that we are levitating to a fresh one. >> which means once again we're talking about dow 20,000. we're close again. stay tuned. >> are you guaranteeing we'll hit it tomorrow? >> no way. we've learned our lesson. >> thanks for watching "power lunch." >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell." i'm kelly evans of the new york stock exchange. >> and i'm bill griffeth. dow 20,000 is within striking distance. look at that. >> wow. >> blue chip average rallying. we're within 70 points now. well, 60 points. the nasdaq and the s&p are in record territory, kids. russell is pretty strong as well today. a gain of 1.6% right now. we have all the market moves coming up. >> it kind of snuck up on us. another busy day for president

trump. meeting with the ceos of the big three automakers. signing orders to continue with the keystone pipeline. >> coincidence or not, that's when the rally took off. after he signed those two executive orders at the white house. >> shares of fluor corporation are up. we will talk to the ceo of that company and get his take of how real the benefit will be for his industry coming up in just a minute here. remember the dimon bottom. could the banks see signs now of a james gorman top. should investors broadly follow suit. >> i'm trying to think what else the dimon bottom could have been? of course it had to be the stock market. >> was it the kanye west toss? >> there's that phenomenon. we have full team coverage on today's action in washington. again, there was plenty of it

today. john harwood is in washington. eamon javers is in washington. phil lebeau has details of the auto meeting with the president. john, the president and those executive orders getting a big boost on the back of the pipeline news today, john. >> reporter: bill, the president of the united states fulfilled his campaign promise to move ahead with the keystone and dakota access pipe lines project in the oval office. he signed executive orders to expedite permitting, to also expedite environmental reviews. he added a new wrinkle to the pipeline projects by saying they would have to have american steel. this is a condition that republicans in the senate rejected in 2015 when democrats tried to impose it. he also said through sean spicer and his own remarks that he wants to renegotiate the deal for those pipe lines to make sure that the american taxpayers get the best possible deal.

now at the same time the president was moving forward on that front, house republicans were trying to make progress on their priority that they share with donald trump for tax reform. kevin brady, the chairman of the house ways and means committee, spoke to the u.s. chamber and made his case for the border adjustment tax that he has in his proposal. >> there are severe consequences for america if special interests succeeded in blocking this provision. foreign products and undercutting president trump's focus on american jobs in growth. tax rates on businesses would have to increase significantly from the proposed 15 and 20% rates undercutting our ability to make america competitive again. >> reporter: now kevin brady noted that president trump has expressed some reservations about that proposal. he's hoping to convince him that the proposal accomplishes

president trump's aims in the same way he hopes to convince president trump that trade agreements are also in his interests and the interests of the u.s. economy. he said even though the president yesterday withdrew from the trans-pacific partnership, he hopes the president will get behind a pro growth trade agenda, guys. >> all right, john. thank you. let's scoot over to the white house where eamon javers has the comments from white house press secretary sean spicer and also a wrap up of president trump's meeting with the auto execs. >> hi, kelly. so striking how many different industry sectors have been touched by this administration in the first two full workdays. manufacturing ceos and today you had the automotive ceos. in the press briefing sean spicer gave us a little bit of additional detail on the president's thinking in the keystone pipeline, dakota access

pipeline. here's what sean spicer had to say at the white house. >> it's not just about finding new ways to bring energy to this country. it's about ways of creating economic growth. not just benefit us to become more energy benefit. create jobs but there's a lot of ways, a lot of new thinking. his team and his cabinet to look at. >> reporter: so clearly the trump administration sees this as a threefer. they see it as about creating jobs, they see it about as energy independence. they see it as generating revenue for u.s. treasury. and then as you take a look at some of the pictures from the auto ceo meeting earlier today, phil will have a lot more to say about this than i do. what struck me was that donald trump here is sort of acting as both his own good cop and his own bad cop. bad cop on twitter where he jabs the ceos individually, calls out

individual companies but a little bit of good cop in the meeting in the oval office and roosevelt room. he brings the ceos, he praises them, he singles them out for particular actions. he's been tasking them with homework assignments. he wants to have ways to improve their jobs and the industry. he gave them 30 days to get back to him. so a very brisk pace here at the donald trump white house, guys. >> indeed. eam eamon, thank you. let's bring in phil lebeau for a closer look at that relationship. phil. >> bill, i think what eamon said is interesting. they've been given a homework assignment. in other words, let's continue talking about ways of increasing manufacturing here in the u.s. here's the important distinction between yesterday's meeting with manufacturers and today's meeting with just the ceos of the big three. if you take a look at the number of vehicles imported into the united states, this is what donald trump wants to gauge.

43% of the vehicles sold here in the u.s. are coming from plants outside of the u.s. if you're an automaker, especially the big three because they produce a number of vehicles, 2.2 million in canada and new mexico, the question is do you build a plant in the u.s. yes, mr. president, i'll do that immediately. we've been told people familiar at the meetings have characterized it saying trump didn't give the ceos a deadline. he didn't say come to me in six months and let me know where you're going to be able to build a plant and what you can do. he said, let's talk about how you can bring manufacturing back here. basically what i'm telling you is from talking to people familiar with the ceos as well as those who work with the companies, they've said the same thing. the automakers are going to see what happens with nafta before they make any decision. yes, even though we have record auto sales.

the automakers are going to be very jjudicious. >> are there announcements, moves, jobs, plants that are being created as a result of this meeting this morning? >> no. no. what i'm saying is they have ideas. in mexico and canada.

>> it's important that mark fields admitted that over the christmas holidays. he has a sense of dealing with him. huge best sellers since the election. very smart move on mr. fields part, don't you think? >> very much so. when i talked with mark over the last couple of months regarding his dealings with donald trump, it wasn't like he's come out and said, boy, you know, this guy is unbelievable. it's hard to deal with him. he's been intrigued by his conversations with donald trump. he says donald trump comes off as a thoughtful, incise sieve person in terms of let me ask you some questions in terms of your business. and reading this book is in mark field's opinion one more way he can better understand how it is you should deal with donald trump. because it is all about the

negotiation. >> mark fields birthday. 56 years old. >> is that right? >> yes. >> seems younger than that. thank you, phil. >> you bet. phil lebeau tracking all that's happening out of that with the automakers this morning. you mentioned the timing of this rally this morning, bill. the orders authorized keystone and dakota access, nevertheless, we are closing in on dow 20,000. five dow components reported earnings this morning. dupont, the only company trading higher amongst them right now. it is up 4.5% after those better than expected q4 results. verizon, travelers, j&j lower following their reports and still the index is higher than 100 points. >> think if they were trading higher, how much higher it would be now. leave it there. let's move on and get to the close "closing bell" exchange. kim forest, we have steven sarge guilfoyle back in the house of

sarge 986 llc and our own rick santeli checking in from chicago. sarge, what do you think? this rally, was it something of a green light when the president was signing the executive orders reauthorizing keystone and dakota access? clearly energy has been one of the leaders in this rally today. >> i'll tell you what's happening here. i think that we're starting to realize that we have a president, although he is quite bullish and quite bomb bass particular, we have a president who gets it, that the business of america is business. it's been a while since we felt that way. all of a sudden we have corporate leaders meeting with the president. we have union leaders coming to the white house and thanking the president. we're knocking down bad trade deals, perhaps bilateral deals better than multi-lateral deals. why would we ever negotiate when we have the market that most people want to access.

