over our sister network telemundo, what's going on there. the big story, what is car loss flynn going to say. then this. the vanity fair cover in mexico features melania trump. the coincidence there, the irony was astounding to them. >> absolutely. good stuff, michelle. thank you. thanks for watching "power lunch." >> have a great weekend. "closing bell" starts right now. welcome to the "closing bell", everybody. i'm kelly evans here at the new york stock exchange. >> i'm mike santoli in for bill griffeth. president trump has a full schedule today wrapping up his first week in office. >> yeah, trump welcoming a foreign leader for the first time since taking office. theresa may, of course. the two just wrapped up a news conference. we'll have more on why trump

says brexit will be a good thing. >> tensions seem to be cooling between the u.s. and mexico at this hour. trump reportedly spoke to mexico's president this morning. details of their conversation and potential economic impact of the mexico/u.s. relationship. >> hour long call. a closer look at what's behind the drop in shares of ubs down 3.6%. that's coming up. let's begin with president trump. john harwood at the white house covering his meeting with theresa may and michelle caruso-cabrera is there, too. john, first to you. >> reporter: kelly, president trump wrapped up his first full week as president by receiving his first foreign leader in the white house and staging his first news conference at the white house. the two leaders were very warm and friendly with each other. they emphasized things they agreed on. they talked about the common search for new u.s./u.k. bilateral trade agreement in the wake of brexit for the u.k. and the united states pulling out of

the trans-pacific partnership. theresa may conveyed the invitation to the queen for a state visit later this year. he had reaffirmed, which is important to our european allies, the u.s. commitment to nato. they also ventured into some discussions of issues they disagree on including sanctions against russia. theresa may said she hopes and brittain hopes that the united states will maintain sanctions on russia amid reports that president trump will talk to vladimir putin tomorrow and maybe as early as tomorrow could lift those sanctions. here's how president trump responded on that. >> i hear a call was set up, steve. we'll see what happens. as far as the sanctions, very early to be talking about that, but we look to have a great relationship with all countries ideally. as far as, again, putin and russia, i don't say good, bad or indifferent. i don't know the gentleman. i hope we have a fantastic

relationship. that's possible and it's also possible that we won't. we will see what happens. >> reporter: the back drop to those comments about vladimir putin are things that president trump said that sounded positive about putin in the past and of course the reports that russia interfered in the united states election in the fall by hacking democratic entities. one other thing to note about this news conference in contrast to those of president obama, it was much shorter. this was 18 minutes. there were individual answers that president obama gave that lasted 18 minutes in some news conference, guys. >> we remember that not so long ago. it has been reported that the u.s. and u.k. might have some kind of relationship able to send workers to each other without jumping over a bunch of hoops like you have to do right now. was there anything along those lines that came up in this press conference? >> not that came up in the press conference. there wasn't a lot of details, but clearly that kind of thing

is what you would expect to come out of a bilateral deal that had some real depth and meaning to it. >> all right. two brand-new leaders having a relatively uneventful but interesting press conference. thank you, john. let's turn to michelle caruso-cabrera also as the white house. bring us up to date now that we have a little more detail on this conversation. >> reporter: yeah, that relationship as you call it, has been a little more eventful, hasn't it, mike. more twists and turns. we know now that the president of the united states had an hour long phone call with the president of mexico. here's how the president described that phone call during his news conference with theresa may. >> we have a really -- i think a very good relationship, the president and i, and we had a talk that lasted for about an hour this morning. and we are going to be working on a fair relationship and a new

relationship, but the united states cannot continue to lose vast amounts of business, vast amounts of companies and millions and millions of people losing their jobs. that won't happen with me. we're no longer going to be the country that doesn't know what it's doing. mexico with the united states has outnegotiated us and beat us to a pulp through our past leaders. they've made us look foolish. we have a trade deficit of $60 billion with mexico. on top of that the border is soft and weak, drugs are pouring in and i'm not going to let that happen. >> reporter: we played those back to back because of the constant kind of on the one hand then on the other hand nature the way donald trump talks about mexico and mexican president. we have a very good relationship yet they are beating us to a pulp. both the white house and mexican government put out a joint statement this afternoon. extremely similar except for the

statement from the mexican president's office was much more explicit saying that the two agreed not to discuss how the wall will be paid for in public. back to you. >> michelle, what's your read on kind of the intent of the joint statement out there? was it meant to dial the temperature down a little bit on this relationship? >> yeah. i think so and then peter navarro, when he came out to speak trade with us, the first thing before there was even a question asked launched into how mexico was important to us, it is important that they're stable. so i think there was some kind of effort today clearly with an orchestrated phone call to try to tone things down. >> all right. michelle, thank you. again, michelle caruso-cabrera covering all the busy action in washington today. this morning we learned that u.s. economic growth slowed in the final quarter of 2016. some economists are blaming the widening trade deficit. steve liesman is here to look at that.

>> maybe a little dollars and maybe a little soy beans. president obama's term ended fittingly with the same growth number that has been the center of controversy, 1.9% growth for the fourth quarter. that's also for the year. that's a bit below the 2.2% but right in line with the 1.8% that prevailed with the presidency. economists said that's the new growth rate of the economy. obama did it to hit well and grow faster. president trump argued probably successfully with a lot of voteers thvot voters that he could do better. down 2.5 in consumer spending. exports, a big turn around, 4.3% decline and imports up more than expected, up 8.3%. taking a look at the charts on gdp, you see we had a really lackluster first half of the year. three lame quarters in a row. then we had the snap back in the third quarter and then coming back down to what many economists think is the trend of

the fourth quarter. there's been a surge in confidence as you guys know amongst consumers and ceos. that could translate into maybe some additional spending and growth. the effects of the real stuff, tax cuts, deregulation, infrastructure, if they're going to boost growth, we may not get that until several quarters after they become long, guys. that could be well into next year. >> steve, it's surprising to see the export number to be that weak in gdp. is that just because of the dollar. is that because of those one offs or is there risks that could happen? >> no, the dollar is out there which did strengthen. what do you want to call t it was like 97 the dxy was 97 before the election. it shot up to like 106. now it's like 103. now it's down to 100. that's about where it is. i think there's that effect there. you also have the huge soy bean thing which happened in the third quarter that boosted exports and then it came off. i don't think that there's a reason to believe that is going to be a tremendous change in the

terms of trade for the united states now. >> all right. >> sets a baseline for 2017. we'll see if we can pick up next. steve, thanks very much. let's get to our "closing bell" exchange. today we have rob morgan, o'neill securities over at post 9 and our own rick santelli at the cme. rick, let's pick up there with the gdp report. slight down side risk. not sure houma material that is versus expectations. you did have a little bit of easing back of treasury yields. how do you think we're set up in terms of what the bond market's really expecting out of the economy let's say into the fourth quarter. >> first of all, mike, i think it's super important to continue to look into the rear-view mirror to get an accurate baseline so we can see some of these administrative changes and legislative changes actually get on the books to see how much improvement we get. with regard to the level of interest rates, you're correct. it was a small response with

interest rates moving lower. and, you know, even though we had subpar growth for 2016, i do think the confidence numbers aren't necessarily great tools to give you immediate trades. they're kind of like the vix many ways the markets lead them by a little bit, which is a bit misleading. all in all that's a powerful aspect of the investor class that shows up in things like 20,000 mid week with regard to the dow. and rates on the week, mike, they're virtually, you know, depends how sharp your pencil is. absolutely unchanged. tens and 30s up one. even the dollar index closed right around let's say par and three-quarters. it's not far off on that. i think the dollar index and foreign exchanges is what you need to pay the most attention to. all these trade issues on the front page are important. i don't know if it's good, bad, it's just change and i think that change is best reflected in some of the movement that we're

