phrase, big, bold, energetic, enterprising and resilient, always looking to the next horizon. sure sounds like our country and it sure sounds like donald trump. [ applause ] >> our president has surmounted formidable challenges getting to this moment. he's been underestimated often, but he never let it stop him from succeeding. we're wishing him similar success as he turns to the charge of governing. we face many challenges, but we've been challenged before and

emerged strongly. we live in changing times, yes, but some things endure, and we celebrate one of them today. this inauguration is a reminder of our common story as americans, and on this most uniquely american of occasions, i ask you to stand and join me in raising a glass. mr. president, may you find every success in the years ahead. may you unite our country behind a common vision and renew the promise that makes our country so great. hear, hear. >> mr. president.

>> thank you very much, mitch, and paul, and our great vice president. i don't think anybody wants to hear me speak anymore today, right? so we'll cut it short, but we have so many of our cabinet member here'ss -- members here. i see our generals who are going to keep us so safe. they're going to have a lot of problems, the other side. they're going to look at them. if i'm doing you, i'm dofg a movie, general mattis. even chuck likes general mattis and general kelly. so -- and we had a very interesting talk. kiddingly, he thinks we're doing great at the cabinet level, but we're going to do just fine. we're going to do just fine. but you know, i'll tell you, there is something that i wanted to say because i was very

honored, very, very honored when i heard that president bill clinton and secretary hillary clinton was coming today and i think it's appropriate to say. and i'd like you to stand up. i'd like you to stand up. [ applause ] >> and, honestly, there's nothing more i can say because i have a lot of respect for those two people, so thank you all for being here. and we're going to have four great years, hopefully, of peace and prosperity. and we'll be working very, very hard. our cabinet's lined up and ready. i know eventually chuck's going to approve them, i'm sure. i really believe that.

and we're all dealing together. we all want the same thing. we're all good people, whether you're republican or democrat, doesn't make any difference. we're going to get along. again, thank you very much. it's an honor and, roy, you have done a spectacular, you and tom barrett. [ applause ] >> i want to thank you, thank you. thank you, everybody. thank you. thank you very much. [ applause ] >> two quick final things. two quick final things. you can remain standing if you want to. shhh. so, quickly, two things we need to do as we leave. one, just to mention the gifts, the mementos of this event, there are some note cards and a

really great box put together by the government printing office, but the note cards representing all three branches of government and identified with this event this day were done by st. louis artist, friend of mine, ed fisher. there's a pen and a letter opener in there, a little business in missouri, john and debby ortman and ortman woodcraft did that, mostly made out of fallen trees, and then there's a piece of antiglass that would be dedicated to this event and appropriate to put anywhere on your desk and house to put it. to close the event today, father conroy, the chaplain of the united states house of representatives. >> let us pray. as we leave this place, we give you thanks, o lord, for the meal we have shared and for those who worked hard to prepare and

deliver it to us. may we be always grateful for the kindnesses we receive. we thank you as well for the celebration of this day when our nation once again models for the world the greatness of peaceful transition of power. we ask a special blessing upon our new president, donald trump. give him an understanding heart to discern between good and evil. may he be strengthened in his work and grow in understanding as it proves ever attentive to the american people. we pray that he might become his best self. bless as well all those who are in place to exercise power in our nation, save them from seeking those things eschewed by solomon, long life, riches for self and the lives of enemies

and impel them to seek the gift of discernment so as to understand justice. lord, may the people of this nation stand with our president and all our leaders to face any challenge, endure any difficulty without fear, learn how to accept every success and every failure with grace and support our leaders with encouragement and prayer. as we move forward this day and through all days may all that is done be for your greater honor and glory. amen. >> amen. >> ladies and gentlemen, please remain at your seats as president trump, vice president pence, the joint congressional committee on inaugural ceremonies and the official party depart national statuary hall.

we're watching the official party departing statuary hall. they'll make their way now to the parade route for the inaugural parade that is kicking off as we continue our coverage of the inauguration of president donald trump. i'm kelly evans in washington. and there we can see the president's son making his way among others out of there. and then they will -- trump and the official party, anyway, will be leading the ceremony. we'll show you all of that in just a moment. we also as we bring you in here and up to date want to know that the market, it's a little bit higher as we enter the last hour of the trading day. the dow has been a pretty interesting tell about how the

day has unfolded. it started up about 90 points when there was a lot of anticipation about this inaugural address. it dropped. the nasdaq 100 went lower. tax policy, for example, wasn't mentioned but, again, there's probably a time and a place for that. markets then making up some of those losses today. dow up about .4 of a percent now. the nasdaq composite up a quarter. the small cap russell broadly up about a quarter of a percent as well. i'm here with john and carl and andrew russ sortkin joins us. >> it's been a remarkable day. it's been a remarkable day to see this transfer of power. he talked about it being a peaceful transfer of power. i don't know if presidents traditionally talk about it. >> i'm not sure usually it needs to be stated. >> we tend to take it as a given. >> that's to the point. it's always implicit.

i remember it being stated actually in a story my father wrote on the front page of "the washington post" when richard nixon resigned from office and it was about how there was calm in washington, peaceful transfer of power, extraordinary circumstance. this is another extraordinary circumstance where we feel impelled to say it out loud. >> right. >> interesting as everybody leaves statuary hall to hear the speaker toews vice president pence, leader mcconnell toast president trump and then to watch the president ask the clintons to rise and say i have great respect for those two people. we're all good people whether you're republican or democrat, it doesn't make any difference, answering calls among some to start unifying the country through his words. >> and i think this goes to a point, carl, that we've been talking about all day. literally or seriously, he -- at the end of this battle he has

won the battle. he's now president of the united states. he says to bill and hillary clinton, stand up, good people, respect you. during the campaign corrupt, criminal, guilty. >> guilty as hell. >> lock her up. it suggests, again, that words don't mean all that much to this president beyond the moment in which he says them. context matters. circumstances matter, and that may be something to look for in what results he produces, not always the words that he uses, protection is going to bring us prosperity and strength, but maybe the policy result will be different. >> here were the words he chose today in his inaugural address, really hitting home the message that washington has flourished while the factories have closed. we are transferring power from washington, d.c., he said, and giving it back to you, the people. he said that time and again. this is your day. this is your celebration. the united states of america is your country, and in a way this is the people's day, whether

they're here, whether they're the people -- whether they're the people who are two blocks away, carl, as we know -- >> protesting. >> -- protesting, throwing all sorts of -- i don't know what they are called, andrew, you can enlighten us. firebombs? there were trash cans on fire, newspaper stands knocked over and the like. >> by the way, there was a vision and a very positive note, both at the beginning and the end of the speech. there was as we were talking about off screen behind the scenes, there's a dark moment there. there's a particularly dark moment and the question is, you know, how dark is it really? and what does that mean? you know, you talked about the circumstantial nature of when he says certain things. i've heard from people today who have said perhaps he should have given a nod to hillary and bill clinton who were sitting there outside, not later when most of the people were actually going to see all of this. so there's still a little bit of -- >> and on the dark part, i've never heard a presidential

inaugural referred to american carnage. i've heard people talk about problems. ronald regan came here in 1981 and said we're in a crisis and the government's not the solution, government's the problem, but to describe the landscape of factories as tomb stones and talk about the carnage in america, that is a -- a very particularly directed piece of rhetoric that does not describe the america that vast amounts of the country live in. >> we've been asking for responses to that line, that term. bob johnson said, i take issue with the word carnage, but you can't dispute the facts. went on to talk about the plight of certainly black americans in this country from an income standpoint. larry kudlow on the other hand argues it's a way of saying, we can fix this. this is larry's words. it's manageable. trying to take the latter half of that speech. >> right. >> you've got to start from somewhere to get to somewhere. >> you have to start somewhere

to get somewhere. we were talking about this before we came on. one thing i noticed before walking over here, i was sort of walking over here during the throngs of people. he mentioned african-americans today. very few african-americans in -- out there today, very few minorities out there. it goes to the issue of how divided this country remains and the job and challenge that the president is going to have over the next four years. what he says starting today to try to bridge that divide. >> and can he make a broader group of americans feel that when he says you the people are now going to be the rulers of this country for the day forward, can he make a wider group of people believe he's talking about them as opposed to someone else? >> right. >> remember, his support was almost entirely from white americans. did very poorly among african-americans and hispanics, although the exits indicated maybe he did slightly better

than mitt romney, nevertheless, poorly. and for him to move from the 44% approval he had in our poll this week to a broader level of support, he needs more people. >> so he was elected. >> right. >> he was elected. his numbers were not dramatically lower. it wasn't like it was some shock -- what did abraham lincoln have, 40% of the popular vote as well. if you listen to his description of the country, inner city poverty, rusted out factories. gangs, crime, and drugs that have stolen too many lives. we've talked about the opioid crisis. >> all true. >> it's epidemic crisis. it's robbed our country of so much potential. what are they now saying? they're saying we want 4% new growth, 25 million new jobs. these are the visions -- one of the critiques about hillary clinton's campaign from perhaps her husband is it did not focus enough on jobs and the country. that's what it all comes back to. >> we're going to see. in terms of the division and whether the country comes together, it may take two or

