some of the truck drivers in my state so they can look you in the eye and explain to you the guarantee of their pension -- you know, your new boss did an amazing job connecting with people like these missourians in the country. i want to hear from you that you are not going to leave these people behind. >> what i will say is i will commit to meet with them and i will commit to work with your office on us figuring out what is an appropriate bipartisan solution to this issue that i appreciate the pension issue we've talked about several times today is a significant issue. >> thank you, mr. mnuchin. >> all right. senator casin. >> thanks, mr. chairman. mr. mnuchin, i wanted to start with a question you've no doubt come across in your preparations. we're going to break in for a moment here as we continue the coverage of the confirmation hearings of steve mnuchin as the

treasury secretary. we welcome you to "closing be " bell." if you haven't been binge watching these hearings, we have eamon javers to catch us up. >> reporter: yeah, i'll give you the concise version. speaking of binge watching, these folks in line, this hearing has been going on for five hours. there are still folks in line waiting to get in to this hearing. there is high demand, high interest. a couple of testy moments, a couple of interesting exchanges on policy. let me get you both of those and start you with a clip here in which senator cardin raised a question about anthony scaraducci who is a financial advisor. asking mr. mnuchin if he would participate in an investigation whether or not he violated russian sanctions in the course of his business. not clear at all where that allegation comes from necessarily. we've asked his office on that and here's that moment and a few

others. >> our sanctions, i assure you, you know, i will use them to the maximum amount allowable by law. >> and i appreciate that answer. senator warner and i are going to be sending you a letter if you're confirmed to investigate the allegations that mr. scaramucci who was recently named as the white house director of engagement and intergovernmental affairs, senior adviser to the president, may very well have violated the sanctions against russia in his dealings. were you a director of doing capital international limited became a corporation? >> i was. that is correct. >> did you move a hedge fund duelling capital partners, l.l.c., to anguilla. >> when we talk about moving, okay, you know, it's not as if i had 50 people sitting in his office as we've talked about -- >> right, i understand. >> -- and moving it. i will commit to absolutely work with the congress, the house and

the senate, so that we don't get to the last minute and run out of money. >> is that a yes, you admit to passing a clean debt ceiling. >> i don't know what your technical definition is -- >> debt ceiling? >> let me be clear, i would like us to raise the debt ceiling sooner rather than later. >> that's fair enough for me. >> thank you. >> we don't want a risk of defaulting. >> i'm grateful for that answer. >> the u.s. currency has been the most attractive currency to be in for very, very long periods of time. i think that it's important and i think you see that now more than ever. i think when the president-elect made a comment on the u.s. currency it wasn't meant to be a long-term comment, it was meant to be that perhaps in the short term the strength in the currency as a result of free markets and people wanting to invest here may have had some

negative impacts. >> guys, so interesting to hear that comment on the u.s. dollar from a treasury secretary hopeful. we are so hopeful to here in washington hearing treasury secretaries say they believe in a strong u.s. dollar. that's not exactly what we heard from steven mnuchin here today. that's going to be eyebrow raising for people who followed the treasury for a while. we'll have to see if it has any impact on global markets. we're going to expect to see a lot of different things from this trump administration. that's one of them, guys, back over to you. >> i wonder, eamon, overall, how do you think the hearing is going for mr. mnuchin. at this point we're getting a sense, right, of how he's holding up. >> this doesn't feel like a nominee who's on the ropes at all. democrats had hoped that this might be one of the trump nominations that they could derail here. they thought some of the

foreclosures in his banking background, his connection to goldman sachs, all of that might plan to serve a populus resistance to steven mnuchin. it doesn't feel in the room like he's on the ropes at all. you wonder whether democrats at this point even think at all if they're going to be able to peel off any votes against him. as of now you don't get the vibe that a lot of republicans are willing to break ranks and block this nomination at this point. >> eamon, thanks very much. let's go back into the hearing room as the hearings continue. while that happens, let's bring in dan clifton. get your take on what you're hearing here. i mean, we're not hearing -- let me put it this way. some of the things he has said doesn't jibe with what the president-elect has said but we've heard that from other cabinet nominees as well. >> that's right. >> he's in favor of cfpb, he's made comments about freddie and fannie that sent the stocks lower. what are you hearing that may surprise you if anything?

>> on the policy side, he's very nuanced. he wants to change the boca role. he wants a bipartisan compromise on fannie mae and freddie mac. >> he wants to see changes made to the consumer financial board. that's consistent with how policy gets conducted. so i think from a policy perspective he's doing excellent today. from a political perspective, as eamon was talking about, the democrats are trying to land blows. what struck me was senator heller from nevada trying to talk about foreclosures in his state. that's a republican up for re-election in 2018. maybe you see a few republicans. it doesn't feel like he's going to get shot down even with the off shore funds, lack of disclosure of $100,000. he's doing well enough on policy that he should be able to make it through. >> dan, the market has been waiting for a lot of these confirmation hearings. of course, the first days of the administration, at this point

with a lot of the candidates, without a ton of opposition what does that say to you about what's going to happen in a couple of days? >> kelly, we're less than 24 hours away from donald trump being president of the united states. this is a big change. things are going to happen fast. this hearing in particular is so important because if he doesn't get in, it slows down treasury being able to staff up to do tax reform and the market wants tax reform. so getting him through, allowing him to staff that group, then it allows tax reform to get done quicker. but you are going to see rapid change over the next 72 hours. a series of executive orders, freezing federal employment, changing regulatory structure and starting to approve these energy infrastructure projects, things are going to start moving pretty quickly. i think investors are in for some big change over the next week or so. >> you know, mr. mnuchin was asked a couple of times and it's clear about reviewing oake and it's clear that that seems to be the higher priority right now

for the trump administration than tax reform does. are you surprised by that? it would seem that tax reform would be the lower hanging fruit compared to repealing aca. what do you think? >> well, bill, i would say oake pr -- obamacare should be the bigger priority. tax reform is a long and complicated process. >> aca won't be? >> it took ronald regan 22 months to do the 1986 tax reform. they know they need 6 or 9 months. the republicans promise they were going to repeal obamacare early and now they've figured out that they need to replace obamacare if they're going to repeal it at the same time and so trump has sent a directive to republicans, get this done in the first quarter so that we can pivot to tax reform which is what they really want to do at the end of the day. >> dan, what else? do they have to pick one thing at this point? have we heard much about the repatriation holiday? have we heard much about this if

the border talking is scrapped? >> that's right. kelly, think about it as a cascading type of event. you're going to start off the regulatory actions on energy. then we're going to move into the aca, then we have to do the actual budget, defense spending, money for the wall, possibly infrastructure in there. all of that leads up to the grand finale which will be tax reform. investors do not like watching the details, the sausage being made in washington. it is an ugly process. it creates volatility, but you need to look through that and see what's the end game? the tax rate is probably going to fall to about 25%. we are going to have repatriation in the territorial tax system but we have to remove some. we have a one in four chance that you're going to get some sort of border adjustable tax system but it has to be part of the debate and it will get vetted out. if they do the boarder adjustable tax system it can get lower but we don't think that's going to happen at this time. >> thanks, dan.