going to see between the yen, the euro and the dollar. >> earnings are also a big -- yeah, the peso for sure. how about earnings? we just got a ton of big cap names reporting after the bell yesterday. what is that doing in terms of the price of the stock market here? >> look what the market's doing today. it's waffling around a little bit. really digesting. we've had the range of earnings. some of it very good, some of it not so good. overall the sense is that investors are still comfortable where we are based on what the dow and the s&p have really done, really made new highs this week, although you see where the vix is. very complacent. 10, 10.5, 10.60 which is a little bit concerning because if that starts to heat up a little bit you'll see the market back off. we have the markets and the macro data. it will flow into the broader issues, both political issues, policy, that kind of stuff. then we'll get a better feel. sense is the market is okay

here. people feel like it's okay. there's no reason to rush out the door, but there's no real reason to rush in the door anymore than they are at the moment. >> rob, how are you approaching the markets right here? obviously the index is holding onto the gains. a little softness on the surface. also, a lot of divergence between what is working and what hasn't. as an investor, how are you dealing with it? >> i've continued to like stocks here, mike. i do think that, you know, building on rick and kenny's comments, we're going to continue to see rates go up. the dollar's going to go up and that's going to numbering up. that's going to have a head wind on big cap and multi-national stocks. so from a macro view i'd invest in more of the small cap growth stocks and sectors i like include financials. probably my favorite sector with the steepening yield curve and deregulation. those are some favorite macro spots for me. >> rob, real quick. i mean, what about dow theory? we have the industrials at an all-time high. the transports, too, which we

haven't talked enough about. by the way, i think dow chemical is as well. but, anyway, what do you make of that happening now? does that mean we have more room to run? >> yeah, i think so. that's z-- and i'm certainly no a technician by any -- but i do look at the technicals. i guess they'd call that a confirmation. yeah, i think that is a positive sign that there's more room to run. >> kenny, what about you when it comes to the same kind of index there? >> listen, i'm bullish on what the future's going to look like. i'm a little bit cautious near term. i think if you see a little bit of an uptick in the vix then you're going to see the market pull back just because we've had that big run in. it needs to consolidate. the only way it's going to do that if it corrects a little bit. 3, 5% wouldn't be out of the question. for the long term i'm very bullish. >> rick, just quickly looking into next week. this jobs number we're going to get next friday, hold a lot of significance, more than any other one that we've had recently? >> no, i don't think it does,

actually. it's always important. we always are going to pay attention but i really think some of the currency and interest rate relationships and how we see some of these programs impact markets is key. a market that i don't often say, you know, it is more about the peso and the euro. i think you need to watch the yen. the japanese have been watching how the new president is dealing with some of these trade issues. my guess is the japanese currency may be a little bit of strengthening in the future. to rob's comment, i've been a dollar bull. i liked it at 95. i thought we'd see much closer to 100. close to 104. i'm getting much less bullish in the dollar especially in the medium to long term. >> thanks, everybody. have a great weekend. >> you as well. >> about 45 minutes to go into the close here. dow's down 18 points after a record-setting week. it was at 20,100. s&ps down, transports down, russell is down. nasdaq is trying to stay positive. >> energy stocks under pressure.

teamsters president james hoffa speaks to us about trump's jobs and trade initiative. up next, net withdrawal of more than $15 billion in more than one quarter, declining gross margins. we'll take a closer look at wells management giant ubs, you're watching cnbc, first in business worldwide. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

welcome back. shares in american airlines are lower by more than 5% today. the carrier's first quarter outlook for gross profit margins coming in below estimates. they're facing rising wages for flight attendants, mechanics and baggage handlers. >> it's not. a day after the airlines were a very strong group, southwest gave a lot of people encouragement. this is another air pocket. we'll see how that shakes out. meanwhile, also down on the day, ubs shares on the back of that bank's earnings this morning. dominic chu has more on the move. hi, dom. >> shares under pressure after posting earnings beat.

profits did fall in the fourth quarter 738 million swiss franks. the swiss frank is trading pretty much parody. that was still ahead of expectations thanks to modestly better operating results and expense results. ever since the finance crisis ubs has been trying to restructure itself and focus a little bit more on asset and wealth management operations. they saw net money outflows during the period but a pry thor spot is the u.s. wealth management picture which posted better profits, rather, than a year ago. now speaking to cnbc earlier today, ceo sergio ermotti talked about the path going forward. >> our continued option is to grow organically and stay very clear and focused with our current strategy that has been paying off. >> that current strategy, again, focusing more on asset and

wealth management. ubs a big reason why you're seeing weakness in other lenders. cred credit suisse on the down and out and deutsche bank. they have rallied really strongly off of their lows last summer and early fall. still well below where these big guys were two to three years ago. so, yes, it was a big bad trade, some record lows for some of these names just about a few months ago. they were up but a long time to go to get back to where they were in 2014 and '15, guys. >> mike, you can see these results. ubs takes out some of the other european banks but meanwhile you have guest after guest telling us the u.s. financials are a bit of a trade. >> there's a dichotomy here. as dom said, ubs is a wealth manager. look at what morgan stanley's done, the retail banks and brokers have been doing well. i think it's an overhang of

never having purged the system. they're well below their highs as dom said. i feel as if there's almost justification for that divergence. we're arguably with our financial sector a couple of years ahead in terms of the healing process. >> the real question is are they going to catch up. >> that is the question. >> thank you, dominic. 40 minutes to go into the close. >> we still have modest losses on the major indexes. we have the dow hovering holding most of its gains but not quite to be able to hold that 20,100 mark. up next, dow component chevron which you can see on the bottom right of your careen is lagging. it's the worst performers in the industrials. also up, teamsters james hoffa has his take on donald trump. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high,

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welcome back. we're looking at a live shot outside the pentagon where president trump is arriving and will be conducting a ceremonial swearing in of defense secretary james mattis. that should be taking place not for several minutes yet. still, that swearing in. he is arriving on the premises. it comes on a day when the pentagon and its efforts, whether it's with the submarine program, the f-35 are very much in focus. >> absolutely. the scrutiny of lockheed martin

and of the submarine makers has definitely remained fairly intense and the company is feeling like it has to respond. obviously secretary mattis will be the one who is responsible for the department procurement. amazingly complex, you know, system for dealing with these contracts. but he's certainly going to be obviously the president's point person. >> that's sort of the issue when it comes down to the cost of a lot of these programs. the other interesting thing is we're waiting for several executive orders from the president. these are just likely he could change his mind at any moment. we're told they would have to do with vetting, with military readiness and with the national security council. so there's an interesting theme here of both perhaps ramping up our military in terms of preparedness, even of funding broadly speaking and yet really pushing on costs when it comes to specific programs. >> yeah, clearly he's more or less said this, the president, that he is going to run like the person who's developing a project and trying to kind of squeeze the best deal out of the contract. i mean, that's kind of his

orientation. whether you can do it or not on the hardware. he's most concerned with make sure that this plane or this submarine costs less than it's supposed to. >> president trump, there he is, about to arrive in the pentagon. again, he'll be conducting a ceremonial swearing in of defense secretary james mattis. we're expecting that to begin around the top of the hour. he's there with vice president mike pence as they make their way in and we'll bring you shots of that when it happens. just keeping an eye on it for you there. a little bit more than half an hour in the session today. >> yeah, so we still are sitting on losses. chevron is actually weighing on the dow. good for about 20 points of down side with about half an hour to go. we're going to get a leading trader to tell us what he's watching into the close in the final session of the week. we'll speak to teamsters president james hoffa about president trump's trades. "closing bell" will be right back. and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere.

