today was her last day producing the final hour of the "today" show with kathie lee and hoda whom she dearly loves. >> there she is. >> mack and i got to come out and bring a cake and more champaign than i've probably ever seen in one place. i'm going to be expected to do this every day, bring cake and champaign for joanne lamarca mathisen. >> thank you for watching "power lunch." closing belle starts right now. such fun people. >> my congratulations. what a terrific lady she is. she used to work at cnbc years and years ago. great producer. she's going to do well. >> love her and tyler. welcome to the "closing bell", everybody. >> welcome back. this is kelly evans. she's getting her voice back here at the new york stock exchange. she'll be talking in just a moment. i'm bill griffeth.

we're calling it the trump tower bump. lockheed power shares popping around noon after the ceo met with president-elect trump. i think she went and answered the questions beforehand. we have details. >> and the big banks kicking off earnings this morning. not quite with the bang many expected. more on that. shares still up a little bit in the trading today. plus, we have a first on cnbc with the ceo of wells fargo. >> have a drink there. >> thanks. >> meanwhile, war of words. china state media warning that comments from trump secretary of state designate could put the u.s. at war with china. we're going to tell the market risks of escalates tensions between the u.s. and china coming up. let's start with the comments from lockheed martin ceo right after she met with president-elect trump today. phil lebeau has the story. very different from the last time she met with the president-elect, phil. >> very different, bill. in fact, let's start this by

showing you the change in demeanor on the face of marilyn hughes compared to today which is on the right-hand side of this video you're about to see with her three weeks ago as she walked in to meet donald trump in mar-a-lago. the difference, very clear. she's walking out of mar-a-lago there. she didn't smile. she didn't talk to reporters three weeks ago. the message then was cut the cost of the f-35. they didn't say it then that they would agree to do that. oh, but it's a different tone today after meeting with donald trump. here is marilyn hewson about how they're close to cutting the costs on the f-35. >> we're going to increase our jobs by 1800 jobs. when you think about the supply chain, it's going to be thousands and thousands of jobs. i also had the opportunity to give him some ideas on things we think we can do to continue to drive the costs down on the f-35 program. so it was a great meeting. >> there were the two messages there. they're going to cut the costs of the f-35.

estimated right now at about $110 million. they plan to bring it down to 85 million, originally by 2020. let's see how much lower they can bring it from there if they even give us what those costs are. and the second part of the message that she delivered to the president-elect, they're going to be adding 1800 jobs in the fort worth area and then she said, look, we have thousands of suppliers. those jobs will be rippling out across the country in different localities. the bottom line is you did see the trump bump for shares of lockheed martin. we'll see if they tell us what the number is. we have not yet heard from donald trump by the way. usually at some point several hours or a day or two after one of these meetings takes place there is some type of a tweet. we have not seen one yet from the president-elect. >> phil, the cost of the program is the one issue. the other is what she just announced on jobs. as the ceo becoming more well versed on how to handle these and what kind of comments. both the markets and the president-elect like them to

make. are these new joksz or a reiteration of things we already knew? >> great question. we don't know if they are new jobs. she says they're adding 1800 jobs and that sort of has been similar to what we've seen, not the 1800 jobs, a lot of the ceos when they said, look, we're going to be adding jobs. people said are they new jobs or is this something you committed to a year, two years ago and then you were expanding. the bottom line from the president-elect's standpoint, jobs are being added. one way or another, jobs are being added and that's what they want to see. >> absolutely fascinating. great stuff. game continues. thank you, phil. see you later. >> you bet. also just in the last hour trump was shaking hands outside trump tower with talk show host steve harvey. you might have been wondering about that one. harvey said he was contacted by the trump transition team and that the two of them discussed things that could be done to help inner cities. on his way out he talked about hosting a family feud episode between the trumps and the

obamas or clintons. i think he could host family feud through the trump administration itself. >> he could. will fred frost was as surprised between that meeting between mr. trump and mr. harvey but we also had the first wave of earnings. >> i know a fraction about bank earnings and not television shows. >> let's do that it's been a roller coaster of a ride. as q4 earnings kicked off. jpmorgan beat the estimates. it was led by the investment banks. the chairman and ceo jamie dimon suggested he was as bullish as a month ago and not that positive about market moves since. on trump's appointment he said he is putting real professionals in the field. give them time and they will do the right thing for america. dimon was up beat about what a

corporate tax cut would mean to the economy if delivered. both showed better credit quality, costs still improving and a strong capital position boosting share buy backs in the process. wells fargo did fine operationally although the headline eps missed due to a hedging issue. the sales scandal due to a year ago. things are improving. in terms of existing customers, they're still seeing loan and deposit growth. but they also announced they will be shutting 200 branches this year, possibly the same amount next year. the bottom line for all three banks, revenues should see a major inflection point and pick up into this year thanks to the improved interest rate picture which hasn't even started to speed through to earnings yet. bank share prices were down initially before the open then sharply up and now still holding on to slight gains as we approach the close but those moments in "today" show that the

elevated level of ownership within the sector can pass through a few months ago, guys. >> we see divergent trading behavior today, will. even though they report on the same day, are they in sort of their own idiosyncratic stories here or is this still the kind of environment where we should expect everybody to go up and down in the same fashion? >> i think there's different factors now because the sector is more owned and you're going to be looking rather than broad, multiple expansion across the sector, earnings can be delivered. there's different themes between the investment banks and the retail banks. you saw wells fargo and bank of america slightly more similar. jpmorgan having a better performance on the trading front. it bodes well for the likes of goldman sachs and morgan stanley. different factors at play. the key for 2017 is it's going to be more steady. share price appreciation if earnings are delivered as opposed to a simple multiple expansion that we saw during q4. >> very good.

thank you. i know you're rushing home to binge watch "family feud" now. wells fargo ceo john shrewsberry will join us. >> in the meantime, let's get to the "closing bell" exchange. we have david, jim khan from wells enhancement group is also with us. peter kosta from empire executions and rick santelli is at the cme. david, i'm going to start with you. the last couple of times you've been on we've talked at length about the financials which you have been very high on. what did you hear today? we were all listening very carefully for the guidance and everything. what did you hear today and are you still very high on the financials? >> yes, we are. we liked everything that we heard. it's very important to put today's quarter into perspective. the rate increase from the fed and higher interest rates happened after the election and in december so they really

didn't get close to the numbers. on the conference calls, all of the companies were very upbeat about their outlook. you're seeing loans pick up. you're seeing deposits pick up. they're making more money. expecting an improved margin. we think banks have had a great run. typically for the last eight quarters they haven't done a heck of a lot. we think they're poised to do a lot this year. >> peter, the banks certainly led us in the trump rally, at least until now. it's hard to see how they can kind of sustain or maybe begin anew that kind of momentum. how important are the financials and their ability to move higher for everybody here? >> i think it's going to be hard. you have to look at the pes of these stocks. they're trading around their all-time highs. you have to be very careful about your expectations going forward. like david said, you couldn't have asked for a better report from the banking sector or from this very limited part of the financials sector. they were very upbeat. with the fed poised to raise