>> thank you. >> dan clifton. be sure to watch cnbc special inauguration coverage kicking off at 11:00 a.m. eastern tomorrow. we'll bring you live coverage of all of the major events. we'll speak with wall street's top money managers about the potential impact of trump's policies on your investments. let's get to the "closing bell" exchange. joining us is kevin giddis is sitting here at post 9 next to new york stock exchange trader and rick santelli is here. tomorrow is an expiration day as well. that will make for fun trading. today though midday we had a big decline compared to what we've seen recently. dow was down more than 120 points. we've come back a little bit. what's going on? >> same thing we saw yesterday. it seems like this market when you look at it, take a step back from a longer period of time. this market evaporated higher. it seems like now that it's

going to evaporate to the down side. there's not enough volume and liquidity to feel convinced that this is moving in the right direction. we've seen that as it moved through the last couple of weeks. i think investors are a little bit on edge as to what the next week, what the next month, what the next quarter is going to look like. rightfully so. prices have gotten high. i think our week is going to end pretty quickly tomorrow morning, right? we have ibm after the bell today, we have ge tomorrow and no economic data. it's going to be all about the inaugurati inauguration. i don't think tomorrow's activities are going to be market moving but they will be entertaining to watch. >> what are the top questions people have for you when it comes to fixed income? how high on the list is the inauguration tomorrow? >> not very high on the list. the things that are affecting the bond market right now are what the fed's going to do, which is not likely anything until the middle of the year because the administration comes

in and makes whatever changes and the fed will allow that to happen. we saw a nice move in buying after december 15th all the way through the end of the year and a little bit of a reversal as we went into janet yellen's comments yesterday and today. it's going to start off slow much like john is talking about. it's going to be a slow building opportunity, we call it reactive opportunity. it will take three or four months. about the middle of the year this thing will -- >> it's still all about the fed for you guys. >> we have it right now. in the meantime, a rather eye opening auction, ten-year tips. inflation protected bonds. tremendous demand. obviously somebody out there is expecting some inflation down the road. yes? >> yeah. no, i think there's a lot of channels why interest rates will continue to rise. i think we can debate as to how quickly and what the time line is but that is definitely a channel that's getting much more interest and it isn't only here. of course, we've seen data out of the u.k. and there is an

elevation going on. i think there's even more going on when you look at how the market's, i know with due respect to kevin and jonathan, of course the fed's important. i think the market's drive for higher rates is going to occur whether the fed's on board or not. we've been debating the complex of the yield in my judgment. finally, also wanted this to be about panelists today. most likely the inauguration is not going to be a market moving event but, i mean, he gives a fire and brim stone speech i would not discount the fact that you could see an up side surprise tomorrow. >> john, you're nodding on that. that happens at noon. do we get a noon balloon tomorrow? >> i don't know if we're going to get that. inauguration speech, this is going to go down in history. some of the off the cuff comments that president-elect trump has said has been some conferences or conversations that we've heard. i think tomorrow's speech is going to be very well written, very poignant. have a significant message. i don't think he's going to

drift away and kind of tag certain areas that will move certain companies or sectors. >> kevin, going back to what you were saying, you know, people looking to interest rates to be the tell on everything, right? it's like are they going to go up? are they going to go down? is the end of the bond bull market here? are we overplaying the importance? if we hang around these levels, that's no problem for the equity market, right? do you expect major moves here? >> i think keep in mind this is all predicated on the president-elect's ability to get a whole bunch of things done in the next -- or this year for interest rates to really in the inflationary part of interest rates to take effect. between now and then i don't think we're in that much trouble through the first few months of the year. it is as rick said, we're in an upper trend on rates. we know that. there shouldn't be any surprises. the velocity of this move is only going to come if he's successful in getting a number of things done and the repeal of

obamacare takes most of the year, then we're pushing this out further and the fed won't raise three times like they think in 2017. >> you think what the fed does depends on what happens with obamacare? >> absolutely. the administration's ability to get tax reform and a bunch of other things like that. >> speaking of earnings, you know, the mother's milk of wall street as larry kudlow would put it. not just what they looked like but how the market has responded to them. what have you made of that to this point? >> right. i think the market has responded quite positively as an overall context. >> like the bank shareholders though. >> that's right. i think if you look at the outlook. the forecast moving forward of what some of these companies are saying, i think they tempered some of the -- in the past we've seen these high hurdles that investors and companies try to aim for. i think at this point if they pull back and manage expectations investors feel secure with that especially with the ever changing world that

we're living in and the blue pin moving forward is going to change dramatically. >> it will be very interesting to see how we are doing 24 hours from now. but in the meantime, thanks, guys. >> thank you. >> thank you for joining us. appreciate it very much. 45 minutes to go. dow is down 88 points. we started off this morning premarket, it was kind of flat. >> very flat. >> it's like a negative one. keeps drifting lower. s&p down 9, nasdaq down 18, russell down 12. >> sparks flying as you saw during the confirmation of former texas governor rick perry for energy secretary. president-elect trump's pick for that. perry says he regrets now calling for the energy department to be scrapped five years ago. we have more from washington on that coming up next. and dow components ibm and amex report earnings an hour from now. we'll break them down the second they hit the tape. you're watching cnbc, first in business worldwide.

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>> very good. >> horrible start. >> very well so. >> dow down 171. was down 122. came back. s&p down about 8. nasdaq down 13. big decliner percentage wise is the russell 2000. csx, what a story, topping on a report out late yesterday, the canadian pacific ceo hunter harrison has resigned that post and now will team up with activist investor paul halau to take over rival csx. "the wall street journal" says the team would seek to put harrison in a senior management position at csx. halau's fund has raised $100 billion. unspecified. csx now up 22% today alone. >> you just have to wonder how much is now priced in there. 22% pop whatever happens in this juncture, now they have to clear that hurdle. or it's a great one day return on the investment. former texas governor rick

perry facing tough questions from senators at his confirmation hearing. let's get to those highlights with our john harwood. >> kelly, rick perry was asked about a range of issues, storage of nuclear waste, nuclear modernization, to the effect on our energy mix on the nation's climate. he did well in the hearing in part by disarming his critics. he said, as bill indicated before the break, that he no longer believed in eliminating the department. he said he believed in climate change and that it's partially manmade and he said that he disavowed the transition team's request for the names of people at the energy department who had worked on climate change in the past. take a listen. >> i didn't approve it. i don't approve of it. i don't need that information. i don't want that information. that is not how i manage. i have a history of working with people to find answers to

challenges that face us. >> i'm asking you if you agree with the scientific community that climate change is a crisis and that we need to transform our energy system to protect future generations. >> senator, i will respond that i think that having an academic discussion, whether it's with scientists or whether it's with you, it is an interesting exercise but do i have a record of affecting the climate in the world and in this country? and the answer is, yes. >> i'm going to try one more time. do you support storing nuclear waste at yucca mountain? >> i will not sit here in front of you in a committee hearing and tell you absolutely no way is -- is nevada going to be the recipient of any high level waste, but what i will tell you is that we'll work with you every day and as i think a number of the other senators have said, there's some other

places in this country that are willing to have this conversation. my past statements made over five years ago about abolishing the department of energy do not reflect my current thinking. in fact, after being briefed on so many of the vital functions of the department of energy, i regret recommending it's limb nation. >> reporter: now the combination of candor and humor that rick perry showed underscored why it is that presidents so often appoint people who have won elected office. rick perry was elected repeatedly as governor of texas. he does not appear to face any significant obstacle at this point to his confirmation, guys. >> of course, i need to point out the obvious. it is ironic you're covering this. it is your question during that debate that you asked which departments he would eliminate. he said three and it was energy, he couldn't think of at that time. now we find he probably will become energy secretary here. >> reporter: that is true, guys,

but after that event as well he showed -- he bounced back with the kind of humor and personal ease that he showed today. the guy is nothing if not resilient. >> he's very engaging, that's for sure. all right, john, thanks very much. john harwood in washington. by the way, reminder cnbc special inauguration coverage begins tomorrow at 11:00 a.m. eastern time. top wall street strategist to help you sort out where the markets could be heading next under a trump administration. so join us tomorrow. we've got a lot planned tomorrow. hope you can join us at that time. meantime, today, 35 minutes left in the trading session. the dow is down 70 points. art cashin is hovering around because he's going to be joining us. in the meantime, tesla shares getting a boost from an analyst's upgrade and news that the government is closing an investigation of a deadly accident that occurred while the driver was using tesla's auto pilot feature. the shares are up a little bit more than 2%.