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and they're absolutely right. they say that it's hot... when really, it's scorching. and while some may say the desert is desolate... we prefer secluded. what is the desert? it's absolutely what you need right now. absolutely scottsdale. welcome back. markets taking a pause. drifting off the levels somewhat. the russells were the worst performers. microsoft seeing another all-time high. the software giant reporting a quarterly earnings. growing demand for the cloud services as it shifts emphasis

away from traditional software. i think i read an article, mike, saying they are number two in the cloud. shares are up 2% today. >> certainly doing its part to keep that dow. with a half hour to go with art cashin. ubs. couple of quiet days following the dow 20,000 day. anything going on below the surface we should be concerned about? >> not anything terribly big. as we remarked a couple of days ago, the final,000 points, second fastest thousand point run in dow history. when you go that fast, you have to consolidate. that's what we've been doing. under it, as you noted earlier with crude oil prices a bit weaker, some of the energy stocks are weighing on the dow. >> chevrons numbers didn't help that out. also noticed this morning, treasury yields dipped back up slightly. it seems as if when the yields don't go up stocks don't have a lot of impetus to get higher. >> we're going to start to look

next week with the fmoc, bank of japan monday night. we'll have a couple of central bank things working there. then we'll find out what's going on in washington. >> you know, everyone keeps asking you, everyone keeps asking us. why doesn't wall street seem to necessarily focus on this trade war rhetoric. it seems like they're letting it defer that concern for a while. >> i think they're waiting to see if it actually comes to shots being fired. for now it's all verbal cross string is the way people are looking at it. when it looked like it was going to get a little out of hand late last night, suddenly we had a one hour call this morning. cooler heads probably will prevail. >> thanks. have a great weekend. >> kelly. thank you, guys. time for our cnbc news update with sue herera. >> here's what's happening. antiabortion rally at the national mall for their annual march for life event. their lineup of speakers included pro life activists from

across the country and that included vice president mike pence. >> i'm deeply humbled to stand before you today, deeply humbled to be the first vice president of the united states to ever have the privilege to attend this historic gathering. german chancellor angela merkel and francoise hollande paying their respects. 12 were killed and 48 attacked. rafael nadal back in the finals of the australian open. he defeated grigor dimitrov in a thrilling five hour five set match. exhausting. he'll face roger federer in sunday's championship. >> the story is federer and nadal in the finals, first time in five years they'll see each

other. nobody necessarily thought this could even happen. three months ago federer and nadal was at the tennis academy. they could barely play tennis with the kids and now they're facing off at the majors. >> it's going to be an amazing match. it is must-see tv. i can't wait. get your morning coffee. >> that's what i was going to say. get your morning coffee. just a little bit early. >> all right. thank you so much. let's send it over to dominic chu for a market watch. dom. >> kelly, mike, what we're watching are shares of "the new york times." they have recovered some of their losses but you'll see on the right hand side of the chart, they're a decent spike lower. this is coming off of headlines. carlos slim has been having a news conference with regard to answering a number of questions here. in one of the headlines according to reuters, carlos slim has been selling "new york times" stock for some time. that's the reason we did see

that dip there just about a few moments ago. we should also note here that as of the end of 2015 carlos slim was still "the new york times" largest shareholder for its common less voting rights shares stock, about, again, 17% there even though the soltzberger and that family holds it. it did dip decently. it's recovered many of those losses. reuters headlines, carlos slim. been selling "new york times" stock. back to you. >> dom, real quickly, did he say why? was there a rational given? >> no. interesting point. he's answering reporters' questions. somebody will follow up. no color on that now. if they do get it, guys, we will of course bring that to you in a news alert. for now that's the reason the shares are reacting the way they are. >> don't want to imply any tit-for-tat going on. >> i'm not sure that would be the target anyway. >> all right. dom, thank you. just a short time ago

president trump held a news conference with british prime minister theresa may. may said they're looking to give a voice to workers in their country. >> joining us to discuss is james hoffa. general president of the international brotherhood of teamsters. thanks for being here. >> good to be here. >> what is your membership's perspective on all of these initiatives that we're hearing about with the president now kind of exwilling tolling the participation of other units, trying to protect u.s. jobs. is this something that you think is actually going to bear fruit for workers in the u.s.? >> i think it's going to and we pledge to work with the president where it helps organized labor. he's doing the right things. he took care of trans-pacific partnership which we thought would hurt workers in the united states. he's going to renegotiate nafta. he's bringing back jobs to ford

motor, chrysler. he stopped carrier from sending jobs. it's positive developments. we're encouraged by what he's done. hats off to him. this is good. he seems to be saying the right things. where we can work with him, we're going to. we've got to bring good unionized jobs back to this country and we're doing that. >> mark cuban claimed the president was cutting off our economic nose despite our face. mike and i were just talking about the likely prospects of, you know, all of this talk turning into real action. so i guess the question is, you know, are we to take this at, so to speak, face value that all of this talk about putting our workers first, putting up barriers, taxing imports, all these things are really going to happen? is that your -- you know, is that your assumption at this point? >> well, so far so good. i mean, he's only been in since friday and look what's happened. i mean, it's -- he's done amazing things. he's the talk of the town right now and i'll take him at his

word, the markets are up. people are bringing jobs back. they're saying they're going to put millions of dollars into the american economy. they're going to build factories here. different people are saying that all because of what he said, you know, led by ford motor and chrysler. it's amazing what's going on so let's see if we can keep this up and if he does that, we're going to continue to work with him. >> mr. hoffa, i'm just curious. when's the last time you said he's doing amazing things about a republican elected official? >> we haven't anybody like this. he certainly is different, and we'll wait and see. but he's -- he's basically doing things that are not republican by going against trade deals which, you know, republicans basically like trade deals and by going against his party and being against t.p.p. and being -- going to renegotiate nafta. we've been talking about that for 20 years and finally we have somebody doing it. so we're going to join him to help him. >> you know, you mentioned that obviously bringing jobs back or preserving jobs, specifically union jobs would be a good

thing. you are in favor of all of that. he has said, for example, that he wants u.s. steel used in various infrastructure products, now perhaps made by union workers. would there be any stipulations that you would try to set in terms of the workers that are used for any federally-backed programs? in other words, will the unions directly get anything back at least in the way of commitments from the administration and congress in all of this? >> well, i think when you just talked about keystone, you talked about building pipe lines, he's talking about using, you know, american steel in the pipe lines. those are normally done by big corporations in cooperation with project labor agreements, with organized labor, with the teamsters and the laborers and other unions. we know how to do this. we're building pipe lines everywhere, but we finally have the green light to do it so this is all positive and we can do it. >> one final question. we know that -- we're just reminded recently again about

the numbers of union membership that has been going down. as part of the election you have some states moving to become right to work states. your members like the policies of this president. he could potentially invigorate them. so, you know, as an organization, what is your, you know, strategic move from here when it comes to the american work force? >> well, it's really too early to tell. let's see where this all ends up. we're only like four or five days into his administration so -- but so far so good. let's see what happens. i don't know where he's going with this but when he's talking about keystone, he's talking about renegotiating nafta, that's what we want to hear and that's going to put people back to work and keep good jobs here. going to stop this hemorrhaging of american jobs going across the border so i think we're on the right track. let's see how it goes out. it's really too early to make any big global judgments. he's only been there five days. let's give him some time. >> see how it goes, indeed. james hoffa from the teamsters,

thank you very much. 20 minutes before the bell. modest losses. dow down 20 points. s&p and nasdaq down very slightly. president trump wants to bring down the price of submarine. we'll tell you which companies are in the cross hairs next. >> coming up, larry kudlow argued that president trump needs to cut taxes now and he'll be here to speak his case. stay with us. introducing conduent. one of the largest business process companies in the world. whether it's in health care, customer care, technology, transportation or government. we touch millions of lives every day. conduent. advancing the everyday.