three years before you actually have a real answer. people talk about the first 100 days, but in terms of where the bar is, how long be the honeymoon period is, you might need to extend it out farther to judge where this is worth. >> bank of america and merrill lynch is focusing on the first 200 days. >> little buffer zone. yeah, i think we had bill gross on a few moments ago. talked about some of the more structural challenges the economy continues to face. automation, productivity, demographics. those are all going to be things the president will have to address. they're not going to be solved in the first 100 days or 200. >> here's what traders will say about the message today. it was undeniably protectionist. in many ways and forms about the borders, perhaps about trade. >> right. >> americans first, our interests. >> you think the protection line -- >> that's not the message that wall street actually wants to hear. >> right. >> if you sort of say where does sort of the euphoria and the markets stop with the message of the president, it's around that

line of, well, don't do anything necessarily. you know, if you want to get to 4% this is not necessarily the path. >> the protection line, was that a protectionist line, about open trade, or was that about protecting and managing the country? >> i think it wasn't only about open trade but it encompassed that idea. that came after a long rif about shuttered factories and every decision i make on trade, on immigration is going to be with those workers in mind. kelly just identified the challenge, right? there is a way of thinking within the republican party that says the way to accelerate growth beyond what we've got, and 4%, by the way, is a target that many economists are skeptical that we can get to, but nevertheless, cut regulation, cut taxes, maybe you get more growth than we've had so far, but they don't prescribe trade war and an immigration shutdown to achieve that and we'll see if he can square the

circle. >> let's see how things are on the ground playing out here in washington. we've mentioned the protests taking place a couple of blocks off the parade route. the parade is about to begin. our eamon javers has caught up with the scene. what's the latest? >> reporter: hi, kelly. 13 and k northwest. this is where the protesters were burning some of the debris that you saw earlier. that is over to my left. the police officers have just come through here and pulled a bunch of folks out of this area, and a whole bunch of protesters chanting, no trump. no fascist u.s.a. all went charging down this direction and they've gone off about half a block from here. we have police helicopters overhead clearly patrolling the situation. i can also see police spotters, it appears, on some of the buildings in the area. this is fairly localized though. we're talking about one square block in terms of the area where the disturbance actually is. and right now it's settled down quite a bit. there's a lot of media here like

we were saying when i was on set with you guys just a few moments ago. these things can appear a lot bigger on television than they are. i just walked from where you guys are to where this protest is just over the past few minutes and a block or so from here you've got vendors who tell me they're selling rots and lots of -- hey, come on. come on. knock it off. knock it off. so everybody is a little hyped up here as you guys can see. but a block or so away -- all right, guys. thank you very much. thank you very much. all right, guys. so you can see there's a lot of energy here in the crowd to say the least, but a block or so away they are selling t-shirts. they're selling pro donald trump t-shirts. this crew is obviously not pro donald trump, but this is a localized situation. ma'am, can you stop? can you stop? thank you. guys, we're going to toss it back to you here. this is getting a little too loud. we're going to toss it back to you. thank you, guys.

>> eamon, thank you. eamon jaffers there in the middle of the scrum. they're happening out in san francisco, too. josh lip ton can tell us about that. josh? >> reporter: kelly, here in san francisco roughly 1,000 protestors making their way through the city. now this protest here started around 9:00 a.m. local. along the way making a few stops including wells fargo. that of course is where board member, elaine chow, also the trump owned bank of america building and the sf headquarters of goldman sachs where steve mnuchin, and protesters told us why they are taking to the streets today. >> me and so many people i know are furious about trump and his agenda. we think it's dangerous for people, particularly marginalized people, people of color, disabled people, women. yeah, muslims. it's terrible and that's why

we're out here. >> i teach a lot of minority students and students of color in the city who are really affected by it. some undocumented students and their families, so i just want to show my solidarity. >> i'm out here today with, you know, hundreds of other people because we believe that trump actually does not represent the majority of this country. he did not win the popular vote and we are really against all of the hate-filled policies he's saying which are going to attack muslim communities, women, immigrant rights. we're standing here together because we need to reclaim our democracy. >> reporter: now protests are going to continue in the bay area over the weekend. remember, it's not just protesters. at least 15 california representatives did not attend this inauguration, including senator dianne feinstein. guys, back to you. >> thank you, josh. john, i guess the idea was that these protests might pick up steam throughout the evening, right? it wasn't this morning that this was really happening? >> well, i think they're trying to build especially to tomorrow where the women's march, so

called, although it's not going to be only women that's going to gather here and see what sort of a crowd they can muster. >> the other objective is they want a split screen during this parade. there is no question no matter how big or small the protests actually are. many media outlets are going to take at least pieces of this protest as this parade is going on. >> including the bonfire by the trash can there. >> yeah. although in a way that's -- that's what this reflects. >> right. >> if there's -- we've talked at length about this, about people who are vehement supporters of the president and came from all over to see him and the people who feel very strongly opposed to his taking the presidency. by the way, the parade is about to get started in a couple of minutes. it's bringing people from all over the country together whether it's the boy scouts, disabled and paralyzed veterans. my hometown virginia military institute, we're going to see quite a parade.

it's going to take a couple of hours, andrew. all of this in a way has been a lead up to that. >> two more hours. it's a lead up really i would argue what's going to really begin in earnest next week on monday where we will finally hear about the true policy prescriptions, whether it be obamacare, some of the tax issues, et cetera. >> that's when we get to the real stuff. >> the rubber is going to meet the road. they're working hard over the weekend to get out that thing. the market. we're all watching the parade but the market is going to be watching what we hear about on monday. >> we're going to take a quick break. we'll be right back to follow this inaugural parade here on cnbc with the dow up 60 points. our coverage begins after this. atgip orim

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welcome back. i'm bill griffeth at the new york stock exchange where we've seen a minor tug of war between buyers and sellers especially during the noontime hour on wall street. the dow was up 90 points, fell during the address. come back up 63 now. s&p up 4, nasdaq up 7 and russell is up 3 points. the dollar has turned lower today and yields in the treasury have turned lower a little bit today as well. definitely, kelly, wall street has taken a back seat to the events in washington. back to you. >> yeah. i heard the floor of the new york stock exchange erupted in cheers as the president-elect at that time came out to begin the whole day's festivities. now the inaugural parade hasn't

kicked off yet. it was scheduled to begin at 3:00 p.m. eastern time. kayla town has a sense of what's behind the delay. kayla? >> reporter: kelly, the parade is kicked off by the president and the vice president as they leave that lunch on capitol hill. we did see live when that lunch wrapped up so they are making their way to kick off the parade, but i am at the end of the parade at lafayette park. you can see i am overlooking the white house. there's been a lot of talk about what the crowds look like here, whether the crowds are as big as they have been in years past. so we talked to some officials and some security guards along the route and they said that it is, in fact, a little bit smaller than in years past. there are fewer participants in the parade. there are 8,000 participants from 40 organizations taking part, that was as of december 30th, the announcement from the president's inaugural committee. more than 3,000 groups applied and of course 40 organizations

were selected. but that is smaller than president obama's inaugural parades, both in 2013 and in 0 200. also, the weather could have something to do with it. people came out hours ago sitting in ponchos shivering. some of those people left. we talked to some of those people as they were coming into the risers. it's important to note, you can't acquire these tickets outright. you can't buy them online. you have to be gifted them by someone who is involved in the inaugural process. we talked to a service member from fort worth, texas, who was given a ticket to sit on the risers and watch the parade from one of the leaders in the military where he is from. we talked to donors from indiana who said that they were gifted tickets from the lieutenant governor of indiana and had been long-time donors to vice president pence. we spoke to people from san diego, georgia, a lot of people from all over the country that were here. it was a long trip.

they had to know someone to get tickets to sit on the risers. there were also people looking for the section for where they were sitting. some family members of the band are clustered in certain sections. we are seeing buses come in from the mall, from some of the events elsewhere on capitol hill and dropping off vips in this booth that you can see directly behind me. so there are some spaces that are starting to fill in, but certainly you would expect that with the parade expected to have started at 3:00 p.m., that it would be a little bit fuller than it is. on the calendar for the inauguration, 3:00 to 5:00 p.m. eastern is blocked out. the president said he wanted to make it a 60 to 90 minute parade. he wanted to make it shorter so he could get to the white house and get to work on some of the plans that he wants to put into action, but of course now that it is starting later than expected we'll have to see exactly how long the parade runs. but it will be coming down to where i am at lafayette park and we'll bring those pictures to you when it comes down to us.