rates early this year, i think you're going to continue to see that growth. and it's not going to be easy, but i do think they will continue to earn more and more money. >> yet jim khan the market itself moved sideways. the nasdaq's in positive territory, another record high there. overall markets have been moving sideways for the last five weeks or so by the s&p, dow and other averages as well. what's going to move the market one way or the other in your view from now on? >> well, the problem with u.s. market is the same problem that we have with trees which is that trees don't grow to the sky. if you look at current valuations of u.s. large caps, even more with small caps, they're basically set up for perfect execution. if we need to see the trump administration cut the corporate tax rate, cut the marginal tax rate, reduce the interest margin. things are going to realize. unless that happens for the market to move substantially higher. the one piece of good news is that we're waiting for it

because this entire rally has been driven on what if and what might happen under the trump administration. we haven't seen meaningful revenue growth. so we need to see meaningful revenue growth and that needs to translate into earnings. without meaningful revenue growth i don't see how this market can go much higher. i think wage growth is the first sign that we see that consumers might be able to spend more which is the first positive i've seen for revenue growth in quite a while, actually. that's the one thing to be bullish about. >> it's one reason why they went over with a bit of a dud. the dollar can't grow to the skies, either. >> well, no market can go to the sky, but we're not arguing for the most part whether they can go to the sky or whether the tree can grow to the sky. there's many that are looking to the tree that's starting to grow and say, hey, you know, i don't see this tree. i think there's a lot in the financial sector not only to be happy about as to where it is but i can't imagine it's not going to have more room to grow. listen, we can debate as to what

will pass. there is no denying in the business communities and executives are sensing it and investors are sensing it that the current administration is just going to be more accommodating to business and the toll keepers of business are the financial community. some of those earnings on some of the banks that we've seen, the toll keepers are going to be collecting more tolls. we can debate how many more tolls they're colleging, but unlike the fed, investors have made a leap of faith, not because they've seen something they can touch but because unlike economics, behavior matters to investors and most likely the behavior of politicians taking control after friday is going to be significantly different than the behavior of those in power the last 7 3/4 years. >> i'd argue, that's the problem. you pull forward all the expected growth and then what do you do? >> that raises this exact point that was recently raised. what happens when trump's honeymoon is over writing the

shortest honeymoon on record. they usually enjoy a wave of goodwill that allows them to fly high the first 100 days. donald trump has not yet been sworn in and the honeymoon has already come and gone, jim. is that true for these markets? >> we've given back 14% of stocks. what honeymoon is over in that regard? >> you don't think it's -- >> we've given back 14%. 14%. 15% maybe. right in that area. i don't know, to me that means 85% still pretty good. >> anybody else have a thought on that? >> how do you really respond to that? but i do think, you know, as jim has said, the market has moved way ahead of itself and i think that what we're probably going to see, and i've been saying this for the last month, that we'll probably see some sort of pull back once we get into the earnings season. i'm guessing after trump's sworn in next week you'll probably see

a lot more of that. i think people -- the expectations are a little too high right now in this stage. i don't think, you know, in july we'll be talking about this. right now in january i do think you have to be very cautious overall. i'm not saying -- i still think the financials, a lot of room on the up side. as far as the overall market, i definitely think there's probably going to be some softening coming up in the next couple of weeks. >> we have to go, guys. thank you very much. have a good long weekend. >> thank you. >> appreciate it very much. we have about 45 minutes until the bell. dow's down 22 points in the moment. s&p is hanging on to a gain though of almost 30. vix still hovering. nasdaq, as you mentioned, is up nearly half a percent to record territory? >> yeah. you missed yesterday's selloff. that was its first down day of the year in the new year. >> coming right back. >> it will be the second consecutive gain, weekly gain for the nasdaq here for this new

year. wells fargo cfo john sh shrewsberry will be talking to us about their earnings and the work to try to bring back trust to their company. also ahead, a chinese state-run tabloid said the u.s. would need to, quote, wage war to block their access to the islands in the south china sea. what could the escalating tensions mean to your money. you're watching cnbc, first in business worldwide. ♪

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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. welcome back. the dow is trying to join the others in positive territory. down 14 points. still shy of the 20,000 mark. >> 18 minutes in, first time we've mentioned it today. everybody, we're not obsessing over it. there you are. >> that's your barometer for the kind of environment. the s&p is up a little bit. the nasdaq and russell having a pretty nice day today. how about gamestop, it's falling on disappointing holiday sales. same store sales for the nine-week holiday shopping period fell 18.7%.

gamestop blaming heavy discounting over the thanksgiving weekend and weak demand for call of duty, infinite warfare. neutral to outperform cutting its price target from 23 to $27. gamestop shares are down a little bit less than 8%. >> meanwhile, nintendo is lower as well. some analysts say they overpriced their new gaming console called the switch at just under $300. they say that price will make it hard to break up the sony play station 4 and microsoft xbox one duopoly in internet gaming. which i didn't know it existed. it hit stores on march 3rd. like so many industries that have been subject to the whims of technology, retail, gaming is the same way. so many kids are playing on their mobile devices, downloading -- you know, so many different ways to play a game that the consoles -- >> if you're nintendo, it's one

thing. gamestop is a whole other level. they try to have people bring in refurbished games. >> i'm not saying they're going the way of blockbuster. it's totally difficult. >> totally. they aren't getting involved. they're not confident the cash flows will be there even though the valuations of some of these retail companies have gotten cheap. 40 minutes to go. dow still down 13 points. dollar is weaker today as well as we were just discussing. up next, wells fargo cfo john shrewsberry will break down how the bank's latest scandal affects its latest earnings report. >> too much government paperwork and constant regulation forced his restaurant to close. we'll get the view from the front lines coming up.

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welcome back on this mixed day. netflix is trading higher by more than 6%. deutsch bank upgraded the stock to hold from sell. there's a vote of confidence. video streaming giants rising subscriber trajectory and lower tax rate are what brought this affirmation on. they expect netflix to beat street estimates by report earnings next week. deutsch raised netflix price target to $110 from 92. >> always such a big mover on earnings, too.

that's true. >> don't understand that. 50% over the target. shares of wells fargo are higher today. the company just posted its fifth straight drop in quarterly profits as it works to recover from the fake accounts scandal. john shrewsberry joins us now. welcome john. >> welcome back, john. >> thanks for having me. nice to be here. >> so, when you talk to investors about the fake account scandal, are you giving them the sense that it's all now in the past or are there further revelations about your cost exposure to it that are yet to come? >> sure. well, we're telling them what we're doing about it today, which is communicating with our customers, working with regulators and then working with our board helpings to get to the very bottom of it. we're communicating with current economic impact is. we've been having monthly calls with investors to help them understand what the trends are with deposits, with loans, with account openings, et cetera.