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wynn resorts higher by 8%. thanks in part to strong numbers at its new wynn palace in macao. >> shares up 8%. general dynamics up 4%. hunting ingalls could be in president trump's cross hairs after he said submarine prices need to go down. morgan brennan has more on the story we've been talking about. >> kelly, shares of general dynamics jumping after they took the unusual move to forecast sales. some of that future business could be coming under fire. here's what president trump told shawn hannity on fox news yesterday night. >> we're flaking submarine.

we're going to build new submarine. the price is too high. i'm cutting the prices down. >> amid strong earnings this is flying largely under the radar. it could be seen as an opening shot fired at general dynamics. weeks after the pentagon green lit approval of the $125 billion columbia class nuclear sub replacement program. trump has made it clear, he wants to cut defense costs even as he grows and strengthens the military. this is including a big push to expand the navy. just today the pentagon launching review to find ways to save money on the lockheed martin f-35 fighter jet as well as boeing's air force 1 replacement planes. that's sending shares of both of those companies lower today, lockheed and boeing. all of this happening hours before the ceremonial swearing in of james mattis of defense secretary. that is happening this afternoon with president trump headed over to the pentagon. guys? >> morgan, thanks very much.

we've got to keep watching stocks of the defense contractors. thank you. appreciate t. morgan brennan. with less than 16 minutes left before the bell, we have the dow and s&p showing slight losses hovering. small caps under performing once again. up next, since it's friday, david dearst has his acronym of the week. can you guess it? we'll be right back. but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

welcome back. let's accepted it back down to the white house now. some comments michelle caruso cabrera can bring it. >> reporter: jamie dimon got past our cameras when he walked in. he didn't get past them, kelly, when he walked out. >> who were you talking to? >> gary cohen. >> did you come to any conclusion, any plans? >> look, i think most people try to do things to get the country to grow faster, get more jobs for americans. we want to do our part to do that. >> are you optimistic? >> i'm hopeful. >> what would be your part to get help? >> proper trade policy, proper tax policy, proper employment policies. things that help create jobs for americans. small business. wages, et cetera. >> financial reform?

>> some of that, yeah. >> and who did you meet with, sir? >> gary cohen. who i've known for a long time and i think he's a real professional and a great person to have try to do these things. >> are you going to meet with the president at some point? >> hopefully at some point. >> thanks, guys. >> thank you. >> thank you. yeah. good luck, folks. >> reporter: once again, jamie dimon, ceo of jpmorgan. kelly and mike, part of the calf v cavalcade going by. >> guerrilla style approach. jpmorgan, ceo, michelle. it was interesting that he met with gary cohen. as he said, they are close friends. both probably still registered democrats. obviously both work at some of the biggest banks in this country. you know, you can pretty much try to guess the kinds of topics that came up. >> reporter: oh, certainly.

when he talked about proper trade policy, proper tax policy, you can imagine he's had a lot of talk about whether or not the economy's been stifled over the past previous eight years and a lot of the changes when it comes to job creation. he referenced that for sure. >> all right. thank you, michelle. >> i did like how he used the word proper. we know what the proper policy is. let's just do it. >> the one he likes. >> yeah. >> all right. thank you. we are heading into the close. ten minutes to go. art cashin mentioned we're paired off into the close. dow is down 15 points. david darst is here with your acronym of the week. welcome, sir. >> nice to be here. let me wish everybody a happy chinese new year. the year of the rooster. roosters are very hard working, prepared and look good, like you, michael. >> except they take credit for things they didn't actually do. the dawn, that's the old saying. >> oh, come on. >> with all of the things going on this week, the market acronym

has to be action. presidential memos, eight proclamations and one decree, okay? he's given 4, 8, 1. action means asia. asia, two things that need to happen are happening. japanese currency is weakening and the chinese producer price index has been rising. worried about deflation in china. now they might export a little. inflation. the c is currency. the dollar, i think it's a wonderful little mutt and jeff, husband and wife scenario, good cop, bad cop. trump talks it down, steve mnuchin talks it back up so it kind of keeps staying steady. it's off about 1.5%. t is trump's policies and what he's got going on. i would say it's interesting that as he talks about perhaps closing the door to mexico, he's opening the window to canada.

bye-bye. so i hope all these things work out for the good of our north american continent. the i is interest rates. interest rates have risen quite a bit since the election and in the last two weeks they've risen another 20 basis points. not only in the united states but in germany and all over the world. the o is oil prices. oil is good. the n is the best one of all. in fact, a christmas present. the n is the next several quarter's earnings. this one that we're entering in right now, that we're in, up 4 to 5% year over year. next quarter, first quarter, supposed to be up 12 to 13, then 10 second quarter, 10 third quarter and another 12 fourth quarter. that will be very good. next week we've got the five cs. heim price index, personal consumption, consumer confidence. chicago purchasing manager's

index and more corporate profits. >> pretty comfortable fixture you lay out there with all of those things seeming in balasz the market figured that out and that's why we're sitting here? >> happy, happy. the moments of the down side. don't worry, michael kelly, volatility is so low and we have -- i wouldn't call it a volatile white house, but we have a lot of newness right now that is going to move. this is the time for people if they're inclined to do so to buy protection since protection is cheap. 110 on the volatility index. >> not often you see under ten. >> near ten. >> seems like the bottom 1 or 2% of all observations of the vix going back 25 or 30 years. >> when the vix is high, it's time to buy. when the vix is low it's time to go slow. >> by the way, peter navarro, the trump administration, on the white house lawn. michelle caruso-cabrera said the vix is relaxed.

you'll see if we look back and say not anymore. >> relax the dow 20 thou. >> can we stop hating on the rooster? >> have a great weekend. happy new year. >> we're going to be back for the closing countdown. then after the bell we have why the ceo of a luxury maker is sounding the bell about tough times to come. you're watching cnbc, first in business.

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. dow is down 14, 3 and a half minutes to go in the trading session. been very calm. two days very gentle consolidations digesting those gains we got on wednesday when the dow did go over 20,000. we hit 20,100. treasury yields have been going up this week modestly. when they've gone up, the stock market's been able to go up. if they did back off this morning perhaps after the slightly weaker gdp number. so it's been a picture of we finally got above that 20,000 mark and since then we've had more stocks down than up. small caps under performing. the big question is in fact is this kind of the calm before we finally get some kind of a shakeout. the vix, other people talked to me about it. that's extremely welby historical standards. the market's been so calm. seema mody is going to talk a little bit more about what the

market has done on a big week. >> his tor:con week. under a trump presidency, mike. we've seen a flurry of orders. t.p.p., mexico border. trump making good on the promises to put america first. that's what's reflected. the dow jones industrial being the big winner. the s&p 500 but more experience with the international world, if you will. the dow surpassing 20,000. history making in the markets. next week it will be interesting to see if earnings dominate the investor discussion. apple, the biggest company reporting on tuesday. you had facebook on wednesday. by the way, i'll just mention, the role that social media has been playing helping the world leaders communicate. twitter up 3%. >> we have a market flash. >> reporter: we want to tell you the situation with the "new york times," stock appeared to fall after something that carlos slim said at his news conference in

mexico city is still ongoing. remember, he's a big shareholder. reports that he said he was selling. a spokesperson says that's a misunderstanding. he is not selling currently. he sold some stock a long time ago but he's still retaining the stock and he is nothing more than -- nothing more than a financial investment for him, meaning that he doesn't want to have any kind of editorial control over "the new york times." but you can see the stock coming back somewhat. the spokesperson saying that he sold some stock a long time ago but he's not currently selling. >> michelle, thanks very much for clearing that up. market seems to be taking a little bit of comfort in that. appreciate your report there. seema, it's also been a global mood. we had the dow hit a new report above 20,000. it's been international investors participating. >> that's what's so interesting. despite the fears of protectionism, a lot of the stocks or stock markets have been rallying. emerging markets the best month already up 7% just this year.