we'll have all the details. the ceo of regional bank bb&t breaks down his earnings and get his take on president-elect's policies on future profits in his industry. that's coming up on "closing bell." ♪

welcome back. you're looking at the steve mnuchin hearing which appears to have been adjourned. he's been in there for several hours. they took one break earlier. we showed you a lot of highlights. there was some additional

discussion this afternoon. you mentioned, bill, one of the topics that came up was fannie and freddie. >> earlier on after the announcement of his nomination he thought the government backing of freddie and fannie should end and the stocks took off. now he's sort of more nuanced to use that word eamon used with all of the policy issues realizing there can't be this reform and release kind of program for those two government-backed entities. >> bill miller on our show yesterday casting doubt on a recap and release. a couple of different things hitting shares of fannie and freddie. financials, citi especially lagging. there is thought that he wasn't sharper about the repeal of the vogel rule, dodd-frank, some of it that would be encouraging. >> meantime, we're down 66 points right now on the industrial average. let's talk about tesla. that got a boost with regulators

having closed that six-month probe into the death of the man using tesla's semiautonomous driving system when he crashed into a truck. the national highway safety traffic administration says that it did not find evidence of a defect in the car and that it will not seek a vehicle recall as a result. tesla unveiled improvements to its semiautonomous software. morgan stanley upgraded tesla from overweight to equal weight. a surprisingly supportive political environment. morgan stanley raised tesla's price target from 302 to 242. today it's at 243. it has a ways to go. >> it's time now for a cnbc news update. let's get out to sue herera. >> hi. an avalanche buried a hotel in a region of central italy leaving at least 30 people missing or presumed dead.

two bodies have been recovered. that video footage shows the rescuers digging through a wall of snow. at least one man was led through that cleared path. former president george h.w. bush and his wife barbara remain hospitalized in houston where he is in intensive care for pneumonia and she is being treated for bronchitis. mr. bush is in stable condition and is being evaluated to see whether his breathing tube can be removed. thirteen automakers are recalling more than 650,000 vehicles in the u.s. in the latest round of takata airbag recalls. this is the largest recall in u.s. history affecting some 42 million vehicles. the oakland raiders have applied to the nfl for relocation to las vegas. the nevada legislature has approved a $750 million public fund for $1.9 billion stadium near the las vegas strip. the formal application must be approved by 24 of the 32 nfl team owners. they will vote on the move in

march. >> all right. very good. >> lots of football news. >> yeah. thank you, sue. we have to move on. we have eamon javers with mr. mnuchin. >> he's not going to do that right now. we have to do tax reform, the question is what form and we'll have to get everybody together. we know -- we know a lot of directions we want to go. we'll just have to see what happens. >> thanks, senator. >> thank you, sir. >> eamon there talking to steve mnuchin and orrin hatch. he looks pretty relaxed after that hearing. >> yes. >> that was a long one, too, as expected. i don't know if anything of substance was just said but we'll have eamon get back to us. >> we have 30 minutes with the dow down 69, 70 points. a leading trader named cashin will tell us what he's watching going into the close.

plus, netflix hitting another record. they discuss how much innovation could be left in the media giant's pipeline. stay with us. ca

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26 minutes left in the trading session here with the dow down 78 points. i will mention that we are moments away maybe from president-elect trump and vice president-elect pence at arlington cemetery to lay the wreath, a tradition the day before the inauguration. that could happen any minute here. in the meantime, i've got art cashin, the director of floor operations. what was with that selloff today? what's going on here? >> 2:00 is the earliest that you can get a look at the on close indications. the first look was pretty powerful. 80% were to the south side. $700 million. that prompted people in the spiders to sell them out. >> art, hang on. here we go. to arlington cemetery. kelly. >> this is the president-elect at arlington national cemetery to lay a wreath at the tomb of the unknown soldier. one of the first activities we are seeing him participate in as part of the inauguration. you can see ivanka trump there.

he's surrounded by his family, in fact, his sons and daughters. and we watched everybody arrive in washington not long ago. in fact, i think donald trump leaving laguardia this morning held up some of the outbound traffic. >> interesting, kelly, as he brought in a military jet this time. the trump jet has been left behind. so they are -- that answers one question, which jet was he going to travel around in. it appears that he will go along with air force one. but this is the beginning of the festivities, the commemorations, the traditions that surround the transition of power from one to another and this will be the most solemn of those ceremonies that we will see over the next few days here. >> there's his wife melania approaching. >> we're lucky it's good weather right now, too. president obama's mentioning the other day when he was inaugur e inaugurated in 2009, early 2009,

very, very cold those few days. frigid temperatures. but it's in the 40s and 50s right now in washington. and they're expecting a little bit of rain tomorrow during the inauguration, but right now it's pretty nice in the nation's capitol. >> yeah, the rain will be interesting. you mentioned, bill, to see how that affects the ceremony and everything that takes place tomorrow. all extremely well choreographed. we saw the walk throughs making sure everything was smooth. security is extremely, extremely tight around the venue. anybody going near the parade has to have certain badges and identification on them obviously. so that, again, all kicking off tomorrow. but here today the president-elect laying a wreath at arlington cemetery at the tomb of the unknown soldier. >> art, you've seen your share of inaugurations as well going back to mr. kennedy, who also

had a very cold inauguration. >> yes, he certainly did. >> what did you expect the market to be doing over the next couple of days here? >> well, it all depends how the inaugural speech comes out. will it bring any clarification? will it shape out his program? that could have a market moving impact if they begin to get a real feel for it. so it will be key. again, as kelly said, the rain could confuse some things because he was originally scheduled to actually leave the parade early and begin signing some executive orders. >> yeah. it'll be interesting to see what those are. he has promised some action on the first day. there you see the president-elect, the vice president-elect as they make their way down to lay that wreath at the tomb of the unknown. very interesting to see the interaction between these two men who really have come together as a team now, haven't they?

>> yes. seem to get along fabulously well. pence is having apparently more and more influence, and that should not be a bad thing. >> during the news conference yesterday announced the transition was completed logistically and they had come in on time and under budget. here they are with the ceremony right now.