>> thank you. we'll check back in with you in just a bit. as you can see, that's the president and his wife, the vice president and his wife standing on the steps of the capitol getting ready to lead this ceremonial regiment citizen group, marching bands and floats that we are about to witness. i wondered the same thing, actually, michelle, which is will he get through this a little bit more quickly. you know, it's a little bit of a late start. maybe we still get to that 5:00 p.m. time. >> because he likes to do things faster than nearly everybody else it seems. >> not wasting any time. >> kayla mentioned he might be headed to the oval office to do something this evening, and that's one interesting point of note. larry kudlow is here along with governor bill richardson to talk about policies. >> kelly, isn't this -- doesn't this detract and, i don't know, kind of takes attention off the main chance here, which is trump and so forth with all of this footage now, and the media is

going to run with this footage? >> you're talking about the protesting? >> oh, yeah. >> they're throwing bombs at each other. >> that story is going to come and go in a day. he's going to be signing legislation tonight that starts to lay out his term. that's exactly what i was going to ask you. we saw him signing bills earlier. doesn't appear like that was anything that had to do with the policies he's about to enact, but maybe as soon as this evening he could start signing those policies out of the oval office. >> yes, or monday. a lot of people speculating on monday. and he's going to go after -- as far as i know, these regulatory roll backs are going to include immigration as much as he can. they may also include obamacare. allot of that stuff is regulatory based. he may go after that. energy. lighten up epa stuff. he may go after that. there's a laundry list of things that may start. >> we have somebody here who may be able to talk about that.

immigration, energy. what are you expecting, governor? >> this is a day of national unity. i want to be as positive as i can, but i listened to the inaugural speech and i heard a lot of populism, nativism. all right. he's playing to his constituency, but i worry that come monday there will be some retrenchment on immigration issues, on the -- on children, on the affordable care act. there's no replacement. i mean, my main goal is to get somebody like larry kudlow in the administration to knock some sense into these people. larry's a free trader. >> any comment, mr. kudlow? >> commerce, i just hope he doesn't do some of these things that he's talking about. >> i'll just say -- thank you, bill. you're wonderful. long-time friend. >> i'm not trying to hurt your prospects. >> no, it's okay. i just appreciate it and appreciate you. one thing i want to say on immigration, i'm not a major,

major immigration hawk, but, but, but, but a lot of talk about changing catch and release at the border for illegals to catch and deport, and i think, frankly, that is good policy. it's inadequate. you have to have a larger framework to reframe the system. i wonder whether trump might not go there. he talks a lot about that. >> well, my worry is there's no hispanic latino in the cabinet. that bothered me a bit. every president, reagan, bush, clinton, obama, i was in the clinton administration. there's no hispanic. there's no democrat in the -- because he doesn't know democrats much in the cabinet. maybe two or three women. all right. that's reflective of the kind of initiatives he wants to pursue. >> one of his economic advisors, gary cohen, is a democrat. >> i like when he says i'm a former governor. i like when he says he likes to keep jobs in the u.s. go after the companies that are

exporting. i think you do it with trade initiatives, with diplomacy. you don't threaten them with a border tax. this is why i want people like kudlow -- >> i agree with you on the border tax. i'm opposed to it. >> the adjustment tax. he tweets about a border tax which we assume is a punitive import tariff. he's not precise with his words. that's different than the border adjustment tax. >> i thought he was talking about the border adjustment tax. >> therein lies the problem. what is he talking about? >> actually, i'm against the border oo justment tax. if you're concocting on air a border tax, i'm against that, too. >> the international monetary fund has projected economic growth because of trump and the u.s. i give him that because maybe tax policy, infrastructure, bill, the growth will get better. china will get -- i'm for that.

i just want free trade. free open markets. >> we just watched the president getting into the car there and here's where the parade route is going to run, along the national mall past the museum, past the national archives, the headquarters of the fbi. it will also pass the trump international hotel. it takes a hard right turn on to 15th street before proceeding to the white house. we were just discussing some of the border issues and among the groups of 40 that kayla mentioned who were invited to come include the u.s. border patrol, pipes and drums, the u.s. customs and office of field operations. >> sorry. >> i was going to say, very heavy military presence within this parade. more than half of those who are marching are going to be members, are going to be either veterans, members currently of drill groups, et cetera or university drill teams, et cetera. >> i have no problem with securing the border as long as it's done properly. we've got to have major immigration reform, we've just

got to. and i have no problems with sending the criminals out of the country. i have -- i wish we could get rid of sanctuary cities. i don't want to get hung up on this as it comes up. i just want to say, governor, what i really liked about the president's speech today was his optimism at the end of the speech, which i really think made it a successful speech. i've read this before, i'll do it again. he said, we must think big and dream even bigger, and then he goes on to say, do not allow anyone to tell you it cannot be done. no challenge could match the hard and fight spirit of america. we will not fail. our country will thrive and prosper. i know he has a rough road ahead. but that spirit of optimism has been lacking in our country. >> but that's good. i wish he had just reached out to folks like not just me that oppose him. we've got to do this together, independents, democrats, republicans. i wish he had said that. >> a lot of people said that about president obama when he got elected and he said, i won.

i mean, you know, this is -- this is politics. tell me, when was the golden age of politics when pure men with no internal flaws were here to serve the people and instead -- i mean, this is politics. this is the way it is. >> that was when i was in office. >> when bill richardson was governor of new mexico, that was the golden age of politics. >> let me ask you about this about the lack of presence of hispanics in the cabinet. it comes always in this context of people concerned about mexico. i feel like people conflate hispanics and illegal immigrants. it's two different groups of people. i don't see why hispanics should feel threatened here in the united states, they're third generation, fourth generation, first generation. >> well, you know, michellmiche it's been historic that a president include out of, what, 18 members, one hispanic. >> quota.

>> there was a good one he could have picked. able maldonado, governor of california. >> that's classic identity politics that many americans are very tired of? >> no. because you know the hispanic community, we're great customers. we buy. we sell. we're capitalists. small business. you know, i -- >> hold that thought. we've got to take a quick break here. the parade is getting underway. we can hear the music behind us and we have just about 20 minutes left to go in the trading day of the markets as well. we're watching the dow trying to hold on to some gains stabilizing a little bit. tom mcclellan predicted this trump victory. he's going to join us coming up. we'll talk to him about the next step for the markets and what the economy will look like under the 45th president. we'll be right back. valcal l

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welcome back. the anti-trump protests kicking back up here in washington. eamon jaffers back on the street. >> reporter: kelly, we're still here on 13th and k. the police have formed a line across the street. across k street northwest, famous for being the district where all the lobbyists are headquartered. today i think a lot of lobbyists stayed home. the police have this area

blocked off and well in hand. some of the protesters, i was talking to them, some of the less foul mouthed protestors. nothing particularly organized here, not any particular group but just a bunch of folks who have come out to express a real disappointment with the trump election. the chant here is who's streets? our streets. you can tell the emotion here. things here at 13th and k have really settled down when you saw the flash bangs, some of the fireworks, some of the running in street. protesters did try just a few seconds ago to stop a car from coming through this intersection. it was able to make it through. some protesters running along behind it. all in all right now what you smell is the burning trash that they burned in the street. you smell a lot of marijuana in the streets as well left over from that marijuana protest earlier today. and also what you're seeing is a lot of people really coming out here to see what's going on out here, including a lot of us, a lot of media. when you see these things on tv like i said before, it can look

a lot bigger than it is. right now what we're looking at is about a square block, several hundred people out here at this intersection, kelly. i'll toss it back to you. >> eamon, thank you. we can hear the music behind us. it's really kicking into gear, the parade, which did start about 20 minutes late. getting into full swing there. it still has a ways to go. 40 different groups. 8,000 different participants. boy scouts of america among many, many other organizations. in his inauguration speech today president donald trump ushered in what he called, quote, the hour of action. >> we will no longer accept politicians who are all talk and no action constantly complaining but never doing anything about it. the time for empty talk is over. now arrives the hour of action. >> one item high on his action list is to repeal and replace

obamacare. joining us now is terry haynes, managing director at evercor, isi, terry, to talk about what we should expect now that he is president of the united states. >> fundamentally, we expect a lot of action. they're about to see a lot of legislative sausage made. >> we've heard this might -- the repeal piece of it might take place over several different bills and piecemeal fashion and maybe same thing for replace. what can you tell us about how this might actually happen? >> politically this situation is very volatile. they very much want a clean repeal vote early on. it's important for markets to understand that that doesn't mean that we're going back to status quo 2009 in health care. the idea is that the current affordable health care act stays until there's something new. they're going to have to take months to design and replace. they understand that. >> why is it going to take so long when i read a better way by paul ryan and company and there's a plan.