>> a big comeback since a year ago when the emerging markets were kind of in meltdown mode. seema, thank you very much. ringing the bell at the big board we have jeldwen holdings. celebrating the ipo. the new york academy of sciences. second hour of "closing bell" is in kelly's hands. welcome to the "closing bell", everybody. i'm kelly evans. a big week on wall street. it's going out with a bit of a whimper. 25 20,091. s&p down .10. 2294 with the russell 2000 dropping 1/3 of a percent to 1370. the nasdaq composite managing to bust a trend. it actually rose by .10 percent to 5660. i think that's good enough to

put it at a record high. now president trump tackling health care, trade, and energy pipe lines during his first full week as president. larry kudlow will join us coming up with an issue the 45th president needs to focus on and fast and i bet a lot of investors would agree. joining me first today, cnbc senior markets commentator michael santoli and cnbc contributor evan newmark. david bonson. this was president trump's first week. the dow breaks 20,000 for the first time. i mean, that's -- it's just -- that says pretty much all you need to know. >> it does. what's interesting about it is the way the market is just kind of absorbing all the headlines and really all the potential kind of policy uncertainty, both for good and bad depending on the outcome. it's sort of doing what it usually does, which is figure

out earnings are on track. the economy is basically behaving as you thought it was. do we have any kind of a global recovery story we can hang our hats on. earnings have been good enough, i think, to have that remain intact. now that being the case, market's been a little bit too calm. we said that before we got to 20,000. the big debate is did we basically avert the need for some kind of a pull back or some kind of a shakeout before we can see if 20,000 is a ceiling or a floor. >> we heard time and again since the election one was to sell the inauguration and the other was to buy volatility. we know quite the opposite has happened. it's only been a couple of days. when you look at how calm things are, do we start to stay complacent? >> if you buy all the stuff about the vix, it is complacent. i think what people have -- what investors need to get their hands around is the last several years the market has largely been a function of the fed, what's called the janet yellen market and now you're in the donald trump market. and so the market will respond

to his tweets from the white house, you know, this whole thing with mexico. i think the bigger surprise is that it hasn't responded more, that it's not been rattled more because it's really been kind of a -- of course, at best volatile first week for the president. >> you be prediunpredictable in. at the time nobody had been talking about the possibility of a lockheed program until that moment. >> what the market broadly speaking seems to be saying is that, you know what, president trump will figure out, if he's not already, that you can't bully a sovereign the nation the way you can bully a contractor for one of your hotels. i think the market's kind of going -- he's learned that already the first week and maybe -- because it's tending to see things with the cup very much half full as opposed to half empty right now. >> david, i want to talk both big picture and names you like. big picture, what are your

reflections on the week and what we've been through? >> you know, that comment before it was yellen and fed monetary issue and now it's turned over to trump, i think that's correct, but then what we face is when both of them are on the road at the same time. i mean, yellen kind of had control of where things were going all by herself and then now we see president trump and the post election kind of movement and this anticipation, that's really running the show. what happens when we get the two forces going against each other, perhaps some movement forward in fiscal stimulus and then some tightening in monetary. that's our big thesis that we think 2017 has. we don't know is what that tug of war between the two persons will look like. >> michael, there will be a lot more talk about the fed balance sheet going forward and what exactly they're doing with that. again, if this were the equivalent of going back a couple of years ago, trying to figure out the rate hikes and balance sheet, it's almost as if janet yellen were tweeting.

you can imagine the mood. >> absolutely. we used to obsess about the minutes that came out weeks after an actual meeting and decide if we had to parse the language and all of that. now i will just push back a little bit on the premise that it was then all the fed and now it is all about the trump and fiscal policies. because i spent five years saying it's not all the fed. the fed creates the context, the backdrop. it's there seeing the support and also what do we have along the way during those years? when the markets have a little bit of a panic over the fear of a policy error. everything, the premise is great, the fed is there, it's your friend. once in a while you think they're going too fast, too slow, make the wrong move. >> when i think it's about trump i think of it in the following context. janet yellen has a target that we talked about, 2% inflation, unemployment under 5%. plus or minus the objectives we largely achieve. donald trump has gone out there with the 4% economic growth. if you talk to most

economists -- >> some say that's as unrealistic as her 2% inflation target. >> in terms of policy, you have a president, rightly or wrongly, very sensitive to perception. thinks the world revolves around him. what he thinks of the world. if his people come to us three or four months from now, we're going to talk about this with larry and say, there's no way we're hitting 4% economic growth, he's going to have to recalibrate everything. he has an economy with 2% growth. >> i bet you he leaves it out there if it takes us 2 quarters or 20. >> yeah, but it will be his fault if it doesn't happen on his watch. >> 2% inflation more than 4% gdp growth. >> in any case, david, hang on one second because let's talk about what a difference a day can make here with president trump. yesterday relations between the u.s. and mexico were pretty heated over that canceled meeting between the leaders of the two nations. today they're trying to sort of

cool things off. michelle caruso-cabrera is at the white house. wonder if that works, michelle? >> reporter: with two days of rancor, kelly, but today we heard there was an hour long phone call between the two presidents in an apparent attempt to smooth things over. we learned about that this morning and president trump was asked about the phone call this morning during his news conference with the u.k. prime minister, theresa may. this was also supposed to be a day between the u.s. and united kingdom. a lot of the focus turned out to be about mexico. the president said the phone call went well. the two have a good relationship. it was a very friendly call. however, despite saying all of those nice things, the president did not back down on his criticism of the southern neighbor. >> mexico with the united states has outnegotiated us and beat us to a pulp for our past leaders. they've made us look foolish. we have a trade deficit of $60

billion with mexico. on top of that the border is soft and weak, drugs are pouring in and i'm not going to let that happen. >> also today mexican billionaire carlos slim held a news conference to discuss the breakdown in the relations between the two countries. he says the united states is taking a very big risk if it closes its economy. jpmorga jpmorgan's ceo was here. we missed him going in but we got him coming out. he was here to meet with gary cohen. >> i think most people are trying to do things to get the country to grow faster, get more jobs for americans and we want to do our part to do that. >> are you optimistic? >> i'm hopeful, yeah. >> what would be your part, snir what would be your part? >> proper trade policy. proper tax policy. proper employment policies. things that help create jobs for america.

small business, wages, et cetera. >> reporter: proper policies, assuming the ones that he likes. he told us he was heating with gary cohen who was the cfo at goldman sachs but who is now an economic advise zwroer president trump. back to you. >> another busy day. thank you very much. steve, i wanted to turn to you and talk about some of the companies you think are going to do well in this environment. blackstone's one of them, speaking of the financials. what are the big picture things you think that are aligning for them there? >> you know what's interesting is we wouldn't really even think of it as a financial in the sense that we talk about the big banks, the jpmorgans and citis of the world. blackstone reported their earnings and got a good boost up. it was one of the big gainers in 2017. the issue is very interesting with a name like that. it is somewhat pro cyclical. we think it benefits from the more stimulative things that could be happening on a macro sense but fundamentally it's a big cash flow grower, the

shareholders. it has all kinds of capability of growing the dividend distribution they offer and it has a lot of dry powder so they can kind of invest in the opportunity if things were to slow down. so we just think blackstone is an under appreciated name but it has a lot of bad news priced in. but that if any tax policy comes about that isn't as bad as anticipated, we think, yeah, a really guntd at this as well. >> you also like omega health care and spectra energy. evan, i'm going to ask you about the financials. the fundamentals are better if you take interest rates and tax a few things. but the run ups have been so huge. >> my view on financials, i'm going to paint it in an extreme. it's not that way. if you look at retail, 10 or 15 years ago and everybody thought, you know, retail. retail you saw amazon coming. >> right. >> 15 years. you saw it coming. you weren't sure how it was going to play out. if you look at most retailers, played out very badly for them.