♪ ♪ [ playing taps ]

if you're just joining us, the completion of a ceremony there with president-elect trump, vice president-elect pence laying a wreath there at the tomb of the unknown the day before the inauguration there. i'm with art cashin still here on the floor of the new york stock exchange. a lot of guessing about what the

market will do tomorrow. it either steps aside during the ceremony, the festivities tomorrow, or we could get some market moves depending on what is said or done, right? >> yeah. i think, again, the speech could be very important. the overall tone will begin to outlay some lines and plans for what the administration's program is. talk about the tax cuts, talk about whatever, we'll talk in generalities. that will have an important effect. >> tomorrow is expiration day. does that matter? >> it can. it can. it's not an enormous expiration, but it could be influential. as i said, the indication for the close are what gave us the selloff today. i'll be getting back to you about, oh,, 3:48 with the one that i look at, which is the final one. >> we will look forward to that. >> my pleasure. >> kelly? thank you, guys. we have 18 minutes to go into the close. watching markets which are broadly selling off today.

bb&t bank stock also lower despite record earnings. we talk to ceo kelly king about those numbers.

welcome back. shares of bb&t trading lower.

they took a charge related to the increase in interest rates. >> joining us in a first on cnbc interview, we welcome back kelly king, bb&t ceo. >> glad to be back. >> let's briefly touch on your earnings and that quarter. at a time when the markets were percing up, the animal instincts, we are told, came back. rates started to rise. how was the quarter for you? >> well, bill, it was a really strong quarter for us. you know, it's not as strong as j.p. and some of those guys, but keep in mind, we're in a very different business. they got a huge increase in a lot of their trading, capital markets businesses and national businesses that we're just not in. in some of those quarters those are good and ours tend to be more even. it was a good quarter. we had strong revenue growth over the last year. we had a strong record earnings, great asset quality. there was a little bit of noise

on our numbers about some duration adjustments because of the interest rates rising, people didn't understand that initially. we'll get that back over time. it will settle out to be a good quarter. we're pleased. >> is there any reason, kelly, to think higher interest rates broadly speaking will be a head win for you guys? >> no, not at all. this is just a technical accounting adjustment. when we bought colonial we had a huge amount of securities, very high quality securities. the way that purchase accounting works you deep discount those and then you create the discount into earnings. when you have a change into interest rates it changes the duration. it pushes earnings out a bit. no, the increased rates will be very positive for us. >> i don't know how much you've heard of steve mnuchin's hearings today, his confirmation hearings for treasury secretary, but we've been highlighting some of the comments he made that were moderate nuanced, if you will, as it pertains to regulations. he wants to maintain the structure of the cfpb, for example. he talked about the freddie and fannie, recap and release, but

not without reform of the whole system that has been in place for a number of years for those two government-backed entities. what did you hear that would pertain to your business per se? >> well, i've been working today. i didn't get a chance to see his testimony but i've heard some of it. i generally agree with mnuchin about cfpb. we don't need to throw the baby out with the bath water. remember, people are for getting this, before the crisis, most of the crisis was created by non-prudential banks, non-prudential regulators. we need it and we need a form of regulation on the non-bank providers. cfpb is appropriate for that. it needs better governance. it needs to have its funding supervised rather than being attached to the federal reserve. it needs to focus on the shadow system versus the banks so they need a lot better direction but nothing inherently wrong with the cfpb. >> kelly, i wonder, as it

appears a lot of his appointees are gliding through this process more or less. you start looking ahead to what happens under this administration. do you foresee a major wave of bank consolidation here? >> i do think over a time, kelly, there will be more consolidation. maybe not up front because, remember, that all of the bankers are hearing the same thing so all of the bankers are seeing less regulations, less taxes, higher growth rates and that can tend to postpone the inevitable of needing to consider to consolidate. over the long term there will be expanded interest in consolidation. but i think the changes that you're hearing about with regard to potential regulatory relief under trump is real, is very real. is very significant and the excitement around that i believe is well placed. it might be a little misplaced in terms if it's all going to happen tomorrow, it will not, but it will happen on a methodical basis over the next

6, 12 months. it's very, very positive for the banking industry. >> always good to see you, kelly. thank you for joining us. >> thanks, have a good day. >> kelly king, the ceo of bb&t. art cashin came back to say we have 500 million to sell. dow is taking another 10 points lower. s&p down 9. transports are still positive today because of csx. the vix a little bit higher, russell, small caps and nasdaq is down. >> presidential election of donald trump is tomorrow, as you know. you can watch it right here on cnbc. our coverage begins at 11:00 a.m. eastern time. meantime, david darst is stopping by today with his market acronym of the week. not surprisingly it is tied to tomorrow's events coming up. ofd ?

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seven minutes left in the trading session here with the dow down 73 points. we're getting a foreign language less sin today from our friend david darst. >> global. >> i'll be very quick today. no entomology although the word entomology come from entmos. global is globalization.

globalization has led to integration of the world economy, but disintegration within each country's economy as people have felt left behind. the l is low volatility. it's up to 13 but that's still very, very low. it's very lethargic. it's very lackadaisical, very lackluster. be careful. it could move. g-l-o-b. o is oil. you want to focus on oil services. today's oil services companies without whom you cannot reach the shale deposits around the world. b, g-l-o-b. b is banks better. the trading goes along with the net interest margin, which is the higher interest rates, regulatory relief. that will lead to higher return on equity and greater ability to pay dividends, thus, higher stock prices. you remember when banks were up 28% after the election. people said, i wish they'd pause. this is the time.

it's time to start feeding back into some of the banks, okay? >> a is america's core. that's the core of this country, which we're trying to basically respect and repair and relieve, okay? so that's it, america exports three things, growth, security and ideals. let's hope that happens. >> the last l is late which is what we are now. >> late. in that case sayonara, everybody. >> very good. >> that's another lesson. >> i know where that one comes from. >> thanks, david. >> we'll be back with a closing countdown in a moment. >> stay tuned. ouad gic erds lpou

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ngir e yoreedre your ingres retre.e.m s s vevei all right. just inside the two minute mark as we head towards the close. very interesting day. around 2:00 eastern time is when we saw that big selloff for the dow jones industrial average. it's not exactly clear what caused that. art cashin is of the opinion that it's when the traders got the first look at the market on close orders. who notion what it was all about. we're down 66 points going into the close right now. very interesting auction of ten year inflation protected securities. tips. ten year inflation tips.

the demand was off the charts today and the yield came down sharply as a result of that demand here. clearly somebody's expecting a lot of inflation down the road, and that's something to keep an eye on here. we'll keep an eye on those securities. monetary policy being as low as it is for as long as it has been could be a reason for that. dollar index kept creeping higher today from the hole that it created itself earlier this week. we're now 101.14. bob pa ssani, we have big blue d amex. >> they'll give 2017 earnings. >> that will be interesting, too. >> maybe something on what effect lower taxes are going to have. mr. mnuchin testifying, didn't give us what he wanted to hear. we thought he would do that, he declined to do that. >> very moderate in his testimony. >> by the way, if you're expecting inauguration to be up for stocks, historically it's a down day. that's according to our friends.

nothing from mr. mnuchin on taxes and infrastructure. a little bit of surprise there. >> we'll see what happens. it should be very interesting tomorrow to see what happens on inauguration day. stay tuned for the earnings from ibm and from american express. second hour of the "closing bell" with kelly evans and company. see you tomorrow, kelly. thank you, bill. welcome to the "closing bell", everybody. i'm still laughing at lindsay's expression. it is much louder after they refurbished the place. here's how we're finishing the bell. s&p 500 down about 8 points on the bell, 1/3% drop. the dow doing the same thing with a 72 point decline leaves it at 19,731 melting away from the you know what mark. nasdaq down 1/4% to 5540 and the russell small caps whacked again. they are underperforming on the way down. dropping nearly 1% today to

1345. so everybody a little bit below their high water marks here as we close out the trading session. we've gotten two big earnings releases on deck. deidre bossa is standing by and susan li is covering amex. joining us for the hour is cnbc michael santoli. also with us, more on today's markets jeff degraf and lindsey bell from cfra research. welcome, one and all. we had if you want to call it animal spirits, the csx deal could be a big deal for the whole market. >> in the background, the csx deal, rail consolidation is in play. i think it would rescue an industrial sector that has run up a lot in advance of real improvement in earnings. sure, if that becomes kind of contagious, i do think that's a big deal. i also know just in terms of context in terms of what kind of market we've been in. the fact of the dow being down