there's a proposed plan there. >> absolutely. >> why can't they cut and paste. >> the writer of that plan principally is the new secretary of hhs, tom price. he's the guy that did most of the work on that. >> why can't they cut and paste? >> fundamentally they can't. it's smart of them to do this, frankly, is they want to make sure they consult with the governors. kevin mccarthy i think said this very well. if one of our critiques is that congress made a mistake jamming everything down the state's throats seven years ago, we don't want to replicate that mistake. we need to take a little bit of time to do that and that's fair. >> i'm going to say something that no one in this town believes, but why can't you put the business tax reform package and graft it on top of the obamacare in a reconciliation bill that would come up in just a little while? because the longer we wait, if tax reform doesn't get done until late, late this year and go into place next year, the economy is going to defer activity.

they're going to wait. >> yeah. >> i love reconciliations. we used it in reagan. we invented this stuff basically. all i'm saying is the beauty of reconciliation, you can do anything you want. it's in the rules. >> when you control both houses. >> yes. i mean, look, if the parliamentarian rules out of order let's say on this plan for the business tax, all vice president pence has to do as president of the senate is appoint another parliamentarian and democrats play hard ball like that all the time. why shouldn't republicans? i just don't want the tax cuts to wait. i think it's an integral part of trump -- he's a transformational figure. if this stuff goes through, if he gets some early victories -- >> larry, you're getting the markets all excited again. the dow's up 8 0 points. the dow was up about 90 points. it then cut that a little bit. so what you're talking about is precisely the fear that a lot of investors have. >> that there's a pull back. >> the changes they're looking for don't happen. >> know for a long time.

i completely agree. if i helped the market today, it's a rare public service. alls i'm saying is republicans should be as hard ballplayers as democrats have been. there's no reason why you can't go this way. economy wise, obamacare has a lot of important tax hikes particularly on investment that need to be repealed right away, too. that will all be in this reconciliation bill. we're doing the same damn thing as this spring. >> i think that one of -- one of president-elect trump's great strengths, you know, there's definitely one thing that he's good at that fits with the presidency well, which is showing impatience. impatience is good for pushing things forward. you're expressing impatience for the same thing which is good. >> he's the art of the deal. >> we don't have any patience either. we're going to get back to bill griffeth at the new york stock

exchange with an eye on the market moves we were just discussing, bill. >> yeah. the market really has settled down for the last hour and a half or thereabouts. we were up just 74 points on the dow right now, but really people were listening intently to the president's inaugural address and looking for clues about some substance on the economy and policy going forward and the impact it may have on the markets and the economy. we want to talk about that as we continue to watch the parade make its way down pennsylvania avenue there in washington. tom mcclellan of the mcclellan market report and newsletter is with us from seattle and douglas holtztaken joining us. tom, we've talked with you a lot about what the markets typically do during the first year of a new president's tenure in wa washington, and it's not pretty often because this is when the tough decisions have to be made.

clearly president trump wants to get to work diligently as it pertains to the economy. do you think the markets will have a good year this year or otherwise? >> well, i think it's going to be a good year because of the strong amount of liquidity that's still out there but it's not going to be a linear up trend, a lot of texture to it. right now the markets are frozen deer in the headlights mode like they were on november 3rd and 4th because of the risk of the unknown. just before the election it was unknown about who was going to win. now it's the unknown about what's going to happen, what's going to get proposed, what's going to go first? there's all of that. as that fades the fear of the unknown and the markets can get back to the normal business and trend higher for the next few zbleeks by the words of the transition team, the administration, this was very much -- the inaugural event was populist and nationalist in its tone. what did you make of it? what did you think of it? >> i was both surprised and not. you know, i think we've learned

that donald trump is donald trump. we shouldn't be surprised that he gives an inaugural address that is very close to his stump speech and hits on all the themes that got him elected. neverthele nevertheless, i was a bit surprised he included some of the down beat parts of that stump speech, the mentions of rusted factories littering the landscape like tombstones and the notion of america in decay. i expected a little bit more emphasis on the positive and the uplift. as i said before, this is who we elected. it's the kind of character he has and it's how he's going to behave. >> kelly? >> tom, i was wondering as you watched this unfold as well, your thoughts about the 4% growth target. you know, it's extremely important to the president. he's mentioned it. look, if there's anything that donald trump symbolizes, he's the first businessman president. maybe he knows how to set a high goal and actually achieve it. do you think there will be transferability between his skills in running a business and the country. >> he knows how to follow a plan

and he's going to -- whether it's an architectural plan for building a building or project management plan for when it's going to happen, whether he can get to 4% i don't know. to get to more gdp growth you either have to have more people working or have the people who are working work more productively. i'm not sure which one of those he plans to work on. i think we are going to see in a few weeks what we typically see any time there's a first-term president. he will discover that something is even worse than he told us about during the campaign and that the only solution is whatever solution he's proposing. we've seen that with every president during my lifetime, and i don't know what it's going to be that he'll discover this time, but it will be something. >> doug, what do you make of the protectionist theme as well? it was very evident in this inaugural address, america first. he even used the word protection where he said protection will lead to great prosperity and strength even as america looks inward in what has become a very global economy right now. >> yeah.

i was a bit surprised by that and i have to think that if you're a foreign leader sitting in a nato nation, the combination of the economic protectionism and the explicit talk of we have paid the bills at the expense of protecting ourselves, it wasn't a great outreach to the global community in an inaugural. >> kelly, do you have anything else before we go on this one? >> yeah. i'm actually -- what you're looking is unfolding right behind us on the balcony here of the platform. we're watching everybody go by pretty much right behind us. and it's just interesting to think about everything you were saying, tom. how do you get to that higher growth level? and how do you do it not only on a one-off basis but on a sustainable basis? this feels like the real challenge of the next several years. >> it is a challenge and i think his plan is to get more people working by taking down the barriers to having people

working and if he can do that, that's great. he can also encourage more people to work who are discouraged, there's a lot of potential there. whether he can pull it off remains to be seen. he certainly seems to be confident he can. what's going to matter for investors is what's the backing and wani -- waxing and waning of human emotions. the things we need to look at more are things around the corner. we're going to see a big decline in crude oil prices. i'm saying that because they're betting net short as big as they did in 2014 before opec opened the flood gates and pushed oil prices down. i think that's going to bring inflation rates down, bond prices up. that doesn't seem to be a story that's hit yet. i think people should be looking for that to become the story. >> we're just getting started here obviously. tom mcclellan, thomas, thank you both for being here. >> thank you. >> lower crude oil prices could be a curveball. we have five minutes left to go.

we're going to come right back, give you the closing countdown as we continue to watch the inauguration parade. after the bell we'll look at today's inauguration rally and what donald trump's address today means for you and your money. you're watching cnbc first in the first business president worldwide. ste,y, e, sptar mech l ste,y, e, nduent. g. sptar mech l ste,y, e,

welcome back. activist investor and trump special advisor carl icahn joining our scott wapner as we

watch the inaugural campaign unfold. we saw mr. icahn up there. the mantha almost maybe was going to be treasury secretary. scott? >> hi there, kelly. thank you so much. i've caught up with howard and his wife gail icahn and they had lunch following president trump's address. let me ask you first. this was your first inaugural. >> of course. >> what did you think? >> i think it was very, very moving and very, very touching. donald surprised me coming on so strongly about the establishment. i admire him for doing that. i admire him for not just trying to say, well, let's move it over. let's be buddies. i mean, he came on extremely strongly and he's giving you a look at what the future, i

think, is going to be. i think it's going to be a confrontation to some extent and i think that might be a good thing because it's going to really promote change, which you have to have in this economy. and i think he was right on in his speech. i was very proud of him for that speech, actually. >> you use the word when i spoke to you on the phone after the speech you thought he was tough. people are being critical of the speech. nuriel rabini put a tweet out shortly after the speech and said the following. i'd like your reaction to t. he called it, quote, angry, device i have, populist, unilateralist, depressive, insulting, mean, tone deaf. >> i think he was describing himself most likely and he probably only has ten twitter followers so i don't think anyone is going to see it. he's so far off base it sounds like this is coming from cnn. >> you don't think that it was a -- >> no. he laid out. >> -- more national list, more america first speech.