we have the entire trump team, the american team touching on tax reform, trade, repatriation, deregulation and infrastructure. i mean, this is a multi-pronged assault and all of it, maybe not all of it, but most of it leads to growth which will help our marketplace. >> kim, let's take it from that, from the marketplace. the dow having a pretty good session after kind of being asleep at the wheel really over the month to date. so what is it that you think might kind of get people paying attention to reignite the trump rally, so to speak? >> well, i think your prior, you know, speaker here just laid it out. trump is the only president that i can remember that on day one and two not only had business leaders but also union leaders in there. that just says he wants this economy to really work. i really haven't heard of any of the political leadership going through his office yet. have you guys?

i've heard business -- >> there was a reception for the house leaders and the senate leaders last night at the white house. yes, they have been there as well. >> sounds like there's a -- >> everybody is there. everybody's working their way through. here's the question i have for you though, kim. do you send opportunities to invest now in this market that until today had been going sideways for the past five weeks? do you see now an impetus to want to get into energy or, you know, financials that may benefit from these policies? >> well, i'm going to go a little off here and not answer -- or not go for the obvious ones, which would be energy and finance, but i'm -- i'm going to say let's look at consumer's discretionary. i think everybody who was invested in that is really afraid since most of our shoes and clothing and all of that comes from over seas. the problem is, we don't have factories here that can produce

it in the numbers that we need to clothe and shoe people. so i don't think that a very pragmatic president is going to cut his nose off despite his face and drive up the costs of clothing. so i would say look at those consumer discretionary names, maybe like vf corp that's been beaten down and take a look at it. >> right. >> and there it is. there's the performance over the past year. been down about 9%. >> yes. >> all right. a lot of different themes here. we haven't even talked about rates or oil prices. >> or the dollar. >> or the dollar. >> you know, it's everything that sarge has been talking about. i mean, you know, there's a lot of people that aren't trump supporters that couldn't believe there was so many people, of course, especially outside the belt way that gave their sponsorship to this candidate. i think you could add the investor class in. listen, we have a lot of guests that come up with a lot of very

logical reasons why the investor class may be getting ahead of the game. that's true, but it isn't necessarily the whole truth. i think the big story continues to be that maybe we were sleeping in december. maybe we were sleeping for part of january, but sleeping is a lot different than taking a dive off a diving board and doing a belly flop. the equity markets in particular have been holding on to gains now trying to extend gains. i think this is great. you know, we're not arguing about, you know, the multiplier effect of food stamps anymore, okay? nothing about any part of that program. we're talking about creating jobs. even if it's small according to some of our guests, how dare he create small jobs. every book starts with writing a first page. bill, you understand that. i think that there's lots of positives going on. is there a rubber stamp guarantee it's going to work out? no. but i think this president in a couple of days has done a lot of things and i think the market is noticing that. >> i was joking with somebody this morning. i said, what's this president

going to do for the other three years and 11 months he's got left in his administration at least for the first time around? very busy. thank you all very much. appreciate your thoughts on today's market. >> and the name of the book is? "the art of the deal". >> no, stranger in -- >> that's what rick was saying. >> wow. >> any opportunity. all right. 45 minutes to go. dow is up. about 60 away from dow 20,000. nasdaq up 18. the s&p is up 18. the nasdaq is -- >> that's in record territory. >> wow. the russell small caps are finally back to the poll position at 1.6%. up next congressman tom price, president trump's pick to head up the department of health and human services facing a second round of grilling on capitol hill. this time from members of the senate finance committee. we'll have highlights. hey, you're watching cnbc, first in business worldwide.

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that, the dow up -- that's how many points we're away from dow 20,000. you confused me. we're up 129 points. yes, about 70 points away from the magic number. the s&p, nasdaq in record territory. finally a catalyst for this market today. the russell is up the most percentage wise, a gain of 1.5%. >> the watch is back on. president trump's pick for health and human services secretary, congressman tom frank, facing more heat at his second confirmation hearing. bertha coombs has more. >> it was more of a slow burn than a fire. tom price faced questions about policy. what's going to happen to obamacare enrollees. democrats pressed him particularly about how he'll carry out president trump's executive order on reducing the burdens of obamacare regulations. >> will you guarantee that no

one will lose coverage under the executive order. >> i guarantee you those who lost coverage under the affordable care act, we will commit that they don't lose coverage under whatever replacement program. >> you will not use this executive order as a way to bypass the law. >> our commitment is to carry out the law of the land. >> that's his commitment right now. democrats also asked him about block grants for medicaid and whether that's going to mean new requirements for people to qualify for them. that depends he said. republicans aren't all necessarily aligned. senator bill casady and olympia snow introduced a bill that said states that like obamacare can keep it. not sure they'll get backing on that. a lot of negotiations to come.

>> try to come up with creative solutions here, bertha. thank you. >> thank you. 40 minutes left in the trading session. if you're just joining us, it's a rally day. the dow up 126 points. this close to dow 20,000. up next, why lockheed martin's stock is in the red. better than expected quarterly earnings. also ahead, hey, should you follow the lead of top bank executives who reportedly sold nearly $100 million of their own bank stocks since the election? that debate is still to come on "closing bell." [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection.

welcome back. market rallying broadly. russell up. 75 points away from you know what. take a look at shares of lockheed martin which are lowered by projecting better than expected earnings. the profit guidance coming in short. lockheed delivers fewer f-35 jets last year than estimated. lockheed is under pressure to lower the cost of the f-35 program. the company says it expects to report a material weakness in internal control over the sikorsky helicopter business acquired in 2015. shares down. >> price pressure is what it comes down to now. as we've discussed here, if you're going to bring costs down and prices down, something's got to give. is it the profitability or does the price have to go up for the consumer paying for that?

>> absolutely. they're under a lot of pressure from the administration now, it sounds like from a variety of internal issues as well. >> very much so. let's take a break one more time here this half hour. with 35 minutes left in the trading session, the dow up 126 points. a leading trader will tell us what he's watching as we head towards the close coming up here next. we'll debate whether investors should follow the lead of the bank executives who reportedly cashed out nearly $100 million of their own bank stock since the election. we'll be right back.

welcome back. s&p up nearly 3/4 of a percent. nasdaq up nearly 1%. d.r. horton one of the outperformers. it's a 14.6% on orders. bill, shares are up nearly 7%. >> all right. thank you, kelly. we've got 30 minutes left in the trading session. what has been a pretty good day for the bulls with the dow up 122 points. the s&p and nasdaq in record territory. joining me on the floor of the new york stock exchange, jim anderson. the transports, we haven't

highlighted that. even with oil moving higher today. clearly the market's gotten off the dime today. what do you make of this? >> sure has. looks like it's the beginning of phase 2 of the trump rally. >> okay. >> what you're most likely going to have a new closing high for the s&p 500 and the nasdaq today. the dow is probably a little bit away from that. there might be a lot of excitement tomorrow about dow 20,000. the transports will close at the highest level in a month. closing just above 9400. is this a market you want to buy into? >> i certainly think so. i think the messaging you've gotten from the last two days is that where the very strong rally from the election until late december was basically all on expectatio expectations. now the messaging of the last couple of days is there's going to be swift action on pro growth items and policies very shortly. probably even more rolled out later in the week. >> what are you going to buy?