we've been talking about expenses. what we're paying for third parties as we've engaged folks to help us get through it. the accounting outcomes -- >> i was reading -- >> go ahead. >> sorry, go ahead. >> the accounting impact in the quarter, in the quarter we generated $5.3 billion worth of net income. it was a strong quarter from our overall performance. it isn't really impacting the accounting currently in the quarter. right now what we're talking about is what will growth rates be six months out, a year out, et cetera if we're not opening new accounts at the same pace that we used to. and that's what we're talking with investors about and trying to help them as we do the work to repair our relationship with customers. >> speaking of which, i saw these two numbers there. we're showing one right now. the number of new checking accounts opened in the fourth quarter was down 40% year over year. your new credit card accounts down 43 perfection percent in the fourth quarter year over year. this -- is this the -- i mean, it's going to be tough comps, but is this the kind of growth we expect now when you don't

have the sales incentives? you've changed the compensation structure for your employees. now it's more customer based than sales oriented. describe for us what your outlook is. >> the numbers you're referring to. >> a few months ago when this became a news story, we've told the people in our branches to stop the approach that we have previously taken that was in part led by sales, gloebls, and we're evolving to a more customer service oriented model. that new program as we've said is rolling out right now in the first quarter. so it's going to take another quarter or two before people really understand it, before they're well trained and before we see what impact that has on dealing with new customers who are trying to -- who are

shopping for a new bank or looking for a new banking product. i wouldn't expect a pivot right now. the rate of growth may still be a little bit lower but, again, these are rates of growth off of huge bases of customers. we have 20 million -- more than 20 million primary checking customers and we are still growing. >> john, i don't know if the experience i had recently where there was a young woman with a tablet at the entrance sort of greeting the customer and saying how can i help you is indicative of this, but explain, you know, especially to investors listening now, how to justify that -- i don't know what term you would use, return on investment. if these people aren't generating sales and top line growth immediately, do you expect that they ultimately will? is this just about kind of customer retention? >> sure. so right now it's about customer service. most of what happens in the branch is about customer service, not just about -- about new account growth or new product growth with existing customers. so the people who are in the branches today are focused on

the experience that our customers are having when they're there to do their regular banking business and like everything that we spend money on and the introduction of technology into it, you mentioned the tablet that's being used, there's some that's happening self-serve, some happening assisted with technology and some that's happening just with people but that mix will always changes. that analysis on the return on investment will be continuous. but there is an expectation that with a new program in place and complete training that our people want to serve their customers very much. customers have real needs. they come in and they're looking for deposit accounts, they're looking for credit products, they're looking for home loan, auto loan, looking for credit card. all of those things are still legit and we will be satisfying those needs. >> very quickly, i also -- >> thank you for your business, kelly. i'm glad you're with our branch. >> get a credit card. >> i have a personal anecdote as well. my wife and i have a mortgage with you guys on a house that we

own, and be a couple months ago we got a check in the mail from wells fargo for $100. in it there was a letter that said you had done an audit and you discovered when we refinanced that mortgage three years ago you had overcharged somehow by $100 and you were returning that money. it seemed to me at the time you're scrubbing the books right now. you're going back however far you're going to make sure all is are dotted and ts are crossed. am i wrong about that? >> listen, i think that a continuous look back at all of our processes and making sure that we're -- that we're correcting things that we find is an important thing to do. so thank you for your business also. >> just before we let you go, biggest bright spot you see right now for your company and the biggest challenge you have right now. >> sure. i think that the expectation for rates, you guys have been talking about it for a while on the show today, that's obviously a tail wind for banks. higher short and long-term rate

environment feels much more probable today because of the policy proposals that are being bandied about with the new administration. so i haven't described that as a tail wind coming. it's not here yet. it is somewhat but it's certainly coming. >> comes ultimately from growth, too, right, john? that's what's so interesting, everybody is coming in and out of trump tower. i don't know if you guys have been there yourselves, but the message is so focused on how to increase gdp growth. it's a really tough thing in this environment. it's ultimately what's going to move interest rates around. do you see any reason why growth will actually pick up in the near term? >> the combination of growth and inflation given where we are in the labor market overall. things are tight. i think more business friendly proposals that our clients do better, consumer clients, we have better jobs outlook and our business clients with capital formation, getting things done. all of that is good for our

business and we consider that to be a tail wind. >> by the way, i mean -- >> sounds like you guys are having fun. >> well, it's a long story it's a tradition on a friday before a three-day weekend. i don't want to go into it because time with you is valuable. have you, anybody at wells fargo spoken to anybody in the trump transition? it seems that companies want to talk to them to enforce the fact that they're either creating jobs or that they're on board with the policies that the trump administration will have when they take office next week. >> so we've -- we have coordinated with the trade groups that we're a part of and have given feedback on the ideas we have for how the policy proposals could do the most good in the business community. we're happy to provide that feedback. >> all right. got to go at this point, john. thank you so much. appreciate it as always. >> great. thank you. thanks for having me. >> john shrewsberry, chief financial officer of wells fargo. be sure to catch our interview with brian moynihan on

tuesday morning on "squawk box" and then j.p. morgan chase -- chief jamie diamond will be on squawk on the streets. they'll be live in davos, switzerland, where the temperature will be hovering around zero grease fahrenheit. >> it's the coldest thing. >> it is friday before a three-day weekend, isn't it? you can hear it in the air. time now for cnbc news update from sue herera. >> i could never tell, bill. yeah. here's what's happening this hour, everybody. the house debating a budget which will begin the process of repealing obamacare. a step already taken by the senate. house speaker paul ryan promising that no one will have the rug pulled out from under them if the gop repeals the health care act. >> the law is collapsing. the insurers are pulling out. people can't afford it. the deductibles are so high it doesn't even feel like you have insurance in the first place. this is a rescue mission. this is a necessary move.

>> flu cases continue to climb across the united states. the cdc reporting that 21 states have widespread flu activity, mostly in new england and the mid-atlantic and northwest. more than 15,000 cases of the flu have been diagnosed this season. for the first time lady liberty is being depicted as african-american on a coin. it comes as the u.s. mint celebrates its 225th anniversary. the head side shows lady liberty wearing a crown of stars. the tail side shows a soaring eagle. little lard to see from that. trust me. the coin's value is 100 bucks. that's the news update, bill and kelly. >> $100 coin. that's amazing. >> it is. >> sue, thank you very much. have a good day. >> you, too. here we go. 3, 2, 1. there you are.

the wahoo, we made it on the air. let's go to eamon javers. >> they may be whooping it up on the house floor because they got the votes they needed a moment ago towards repealing obamacare. 227-198. no democrats voted for this but republicans had the votes they needed. that means they'll be able to pass an obamacare repeal later on in the year with a simple majority. that lowers the bar for them strategically. that makes it much more easy to do this. there is some concern amongst republicans of exactly how they're going to process this. are they going to do a repeal and replace as donald trump has suggested or a repeal and then some point later replace obamacare with a different plan. for right now a win for republicans in the house of representatives, they had 227 to 198 to pass the budget resolution, bill. >> eamon, thanks very much. see you later. boy, it's later than it's

ever been. we have 26 minutes left in the trading session here. the dow is down 9 points but, again, it's the nasdaq that we're watching as well because it is up 22 and back in record territory. we have a leading trader joining us to tell us what he's watching to the close on this final session of the week. also ahead we'll discuss how a possible rise in tensions between the trump administration and china could affect your investment. stay with us.