>> it is an america first speech. that's been our problem. we want america first. he laid out his plan from day one, the same speech, the same plan. jobs, safety for our population, protecting our borders. none of these are new so all he did was lay out again to everyone what his plan is. he didn't get up there and try to be, you know, mr. nice guy. i think he said it in a nice fashion. he means it. he's put together a great cabinet. he did make comments that this is the first time you really don't have politicians, you have business men, and that's exactly what this country wants and needs. >> i spoke to andrew livrus, retiring ceo of dow chemical. i said why are you so optimistic about this new president and he said business, business, business. the fact that we have this man as ceo, why do you think it's going to make so much of a difference, carl? >> i think that you have to break up this establishment, you have to stop the perception which we have in this country

that the government is at war with business, that the government doesn't like business, and that's what you've had for eight years with obama, that we all -- we have regulations, and i know this because i have 10, 15 companies and these regulations are literally crazy. and i'll just go in for two minutes, my favorite one is the epa, which has come up with regulations that stifle, stifle billions and billions of dollars that could be spent on new refineries which would clean the air and nobody will spend money on refineries because they're so frightened of what i call this obligated party where refineries are obligated to be sure that a certain amount of ethanol is blended when they can't blend and they can't sell the blended. it's insane. last week and i'm very happy about this valero filed a great lawsuit out of washington, d.c., in texas, and i really think that lawsuit may change the obligated party, which will open

a flood gate of investment in refineries, which is what donald wants. new jobs, refineries, and save literally six, seven refineries that might literally -- several will go bankrupt and the epa up till now just laughs, just says, we don't care. >> likewise, the department of labor rules, new fiduciary rules which hopefully will not exist will put millions of americans without anyplace to go for financial advice for their retirement plans by making the plan as fiduciaries. this law is written, hopefully it will be postponed. it's horrible. it's going to lose jobs in the industry and it's going to leave millions of americans without someone to depend on to handle their retirement funds. and i think one thing in donald's speech which really i feel was one of the best parts, he made a statement which i

think shows where he's coming from on the social issues. he said, in your heart if you're a patriot there's no room in your heart to be prejudice. i may have misquoted it a little bit, but that was basically the essence of what he said. >> no room for prejudice. >> patriotism. >> that's right. >> no room for prejudice in your heart. >> i spoke with john paulsen last night who's on the economic advisory council. he told me that he went more long stocks as a result of donald trump's victory. have you done the same? and how do you feel about the stock market right here and now after the rally we had and then the pause that we've seen more recently? >> i've been pretty consistent on this. i think there are going to be a lot of bumps in the road to where we're going. we are breaking up an establishment. it's difficult to do that. i think today is a major, major water marker in our history because we are literally having

a secular change in our government, and the last time we did this the middle class saved the country, and i'll tell you what it was, when quincy adams was president and jackson went against him. jackson hated quincy adams, really hated him. quincy adams hated him. so quincy adams was literally an aristocrat, and i think at that time we were on the road to monarchy in 1824 and jackson actually won then but he didn't get the presidency because they fooled around and i won't go into the history of it, but the point i'm making is jackson defeated quincy adams in 1828, i believe it was, and when he defeated him he made a secular change in our government and became populist. jackson was literally a guy from the hill. he was a general.

a famous guy, a guy of the people. and he would take white house parties where literally a bunch of hillbillies would come in. >> i believe that steve bannon gave an interview to the wall street journal shortly after president trump's speech and made the comparison as well to president jackson, said it was the toughest speech that he's heard or that he's seen or read since president jackson. >> i think today was a very tough speech. very tough speech. >> do you feel it was too tough? >> no. you know why i don't? because i admire trump for doing it. i probably wouldn't have done it, but i admire him for standing up -- >> not my president. not my president. >> okay. thank you. >> there are a lot of protests going on within a handful of blocks here. >> that's par for the course. that's right. let's face it, trump won, but i think it's a milestone. what was your question now? i forgot the question. >> the speech that at least

steve bannon mentioned that he had heard, you had made the comparison to andrew jackson. maybe it wasn't the type of speech that some were looking to hear on a day like today. >> when you think about it, i admire him for saying, hey, look, i'm not interested in this coombaya moment. they've been criticizing. obama hasn't been friendly with a lot of the stuff he's doing. trump is saying, hey, thank you for coming. you know, it doesn't mean anything to me. i'm not -- you come, you want to be friends. i don't want to be friends. here's what he was really saying. i think when you think about it he sent the message, there's change coming and they're bringing it. and he was talking about the right places. he talked about the safety of the country and getting rid of radical islamic terrorists. these are things that we all want, we're all concerned about. >> you run a big company. you're chairman of a couple of other big companies as well.

you don't have any worries or concerns about a trade war? >> no. he's in the real estate business in new york. they're negotiators. i'm not worried about a trade war. he's going to be as tough as he has to be and they're going to make the best deals they can make. they're going to make the best deal they can for america without question. he's a negotiator and that's why it's going to work. >> so many of the plat forms that we've talked about, the one that i know is near and dear to you is education. i'm wondering what you think a secretary devos would be like and about the platform in general. and you're also, by the way, one of the vice chairs of the inaugural committee so you have some work to do. >> i do. i think that betsy devos is going to be a wonderful change for education because choice has to happen. we do have so much going on, the failure of our schools. we have seven schools in the south bronx. we had to turn down 22,000 applicants this past september because there's not enough space

yet there's plenty of space in new york city. so there is a crisis going on and people have to recognize it. betsy does. >> the billion dollar buyer just crashed the interview. i'm going to have to ask you a question. >> you walked in. >> did you hear the speech today? >> absolutely. i think he said one thing over and over again, what's good for america is good for all, and i think that's what we've got to base everything on. he's talking the talk. let's see if he walks the walk. i think he will. >> good to see you, the icahns, carl and gail. we'll send it back to you. >> thank you, scott. it was interesting to hear carl icahn say maybe i wouldn't have given the speech, but trump did and i give him credit for that. >> it was very funny to hear him say, boy, he thought donald trump was trying to say, and that's important because carl icahn, of all people would know. what he said donald trump was saying, yeah, yeah, y'all want

to be president, i don't want to be president with you. >> i thought he was saying about about obama. obama came in and appeared to be reaching out and bringing everybody together but in reality it didn't work necessarily with all of those different groups. again, if he was talking about trump, you could still see the point. >> yeah, it was definitely his antiestablishment. he was surprised he was so antiestablishment but it welcomed him at the time. >> you're watching the parade which is proceeding down constitution avenue. already passed alongside the national mall. shortly it will be passing by the trump international hotel. it will at some point take a right and we'll lose some of that view of capitol hill. it will go to 1600 pennsylvania avenue. just a couple blocks over post inauguration protests are turning violent in our nation's capital. eamon javers. >> reporter: this is a fox news

vehicle here. chevy suburban. a few minutes ago several protestors were up on top of this vehicle. they're tearing apart the windshield wipers, tearing apart the windows, tearing apart a lot of the gear out of the car and protesting against fox news channel which, as you know, very unpopular among this group. then we had this scuffle between some of the protesters and other protesters trying to stop them, shouting at them saying, this is not helping. we are educated people. why are you doing this? this is going to be all over tv. this is what the other side wants us to do. the end result, bottom line, is a destroyed vehicle here. as you can see, they've broken some of the windows here. that's the tv cage there. that's where the tv gear is kept and the front window here is all smashed up, ashleigh. i don't know if you can come all the way around and see this. this is a pretty badly damaged vehicle right now. the protesters have left and it's now being swarmed by media, including us. but this was a pretty intense --

pretty intense moment here just a couple of minutes ago. some of the protesters really at odds with each other making the point, you know, this is not helping our cause. this is the kind of thing that the other side is going to see as proof that they were right all along. so there was a real division here whether this is something that should happen or not. nonetheless, it did happen, kelly. back over to you. >> eamon, thank you. again, mentioning it was a fox tv vehicle that was damaged there, especially in the front. joining us for the hour here, we've just closed the markets. we had a positive session. bill griffeth is back at the new york stock exchange staying with us for the hour, bill, which we very much appreciate. cnbc columnist michael santoli is mohamed el erian from alian. mohamed, i guess the question,

you know, for investors now is -- i guess as you look at the close, mohamed, we've made up a little bit more ground there. is there a sense that the president is going to get to work right away and pass some of the legislation that is going to be good for markets and the economy? >> yes, i think the sense is there, but if you look at the end of day action and if you look at what has happened over the last few weeks, there's a very clear message from the market. it embraces the pro growth elements of president trump's policies, tax reforms, deregulation, infrastructure, and it is concerned about the protectionist tendencies. whether you look at today or the last few weeks, the message from the markets has been pretty consistent. >> adam parker, you're bullish on the market right now but how do you position a portfolio when you have a president coming out

with a clearly protectionist inaugural address today and going after a lot of the status quo as it pertains to some of the building blocks of the economy right now which are also international in nature? i mean, where do you go right now to look for growth when you really don't know what's coming next? >> i think there will be much more earnings growth. the question will be does the price earnings ratio offset that? yeah, i think there are opportunities in the market. i'm quite optimistic that it's attractive and mispriced. i think you can buy energy, oil services -- >> adam, if i can jump in here. i wanted to point out that donald trump, the president, has emerged from the vehicle. there's his son baron alongside him and his wife melania joining him as well. they've been traveling in the vehicle until this point of the parade and now he's out and waiving to the crowd.