do you buy the energy that's taken off here? do you buy the companies that are being urged to produce more jobs in this country like the automotive company? what do you buy? >> infrastructure stocks, some have had a strong move. the energy stocks are probably going to do a little bit better than the commodities. certainly those that can be profitable with oil in the mid 50s because of oil that comes online, oil is -- not really looking for oil to go up 20%. a lot of the service companies and the companies in that field can do very well with oil in the mid to high 50s. >> great stuff. talk to you later. let you get back to work. time for a cnbc newsup date with sue herera. >> here's what's happening this hour. the congressional budget office says the budget deficit is expected to dip in 2017 but expected to expand later in the decade. it forecast domestic product growth 2.3% before slowing to 2%

in 2018. michigan's environmental agency says flint's water system no longer has levels of lead exceeding the federal limits. state officials say the city's lead levels are comparable to other u.s. cities. tiger woods has a pretty demanding schedule over the next five weeks as he makes his return to the golf circuit. this week he'll play in the farmer's insurance and then a trip to dubai and finishing at the honda classic in florida. >> i've played a lot. been playing probably four, five times a week at home. played over the holidays and down in the bahamas. i had a really nice time preparing for this event and really look forward to it. >> well, we'll all be watching. that's the cnbc news update this hour. back downtown to you guys. bill. >> what are you looking at me for? >> well, why do you think we're looking at you, mr. golf? >> i know.

i wish him well. good for him. >> absolutely. absolutely. >> yes. he loves torey pines. that's where they're playing. as you know, bank stocks have had a very nice ride since donald trump was elected the 45th president. the kbt bank stocks are up 21%. bank executives it turns out have taken advantage of that runup in the company's stocks. according to the wall street journal, morgan stanley, jpmorgan and goldman sachs executives have sold nearly $100 million worth of stock since the election. >> well, morgan stanley ceo james gorman shares, the first in six years, should investors be doing the same? joining us is charles and tony. charlie, does this add to your bears thesis. it always makes you feel good

when the executives are doing what you've been doing and i've been selling my shares for the first time in six years. i've been pretty bullish on this space for a long time. the stocks were very cheap. morgan stanley was trading about 60% of book. now it's 1.3 times book. it's not cheap anymore. all of these people who have friends who lost all of their money at lehman and bear stearns. they're taking money off the table which i think is appropriate. >> tony, what do you think? what's going on here? >> well, you know, the good article. we looked at it. it correctly pointed out that many of these executives have held these shares for a long, long time. it's an industry left for dead, stock that's been very, very under owned. no, we don't think that this is some sort of sign. what we look for is insider buying, of course. you know, i point out that on a net basis, jpmorgan, bank of

america, morgan stanley have had net insider access since the election. the article didn't quite address that. on a net basis they took in more shares than they disposed of in all three cases. >> charlie, it also sounds like and tony's kind of referencing this, but in goldman's case some of these options were granted ten years ago and about to expire. they basically had to exercise them once they got in the money. >> right. >> so it's not in that sense kind of -- >> but i would say that banks and investment banks are a class of stock where the managers are pretty good at valuing their own stocks. this is not like netflix or amazon where the insiders have no idea how to value their stocks. these investment bankers are used to a tradition of shares being worth book. that's what a goldman partner got when he left the company. that's what a morgan stanley invested when he became a partner. today now that we're above book

i think these executives are saying we are at least at fair value, maybe a little bit more. >> tony, who do you like here? i mean, we were highlighting these three because that's who the wall street journal highlighted. are they the ones that lay as a proxy that could benefit from higher interest rates or are there others that would be better bargains right now? >> well, i want to just real quickly respectfully disagree with your guest. in my experience, brokerage firms and hired the most at the top of the markets and fired the most at the bottom of the markets. in any case, we want to own the banks that have the most deposits. those top three banks have a substantial boost in deposits. the deposit growth that they had last year was the biggest 12-month growth that they had since 2008. they have the money.

they have the money to lend and we think they're going to benefit by the demographics and the increased rates to make more net margins on the loans that they make. >> charlie, same question to you. where do you think the best opportunity is, either in or outside of the financials right now? >> kkr. financial. it's got a great business in a -- that's trading at a much more reasonable price. kkr is trading hardly above its book value. it has profit sharing. it gets 20% of the profits. it gets 2% management fees. it's a much better business than the other investment banks that we're talking about. kkr stocks is nowhere near the highs that some of these other investment banks are. >> very good. charlie, tony, good to see you both. thank you for joining us today. >> thank you, bill. >> appreciate it. >> yeah. meanwhile, transcanada issuing a statement on the keystone pipeline. jackie deangeles has details for us. >> hi, good afternoon to you, bill.

that's right. after the news coming out of washington about moving forward with the executive orders, to move forward with the keystone pipeline and the dakota pipeline. keystone got back to us, transcanada regarding the keystone pine line. they say we appreciate the president of the united states inviting us to reapply for kxl. we are currently preparing the application and intend to do so. kxl creates thousands of well-paying construction jobs and would generate tens of millions of dollars in annual property taxes to counties along the route as well as more than $3 billion to the u.s.gdp. with best in class technology and construction techniques that protect water ways and other sensitive environmental resources, kxl represents the safest, most environmentally sound way to connect us to an abundant energy resource. this was a political football for quite some time. president obama vetoing the project. transcanada saying here that it's eager to move forward.

we know that the plans are in place to move forward with that construction. i will say this, we also reached out to energy transfer partners to get a statement. that company has not gotten back to us. they hit a couple of points that i want to mention in this that have been disputed and sort of debated all day. the first bill would be the fact that this generates many jobs. it's not disputed that it would. critics of the disposal are saying the jobs are temporary. they're potentially less important. of course, proponents are saying temporary or not, we're getting americans back to work. very critical here to be moving forward with these two projects. back over to you. >> all right, jackie. thank you very much. they asked the canadian energy minister when that pipeline would be finished and they said, it's up to transcanada. however quickly they can get that completed. >> the press conference of sean spicer where he was asked, what will the administration do if the protestors come back. >> 40 minutes left in the trading day.

the dow up 120 points. the ceo of a company says it will benefit from the return of the keystone pipeline. that's when we come right back on "closing bell."

all right. you don't have to do the math, we'll do it for you.

we are 79 1/2 points away from the dow jones industrial because of the 120 point gain. the s&p is in record territory and so is the nasdaq and the russell is doing well. it is not yet in record territory. that has 19 points to go there. >> today president trump signed executive orders giving two oil pipe lines, the keystone and the dakota the go ahead. both had been derailed by the obama administration. here's what the new president had to say about it. >> we are and i am very insistent that if we're going to build pipe lines in the united states the pipe should be made in the united states so unless there's difficulty with that because companies are going to have to sort of gear up much pipeline is bought from other countries. from now on we're going to start making pipeline in the united states. we build it in the united states, we build the pipe lines, we want to build the pipe. we're going to put a lot of workers, a lot of steel workers

back to work. >> joining us right now, david seton is chairman and ceo of flour corporation. a company that would presumably benefit from this. he's vice chair of the national association of manufacturers. thank you for joining us today. good to see you. >> thank you. great to be with you guys. >> put your flour hat on first. how will this benefit your company benefit from this? >> well, i think the president is doing exactly what he said he was going to do, and that is put americans back to work. i think some of the critics when you tart about .jobs, you can argue that we're the only industry that you hurry up and work yourself out of a job. we have a series of jobs and put those people to work on jobs with a beginning and end but it's all positive to the economy. i think from a manufacturing perspective, when you break these projects down, whatever