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welcome back. u.s./china tensions are rising. rex tillerson spoke out yesterday on the south china sea. >> the south china sea in many respects, building islands and putting military assets on those islands is akin to russia's taking of crimea. we are going to have to send china a clear signal that first the island building stops and second your access is also not going to be allowed. >> well, in response chinese run new hampshire "global times" has run an editorial saying if the u.s. continues to shake u.s./china ties, then they

better prepare for a military clash, end quote. >> joining us is john rutledge and leland miller from china beige book international joining us as well. i think you both agree on this issue. the source of that editorial there. john rutledge, you feel like it's just saber-rattling for the benefit of the chinese citizens more than anything, yes? >> well, i wouldn't call it saber-rattling. domestic politics, they are needing to look tough inside china. the ability. >> we're sharing it in the past couple of weeks. the reality is this is not rex tillerson going out on a ledge.

this i think reflects the general views of the incoming trump team and the last few years have been far too con s conciliato conciliatory. there's a very strong consensus that something needs to be done to stop this and a change of direction and tone in what's been happening. it doesn't mean that the strategy has been completely thought out but it does mean there is a definite change coming with the incoming trump administration. >> leland, in this chess match, what's the next move and who makes it, do you think? >> this is where it gets tricky. i think depending what happens in the next couple of weeks when president-elect trump becomes president trump, if he starts talking about currency manipulation, then the chinese might have a reason to escalate in the south china sea. if not, then i think it becomes a waiting game to see what president trump's strategy actually is. there's been a lot of talk about a ramped up strategy. does that mean additional sail throughs which are not that controversial or does it mean floating military bases, which

are also being talked about, which really would be an escalation. so a lot of it has to depend on what the incoming strategy will be for the president. >> john, does any escalation mean a selloff in stocks broadly? >> well, i think it certainly would show up around the rim in the asean countries. there's a competition going on for traditional u.s. allies. you have all the way, the string of islands that the chinese refer to as the dashed line. japan, taiwan, philippines, even vietnam on the mainland. those are all places where china is spending money to gain influence. the defection of duterte in the philippines was an event. it shut down the discussion within asean of the islands issue as well. so i think -- i think it could be very difficult for that part of the world for the merchant stock. >> something we're watching very

carefully. got to go at this point. john resuutledge, good to see y heading to the close, 19 minutes left in the trading session. the dow has turned 'tipositive. >> still shy of 19,900. that's where we stand. >> up next, get this. becoming a landlord could be easier than you think. thanks to a few companies that do all the work for you. all you have to do is provide the money. details on that coming up. and later, a new survey showing millennials are prone to trading off president-elect trump's tweets. we'll speak to two financial advisors on whether that is a good idea. imnothat tit

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24-year-old software developer tyler laprade has bought three homes and is looking to acquire another four this year. he's into stocks but he wanted to diversify. >> the market is good sometimes, it's bad sometimes but rental income is consistent each month. you get the same amount from the tenant. >> there's always risk. the tenant doesn't always pay, the house may need repairs or

the home value drops. if you keep it long term and you want the rental income, the home value doesn't matter. if you want to learn more about this, we have plenty more on cnbc.com. this sounds too good to be true. if i know anybody who can find the loopholes or the problems, it's you. what's the risk here? come on. >> reporter: look, the risk is that maybe you overstep your bounds. it's so easy that you buy too many properties and you get in too heavy or maybe you don't do enough research on the markets. these companies give you a lot of research, they give you inspection reports on the homes. the big ones seem up and up. home union is looking into going public, but there are a lot of other companies out there. some local ones that, you know, be careful choosing your company. that's all i'm saying. >> diana, thank you. more people thinking i'm not sure about the market right now. how about that 24-year-old. he's way ahead of the game. i wanted to diversify from my

investments. >> looks like he's done his property. >> 12 minutes to go. dow is up 11, s&p up 6 points now. russell is up 10 and the nasdaq in record territory. gains of half a percent to nearly 1 percent for those indexes. >> a lot of people responding to the whoop, whoop. we have another tradition for a friday. that means independent investment consultant david darst is with us with the acronym for the week. mr. darst coming up next. yoeafot oupe tho my

just under ten minutes left in the trading session to go with the dow positive. turning virtually neutral. this is probably the reason we've turned positive on the industrial average. the market on close orders according to art cashin had an imbalance to $9 billion. >> rebalancing. >> 200 million he did say was rebalancing. >> sizeable amount. >> now we're headed negative again. it's that kind of day. joining us on the floor of the new york stock exchange is mr. david darst. how are you? >> bill, regardless of your political persuasion, i think

all-americans want to congratulate joe biden on winning the presidential medal of freedom. good man and i know his son bo was shining down from heaven looking at his dad. >> you know he was thinking about him when he got that. >> that's right. exactly. well, we have been in a sort of back and forth pausing mode the last -- since the beginning of the year, actually. i think, number one, p, pause, is politics reasserting themselves. politics meaning press conferences. it means pointed questions at hearings, okay? it means partisanship and that has taken a little of the air out of the foray that came from november 8th until december 31st. a is asia. and we have china needs to make their currency weaker but that makes more people take their money out of china, which they're trying to halt that. so there's a little bit of a hobson's choice there. he had a horse in his barn, you could take the horse or leave it. it's a little bit of a difficult situation they're in.

the u is undulating. oil prices up, down, up, down and undulating interest rates. latin word for wave is unda. abundant, redundant, undulate. >> paus. s is selectivity in sector, and i think the banks and energy are places that you can stay with. they are taking a pause. we said for weeks if they do slack off a little bit, then it's time. i saw them strong today, the banks, but i think that's an area you can stay with. the banks and the oil drillers, especially the oil service companies because i think this fracking thing is going to pick up even more. >> even if the oil price goes down? >> kelly, i think there's a whole drive america first, american independence which is a theme of the incoming administration and that's going to lead to more. they're able to get the same youtd put with 30% less people, you've seen that.

the e is earnings, two kinds of earnings, average hourly earnings for the average individual working and doing the real work in the economy, and that was up .4 of a percent and 2.9% year over year. >> very strong. >> that's a very good thing. and the corporate earnings, if you get these tax reductions, not huge tax reductions, but if you go from 35 to 20, you're going to have a 40% increase in earnings and that would be annual elixir and a ton anything and some moxie to the markets. >> lots of xs in there. >> that's right. >> thank you, david. >> thank you so much. >> good stuff. always look forward to that. >> have a great long weekend. we will take a break. the dow down 7 points. we have a closing countdown to close this week out. >> after the bell we have a small business owner who shut down his restaurant because of what he calls too much government bureaucracy. we'll discuss the hopes from the trump administration. you're watching cnbc, first in business worldwide. ocnksome

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16 ra e,e,des cocoerit le 2 1/2 minutes left in the trading session as we close things out for this week. give the due to the nasdaq as we have. second week in a row now that we've had a gain for the nasdaq back in record territory again. technology leading the way there as the post election rally has

stalled out. so we're going out with a gain for the day and for the week and that's what it looked like for the nasdaq. the dow itself, it seems like dow 20,000 is kryptonite right now. we came very close again on wednesday until the trump news conference and then when he said what he did about the pharmaceutical industry, down went the market and interestingly, the best and worst performing stocks within the dow this week both pharmaceuticals. merck was the best performer because of the fda approval of that one drug, the cancer drug that they're going to use in concert with chemotherapy and merck has not looked back. it's continued to go higher this week while pfizer was the laggard for the dow this week. pharmaceuticals at the top and at the bottom. the dollar index, still a lot of volatility. we'll see it continue higher but not this week. it fell at the same time the rest of the market did during the trump news conference and oil down as well this week. its first weekly loss in five