>> there's always a question as to whether the president will walk. that tends to be the tradition now, that they will go out and meet the crowd and shake hands. >> he was saying if it was up to donald trump he would jog the whole mile and a half. i don't think we're going to see a jog but it is almost obligatory now. >> some of that line by the way but they were hardly jogging in the cars there. this has been one of the slower parades we've seen down constitution avenue, don't you think? >> we can also tell you some of the groups participating. we've been focused a lot on that vehicle carrying the president. there's 8,000 participants from 40 groups, everybody from the cleveland mounted police to the first troop philadelphia city cavalry. the freedom riders of kearsey, colorado. mid america cowgirls rodeo drill team of new buffalo, michigan. so it is a big parade with a lot of people participating. there at the front now walking

and greeting everybody who's gathered alongside is the president, his wife and his son baron. >> interesting symbolic point as he walks. some of the time he is doing an open handed wave. other times he's doing a fist and i -- i think that is emblematic of the pugnacious approach to politics that he's struck. >> when he emerged for the very first time on the capital today for his swearing in, what is the first thing he did, big thumbs up as well. very much one of his symbols, his go-to symbol. adam parker, i cut you off, but as we continue to watch this parade, what were you saying about where this does leave markets and the economy? >> i think bill had asked where i thought there were opportunities in the market and i think there are plenty. you know, i was just mentioning that we think biotech is a good-bye here, oil services among the rate sensitive stuff.

i think utilities look attractive. very much more cassius on other parts of the market. discretionary where multiples can contract. that might be a little bit later in the policy making so i think there's plenty of things to do under the market micro structure. >> as the trumps get back into the car to continue the parade route there, mike santoli, the markets really have been stuck in neutral for much of 2017. stuck in a range of sorts. what do you think they're waiting for? there was a feeling after the election, it fell after the inauguration. today being one day is not a trend, but what do you think the market is waiting for now? >> the market is waiting for some critical mass of the earnings reports to come out and give us an idea of whether the guidance is going to be as encouraging as some of the forecasts say. i do think they wanted this day to get behind us. i think that one of the biggest

things about these widely watched, supposedly large events is that the market likes when they're in the past. now you can probably make a little bit too much of the interday action. i do think if investors were looking for an excuse to take an excuse from president trump's speech, they didn't get it. they didn't get a sense of what they they wanted to happen was going to happen. we closed the s&p 2271, exactly where it closed on december 13th. five week holding pattern digesting the post election rally and trying to figure out if a valuation is justified. >> one thing that's new though during this earnings season is the companies that are beating estimates are only going up by a little bit. the companies that are missing are going down a lot. i think we have to look at what's in the price and try to own the companies that have up side earnings potential over the next quarter or two. >> can i quote the very wise michelle caruso-cabrera on one

point. >> oh, gee. >> anybody who thinks they were going to get tax policy or a sequencing of agenda items in an inaugural speech is crazy, whether it's the market or anybody else. that's not what inaugural speeches are about. that's not what this one was about. >> they got over their tantrum by the end of the day. markets were climbing back towards the highs. >> thank you, guys. we want to turn for the latest on the protests we've been watching unfold, hampton. >> reporter: they lit a limo on fire now. >> we'll get out to hampton there in a moment. hampton pearson, eamon javers. keeping an eye on the scale of the protests. we saw violence earlier.

anybody watching the past hour they would have missed the more dramatic pictures, though i'm sure they will be replayed. overall that didn't erupt into anything more serious although it's still hard to stomach when you see the flames and the smoke and all of that happening very nearby where this inauguration parade is happening. >> d.c. police said 95 people arrested, characterized it as a small protest. even had our reporters on the ground. scott wapner said he could hear t couldn't see it. throwing various items and things set on fire as you mentioned. >> windows broken. >> like eamon was showing with the fox news vehicle. >> again, the overall mood of the entire capital is pretty subdued as you can see from the pictures we're showing, the crowds simply aren't that big and i think that tends to tamp down emotions on both sides. you know, we'll see what they

come up with tomorrow for the big protest march. >> isn't that possible that's the case? let's face it, right now this is a democratic town. the people that voted in this town are democrats. they're not going to come out. >> i think when george w. bush was sworn in, i think his crowds were significantly bigger. >> i do wonder, this is the president who ran against washington. he hammered that. if there was any doubt he hammered that. >> the crowd you expect at his inaugural isn't really washington. >> absolutely. you still think it fits this area who can get here the easiest? does that factor into it? he said, we are giving back the power to the people. this all changes starting right here and right now. let's get right back out to eamon javers. what's happening, eamon? >> reporter: kelly, we're at 13th and k. the car we showed you earlier and a limousine next to it have

been set on fire. there's a very large car fire there. the police on this side of the street are now trying to clear the street. they're moving everybody back, including us, and we're going to do that right now. significant safety issue here for the people near that. we're moving back. we're moving back. significant safety issue for the people who are near that car fire. if that is the tv gear truck that we showed you just a few minutes ago that is next to a limousine which protestors were bursting the windows of a few minutes ago, somebody has now set that on fire and we have a significant car fire on our hands. the police you can see are moving in. they see the danger here and they're moving in to clear the protesters and also to protect a lot of the people who are here watching all of this because you've got a number of protesters, a lot of media, you've got several pro trump people out here as well. and we're moving -- we're moving back here a little bit, kelly, bill. we're going to keep an eye on this fire here as it really is

engulfing that entire car. we've got fire trucks coming from my left here down k street, which is at 13th and k. it sounds like what has just happened is police have just put the fire out. it was adjacent to this one. there was a smaller fire, a tire fire. we saw some of the protesters rolling some of the tires over in order to light them on fire. the police have just extinguished that smaller fire but now we see -- now we see fire department approaching the intersection but they are not moving in yet. they are waiting for the scene to be cleared. we see now that the limousine and the tv truck are now both engulfed, almost fully in flames. that limousine is completely -- is completely on fire. the tv truck is now at least partially on fire and it's very thick smoke here coming through the intersection.

we've also got police helicopters overhead monitoring all of this. we're waiting for -- we're waiting for the fire department here to move in. the police are being very diligent about keeping the crowd away for safety and for the ability to get the fire department in. we're watching -- we're watching -- we're watching the fire department here coming in. engine company number 2 now moving in here, guys. so the police have cleared out a path and they are going in now. it looks like -- i can't tell if anybody's been hurt here. it was pretty clear this fire was spreading predtty dramatically. everybody around that area it appears to me from here has moved away from the vehicles as well. i can't tell if anybody is in any physical danger there. they've cleared that entire crowd now away from those vehicles at a pretty good distance. you can see the fire department there -- the fire department there is setting up the hoses

and they're approaching the vehicle. we are being told to back up and we are, of course -- we are, of course, cooperating with that right now as the police are asking us to move back. we are continuing to move back. yes, sir, we're moving back. that is the big white burst of smoke that you're seeing there is the water being applied to that fire. now we've lost sight of the vehicle entirely because of the burst of smoke there as they extinguished that fire. pretty intense situation here, kelly. but it looks like from where i can -- from what i can see that nobody has been hurt at least as far as i can tell but this entire intersection now is covered in smoke. the police are continuing to move the perimeter back and you see a lot of the protesters -- a lot of the protesters are moving away and we are moving away and they're telling us to back up so we can breathe because the smoke is getting fairly intense here, kelly. so we are going to move back down the block here and move

away from the smoke which is getting pretty intense. as you can tell, a troubling scene here in downtown washington, d.c., on inauguration day. this is not anything that anybody wants to see in the nation's capital. we're going to duck into this building for fresh air. we are -- we are -- we have now taken refuge in a hair salon, guys. we're going to get some fresh air from these good folks here who have loaned us some of their oxygen. entirely different atmosphere than it was on the street. >> eamon, i just have one question from us back here. >> yes. >> is that the same limousine that we had seen smashed in earlier or was this a different site? >> it was, yes. >> it was the same one? >> all of this is really localized to just about one block, kelly. so that was the same limousine that you saw earlier. it was right in front of the tv truck. they were parked right next to each other.

so the protesters were up on top of that tv truck. they were smashing the windows. they were pulling the windshield wipers off of the truck. the limousine had been previously smashed up and then at some point just after we got off the air with you just a few moments ago somebody put something in that limousine to set it on fire. i was up right next to that limousine just before it went up and didn't see anything going on so somebody put something in there deliberately to set this fire, guys. >> unbelievable. eamon, thank you. hope you get a perm while you're there. check back in with eamon javers. marching on unaware of the activity a few blocks over. a small area where all of that was taking place. might be some celebration today. president trump already at work on his agenda. up next we're going to discuss whether he'll be able to carry that out, work across the aisle and get that agenda through congress. wi y ysi bwhwhh elic on lp jo

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welcome back. as we continue to follow the inaugural parade in washington, d.c., the president making his way to the white house and he started about an hour ago. was a little late getting off there. he did emerge briefly with his wife melania and son baron. while all of this is happening, michelle you can tell us about

some ramifications across the border. >> i received an invitation to be at an announcement with the president of mexico. he's going to make a foreign policy speech. i am told it is to talk about the challenges with the new u.s. administration. mexico has clearly been in the cross hairs of donald trump. the man has emerged from the car with melania and with baron. john, are we at the end of the parade? this is more like, as you mentioned, it's becoming more common for them to get out and greet people in person. there was that fist as well. >> that's right. i think he won't get to the end until he gets in front of the white house and takes his seat in the viewing stand but we're getting close. it looks like he's rounded that corner of 16th street. he'll be walking past the treasury department soon and at his new home. >> speaking of new homes, we have a tweet from former president barack obama saying,

hi, everybody. back to the original handle which is @barackobama. is this thing still on? michelle and i are on a vacation and then we'll get back to work. he has millions and millions of followers. he'll be tweeting from it himself. >> a second tweet where he invited his followers to send him ideas about what should come next. >> there we go. >> you see a little nurturing. >> jim polenti is here. former governor of minnesota. it's a pleasure to have you here. talk about some of the things we're likely to see now that the president is taking office. what do you expect? >> i think it's going to be a very productive year. the republican congress is going to serve him up all kinds of stuff that's going to include tax reform, obamacare reform, infrastructure bill, maybe immigration reform, trade issues. even if he gets half of that done, he's going to look like a very productive president.