the value is, about 30% is going to be manufactured. it's going to be manufactured in the united states. >> david, we're looking there at your shares up by 23%. but in any case, the fact that he emphasized both pieces of this, not just that the pipeline would be made in the u.s., how much of that is already taking place and what would it take to make sure it's 100% done if that's what he means? >> well, i think what i heard him say is we're going to do it to the greatest extent possible. as i said, 30% is manufactured products, machines, the types of things you need for pipeline. so i think, you know, we deal with local content rules all over the world. i don't think this is any different. i think from a manufacturing perspective i do think we have the skill sets and capabilities in america today and i think that the manufacturers are ready for things like this to get started and certainly provide

the economic benefit that the companies will provide. >> here's the question i have. when he talks about using u.s. steel and he made the statement, the way we used to do it in the old days. that was a statement that he made as he was signing one of those executive orders. there's a reason that you don't use in many cases u.s. fabricated steel or other materials, because it doesn't make economic sense. you can get it cheaper overseas. >> well, i think there's always -- >> how would this make economic sense? what has to happen for it to make economic sense to have u.s. produced products assembled by u.s. workers in this country? >> well, the easy part of that is it will be assembled by u.s. workers on the construction site. when you think about, you know, we look at the world producers and we come up with the best -- the best opportunity for our customers, you know, regardless of where that comes from. i think in the terms ever capability, i would argue one point and that is we don't do anything the way we did the old

way. there's new technologies, there's new capabilities and certainly there is the capability existing in the united states to produce that pipe material and other things that would be used in this pipeline, the dakota pipeline or anything like that. so i think it's just a matter of retooling the system for the capacities that's going to be required to actually put that pipe in the ground. >> david, one final question for you just based on your experience. so we hear from the fed book that in some cases there's somewhat of a shortage of workers out there in the country. perhaps in some of these industries. is it possible there's a problem getting people back into the labor force right now? how do you think all of this might help catalyze some of those who might have been on the sidelines for a long time to maybe start getting back into the labor force? >> i think we've already seen some of that. as i mentioned on the air a couple of days ago, you know, we've seen a resurgence of the chemical manufacturing in the

united states. we had to really think about the labor force that we had available to us to construct those plants. and those resources exist. it takes some training. there's some older resources that have got that kind of experience that we're utilizing in terms of their skills but also from a training perspective. i think the good part is we got a little bit of lead time in order to provide that training and those opportunities for people. you know, career construction is a great career and a high paying career and i'm just excited that the united states is putting together policies that are going to put these people back to work. so i'm very pleased. i think there's going to be a little bit of a shortage as we begin the process of building a lot of this infrastructure in the united states. but i've got great confidence in the work force in the united states to rise to the occasion. >> very good. david, nice to see you. thank you again for joining us today. appreciate it. >> great being with you. appreciate it. >> you bet. david seton, fluor corporation.

dow's up 121. we expect new highs. >> coming up, why one strategist says the trump rally has given way to trump uncertainty. she'll explain coming up.

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art cashin says the market on close orders shows an imbalance to the sell side of $250 million. not a big number. may not see much of a big impact. the dow is up. alcoa is out after the bell. that company has certainly changed, hasn't it, morgan brennan? >> it most certainly has, bill. this is not your father's alcoa. that's because this will be the new alcoa's first earnings report as a pure play aluminum and box side producer. this is after being spun out of the parent company that has since been renamed arconic. it held onto the business. they're holding on to $2.46 billion in business. commentary about president

trump's potential policies including deregulation, tax reform and infrastructure spending, all things that could benefit a company. the game plan for the 20% stake that is opened by arconic which reports itself next week. alcoa has surged since being spun off on november 1st. shares are up more than 70%. we'll get those earnings after the bell. bill? >> looking forward to it. thank you, morgan. joining us now for more on the markets as we head towards the closing, amy wu and robert tip, portfolio manager at prudential's total return bond fund. you're out there searching somewhere for income somehow in this market, huh? >> yes. actually, it's a lot better now than it was in the middle of last year. we've had a big increase in interest rates and really what you want in the bond market is an environment where people are optimistic about growth prospects and they push up interest rates too high. that's really the situation they're probably in now.

>> he said something i'm paraphrasing, please, president trump, more volatility for the markets. ironically we haven't seen much of it with the fact that you could argue economics, policy but not the vix. >> i literally could go on and on and on about all the things that could theoretically make volatility go higher and we're at multi-year lows. it's just fascinating to me. >> isn't it? >> the one thing i will say is the early warnings system of the options market is starting to pick up. the headline vix is low. >> if you just look at the absolute numbers, we're still at multi-year lows. you can see where the vix is. what's interesting, it's not i

want to protect down side. you're seeing pickup in the tails so meaning very, very far down side. you're seeing that start to pick up. there is a bit to that. >> i imagine robert your worst nightmare is bond yields go back down. bring us back towards last summer. >> if they get too low, then it becomes slim pickings. this is a good environment. i think the growth back drop is recently good. there are going to be some hiccups as we go to the policy side, fiscal side, trade side. you're going to get a good offset between bonds and stocks, yields are high and we're back to an environment where we're going to create good income and good returns and be a good balance in people's portfolios. >> that would be welcome. good to see you both. thank you for joining us. robert and amy wu. we'll come back with a closing countdown in a moment. stay tuned.

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i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. we're just inside the two minute mark. it did take the edge off the rally. the dow, 120 points. we're 80 points away from dow 20,000, maybe tomorrow. who knows. we should point out the nasdaq and s&p are in record territory at this point as we go out today. so we do get records into the books but write them down in pencil. oil continued higher. pretty good rally for energy today. the energy stocks themselves

especially and especially the pipeline companies that would benefit from the reintroduction of the keystone pipeline and the dakota access pipeline but then courtney reagan already knew that. earnings tonight, this time now from -- this is the busiest week for earnings, this cycle. >> right. >> texas instruments tonight, capital one, discover and the new alcoa. >> the new alcoa. but, i mean, look at the dow transports. >> for getting that. >> yeah, 1.8% at one point today so 152 points or so going into the close of that. you're saying if you're looking at that -- >> even though energy has gone up, the transports have had a pretty good day. >> they really have. >> you mentioned dow theory. >> the transports leading the dow. you're a buyer into it. perhaps going higher. interesting that the guests in the last segment were talking about the indications of the segment. some of the traders were worrying about a pull back. the energy segment has a look at

the pipeline deal. >> what a day. >> what a day. >> and it's only tuesday. >> i know, it's only tuesday. >> feels like a friday, doesn't it? crazy stuff. thank you, courtney. we go out with a gain of 108. within striking distance of dow 20,000. maybe tomorrow. we're ringing the "closing bell" here. stay tuned for all of the earnings coming your way on the second howe of "closing bell" with kelly evans and company. i'll see you tomorrow, kel. thank you, bill. welcome to the "closing bell", everybody. i'm kelly evans. the green eyed goal is back. we have record highs on wall street. the dow going out with a gain of about 112 points. a little better than half a percent to 19,912. so we're back to within 78 points of that you know what level. the s&p 500 up 2/3 of a percent today having a strong session. 2280.03 is your closing level