120 felt like some kind of important jarring move to the down side. does tell you that we've just been in this prolonged pause. been waiting around for some kind of a catalyst. the market started to sag, maybe get a little bit of a defensive tone even as treasury yields up, bank stocks rally. >> we still haven't had that big down day but it does feel like the environment is getting more and more lack lustster. the banks today, you look at suba subaru, led the way there. it broke its 50 day moving average. the momentum is kind of to the down side. what stops that at this point? >> actually, let's back up. i think what got you there was enormous etf flows. when they look at the sort of crescendo of etfs, highest in industrials, highest in financials. as you lose some of that momentum, they need to consolidate. that's what we're seeing. >> does that mean this is a healthy move that comes after the kind of run up that we saw? >> probably my least favorite

expression is the pause that refreshes. >> i almost said that. >> sounds so balmy. >> you can say it if you're making fun of it at the same time. >> lindsey, any phrases you'd like us to dispense with here? >> i have no phrases right off the top of my head. i would say earnings season, we have 10% of the s&p 500. not that much. beat rates have been about average. usually at this point in the season they're a lot higher. that's not adding to the positive sentiment. >> who is beating in terms of -- because we really only heard largely from the financials. >> they have had huge beats. we've seen a lot of good beats from the industrial sectors. it's just there's not a lot of growth out there in the stock reaction that you've seen from these beats has been kind of flat overall on average. >> this is the danger when the expectations are so high. you had great earnings, great year. all of that already priced in. >> sure. >> people already talking about 2018. it definitely is time to apprise ourselves. >> we had a very violent

repricing. everything is following in the right direction. i do think, look, as i've said 1,000 times here, it's similar to the way it felt in august and september. where you had this very surprising rally after brexit. it was waiting for something to come next. so i do think maybe that's an announcement. you're hearing a lot of talk about how january expiration week tends to be weak. february maybe you have some softness historically as a seasonal basis. sell the inauguration does not make a lot of sense. that's in the back of people's minds. >> what about you? >> i think there's three, four things. internal softening has been happening for a month now. you're seeing seasonals. february is the worst month ex-september. and sentiment. sentiment is statistically meaningful but they don't tend to be economically significant. in other words, you tend to go

in for a pause. that pause lasts somewhere between four and six weeks and then you start to resume trends. >> so it was the pause that refresh refreshes. >> what were you going to say, lindsey? >> i was going to add in that today we saw investors sentiment come out. they've gotten very cautious. that could be a contrarity. we've done some reference at cra where the first 100 days of the president's term the market trades up by 1 or 6%. >> i never know what to make even when it comes to the month, the first 100 -- everything feels like it's so different. is it going too far to say why should any historical precedence matter at this point? >> to me, it's the context. it's sort of like everything else is never fully equal. if everything were equal, that's where your tendency is going to take you. i call things climate, not weather. >> we have some of the earnings numbers hitting at least when it comes to american express. jeff, how important is it that we're transitioning away from

the financials into the big, important companies? >> i think financials specifically are important but mostly the traditional lenders, the big banks. i think american express less so. but i will say, you know, american express has started to turn around and has established trends so the ability to shake off any bad news that may come out of earnings i think is very important. i'd say the same thing with ibm. ibm has been a tech stock that's been a laggard for a long time. is actually starting to improve. starting to transition and to trend. the ability to react well to good news, to respond to bad news is very important in the context of those trends. >> you can see american express shares moving lower by more than 1% there. 8.02 billion on the revenue line. 91 cents adjusted on the earnings line is a small miss. that's relative to the fact that that expectation was already supposed to be down about 20%, lindsey. i know the challenges with this company. anything here jump out to you right away? >> not right away. i'm wondering if costco, if analysts have modeled that in

correctly. that could be a huge impact so the number could be better than we expect. i think one thing about this stock is it's run hugely since the third quarter's earnings report which is much better than expected. >> yes. >> so while all the financials have run, this one has gone a little bit further. it was the expectation with the tax rate being so high that if trump does pass tax reform, this is one of the stocks that will do well. >> susan li is going over the release. what do you find? >> as you mentioned, we have a sizeable miss when it comes to earnings per share in the final quarter. revenue missed by a little bit. the eps guidance in 2017, a little above estimates so they've given us a range of 560 to 580 at this point. we're still looking for member growth numbers, also marketing costs. marketing costs have been on the rise as they're trying to get more members and boost member growth. that, of course, has crimped on

profits especially as revenue has continued to fall. that's the latest we have. we'll sift through the report. i'll bring you highlights as we get them. >> thank you, susan. i'm thinking of jamie dimon's comments in davos. it's a huge reward card. they lost a bunch of money on it. $200 million in the year in fact. mr. dimon said i would have been happy to lose 400 million because we think we're going to make up and incur that revenue over many, many years. >> on an accounting basis it looks like you're having a really bad time there, but basically that's the cost of acquiring very profitable customers. he wouldn't have said this necessarily, but it's the cost of acquiring them mostly from american express. that's where the dog fight is. the guidance is from 560 to 580. higher than the forecast of 560. maybe the feel position in terms of wherein vestors was looking was something a little more than that. it's not an expensive stock. it's not an overly beloved stock

by the sell side. it trades in line by discover, capital one. if the guidance holds up it will be all right. >> it shows you how far they've fallen. they don't command the premium. you can argue whether they should have it or not. overall they're now in an extremely competitive environment having lost that edge. >> i think stocks specifically, that's right. if you look at the group as a whole it was beaten down so much i think you've got the synergies of the group and that's the wind behind the back. less idiosyncratic stock. >> we're still waiting for ibm which is starting to come in. we want to get all the details sorted out first. again, we're going to do the big cap names, this one and the others into next week. are the expectations there as high as they have been for the financials so far? >> yeah. you've seen since the beginning of the year the tech sector has run up. it's been one of the winners along with health care and consumer discretionary. they would be going up into the end of the year. they did less well going into the end of the year.

expectations are high. for ibm it is it was the turn around for a long time. it's still continuing. we need to start to see it bear fruit. people say, you have to turn it around. what's that mean for revenue? can we see revenue turn around? >> the same trade all over again. those companies seem -- we already know what happened with netflix. the rest of us feel like it will be equally important. >> tech will be a close sector. >> we're standing by with more on ibm's earnings release. >> that's right, kelly. we do have a big beat in terms of earnings price share eps of $5.01. that is a 13 cents. $4.88 was expected. we have a beat on the revenue side. company reporting revenue of $21.77 billion versus 21.64 billion expected. strategic imperatives, this

includes data analytics, watson, cloud. that came in for the year up 14% to 32.8 billion. that's for the whole year. for the fourth quarter that's 9.5 billion and i also want to mention that strategic imperative now represents about 31% of revenue at ibm. remember, ibm has been growing this business to make up for its declining legacy business. also, analysts were looking for the free cash flow number. that came in at 11.6 billion. that's below its four-year guidance. little light there. eps guidance well above expectations. the company is saying eps of at least $13.80 in the upcoming fiscal year. $13.74 per share was expected. guys, we will go through those numbers and bring you more as we have it. we'll also be on the conference call later. those are your top numbers on both the bottom and top lines for big blue. back over to you.