>> larry lindsey is with us as well. larry, what are your expectations here? it is interesting to be talking to you. have you taken any role whether it's at the fed or otherwise? >> well, i like what i'm doing right now, thanks very much. i think it's going to be a productive year. i think the markets are expecting, as mohamed said. there's a lot of expectation of regulatory relief for change in taxes to make the tax system better and small business optimism. business optimism, consumer confidence are all up. i think there is a lot of expectation. i think they're going to get quite a bit done this year, actually. >> pawlenty, what about the sausage getting made. already we've seen concern about the form corporate tax reform should make. ultimately does it get done or do they start -- >> the reconciliation for

obamacare and tax reform. they don't need a majority of votes. donald trump's never going to get into the details. he's probably going to sign what they send him in that regard. i think he's going to get that stuff done. >> larry, markets are going to be smart. they're going to know if he's doing this to say i'm making progress or if real progress is actually happening. real progress is what they want, don't you think? >> oh, yeah, real progress is what's happening. you have to remember that speaker ryan and the house of representatives has come up with a very detailed legislative plan and i think that's going to form the core. obviously the senate is going to modify it. i think the president and his team are going to weigh in, but in the end i think they're going to get a lot done because they've done a lot of groundwork. it wasn't like eight years ago when we started from scratch with obamacare. so i'm very optimistic. i agree with jim completely. >> larry, are you expecting much

action on trade, whether it's ripping up nafta, ripping up the trans-pacific partnership? does that concern you? >> well, you know, i'm an observer here. i think that there will be action on trade. you know, t.p.p. did not get very far in either party in the last congress. both parties ended up being against it. the democrats more than the republicans. so i don't think we have negotiated a very good t.p.p. deal, at least not to get through congress. with regards to nafta, this is now almost 30 years old. i think everyone agrees that changes are needed. i think the mexicans want changes as well so i do think you're going to see renegotiation of nafta. that's going to go unparallel and quite separate from the legislative movement. that's an executive branch, national affairs negotiation

process. that doesn't have to necessarily get mixed up with legislation. >> the idea of a damaging trade war something you think is possible or you don't expect that to happen? >> well, everything is possible in this world. it's a pretty crazy world, but i don't think it's very likely. you know, it's in nobody's interests. i do think, you know, america made a lot of concessions 25 years ago. it's into the world community. it's a balanced relationship and i think you're trying to rebalance it. >> larry lindsey -- >> be careful. >> yeah, sorry. >> i didn't mean to cut you off there, sir. i was just going to say i appreciate the fact you could join us along with governor pawlenty. as we continue to watch the inauguration parade, we want to take a break. we'll get to the interesting part and move on what we were discussing. they're going to tell us which

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welcome back. you're seeing a tale of two

cities here. on the left there is the inaugural parade where the president, his wife and their son are walking and making their way towards the white house. moving along in that event which is really the last event before they head to the balls this evening. on the right is the protests we have been seeing unfolding in washington to see the parade. people are running away from what we can only presume are more of the types of smoke bombs or whatever you call them they were throwing earlier at newspaper stands, knocked over, trash cans lit on fire and most recently and more seriously a limousine was smashed in and set ablaze and a fox tv van was vandalized and was apparently a casualty in that. the fire department came and put that out. there was quite a bit of smoke in the air which now appears to have cleared. of course, we're watching both of these events unfolding side by side. in his inauguration speech

earlier president trump did paint a pretty good picture of our country right now. >> rusted out factories scattered like tomb stones across the landscape of our nation. an education system flush with cash but which leaves our young and beautiful students deprived of all knowledge. and the crime and the gangs and the drugs that have stolen too many lives and robbed our country of so much unrealized potential. this american carnage stops right here and stops right now. >> joining us now our chief political strategist and cnbc contributor. larry kudlow is still with us. cnbc contributor.

unofficial, informal wise adviser to the trump administration. >> i thought you were going to say to cnbc. >> listen to larry on economic policy, especially trade policy. >> thank you, sarah. >> let's get everybody up to speed here. what do you think about the protests that are happening? >> look, this election was very close. the country's very divided. emotions ran very strong on both sides. we're seeing that play out in washington, but, you know, this does seem more ominous than i've seen these things in the past in terms of the damage being done, the violence. it's really unsettling that this is the way people are dealing with what should be a very great day for all-americans. >> and that's a split screen of what's happening in washington. we have a split screen of this president. we're here in washington at the new york stock exchange. bill griffeth and michael santoli are there because this is where the rubber meets the road of what this man, donald trump, has promised to do to

make america great again, to bring back growth. he wants 25 million jobs, market growth and markets have ran up on that euphoria and have struggled until they see what kind of action is going to happen. >> let's face it, the markets are all as mike pointed out last segment, the markets have been in holding pattern since mid december. they're waiting to see the whites of the eyes of what can exactly be done and when it can be done. larry, you can speak to this more than anybody can. we're in the midst of a revolution of sorts right now. as carl icahn said it's not the kind of inaugural speech he would have given but he's proud of donald trump. very much in your face and putting washington on notice that there's a new sheriff in town now. >> well, you know, that's what he believes in. he's a change agent as you know and he gave a tough speech although i loved the optimism at the end of the speech. i just loved that.

i'll read it a million times. we must think big and dream bigger. i thought that was the best speech. it's a slog getting these legislative changes are a slog. stock market is picking up on that. i wouldn't want to under estimate donald trump. i mean, i wouldn't want to under estimate him. >> the value for people looking to get things done is donald trump wants to get things done more than he has a very deep ideology, and there are people on the hill with deep ideologies and donald trump is going to run into that but because he does have a strong philosophy, but he's going to be willing to bend just based on the fact that he's the master of the deal. that's how he sells himself. he's going to get a deal done. >> i think that's what we're going to see quite often. >> yeah. >> i think a lot of people are missing that right now. can i just raise one point, kelly? >> yeah. >> you were talking about education before. he has nominated a great lady to run the education department. >> yes. >> betsy devos. >> yes. >> i mean, a great lady who's

devoted much of her life and fortune -- >> yes. >> -- to school reform, charter reform, education choice, stuff that we know works. and now you have her in the confirmation hearing and the teacher's union is saying she hasn't taught in the classroom. nonsense. it's because she wants to reform the education. >> they can't allow a banker to be running finance, right? too much history. >> oh, no. >> you want experience, you don't be want experience. >> the education system is leaving our students. >> hats off to betsy devos, that's all i wanted. >> mike, i wanted to 34e7kmenti the senate is in session at 4:00. kelly and mattis expected to be confirmed here. the cia director may be contentious. then there's the whole issue of

schum schumer. my question, mike, is kind of going back to the whole idea, how quickly can this all move along and what happens if it gets stuck in the gears here. i don't think the entirety of the 6% rally since election day has been about specific policy progress. it's been a lot of things coming together. the global markets are doing just fine, by the way. i do think maybe the most optimistic spin on all of this is that any progress on taxes, on deregulation on the policy front might be considered a kicker or bonus to what's going on with the economy and earnings. maybe that's kind of rosie, but i think the market's perfectly capable of kind of ignoring d.c. for a while. if you remember after the re-election of president obama we sort of institutionalized this deal -- this idea that stalemate and gridlock was great for markets. we don't want anything done in d.c. i think the markets can play it

both ways but they don't want a harsh focus on protectionist action and getting trade winds by the president, i would imagine. >> larry made a great point when he raised betsy devos. she is one of many outsiders. this is one of the most outsider governments we've certainly seen in my adult life and there's value in not knowing what you don't know because they're going to come in and they're going to be aggressive, they're going to be unafraid to try to make these changes and because we have republicans in the congress, they're going to get some of this stuff done. they're going to get a lot more done than perhaps anyone else we had run. >> we're just about four or five minutes away from the senate vote. >> to mike santoli's point. data coming in on the economy is better. >> it's been much better than expected. >> even on business investment. >> and profits. by the way, correct me if i'm wrong, michael, european numbers are coming in better. >> that's fair. >> i've seen some numbers on

that. >> german inflation is at a three-year high. >> raw material prices are going up at least in terms of dollar prices. >> if oil starts to roll over as tom mcclellan told us last hour, if it goes lower, that's one thing while it's great for consumers, it could be a great head wind for the market recovery. there's a lot predicated on the 66 higher range. it goes lower than that. it's ultimately something to benefit consumers. remember, that inflation data will start to roll over. treasury yields might move lower. it's sort of an interesting way to frame a problem and yet remember a lot of this country, a lot of the growth part of the last many years was predicated on strong activities drilling wise and oil and gas. >> i think energy is going to do just fine, honestly. break evens are down. they know how to do it. any time these numbers pop up i believe our trackers are the lynchpin. not saudi arabia. i may be wrong.