the commotization will play out badly. asset managers. it will play out very badly. maybe you have some exceptions like a blackstone, but in general you will see entire sectors of finance get so commodotized. >> finance has always been a commodity. everyone's dollars is the same as everyone else's dollars. >> jpmorgan and lowe's isn't worth more. >> you had a period from the golden years from the '90s to the mid 2000s in finance you had to be stupid to not make a ton of money. >> the margins were great. >> you think you can buck the trend? >> of the various financials, it will do find. the days of the 20, 25% roe, it is over. i do nothing with my money. put a little more money into my

vanguard precious metals fund. >> oh, yeah? >> that's done well. >> cyclical metals? is gold in there? >> it's primarily gold. primarily gold. >> precious metals. >> by the way, i have no idea what's going to happen with gold but when i see the relative level of complacency in the market, i see that gold has had a bad few weeks and i say to myself, donald trump is like -- he's like -- he's going to be a gift to somebody who's going long -- you know, shorting the vix. i don't know when that's going to happen, but he will be a gift that gives and keeps on giving at some point this year. >> get that matthew ma ccconaug movie "gold" coming out. >> a tiny piece of money. >> i hear it. a lot of these things coming together. >> commodities are so far down from eight or nine years -- it's like crazy. >> i know. >> a different beast. >> no. >> commodities also got

commodotized a long time ago. >> thank you for joining these crazy people. ceo of hightower sponsor group. repealing and replacing b k obamacare is top of president trump's agenda. larry kudlow says tax reform should be the top of the list. president trump set to sign a bunch of executive orders. you are watching cnbc, first in business worldwide. [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

welcome back. president trump has only been in office for a week now, but he's begun taking action on a number of issues. here's a recap of some of what he did this week. >> we're going to have trade but we're going to have one on one. somebody will be handling a letter of termination. this is with regard to the construction of the keystone pipeline. something that's been in dispute and subject to a renegotiation of terms by us. i just signed two executive orders that will save thousands of lives, millions of jobs and billions and billions of dollars. these two orders are part of an

immigration reform we outlined during the campaign. >> i will not allow the taxpayers or the citizens of the united states to pay the costs of this defective transaction, nafta. our legislative work starts with repealing and replacing obamacare. and saving families from the catastrophic lives in premiums and debilitating loss of choice and just about everything else. >> and we likely have more executive orders on the way this afternoon but larry kudlow says president trump needs to quickly focus on another issue, and it's cutting taxes. in an op ed for the wall street journal larry writing, like reagan trump needs to cut taxes now to speed up job growth. welcome in larry kudlow joins us now along with andy bush, political economist and writer of andrew bush.com. larry, first to you. listen, you're beating this donald trump and it's starting

to feel like you're the only one. >> well, that's the way it usually is, kelly. anyway, steve moore and i are suggesting politely that you have to get a tax cut first and it should be the heart of the trump plan which we always believed it was the heart of the trump tax cut. repatriation, expensing. boom, boom, boom, boom. actually, for bipartisan support you can tie some of that, particularly the repatriation, to an infrastructure bill which president trump and democrats seem to want. here's the key point. if they delay, kelly, if they don't get it done this year and we have to wait until 2018, you're going to see a delay in economic activity and a postponement of stock market action. >> yeah. >> so if you want to fix this thing right, get it done, by the way, it doesn't need reconciliation. we're saying regular order. i'd like to see a bipartisan tax

cut bill like jfk and reagan. >> yeah. andy, how do we go from talking about massive corporate tax cuts and otherwise to tax hikes and border adjustment tax whatevers in the first week? >> well, the first thing you have to understand is the u.s. tax code is completely messed up because we tax exporters as those goods are sold overseas. >> we tax the companies that sell into the united states. we incent companies to build stuff overseas, back to the united states. that's what you need to know. caterpillar gets really hurt because of things like this. we have a $1.2 trillion self-tax on american companies that build here and sell overseas. we've got to get rid of that, and that's border adjustment. so i just want to say that is so key for understanding what's going on in the tax code and how it can help the u.s. grow.

we don't have to do -- we don't have to whip up trade agreements. you fix this in the tax code and i guarantee we will see a change in the trade deficit. >> larry, do you agree? >> no. >> how did we get here? >> andy busch is a very dear friend. at this moment i am completely unconvinced about a border adjustability tax. i don't want a planned economy where we're going to tax imports, which is going to blow the middle class, you know, walmart shoppers and so forth, and subsidize exports. i want a market economy. we've lived this way for so many years. i don't want to emulate here. i don't want to emulate asia, for example. i do agree with my friend andy busch that basically if we have the kind of business tax reform for large and small companies as steve moore and i wrote in the journal today, that's going to fix a lot of these issues. we will become the most hospitable investment environment in the world for our own companies and for

international companies. so that to me is the way to fix it. there are lots of issues regarding mexico and the u.s. we can get to that if you want, but i'm just saying generically i don't want to plant the seeds for some kind of national sales tax or value added tax. >> all i can say, larry, is that right now we are telling companies to build plants overseas, to hire people to build those plants and to work in those plants and then to ship those goods back to the united states. that's what we're telling. >> that doesn't address it. >> we are really doing a disservice to the american worker. >> yes, you're right. you're right. but that's not a border adjustable issue. you're right, but that's where we have to change our laws regarding repatriation and territory at at this. we don't want double taxintaxin. we have to provide immediate expensing, forget the business. i agree. all that -- >> those are all goods.

>> -- and all our companies will come back home. by the way, i just will say this. when you're talking about world trade, you cannot talk about free trade or fair trade unless you talk about currency reform. wildly swinging currencies will destroy the international trading system. i want to go specifically to the mexican peso, okay? there are issues on nafta, we can deal with that. the mexican peso since the election has fallen 12.5%. the last couple of years it's fallen 35%. if you go back to the time nafta was signed the dollar bought 3.5 pesos. today the dollar buys about 21 pesos. we have to have a currency stabilization fix. that's one of the key elements of all of these trade elements. >> andy, last word? >> last word is that as long as foreign countries taxed u.s. exports, we have to do something to change that and so while i agree with larry, expensing,

repatriation, all of those things are really good and we're going to get growth, a flat tax would be fantastic. no corporate tax would be the best. as long as other countries tax our companies, we're incenting them to move our jobs overseas. >> andy busch, larry kudlow, thank you, gentlemen. >> ain't gonna happen. ain't gonna happen. >> have a good weekend. >> not going to happen. >> lots to work on. thank you, guys. president trump has vowed to cut taxes for all-americans individually. a ceo thinks high end retail could be in for a 2008 like crash. details in just a moment. also ahead -- >> this is a story of how my dad and my first wife and also my second wife really put me together, saved me, and so i think -- i think people will see a different side than they've seen before. >> the director of the new