>> the slight upside tweak to 17.25 guidance matters. if this is topping and turning, that's fine. it's a cheap stock. not as cheap as ibm. i think the comeback it's had has mostly been about people saying, look, great franchise. we don't see the results yet. stocks got too cheap. this is an eye of the beholder stock. you can pretend it's a cloud business, pretend it's about a.i. or you can say it's kind of a dinosaur. it depends on how sentiments turn. >> what do you think? >> it's an important point. it's a typical tech stock. it becomes less imperative on the googles and the fang trade and more interesting as em and the rest of the crew and this may be a bellwether of cyclicality. the guidance and beats, both important in affirming that we have the change in the cnclicality.

>> what will happen next? do they all fit into that? are we at an inflection point here? >> i think so. almost every data point we looked at, it is the biggest head shake i've seen or things are starting to fall and get better. deutsche bank, greece looks good. european banks generally look good. e.m. starting to improve. commodities. yields going up. all of these things are -- again, there's so many crosscurrents that it's hard to imagine that entire market has it wrong. >> finally, lindsey, what do you think the take away is? maybe from the reports this afternoon or up to this point in the earnings? >> i think the take away is that earnings are good. they're not extremely great and i think that the focus right now is really on the political rhetoric of what is going to happen with the trump administration and so earnings aren't as much at the forefront as they should be. >> we'll be covering it wall to wall. thank you so much for joining us here to kick things off. coming up, treasury secretary designate steve

mnuchin taking his turn on the hot seat. we'll have the highlights on the confirmation including how he came on the foreclosing on homeowners. president-elect trump has said he would get rid of the dodd-frank law. banks came out against that. you're watching cnbc, first in business worldwide. ss ts. spon) loit

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welcome back. shares of ibm up 3%. investors are digesting the earnings report. $171.70, significant. that puts it above the $170.43 level at which we estimated they go into the black. that's on a pre-dividend basis. >> a little bit better. obviously it had not been one of the better performers since he did buy it. didn't spend all that much time below the 170 level. >> traded huge among buffet watchers. mumber and buffet had -- they used that as an example of the company not going outside of the area of core competence.

it seems like it could be a mistake on their part. you look at how it's performed, maybe you have to rethink that. >> there's no way of getting around the fact that it was a relative mistake. there were many more stocks you could have bought. it did raise a lot of criticism as well, you know, buffet going against his i don't buy technology stock. that was a determination that ibm is not speaking much about technology stock, services company. >> now we know that here they have shares of apple and they're in the airlines. again, ibm just slightly above the level that berkshire hathaway goes into the black. >> we're saying it's not held berkshire hathaway stock back. >> if it was 25%, 40%. housing foreclosures and admissions of that highlighting a contentious confirmation

hearing. eamon javers joins us with the details of that hearing. eamon. >> reporter: hi, kelly. they're all wrapped up here at the senate finance hearing. it was a contentious hearing at points but some of the fireworks were between the senators themselves versus senators and steve mnuchin. i had the opportunity to talk with mnuchin and senator orrin hatch and get their sense of how it went. here's what they had to say. >> how did it go, sir? >> terrific. great opportunity to speak to the committee. >> how do you feel about some of the tough questions you got? how did you feel about that? >> i enjoyed being there with the chairman. >> question about 1 west, do you feel like you were able to clear the table of those questions? do you still have some questions? >> i'm sure he probably did. no question about that. i think they thought it, too. >> ultimately though do you think your nomination is in good state at this point? >> appreciate the opportunity to be here with the committee. >> he's going to get confirmed.

he'll be the best treasury secretary i've seen since some democrats far earlier. so we've got -- we've got a really top notch person here who i -- >> can you clarify where you stand on tax reform, sir? you laid out some of the broader ideas, but can you give us a sense of border tax, where you think we should go on obamacare taxes and the rest? >> i think you heard a lot today at the committee. i'm with my family. >> he's not going to do that right now. this is a complex issue. we all know we have to do faction reform. the question is what form. we'll have to get everybody together. we know a lot of directions we want to go. we'll just have to see what happens. >> thank you, sir. >> all right. >> reporter: so you heard it right there from chairman hatch, he thinks that mnuchin will be confirmed and he thinks he's going to go on to be a great treasury secretary. we'll see if democrats agree with that assessment. a lot of them probably don't.

senator widen gave blistering criticism of mnuchin at the end of the hearing. overall, guys, i have to tell you that it doesn't look like democrats were able to lay the kind of body blows into mnuchin's fortunes that they thought they could earlier in the day. this was not a nominee that felt like he was on the ropes by the end of the hearing. >> that was an excellent wrangling job. glad you could bring the whole tape to us. >> reporter: thanks. sometimes you have to just jump on these guys in the hallway, that's what we do. >> the whole -- everybody had to come get around you. you got him on camera, you got his reaction of orrin hatch fascinating there. thank you again, eamon. mnuchin, talked about the dollar today in a way that contradicted trump's earlier remarks that a strong dollar was hurting the u.s. >> the u.s. currency has been the most attractive currency to be in for a very, very long period of time. i think that it's important and i think you see that now more than ever.

i think when the president-elect made a comment on the u.s. currency, it wasn't meant to be a long-term comment, it was meant to be that perhaps in the short term the strength in the currency as a result of free markets and people wanting to invest here may have had some negative impacts. >> joining us now for more on king dollar or not is david with merrill lynch. thanks for joining us. >> thank you. >> what do you think -- the dollar today was up a quarter point. it's over 101. the dollar index. it's near the recent highs. is it going to keep going higher, do you think? >> i think so. i think, you know, there's been a bit of profit taking the last couple of weeks going to inauguration. i suspect the day after the inauguration you're going to start to see people piling back into the long dollar trade. i think the fundamental story is compelling. the fact is consumer confidence, business confidence at a decade

high. trump is about to basically unveil details about the fiscal reform program. i think on top of that you have china more conciliatory yesterday. trump now basically pulling away from his threat earlier in the election saying he was going to level the china currency. i think a lot of the noise is about to subside. i think now it will make it easier for clients to actually get back into the sort of long dollar, high rates and high dollar trade. >> david, so, if it basically is maybe as simple as, you know, the united states has faster growth, higher yields and the fed is going to be more active than other central banks, that's all i guess in the context of the whole dollar trade, but what policy suggestions or what policy movement do you think the dollar's going to be sensitive to since we did see it back off when, for example, there was a little bit of a backpedal on the border tax? >> i think it was -- i personally think -- you know,

the way i think about the trump presidency is a contradiction for the u.s. dollar. trump has two main policy pillars, fiscal policy and trade policy. his fiscal's policy is about tax cuts that's going to be bullish to the dollar. it will basically bring growth back to the u.s. however, his trade policy which is about bringing jobs back to the u.s. actually requires a weak u.s. dollar. therein lies the biggest conflict. do you want a strong dollar or weak dollar? the dollar will be much more volatile going forward. i suspect the president-elect or for that matter, you know, the nomination for secretary treasury basically leaning into a dollar surge i think going forward because ultimately, you know, as -- >> yeah. >> go ahead, david. >> and i think that ultimately is going to limit the up side, the absolute up side of the u.s. dollar. it will slow down the a scent of the dollar climb and most importantly investors want to

make money from being on the dollar, i think the ratio is probably not going to be as good as the case last three months. >> risk adjusted ratio. kind of on that point, i was going to ask what do the companies do who have dollar and foreign currency exposure? do they have to start paying more to put more hedges on? if they kind of get that wrong it could also be expensive so how do you expect corporate america to handle this? >> i think corporate america, the way they're thinking about this, obviously you're going to have this whole repatriation thing. i think there's no question. everybody understands. we can talk about it today again. i think a very important part of what they're going to do in the first 100 days is allow u.s. companies to bring back home the 2, $2.5 trillion on earnings abroad. it's true. a lot of this money is in u.s. dollars. probably as much as 30% of this money at least according to our analysis is not u.s. dollars. they'll have an opportunity to bring this money home. you know, pay lower tax rate than they would otherwise. i think that clearly is going to be a reason for a lot of

corporate and starting to prepare the way. this is a question that people are starting to basically become very concerned about potential trade war, potential weakness of the r&b that could trigger further weakness. there's no question, a lot of the people i'm talking to within the s&p universe, a lot of them are having a lot of discussion. >> all right. little side boon for wall street there. david, thanks for joining us. >> thank you. >> david wu talking about the dollar. the mnuchin hearing wasn't the only heated one. rick perry, we've got those highlights coming up. first though jane wells is live from the mexican border looking at how trump's inauguration plan is impacting business owners, jane. >> reporter: kelly, americans on both sides of the fence politically when it comes to immigration here. here mexicans are on both sides of the fence literally.