weeks minus signs there but still, bob pasani, appreciably above $50 a barrel there. >> this i came in for. this i gave up my day off for. >> that's right. you were going to take the day off. >> we were going to hit dow 20,000. yes, we're going to hit today, jamie dimon is going to speak very positively about the state of the economy. that's going to finally boost the bank stocks that have been laggard. >> isn't that right? >> all the bank earnings. >> but it didn't light a fire on the rest of the market. >> wrong on everything else. that's why you do not make predictions on the stock market. they're laughing at me. thanks for pointing that out. here's the problem. we still aren't getting any boost from any of the big industrial names. ge doesn't help us, boeing, united technologies doesn't help us. other stocks. modest boost, chevron finally ability on the up side. walmart's been a stinker all week. nothing. just slowly descending all week. no other parts of the market. you mentioned the pharmaceuticals. there's nothing else moving in

that little tiny bubble we got from jpmorgan and goldman. not enough to do it. i am apoplectic. i really thought we'd do it. >> take monday off, would you? there you go. that's it for today. our friends and colleagues on "fast money" celebrating their tenth anniversary ringing the closing bell at the nasdaq market site today. we certainly wish them happy anniversary and a very happy second ten years on that great program. stay tuned now for the second hour of the closing bell with kelly evans and company. have a good weekend, kel. thank you, bill. welcome to the "closing bell." congratulations to "fast money" ringing the nasdaq closing bell to celebrate their tenth anniversary of being on air. did we give them a record high close. 5563 is what we needed in order

for that to be a new high today. we'll see if we got above that level. as the other averages, the dow dropping about 5 points on the session. there's the nasdaq, 5574. so we popped on the close. it was about 11 points higher than it needed to be. there is a record high again for the nasdaq composite. the russell 2000, 1371. that's a gain of about .8 of a percent today. the s&p 500, that was lagging. it was up 2 .of a percent up to 2274. that's three points shy of its record closed. the dow the under performer. in fact, it couldn't stay positive on the bell. it slipped negative by four points to 19,885. kryptonite as bill said it that 20,000 level appears to be. coming up, many millennials are making trades on trump's tweets. is that a smart move? we'll discuss that ahead on the "closing bell." in the meantime, michael santolli is with us for the hour so, is evan newmark and peter is

here to kick things off with us along with casandra torian. mike, i mean, look, you go back to the data this morning. bank earnings are one thing. we'll get to that. retail sales, the control group, kind of eh. the ppi, o being. it was all right, but these aren't the kind of things that are going to send that surprise index up, that are going to keep everybody excited. i'm wondering if you're starting to see the rollover. >> the market got up and over the last month it's been going sideways. it's been hard to rattle and impress. all of those things that you rattled off, it's pretty much everyone's base case. the economy looks better. all of the optimism whether it's ceo. >> farmer. >> you want to go down the list. so i do think that's one of the issues. also, heading into next week. i just think there's enough swing factors out there that you wouldn't necessarily want to get all that aggressive, right? you had the inauguration.

what kind of tone will be struck? you have davos. you have a lot of international voices and more mechanical levels. january operations expectations have been a negative in the last decade plus. all of those things you have a market that's stuck. >> president xi is going to be in davos, you heard rex tillerson's testimony there. talking about efforts we might have to take in the south china sea. it's amazing the markets aren't more rattled by that. >> as far as china's concerned, i would say that's mostly downsizing. it's hard to think all of a sudden things are going to be so great with china it will be a mini boom in global or pan-asian trade. >> that's been the only growth in the world for the last ten years. >> i think actually the last few weeks are actually a good time for investors to sit back and to kind of look over the next year, couple of years and go, what do i think is going to happen? i think, you know -- >> they should do that? >> i think there are certain -- you could probably say with some degree of certainty, you know what, retail, probably not going

to be a lot of growth in department stores. there are certain things that you can say with safety. >> yeah. >> about what's happening structurally underlying that all. i think for a lot of investors the most important point the last few years has been very tough to trade in and out of this market. the number of times that a market's gone down significantly, people either missed it, didn't miss it. >> because it's been so steep both ways. not only sharp selloffs, incredibly rapid rebounds. by the way, i'm thinking about the dimon bottom going back to last february when the world looked much different than right now. he's made 16 million in paper profits. >> that was five days or maybe a little more. maybe a week or two. >> exactly. >> for him. >> the point for investors is, you know what, if you can invest, invest cost average. do it over periods of time. if you're trying to kind of come in and buy the bottom that nobody else is buying, good luck. it will be tough. >> peter, what do you think here? evan was talking about kind of the lay of the land. we had the banks this morning. a lot of people looking for

higher rates, a lot of different levers to help them. appears like a lot of that is priced in now. where do we go next? >> i think now that we're getting close to the inauguration and reality of the trump administration, i think it's very important for investors to start deepening their analysis of what might actually happen particularly on tax reform. a lot of the enthusiasm was, oh, we're going to see a big cut in corporate tax rate which is a great thing. people are beginning to realize that it's not a free lunch and that we're going to have some offsets. i think anybody who hasn't learned about the border adjustment tax should start learning about it because it is a potential offset if the dollar doesn't rally to an extraordinary extent. that's what we have to start paying attention to. if it was just cutting taxes and with no offsets, that would be something to be excited about. i think we should start, again, deepening our analysis. with respect to monetary policy, it's amazing that the fed will raise interest rates two to three times this year and the market is so nonchalant --

>> we're not even talking about it. >> some of the best rallies we had on the days when the fed was extraordinarily dovish. >> now they're doing precisely the opposite. it's almost a non-event. here is wells fargo cfo's john shrewsberry. >> higher short and long-term rate environment feels much more probable today because of the policy proposals that are being bandied about with the new administration. so i would describe that as a tail wind coming. >> casandra, i see you wouldn't necessarily be a buyer, an owner of wells fargo here? >> well, we'd be a buyer of other bank stocks but not wells fargo. i think they're really in the penalty box for quite a while. give them what damage they've done to their reputation and that's just not a name that we would -- we would highlight to own or even -- even hold unless

you want to hold it in dlas might be a buyout coming at some point. there's so many better opportunities out there in that space. >> and what about in the markets broadly, casandra? because it looks like the nasdaq lately wants to be the top dog and kind of take over that leadership space. do you think there's room for that to grow? >> oh, absolutely. we think this market has -- actually, the positive is is that we have traded sideways for a while and of course technology is going to continue to be a market leader, but we also think this is a thinking person's market. there are so many other nuances to what we think the trump administration is going to lay out as part of their broad policies and if you really examine all of those, you're going to find some new ways to invest. like look at his choice for dr. ben carson to come in as a hud secretary. i think that was very smart because these are probably going to be some drug testing involved in order for people to continue to get all of these social

programs. if that happens, that means probably there's some companies like thermo fisher scientific that could profit off of that. >> go ahead. >> no, i really think that there's nuances people aren't looking at. yes, we can all say amazon is a great company and of course we've owned it for years, and it will keep going up, but strategically there are other ways to profit from that, even in retail. we think costco is a perfect example of that. >> okay. >> they started to get into brick and mortar on amazon, and to us costco could be a heck of an acquisition for them. >> i'm still -- i love the thinking through the way that carson's appointment could have an impact on thermofisher. >> i'm not a big fan of that whole line of thinking. that line of thinking would have you buying stocks every time trump tweeted something or some nuance. >> that's not the same. >> if you believe that there are