there. and that's a new high by about 3 or 4 points. we'll get some more of the names leading that index higher today. the nasdaq composite also hitting highs during the session. looks like it's going out with a new close and a new round number, by the way, 5600. that beats the closing high of 5574 and the gains the nasdaq a point. the russell 2000, 1368. it jumped a percent and a half. now it's still 20 points shy of its record close level. it keeps moving higher to the up side, more to the down side. it still has more catching up to do. it's also going to be a busy hour for earnings. morgan brennan is covering results from alcoa which are out shortly. kind of unofficially, you know, getting this earnings season really into gear. seema mody is over there covering numbers from texas instruments. capital one and discover financial. guys, thank you. we'll see you in just a moment as the numbers start to come in. let's head up to the nasdaq and

get the big moofrs with bertha comes. >> the dow may still be flirting with 20,000 but the nasdaq delivers on the round number 5600 like tom brady in the pocket. we are above 5600. what's interesting today we topped it and then closed there on the same day. we've gone from 5500 to 5600 in just a couple of weeks. we closed at 5500 on january 6th. we have closed at 5400 back on december 12th. tech very much back in the groove here. seeing some momentum, particularly with chips ahead of texas instruments earnings. we had bullish comments out of samsung in terms of chip demand. tech names like adobe, intuit, google reports and parent company comcast today also had an all-time high with all of those academy award nominations coming out. as far as the big cap today, they weren't really the big

drivers. small caps stronger. yahoo coming off of earnings. really nice mow men tums. microsoft will be reporting earnings along with intel and google. big day for tech earnings. finally, the wall flowers, biotech down for the fifth time in six sessions. you continue to hear questions about what's going to happen with biotech. back to you, kelly. >> among a billion other things to keep pace with. thank you, bertha. like the tom brady metaphor. joining us michael santoli and samuel hughes. raymond james here kicking off things. copper sales. better global growth numbers. u.s. growth numbers were okay. then you had the best performers in the s&p 500. so really interesting day. >> all of the indexes up. you know, kelly, that i look at the bond market as a determinant of whether -- what kind of day it's going to be. so the yields globally were up

on the strong purchasing manager indexes. then you have the treasury, the yields going up starting about 11:00. i think it gave the green light for the reflation. s&p 500 made another chase at the highs. basically hit the old interday highs. closed at a new high. this is what i'm seeing happening. you basically had another opportunity after five weeks of going sideways to see if you could break out of this. you're going to hear a lot of people say, you know what, that's it. i don't know you can make the determination yet. >> yeah. >> you're going to start to do that tonight and tomorrow. >> amazing how they happen on a day-by-day basis. some of the catalysts might say, why? we have the executive orders from the president about the pipeline which can now move forward. art cashin pointed this out. he said comments from paul ryan. he talked to the program for the first 200 days suggesting that tax reform is coming within the first six months. >> right. if it's a republican controlled congress can move the ball

forward and really incentivize investment and actually roll back, actually roll back any kind of regulatory environment, then i think the trajectory that we see ourselves on might continue intact. you have higher oil, you have a stronger dollar, you've got a lot of things happening that are kind of pushing the ball forward. you have projections on the s&p for fourth quarter earnings to be up 6.3%. that's the earnings period that we're in right now. then reuters is expecting 13.6% earnings growth in the first. that's all the good news. the bad news is that, you know, every issuer is waiting around for that tweet that can destroy their entire market cap. that's a big concern. investors didn't sign up for the fact that the leader of the free world is playing games with them. >> as we learned today, it can work both ways. when it comes to any way that's moving on the pipe lines. allegheny tech was up 28%. we mentioned some of the other

companies benefitting from higher metals prices. mike was pointing out you even have a gravel name like vulcan having a great session today. anyway, mr. sock, do you kind of like this on more than a one-day basis? again, the attention and outperformers are so sporadic. >> i think gdp is going to increase going into the end of the year. i think most importantly what danielle said, we are moving from an interest rate driven secular bull market to an earnings rate driven secular bull market. the profits trough ended and be earnings flipped in the third quarter and the comparisons coming up will be relatively easy. it will be quite evident that we have moved into an earnings driven bull market. >> did i see, by the way -- no, it must have been deere with all-time highs along with boeing. master card we mentioned, kind of charter. there are a couple others in the

basket for a while. not all just a one-day move. names like progressive insurance, interestingly enough. lam research. >> nitrogen based companies, cf industries topping. that's been a low globally for a while, nitrogen and that starting to top, too. i think there's excellent momentums. if we see any tax policy take hold, that could be the catalyst to increase buy backs, creative investments and also perhaps an increase in dividends from the companies feeling a little more confident. >> just to add to the build it theme, d.r. horton came out, biggest home builder it is now, had great earnings report. the shares are up 7%. >> all the builders were among the leaders. >> yeah, exactly. >> existing home sales were a little bit amiss. that's not what the guys are in the business of. they're in the business of creating new supplies. net-net positive. it was one of the cyclical groups that is contributing to

this. one of these you can fall back on as the market has been consolidating here. the leadership was still the more cyclical companies. i think the real question is can the earnings come through to justify the moves a lot of these stocks have made. not a lot of cheap stocks. you're seeing a sell the news response on a lot of the big cap earnings. >> let's actually talk about the flip side. how about verizon. this is a company. after the earnings this morning, it's like weak wireless. disappointing guide dance. shares at one point were having their worst day in five years. a bunch of the dow names did poorly even though we had no session. >> in addition to verizon, j&j, dupont, they popped to the up side in a very favored group. is it just a little bit staticy as you get the numbers for the fourth quarter. maybe they don't get too aggressive about the guidance. >> that's fine. it's going to be more conservative because we really don't know what's on the horizon from a policy perspective.

>> jeff, does that worry you at all, that despite what you talked about this might be the time to have the earnings outperform? a lot of these companies maybe don't have great visibility? >> i will tell you that the stock market is a predictive instrument, if you will, and the stock market is looking for something pretty good coming out of the trump administration. the regulatory thing. i think he froze -- i've been in europe for 2 and a half weeks but i believe he froze regulations that were supposed to come into effect until further review of the president. and i think that includes the d.o.l., the fiduciary rule. >> that's right. >> yeah, i'm glad you mentioned that. in a way, jeff, we're still kind of sifting through it all. he froze obviously federal hiring and the issue that you're talking about is one that, you know, it's been up in the air. there's been a big question mark happening over it. you know, i guess we just have to wait for more clarity. >> well, i think john wilson

from south carolina introduced a bill or crafted a bill two weeks ago that tries to freeze the implementation of the fiduciary bill on april 10th for two years. if that goes through, it eventually kills that bill in my view. >> and that's an important one for your business. what do you think the impact would be more broadly if it doesn't happen, jeff? >> i think donald trump is going to review a lot of the regulations that were put in that have done more to hurt business, more to hurt the financial business. i mean, sarbanes-oxley is one of the worst bills i've seen in 46 years in this business. i don't think they're going to be able to repeal that one, but i do think they're going to be able to stop the implementation of the d.o.l. >> you know, for all the optimism that i think a lot of sectors have, you know, banking and drilling with the trump administration, there's at least as many sectors that are very concerned and are more pessimistic. anybody who's deeply embedded in china. you have anyone who's in the

pharmaceutical industry. there's a lot of worry about what could happen and what's on the forefront. so i think when we start seeing some policy come out, and that's a crazy thing for wall street to say. we always want nothing to happen. we are happy when they are confused and screaming at each other. >> they're like the fans during spring training. everybody can be an optomist. we haven't seen the games that count. you haven't seen a legislative counter, you haven't seen bills, you haven't seen many details proposals. that's when you decide if you are as good as you think you are. >> sports analogies. >> i love it. >> baseball spring training. i was going to say since you were abroad. one of the big news items was the u.k. supreme court said parliament had to vote on the brexit. maybe it suggests they have to put the brakes on a little bit? maybe parliament adds a few amendments there? how big a deal is that? >> the britts do not

particularly care for theresa may, that's the sense i got. i was on the show the morning of the brexit vote and said, this is no big deal. you ought to buy the ftse and out of every case there's a winner. i said it was going to be the u.k. multi-nationals and that have a big win provided you edged the currency. let's get to the earnings out from al could he a. morgan brennan has the results. >> the results hitting the tape. earnings -- adjusted earnings of 14 cents per share. that was a 10 cent miss versus the 24 cents that the street was expecting. revenue $2.54 billion. that was better than the 2.46 billion that analysts had been anticipating. in the release the new ceo, roy harvey, saying that rising a alumina prices. it has exceptional growth and stronger market environment.