if this fence becomes a wall what impact will it have on businesses on the north side. that story live after the break. boe ac l u t mes t hp t, rngrelats

welcome back. we're watching shares of ibm which have now turned negative by 1%. again, watching that level on ibm at $170 where it appears that berkshire hathaway goes into the black. we're slipping slightly below that, at least you have $2 billion worth of dividends collected in the meantime as i

understand it from that investment. ibm shares have gone from a 3% gain to turning negative by 1% after hours. we'll bring more details to you as we get them. building a border wall with mexico has been one of president-elect trump's boldest announcements from his candidacy. a day away from his swearing in, it's creating jitters. >> kelly, check it out. more than 27 million people a year cross from here, mexicali, calexico. these sister cities are tied together in more than name, ties that could be strained under the new administration. some say it cannot happen soon enough. if you check it out, rancher has a ranch that butts up against mexico. over the years he has spent tens of thousands of dollars caused by trespassers. he's hoping trump will build a better wall to slow people down.

>> i'd love it. you see, they can cut holes in this and drive through and have. >> now here the other problem is will it provide a strain or create strain on businesses which depend on the legal mexicans coming across to shop and spend? almost all the shoppers around here, almost all of them are from mexico. at garland's, sales are down double digits. how do employees feel? >> disgusted. nobody likes it, you know? what's there to be happy about when he starts criticizing how mexicans in general are so bad. there's nothing positive to say about that. >> reporter: now one reason sales are down is because the peso has fallen. it's been falling a lot. a lot of people blame that on trump's tough talk about nafta and changes to nafta. those changes could come starting tomorrow. >> jane, you're talking to people that have had businesses on the border for as long -- you

know, their careers. it's their livelihood. i mean, are they thinking that this goes away? what happens if this business doesn't come back? >> reporter: oh, if it's gone, it's gone. here's the deal. i mean, you have this fence already. people get over and under this fence. look how tall -- take a look at it. it is a really tall fence and yet regularly the border patrol tells us people are getting over it. so if there's a wall, you may still have the same issue. the question is, for example, the manufacturing that is integrated across the border, $4 billion in san diego alone exports go across to tijuana. it goes back and forth. that's the sort of thing with nafta changes that could permanently be changed. if people don't have pesos to spend, they won't be coming across. those are the things of people

that have been here for generations are concerned about. >> you can understand why. jane, thank you so much. jane wells, down on the border for us. time now for cnbc news update with sue herera. >> hi, kelly. here's what's happening at this hour. pentagon officials say american b-2 stealth bombers struck two isis training camps in the libyan desert wednesday night. defense secretary ash carter making the announcement at his final briefing. >> to libya, our african command conducted airstrikes south of sert. the airstrikes killed more than 80 isol fighters. >> the pentagon also saying it sent four more detainees from guantanamo military prison to other countries. the inmate population is now down to 41 but that is still short of fulfilling president obama's long-time pledge to close the controversial facility. and the price of the forever stamps is going up to 49 cents on sunday. they've been at 47 cents since

april and that's when the government temporarily ordered the postal service to drop its prices for the first time in a century. post cards, international mail and heavier packages not affected. at least not yet. we'll see. >> i thought they just lowered it. now they're already bringing it back up and then some? >> yes, they are. >> what's the point of lowering it then if it's not going to stick, no pun intended for at least a year or something? >> i agree. no pun intended. i don't know why they did it. i'm not sure why they made them roll it back other than they've had increases on almost a yearly basis. the government made them roll it back. here we are again. >> i just made 40 cents on a pack of forever stamps. i have three of them. that's $1.20. >> i have a lot of them from the holidays. >> secondary market with stamps, kelly. >> see you later. energy secretary designate rick perry making two reversals on his past statements. we'll bring you the highlights on his confirmation hearing next. including why he no longer wants

to abolish the department he wants to run. trump arriving in washington, d.c., ahead of tomorrow's inauguration. where does he rank among our richest president? i bet you can figure out the answer but it is later on the "closing bell." e lexu,d frtisr. .

welcome back. here's a look at how we finished in wall street. it was red arrows. the dow dropping 19, the s&p down 8 to 2263. nasdaq and russell was the worst performer. nasdaq down 15 to 5540. russell dropping 12%. steve mnuchin wasn't the only trump cap net pick on the hill today. former texas governor rick perry tapped to head the department of energy had his hearings. john harwood was monitoring that for us. has the highlights. hi, john. >> hi, kelly. one of the curveballs that rick perry faced when he went into his hearing today was the report that came out before it began that the trump team was contemplating severe budget cuts in the department of energy. not for the only time in this hearing rick perry handled democratic questions about that with humor. >> my question is do you support these cuts? yes or no? >> well, senator, maybe they'll

have the same experience i had and forget that they said that but -- >> we're counting on you. we're counting on you to educate the incoming president. >> my commitment to you and the members of this committee is to obviously not only reach across political aisles but also to work with the men and women who i have an extraordinary amount of respect for at the department of energy to find the solutions to these many challenges that we have. my past statements made over five years ago about abolishing the department of energy do not reflect my current thinking. in fact, after being briefed on so many of the vital functions of the department of energy i regret recommending it it's -- its elimination.

>> thank you for coming into my office. did you enjoy meeting me? >> i hope you are as much fun on that diet as you were on that couch. may i rephrase that, sir? >> please. please. please. oh, my lord. oh, my lord. >> well, i think we've found our "saturday night live" sound bite. chances are good that will end up on "saturday night live" just as rick perry did for that oops moment that he eluded to earlier. chances are good that he's going to end up as our treasury secretary and get confirmed. >> he's got one over on al franken. thank you, john harwood. let's send it to dominic chu. >> what we have are shares of sky works up 7% on 610,000 shares of after hours volume. this after the company reported earnings of $1.61 a share

beating the analyst's estimates. revenues $914 million versus $903 million for the estimate. so beats on both sides. they see current quarter revenues $830 million. that also beats the average analyst's estimates of 3.18. that beats the average analyst estimates of $1.39 and there's a new $500 million share repurchase program shares up 5% year to date, 30% over the past few months. kelly, the reason we care about sky works, it is an apple supplier. back over to you. >> all right. a 7% pop for that supplier. thank you, dom. steve mnuchin also calling for a 21st century revamp during his confirmation hearing on the hill. what trump's pick could mean for the banks and financial regulations when we come right back. v cl e?a llir t tao is

mota welcome back. treasury secretary designate steve mnuchin on the hill. here's what he had to say about bank regulation and glass siegel. >> i think that separating out banks and investment banks right now under glass-steagall would have liquidity on the banks. i think in terms of looking at a lot of regulatory issues the administration will look at glass-steagall and what i refer to as the 21st century

glass-steagall and have a view as to what's appropriate. >> joining us now for his reaction is david ellisson. you know, we know in broad strokes where the administration seems to be going when it comes to phi napsal reform but then you hear the testimony today admittedly meant to smooth the transition process. does it give you any pause of what kind of revamp we're talking about? >> well, i think we've had a lot of new regulation the last five or six years. a lot of it has been good, some of it maybe has been a bit of overreach. i'm not a big fan of going back to where we were certainly because i don't want to go through '08, '09, '10 again as a portfolio manager. i think whatever they do, i hope they slow the process down, let people digest it and make inkremtal changes that are really just tweaking it. >> dodd-frank will repeal -- >> no. >> okay.