people out there that can pick and choose -- that can pick and choose individual stocks within individual sectors, individual pieces of public policy or legislation, good luck. i've been there. that is not the way the market will trade. >> casandra, was this a knee-jerk reaction? >> i would totally disagree. >> was there a much deeper dive on thermo? >> oh, no. first of all, it's an incredible company and even without that, you know, they have a margin of close to 50%, and the fact remains that i totally disagree with that. that is not a knee-jerk reaction. i don't know about you, but every time there's a new administration we already have our buy lists ready to go based on what they've laid out as their platforms and we're going to be pro active for our clients and own them from the beginning. >> right. >> i don't really care what the market does on a daily or weekly basis, i'm there over the long term. that's what i do as a stock picker and that's why my clients

have done very well. >> peter, there are plenty of people wish they were in the market after donald trump's victory election night, didn't kind of wait on the sidelines watching this whole thing run up. >> right. because we're going to see a business friendly administration for the first time in eight years, and that obviously is the reason for it. but as i said earlier, it's going to be a lot deeper than, okay, look, just cut taxes and cut regulation and everything is going to be great because, again, there's no free lunch. ideally cutting taxes and cutting spending is the scenario that you want. we believe that the monetary fantasy land that we've been living in for the past seven years we can somehow just whistle by that and everything will be fine. so i think that -- i understand the rally, but i think that people have to start deepening their analysis as we get further into this administration in 2017 and be respectful what the fed is going to do and long-term

interest rates will do. >> thank you for joining us. now president-elect trump has moved stocks with a single tweet, of course. a new survey finds a majority of millennials with at least $10,000 in an online brokerage account are trading these tweets. aren't you pleased to hear that? we'll discuss whether that's a potentially dangerous investing strategy plus lockheed's ceo meeting with trump for a second time over the f-35 jet and the outcome. we'll have the details. you're watching cnbc, first in business worldwide. be veer gy io

the ceo met with president-elect trump. they're up to 1%. let's get to phil lebeau with the details of this meeting. >> it will be interesting to see if there is another meeting after this. marilyn huson met donald trump where he wants her to meet him, with is creating jobs and bringing down the costs of the f-35. here's what she had to say about the meeting after she walked out of trump tower elevators. >> i had a great meeting with the president-elect. it was outstanding. i had an opportunity to talk to

him about the f-35 program. i certainly share his views that we need to get the best capability to our men and women in uniform and we need to get it the lowest possible price. i'm glad i had an opportunity to tell him that we are close to a de deal. >> here is the pledge, 1800 jobs in the fort worth area. how much lower it goes from there remains to be seen. with these contracts, guys, there's a lot of r&d advance costs that go in there to

figuring it out. she did not have a smile on our face. was clear at the time that lockheed martin had to go back to the drawing board in terms of f-35 costs. clearly today she has said what the president-elect has claimed he wanted for some time. >> i don't know, phil, if you'll stay with us. i was surprised he did mention it and so early on in his press conference. >> i think he focuses in on the discrete situations and declare a victory. this is not something i think he can do. he meets with his largest

customer. >> did he get that today? >> you brought the costs down more than it would have. >> thank you, phil. what do you think? whatever happened behind the closed doors, what do you think? >> we understand. we have to take place of these defense programs. this plane costs x and we're going to bring it down x amount.

how much will the -- this is how much money for lockheed martin. >> trump can run around and go, they came and kissed my ring. lockheed. you can do it. the question is at what point. to what point will it be counter productive. people go, geez, it's made in the u.s. this will become counter productive. >> phil, thanks for joining us.

>> phil lebeau with the latest on the lockheed trump standoff. >> that's what a huge group of millennials will be doing. he's being bullish between the market and the economy. apple is reportedly the latest tech company to look into augmented realities. ed [ ep whsiwereadn

. will come back. 60% of them are taking a new trade off of a trump tweet. ryan payne from payne capital management. ryan, does this strike you as a horribly bad thing to be trading off trump tweets? >> no, i think it's kind of the entree for millennials to get invested. anecdotally most of them are sitting with cash froe. >> it's like a gateway drug.

nchs i think it's great they're starting to invest. trading off of tweets is not a good idea fundamentally. there's no basis for the tweets. you're picking companies based on what he's saying. if you're invested in the tweets and trading off of it, not only is it short term, it will be very unpredictable like his personality. for us we like to focus on what donald trump -- not what he says, but what he does that will help us dictate our investment strategy. >> we focus on fundamentals of companies and the sectors they like. >> maybe this is one way to get in the habit of investing. >> right. >> there's nothing that says you can't get engaged initially and

do it the right way. should they be trading off any headline let alone a president-elect's tweet. doesn't have to be the way it goes. >> that's not all of their money. >> we don't know what it is. people have etrade first of all. it's a subset. >> that will be a good way for them to get an idea but then they should be able to do their own research on the back end and not just take what donald trump tweets to buy and sell. that's not a prudent way to invest. >> i am hard-pressed to think that this is where all their money is going. i think from all the millennials that come into our office that are getting serious about putting cash to work, they're moving out of their parents' basement, starting to get married, starting to buy homes. starting to think about all of these things. the fact that they're doing that is huge. >> i was going to say, evan, in a way this could be very savvy. if you were to assume that there was -- what they're actually doing is buying a company he tweets negatively about because all of a sudden you can get it 5% cheaper, not horrible. should we assume they're making -- >> you're given a huge --

>> my segment -- >> you have to make sure you're doing the proper research. that's what our company does. we like certain sectors. if donald trump is going to bash it for what we feel like is no good reason and the stock pulls back, we'll absolutely buy some. but i think for an average millennial, if you're going out and buying and selling based on tweets, that's not going to work out very well in the long run. >> you, kelly, are not an average millennial. >> i think i am. >> is there such a thing as the millennial mindset? we're generalizing. i would say millennials in general, i'm going to make a generalization, have a shorter time span mindset than i think people of my generation -- >> i totally disagree with that. >> one word to describe them is conservative. >> yeah. we have a lot of clients that are baby boomers, totally, more conservative. >> the oldest millennials are 36 right now. >> exactly. >> it's not as if we are talking

about people that are just starting. >> i totally agree. i think the younger ones, too, but conservatism overall. that's why i agree with what you're saying. if this sparks people's interests in the stock market, which is an area they've stayed away from. the portrayal in hollywood, on tv, the way it's written about in most popular magazines is very negative. if it gets people interested or involved in some way, it might not be the worst way. >> i agree, kelly. this is the beginning of just a huge bull market with millennials. >> let's go to the tsa. don't buy or sell anything on a trump tweet. thank you both for joining us. >> thank you. >> francine and ryan, the house taking its first step towards repealing obamacare which could be a tax cut windfall for richer investors. up next we'll look at the impact you could have on the market if they invest that back into stocks. small business owners for president-elect trump will help ease burden from regulations.