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there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. welcome back. looking at a live shot of the hall of heroes at the pentagon where we're awaiting the ceremonial swearing in of defense secretary james mattis. bring it to you when it begins. he was officially sworn in on the 20th on president trump's inauguration day. the president himself who we saw

enter the building with his vice president will be administering that ceremonial swearing in which is set to ginni moment now. meanwhile, a luxury goods maker is warning of a crash. >> french luxury conglomerate is looked to as a bellwether. it warns of impending doom. despite lvmh's record breaking shares hitting highs, says the good times are coming to a close. he's very cautious of 2017. he continued to explain when everything's going as well as it is, it's always these times that something unexpected occurs. he told investors like his friend warren buffet he is optimistic over the long term. but he went on to say over a ten year period normally there are

eight good years and two not so good years or even a very bad year. now we're coming to the end of a good period. he points to geopolitical and economic events that could change investor sentiments including rising interest rates. the exuberance with which stocks were rising, his words. and a geopolitical situation that's difficult to read. he continues to say there's talk of a trade war, tariff war, currency war. very difficult growth in europe. things will be far more difficult in the second half of this year. pretty scary talk there, kelly, happening in paris and from him. >> pretty remarkable stuff. what do you guys make of it? >> he's based in paris and it's like ground zero of all these tensions that are going on in europe. >> yes. >> if you're a ceo in europe and you just have gone through this whole thing with greece and barely holding the whole eu together, now you have brexit, it's hard to be optimistic

sitting in the middle of paris. >> the terrorist attacks. >> i'm saying his mindset -- he didn't say anything that was particularly insightful that anybody on the street wouldn't be able to say. eight good years, two bad years. >> sounds like anybody who's been to davos. the same kind of mentality about here are all the reasons why this isn't going to be a good period. excited to hear him say it almost making a call that there's an immediate basis to be making. >> well, it's not our time. the pendulum has swung this direction and there's not much that we can do about it. >> just a couple of days ago, courtney, there were other parts of the luxury sector that seemed to be talking about finally seeing some growth. i remember the journal had a story about it and it was like, oh, there's finally the sense of a turn around. people are feeling good. is there something specific to lvmh? >> you know, it's funny. luxury can be a tricky business to figure out. in some respects you would think everything is looking up. when you look at the stock market which most likely correlates or is the one that correlates most closely with

luxury sales, but then you've got folks like arnault who is really, really worried. it's hard to see what's going on. lvmh is very large. we call it a conglomerate because there's 70 houses of luxury and all of these different fashion names as well as leather goods, high end liquors and alcohol. there is a lot going on and that's why people do pay attention. so i think he's perhaps picking up on some of the fears that many are feeling in this country and around the world. good points about him being located in paris. he did just meet with president trump earlier this month at trump tower. >> the one thing i'll say, it's almost like a governor of a state. you want them to be building a rainy day fund, you want them to build a backup fund when the stock market isn't at all time highs. >> we are going through, which is probably affecting their business, maybe certain of their brands, you have that whole hedge fund, hot money, new york kind of thing, hot chinese

money, hot russian money. it seems like that whole time period has been eclipsed and the days of, you know, chinese billionaires walking into sotheby's and christys buying the $2 million art are past. for somebody like lmvh, that's a big thing. >> let's take you to the pentagon where james mattis is being sworn in as defense secretary. ceremonial swearing in by the president who you can see there with his vice president, mike pence. >> mr. president, chairman dumford, chair men of the joint chiefs of staff, leadership of the department of defense, men and women of our armed forces, distinguished guests, thank you for being here today for the ceremonial swearing in of general james mattis as the 26th secretary of defense of the united states of america. it is a high honor for me to be

with you today. you look around this room, we stand in a place of honor. the hall of heroes. names of 3,498 american patriots are inscribed on these walls, each of them performed personal acts of valor above and beyond the call of duty and received the medal of honor as a consequence. it is humbling for us to be among their names. and to be with all of you. secretary mattis is soon to mark his 50th anniversary in the service of this country. during more than four decades in uniform secretary mattis commanded marines at all levels from an infantry rifle platoon to a marine expeditionary force. he led in 1991 in iraq, expeditionary brigade in

afghanistan, went on to lead the first u.s. marine forces in central command. as a joint force commander secretary mattis commanded u.s. joint forces command, nato supreme allied command for transportation, u.s. central command. he directed military operations of more than 200,000 soldiers, sailors, airmen, coast guard, allied forces across the middle east. and now, mr. secretary, your president has called you to lead all of the armed forces of the united states. he and i have the highest faith in your judgment, your courage, and your dedication to this nation. and so on behalf of president trump, it is my great privilege to administer to you the oath of office. if you would please place your left hand on the baseball. raise your right hand. and repeat after me.

i, james norman mattis, do solemnly swear. >> i, james norman mattis, do solemnly swear. >> that i will support and defend the constitution of the united states. >> sna will support and defend the constitution of the united states. >> against all enemies, foreign and domestic. >> against all enemies, foreign and domestic. >> that i will bear true faith and allegiance to the same. >> that i will bear true faith and allegiance to the same. >> that i take this obligation freely. >> that i take this obligation freely. >> without any mental reservation or purpose of evasion. >> without any mental reservation or purpose of evasion. >> and that i will well and faithfully discharge the duties. >> and that i will well and faithfully discharge the duties. >> of the office upon which i am about to enter. >> of the office upon which i am about to enter. >> so help me god. >> so help me god. >> congratulations. >> thank you, sir.

>> thank you very much, mr. president, vice president. thank you for your confidence in me. welcome to your headquarters of your military, your always loyal military where america's awesome determination to defend herself is on full display. i would just tell you that you've maids clear, mr. president, your commitment to a strong national defense and the americans honored in this hall remind us of our strength as a nation of patriots. on behalf of your department i want you to know that after more than a decade of war, our longest war, those serving today have been tested and you can count on us all the way. we're grateful for you being here, for showing the respect for us on a day when former secretary of defense, bill cohen, former deputy secretary

rudy deleon is here. it's a reminder that this department stands in perpetuity as the defender, as the sentinels and the guardians of the nation and thank you for your confidence in me, mr. president. >> total confidence. thank you very much. thank you. >> and that's total confidence, believe me. i'd like to first congratulate general james mattis, now secretary mattis. secretary mattis has devoted his life to serving his country. he's a man of honor, a man of devotion, and a man of total action. he likes action. he is the right man at the right time and he will do us all very, very proud. i am honored to stand here today amongst so many patriots. you are the backbone of this country. you are the spirit of this

nation in every sense. the men and women of the united states military are the greatest force for justice and peace and goodness that have ever walked the face of this earth. your legacy exists everywhere in the world today, where people are more free, more prosperous and more secure because of the united states of america, and you have earned and ensured for our children the glorious birth right of freedom bestowed upon us by god. we stand today in the hall of heroes, great heroes, a testament to the undying courage of those who wear our nation's uniform and who have received the highest distinction, the medal of honor.

this is a sacred hall. the soul of our nation lives between these walls. these walls tell the story of those intrepid americans who gave everything, risked everything and fought with everything they had to save their fellow warriors and warriors they are, believe me, warriors they are. and to save wondrous liberties and to save this god blessed land. they shed their blood and poured out the love from their hearts to protect our home. we are in awe of their valor, tremendous valor, and we pledge our dedication to every single family serving our country and our flag. i have signed two executive actions.

it's supported by the actions of our government and they will always be supported by the actions of our government, believe me. first i'm signing an executive action to begin a great rebuilding of the armed services of the united states, developing a plan for new planes, new ships, new resources and new tools for our men and women in uniform, and i'm very proud to be doing that. as we prepare our budget request for congress, and i think congress is going to be very happy to see it, our military strength will be questioned by no one but neither will our dedication to peace. we do want peace. secondly, i'm establishing new

vetting measures to keep radical islamic terrorists out of the united states of america. we don't want them here. we want to ensure that we are not admitting into our country the very threats our soldiers are fighting overseas. we only want to admit those into our country who will support our country and love deeply our people. we will never forget the lessons of 9/11 nor the heroes that lost their lives at the pentagon. they were the best of us. we will honor them not only with our words but with our actions and that's what we're doing today. i promise that our administration will always have

your back. we will always be with you. and i just want to thank you very much. i want to just extend a very special congratulations to a great man, and that's secretary mattis, and i think he's going to lead us so brilliantly. he's a tremendous soldier. always has been. he's a general's general. every general that i spoke to, they just -- i won't say that they all said he's our favorite, but they did. he's our favorite. he's a special, special man. so i want to bless him and god bless you and god bless america and secretary mattis, i have no doubt you're going to do an outstanding job and thank you very much for accepting this

responsibility. thank you. >> president trump along with vice president pence administering a ceremonial swearing in for james mattis who is now secretary of defense. the president sitting down there to sign, i believe, the two executive orders he did just announce that are related to that swearing in. one of them is for the rebuilding of the armed services. the president saying we want -- let's actually listen in. >> doesn't that sound good? you know why, it's been a long time. too long. secretary mattis.

