of additional shots, no additional shooters. they evacuated both terminals out of an abundance of caution. >> unfortunately so. sue, thank you so much. >> you're welcome. the dow meanwhile so close to the key 20,000 level rallying

9% since the election. bank stocks were a big part of the rise. we'll discuss where they go from here next. also ahead, the president-elect is taking aim at individual companies on twitter driving those stocks lower in many cases. what trump and his twitter account could mean for markets coming up. renollhehe mint.

reno mhehe haah

welcome back. the dow off half a point to the milestone 20,000 mark.

morgan stanley and goldman sachs nearing multi-year highs. morgan stanley a nine year high and goldman a ten year high in the trading section. the sector does continue to lead the rally. top left is up nearly 18% since november 8th. so how should you play the space right now? joining us, michael cajuno from permanent portfolio funds and jason from barclays. michael, first to you, do you buy the whole thing? do you have to get real selective? big or small? how are you thinking through the financials? >> well, there's a lot of subsectors to financial services. we try to spread out that surround. we own morgan stanley, big money, state street bank, more of a custodian asset play. and first custodian. the broad second tier that has a good overall business banking, more traditional banking business so we try to hedge our bets. >> jason, what about you? who do you think is the best buy candidate?

>> we're generally attracted to money tenor banks. there's a pro growth agenda with loan growth and capital markets. the latter part of 2016 saw a pickup in m&a and pickup in market volumes and volatility. we expect that to carry through 2017. you know, you couple that with improving operating leverage, benign credit quality and continued share buy back. it sets the group up nicely the next few years. >> jason, let me ask you. pick an example if you want, how much have you increased earnings estimates for the banks since november 8th. >> since the election you've seen 2017 earnings estimates only come up about 5% or so. not a dramatic move. you've seen a little bit larger increase since 2018. could you still get the full benefit of the fed hikes anticipated for 2017. what you haven't seen estimates adjusted for yet is a reduction -- potential reduction

in corporate tax rates which benefit banks' bottom line but should benefit consumer credit quality and i think another big kicker can come from an improved regulatory back drop. to the extent that any of these regulations have been increasingly met with over the last eight years or so begin to get eased, that's another windfall for the bottom line. >> evan, grab your mike. right to what you were saying a second ago, raising the issue, can you and should you in the case like this pick a sector and buy it broadly or do you need to be really tactical here because of the valuations have come up? >> i tend to believe especially they tend to trade as a group. there are changes and the real question about the whole group is whether or not you have that boom -- speculative boom in subcapital markets. some particular sector that drives these stocks higher. i'm a little skeptical of that. i think there's been a huge k d

commoditization. high end homes. prices are going down. that's a harbinger wall street isn't expecting them to be a boomer. >> these are all reasons why i think you want to hedge your bets in financial services and invest in a variety of different companies. i would agree. i think basically none of these stocks are really cheap anymore. they were earlier in the year, but you're trading at market multiples, in the case of first republic, even above that. but you're trading that based on better expectations, better business prospects, better interest rate environment, less regulation, et cetera. i'm not expecting q4 earnings to be all that great in the fourth quarter. i think they're going to be decent. that's okay. the expectation is that the margins, the spreads and all of that are going to improve dramatically going forward with all of the optimism in the new administration. that's where i think they're going. that's why i think there's more

appreciation there. >> guys, thank you. a week from today we'll start learning more about the fourth quarters and then it's onto the fourth quarter. michael and jason talking the financials this afternoon. the energy sector rallying, this one more than 9% since donald trump won the election. coming up, two stock tickers will drill down on the names you should buy now when we come back. co e ksed

welcome back, 19963. that's on the dow. we got a lot closer to 20,000. we were less than half a point away. at one point in the afternoon. we didn't do it. we didn't touch 20,000. we certainly didn't close there. we pulled back. next week brings some change. we'll see how that compares to other major averages. the 30% gain for the dow, the same for the s&p 500. it was enough to put a broad index at a record close. the nasdaq up .6. nasdaq closing at 5521. russell small caps did not participate. they dropped 1/3 of a percent to 1367. with the s&p and nasdaq at record highs, which stocks are still worth buying? joining us are sarah hunt, a portfolio manager at alpine

funds along with david seller by. >> good afternoon. sarah, what do you like here? >> well, there are a couple of things that we like. we like gkn. it's a u.k. based stock. it's really trading quite cheaply welltive to the goods. we still like snap on. it makes tools for the automotive diagnostics. >> cash flow is doubling. we know it has a great run but has strong legs. norfolk southern, industrials have come back. gdp is accelerating confirmed by the ism indexes. i think the rails are a good