we'll hear from somebody whose parents had to close their restaurant because of massive regulatory costs. stay with us. gh f m ol! y aetenir

welcome back. s&p 500 up three points shy of its high. the dow bucks the trend dropping five to 19885. and it's time now for a cnbc news update with sue herera. sue? >> hi, kelly. here's what's happening at this hour. the justice department says the chicago police department has violated the constitutional rights of residents for years while permitting racial bias against blacks. this after a year-long investigation into the department. >> the department of justice has concluded that there is reasonable cause to believe that the chicago police department engages in a pattern or practice of use of excessive force in violation of the fourth amendment to the constitution. >> u.s. ambassador to the united nations samantha power holding her last news conference at the united nations today. she offered advice to the incoming trump administration saying it would be wise for them

to preserve the iranian nuclear deal. an icahn anything athlete bo jackson telling "usa today" that with everything he now knows about the long term injuries he knows without suffering football he would have never played the game. he says football has gotten so violent he would not want his children playing the game either. that is the news update, kelly. back to you. have a great long weekend. >> thank you, sue. you, too. i think the nfl has a big problem on its hands. mike, you talked about this. how many young parents want them to play football. >> certain parents increasingly won't let them play. boh jackson had options, he played professional basketball. >> baseball. >> it includes the first steps to repealing obamacare. here's what house speaker paul ryan said on the floor. >> we have to step in before things get worse. this is nothing short of a rescue mission by taking this step today, we're doing what is

right. we are stepping in and stopping the collapse from doing more harm to the working families of america. >> now at trump tower today the president-elect told reporters that repeal and replace is, quote, going great. he had steve harvey with him. this all coming after he tweeted this morning that the unaffordable care act will soon be history. for more on the market reaction if obamacare is repealed let's bring in dan clifton who is partner and head of policy research. dan, you thinking through sort of the market fektsds here, winners and losers? >> yeah, absolutely. kelly, i would say this is the first of a very complicated step that's going to take several months and when obamacare passed it looked like it was going to fail often multiple occasions before it ultimately passed. we expect this to be a volatile process. some of the stocks that will be negatively impacted by this have already priced in around the elections that we talked about today up through the elections,

hospitals, medicaid hmos, but now you're going to actually start seeing not only the idea of repeal but what does replace look like? the health insurers are probably going to be positioning themselves to benefit from whatever that replace plan is going to look like. we think there is going to be both winners and losers as this process plays out over the next two months. >> dan, what happens and how likely is it that they get rid of the lines around the state, so to speak, and what would the impact be then? >> i'm sorry. i missed that. the lines around states? >> what would happen if they allow states to sell insurance across state borders. >> excellent idea here. so, kelly, let me give you an example. we're in the new york market as a new york company. if we were able to purchase health care in another state, our rates could be lower. i caution you it takes 60 votes to allow insurance to be purchased across state lines. it's unsure if they're going to cooperate. they won't cooperate on repeal. they may not cooperate on

replace. if you go into the reconciliation process for the replace plan, then you're going to be limited to doing maybe a tax credit for people to purchase health insurance as well as expanding health savings accounts. you'll be limited depending on how much the democrats want to cooperate. >> dan, just to that point, is there a possibility that whatever is called replace in reality sort of leaves a fair number of people without coverage? i mean, i think that's for a lot of the industry, that's the key is a matter of exactly how many customers do we have covered. that was one of the benefits of the industry of obamacare. is there a chance that there's a half measure that people can follow less. >> mike, you just nailed the key issue. the democrats were focused on coverage. we have 10 million people on the exchanges, 10 million people through medicaid expansion. that's 20 million new lives. the republicans are focused on costs and you can hear that with speaker ryan. they are trying to get costs squeezed out of the system and so it's likely that you're going to have fewer covered lives

under the republican plan. maybe instead of 20 million you have 14 million. at the same time you're moving to this kind of consumer driven health care system under the republican plan and that helps keep costs down. so it's a different goal of republicans than with the democrats achieved and that's why you see pressure in some of the service-based health care companies which were dependent on the number of lives covered. >> dan, what about pharma here and the price of drugs are one of the first things the president mentioned in the news conference the other day. >> kelly, we had a very important vote that extended on wednesday night about reimported drugs. that failed. on every major legislative policy issue pharma has been able to win, but i have to say every type of health care has taken a cut since the affordable care act except pharma so there's going to be a lot of pressure on them. that's probably going to restrain the multiples of the companies overall. one final point, kelly, is that when we repeal the obamacare you're actually providing tax relief to industries like pharma, medical device and

health insurers and most importantly for investors you're cutting the capital gains and dividend tax rates. that has a broader macro positive effect in this. >> we have to go. evan, you like pharma or you had a biotech at one point. >> yeah. >> what would you do with health care now, anything? >> you know, i think a lot of the price actions probably taking place. i'd be in wait and see mode. i don't love the idea of piling into biotech stocks because they've had a bad year and a half. as long as president-elect trump is out there and he can tweet. what's the price of this drug exclamation mark. >> traded. >> yeah, exactly. millennials pile in. i think this is going to be a wait and see. i don't think this things is going to happen overnight. it's going to be a long time. >> sounds like that's what you're saying, dan. thanks for joining us. dan clifton. president-elect trump has also bound to slash regulations but maybe too little too late for small businesses like new york's china fun which had to close because of costly

regulations. we'll hear from the family of that popular restaurant and what drove them to shut their doors. remember when apple was the biggest tech innovator in silicon valley? peter teal says the age of apple is over. we have someone who says the company has something exciting up its sleeves this year though coming up. ÷g?oh o

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small business owners have been complaining about the cost of regulations. kate rogers has more. >> small business optimism soared this past week with main street banking on the idea that president-elect trump inauguration next week will usher in new era of business friendly policies. some on main street look forward to continue roll back of labor rules in the halted overtime rules as well as the affordable care act and a trump administration. regulations federally are on the rise here according to the conservative research non-profit. it found regulators finalize 400 rules costing $164 billion in 2016. that was the second most expensive year of the obama administration behind the year 2012. in terms of state regulations, a separate study found that nevada, texas and south dakota, they were actually the most friendly environments for small businesses when it comes to launching. now the states in the last place

is california, new jersey and new york. minimum wage laws. 19 states and two dozen municipalities enacted wage increases in the new year here in washington, dc. the rate is 11.50 an hour. that will hit $15 an hour. >> thank you, kate. >> here in new york an upper east side institution has shut down. china fun served up dumplings and roast duck to loyal regulars. now the restaurant has succumb to the crush of government regulations. joining us is albert wu, the sop of the owners. thank you for coming down here. hi, kelly. thanks for having me. >> what's this been like for your family? >> well, you know, it's been very, very difficult.

>> there is obama care. >> right? addition to the other regulations. >> that's what i was going to ask. do these all kind of become part of the problem or all of a sudden is it that, you know, hey, january 1 comes around and it's about actually paying the servers more, for example? would that have been a catalyst? >> well, that's a part of it. we wanted to do what was right for ourselves and our employees. ultimately we have to make a profit.