>> and this is the protection of the nation from foreign terrorists entering into the united states. we all know what that means. protection of the nation from foreign terrorists entry into the united states. and i want to thank everybody. there are many great heroes, many great warriors. we have tremendous respect for you all. thank you for being here.

>> new planes, new ships, new resources and new tools those are the words of president trump and announcing the two executive orders he did sign after administering the ceremonial swearing in to james mattis, the secretary of defense. leaving now the pentagon with his vice president, mike pence. john harwood is there at the white house. john, these were two of the three likely executive orders we were told about this morning, and we had -- it also comes on a day which has already gone back and forth with lockheed martin over the costs of their various programs. lockheed martin had put out a report saying they look to welcome secretary mattis's appropriate focus on affordability and capability. another busy day to close out the week, john. >> reporter: no question. we're going to have to wait and see how this military readiness

review proceeds. what gets translated into the budget proposal that we'll get from the administration later this year. i think the biggest flashpoint here is going to be the vetting executive order that he signed which suspects the -- indefinitely the admission of immigrants or -- excuse me, refugees from syria, the syrian civil war. major flashpoint in the campaign. he criticized the obama administration for accepting refugees and for hillary clinton saying she was going to increase that number. also stops the issuing of visas to the visitors from seven muslim countries including iran, iraq, somalia, yemen and others. this is something that will stand in for the muslim banned that he called for later last year. he backed away from a blanket muslim banned but people who are seeking to come in from those countries from those

predominantly muslim nations which the united states has identified or his administration has identified as a potential source of terrorism. and you're going to have controversy over that order. you did have the president in an interview with christian broadcasting today saying that the issuance or the admission of refugees would be prioritized for christian refugees in the middle east on grounds that they were mistreated and besieged minorities in that region. so this is the president in a way following through on what he initially committed to in 2015, modifying that somewhat and we'll see what the reaction is. >> yeah. he said, thank you, john, of james mattis, he likes action and the president himself proving he is a man of action and he closes out his first week. john harwood at the white house. thank you again. celebrations for the chinese new year starting already. will it bring new tensions between china and president trump? that's coming up. also coming up on "fast

money", tesla's adam jonas says it's starting to soar. not because of president trump. we'll see why he's so bullish coming up at 5:00. warren, to help me deal. isn't that right warren? 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.

nasdaq bucking the trend today with a small gain. everybody else was a little bit weaker after a big week in the financial markets. the dow 20,000 level that we pierced through. went to 20,100 yesterday. gave up a little bit. the s&p 500 down fractionally. the nasdaq good enough for a new high. something to keep an eye on as we head into another very busy

week. now celebrations for the chinese new year kicked off last night. lunar new year marks a big gift giving time for the chinese. i think it's the year of the rooster. >> thank you very much. this year the trends are showing us, the chinese new year is increasingly important to american companies is that the rest world. online spending is increasing and what are they spending on? increasingly oyl ported goods. and so one of the reasons why is because chinese consumers are becoming more sophisticated and they want authentic products. that's why american products have been very, very popular this season. i want to go through popular products so far. alaska black cod. this was a significant product. also, american lobsters. they were up 15 times from last year. liquor and beer. very popular here. but also, becoming increasingly

popular in china and that is jack daniels, jim beam, budweiser. of course, chinese wines have been popular. it is like paint thinner. those have always been popular. other top sellers for family, baby formula. all of these are around health. baby formula. car seats, cosmetics. we're seeing companies like alibaba and its partnership walmart making it easier for chinese consumers to essentially import using the internet. >> it all makes me wonder, you put the politics totally out of it. would china, would we start to have a trade surplus in 15 years. hits the whole, resolving it snaefl very different way. they're no longer the workshop of the world. they're still a big buyer of our products. >> that's why american companies look forward 10 to 20 to 30 years down the line.

they see how important the chinese consumer is. when you're talking about trump and the politics and everything, if there is a trade war, of course, one of the concerns is that you have these people who want to buy american products. they seek out american products. suddenly turning in a different direction because the products won't be able to come. ? the very pitch that jack made. he said alibaba can be very good for america. we are not your enemy. we are your friend. we'll see -- by the way, the biggest mass migration on the planet. >> 441 million people. >> thank you for migrating all the way over here. so good to see you. up next we'll speak to the director of the new documentary, becoming buffett.

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a news alert from mark zuckerberg. he said like many of you i'm concerned about the impact of recent executive orders signed by president trump. he said we need to keep this country safe but we should do that by focusing on people who actually pose a threat. and panneding the focus of law

enforcement beyond people who are real threats would make all americans less safe by diverting resources, while millions of undocument folks who don't pose a threat will live in fear of deportation. he goes on to say that america is a country of immigrant, a nation of immigrants, and we should be proud of that pointing out that his wife princescilla her family were immigrants seeking refuge in the united states. >> silicon valley, law enforcement, a separate issue but somewhat related to all of this. thank you. hbo meantime is getting ready for the premier of a new documentary and cnbc was able to catch up with the investing mogul last week. we did ask him about his thoughts on donald trump and the stock market. >> i don't think he is the key to it. i think america in general. certainly he has the most important job in the world but

america works and it will work, and i've said this before. it will work, it would have worked fine under hillary clinton and it will work fine under donald trump. it doesn't work all the time perfectly. never bet against america. >> with us now, the director of becoming warren buffett which airs january 30th at 10:00 p.m. on hbo. thanks for joining us. how and why did you get involved? >> i wrote him a letter out of the blue. i got a letter back and he told me i could have one hour with him i arrived in omaha with my two producers who are my two sons. i think the family dynamic appealed to him. he ended up saying come back. we ended up going back five different times. >> why warren buffett? >> i'm not a finance guy so the money part didn't mean a lot to me.

but i think he is an icon who is unlike few other people in the world. there are few people like warren who we can look up to today. so he was high on my list. >> the thing that's so extraordinary about him is the comment we just heard. a boundless optimism. and it makes for an interesting contrast with the president-elect and that's why the contrast between two men is so interesting. he is really someone who totally believes in the american dream. but as an inclusive thing. >> each time the country is in dire straits, when 9/11 happened, when the stock market collapsed. they bring out warren buffett and he has a soothing, calming effect on the nation. >> his general story of his life, his career, his investing has become very well known. and many books about his process. in the process of you making a film, what emerged that we might not have been aware of? >> we really focused on warren the man. and we focused on the two influences in his life that made

the most impact on him. one was his father and one was his first wife susie. his father taught him principles that you can see 98 warren buffett. the ethics, the spine of the man himself. what his first wife susie taught him was to be a well rounded human being. he was kind of misshapen early on. he had a hard time socializing. she made him into a well rounded, whole person. by the end of the film he says if it wasn't for susie buffett, i would never have formed berkshire hathaway. >> charlie monger, i have a bit of a personal crush. what did you learn? >> i learned that he is so quick and fast, dry witted. and he is the perfect complement with warren. the two of them can't be beat. he is the man who turned warren from short small companies into big long term companies.

i think he changed the game. >> thank you for joining us. we can all -- >> a man crush? you have a crush? >> roger federer and charlie monger. >> thank you for joining us. i'll see you everybody on the monday after next. that does it for "closing bell" and "fast money" starts right now. >> overlooking new york city's times square. tonight on the fast, tesla soaring since the lex but elon musk's friendship with the new president isn't the only reason why. adam will be here to explain what he says is the real reason to guy stock. plus, the retail wreck wages on. all sinking on jitters over possible border attacks but there's one big reason you might want to be buying. and later, big