number on the industrial side for secular growth. that represents some opportunity. let's look at financials. a name like ameriprise. i'm an active stock market investor. active management will win in the next couple of years. ameriprise on a valuation basis represents opportunity there. >> all right. >> i think this will be a good year for active investors. >> we were just arguing about that. >> we were. the conditions might be there for it. to either muff it or make it. >> tail wind. sarah, i was going to ask you, one of the features of trading this week has been lagers actually recovering more than the overall market's gone up. you see a lot of health care leadership, things that got left behind at the end of last year. that's a lot of times normal in january. i wonder what you think if it has been the kind of market where you'd want to own some of the stuff that got left behind

last year into 2017. >> i think it's a combination of things. what we're looking for right now is we have a big dividend focus. we want dividend stocks that can grow. in some cases gkn was a bit of a lager. it was catching up already. snap on had a nice move. neither of them were total lagers. i think there will be a catchup trade as people look for things with lower valuations. >> that's exactly what i was going to ask, sarah. a lot of people when they see the headline about dow 20,000 are going to w57ant to know. is it over valued? is it sloppy, fundamentals? for the most part i don't hear you saying, hey, i can't find anything worth buying. you are sounding cautious. >> i think it's trickier with valuations. there's a lot of high correlation in sectors. health care has come down as a group. the financials has moved upwards as a group. then you have to look in between and see what stocks you think

are poised to have growth on their own that is not just sector focused. i think it becomes more of a stock picker's market when you see valuations high across the board. >> all right. >> just one last quick key. >> quickly. >> whether it's a stock pick kerr's market or not, there's always opportunity. when you think when the dow was 2500 in 1987. 5,000 in 1995. 10,000 in 1999. today, valuations are more attractive, inflation is lower, bond yields are lower. we didn't have that -- that commonality at those episodes when we were talking about when would the dow double again as we're on the cusp of 20,000. that's where you have more respigotbility on gains. >> sarah and david, thank you very much. >> thank you. >> stock pickers. picking the stock. >> good luck. if the ten year hits 4%, good luck picking stock. >> that's a big if. we're 37 points away from dow

30k. it's next week's week. we'll hear from two financial planners with their best ideas. president-elect trump's twitter account has proven to be market moving. the ceo of the app says when trump has tweeted about a specific company in your portfolio. she's coming up. you're watching cnbc, first in business worldwide. m ev ng 's t ? wa pith

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welcome back. police have a suspect in

custody. cnbc's sue herera has been tracking the story. >> indeed, kelly. we're awaiting a news conference from the governor momentarily. 5 people dead, 8 injured in the ft. lauderdale shooting. the alleged shooter is in custody. he gave up by lying spread eagle on the ground after running out of ammo. that is video from the baggage claim area. we have blurred out the faces of those who were hurt or killed. the suspect who is identified at this point as a 26-year-old man born in new jersey, escoban santiago, he gave up to police. he is not harmed. they did not fire shots at him. he is expected to have arrived from a flight in canada. he had a legally checked gun. he reclaimed the gun, went to the bathroom, came out and loaded it and he reloaded it several times. we don't know what the motive is yet. at least officials are not saying. we don't know if it was

terrorism. nbc's pete williams said at this early point in the investigation it appears to be that mr. santiago was a mentally disturbed person and is not related to terror. a number of people were evacuated to the tarmac. you're looking at footage because they thought perhaps there was another incident in terminal one. there was not. there were unfounded fears of additional shots in the other terminal. there are still people on the ground at the tarmac and basically there are no flights going in or out of that airport at this point. kelly, back to you. >> sue, thank you. we will keep following this story as it develops. let's get more on the market move today as the dow inched closer to the 20,000 mark. how should retail investors be playing this move. we have a member of the cnbc digital founder's council. ivory, how are people responding to this near? is it going to take the close to 20,000 to get people's attention

broadly? >> perhaps. i don't pay too much attention to the dow being at 20,000. i think it's more psychological than anything else. i think that level matters. you want to look at your process. i would imagine for most people that would mean that many of the sectors are trading at the top end of their risk range. from a longer term perspective it's more instructive to look at the fact that inflation is accelerating, job growth is slowing at a slower rate which is a positive thing. wage growth is going up. we're seeing and reason to believe we're going to have some growth. i would use that as a means to pick securities that i would, the dow being at 20,000. >> mark, what about you? the best advice after a move like this, is the best advice to have people rebalance their portfolios if they've been in the market? is it time for people to think about getting involved if they haven't been? what do you think? >> for individual investors the game is always about how much risk can you tolerate. after a big move like this, we've seen a huge move just since the election, almost eight