we haven't been for the past few years. we just can't take it anymore. i'm a commercial real estate broker. with the company evo real estate group. i talked to businesses all the time. one of the things that they mentioned to me is that we hear a lot of things about making the city affordable for everyday consumers. if the cost is going up, up and up, you know, either you have to go out of state, go out of the city with your business or you are going to pass the costs on to consumers. so how does that make any sense whatsoever? >> and i read that you guys appealed to the mayor's office to, you know, sort of say, hey, this is becoming a lot. and by the way the mayor's office says they have a small business office that's meant to try to streamline all of these things. they also said the city prioritizes the health and safety of consumers while also providing free hands on assistance so businesses can meet local and state standards. since 2014 they've focused on

educating businesses rather than slapping them with onerous fines. the point is we're giving you a break on all of these fines at least. >> you're going to have -- you know, you can have education but ultimately the city and the government has to encourage entrepreneurship and cut the red tape so we can hire more workers instead of doing all the paperwork. >> yeah, the big problem is, i don't want to just take sides, but i will take your side on this is the city in particular, new york state, it's run by democrats. they want to have it both ways. if you take the upper west side where i live, kelly, you spend a lot of time. the whole retail environment has been hollowed out over the last 25, 30 years. the only people that can afford to be there are the big banks, huge hr departments, huge standardized ways to be dealing with lots and lots of employees. if you're a small mom and pop shop, whether it's a restaurant, a small retail shop, it is

impossible to follow every regulation, compete and make a profit at the end of the day. and then they complained that all of these mom and pop places going out of business. >> they blame the chains. >> then they blame the chains. it's not the chain's fault. >> we know there's a lot of vacancies around. >> i will say the other reason that maybe that situation is allowed to go on. you still have a lot of people who are giving it a shot. how many times do you see a restaurant open up and the rent goes up or they don't really do that well and they're gone in six months. it's all right. >> you still have people who are willing to give it a try and replace it. >> exactly. but, you know, the risk/reward just isn't there for us anymore. >> by the way, the restaurant, i forget what the turnover rate is for restaurants in new york city is the highest in the nation. for every restaurant that opens. >> like four closes. >> it's like nine out of ten that open. >> it's like 90 some odd percent fail. >> do you think they're ever going to open the restaurant again? >> not -- not -- not at this

point in time. we don't think so. and going back to the vacancy rates, there's 30% vacancy rates currently in some parts of the city. >> yeah. >> you can't just blame it on greedy landlords. regulation has to have something to do with it. >> albert, thank you again for joining us. >> thank you. >> al birth wu. all right, is the age of apple over? peter teal thinks it is. up next we'll discover whether he's right or whether apple can get its mojo back. stick around for "fast money." not only did they ring the closing bell but regis philbin will join them. it all begins at 5:00 p.m. eastern. ccacan lp

welcome back. billionaire tech investor peter teal had harsh words. when asked do confirm or deny if the age of apple is over, thiel confirmed, it's not an area where there will be anymore innovation. investors are waiting to see where the new sources of innovation will come from. our next guest suggests it could be with augmented glasses. i think he's wearing one of those. robert sobel and gene muenster from loop ventures. robert, i don't know what you're seeing in there but is it the future of apple? >> it's the future of every company. this is a microsoft power lens. this shows you where the innovation is. i agreed with peter thiel. the innovation on smart phones is petering out. apple has surprises in store when they come out with the tenth anniversary iphone this year. they'll have a mixed reality or

augmented reality that you see through. it will do some cool stuff but i think the computing world is going to shift now to wearing glasses. these are way too big and too dorky and to expensive for consumers. >> i'm glad you said it. coming about this size. i was at the ces show last week to understand where the latest opticsful are i've also visited companies like lumis out of israel that are making glasses this size enstead of this size. that will encourage this world to take off. you'll get virtual reality. you'll be able to play basketball against me over the internet or all sorts of different things. and you'll get mixed reality. so you can see things coming out of your walls. it is really, really crazy what you can do with this. this so far is for enterprisers but not consumers. at boeing, for instance, i met with some of the strategists at

boeing. they have dozens of holo lenses to teach people to fix jet engines and things like that. >> let's not be a filibuster. all right. gene, what is your position on whether apple is being innovative enough and whether augmented reality is an important part of its future? >> a.e. is a critical part. it is rare that they talk about future categories and tim cook has been talking about a.r. so you can see that it will be an a.r. company. the way they'll do it is through the iphone over the next five years but it will be awarable. beyond that, they can do innovation around services, and lastly automotive is something that's still there. the idea that a company as innovative as apple and spends $10 billion a year is clearly wrong. >> yeah. i think certainly you can grant the fact that that is way

overstated. the idea that apple, an innovation is over. but i think there's this nagging sense. if the iphone will remain at the center. we use to see those things with the 30 devices that it replaced. things that you have and use that this took the place of. and nobody can make the leap and say what's a.i. or augmented reality going to replace that it doesn't do now? >> so right now, it is really geeky as we've been talking. about i think it will be everything from how we do social, how we learn, train, and i think the applications, throws the starting points. obviously the gaming piece. it is geeky today but the opportunities are endless. >> what were you going to say? >> i agree. this is best application technology humans have ever invented. that's why they're training workers on how to work on the multimillion-dollar jet engines or tractors.

entertainment will be huge. if you talk to the futurist at 20th century fox, i think this is a trillion-dollar product for the entertainment building. you'll see buildings blowing up, you'll see things on your walls. we'll be able to work together in a new way these glasses and wearables and you'll see a whole range of new things, new capabilities come along with. this it is hard to explain until you put somebody in one of these things. >> why did my producer just say we have a shower picture of you to show? >> because i wore the glasses for a year to be an early adopter of these. and my wife shot a picture of me to show that they're water resilient. >> let's be honest. google glass was not the, you could have been over the top excited for it and it was a total dud. >> it was a dud. it was a bat bad product that

didn't meet people's expectations. this new level of wearables will blow people away. >> all right. >> google glass didn't lay stuff to top of the real world the way these things do. and microsoft is betting its entire company on it. apple has 600 engineers in israel working on the 3d sensor that will be a core come possibly of this new technology. you can see the kinds of investments this triis on these new capabilities. it is stunning. >> thank you both. really appreciate it. >> thank you. and coming up next, some data on consumer spending shows the holiday shopping season may have been, are you ready? the best in years. we'll have details next. tht&t, rulrefoca vak

we know holiday sales at placies and kohl's were disappointing but consumers were out in force during the shopping season. >> so visa is out with its holiday data. it shows that 2016 it was strongest holiday shopping season in the past five years. visa says retail sales prove 4.8% over last year. that is stronger than national retail federations and

mastercard reading of 4% growth. data now shows the slowingest rate of growth. for online spending, visaer matches mastercard's growth while the others are slightly lower growth. online shopping took a much bigger share of the wallet. visa measures it at 24%, up three percentage points from 20 between the bulk earlier in the seegs season. surveying all the data we have now, black friday weekend which includes thanksgiving is still the period when most shoppers to their shopping. we can't count those out just yet. it is a relief overall. thank you. >> thank you. >> so again work the retail sales number we got this

morning, it was -- >> yeah. the government retail numbers were not that gralt of i think the private trackers are a little better. i don't think it is that much of a surprise. and also, there was a sort of a bump in the savings rate going into the end of the year. you have penalty-up demand. i think the interesting thing is people decided to spend a little more. and that was the headline number. the core was zero, maybe a .2 rise. >> retail, the charts are eddie's worst nightmare. my take on it is a lot of the things we used to look at. retail numbers, housing starts, wall street trading volumes. those things all used to be important. >> you don't think davos still is? >> i think it is as exactly as important as it ever was. >> i like this is the year of joe six pack. >> it is like kristine, no one

cares what she says anymore. that means world has moved on a little bit. >> the imf has said inflation will pick up. it is mission accomplished. >> clear sailing with donald trump in charge. >> that does it for closing bell and "fast money" begins now. "fast money" starts right now. the ten-year anniversary celebration rages on. overlooking new york city's times square. "fast money" friends and tv legend regis philbin is here and he has some very important questions for the traders, plus he'll tell us when he thinks dow 20 k will happen. the nasdaq endsing the day in 14. soaring to a record high. remaining the best performance of 2017 and