increased profits and reported robust margins. still, you take a look at shares of alcoa after hours down 1 1/2%. the miss on the bottom line as its first -- in its first earnings report as this new alcoa company versus a beat on the top line. back over to you. >> listen, any time we're talking about that, it's a win. alcoa it's not been the market signature that it was. in terms of the season, there does come a time given what we were talking about with the metals. >> absolutely. stocks up 30% year to date. the year is 20 something days old. clearly this is just getting caught up in that big move. obviously not a lot to compare the two directly in terms of a year ago performance. i do think it's probably got to shake out a little bit. we'll see how it goes after hours. people will say the macro trends are enough. >> it's amazing given that it

would still be -- it's moving now down about 3%. >> that's not a huge move given that headline at all so, you know, you could even see it trade up higher tomorrow. we'll see. like mike said, it will take a while for this to shake out and see how this trades and for the rest of earnings season to flow through. >> morgan, thank you. jeff, before you go, what's the best opportunity for investors right now? >> i think they need to be long u.s. stocks. the biggest revelation, all they want to talk about is big caps. everybody wanted to talk about small and big caps. that is a first for me in 35 years going to europe. >> you want people to go the other way? you want them to do the big cap? >> no, i want them to buy small caps and midcaps. >> okay. making sure i'm following here. small and midcaps is the way to go. thank you, jeff, for joining us

and dani, thank you for your time. president trump meeting with the ceo's of the nation's big three automakers today. he's calling for more ought tow factories to be built in the u.s. we'll discuss if that could lead to the beginning to the end of electric cars. plus, is the best way for the government to go out and buy a drug maker? that's what one prominent doctor says and he'll join us later on the "closing bell." well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.

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welcome back. president trump calling on the nation's automakers to build more factories and hire more workers. phil lebeau has the story. >> donald trump is essentially saying, you know what, i don't want you to bring back a little bit of production here. i want the entire plant coming back here to the united states. they met for about an hour, trump along with the ceos of ford, general motors, fiat chrysler. he believes if a vehicle is sold in the u.s. it should be built in the u.s., as i said earlier, he wants the entire plant back here, not just a small increase in production. >> it's the long-term jobs that we're looking for. we're brick manufacturing back to the united states bigly. we're reducing taxes very

substantially and we're reducing unnecessary regulations. >> will those moves be enough for the automakers to say, sure, let's put a new plant in ohio or michigan? if they do, it would add to the rebound that we've seen in auto manufacturing jobs. so far the ceos once they left the meeting with president trump were noncommittal about adding jobs. >> as an industry, as an auto motive industry we employ many people across america, good paying jobs from the people that work in our factories to manufacturers that support our plants with parts to our wonderful dealers who are literally in every community across america. >> as you take a look at shares of ford, general motors and fiat chrysler, all of them were up despite the fact if they have to add plants it will likely mean an increase in costs, in capital expenditures. we should point out there was no deadline given at this meeting. it's not like the president said

you come back in three months or you come back in six months and tell me which plapts you're going to bring back here to the united states. what you're going to see from the automakers, they're going to take a wait and see approach. that will give them an indication of what they need to do with their plants in canada and in mexico. >> yeah, that's the biggie. phil, stay right there if you would. president trump also touching on environmental building permits with the automaker ceos and the process it would take for the companies to build in the u.s. >> i am to a large extent an environmentalist, i believe in it, but it's out of control and we're going to make a very straight process. >> environmentalism is out of control. where does that leave electric vehicles? let's bring in filmmaker, one called who killed the electric car and revenge of the electric car. chris, welcome. >> thank you. >> so what do you say about the electric car now?

>> well, the electric car is doing pretty well. in fact, if you look at the car plants that actually brought to the u.s. or are being built in the u.s., they're largely electric car factories. you have tesla's factory in fremont, g.m. bolts being built in michigan. tennessee and priuss are being built all over the place. so i think, you know, the auto industry and actually electric cars are now getting along much better than they did when we made "who killed the electric car?" >> phil, is there an impression it won't be as favorable an environment for electric vehicles? >> people like having cars that get 50 miles to the gallon. that really works for people. that's what the prius was. and a lot of people who get a chance to drive the electric car think it's pretty cool not to have to go to gas stations. if they have the kind of lifestyle and driving to go to

the gas station, electric cars could be a very good option for them. it's almost more about the consumer and the market demand than what the government is saying about it. >> what were you going to say, phil? >> well, i would agree with chris. i think when you look at the consumer, a couple of things are changing. first of all, you're seeing more options on the lower end of the market, whether it's with the chevy bolt, you're going to have the model 3 theoretically, the first delivery at the end of the year. let's say it happens in the middle of next year. you also have the nissan leaf that is out there. and a number of other automakers saying they're going to come in with more moderate priced electric vehicles in the next few years. that helps in terms of supply and also in terms of range. that's the other component here. you no longer have the cars getting you 40 miles of electric range. you're now getting up into the over 200 range. that makes people say, okay, now i can see myself buying an electric car. >> that's exactly right.

there's a lot less repair with the cars. i don't need to go to the car dealer as often. once people get a chance to drive them, the range goes up, it's just going to keep growing. that's my view. >> chris, the economics of that. we've talked about with tesla, for example, how there's a subsidy of the vehicles that runs out. it's becoming a little bit more price competitive. good, that means there's a real market out there for electric vehicles. is there any risk that they are too dependent on this credit? >> well, the credits are important. you look at what the government wants to do is like stimulate the economy, stimulate people's interests in american made cars and environmental cars. that helps move the market forward. yeah, right there, $7500 tax credit. that's a big plus for people. i think you just have to balance it where subsidies are going in other places, to oil drilling and other things like this. i'm a big advocate of the subsidies. i think the market will survive

whether we have them or not. >> kelly, don't overlook the possibility that it could be extended. >> yeah, that's right. >> extended. and where do you think that leaves the market for the automobiles? >> i think the other piece of this, phil sort of hit on this. if you're trying to extrapolate from the conversations with the big three automakers, it would be the mileage standards that are very aggressive for their whole fleet. what does that mean? does that mean they have to put less money into the small gasoline cars to try to get them more mileage? and therefore the electric cars look okay in comparison? it's hard to know exactly how it shakes out but it doesn't seem as if anything that's gone on is going to snuff out electric car production. >> yeah. >> thank you for joining us. >> make them more competitive in european markets, too. the car makers really win when they build electric cars in the u.s. because it extends their market all over the world. >> they've dominated norway. phil, thank you very much as well. we have a newsletter on gap. courtney reagan, what's up with

the retailer. >> hi there, kelly. gap is announcing that banana republic global president is going to be leaving the company entirely at the end of february. andi owen has been with gap, inc., in some capacity for the last 25 years. they do not yet have a replacement. in the meantime ceo art peck will be overlooking or overseeing, i should say, banana republic while they find a permanent lead for that brand. so this is just another step perhaps in the evolution of the brand that has definitely been struggling. we saw a pretty good december, but the month prior to that were not great for banana republic. kelly, back over to you. >> courtney, thank you. 11 years, that's how long it's been since the economy grew at least 3%. so president trump promises he'll deliver that and more. up next, we'll see what the economy will look like with that growth and what it will take to get us there. trump has promised to bring down drug prices.