years into a bull market, people really need to look at how much risk they have in their portfolio. stocks have run up. the mistake a lot of individual investors make is when there is a question, they react emotionally. emotion is never a friend to the actual investor. now is a good time to rebalance and look, take inventory of what you own. >> are you guys, ivory, fans of straight up dollar spending? here's how i'm going to put my money to work doing it day after day after day? >> i think you can do a combination of both. for example, we see the manufacturing indexes going up. how is the fed going to respond to that. that might mean banks are something you want to overweight. you might want to overweight revolving around energy. you do have your core holdings but to the extent that the

numbers tell you in the long run the next six months to nine months, the next year, 18 months, then i think you overweight certain sectors. in a growth industry, growth markets, some sectors will do better than others. >> mark, i wonder how you treat the idea of return expectations over the next several years. you have an individual who not only has a particular risk appetite. you have to plug in something for what stocks and bonds and combination can deliver. it seems like right now in both stocks and bonds it's that you're not that great, where do you come down on the idea? what financial markets can give individual investors? >> well, that's one of the reasons why we want to be in stocks but be cautious with stocks. the up side potential isn't all that great at these levels. the markets are fairly or fully valued by a lot of metrics. as i said earlier, we're almost eight years into the run. to expect the kind of returns will be unreasonable. i think you can still make money in a balanced portfolio by adding smart fixed income,

credit product looks good. we think the high yield market parlays more to stocks than bonds is less than to interest rate moves. that's a way a balanced investor can add some. with interest rates poised to rise. the next years don't look as ripe as the next years. >> mark and ivory, thanks for joining us. >> thank you. >> the people's portfolios. toyota was the most recent company in donald trump's twitter cross hairs. the stocks traded lower after president-elect promised a border tax if they built a plant in mexico. one company has figured out a way to help protect your company from the trump tweet risk. the ceo joins us next. -f tswith y v

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welcome back. president-elect trump's tweets have affected stocks. it's already one of the most popular features on the app. joining us is trigger ceo and co-founder rachel mayer. welcome. >> thank you for having me. >> trigger's only been around since what did you say, june? >> we launched this past june for the apple app store. we've within rolling out new triggers ever since. since the election this was the one that people had asked for the most. they knew donald trump's tweets moved markets and we have the infrastructure and ability to trigger on it. >> if i download the trigger app, what happens? do i put in specific tickers or do you have a way of taking any tweet of his and immediately plugging in what stock.

>> one is if he tweets about any single publicly traded stock we'll let you know or if you have a stock in your watch list or broker's account, we'll let you know. >> is this a free app? are you trying to build a business out of it? >> it's free for now. we're focused on building the best product for our customers and growing and turning that into a great business later on. >> the trigger is a notification that this has occurred. >> for donald trump, yes. >> there's not an embedded action if this trigger is done, something happens in my account. >> for some triggers. if the fed raises interest rates, i would want to sell spy. or if the dow hits 20k, buy spy. it's not a fully automatic transaction. there is a double look, so it protects investors. >> you know all about this because you were a trader? >> that's right. >> did you just have a sense of i want to bring this to the masses or was there a need in the market? did you just have the expertise and think, somebody should be doing this? >> somebody should have been

doing this. the thing that i carried most about my trading background is inbe vesting with rules and with discipline and getting access to the data that we had by nature of watching the markets all day long to everyday individual investors and breaking that down into simple if this and that statements that everyone can understand. >> i'm curious because your background, you'll know the answer better than i do, can you -- can the triggers work -- your triggers work fast enough to compete with some algorithms that happen at some high frequency trading platform or some -- is it fast enough or really the algorithms that some individual hedge funds have are way too fast even for the traders? >> yeah, we don't compete with that kind of industry. we're not co-located with the exchange. it's an app that connects with the internet. however, it is fast enough to capture some opportunities and to be able to see the results of triggering on different datasets and entering trades. >> i see you guys here also