>> i guess the question i have, given how bank stocks have performed, do you think that investors collectively have actually sort of booked some of the potential up sides of regulatory changes or is this mostly about what's going on with rates, the economy and everything else? >> i think it's all of those things. certainly the stocks ran on a lot of hope. so we have that now. now the question is will that hope turn into what we have. but i think you have if rates move higher the stocks will do better because the core business will get better. doesn't matter what regulation happens, doesn't matter what happens with credit, it matters with rates. this is a rate play. we've had a 30 year decline in rates. >> what if rates don't go that much higher from here? >> it's not that bad. companies are earning good money and there is tremendous amount of money to cut costs and right size the business. you built the business on a 30-year decline in rates. that's why they're so big because the asset prices always went up. now you're going to build a business on flat to up rates which means a totally different business and that's what we're

moving towards. that's what they have to move towards. so you want to know when the best managers are going to make the best adjustments. >> you have a couple of big banks. bank of america and goldman. a sun trust, eagle, midland, iberia bank. talk through are these all sort of stock specific or are there broad themes here? >> well, certainly, they are specific. they are making some choice. i think bank america is the biggest of the best guys because it has the core franchise of lending and it also has the ability to revamp merrill lynch and all of those businesses and right size them either with people, expenses, or just get out of those businesses that they really don't -- doesn't make any sense anymore. the other companies, they're more -- they move towards sort of it's a wonderful life franchise. that's where you're going to make consistent money. they're forcing out the non-banks. they want people to build the nondepository franchises. >> except for the part where the building and loan was insolvent.

>> i didn't follow that. i forgot that part. >> i'm actually curious because we hear about the vogel rule, dodd-frank. i'm wondering about the m&a environment and wondering if that could get more energy into it. i don't know if it's because of regulatory chill. there hasn't been as much m&a. >> a lot of it is regulation. the bigger companies have taken two years to clear a deal. it's just too much time. >> and still might fall apart. >> so the idea now is to hopefully they will allow a few more of these deals to go by. the industry orders are 6,000 banks. it's okay if we have 3,000. it may take three years but having a more consolidated industry is better for the command and control of the economy which we didn't have. the s&l crisis. here the big banks failed and it created problems for everybody. >> we're stuck either way? >> no. the thing is the fed is taking control of this. they realize that they needed to take more control. they have.

now we're not going to give it back. >> that's the key. >> i think the issue is that we've gone from a mark to market accounting structure, right, to -- or from the old structure was the higher cost to market now it's mark to market. when you have a mark to market banking system you need to have more liquidity, more capital, more controls than you did back when you had my father's mortgage at 5%. we're not doing that. >> a lot of changes afoot here. david, thank you so much walking us through that. >> you're welcome. and forbes tallying donald trump's net worth at $3.7 billion. is that enough to earn him the title of wealthiest u.s. president in history? a look at the richest men to run the country and how trump stacks up next. and coming up on ""fast money."" david stockman will weigh in at 5:00 p.m. eastern. rama plfohas thco

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welcome back. donald trump is a multi-billionaire businessman and set to be inaugurated as the 45th president of the united states tomorrow. robert frank is here with a look at the five wealthy presidents in history -- does anybody come even close to trump? >> they come closer than i thought and donald trump is unlike any president before him in so many ways including his extreme wealth. here's a look at he compares to his presidential president sesser in terms of his personal will finances. >> the we will will thinkiest u.s. presidents are at number five, james madison who would have been work $101 million at his peak. fourth, andrew jackson at 119 million bucks. emassed largely from real estate on the tennessee front tear.

third, teddy roosevelt at 125 million. born into a prominent industrial family he blew his inheritance as a young man before making big money on land holdings later in life. in second place, thomas jefferson at 212 million. his five thousand acre plantation was an extravagant project at the time. it was also one that would deplete his fortune once he left the white house. our nation's wealthiest president until now, george washington who at his peak was worth $525 million. impressive but still more than 3 billion short of the newest member of this prestigious club. >> i know you're probably wondering why jfk didn't make the list. but it's unclear how much of that wealth was actually owned by kennedy himself because we don't know the exact structure of the kennedy family trust.

joseph kennedy in today's dollars would clearly be a billionaire if not a multi-billionaire but jfk we just don't know enough. >> george washington left land canal stock which was liberty college at the time renamed washington college and washington lee, surprising to me that his wealth was so vast. >> yeah. we don't -- we tend to think of the wealth in the cabinet and in government today as this new that's the result of some new inequality and we forget that at the time of our country's founding, many of the leaders were wealthy and they did a really good job, so just because you're really wealthy doesn't mean you can't be a great democratic president or found a country like george washington. >> small d. >> yeah, small d. >> we're just a day away from the inauguration and minutes away from boeng the american

express. coming up on word wide exchange tomorrow. >> we are here in davos, switzerland where we have had a terrific week. >> absolutely awesome fun throughout a couple of slips on the ice aside we've had a -- >> you saved yourself. >> i saved my receive. great setting and great interviews and more to come tomorrow. >> join us tomorrow morning starting the at worldwide etch change 5:00 a.m. eastern. .. at3s

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>> welcome back. let's check on shares of ibm and american express this afternoon. both released their earnings as we transition from hearing from the banks to more of the rest of corporate america. they were initially up 3% so we've had about a 5 or 6% swing here. ammex down less than 1%. >> these stocks are in a similar position where they had a really tough time going into last year. they basically were considered to be these dinosaurs. they had a partial rebound very dramatic, and now it's a matter of show me. i think in both instances it's a

matter of can they actually show a little bit of growth this year. so i do think it's interesting how the street is trying to reevaluate. also in both cases only a quarter of the analysis are recommending the stocks. >> i don't know about you but here's a couple things interesting to listen for. american express talk about the jp morgan chase sapphire card. when it comes to ibm, they made the point 41% of their revenues are these strategic initialives. they're seeing good growth there -- >> i think that's a sales job. it's a sales job to say is this a real thing that you're categorizing, is it something you can really hang your hat on? is it just a repackaging of the business in a different way?

i think it's oracle as fought when they're trying to get past the legacy business. >> $170.43 goes into the black. >> somehow i don't think mr. buffet is sweating it so much but it's interesting he might go even. >> that does it for "closing bell" and "fast money" begins now. ♪ >> you hear the music and you know what that means, the countdown is on. just about 18 is hours away from president-elect donald trump officially being sworn in while the world focuses on washington it was wall street that had the jitters. tomorrow could be the moment of truth for stocks in the trump rally. do you buy the dip or do you sell the inauguration? >> i think