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welcome back. we begin here with seema modi with an earnings alert. seema? >> seagate technologies stock is moving higher after hours. earnings and revenue beating expectations. 1.38 versus a consensus of 1.08.

revenue topping. $2.89 billion. the ceo saying near record results in growth margin, cash flow and profitability. the stock has gained 34% over the past few months. the stock building on the gains by 4% and switch over to cree. q3 earnings well above expectations. you can see shares also higher by 4.5%. lastly, capital one in focus, the credit card issuer posting tloorts it missed. earnings 1.45. that is well below 15 cents. revenue, $6.57 billion. the expenses increased 9% in the fourth quarter. shares down about 1%, kelly. >> all right. thank you, seema. president trump meantime promised to deliver 4% economic growth but it's been 11 years

since we've seen 3. steve liesman has what it will take to get gdp to crack 3%. >> more than a decade. president trump says his plan will get us to 4. economists say he'll be lucky to get to 3 from the current average of 2%. what i do is look carefully at the boon years. looking for the secret sauce and the first thing you find out is it's a rare secret sauce. it happens just 30% of the time. here's what else happens. consumer spending, it has a surge. more than 3.5% from the current level of 2.2%. productivity has to be high. 2.7%, we're running 1.1. you also get good returns from the stock market. s&p rises on average 16%. you get modest rises in inflation. growth is not inflationary which is what larry kudlow tells me. half right. it's unclear if he has the other half right. take a look here, consumer

spending is high. business investment which donald trump has said the big focus is. that has to surge. exports have to surge. imports surge when the economy does well. government spending, it can be all over the place but it's never negative. he'll have to be careful if he wants to get the recipe right and not block imports through tariffs. communists are divided among the trade deficit. that's something that president trump should try to reduce. there's little correlation with growth and even less correlation with strong growth. trump could boost the economy by helping imports and exports. he might hurt his own cause if he limits imports and government spending. >> that's only 3. what happened to 4? >> 4 is a tougher go. nine years they average out to 4% but you can just add a percentage point to a lot of those numbers right there. we did have a nice run in the '90s of 4% growth so it's doable. by the way, these things can be

a little streaky. you had four in a row in the '90s, two in a row in 2004, 2005. it can happen but you have to get -- if you notice the real lesson from the chart is you have to be firing on all cylinders. you can't have one down. by the way, it helps a lot when the whole world is growing, not just the united states. >> all right. thank you, steve. still got a ways to go to get there. >> sure. it's time now for cnbc news update from sue herera. >> here's what's happening, everyone. president trump telling reporters in the oval office that he will announce nomination to fill the vacant supreme court seat sometime next week. there's been a vacancy on the court since antonin scalia last year. >> sometime next week i'll be making my decision. this week we'll be announcing. next week we have outstanding candidates and we will pick a truly great supreme court justice, but i'll be announcing it sometime next week.

>> pakistan successfully tested a nuclear capable surface-to-surface missile that is able to deliver multiple warheads and evade radar. it was pakistan's second missile test in a month. it can reach targets at a range of 1300 miles. that's over three times the distance between islamabad and new delhi, india. fox sports reporter erin andrews revealing in an interview that she was diagnosed with cervical cancer. the great news is she is now completely free of the disease. that is the cnbc news update. kelly, back down to you. >> wow. >> that's good news for her. >> yes. wow. had no idea obviously. thank you. all right. let's send it over to seema modi for another earnings alert. >> looking at texas instrument reporting earnings well above expectations. 1.02 is what the company reported. that does include 14 cents of

items that were not included in the company's guidance. if you take that out, adjusted earnings of 88 cents still well above expectations. revenue a beetd as well. the press release the company says revenue increased 7% from the same quarter a year ago as demand from our products remained strong in the automotive market. automotive market has been one place of growth for texas instruments over the past one year. looking at shares just about flat. dipping into negative territory after hours. back to you, kelly. >> thank you, seema. when i see ti i always think of common stocks. president trump giving the green light to the keystone pipeline. what this means to the nation's energy infrastructure and the companies that could end up being the big winners and losers from it. what's team spirit worth? (cheers)

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welcome back. we took a few weeks off but today it was back to a record-setting day. s&p and nasdaq in record setting territory. nasdaq closed at 5600 for the first time. the dow adding 112 points. 78 shy from dow 20,000. russell small caps are back in a leadership position with a

percent and a half gain today. shares of transcanada and energy transfer partners moving higher after president trump signed executive orders reviving the pipeline project. the president spoke earlier about the production of both the keystone pipeline and dakota access. >> we are and i am very insistent that if we're going to build pipe lines in the united states, the pipe should be made in the united states so unless there's difficulty with that because companies are going to have to sort of gear up, much pipeline is bought from other countries. from now on we're going to start making pipeline in the united states. we build it in the united states, we build the pipe lines, we want to build the pipe. going to put a lot of workers -- a lot of steel workers back to work. >> all right. so who are the big winners and losers here? let's bring in katie mays from height analytics. good to have you with us. who are the big winners?

>> kelly, thanks for having me. certainly as you showed transcanada, energy partners are major beneficiaries here. there's also i think some major take aways with regards to the crude producers as well. as you know, keystone is originally envisioned as a pipeline meant to move crude oil from alberta into the u.s. refinery network, however, you know, since, you know, the denial by the president and a long delay, crude prices have really collapsed. so if you're trans dan, ycanadt have another shot at this. this is partly another outlet for the alberta producers but also for the producers in the united states balkan region in north dakota also struggling with pipeline delays with restrained infrastructure. >> you have your continental resources oil picks there. >> absolutely. >> who are the losers from this might be, katie?