partner with a bunch of brokerages, scottrade, ameritrade, all of those. >> yes. >> the other interesting thing, this isn't necessarily that you have to get involved with, but to look at the stock reaction when donald trump has tweeted, i mean, it's been kind not like 1. now watch, that will happen monday. but it's interesting that the appetite is so big for something like that. >> investors want to stay informed and up to date and see what kind of trades they're seeing. and the impact that they're having. more of a way to keep in it touch with what the future president is saying. >> it's a small side point. clearly they don't want to be watching a twitter stream. >> maybe twitter will come after you guys. i don't know anything. it is a recall to tell you

about with chrysler. fiat chrysler is recalling an estimated 86,400 suvs and trucks in the united states. they want to replace certain driver and passenger side airbags. basically because they are equipped with tacata airbag inflaters that have been linked to a defect. it says the inflators in may, following long term exposure to certain climate conditions, may deploy improperly in a crash. this time it is fiat chrysler. 86,400 recalled. stroks at record highs. if you missed the rally, they may have one play could be the ultimate catch-up trade coming up at 5:00 p.m. but first, john is at the electronics show in las vegas.

what are you seeing? >> reporter: virtual reality, augmented reality are big here. this could be available as soon as later this year. it has eyes in the front. i'll tell you more about and it other initiatives when "closing bell q bell" comes right back. '

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the annual consumer electronics show is being unveiled. john ford is there, wearing this crazy darth vader looking headset. you also caught up with qualcomm ceo. >> reporter: first let's talk about intel. intel has these in laptops to recognize objects. it can map a room. it has@other intel chips inside. what is special about this is it allows a higher level virtual reality experience without you having to tether it to a computer. the computer is inside it. this is a prototype unit. the ones that come out later this year will be a little bit prettier than that. but intel is not alone in this. not only is it pretty taxing to

do on the unit itself but you need date centers with computers to feed this information to these units as well. qualcomm is also focused on that. they talk about their snap dragon 835 today i sat down with steve today and here's what he had to say. >> this device will be the flagship device that goes into a lot of flagship phones. would you expect to see them in the first half this year in phones but you're also seeing them in devices like. this an augmented reality based on the 835. >> viewers want to see us put these our faces. so i obliged. i'll here at ces and what it is what you do. >> we wouldn't have expected any less. >> a couple interesting development this is year. one is that it is not just tech companies. we know it is almost more of an auto show. all different kinds of companies who are there.

and the other thing is that the technologies we're talking about are coming back to your phone. we almost take electronics and call at this time consumer show. >> it is spreading all over. it is still all electronic but electronics have been so much of an embedded part of our lives that it is going deeper and deeper. amazon is as well, the smart phones off that. you still see drones flying around and then smartphones, very much at the core of a lot of these experiences. if you're wanting to control a lot of this, you groit an app to your phone even if you're doing some controls by voice. it all ties in. the we're testing the water and

it is ball software. >> what do you think about all the ai in the house? the washers and dryers? >> we have the google product which we use but largely to irritate each in the family. you talk to it so it outspeaks whoever it is. >> i'm shokds. i wouldn't have pegged you as the guy talking around the house. >> it is my wife's product. i think i have to do it. it is really about making stuff more useful. i think the future will be super interesting but maybe those are wall street than in people's day to day lives. >> monday, the ten-year anniversary. it has been a short time but the cycle is kind of played out. >> yes. and no bigger product ever arguably in terms of not just the revenue but the profits and global reach.

>> thank you for joining us. yes, the electronics show in las vegas this week. and then we have the car show coming up. the detroit international auto show. then a little something called the inauguration. i think we're in this bridge period between now and august yes. we get going next week. i think the fact we're near 20,000 is more coincidental than the rally looks like it needs something else. basically reinforcements if it will continue. otherwise, i think you're in a sochbled up. >> do you know what i'm looking at? we have a couple weeks until the inauguration. it will be very interesting how the media sets up donald trump, given pretty positive state of the economy. positive state of the stock market. bond market is in a good way. if i were donald trump, i would be a little nervous about inauguration. >> you want to do it where you

come in and drash stock price. >> it is important to set expectations. and now donald trump is coming in with pretty high expectations. >> that's probably true. that's what we'll be talking about. >> if you were donald trump, you wouldn't be nervous. if you were nervous, you wouldn't be donald trump. "fast money" begins right now. so close yet so far away. it was still an historic day on wall street. the dow coming within a single point of dow 20,000. a record high. it did not close out the record but the s&p 500 and nasa nasdaq did close out at record. we've been near these levels for a few weeks now, waiting for that big 20,000 milestone. why can't we hit and it what should we do as an investor in. >> we did.