those guys start turning the wells back on like you hear, i think that's bearish for energy prices and bullish for everybody else on the planet. >> that's a trade i think many are willing to make. >> nobody agrees with me on this, i know. >> no, but that's exactly the tradeoff. if you look at what's happened with opec as well, they're already going over the limits that were agreed to. we have to get to our steve liesman here. >> we were talking about the markets. the one thing odd to me today, the mexican peso strengthened. had a very good day. is that some kind of turn around. buy on the rumor, sell on the news. something like that. not what you would expect. >> the president's going to give us economic advice next week. >> no. >> mexican president. >> oh, i got -- >> he's going to slash the mexican backpack. >> thank you, larry. thank you guys for joining us. while trump has nominated 21 cabinet positions, there's still key economic positions.

steve leaseman has the latest. >> kelly, we have the guys who everybody knows about, gary cohen and steve mnuchin. they distinguished themselves by being business guys. both very schooled in finance. the question is are there economists coming? are there people schooled in some of the regulatory aspects? a couple of names floated, kevin hassett of the american enterprise institute, well published in peer-reviewed journals. he's the guy who can look at the stuff that's presented to him, different ideas, cost it out, review the literature, let him know what the economists are saying. he's under consideration for the council of economic advisers. there's a gentleman floated by reuters in the piece last night, david mason. a guy we know pretty well from the economic crisis. he worked in the paulsen treasury as one of the key guys that worked on the institutions, fannie mae and freddie mac. he's being considered for vice

chair of regulation. another guy being thought of is tom honig, the federal reserve president. a lot of other names you might have heard. john taylor for the fed. glen hubbard as well. don't know if greg we look at mike pence there. the new vice president. people are gaining out the trump agenda. i spent a couple days in washington. i think tax reform is a given. even the liberals and the democrats i spoke to think that definitely happens. then perhaps they attack obamacare. the idea is that they separate obamacare from the tax cuts and reform. even though there's a big tax component of obamacare. i think only then do they get to the fed opponents. and listening to steve mnuchin the other day, i didn't hear a lot of appetite for being aggressive on dodd frank reform. i know they want to do it but i don't think it is very high on the list.

and i do not know where to put trade on the agenda. is it something they go after right away? do they have the capacity to do that? i think these the things they're trying gain out. and my take is there will be a legislative pause here. nothing gets done all that quickly. because it has to work through congress. >> we're looking at the vice president and his wife walking along the parade route. by the way, melania trump if snoin wondering about her sky blue dress with the blue gloves there. they will continue until they reach the white house. the parade had 800 participant from 40 groups across the country, including boy scouts of america, the cleveland mounted police, the north high school band, the coastal florida police and fire pipes and drums. the wounded warrior project,le

american veterans including groups of paralyzed and disabled veterans, all in this parade today. braving the rain, braving the chilly conditions. we know the conditions have been much worse in years past. dawn of a new day. that was the headline of both the tabs on the new york press. you don't see that very often, that they settle on the same one. and speaking of the president. the choices he's to make. he was forced to abandon his 757 for an air force jet. he has traded in his android phone for a phone encrypted by the secret service. and adding to the many voices who said he should, the president so far finding it too valuable to be able to back away from. john is here. i don't know if you had a thought on trade policy that steve was just mentioning. how high a priority something like the tpp is right now.

>> again, if you take words of the inaugural speech seriously, suggests it would be very high on his agenda. he said every decision i make will be on trade, immigration, taxes, other things, will be designed with those working class voters in mind. if he means that, we should see something quickly. if not, he may finesse it. >> j.j. joins us now from t.j. ameritrade. i would love to get your thoughts and what it means for the markets. >> a lot of noise today and as mr. trump started to speak, we sold off a little bit. the thing to keep in mind is the ways we traditionally measure volatility. particularly, bonds were down today. it many people had a sense of

wanting to be careful. the bank of manager, the ges, the microsofts of the world that they know well. it seem to me a lot of the fear came out of the market today. and many people thought mr. trump might go off the rails, if you will, in his speech. you may agree or disagree with what emon many things but he didn't really go off the rails in any sense. the markets sold off as he started and then pretty much settled in for the rest of the day. >> what were the guys saying on the floor there? >> everybody has been fixated on washington as well they should be. and i pose that question to jj. is it wrong to expect to get specifics in an inaugural address when you're looking for some direction how to invest in international companies when it come the higher interest rates, when it comes to trade, when it

comes to tax policy. you're just not getting that kind of guidance right now ask the market is in a holding pattern right now. >> i would agree with you and i would expect it to remain the same. the fact that mr. trump has been so active on twitter. maybe we expect things before they can actually happen. we're still going through the cabinet process. let's face it. the last couple of weeks, i feel it will continue. this is really overshadowed everything with earnings and maybe that's where our focus should be until they have a couple of weeks' chance to get some plans in place. >> there's the white house now in view. so they're quite close to the end of this parade route. >> can i tell you one thing that i know concretely will happen now that mike pence has been sworn in as vice president? we've been watching him walk down the street. he will move out from where he has been living across the street from my sister, and it

will be easier to drive around her neighborhood. he will move into the naval observatory. >> if we know anything, we should be bullish on, what is it? the kalorama neighborhood of washington where former president obama will be living. jeff bezos has brought a multimillion-dollar doctor home/museum. sandy guess you could say it will be tough to get around. the neighborhood barbecues will be very busy. >> i can imagine. and maybe contentious. >> even as we've seen the protests and these cars lit a flame here in washington, that the market's mood was precisely the opposite. why do you think that is? >> if you look at the last two months, the volatility has been fairly low other than the

initial spike. with that, it is in line with what we've seen. this week there has been a bit more nervousness going into today's inauguration. not only what mr. trump would say but you're talking the protests. if anything would get out of hand. everything has gone fairly smoothly overall and as i am, i think the market is coming to grips with reality that he wouldn't go off the inauguration speech and say this is exactly the tax plan without having things in place. we're all anxious for it but like retail investors, it pays them to take notice of the earnings. there will be so much political noise that it will be difficult to trade on every little nuance. so stay with the things you know for the next few weeks until we have some concrete plans or they announce something we can trade

on going forward. >> i didn't realize, the highs closed nearly at the high of the session. the dow actually finished higher about 94 points. >> let's remember, this was the third friday of the month so we were expecting some volatility. especially at the close of trade today. and there was a definite upward bias. so we finished pretty much at the highs of the session just prior to the inauguration. >> i would notice the dow was the big performer. it was reacting to some get earnings reports from proctor and gamble and ibm. >> boeing, mastercard, reynolds, all time highs today. what were you going to say? >> i would say he brought up an important point. this is one of the biggest expirations on the date. these have been on the books for two years. so it is a very big one for all.

equity based rather than index based. >> thank you for joining us this afternoon. >> from td ameritrade. let's get to hampton pearson who is here among protesters. hampton? >> yes. the stand-up in k street continues. you can see the police line. what they've been doing over the last 15 or 20 minutes is from time to time, the police will advance forward using in some cases, a bit of water and whatever to push the demonstrators back. at the same time, some of the protesters have been throwing bricks and again getting as confrontational with police and getting personal. this is the same situation, over an hour agoer you had a very dramatic fire that did get put out very quickly, if you will. but it has been very tense here all afternoon.

we seem to go from situations where it looks like a final move of one side or the other and then things back off. and then they escalate again. this again by the way, we are within blocks of the official inaugural parade. and not that far from the white house. so quite a few different realities here in your nation's capital on inauguration day like no other i've ever seen in all these many years of being here in washington. back to you. >> thank you. would you say the same, john? >> yes. i would. i want to point out one other thing. the senate right now is voting to confirm jim mattis. so the single most vital moment like the, he will be confirmed this afternoon. we expect john kelly, the incoming secretary of homeland security. democrats have subjected to a vote tie the