who is not advantaged by this moving forward? >> sure. so, i mean, we'll certainly expect to see, you know, the crude by rail volume decline as both keystone and dakota access, you know, look like they're on track to move forward this year. so the crude by rail shippers have said they'll probably find themselves carrying less volume. they remain high according to historic levels. i think there is a lot of excitement about what this might mean for new natural gas pipe lines as well. so some of that existing pipeline infrastructure may lose value a little bit relative to some new projects. >> katie, even with this white house action here, maybe it gets kind of fast tracked, what are we talking about in terms of timing when any of these developments, when the development of keystone and dakota would become material for

a lot of these companies and for the industry as a whole? >> yeah, absolutely. those are very good questions. the reality is for a pipeline like dakota access which is already, you know, largely complete, roughly 90% complete. you can look at a little bit closer, you know, in service date, probably sometime this year, however, for keystone, you know, this is more of a surprise move. so you would -- you would expect that the pipeline likely needs some -- to revisit permits, revisit shippers. it's hard to make a suggestion but i wouldn't think realistically until 2019. certainly later this decade is the best estimate you would have to make. you know, there's a lot of work that transcanada realistically has to do. when you think of all of the protests that came up when keystone was originally on the table in places like nebraska. you know, it's somewhat been our contention this has been part of

the discussion that you would not -- if you're transcanada, you would not really want to move forward unless you feel like you have the regulatory approvals lined up. >> all right. i like your point, too, that it might hurt some of the railroads. katie, got to let you go. thanks for joining us this afternoon. >> thank you for having me. >> we have a news alert related to the story. >> good afternoon to you, kelly. real quick in the wake of the executive order on keystone. we have another statement we want to share part of with you. this is coming from one of the pipe manufacturers, a company called welspun tubular. it manufactured nearly half of the pipe that will go into the keystone pipeline. they say in part here, as a pipe manufacturer in america that is capable of executing large and complex projects, we remain committed to support and participate in the growth of the american economy as envisioned under the new president's leadership attributable to a spokesman from that company. president trump's made very clear today that he wants the pipes, the materials, all of

that to be constructed here in america. well funded based in little rock arkansas. the marnparent company is based mumbai. donald trump is trying to cut deals to save money. one guest says the way to do that is to buy drug company gilead rather than pay for hepatitis b treatment. you're watching cnbc, first in business worldwide.

welcome back. dr. peter bach from memorial sloane kettering penning an op ed saying the government should buy gilead. the costs dropped from 42,000 to 15,700. dr. peter bach joins us here. explain more about this. >> nationalizing gilead. that's your idea for bringing down drug costs? >> it may seem unusual. the reality is we're not getting there on help piet tis b. the number of new patients starting on the treatment is falling every week. we've only treated 600,000 of 3.3 million with the infection. we need a way to provide an adequate supply at an affordable level. it actually works to have the u.s. government buy from the shareholders at a proper premium and sell off the parts that aren't needed for treating help c patients. >> what's gilead's market cap?

>> about 100 billion. >> 100 billion and a debt. >> well over $100 billion outlay. you'd sell off some parts aside from the hepatitis business. but does this assume that the government would otherwise be paying for all of the drug treatments that now are going to gilead? is that the only way the math works for the government? >> the math works for the government because it achieves an important health goal in a cost efficient way. what wall street is telling us is wall street doesn't expect all of these patients to get treated. this is a treatment that we are told has a cure. it has low toxicity. it's just not getting to the marketplace. this is our way o of engineering a public health effort around a market price solution. >> i'm trying to do the math. if you take 2 million patients or so left that needs it -- >> about 2.7. >> 2.7 even. times $45,000 each. that's what you're saying? >> about $110 billion. >> exactly. so the market cap of gilead is

roughly on par with that. and that's why you're saying the assumption the only way this works out is if the government was going to pay for all of those people to get treatment anyway. >> i kind of get that, then what do you do with gileagilead. it sounds like you're moving money from one end to the other. and then you're left with gilead as a nationalized company with apparently no future beyond that. >> if it's put that way it's a little uncomfortable. it's not right. that's not what we proposed. we proposed buying the entire company. gilead's biggest business is hiv. it has a hep c and hiv business. we'd sell that off. $10 billion research pipeline. we'd sell that off. all we want is the most cost efficient way of getting "the help" c p-- the hep c product.

>> if you have the biggest customer and the price just simply is what it is, that there should be more room there? >> yeah, but it's not a negotiation. it's offering the shareholders a price that we think they would take. they could vote it down. the government acting like any other market purchaser of a company. it wants an asset strategic to them. >> negotiating it to deliver it to them. it's spotlighting a way. >> that's right. that's right. there's a lot of ways that you could make things -- transactions look very similar to this. a single procurement, treat all you can find. that would work. there were some minor things that we thought were appealing about it. we couldrepatriate the $31 billion that they can't do. $6.10 billion in long term capital gains that the government gets back. that juices the deal. >> nothing else is spotlighting the issue that more people need access to this treatment which

really does save their lives. >> send over a deal maker president. >> yeah, look, we don't expect markets when they're well functioning to achieve that goal. >> thank you for joining us. >> my pleasure. >> dr. peter bach. coming breaking news. and coming up on "fast money," stocks at record highs and top technician chris verrone explains what could fire up this rally.

welcome back to "closing bell." some action in the restaurant space. bob evans restaurant selling to golden globe capital for $565 million. this amid growing pressure from

tom sandell. he has been pushing to split up the business. sandell keep in mine does have a couple of boarish seats. i'll let you know that this is a small cap market cap. around $916 million. >> thank you. much american citizens reached economic status?

have american cities reached peak millennial? conner is addressing that issue. he joins us now for more on this. welcome, conner. >> hi, how are you? >> i was an intern ten years ago with the journal. you were on the team. look at you now. this is such a great story. the issue is all of these coffee shops and high rise apartment buildings have any business in a couple years? >> well, yeah.

as you can, the biggest bubble for millennials are way over 25. some are even in their 30s. what does that mean for all these apartment buildings we built? we're already seeing rents flatten or decline in a couple cities. people seem to be going back to the suburbs where school districts are often, not always better. i just moved to a single family house myself. i've become the anti-christ. i didn't think i would be here a couple years ago. >> i guess if you are somebody, an urban planner, is there anything to be done? do you try to retool for the next week? the next wave won't be as big or do you try on keep people from leaving? >> that's a hard question. i think there's one thing cities can do to help themselves. i didn't really address this in the story. make the schools better. that's the one thing you hear people talk about. a lot of people when they get to

my age, they have this question of, should i move to the suburbs where the public schools are a little better or should i stay in a city and either brave out a school that's not gas as i might want or go to a private school? when you talk on people about where they want to live and buy a house that's above and beyond price, that's the calculus they're looking at. any time i talk to an urban planner. the number one thing any city can do is make their schools a lot better ask people would never leave. >> that's a great point. what about people who want to stay in the city? they haven't gotten to thinking about schools yet. do you think they'll be forced to do the traditional thing or will they be able to stay in traditional cities? >> every time we have a bubble of people who are 25 years old, cities grow is prosper. this happened with the babyboomers in the '70s. there was a "new york times" article in 1981 that is a blaring headline. san francisco foreseen as haven

for wealthy and childless. that was quite long time ago and that was when the millennials would have been around 25 -- i'm sorry. babyboomers. the same thing keeps happening again. and it is not like an a pock limits in cities. it is like saying we have these big bubbles of population. and where people go, the investments follow. millennials were around 25 in the last few years. we built a ton of apartment buildings and now they'll go other places and you will probably see the best school districts become even more expensive. and then kelly, when you're in a walker or whatever, you'll be talking about health care costs for them or something. >> it is really interesting to watch it all play out. thank you for joining us. >> from "the new york times." >> they'll have to do a swap program. retire to the cities. he? the millennials, here's a

problem. the housing staff. a lot of is it very old and i think the average age is 40 years. >> old housing stock, some of is it too big. it takes a lot of investment. >> i'm not a millennial but i'm raising kids and schools in urban centers. it can be done. >> it can be done. thank you. "fast money" begins right now. >> the keystone pipeline. something that has been in dispute and is subject to a renegotiation of term by us. we are going to renegotiate some of the terms. and if they would like, we'll see if we can get the pipeline built. a lot of jobs. 28,000 jobs. great construction jobs.